00HOUSE CONCURRENT RESOLUTION NO. 16                                                                                      
01 Proposing recommendations concerning the sale of the Four Dam Pool                                                      
02 hydroelectric facilities.                                                                                               
03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04  WHEREAS the state acquired land and constructed four hydroelectric facilities,                                         
05 referred to as the Four Dam Pool, to provide electricity to the communities of Copper Center,                           
06 Glennallen, Ketchikan, Kodiak, Petersburg, Valdez, and Wrangell; and                                                    
07  WHEREAS the Four Dam Pool is owned by the Alaska Energy Authority, which is                                            
08 a party to a 40-year power sales agreement with local utilities to sell the power generated by                          
09 the facilities; and                                                                                                     
10  WHEREAS the Alaska Energy Authority retains, under the power sales agreement,                                          
11 significant liabilities relating to the power projects, including responsibility for uninsured                          
12 facility failure, substandard performance, deficiencies in the reserve and replacement fund, and                        
13 loss of power sales; and                                                                                                
14  WHEREAS, during the last two years, the Alaska Energy Authority has entered into                                       

01 exclusive discussions with local utilities in the communities served by the Four Dam Pool                               
02 power projects regarding the transfer of ownership of the power projects to the local utilities;                        
03 and                                                                                                                     
04  WHEREAS the Alaska Energy Authority determined that the power projects are worth                                       
05 $84,000,000; and                                                                                                        
06  WHEREAS the Legislature believes that divestiture of the Four Dam Pool should be                                       
07 conducted under an open competitive bid process that assures that the citizens of the state                             
08 receive the best price possible for the power projects that make up the Four Dam Pool while                             
09 guaranteeing stable rates to the consumers served by the utilities that sell power generated by                         
10 those power projects;                                                                                                   
11  BE IT RESOLVED that the Alaska State Legislature respectfully requests the Alaska                                      
12 Energy Authority to prepare a request for proposals for the sale of the power projects that                             
13 make up the Four Dam Pool, open to any qualified bidder, with terms that will assure that the                           
14 state receives a fair value for the power projects; that protect the electric power rates of the                        
15 local consumers from unwarranted increase; that provide adequate power to the communities                               
16 to allow for community growth; and that allow adequate reserves to the purchasers to ensure                             
17 that the power projects are adequately maintained and repaired; and be it                                               
18  FURTHER RESOLVED that the Alaska State Legislature respectfully requests that                                          
19 the Alaska Energy Authority issue the request for proposals as soon as practicable and under                            
20 the terms and conditions that will promote a successful competitive bid process.                                        
21  COPIES of this resolution shall be sent to Wilson Hughes, Chair of the Alaska                                          
22 Industrial Development and Export Authority and the Alaska Energy Authority; and to                                     
23 Ketchikan Public Utilities; Wrangell Municipal Light and Power; Petersburg Municipal Power                              
24 and Light; Copper Valley Electric Association, Inc.; and Kodiak Electric Association, Inc.