CSHCR 10(FIN): Proposing recommendations concerning the sale of the Four Dam Pool hydroelectric facilities.
00CS FOR HOUSE CONCURRENT RESOLUTION NO. 10(FIN) 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, Port Lions, Valdez, and Wrangell; and 07 WHEREAS the Four Dam Pool is owned by the Alaska Energy Authority, which is 08 a party to a 45-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 several years, the Alaska Energy Authority has entered
01 into discussions with local utilities in the communities served by the Four Dam Pool power 02 projects regarding the sale of the power projects to the local utilities; and 03 BE IT RESOLVED that the Alaska State Legislature respectfully requests the Alaska 04 Energy Authority to divest itself of its interest in the Four Dam Pool power projects by 05 entering into negotiations for the sale of the power projects, open only to the electric utilities 06 in the communities served by the Four Dam Pool power projects or to a consortium of electric 07 utilities in those communities, with terms that will assure that 08 (1) the state receives a fair market value for the power projects; 09 (2) the authority gives due consideration to the prospective purchaser's 10 commitment to Alaska hire, contracting, and Alaskan participation in the purchasing entity; 11 and be it 12 FURTHER RESOLVED that the Alaska State Legislature respectfully requests that 13 the Alaska Energy Authority enter into the negotiations for the sale of the power projects as 14 soon as practicable; and be it 15 FURTHER RESOLVED that the Alaska State Legislature respectfully requests that 16 the Alaska Energy Authority evaluate methods by which private sector interests with 17 experience in acquisition, ownership, operation, and maintenance of hydroelectric facilities 18 may propose to purchase the Four Dam Pool power projects in a manner that honors the 19 existing power sales agreement and indemnifies the State of Alaska for its current ownership 20 liabilities. 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.