CSHCR 16(FIN): Proposing recommendations concerning the sale of the Four Dam Pool hydroelectric facilities.
00CS FOR HOUSE CONCURRENT RESOLUTION NO. 16(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, 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 a 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 State Legislature feels compelled to allow the current 05 negotiations with local utilities in the communities served by the Four Dam Pool regarding 06 the transfer of ownership of the power projects to conclude; and 07 WHEREAS the Alaska State Legislature believes that the divestiture of the Four Dam 08 Pool power projects should be conducted under an open competitive bid process that assures 09 that the citizens of the state receive the best price possible for the projects while guaranteeing 10 stable rates to the consumers served by the utilities that sell power generated by those power 11 projects; 12 BE IT RESOLVED that the Alaska State Legislature respectfully requests the Alaska 13 Energy Authority to conclude its exclusive discussions with the local utilities served by the 14 Four Dam Pool power projects by July 31, 1997; and be it 15 FURTHER RESOLVED that if the Alaska Energy Authority does not receive an 16 acceptable proposal from the local utilities by July 31, 1997, that can be brought to the Alaska 17 State Legislature for ratification, then the authority shall promptly prepare a request for 18 proposals for the sale of the Four Dam Pool power projects; and be it 19 FURTHER RESOLVED that the request for proposals for the sale of the power 20 projects that make up the Four Dam Pool shall be open to any qualified bidder and shall 21 contain terms that will 22 (1) assure that the state receives a fair value for the power projects; 23 (2) protect the electric power rates of the local consumers from unwarranted 24 increase; 25 (3) provide adequate power to the communities to allow for community 26 growth; and 27 (4) allow adequate reserves to the purchasers to ensure that the power projects 28 are adequately maintained and repaired; and be it 29 FURTHER RESOLVED that the Alaska State Legislature respectfully requests that 30 the Alaska Energy Authority issue the request for proposals as soon as practicable and under 31 the terms and conditions that will promote a successful competitive bid process resulting in
01 the completed sale of the power projects for fair value pending the sale's presentation to the 02 Second Session of the Twentieth Alaska State Legislature for approval. 03 COPIES of this resolution shall be sent to Wilson Hughes, Chair of the Alaska 04 Industrial Development and Export Authority and the Alaska Energy Authority; and to 05 Ketchikan Public Utilities; Wrangell Municipal Light and Power; Petersburg Municipal Power 06 and Light; Copper Valley Electric Association, Inc.; and Kodiak Electric Association, Inc.