AMENDMENT NO. 1 TO
AGREEMENT FOR THE SALE AND PURCHASE
OF ELECTRIC POWER AND ENERGY
between
CHUGACH ELECTRIC ASSOCIATION, INC.
and the
CITY OF SEWARD
The parties hereby agree to amend the contract as follows:
1. The term of this agreement shall be extended to January 31,
2006.
2. This amendment is contingent on approval by the Seward City
Council and approval by the Chugach Board of Directors.
3. This amendment shall be effective on the date approved by the
Regulatory Commission of Alaska (RCA).
4. Within two weeks after the latter of the two approvals set out in
paragraph 2, above, the parties shall jointly submit an appropriate filing
requesting interim and permanent approval of this Amendment by the RCA.
5. If the RCA issues a final decision denying permanent approval of
this Amendment or approving the Amendment subject to exceptions or
modifications, the parties shall, within 60 days of such order, attempt in good
faith to renegotiate this Amendment so as to accomplish as nearly as possible
the original intent of this Amendment and return the Parties as nearly as
possible to the position they would have enjoyed had approval been granted
without modification. If the parties are unable to agree to a renegotiated
Amendment, either Party may terminate performance under this Amendment upon 30
days prior notice. While this Amendment is pending RCA approval and during the
aforementioned 60 day renegotiation period, the Parties shall not incur any new
power supply or power purchase obligations which materially diminish that
party's future ability to perform its power supply or power purchase obligations
as set forth in this Amendment and the wholesale power agreement which it
amends.
6. In accordance with the Parties current practice under the Agreement,
the monthly fuel and purchased power costs described in Attachment C to the
Agreement are subject to adjustment as needed to fairly allocate fuel and
purchased power costs to Seward. This adjustment shall be consistent with
charges approved by the RCA for inclusion in rates of Chugach's other customers
which are charged under Chugach's fuel surcharge adjustment process. These
adjustments allowed by the RCA in the fuel surcharge adjustment process may
result from but are not limited to such things as natural gas tax or royalty
pass-through adjustments, revisions to operating results, revised fuel and other
invoices, economy billings, adjustments resulting from the difference between
interim and final rates and calculation errors.
7. Seward agrees that during the term of this Agreement, any agreement
by Seward for the sale of its electric utility or any portion of it or any
rights to serve customers on the Seward side of the Delivery Points to another
public utility (or any other entity) will not interfere with this contract or
materially impair Chugach's rights under this Agreement (including the pricing
terms) relating to electric power sold by Chugach for use by customers on the
Seward side of the Delivery Points.
THE CITY OF SEWARD CHUGACH ELECTRIC
ASSOCIATION, INC.
By /s/ By /s/ Eugene N. Bjornstad
----------------------------- -----------------------------------
Eugene N. Bjornstad
City Manager General Manager
Date 12/12/00 Date Nov. 27, 2000
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ATTEST
/s/ Patrick Reilly
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Patrick Reilly, City Clerk