Approval Sheet

CITY OF GILLETTE
201 E. 5th Street
Phone (307)686-5200
CITY OF GILLETTE


www.gillettewy.gov

 
DATE: 6/2/2020 7:00:00 PM
SUBJECT:
Council Consideration of a Resolution Authorizing the Mayor to Execute the Second Amended and Restated Generation Dispatch and Energy Management Agreement with Black Hills Power, Inc.
BACKGROUND:

The City of Gillette entered into an Amended and Restated Generation Dispatch and Energy Management Agreement with Black Hills Power, Inc. on September 3, 2014.  This agreement largely defers the City's day-to-day power generation dispatch obligations and wholesale power purchase services to Black Hills Power, Inc. to best manage and balance the City's energy portfolio for our electric utility.  This deferment is based largely on specific operating criteria and purchase limits that are seasonally and annually adjusted by the City and Black Hills Power.

Representatives from Black Hills Power, Inc. requested an amendment to the 2014 Agreement to address various internal reporting changes and clean-up some departmental/stylistic references based largely on consolidation and reorganization of various departments and subsidiary companies of Black Hills Corporation.

Attached is a draft version of the amended agreement.  Also attached are proposed changes recommended by City Attorney Reyes.

Black Hills Power, Inc. is anxious to execute the amended agreement in order to obtain the necessary regulatory approval from the Federal Energy Regulatory Commission.

Staff recommends approval of the Resolution.

ACTUAL COST VS. BUDGET:
-NA-
SUGGESTED MOTION:
I Move to Approve a Resolution Authorizing the Mayor to Execute the Second Amended and Restated Generation Dispatch and Energy Management Agreement with Black Hills Power, Inc.
STAFF REFERENCE:
Michael H. Cole, P.E., Utilities Director; Anthony Reyes, City Attorney
ATTACHMENTS:
Click to download
RESOLUTION
DRAFT Agreement (Second Amendment)
Proposed City Revisions
September 3, 2014 Executed Agreement w Redlines