Approval Sheet

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


www.gillettewy.gov

 
DATE: 8/19/2014 7:00:00 PM
SUBJECT:
Council Consideration of a Supplemental Agreement for Firm Power Interchange Service (the Agreement) with the Municipal Energy Agency of Nebraska and Authorizing the Mayor to Execute the Agreement on Behalf of the City of Gillette.
BACKGROUND:
For many years, MEAN has supplied the supplemental electrical power to the Gillette electrical utility. This power includes the hydro power that is purchased from the Western Area Power Administration (WAPA) and the wind power that the City offers its customers. The largest amount of the power purchased from MEAN was the peaking or supplemental power that is consumed by city customers over and above the power that is supplied by the Wygen III power plant. With the purchase of the CT-II unit and the economy energy agreement with Black Hills Power, Gillette will only rarely need to purchase additional peaking power. MEAN has indicated they may not be interested in supplying the wind power, administering the WAPA, and furnishing the small amount of additional the peaking power needed by Gillette for the 5 year term that was originally discussed, because they feel it is not economically feasible for them to do so. They have agreed to continue to service the WAPA energy, supply wind power and peaking power over and above what is supplied by WYGEN II, CT-II/Economy Energy and the WAPA until March 31, 2015. This contract extension will maintain the status quo and give Gillette a reasonable opportunity to make other arrangements for the services supplied by MEAN when this agreement expires in 2015.
ACTUAL COST VS. BUDGET:
SUGGESTED MOTION:
I move for the Approval of  a Supplemental Agreement for Firm Power Interchange Service (the Agreement) with the Municipal Energy Agency of Nebraska and Authorizing the Mayor to Execute the Agreement on Behalf of the City of Gillette.
STAFF REFERENCE:
Charlie Anderson, City Attorney
ATTACHMENTS:
Click to download
Supplemental Agreement
Wind Energy agreement
Purchasing Agent agreement
Purchasing Agent Addendum