11/13/2007 Resolutions 2007-293RESOLUTION 2007-293
A RESOLUTION TO ENTER A SETTLEMENT AGREEMENT WITH
NORTHWESTERN CORPORATION PURSUANT TO NEBRASKA REVISED STATUTE
SECTION 66-1838 WITH RESPECT TO NORTHWESTERN' S APPLICATION FOR NATURAL
GAS RATE ADJUSTMENT.
WHEREAS, on June 1, 2007, Northwestern Corporation, doing business as Northwestern
Energy ("Northwestern"), filed an Application for a Natural Gas Rate Adjustment ("Application")
with the Nebraska Public Service Commission ("PSC") seeking an additional $2,813,794 in rate
recovery;
WHEREAS, Section 66-1838 of the Nebraska Revised Statutes authorizes jurisdictional
utilities such as Northwestern to negotiate directly with affected municipalities such as the City with
respect to a proposed general rate change provided, among other things, municipalities representing
more than fifty percent (50%) of the ratepayers within the affected municipalities adopt resolutions
evidencing their intent to negotiate with the jurisdictional utility;
WHEREAS, on July 17, 2007, the City adopted a resolution to negotiate directly with
Northwestern as permitted by NEB.REV.STaT. §66-1838;
WHEREAS, affected municipalities representing more than fifty (50%) of NorthWestern's
ratepayers in Nebraska entered resolutions evidencing their intent to negotiate with Northwestern;
WHEREAS, pursuant to NEB.REV.STAT. §66-1838, Northwestern and affected
municipalities entered into good faith negotiations regarding NorthWestern's Application;
WHEREAS, pursuant to NEB.REV.STaT. §66-1838(13), if the affected municipalities and
Northwestern reach agreement upon new natural gas rates, such agreement must be reduced to
writing and filed with the PSC;
WHEREAS, Northwestern and the affected municipalities have reached agreement upon
new natural gas rates for Northwestern in Nebraska that provides Northwestern with an additional
$1,700,000 in rate recovery, subject to the resolution of three minor outstanding issues including, but
not limited to, determination of the appropriate depreciation schedules; and
WHEREAS, the settlement between Northwestern and the affected municipalities is in the
public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GRAND ISLAND, NEBRASKA, that:
1. The Mayor is hereby authorized to, on behalf of the City, execute the required
settlement agreement for new natural gas rates for Northwestern in accordance with
the terms and conditions generally described above and as agreed upon by
Northwestern and the affected municipalities; and
Approved as to Form
November 13, 2007 a City Attorney
2. The City Attorney is hereby authorized and directed to take such appropriate action
as necessary to effectuate the settlement with Northwestern and work cooperatively
with Northwestern and the affected municipalities to obtain the necessary approvals
from the PSC.
Adopted by the City Council of the City of Grand Island, Nebraska, November 13, 2007.
Margare ornady, Mayor
Attest:
RaNae Edwards, City Clerk
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