03/26/2013 Resolutions 2013-77 RESOLUTION 2013-77
WHEREAS, with the upcoming Integrated Market, daily generation and load
transactions will be considered separately by the Southwest Power Pool (SPP),which will result in
significant financial obligations on a transaction basis; and
WHEREAS,Utilities Depai tment Staff developed recommendations for authorized
positions term of transaction and financial limits based on cases that City load requirements must be
met upon the purchase of power from outside sources either because the loss of generating sources or
because of possible transaction billing methods by SPP; and
WHEREAS, in order to conduct normal operational requirements of the City of
Grand Island electric system, power supply transactions and associated financial commitments
must be performed by the Utilities Department staff with the Regional Transmission Operator and
associated electric utilities; and
WHEREAS,in order to conduct these transactions, SPP requires the executed Credit
and Security Agreement, in which the City agrees to put into place an approved financial assurance
mechanism to cover the costs of the power transactions conducted by SPP and billed to the City;and
WHEREAS, based on capital projects, the Utilities Department recommends
obtaining a letter of credit, which will provide the financial assurance but allow for current
unrestricted cash reserve levels.
NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the Southwest Power Pool Appendix `B"
Credit and Security Agreement is hereby approved.
BE IT FURTHER RESOLVED,that the Mayor is hereby authorized and directed to
execute such agreement on behalf of the City of Grand Island
Adopted by the City Council of the City of Grand Island,Nebraska, March 26, 2013.
y Va rice , Mayor
Attest:
Qon ._
RaNae Edwards, City Clerk
Approved as to Form 0
March 25,2013 II City ttorney