04/13/2004 Resolutions 2004-75
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RES 0 L UTI 0 N 2004-75
WHEREAS, on August 14,2001, by Ordinance No. 8687, the City Council of the
Ci ty of Grand Island, Nebraska, approved increased rates and other provisions concerning natural gas
service at retail in the City by NorthWestern Corporation and its operating utility division
("NorthWestern"), as part ofthe City's acceptance of a rate settlement by and between Northwestern
and the Cities of Grand Island, Kearney and North Platte, and the Village of AIda; and
WHEREAS, such Ordinance provided that NorthWestern would file information with
the City, on or before April 30th of each calendar year, as of the prior year, consistent with certain
terms and conditions of the Ordinance, pursuant to the rate ofreturn realignment mechanism ofthe
Ordinance; and
WHEREAS, on September 14, 2003, NorthWestern filed a voluntary petition under
Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the
District of Delaware, seeking a reorganization for NorthWestern, and on March 12, 2004,
NorthWestern filed a Plan of Reorganization and Disclosure Statement with the Bankruptcy Court;
and
WHEREAS, such Plan of Reorganization will not be confirmed nor consummated by
the Bankruptcy Court for several months, and the City and NorthWestern believe that it would be
extremely difficult to prepare and to review the information that NorthWestern would be required to
prepare and submit pursuant to the rate of return realignment mechanism provisions of Ordinance
No. 8687 while the bankruptcy matter is pending and until the Plan of Reorganization is
implemented and NorthWestern emerges from bankruptcy; and
WHEREAS, NorthWestern has represented to the City that it does not plan to seek to
increase rates for natural gas in the City prior to April 2005.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that:
1. The April 30, 2004 rate of return realignment mechanism information filing
requirement for NorthWestern under Section 3 of Ordinance No. 8687 is hereby
waived.
2. All other provisions of Ordinance No 8687, including rate of return realignment
mechanism information filing requirements for years subsequent to 2004, are hereby
reaffirmed.
Adopted by the City Council of the City of Grand Island, Nebraska, April 13, 2004.
Qof\tl.L <2Q~
RaNae Edwards .
Approved as to Form tl .fJOrf/CJ
April 8. 2004 tl City Attorney