HomeMy WebLinkAboutResolution No. 651-04 -
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• JOINT RESOLUTION
WHEREAS, the City of Rochester is a member of the Southern Minnesota Municipal
Power Agency (SMMPA) and has signed a Power Sales Contract with SMMPA by which the City
receives power from SMMPA for its electrical requirements; and,
WHEREAS, in 1999, as permitted by the Power Sales Contract, the City of Rochester
elected to freeze the amount of power it receives from SMMPA (commonly referred to as the
Contract Rate of Delivery or "CROD") and thus to become a partial requirements member of
SMMPA; and,
WHEREAS, other city members of SMMPA elected to continue to take their total power
requirements from SMMPA; and,
WHEREAS, in the early 1990's, the City of Rochester Public Utility Board and Common
Council became concerned that SMMPA might require the City'of Rochester to pay the cost of
capital expansion projects required to meet the total requirements of those SMMPA members who
have elected to extend the total requirements provision of their SMMPA power sales contracts
beyond 1999; and,
WHEREAS, on February 8, 1994, and February 24, 1994, the City of Rochester Public
• Utility Board and Common Council adopted a resolution setting forth its concern and publicly
announcing its intent to contest in a court of law any attempt by SMMPA-to cause the City of
Rochester to pay for any generation or transmission capacity required to satisfy the generation or
transmission requirements of those SMMPA members who have elected to extend their SMMPA
power sales contracts beyond 1999. A copy of that resolution is attached and incorporated by
reference; and,
WHEREAS, on December 9, 2004, the SMMPA Executive Director wrote a letter to the
Rochester Public Utility General Manager and stated that SMMPA had rejected the City's
proposed dual rate model (that took into consideration the fact that.some SMMPA members
remained total requirements members while RPU elected to become a partial requirements
member) and instead reaffirmed "a single rate model for all Members;" and
WHEREAS, in light of SMMPA's December 9, 2004, letter, the Rochester Public Utility
Board and City of Rochester Common Council believe it important to reaffirm in its entirety the
February, 1994, resolutions adopted by the Board and Council; and,
NOW, THEREFORE, BE IT RESOLVED by the Rochester Public Utility Board and the City
of Rochester Common Council that it reaffirm in its entirety the resolution dated February 8, and
February 24, 1994, that is attached hereto.
BE IT FURTHER RESOLVED that the City Clerk shall send a copy of this Joint Resolution
• to the President of the SMMPA Board of Directors.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS ZOT�c DAY OF { - , 2004.
RF3�S1 ENT OF SAIIJ COMMON COUNCIL
ATTEST:
,C TY CLERK
APPROVED "THIS 2/5T DAY OF P&Y�L- , 2004.
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MAYOR OF SAID CITY ,
(Seal of the City of
Rochester, Minnesota)
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PASSED BY THE PUBLIC UTILITY BOARD OF THE CITY .OF. ROCHESTER,
MINNESOTA, THIS I (fl DAY OF DECEMBER, 2004.
President
Secretary
Res2000\Resolu.SMMPA.SingleRate
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