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1997-45 Requesting Assistance of Governor Knowles and the State Legislature on the Sale of the Four-Dam Pool Hydroelectric Projects to the Cities of Ketchikan, Wrangell, and Petersburg, The Kodiak Electric Association, and the Copper Valley Electric AssocKODIAK ISLAND BOROUGH RESOLUTION NO. 97 -45 Introduced by: Mayor Selby Requested by: Mayor Selby Drafted by: Mayor Selby Kodiak Electric Association Introduced: 11/25/97 Adopted: 11/25/97 A RESOLUTION URGING GOVERNOR KNOWLES AND THE ALASKA STATE LEGISLATURE TO ASSIST ON THE SALE OF THE FOUR -DAM POOL HYDROELECTRIC PROJECTS TO THE CITIES OF KETCHIKAN, WRANGELL AND PETERSBURG, THE KODIAK ELECTRIC ASSOCIATION, AND THE COPPER VALLEY ELECTRIC ASSOCIATION WHEREAS, the Four -Dam Pool projects at Terror Lake, Swan Lake, Lake Tyee, and Solomon Gulch provide power to the residents of Kodiak, Port Lions, Ketchikan, Wrangell, Petersburg, Glennallen, and Valdez, and the respective utilities of these communities have operated the facilities since 1985; and WHEREAS, the Alaska Energy Authority and these utilities have been negotiating the transfer of ownership of the projects from the State of Alaska to the utilities for two years under principles defined by the State, including a requirement that the existing Power Sales Agreements between the State and the utilities remain in effect after the transfer of ownership; and WHEREAS, the Four -Dam Pool utilities submitted a proposal to the Alaska Energy Authority on July 30, 1997, to purchase the projects, which proposal was subsequently presented to the Alaska Industrial Development and Export Authority Board and no action was taken; and WHEREAS, the State constructed or acquired the projects for the benefit of the residents of the communities served by the projects; and WHEREAS, the State has an interest in divesting itself of the Four -Dam Pool projects to the utilities and communities served by the projects, as local utility ownership will provide significantly greater opportunities for rate reductions, cost control, and protection of quality of service; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that Governor Tony Knowles is urged to assist in dealing with the appropriate State agencies and the 1998 Alaska State Legislature to pursue divestiture of these projects to the cities of Ketchikan, Wrangell and Petersburg, the Kodiak Electric Association, and the Copper Valley Electric Association. Kodiak Island Borough, Alaska Resolution No. 97 -45 Page 1 of 2 NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the State Legislature allow these utilities to secure ownership of the projects as soon as possible. ATTEST: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTY -FIFTH DAY OF NOVEMBER, 1997 C I-1 pyLnQ / 121.64 Donna F. Smith, CMC /AAE, Borough Clerk KODIAK ISLAND BOROUGH Boroug �L— Jer a M. Selb Ga y L. Ste ens, residing Officer Kodiak Island Borough, Alaska Resolution No. 97 -45 Page 2 of 2