SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT ("Agreement") is entered into by and among
GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. ("GVEA"), CHUGACH ELECTRIC ASSOCIATION,
INC. ("Chugach") and the MUNICIPALITY OF ANCHORAGE, d/b/a ANCHORAGE MUNICIPAL
LIGHT & POWER ("ML&P").
R E C I T A L S:
WHEREAS, GVEA and Chugach are parties to the Chugach-GVEA Nonfirm
Energy Agreement ("Nonfirm Energy Agreement") dated May 18, 1989; and
WHEREAS, on September 24, 1 997, the APUC issued an Order authorizing
GVEA to acquire the electric utility loads formerly served by Fairbanks
Municipal Utilities System; and
WHEREAS, GVEA, Chugach and ML&P desire to create an open market for
certain nonfirm energy transactions;
NOW, THEREFORE, in consideration of mutual covenants contained herein,
the parties agrees as follows:
1. This Agreement shall become effective on the date when Amendatory
Agreement No. 2 to Agreement for the Sale and Purchase of Nonfirm Energy between
Chugach Electric Association, Inc. and Golden Valley Electric Association, Inc.
("Amended Chugach-Golden Valley Nonfirm Agreement") and this Agreement are
approved by an Order of the Alaska Public Utilities Commission ("Commission")
and upon approval by the Commission of payment by GVEA to ML&P for power
previously delivered pursuant to the contract at issue in Docket No. U-97-200.
2. Golden Valley and Chugach have agreed to amend the ChugachGolden
Valley Nonfirm Agreement to permit GVEA to purchase a portion of its nonfirm
energy requirements on the Economy Energy Spot Market in amounts representing
nonfirm energy associated with GVEA's FMUS system acquisition.
3. Participation in the competitive market created by the Amended
Chugach-Golden Valley Nonfirm Agreement will be open to, but not limited to,
ML&P, Chugach, and such other electric utilities, independent power producers,
power marketers, and other entities as may be willing and able to sell electric
energy to GVEA in accordance with applicable law and Commission regulations. A
copy of the Amendatory Agreement No. 2 to Agreement for the Sale and Purchase of
Nonfirm Energy between Chugach Electric Association, Inc. and Golden Valley
Electric Association, Inc. is attached hereto.
4. Upon this Settlement Agreement becoming effective, the following
proceedings and disputes shall be deemed to be settled by and among the parties,
who will take appropriate steps to terminate such proceedings without request
for any other action or relief from the court or the Commission, as the case may
be:
A. Chugach Electric Association, Inc. v. Golden Valley
Electric Association, Inc., Case No. 3AN-97-8552CI;
B. ML&P-GVEA Contract Docket U-97-200 before APUC; and
C. A "FMUS Market - Nonfirm Energy Agreement" Docket
U-97-188].
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized officers or representatives.
GOLDEN VALLEY ELECTRIC ASSOCIATION,
INC.
By: /s/ Mile ▇▇▇▇▇
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Title: President & CEO
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CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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Title: General Manager
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ANCHORAGE MUNICIPAL LIGHT & POWER
By: /s/
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Title: Municipal Manager
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