Resolution No. 6104
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RESOLUTION NO. 6104
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING A SETTLEMENT AGREEMENT IN
PROCEEDING NO. EF91-5091-000 BEFORE THE FEDERAL
ENERGY REGULATORY COMMISSION ESTABLISHING A NEW
METHODOLOGY OF RATES FOR THE BOULDER CANYON
PROJECT
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WHEREAS, the City of Vernon as a contract investor in the
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Boulder Canyon Project holds certain rights in the uprated power
production from Hoover Dam; and
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WHEREAS, the investment by the City of Vernon in said
proj ect is to be repaid by Western' Area Power Administration
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(Western) in the form of credits against the payments made by the
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City of Vernon for power received from Hoover Dam; and
WHEREAS, the methodology used by Western for determining
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the rates for Hoover Dam power generation has resulted in
insufficient revenues to allow such credits to be given during each
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month of operation, resulting in the accumulation of credits for
future reimbursement; and
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WHEREAS, in the 1991 rate adjustment hearings for the
Boulder Canyon Project before the Federal Energy Regulatory
Commission (FERC) in proceeding number EF91-5091-000, several
contracting agencies filed objections to the rate methodology being
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used by Western; and
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WHEREAS, a revised methodology, recommended by the
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contractors and approved by Western, has been included in a legal
stipulation entitled "Settlement Agreement" which will be submitted
to FERC for its approval; and
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WHEREAS, said revised methodology may result in sufficient
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revenues for Western to grant reimbursement for credits on a more
timely basis.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
2 CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon hereby
4 finds and determines that the recitals contained hereinabove are
5 true and correct.
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SECTION 2: The City Council of the City of Vernon hereby
7 approves the Settlement Agreement, a copy of which has been
8 presented to the City Council concurrently with this resolution, and
9 the City Council hereby orders said Agreement to be received and
10 filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon hereby
12 authorizes the City Attorney to execute said Agreement for, and on
13 behalf of, the City of Vernon,
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SECTION 4:
The City Clerk of the City of Vernon shall
15 certify to the passage of this resolution and thereupon and
16 thereafter the same shal1 be in full force and effect.
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APPROVED AND ADOPTED this 16th day of June, 1992.
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LEONIS C. HALBUR, Mayor .
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1 STATE OF CALIFORNIA )
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2 COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon,
4 do hereby certify that the foregoing Resolution, being Resolution
5 No. 6104, was duly adopted by the City Council of the City of Vernon
6 at a regular meeting of the City Council duly held on Tuesday, June
7 16, 1992 and thereafter was duly signed by the Mayor of the City of
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BRUCE V. MALKENHORST, City Clerk
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