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Home My WebLink About1989 Resolution No. 014RESCU1l'IC!I 00. d smms C:£ 1989 A RESCU11'IC!I STATm;; 'I1IE INI'Dfl' llliD tmDISTl\ll)m;; C:£ 'I1IE cm C:£ DGJHXD WITH REfil>a:T 'l'O 'I1IE PURCHASE C:£ CI'lY~ PCH:R BY PUBLIC SFJ!VICE COIPANY OF COLCIWXl PURSUl\NI' 'l'O ARTICLE 13 OF 'I1IE FIWDIISE c:.wrml 'l'O SAID a:M'ANY. WHEREAS , pursuant to Ordinance 14, Series of 1988, the question of the City of Englewood granting Public Service Carpany of Coloraa, a franchise was to be placed on the ballot and voted on by the qualified electors at the special municial election held Jwie 21, 1988; and WHEREAS, the vote ,,f the qualifiet: electors was to grant Public Service Carpany said franchise; and W!iERF.AS, Article 13.2 of the franchise provides that the City reserw,s the right to engage in the production of electricity, and Public Service Carpany agrees to purchase City-<jl!nerated power pursuant to separate contracts negotiated with the City; and WIIERFJ\S, pursuant to said Article 15. 4 of said franchise, the gas and electrical energy which Public Service Carpany distributes nust confonn with the standards prarulgated by the Coloraoo Public utilities camll.ssion (POC); and t111ERFA5, POC desires that there be an acknowle<lglrent by Public Service Carpany and the City that any p.,rchase by Public Service Carpany of City- generated power will be made in accordance with a,:plicable POC rules and regulations and in accordance with Public Service Carpany's tari f fs; and WHEREAS, City desires to express its intent and understanding that any purchase by Public Service Carpany of Ci ty-generated power will be made in accordance with applicable PUC rules and regulations and in accordance with Public service ea,pany' s tariffs; Nm, THEREFOOE, BE IT RESOLVED BY 'IlIE CITY CXXJOCIL OF 'l'IIE CITY OF =.1,.,UJO, COLORADO, that : It is the intent and understanding of the City of Englewood that any purchase of City-generated power pursuant to Article 13.2 of the franchise granted by the City of Englewood to Public Service catpany of Coloraoo will be made in accordance with a,:plicable rules and regulations of the Public Utilities carrnission and in accordance with Public Service catpany' s tariffs. ~ -.._"" •~ 7 ~:~"jc;L .--~an Oyke, Mayo~ Att.i,:st: , ) , . ;d,f,I(;(~ Patricia H. Crow, City Clerk -1 - I, Patricia H. Crolol, City Clerk for the City of &.3lewoo, Colorado, / hereby certify the above and foregoing 1a a true oopy of Resolution No. !.:j.., ~ries of 1989. ") . ff(/ r I ~<«£1 . L f c,r, --'"Patr C a H. Crolo, -2 - COUICIL COKKUIICATIOI DAT! March 6, 1989 INITIATED BY STAFF SOU&C! PREVIOUS COUNCIL ACTION AG!IDA ITIII 11 (h) City Attorney SUIJl!CT The purchuo of City- generated power by Public Servic• Company. Rick Dellitt, City Attorney Thia item waa pre ■ented to City Council by Rick Dellitt and dhcuased briefly at Study Session on Tuesday, February 21 , 1989 . -~Of'lS!D City Council approval of a resolution stating the intent and understanding of the City with respect to the purchase of city-generated power by Public Service Company of Colorado pursuant to Article l3 of the fr,.nchise . The franchise agreement that the City of Englewood has with Public Service Company contains wording that the Public Utilitlea Commiasion feela may be construed as Public Service' a attempt to contract away fro11 jurisdiction by the Commission over the subject matter of co•generation purchases . Th e attached letter from the law flrm of Kelly , Stansfield 6o O'Donnell provides fur- t her background infomation on the Public Utilities Commission's concerns . Rl!COllll!NDATION It is the recommendation of the City Attorney that Council approve the resolution indicating that it le the City of Englewood's intent and underatanding that any pur - chase of City -generated power purauant to Article 13 . 2 of the franchise granted by the City of Englewood to Public Service Co111pany of Colorado will be made in accor-A dance with applicabl~ rule ■ and regulation■ of the Public Utilities Commission and W' in accordance with Public Service Company'• tariffl . cio,■LII J . l'llll' .......... ! l:00A ■ A ., ...... 1,1CL0 ,,.oa•1•nl ,■co 1.. w,,11u -I CMA ■O W IIIIYAHI 1MOTMl' J rLAl,j#IQAl,j .... , •• ,. .• ~t'f •UO•I'" V IIIC 1r QAV IO 1/11. •t••UI OAV•O \.. Ul1Cl'IO"" JO1otH I . LUtl MAIILA I . ~tHlll,jl C1otAIIILtl CAfll~(Jo,iT(llfl lo\AIIIC A. Q,t,Vll)IOM KELLY, STANS,iELo & O 'DONNELL AlTOlltNE.YS AT U.W 11.1111 100. ••o 11 1• 11111111 OC:M v UI , COLOIIIAOO 80101 l)OJI 811•JIJ4 February 17, 1989 HAND DELIVER Rick Dewitt, Esq. Englewood City Attorney 3400 South Elati Street Englewood, Colorado 80110 Dear Rick: f1otOMAI Ill , 0 DOllrolMlhL •flUIAM L IAII '#11,.1,.IAM .I ou,ry •tVIN W MlCMT llltNT 1.. IACl'tl IAL•I I . O'MAU.U •tVlfol A CAIUl(NO CMAll~tl I. Wtlf, JIiii . ANNl T lUlllltlollC 'flV[D \~· :~~89 !> gi: ·-"Gd/'' . < .. • \ . ·-·· As we discussed during our telephone conversation of Febru- ary 13, 1989, C.R.S. S40-5-102 and S40-5-100 require Public Service Company of Colorado to obta in a Certificate of Public Convenience and Necessity to exercise the franchise rights recently granted to it by the City of Englewood. As part of that process, the Public Utilities Commission has expressed some concern regarding the language found in Article 13, Section 13.2 of the Englewood Franchise as same pertains to the future pur- chase by Public Service of City-generated electricity. Specifically, -the Commi ss ion is concerned that the language set forth in the Franchise may be construed as Public Service's attempt to contract away from jurisdiction by the Commission over the subject matter of co-generation purchases . By way of background, during franchise negotiations the City did propose very specific language as to the terms and conditions under which such purchases would be made by the Company in the future. However, at that time Public Service indicated its inability to contract on those terms inasmuch as the proposed language wa s ~ontrary to Cor:unission regulation and Company Tariffs filed therewith. With th i s background in mind and given the Commission's concern about the franchise language, Public Service must now address this matter before the Commission at hearings set on Public Service's application to exercise the Englewood franchise r i ghts scheduled for March 21, 1989, commencing at 9:00 a .m. It is my hope that Public Ser"ice .. nd the City of Englewood can work togeth e r in pre s enting to ehe Commission documentation establish- ing that neither party to the franchise intended to enlarge or restrict the Commission's jurisdiction over the sale of City-generated power and that the franchise language was intended by the parties to represent the willingness of each to negotiate in the future the terms and conditions upon which such purchases would be made . These negotiations would most certainly carry with them whatever restrictions were imposed by operation of law Rick Dewitt, Esq. February 17, 1989 Page 2 on their ability to contract as exists at the time that such a sale is contemplated. As you may know, several of Public Service 's franchises negotiated in the recent past have been the subject of similar ~oncerns by the Commission. In each of these cases, the concerns have been placated to the satisfaction of all involved without resort to hearing. I hope such can happen in this cas e as well. In an attempt to reach such a simila r result, I have en- closed a copy of the Resolution passed by the City Council of Greenwood Village regarding this same subject matter. I hope that the language contained in the attached Resolution is acceptable, however, if you would like to suggest cert ain modifications , I am certainly open to discussing them with you a s soon as possible. Please note that I have also enclosed the i nitial Notice of Application issued by the Commission, along with the Order setti11g the hearing date for your file. Inasmuch as the hearing is rapidly approach i ng, I would appreciate your prompt consideration o f the enc l osed. I look forward to hearing from you at your earliest convenie nce. Sincerely, rlb~t o½-twefJ Thomas R. O'Donnell TRO :mm l85 Enclos ur e s