title
The Energy Authority - Restated and Amended Electric Advance Agreement (MISO Addendum to Trade Guaranty) (NB)
explanation
The City is a party to that certain Restated and Amended Electric Advance Agreement dated as of April 1, 2001 among The Energy Authority, Inc. ("TEA") and its members in order to provide credit support for TEA's electric trading business. TEA is preparing to operate as a market participant in the Midwest Independent Transmission System Operator, Inc.'s ("MISO") energy market pursuant to MISO's Open Access Transmission and Energy Markets Tariff on file with the Federal Energy Regulatory Commission. In order to participate in MISO's energy market, TEA has determined that it is necessary to supplement and amend the terms of the credit support provided by its members by modifying the form of the Trade Guaranty (as defined in such Advance Agreement)by the "MISO Addendum to Trade Guaranty Agreement." Such MISO Addendum is attached as Annex 4 to the form of Restated and Amended Electric Advance Agreement dated as of January 1, 2005 (the "2005 Advance Agreement") approved by TEA's board by action taken on February 2, 2005, a copy of which is attached hereto as Attachment 1. TEA has requested that its members execute and deliver the 2005 Advance Agreement and the related MISO Addendum. It is probable that TEA may determine that participation in additional regional transmission organizations (RTO's) to be in the best interest of its members as such RTO's begin trading in the future.
recommendation
1). Authorize the General Manager for Utilities or his designee to execute the Restated and Amended Electric Advance Agreement dated January 1, 2005, by and among JEA, Municipal Electric Authority of Georgia (MEAG), South Carolina Public Service Authority (Santee Cooper), Nebraska Public Power District (NPPD) and City Utilities of Springfield, Missouri (City Utilities) (the "2005 Advance Agreement"), substantially in the form of that agreement which is on file in the office of the Clerk of the Commission, together with the MISO Addendum to Trade Guaranty and any documents necessary to their implementation, subject to approval of the City Attorney and 2). Authorize the General Manager or his designee to execute and deliver such further amendments to the 2005 Advance Agreement which authorize further addenda to the Trade Guaranty as may be required by other regional transmission organizations or independent system operators, to the extent such addenda are in substance similar to the addendum effected by Annex 4 to the 2005 Advance Agreement , such determination to be made by the General Manager or his designee, subject to approval of the City Attorney.
fiscal note
The Agreement and Addendum do not modify any financial commitments under the previously approved advance agreement.
drafter
Prepared By: Raymond O. Manasco, Jr., Utilities Attorney
Submitted By: Michael L. Kurtz, General Manager