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RESOLUTION NO. ,q2-6]. ~
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF UKIAH REQUESTING THE SACRAMENTO MUNICIPAL
UTILITY DISTRICT (SMUD) TO SEEK A RESOLUTION
OF ITS LEGAL DISPUTE WITH THE UNITED STATES
TO PRESERVE THE CENTRAL VALLEY PROJECT
WHEREAS, the Sacramento Municipal Utility District (SMUD) has pursued
litigation since 1974 against the United States alleging that SMUD is required
under its 1954 CVP power agreement to pay only for the costs of inexpensive
hydroelectric-generated CVP power and is not required to share the higher
costs of non-hydro CVP power sources; and
WHEREAS, the effect of SMUD's restrictive interpretation of its contract
would be to increase severalfold the CVP rates to all other CVP customers since
SMUD's large CVP allocation would preempt a substantial protion of the total
CVP hydroelectric-generated power; and
WHEREAS, under SMUD's contractual interpretation, the Central Valley
Project would no longer serve as a highly valued source of comparatively low
cost federal power to its numerous Central Valley Project public agency cus-
tomers, with a resultant devastating effect upon public power in Northern
California;
NOW, THEREFORE, the City Council of the City of Ukiah does hereby Resolve:
That SMUD be asked to seek a resolution of its legal dispute with United
States that will preserve the Central Valley Project as a viable power source
and alternative to PG&E for preference customers of the Central Valley Project,
and
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That such a resolution will serve the mutual interests of SMUD and the
other CVP customers by assuring the continued future of public power in
Northern California, which benefits all publicly owned utilities including
SMUD.
PASSED AND ADOPTED this 21st day of April , 1982, by the
following roll call vote:
AYES: Councilmembers Hickey, Feibusch, Snyder, Riley, Myers
NOES: None
ABSENT: None
ATTEST: