HomeMy WebLinkAbout2005-04RESOLUTION NO. 2005-04
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
AUTHORIZING THE NORTHERN CALIFORNIA POWER AGENCY (NCPA)
TO APPLY PAYMENTS DUE FROM PACIFIC GAS AND ELECTRIC COMPANY (PG&E)TO SET
OFF THE ALLEGED PG&E CLAIM
WHEREAS, Pacific Gas and Electric Company (PG&E) has presented a demand for payment of
alleged and disputed charges for its alleged services under a tariff commonly referred to as the
Scheduling Coordinator Services (SCS) Tariff, which tariff is currently the subject of proceedings in
FERC Docket No. ER00-565 (the "Subject Proceedings"); and
WHEREAS, NCPA and its affected member entities such as the City of Ukiah believe that the
SCS Tariff is not just and reasonable and dispute the demand PG&E has made for payment due in part
to its utter lack of documentary, contractual, methodological, and legal foundation, which dispute goes
to the entirety of PG&E's alleged claim; and
WHEREAS, PG&E's alleged claim, if paid, will divert needed public financial resources to pay
PG&E for an alleged claim PG&E itself never expected to present to NCPA with the onset of
deregulation; and
WHERAS, PG&E has outstanding obligations to NCPA and its affected members relating in one
or more material ways to the disputed PG&E alleged claim, which obligations arose before PG&E's
bankruptcy and have continued thereafter, and which PG&E has an unconditional obligation to pay to
NCPA and its affected members (PG&E Obligations); and
WHEREAS, for several reasons, including the possibility that any payment to PG&E for the
alleged claim may not be repaid, it would be unwise and imprudent to release public funds to PG&E's
control in any event without certain enforceable assurances from PG&E, and in their absence, this
Agency has no choice but to escrow disputed amounts with an independent escrow agent; and
WHEREAS, a form of escrow agreement with the U.S. Bank has been approved by NCPA and
NCPA has requested that its affected members pledge their interests in the PG&E Obligations to be
applied to set off the alleged PG&E claim;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah that all right,
title, and interest in and to any payments that PG&E may make to NCPA arising from the PG&E
Obligations are hereby pledged and authorized to be applied as a set-off against the alleged PG&E
claim.
PASSED AND ADOPTED this 7th day of July 2004 by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers Rodin, Andersen, Smith, Baldwin, and Mayor Larson
None
None ~'~1.~.- ~
None
Eric Larson, Mayor
ATTEST:
/
Marie UIvila, Deputy City Clerk
Resolution No. 2005-04
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