Resolution No. 4535 - Laserfiche WebLink

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EUGENE WATER & ELECTRIC BOARD RESOLUTION AUTHORIZING SETTLEMENT OF CONTRIBUTION IN LIEU OF TAX (CILT) PAYMENT DISPUTE RELATED TO THE TROJAN NUCLEAR PROJECT WHEREAS in 1970 the Eugene Water & Electric Board ("EWEB"), Portland General Electric, and Pacific Power & Light (together, the "Owners") agreed to construct and jointly own the Trojan Nuclear Power Project (the "Project") located northwest of Portland, Oregon; and WHEREAS EWEB committed at that time to a 30 percent ownership share of the Project; and WHEREAS in 1970 EWEB and Bonneville Power Administration ("BPA") executed a Net Billing Agreement for the Project which obligated BPA to pay 100 percent of all EWEB costs associated with the Project; and WHEREAS the Net Billing Agreement was executed at the same time as the Project Ownership and Construction Agreement; and WHEREAS in 1976 the Project began operation; and WHEREAS in 1993 the Owners and BP A agreed to terminate the operation of the Project and, since 1993, the Owners have been working to decommission the Project; and WHEREAS, since 1976 and in accordance with the terms of the Net Billing Agreement, costs related to the Project paid by BP A have included an annual contribution in lieu of tax payment ("CILT payment") for the City of Eugene, an amount equivalent to 3 percent of EWEB' s share of the net operating costs for the Project; and WHEREAS since 1993 BP A has questioned BP A's continued responsibility to make the annual CILT payment for the Project and, beginning in Project budget year 1996, refused to make the aforementioned CIL T payment; and WHEREAS EWEB and the City of Eugene, in ongoing discussions and negotiations with BP A, have consistently maintained that BP A has a contractual obligation to make the aforementioned CIL T payment until such time as the Project decommissioning is completed; and