HomeMy WebLinkAbout~Master - Agreement for Natural Gas Delivery to Ames Power Plant RESOLUTION NO. 14-516
RESOLUTION WAIVING FORMAL BIDDING REQUIREMENTS AND APPROVING
CONTRACT WITH INTERSTATE POWER& LIGHT
FOR NATURAL GAS DELIVERY SERVICE
FOR THE CITY OF AMES,IOWA
WHEREAS, the power plant conversion project is required to meet future Environmental
Protection Agency(EPA) air quality requirements for electric generating power plants; and,
WHEREAS, in recent years, the electric utility industry, particularly utilities with fossil-
fueled generation resources,has been challenged by the introduction of several major environmental
regulations promulgated by the EPA; and,
WHEREAS, at the same time,the price and supply of natural gas has dropped significantly
in the United States, and these two factors together have caused the industry to reevaluate its
strategies of how to generate electric power; and,
WHEREAS,the City of Ames,with its two coal-fired generating units(47 and 32 years old),
has carefully assessed its future role of supplying power for the City's electric ratepayers; and,
WHEREAS, on October 30, 2013, the EUORAB voted to recommend that City Council
approve conversion of the City's power plant from coal to natural gas, and on November 12,2013,
the City Council voted to convert the City's power plant from coal to natural gas; and,
WHEREAS,Alliant Energy(IPL)is the retail natural gas service provider in the Ames area,
and it is in the process of completing a major gas line from one of the NNG gas pipe lines in Story
City to a location just north of Barilla; and,
WHEREAS, this gas line is being built to supply gas transport service to Lincoln Way
Energy, DuPont, and Iowa State University, and IPL's proposal is to allow the City of Ames to
become a fourth participant in this line extension; and,
WHEREAS, as part of the contract, IPL will construct an additional 4.5 miles of new gas
pipeline to transport gas from the IPL-DuPont Regulating Station to the power plant.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that waiver of the City's formal bidding requirement is hereby approved,and it is further approved
that the Interstate Power & Light for natural gas delivery service from the Northern Natural Gas
pipelines near Story City to the Ames Power Plant, contingent upon the City and Williams Bulk
Transport reaching an acceptable agreement on continuation of coal supply, as needed, in 2016.
ADOPTED THIS 14th day of October, 2014.
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Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Orazem
Seconded by: Corrieri
Voting aye: Betcher, Corrieri, Gartin,Nelson, Orazem
Voting nay: None Absent: Goodman
Resolution declared adopted and signed by the Mayor this 14"day of October, 2014.