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<br />November 14, 2006
<br />
<br />WHEREAS, a number of licenses for the construction and operation of several regional
<br />hydroelectric facilities at existing dams may be available to AMP-Ohio or its members via
<br />purchase, application to the FERC or other cooperative arrangements; and
<br />
<br />WHEREAS, AMP-Ohio desires to provide Municipality with the opportunity to participate in the
<br />development of new regional hydroelectric facilities, primarily located on the Ohio River,
<br />utilizing conventional as well as newer technologies, in order to provide the Municipality's
<br />electric utility consumers this reasonably priced, environmentally sound and reliable source of
<br />long term power; and
<br />
<br />WHEREAS, AMP-Ohio anticipates that no less than 30,000 kilowatts (kW), and potentially
<br />250,000 kW of hydroelectric capacity may be available; and
<br />
<br />WHEREAS, it is necessary for the Municipality to enter into a contract (Agreement) with AMP-
<br />Ohio to provide for preconstruction development funding to allow for analyzing the technical,
<br />permitting, and economic aspects of the potential new hydroelectric projects (hereinafter the
<br />"Hydro Projects") and determine if the Municipality, in conjunction with AMP-Ohio and other
<br />participating municipalities, should proceed to construct, own and operate one or more new
<br />Hydro Projects; and
<br />
<br />WHEREAS, under the terms of the Agreement, AMP-Ohio will report the results of the developmental
<br />studies to the Municipality prior to the Municipality committing to proceed with construction of one or
<br />more Hydro Projects if and only if in the Municipality's sole discretion it determines to do so; and
<br />
<br />WHEREAS, Municipality desires to obtain, pursuant to the Agreement, rights to an amount of up to a
<br />nominal 4,300 kW of capacity of the Hydro Projects on the same terms and conditions as the other
<br />participating municipalities; and
<br />
<br />WHEREAS, it is necessary for the Municipality to commit itself to pay, pursuant to the Agreement, a pro
<br />rata share of the developmental costs of the Hydro Projects in proportion to the kW of capacity from the
<br />Hydro Projects that Municipality chooses to reserve to the total kW reserved by all participating
<br />municipalities, such commitment limited, however to a financial obligation of no more than $32.84 per
<br />kW reserved; and
<br />
<br />WHEREAS, Municipality had, pursuant to Resolution adopted May 9th, 2006 authorized execution of a
<br />similar development agreement, but which was limited to the Hydro Matrix technology and AMP-Ohio
<br />has determined that conventional as well as newer technologies such as Hydro Matrix, must be explored,
<br />now, therefore
<br />
<br />BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MARTINSVILLE, in regular seSSIOn
<br />assembled November 14,2006:
<br />
<br />SECTION 1: That the form of the Hydro Projects Developmental Cost Sharing Agreement [attached
<br />heret%n file with the Clerk] as Exhibit 1 is hereby approved, subject to and with any and all changes
<br />therein as hereinafter provided.
<br />
<br />SECTION 2: That the City Manager is hereby authorized to execute a Hydro Developmental Cost
<br />Sharing Agreement substantially in the form of Exhibit 1 for up to a nominal amount of 4,300 kW, with
<br />the cost to the Municipality capped at $32.84 per kW which cannot be exceeded without further action of
<br />this Council.
<br />
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