Title
A RESOLUTION AUTHORIZING THE SALE OF CERTAIN HUDSON PUBLIC POWER’S TRANSMISSION EQUIPMENT LOCATED AT THE EASTSIDE SUBSTATION TO FIRST ENERGY CORPORATION; AND DECLARING AN EMERGENCY.
Executive Summary: With the newly establish NERC definition of a BES transmission owner, the City is now subject to NERC operational requirements. Staff has determined that it is in the City’s best interest both in the short and long term to sell the transmission equipment located at the Eastside Substation to First Energy Corp. thereby relieving the City of NERC requirements.
Body
Legislative History
N/A
Purpose & Explanation
The bus ring configuration and associated equipment currently owned by the City of Hudson located at the Eastside Substation is now considered part of the bulk electric system by NERC definition. As such, the City is now subject to NERC rules and regulations. First Energy Corp. is the owner and operator of the 138KV transmission system that enters the City at the Eastside Substation. The associated equipment included in the sales agreement is as follows:
Equipment QTY
- SF6 Breaker 4
- Gang Switch 8
- Post Insulator 112
- Arrester 6
- Structure & Bus 1
- Relays 45
Upon sale approval FE will apply to FERC for authorization to purchase. The City’s legal department then will handle the sales proposal agreement and purchase transaction. As part of the agreement HPP staff will work with the legal department to establish substation entry and/or easement agreement language for FE access to the equipment.
First Energy Corp has proposed a purchase price of $457,685 for the above transmission equipment. Staff has reviewed the equipment valuations and is comfortable with the purchase proposal price and recommends moving forward with the transaction.
Timing Considerations
Staff seeks emergency legislation to expedite the purchase agreement and execute the sale to relieve the City of any FERC and/or NERC requirements or fines.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council authorize the City Manager to enter into a sales agreement with First Energy Corp. for the sale of electrical transmission equipment located at the Eastside Substation.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Asst. City Manager-Operations
Kevin Powell, Asst. Public Works Director - Utilities