Title
Approval of AGR18-41 for the San Juan Generating Station Decomissioning Trust Agreement.
Recommended Action
I move that the Board of Public Utilities approve AGR18-41 with Bank of Albuquerque for establishment of a Trust for the purpose of fulfilling the County's funding obligation under the San Juan Generating Station Decomissioning Trust Funds Agreement, and forward to Council for approval.
Staff Recommendation
The Utilities Manager recommends that the Board of Public Utilities approve the motion as presented.
Body
Los Alamos County is a participant in the San Juan Generating Station near Farmington New Mexico. Ownership and participation in the San Juan plant was revised and restructured through The San Juan Project Restructuring Agreement among the San Juan Project participants dated July 31, 2015, and the Exit Date Amendment Amending and Restating the Amended and Restated San Juan Project Participation Agreement among the San Juan Project participants, also dated July 31, 2015. The Participants' rights and obligations with respect to Plant Decomissioning Costs are governed by the San Juan Decomissioning and Trust Funds Agreement among the San Juan Project Participants, also dated July 31, 2015. “Closing” on these restructuring agreements became effective on or about December 31, 2017. The Decomissioning Agreement requires that within 90 days of closing on the restructuring agreements an Irrevocable Trust Fund be established by each Project Participant to satisfy that participant’s share of decommissioning costs, as defined by the Decomissioning Agreement. The Plant Decomissioning Agreement requires that this trust fund be established, funded, and maintained until completion of the decomissioning work, as determined by the Plant Decomissioning Oversight Committee, on which each Project Participant has representation. Because of the uncertain end date of decomissioning activities, it cannot be known how long the trust will be required, and thus ...
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