Title
Proposed Water Service Contract with St. Clair County Board of Public Works
Body
Agenda of: January 26, 2022
Item No.: 2022-015
Amount: Revenue Contract
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: January 10, 2022
RE: Proposed Water Service Contract with St. Clair County Board of Public Works
MOTION
Upon recommendation of Randal Brown, General Counsel, the Board of Directors ("Board") of the Great Lakes Water Authority ("GLWA"), authorizes the Interim Chief Executive Officer ("ICEO") to execute a 30-year water service contract with St. Clair County Board of Public Works; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The St. Clair County Board of Public Works ("Member Partner") contracts with GLWA for water services for the benefit of one user in its service area, the DTE Energy Greenwood Energy Center ("GEC"). The GEC is a natural gas-fueled power plant designated as a "cycler" during the peak summer months. It uses GLWA water for cooling equipment when it's operating. Its use is dependent on demands in the electric market and the price of natural gas. Over the past 10 years, the GEC has run as many as 124 days and as few as 32. As explained by the plant manager, the GEC has little to no control over the frequency of its operation and, moreover, its long-term operations cannot be guaranteed for the duration of the 30-year Contract. As a result, GLWA agreed to two concessions in its model contract to accommodate the significant financial risk to the Member Partner under this factual situation.
The first concession is the addition of Section 3.06, Sole Account. This new section provides that if, for the duration of the contract, the Member Partner maintains only one retail account within its service area (in this case, the GEC), ...
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