A Resolution of the City Council of Homer, Alaska, Expressing Support for a One Dollar Per Mcf Tariff Increase on the Price of Natural Gas in the Area Served by the Proposed South Peninsula Natural Gas Pipeline as a Local Contribution to the Cost of Constructing the Line. City Manager.
CITY OF HOMER
A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, EXPRESSING SUPPORT FOR A ONE DOLLAR PER MCF TARIFF INCREASE ON THE PRICE OF NATURAL GAS IN THE AREA SERVED BY THE PROPOSED SOUTH PENINSULA NATURAL GAS PIPELINE AS A LOCAL CONTRIBUTION TO THE COST OF CONSTRUCTING THE LINE.
WHEREAS, Capital funding for a natural gas transmission line from Anchor Point to the Homer area has been approved by the Legislature but vetoed by the Governor in each of the past two years; and
WHEREAS, The Governor has stated that he wanted to see a local contribution toward construction of the transmission line independent of and separate from the local financing for the distribution system that would also be necessary; and
WHEREAS, It has been determined that a one dollar per mcf tariff increase that was approved by the Regulatory Commission of Alaska for a different project to bring natural gas to Homer is still active and could be applied to this project; and
WHEREAS, The proposal on the table for consideration by the Governor is that local gas consumers would pay a one dollar per mcf increase in the price of natural gas until $2.5 Million dollars is raised; projected by Enstar to be approximately 10 years; and
WHEREAS, Enstar Natural Gas Company has expressed support for the concept and is willing to “upfront” the $2.5 Million necessary to match the requested funding from the state.
NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby expresses its support for a one dollar per mcf tariff increase on the price of natural gas in the area served by the proposed South Peninsula Natural Gas Pipeline as a local contribution to the cost of constructing the line.
PASSED AND ADOPTED BY THE HOMER CITY COUNCIL this 27th day of February, 2012.
CITY OF HOMER
JAMES C. HORNADAY, MAYOR
JO JOHNSON, CMC, CITY CLERK
Fiscal Note: N/A