RES 2017-36 Adopted With Agreement RESOLUTION NO. 2017-36
A RESOLUTION AUTHORIZING THE CITY TO ENTER INTO AN AGREEMENT
WITH SOUTH CAROLINA ELECTRIC AND GAS AND AIKEN ELECTRIC
COOPERATIVE INC. RELATED TO ELECTRIC SERVICE RIGHTS OF THE TWO
PROVIDERS WITHIN THE CITY.
WHEREAS, the City has been presented a proposed agreement concerning
electric service rights between South Carolina Electric and Gas Company and Aiken Electric
Cooperative, Inc. within the City limits; and,
WHEREAS, the Mayor and City Council have determined that it is in the
11 best interest of the City that such agreement be approved; and,
WHEREAS, the agreement has been executed by both South Carolina
Electric and Gas Company and Aiken Electric Cooperative, Inc.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of
the City of North Augusta, South Carolina in meeting duly assembled and by the authority
thereof, that the agreement is approved as follows:
1. The City Administrator is authorized to execute the agreement that is
attached hereto and marked "Exhibit A" on behalf of the City.
2. The approval by the City is to specifically provide that this resolution
does not authorize the granting of the franchises as referred to in such
agreement and specifically requires that such franchise agreements be
presented to the Mayor and City Council for formal review and
approval, if appropriate, by ordinance at a later date.
DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS THE.,,Al DAY OF AUGUST,2017.
444%/9 /
Robert A. Pettit, Mayor
ATTEST:
A .
Donna B. Young, City ClerkU
3
AGREEMENT CONCERNING ELECTRIC SERVICE RIGHTS BETWEEN
AIKEN ELECTRIC COOPERATIVE AND SOUTH CAROLINA ELECTRIC & GAS
COMPANY nn
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This Electric Service Rights Agreement is entered into this�3 day of k,i^d-I".7
20 17 by and between South Carolina Electric & Gas Company ("SCE&G"), Aiken
Electric Cooperative, Inc. ("Aiken Electric"), and the City of North Augusta ("City")
(collectively, "Parties").
WHEREAS, Aiken Electric and SCE&G each have separate electric franchise
agreements with the City, which were approved by the City in March 2000, and SCE&G
also has a separate natural gas franchise agreement, which was approved by the City in
2005; and
WHEREAS,the City desires to avoid electric service rights disputes between Aiken
Electric and SCE&G within the City limits; and
WHEREAS, Aiken Electric and SCE&G have engaged in a detailed infrastructure
and parcel mapping exercise within the City in an effort to allow both companies to have
more certainty in planning to provide electric service and to allow both companies to
provide electric service more efficiently and effectively; and
WHEREAS, as agreed to by the Parties, the attached Exhibit A is a map of the City
of North Augusta with the parcels for which Aiken Electric is to have electric service rights
shaded in green and the parcels for which SCE&G is to have electric service rights shaded
in red;
NOW THEREFORE, in consideration of the mutual covenants herein contained,
the sufficiency of which is acknowledged, the Parties hereby agree as follows:
1. Aiken Electric and SCE&G shall enter into Franchise Agreements with the City on
December 1, 2017, or earlier if the Parties so agree, provided that both Franchise
Agreements will be signed on the same day. The Franchise Agreements shall each
have the same effective date, shall each be for a specified term of at least thirty(30)
years, shall each expire on the same date certain, and shall each omit any provisions
allowing for amendment of the term of the Franchise Agreement. Five (5)business
days prior to execution of the Franchise Agreements, each Party shall be provided
with the final versions of the Franchise Agreements for the purpose of determining
compliance with the terms of this Electric Service Rights Agreement. If any Party
determines that either Franchise Agreement does not comply with the terms of this
Electric Service Rights Agreement, that Party may terminate this Electric Service
Rights Agreement at any time prior to execution of the Franchise Agreements.
2. The Parties agree that Exhibit A is a reasonable assignment of the electric service
rights to the parcels located within the City limits and resolves any current and future
disputes regarding electric service rights to the parcels. As such, the Franchise
Agreements entered into pursuant to Paragraph 1 shall each reference and include
as an attachment Exhibit A attached hereto. The Franchise Agreement between
SCE&G and the City shall provide that SCE&G has electric service rights to the
parcels shaded in red on the attached Exhibit A. The Franchise Agreement between
Aiken Electric and the City shall provide that Aiken Electric has electric service
rights to the parcels shaded in green on the attached Exhibit A. The Franchise
Agreements entered into pursuant to Paragraph 1 need not and shall not include any
language indicating the possibility of electric service rights disputes.
3. Upon acceptance by City Council of both the Franchise Agreement between Aiken
Electric and the City and the Franchise Agreement between SCE&G and the City,
SCE&G shall have electric service rights to the parcels shaded in red on the attached
Exhibit A, and Aiken Electric shall have electric service rights to the parcels shaded
in green on the attached Exhibit A. Except as specifically provided in Paragraphs
4, 5, and 6 herein, the service rights designation in the attached Exhibit A shall be
the sole determining factor as to whether Aiken Electric or SCE&G has the right to
serve a building or structure within a particular parcel.
4. The Parties further agree that Aiken Electric may continue to provide electric
service to any building or structure to which it is already providing electric service
as of the effective date of the Franchise Agreements until such building or structure
is removed, torn down, razed to the ground, or demolished, even if Exhibit A
provides electric service rights for the parcel on which the building or structure is
located to SCE&G; and SCE&G may continue to provide electric service to any
building or structure to which it is already providing electric service as of the
effective date of the Franchise Agreements until such building or structure is
removed, torn down, razed to the ground, or demolished, even if Exhibit A provides
electric service rights for the parcel on which the building or structure is located to
Aiken Electric. Each Franchise Agreement entered into pursuant to Paragraph 1
shall contain a provision stating as such.
5. The Parties further agree that the customer, in its sole discretion, may choose
whether Aiken Electric or SCE&G provides electric service to a new building or
structure that is constructed so that part of the building or structure resides on a
green parcel of the attached Exhibit A and part of the building or structure resides
on a red parcel of the attached Exhibit A. Each Franchise Agreement entered into
pursuant to Paragraph 1 shall contain a provision stating as such.
6. The Parties further agree that, upon any future annexation by the City, Aiken
Electric shall continue to provide electric service to those annexed parcels assigned
to it by the Public Service Commission of South Carolina prior to the annexation,
and SCE&G shall continue to provide electric service to those annexed parcels
assigned to it by the Public Service Commission of South Carolina prior to the
annexation. Each Franchise Agreement entered into pursuant to Paragraph 1 shall
contain a provision stating as such.
7. The electric service rights delineated in Exhibit A are in compliance with applicable
state law.
8. This Electric Service Rights Agreement will not be amended without the express
written consent of all Parties.
9. If the City Council does not approve both Franchise Agreements entered into
pursuant to Paragraph 1, this Electric Service Rights Agreement shall be considered
terminated, null and void. Each Franchise Agreement entered into pursuant to
Paragraph 1 shall contain a provision stating as such.
10.The Parties agree that the Franchise Agreement that SCE&G enters into pursuant to
Paragraph 1 will be a combination electric and gas Franchise Agreement.
IN WITNESS WHEREOF, the duly authorized representatives of the Parties have
caused this Electric Service Rights Agreement to be executed on the date first written
above.
CITY OF NORTH AUGUSTA
Robert A. Pettit Mayor te SOUTH CAROLINA ELECTRIC & GAS COMPANY
W. Keller Kissam, President, Retail Operations Date
AIKEN ELECTRIC COOPERATIVE, INC.
Gary L. Stooksbury, Chief Executive Officer Date
North Augusta P acc
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City of Asslgnme�t
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