Approve 2006 Sub-Agreement for Direct Funding of the Rebuilding of Generated Facilities at Wolf Creek Dam:

Staff recommends that the Board approve the “2006 Sub-Agreement Documents” for direct funding of the rebuilding of generating facilities at Wolf Creek Dam.

Each year the Plant Board enters into a contract with SEPA (Southeastern Power Administration) for hydro energy. In June, 2005, the Plant Board, along with other Municipals receiving SEPA Energy approved the first annual Sub-Agreement referred to as a “Memorandum of Agreement” (MOA).

The MOA defines a method whereby the Municipals agree that a portion of the SEPA billing in the form of a separate check be sent directly to the Corp of Engineers and used for the rebuilding of the generating facilities at Wolf Creek Dam on the Cumberland River.

The two checks (to Corp of Engineers and to SEPA) are equal to the total monthly SEPA billing.