AMENDMENT NO. 1
TO THE
ALASKA INTERTIE AGREEMENT
ARTICLE 17 - INSURANCE AND LIABILITY
This Amendment No. 1 is made this 28th day of March, 1991, by the Participants,
ALASKA POWER AUTHORITY, now the Alaska Energy Authority, a public corporation of
the State of Alaska ("AEA"); the MUNICIPALITY OF ANCHORAGE, ALASKA d/b/a
MUNICIPAL LIGHT & POWER ("AML&P"); CHUGACH ELECTRIC ASSOCIATION, INC.
("Chugach"); THE CITY OF FAIRBANKS, ALASKA, MUNICIPAL UTILITIES SYSTEM ("FMUS");
GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. ("GVEA"); and ALASKA ELECTRIC
GENERATION AND TRANSMISSION COOPERATIVE, INC. ("AEG&T"), signatories to the
Alaska Intertie Agreement, dated December 23, 1985, hereinafter referred to as
"Agreement." The signatory parties are hereinafter referred to as
"Participants."
WITNESSETH
WHEREAS THE MUNICIPALITY OF ANCHORAGE, ALASKA, d/b/a MUNICIPAL LIGHT & POWER;
CHUGACH ELECTRIC ASSOCIATION, INC.; THE CITY OF FAIRBANKS, ALASKA, MUNICIPAL
UTILITIES SYSTEM; GOLDEN VALLEY ELECTRIC ASSOCIATION, INC.; and ALASKA ELECTRIC
GENERATION AND TRANSMISSION COOPERATIVE, INC., are all Utility Participants and
signatories to the Alaska Intertie Agreement; and WHEREAS the AEA is a
Participant and signatory to the Alaska Intertie Agreement; and
WHEREAS the signatories to the Alaska Intertie Agreement desire to have Article
17 amended;
NOW THEREFORE, the Participants agree as follows:
ARTICLE 17
Insurance and Liability
Section 17.1 Insurance
During the term of this Agreement, each Participant shall purchase and
maintain insurance with a carrier or carriers satisfactory to the
Operating Committee and the AEA covering injury to persons or property
suffered by any Participant or a third party, as a result of errors,
omissions, or operations which arise both out of and during the course
of this contract by the Participant or by any of its subcontractors.
The coverage shall also provide protection against injuries to all
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employees of the Utility Participant and the employees of any of its
subcontractors engaged in work under this Agreement.
If approved by the Operating Committee and the AEA, AML&P, FMUS and the
AEA may qualify for certain levels of self-insurance. Any such
undertaking to self-insure will be furnished to the Operating Committee
and the AEA before beginning operations under this Agreement.1
As an additional alternative, group policies shall be acceptable under
Section 17.2 of this Agreement if such policies meet the expressed
coverage requirements individually and collectively for the signatories
of this Agreement. Any other alternative allowed under Sections 17.2
must provide identical or better limits of coverages required for each
of the exposures, as specified in that Section 17.2.
Section 17.2 Types of Insurance
17.2.1 The following insurance must be provided by each Participant to
cover those operations of the Participants performed under this Agreement:
Worker's Compensation Insurance: Each Participant shall provide and
maintain, for all employees of the Participant engaged in work under
this Agreement, Worker's Compensation Insurance as required by AS
23.30.045. Statutory worker's compensation coverage may be provided
through purchase of insurance, self- insurance (in the case of AML&P,
FMUS and the AEA only) or a combination of both. A self-insurance
program must provide a high level of statutory excess over the
self-insured level.
Each Participant shall require Worker's Compensation Insurance for any
of its subcontractors who directly or indirectly provide services under
this Agreement. Each insurance policy must include:
(a) Statutory coverage for states in which employees are engaging in
work;
(b) Employer's Liability Protection of not less than $500,000 per
occurrence;
(c) Broad Form All States Endorsement;
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1 Where in this Article 17 the AEA is entitled to self-insurance and
there are requirements for approval by the Operating Committee and AEA for such
self-insurance, the AEA shall not participate in such approval.
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(d) Coverage as required by all State and Federal Acts where
applicable;
The Worker's Compensation Insurance policy shall contain a waiver of
subrogation in favor of the other Participants. Any Participant who is
self-insured hereby waives subrogation in favor of the other
Participants.
AML&P, FMUS and the AEA may self-insure for Worker's Compensation
Insurance up to the maximum filed and approved with the State
Department of Labor.
A copy of the insurance policies and/or descriptions of self-insurance
program will be furnished to the Operating Committee and the AEA on
February 1 of each year.
17.2.2 Comprehensive General Liability Insurance: Each Participant
shall purchase and maintain comprehensive general liability insurance subject to
the following limits of liability:
(a) Bodily Injury and Property Damage Liability of a minimum of
$5,000,000 Combined Single Limits each occurrence and
affording insurance for Premises- Operations, Owners' and
Contractors' Protective, Independent Contractors,
Products/Completed Operations, Blanket Contractual Liability,
Broad Form Property Damage, and Personal Injury Liability.
(b) Automobile Liability Insurance covering all vehicles. Such
insurance shall provide coverage of not less than $5,000,000
Combined Single Limit each occurrence for Bodily Injury and
Property Damage Liability.
(c) Owned Aircraft (if applicable) and Non-Owned Aircraft with
seating capacity of five seats or less, except commercial,
scheduled flights, with limits of liability not less than:
$5,000,000 -Bodily Injury per occurrence; $1,000,000 for
Passenger Liability per seat; and $5,000,000 for Property
Damage Liability per occurrence. Coverage must include Slung
Cargo exposures. If an aircraft with more than five-seat
capacity is used, special coverage and limits must be obtained
and approved by the Operating Committee.
(d) Owned Watercraft (if applicable) and Non-Owned Watercraft (if
applicable) with limits of liability not less than $5,000,000
per single occurrence as provided in the "In Rem Endorsement
under "Maritime Coverage B."
If approved by Operating Committee and the AEA, AML&P, FMUS and the AEA
may self-insure any or all of the required coverages in (a), (b), (c),
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and (d) above. Participants intending to pursue this alternative
coverage must provide proof of solvency to be approved annually by the
Operating Committee and the AEA. The Operating Committee and the AEA
shall establish the guidelines to insure such solvency. Members who
have in place approved alternative coverage shall notify the Operating
Committee and the AEA on semi-annual basis of any fluctuation(s) that
may reduce or limit their solvency as originally approved by the
Operating Committee and the AEA.
The other Participants shall be included as additional insured as
respects insurance required in this Section 17.2.2 of Article 17 and
shall not by their inclusion be responsible to the Insurance carrier
for payment of premium therefor. These insurance policies must also
contain a cross liability or severability of interest endorsement.
Section 17.3 Other Insurance Coverage Requirements
17.3.1 Bach Participant will bear the cost of the required insurance.
Insurance required to be maintained under this Article 17 may be maintained as
part of any other policy or policies of the Participant so long as the coverage
of such policy or policies is substantially the same as if such coverage were
maintained under a separate policy.
17.3.2 These policies must provide that any cancellation, non-renewal
or material change be upon 30 days' notice to all named insured. Each
Participant must provide the Operating Committee and the AEA with evidence of
insurance. Insurance companies, or self-insurers, shown on the certificate of
insurance must have financial ratings acceptable to the AEA. Failure to furnish
satisfactory evidence of insurance or lapse of the policy is a material breach
of this Agreement.
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IN WITNESS WHEREOF, the Participants have executed this Amendment No. 1 to the
Alaska Intertie Agreement in several counterparts by their authorized officers
or representatives as of the day and year first above written.
Approved as to form: ALASKA ENERGY AUTHORITY
/s/ 2-25/91 By: /s/
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Office of the Attorney General Executive Director
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Title
SUBSCRIBED AND SWORN TO before me this 26th day of February, 1991.
/s/
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Notary Public, State of Alaska
My Commission Expires: Oct. 12, 0000
XXXXXXXXXXXX XX XXXXXXXXX, XXXXXX
d/b/a MUNICIPAL LIGHT & POWER
By: /s/
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Exec Manager
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Title
SUBSCRIBED AND SWORN TO before me this 23rd day of January, 1991.
/s/
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Notary Public, State of Alaska
My Commission Expires: 2-29-92
CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/
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General Manager
SUBSCRIBED AND SWORN TO before me this 16th day of January, 1991.
/s/
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Notary Public, State of Alaska
My Commission Expires: 5-13-92
CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/
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President of the Board
SUBSCRIBED AND SWORN TO before me this 16th day of January, 1991.
/s/
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Notary Public, State of Alaska
My Commission Expires: 5-13-92
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CHUGACH ELECTRIC ASSOCIATION, INC.
By: /s/
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Vice President of the Board
SUBSCRIBED AND SWORN TO before me this 16th day of January, 1991.
/s/
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Notary Public, State of Alaska
My Commission Expires: 5-13-92
CITY OF FAIRBANKS, ALASKA
MUNICIPAL UTILITIES SYSTEM
By: /s/
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Deputy City Manager Utilities
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Title
SUBSCRIBED AND SWORN TO before me this 27th day of March, 1991.
/s/
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Notary Public, State of Alaska
My Commission Expires: July 18, 1994
GOLDEN VALLEY ELECTRIC
ASSOCIATION, INC.
By: /s/
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General Manager
SUBSCRIBED AND SWORN TO before me this 17th day of December, 1990.
/s/
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Notary Public, State of Alaska
My Commission Expires: 12-27-92
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ALASKA ELECTRIC GENERATION and
TRANSMISSION COOPERATIVE, INC.
By: /s/
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Interim General manager
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Title
SUBSCRIBED AND SWORN TO before me this 28th day of March, 1991.
/s/
------------------------------
Notary Public, State of Alaska
My Commission Expires: 12-27-92
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