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Commission briefed on potential sale of utility racks and contract revisions; value estimate provided
Summary
Staff said WAPA approved proceeding with revisions that allow sale of the REX racks, American Crystal expressed interest in buying some racks, and staff estimated a total racks value "around $7,073,000 plus or minus." Contract revisions and coordination with MMPA and MRED remain under review.
Keith (commission/staff) briefed the commission on progress toward selling utility racks (referred to in the meeting as the "Rex" racks). He said WAPA provided approval to proceed with contract revisions and sent documents related to the 2050 contract and coordination with MMPA and WAPA for administering the racks with MRED.
"We have $7,073,000 plus or minus somewhere in that area," Keith said when discussing estimated value; he added that American Crystal has expressed interest in purchasing some of the racks and that staff will determine how many racks they would want and what the final dollar amount would be.
Keith said staff is reviewing the revisions and plans to bring a recommendation to the commission at the next meeting, then work with MMPA and others on further steps. No sale was finalized at this meeting.
Why it matters: selling utility racks could produce a significant one-time cash inflow to the utility and requires contract changes and interagency coordination with regional entities.
Next steps: staff will review contract language, confirm interest and quantities with American Crystal, and return with recommendations at a future meeting.
