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Council hears how renewal would change how PMPA markets excess capacity
Summary
Staff explained the proposed contract would modernize definitions, remove percentage allocations from exhibits and add procedures allowing PMPA to market excess participant capacity and credit proceeds back to participants; changes also clarify post‑lawsuit accounting (section 5(h)).
Presenters told council that several structural and administrative changes are built into the renewal to reflect modern contracting and PMPA practices.
Kevin said the renewal updates definitions and administrative sections and specifically modernizes presentation of Catawba budgets to participants. He noted section 5(h) was clarified following litigation over final accounting, and the renewal incorporates procedures to implement prior policy for selling excess capacity. Joel Ledbetter explained that under the revised section 11 a participant that declares excess capacity must first offer it to other participants; if no participant takes it, PMPA will market it on the open market and proceeds would be credited back to the selling participant’s monthly bill.
Council members asked why participant percentages were being removed from the exhibit. Joel said the exhibit no longer shows a full list of percentages because not every member will sign the renewal; “we're attempting to sell theirs,” Joel said of participants who will not join the new agreement. City staff added this approach avoids publishing outdated shares for members who decline to participate and gives PMPA authority to reallocate and market unclaimed shares.
Taxability and private‑use provisions were also discussed; staff said Westminster currently does not have contracts that would create private‑use tax exposure, though some PMPA participants do and the renewal contains language to address tax consequences at the portfolio level.
