Board hears progress report on Foxtail power‑pool ECA; major concern remains over termination clause

Deputy utility manager Ben Ulrich updated the board on ongoing negotiations with the Department of Energy and National Security Agency over the 2026 Electric Coordination Agreement (ECA) for the Foxtail power pool. Ulrich said work is progressing under a one‑month extension but that attorneys must resolve a major difference over how termination payments would be capped under the government's proposed language.

Ulrich told the board the contract's current wording would limit the DOE's termination payment exposure to the initial dollar allotment in the contract file—$6 million—while the overall contract value and related long‑term investments are several hundred million dollars, which the county believes understates its potential loss. He said county and DOE counsel were discussing possible language changes and that staff will return with updates; the operating committee is preparing a parallel process to evaluate a potential 10‑year option period at least three years in advance.

Board members pressed on the legal fit of a federal FAR termination clause to a commodity‑style power agreement and on the short notice periods in the draft; Ulrich said operating procedures and option‑period planning language are being added to give the county earlier visibility and to allow the board and council to prepare. The board agreed the termination language is the single most important outstanding item and asked staff to continue negotiations and return with proposed redlines.