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HomeMy WebLinkAbout1982-073 Agrmt Revision - BPA No DE-MS79-81BP90432 eotiTz. -- rLE - OPG (AUTHENTICATED COPY) Department of Energy Bonneville Power Administration OFFICE OF THE ADMINISTRATOR P.O. Box 3621 Portland,Oregon 97208 lnmpl/mferto: pKI November 2, 1982 Mr. Brian L. Almquist City Administrator City of Ashland City Hall Ashland, OR 97520 Dear Mr. Almquist: The second sentence of section 8(p) of the General Contract Provisions of all new Regional Act power sales and residential exchange contracts provides, "Bonneville shall develop in consultation with its utility customers and shall publish by July 1 , 1983 , methodologies as required for implementing section 7(b) (2) . " In order to meet this deadline, the proposed schedule would require hearings simultaneously with the hearings on Bonneville Power Administration's (Bonneville) 1983 rate adjustment . Both Bonneville and customer representatives working with Bonneville on the 7(b) (2) methodology are concerned that such simultaneous hearings could lead to conflicts and confusion in the development of the 7 (b)(2) methodology. The Public Power Council has requested on behalf of all preference customers that BPA propose an amendment to the General Contract Provisions to extend the July 1, 1983, deadline for 8 months to March 1, 1984. Bonneville agrees that the interests of Bonneville and its customers would be better served by postponing the formal hearing process on the 7(b) (2) methodology until after the completion of the 1983 rate process . To accomplish this end, Bonneville offers the following amendment to the General Contract Provisions of all the Regional Act power sales and residential exchange contracts which will extend the section 8(e) deadline for 8 months to March 1 , 1984. Section 8(e) of the General Contract Provisions, Exhibit B, is hereby amended as follows: Section 8(e) is deleted and replaced by the following section 8(e) : "(e) Bonneville's wholesale power rates established on any Rate Adjustment Date shall be developed consistent with the provisions of section 7 of P.L. 96-501 . Bonneville shall develop in consultation with its utility Customers and shall publish by March 1 , 1984, methodologies as required for implementing section 7(b) (2) . " • The only change made by this amendment is in the date, March 1, 1984. This J amendment does not in any way affect your rights under Regional Act section 7(b)(2) . Section 7(b) (2) does not go into effect until after July 1, 1985, according to the terms of the Regional Act. This contract amendment 2 merely postpones by 8 months, to March 1, 1984, the date by which the methodology to implement secton 7(b) (2) must be published in the Federal Register. Bonneville is seeking to have this amendment signed and returned by all parties involved by Nov. 30, 1982, or as soon thereafter as possible. This will permit Bonneville and those customer representatives who are working with Bonneville on the 7(b)(2) methodology to know at the earliest date whether the methodology must be completed by July 1 , 1983, or may be delayed until March 1, 1984. Therefore, please indicate your acceptance of this offer by signing and returning to your Bonneville Area or District Office three copies of this agreement, along with a certified copy of the authorizing resolution, as appropriate. This agreement shall become effective only when like agreements have been signed by all parties receiving this offer. The parties receiving this offer are all of Bonneville's power sales and residential exchange customers under contracts offered by Bonneville on August 28, 1981. If you have any questions regarding either Regional Act section 7(b)(2) or this contract amendment, please call your Area or District Office. • Sincerely, /s/ Peter T. Johnson Administrator ACCEPTED: CITY OF ASHLAND By /s/ Don Laws Title Acting Mayor Date 11-19-82 ATTEST: By /s/ Nan E. Franklin • Title City Recorder Date 11-17-82 I (WP-PKI-2428b)