HomeMy WebLinkAbout2004-078 Agrmt - PacifiCorpMay 14, 2003
City of Ashland
Director of Electric and Telecommunications
Dick Wanderscheid
20 E. Main St.
Ashland, Or. 97520
Dear Dick:
Thanks for taking the time this past month to discuss operational issues associated with service to
customers within the city's service boundary. As we discussed, I am providing this letter of agreement to
summarize the meeting and clarify the intent of the Allocation Agreement, dated January 9, 1990(the
"Allocation Agreement"), between PacifiCorp and the City of Ashland (the "City"). Additionally, this letter
of agreement will address service to customers of the City, which are served through PacifiCorp's facilities.
Background
PacifiCorp and the City entered into the Allocation Agreement to settle litigation regarding valuation of
facilities to be sold to the City for service to customers annexed into the City. The Allocation Agreement
addressed service issues associated with customers residing in the urban growth boundary.
As a result, a number of customers of the City have been served through PacifiCorp's facilities under the
terms of a letter-form energy exchange agreement dated April 1, 1982, modified on August 2, 1985,
modified November 15, 1993 (the "Energy Exchange Agreement").
Interpretation of the Allocation Agreement
The City and PacifiCorp agree to the following interpretation of the Allocation Agreement:
Exhibit "B" to the Allocation Agreement represents the properties identified as the City's urban growth
boundary (the "Service Boundary") at the time the Allocation Agreement was executed.
The Allocation Agreement is to be interpreted ~that customers in the Service Boundary will be served
through the City's primary voltage electrical system, and any service through PacifiCorp's facilities
under the terms of the Energy Exchange Agree~nent would be temporary.
Agreement Regarding Customers
Based on the foregoing interpretation, The City and PacifiCorp hereby agree as follows:
The City will no longer offer to serve customer,,; in the Service Boundary through PacifiCorp facilities.
All new customers of the City will be served only through the City's primary voltage facilities.
The City will allow customers currently served by the City from PacifiCorp's facilities in the Service
Boundary ("PacifiCorp Facility Customers") to become PacifiCorp customers.
· PacifiCorp will contact the PacifiCorp facility customers in order to determine if they are willing to
become PacifiCorp customers. Those willing to change will become PacifiCorp customers.
· If PacifiCorp Facility Customers refuse to become PacifiCorp customers, they will remain customers
of the City.
· Any PacifiCorp Facility Customers that continue to be customers of the City will continue to be served
through PacifiCorp's facilities under the terms of the Energy Exchange Agreement until such time as
such customers are willing to become PacifiCorp customers, or the City has facilities which can serve
such customers.
· The City will provide PacifiCorp with an accurate list of the PacifiCorp Facility Customers.
· PacifiCorp will contact the PacifiCorp Facility Customers within the next 30 days, and coordinate any
transfers of customers with the City.
· This letter agreement and any transfer of customers is subject to the approval of the Oregon Public
Utility Commission (the "OPUC") pursuant to ()RS 758.14, and is a condition precedent to the
effectiveness of this letter agreement or any transfer of customers.
· The parties will use reasonable efforts to acquire approval of the OPUC.
PacifiCorp appreciates your willingness to work together to clarify the Allocation Agreement. The City
and PacifiCorp enjoy an exceptional working relationship in large part because of your efforts. If you
agree to this letter agreement, please execute it below in the space provided. Should you have any
questions, comments or concerns regarding this letter of agreement, please do not hesitate to contact me.
Sincerely,
Monte Mendenhall
Regional Community Manager
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