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Home My WebLink About2003-224 Revision No 2 Exhibit A - BPA 00PB-12008Revision No. 2, Exhibit A RATE COMMITMENTS Effective October 1, 2004 This Revision No. 2 reduces the Environmentally Preferred Power (EPP) rate in section 4(b)(1), and the amount due to the Bonneville Environmental Foundation in section 4(b)(2)(B) for Contract Years 2004 through 2006. 1. DEFINITIONS (a) "5-Year Rates" means the Lowest PF Rates established in the 2002 Wholesale Power Rate Case for Contract Years 2002 through 2006. (b) "Lowest PF Rates" means the lowest applicable cost-based power rates provided under the applicable PF rate schedule as applied to Ashland's Contracted Power purchases under this Agreement. The Lowest PF Rates shall be selected by Ashland from the PF rates that are available and from which the Parties agree Ashland is eligible to purchase under at the time Ashland makes its selection as specified in this exhibit. o PURCHASE DURATION Ashland shall purchase all of the power provided in section 4 of the body of this Agreement for the entire term of this Agreement. 3. PRIORITY FIRM POWER RATE TREATMENT (a) Right to Lowest PF Rates Ashland is contractually guaranteed through September 30, 2011, the Lowest PF Rates established in a successor BPA power rates proceeding for its PF Contracted Power purchases under this Agreement. This section shall not be construed to waive, alter, or amend any right that Ashland may have under applicable statutes. (b) Revisions to Priority Firm Power Rates BPA agrees that the 5-Year Rates available to Ashland consistent with this exhibit shall not be subject to revision during their respective terms, except for the application of a Cost Recovery Adjustment Clause or a Targeted Adjust~nent Charge as provided in the PF applicable rates schedules and GRSPs and this Agreement. (c) 5-Year Rates Treatment All Contracted Power purchases provided under section 4 of the body of this Agreement are subject to the 5-Year Rates. The monthly energy rates for Contracted Power are specified in sections II.B1 and II.B2 in the section labeled "Schedule PF-02 Priority Firm Power" in the 2002 Power Rate Schedules. 00PB-12008, Ashland I of 7 Ashland must select a follow-on rate period and associated rates from those offered by BPA, and notify PBL of its selection, by the later of: (1) six months prior to the expiration of the 5-Year Rates; or (2) thirty (30) days after the date BPA's initial proposal for successor rates is published. Otherwise the follow-on rate period and associated rates shall be the shortest rate period and associated rates that are applicable to Ashland. (d) Cost-Based Indexed PF Rate and Flexible PF Rate Option None. SPECIAL PF LOAD TREATMENT (a) Annexed Loads Ashland may make a written request for service to Annexed Loads, including a planned date for such service. Annexed Load amounts that were served by PBL under section 5(b) of the Northwest Power Act immediately prior to becoming an Annexed Load will be provided service under rates, terms, and conditions that, within the constraints of BPA's applicable policies, are as comparable as possible to what such Annexed Load would have received if the load had not become an Annexed Load. The Parties shall revise this exhibit within 180 days of the request, to establish the rates, terms and conditions for the requested service and to include monthly HLH and LLH MWs in a table below. The table shall identify whether the amounts in the table are deemed to be actual for billing purposes or whether the table is an estimate with bills based on metered amounts. (b) Environmentally Preferred Power (1) Environmentally Preferred Power PBL shall sell and Ashland shall purchase during Contract Years 2002 through 2006 the Environmentally Preferred Power established below. The Green Energy Premium that Ashland shall pay PBL for such power is 4.20 dollars for CY 2002 and 2003, and 5.25 dollars per MWh for CY 2004 through 2006. The entire amount of this Green Energy Premium shall qualify as an eligible expenditure under the Conservation and Renewables Discount. "Environmentally Preferred Power" means power deemed to be generated by generating resources that are determined to have environmental benefits relative to BPA system power. For purposes of this Agreement Environmentally Preferred Power is deemed to be generated from the following resources: (A) Idaho Falls Hydro Project; (B) Packwood Hydro Project; and (C) Foote Creek Wind Project. PBL may, at any time, add resources to this list that qualify as Environmentally Preferred Power. PBL may also replace or delete resources in this list if a resource that is included in the list is no longer available to PBL. 00PB-12008, Ashland Revision No. 2, Exhibit A, Rate Commitments 2 of 7 Any such changes shall be noted in the annual report PBL provides Ashland about its Environmentally Preferred Power purchase. Oct I Nov I Dec [ Jan Feb I Mar I Apr I Mayl Jun I Jul I Aug I Sept Contract Year (MWh) 2002 745 720 744 744 672 744 719 744 720 744 744 720 2003 745 720 744 744 672 744 719 744 720 744 744 720 2004 745 720 744 744 672 744 719 744 720 744 744 720 2005 745 720 744 744 672 744 719 744 720 744 744 720 2006 745 720 744 744 672 744 719 744 720 744 744 720 (2) Northwest Public Interest Groups Endorsement The resources listed in section 4(b)(1) are endorsed by the Natural Resources Defense Council, Northwest Energy Coalition, and Renewable Northwest Project (Northwest Public Interest Groups) as being an environmentally preferred source of electricity generation for electricity products. Ashland may only use the following endorsement from the Northwest Public Interest Groups to advertise, market, and promote Environmentally Preferred Power to retail electric power consumers inside Ashland's service territory: "The Idaho Falls Project; Packwood Hydro Project; and the Foote Creek Wind Project generating facilities are environmentally preferred sources of electricity production, based on our independent review of environmental i~npacts." (B) Ashland agrees to make an additional payment after the end of each Contract Year to the Bonneville Environmental Foundation in exchange for the right to use the Northwest Public Interest Groups endorsement. The amount of the payment shall equal the total MWh of Environmentally Preferred Power provided during the Contract Year multiplied by 6.30 dollars for CY 2002 and 2003, and by 5.25 dollars per MWh for CY 2004 through 2006. Payment is due by no later than 20 days after Ashland receives the notice identified in section 4(b)(3)(A). Such payments to the Bonneville Environmental Foundation qualify as eligible expenditures for the Conservation and Renewables Discount. The payment shall be made by wire transfer to the following account: 00PB- 12008, Ashland Revision No. 2, Exhibit A, Rate Commitments 3 of 7 (3) Account Name: Tax ID Number: Bank Name: Account Number: ABA Routing: Bonneville Environmental Foundation 93-1248274 Bank of the Northwest 600 Pioneer Tower 888 SW. Fifth Avenue Portland, OR 97204 O108002777 123006680 Disclosure, Reporting, and Adjustments For the period October 1, 2001 through September 30, 2003, by no later than 30 days after the end of Contract Year 2003 PBL shall provide Ashland with the following: (i) a statement that discloses information on Environmentally Preferred Power; and (ii) a notice that identifies the following for the period October 1, 2001 through September 30, 2003: the actual monthly amounts of Environmentally Preferred Power that was provided to Ashland by each resource; the total actual monthly power amounts generated by each resource; and the total period October 1, 2001 through September 30, 2003 sales from each resource. (B) For the period October 1, 2001 through September 30, 2003, subject to section 4(b)(3)(C), if the Environmentally Preferred Power provided to Ashland during the period October 1, 2001 through September 30, 2003 is less than the amounts specified in section 4(b)(1), the difference shall be determined to have been served with Contracted Power under the terms of this Agreement. PBL shall adjust Ashland's power bill after the the period October 1, 2001 through September 30, 2003 to account for such difference once the power amounts provided by the resources during the period October 1, 2001 through September 30, 2003 are known. (c) For the period October 1, 2001 through September 30, 2003, Ashland may request that PBL provide Ashland with Environmentally Preferred Power contracted for during the period October 1, 2001 through September 30, 2003 that was not provided. Ashland must notify PBL of such request by no later than two weeks after the notification specified in section 4(b)(3)(A)(ii) is received. By no later than 60 days after September 30, 2003, if sufficient Environmentally Preferred Power is available, PBL shall provide to Ashland, Environmentally Preferred Power equal to the amount contracted for during the period October 1, 2001 through September 30, 2003 less the amount provided. If sufficient 00PB-12008, Ashland Revision No. 2, Exhibit A, Rate Commitments 4 of 7 (c) Environmentally Preferred Power is not available, PBL shall adjust Ashland's power bill consistent with section 4(b)(3)(B). (D) Beginning with C¥ 2004, by no later than 30 days after the end of each Contract Year, PBL shall provide Ashland with the following: (i) a statement that discloses information on Environmentally Preferred Power; and (ii) a notice that identifies the following for each Contract Year: the actual monthly amounts of Environmentally Preferred Power that was provided to Ashland by each resource; the total actual monthly power amounts generated by each resource; and the total annual sales from each resource. (E) Beginning with CY 2004, subject to section 4(b)(3)(F), if the Environmentally Preferred Power provided to Ashland during a Contract Year is less than the amounts specified in section 4(b)(1), the difference shall be determined to have been served with Contracted Power under the terms of this Agreement. PBL shall adjust Ashland's power bill after the end of each Contract Year to account for such difference once the power amounts provided by the resources during the Contract Year are known. (F) Beginning with CY 2004, Ashland may request that PBL provide Ashland with Environmentally Preferred Power contracted for during a Contract Year that was not provided. Ashland must notify PBL of such request by no later than two weeks after the notification specified in section 4(b)(3)(D)(ii) is received. By no later than 60 days after the end of the Contract Year, if sufficient Environmentally Preferred Power is available, PBL shall provide to Ashland Environmentally Preferred Power equal to the amount contracted for during the Contract Year less the amount provided. If sufficient Environmentally Preferred Power is not available, PBL shall adjust Ashland's power bill consistent with section 4(b)(3)(E). Returned Retail Load Ashland may request service from PBL to serve Returned Retail Load. The Parties shall revise this exhibit to establish monthly HLH and LLH MWs for such service in a table below. The table shall identify whether the amounts in the table are deemed to be actual for billing purposes or whether the table is an estimate with bills based on metered amounts. PBL shall provide service within 180 days of the request at rates BPA has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract Year 2006. Rate treatment after Contract Year 2006 shall be determined in a future rate case. 00PB-12008, Ashland Revision No. 2, Exhibit A, Rate Commitments 5 of 7 o Load Previously Served By Ashland Northwest Power Act Sections 5(b)(1)(A) and/or 5(b)(1)(B) Resources Ashland may request service from PBL to serve load that would otherwise be served by Ashland's Northwest Power Act sections 5(b)(1)(A) resources and 5(b)(1)(B) generating resources and long-term contract resources that are removed consistent with section 4(d) of Exhibit C, Net Requirements. The Parties shall revise this exhibit to establish monthly HLH and LLH MWs for such service in a table below. The amounts are deemed to be actual for billing purposes. PBL shall provide service within 180 days of the request at rates BPA has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract Year 2006. Rate treatment after Contract Year 2006 shall be determined in a future rate c~se. NEW LARGE SINGLE LOADS (a) Ashland has no existing NLSL. (b) Ashland may request service to a NLSL. The Parties shall revise this exhibit to establish estimated monthly HLH and LLH MWh for such service in a table below. If Ashland chooses to serve the NLSL with a resource the resource shall be added consistent with section 4(f) of Exhibit C, Net Requirements. The total amount subtracted from Total Retail Load in section 4 of the body of this Agreement shall be the metered amount of the load. The same metered amount shall be used by PBL for billing purposes when PBL serves the entire NLSL. REVISIONS If this exhibit is inconsistent with BPA's 2002 PF Power Rate Schedule as finally approved by FERC, the Parties shall make a good faith effort to amend this exhibit so that it is consistent. 00PB-12008, Ashland Revision No. 2, Exhibit A, Rate Commitments 6 of 7 The Parties shall update this exhibit to reflect necessary changes to establish new rate choices consistent with the applicable future rate cases. This shall be done by mutual agreement except as allowed in section 3 of this exhibit. ACCEPTED: CITY OF ASHLAND By ~ /~ City ~kdm~ini~str ator Name Gino Grimaldi Date (Print / Type) UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By Name ~iCu~Ujn. t~e ~tive (Print/Type) Date Content review by ...... on ---F-..-~. Legal review by ~ on I?L~LL~ Ic) ''~ 00PB- i2008, Ashland Revision No. 2, Exhibit A, Rate Commitments 7 of 7