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Home My WebLink About2006-200 Revision No 4 Exhibit A BPA 00PB-12008 Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208-3621 POWER BUSINESS LINE October 12, 2006 In reply refer to: PSW-6 Mr. Dick Wanderscheid Director of Electric Utilities City of Ashland 90 North Mountain Avenue Ashland, OR 97520 Dear Dick: Enclosed are two signed originals of Revision No.4 to Exhibit A of the City of Ashland's Power Sales Agreement, No. 00PB-12008. This exhibit revision replaces the existing Exhibit A to reflect the entire provision of subsection 4(d), Load Previously Served by Ashland Northwest Power Act Sections 5(b)((1)(A) and/or 5(b)(1)(B) Resources. Our review indicates that a portion of the contract language in subsection 4(d) of Exhibit A was inadvertently omitted. If you agree with this exhibit revision, please have both originals of the enclosed documents signed, return one fully executed original to me by Friday, October 27, 2006, and retain the other for your records. Feel free to call me at (503) 230-3555 if you have any questions. Sincerely, --:j - ~ Tina Ko Account Executive Enc: Exhibit A, Revision No.4 --~ ~~.~T Revision No.4, Exhibit A RATE COMMITMENTS Effective October 1, 2006 Revision No.4 replaces subsection 4(d) to reflect the entire provision. 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. 2. 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 BP A 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 Adjustment 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 ILBl and ILB2 in the section labeled "Schedule PF -02 Priority Firm Power" in the 2002 Power Rate Schedules. 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: OOPB-12008,Asbland lof6 (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. 4. 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 - Effective October 1, 2006 This section is effective October 1, 2006. The terms of subsection 4(b), Environmentally Preferred Power as specified in Revision No.2, remain in effect for the period ending September 30, 2006. All liabilities for both of these sections are preserved until satisfied. (1) Environmentally Preferred Power (EPP) PBL shall sell and Ashland shall purchase for Contract Years 2007 through 2009 (October 1, 2006 through September 30,2009), the EPP amounts in the table below. Ashland shall pay a Green Energy Premium, or its successor, in the amount of 10.50 dollars per megawatthour for such EPP, subject to FERC approval of BPA's 2007 Wholesale Power Rate Schedule including the GRSPs. Contract Year aMW 2007 1 2008 1 2009 1 The Green Energy Premium shall qualify as an eligible expenditure under the Conservation Rate Credit, and will be reflected as a separate line item on Ashland's monthly power bill. OOPB-12008,Ashland Revision No.4, Exhibit A, Rate Commitments 2of6 I I "Environmentally Preferred Power" means power deemed to be generated by renewable resources that are part of BPA's system power from one or all of the following resources: Condon, Foote Creek I, Foote Creek II, Klondike, and Stateline wind projects. PBL may (A) replace or delete resources in this list if such a resource is no longer available to PBL, and (B) add renewable resources to this list that qualify under the Conservation Rate Credit (CRC) and Conservation Acquisition Agreements (CAA) Implementation Manual as it may be amended from time to time. Any such changes shall be noted in the annual report PBL provides to Ashland about its EPP purchases as provided in subsection 4(b)(5)(A) below. (2) EPP for Contract Years 2010 - 2011 (A) For Contract Years 2010 through 2011, BPA shall make available and Ashland may purchase EPP in an amount equal to the average of Ashland's Contract Years 2007 through 2009 EPP purchases. Subject to inventory availability, Ashland may purchase an additional EPP amount up to 30 percent of Ashland's Contract Years 2007 through 2009 average purchase amount described in subsection 4(b)(I). Ashland must provide PBL written notice on or before July 15, 2009, of its election to exercise this right and purchase EPP. Such notice shall specify the amount of EPP Ashland wishes to purchase for each Contract Year. (B) BPA intends to sell such EPP at 10.50 dollars per megawatthour Green Energy Premium, or its successor, except such price may be changed due to a future section 7(i) rate proceeding. If the Green Energy Premium is greater than 10.50 dollars per megawatthour, Ashland may elect not to purchase EPP as provided under this Agreement and, as an alternative, purchase from BPA under a separate agreement Renewable Energy Certificates generated during Fiscal Years 2010 and 2011, priced at 10.50 dollars per megawatthour, in a quantity equal to the average of Ashland's Contract Years 2007 through 2009 EPP purchases. Renewable Energy Certificate (REC) means the non-power attributes associated with the energy generated from a renewable resource. (C) Subject to inventory availability, Ashland may purchase additional EPP, beyond that made available under section 4(b)(2)(A), at the then applicable effective Green Energy Premium or its successor. OOPB-12008, Ashland Revision No.4, Exhibit A, Rate Commitments 3of6 ~_. -------r--r- (3) Availability of EPP Mer Expiration of This Agreement IfBPA offers EPP for purchase after expiration of this Agreement, then Ashland shall have the right to purchase an amount of EPP equal to the average of Ashland's Contract Years 2010 through 2011 EPP purchases. Subject to inventory availability, Ashland may purchase an additional EPP amount up to 30 percent of Ashland's Contract Years 2010 through 2011 average purchase. The price for EPP will be established subject to then applicable effective rates. Ashland must provide PBL written notice on or before July 15, 2011, if Ashland chooses to exercise this right. Such notice shall specify the amount ofEPP Ashland wishes to purchase for each Contract Year. (4) 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 EPP to retail electric power consumers inside Ashland's service territory. "The Condon, Foote Creek I, Foote Creek II, Klondike, and Stateline generating facilities are environmentally preferred sources of electricity production, based on our independent review of environmental impacts. " (5) Disclosure, Reporting, and Adjustments (A) By no later than 60 days after the end of each Contract Year and again no later than 60 days after the end of each calendar year, PBL shall provide Ashland with the following: (i) a statement that discloses information on EPP; (ii) the monthly amounts of EPP that were provided to Ashland by each renewable resource; and (iii) the monthly power amounts generated by each resource. (B) Subject to section 4(b)(5)(A), if the EPP provided to Ashland during a Contract Year is less than the amounts specified in section 4(b)(I), 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. OOPB-12008, Ashland Revision No.4, Exhibit A, Rate Commitments 4of6 I I (C) Ashland may request that PBL provide Ashland with EPP 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)(5)(A)(ii) is received. By no later than 60 days after the end of the Contract Year, to the extent EPP is available, PBL shall provide to Ashland EPP equal to the amount contracted less the amount provided during the Contract Year. If sufficient EPP is not available, PBL shall adjust Ashland's power bill consistent with section 4(b)(5)(B). (D) For Contract Years 2007 through 2009, if the six million dollar cap on renewable claims under the Conservation Rate Credit is reached and results in a pro rata reduction to renewable rate credit claims, and Ashland has claimed this EPP purchase as an eligible renewable energy resource for the renew abIes option under the Conservation Rate Credit, then Ashland may reduce its EPP purchase by a commensurate amount to account for the pro rata reduction. By August 1 prior to the beginning of the Contract Year, BPA shall notify Ashland of the amount of pro rata reduction to the total customer renewable rate credit claims in excess of six million dollars. By August 15 prior to the beginning of the Contract Year, Ashland shall provide PBL with a notice exercising its option to reduce Ashland's EPP purchase subject to the pro rata reduction. (c) 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. (d) 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)(I)(A) resources and 5(b)(I)(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 OOPB-12008,~hland Revision No.4, Exhibit A, Rate Commitments 5of6 I I 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. 5. 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. 6. 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. 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 UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By By <--J-/C_ Account Executive Name Martha Bennett (print / Type) Name Tina Ko (print / Type) Date / IJ IZt# /0 y Date /6{ f7j(')\:::;;. , (W: \PSW\PM \AE_Ko \AS_Ashland \PSC_2000_PF _Subscription \AS_12008_ExhA Rev4_20061012_Final.doc) OOPB-12008, Ashland Revision No.4, Exhibit A, Rate Commitments 6of6 ~-