HomeMy WebLinkAbout2008-204 Contract - BPA 09PB-13002
Contract No. 09PB-13002
POWER SALES AGREEMENT
executed by the
BONNEVILLE POWER ADMINISTRATION
and
THE CITY OF ASHLAND, OREGON
Table of Contents
Section
1.
2.
3.
4.
5.
6.
7.
8.
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11.
12.
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15.
16.
17.
18.
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20.
21.
22.
23.
Term .................................................................................................................
Defini ti ons ........................................ ..............................................................
Load Following Power Purchase Obligation ...........................................
This Section Intentionally ~ft Blank.......................................................
This Section Intentionally ~ft Blank.......................................................
Tiered Rate Methodology .............................................................................
8.1
8.2
8.3
8.4
8.5
Elections to Purchase Power Priced at Tier 2 Rates .............................
Priority Firm Power (PF) Rates ........................................................
New Resource Firm Power (NR) Rate ..............................................
Firm Power Products and Services (FPS) Rate..............................
Addi ti onal Charges............................................. ..................................
Resource Support Services (RSS) .....................................................
Tier 2 Remarketing and Resource Removal............................................
Right to Change Purchase Obligation ......................................................
Billing Credits and Residential Exchange ...............................................
Scheduling .................................................................... ..................................
Delivery ................................................................................................... ........
Metering ....................................................................................... ...................
Billing and P aymen t .....................................................................................
Inform.ation Exchange and Confidentiality.............................................
Conservation and Renewables ...................................................................
Resource Adequacy ............................. ................................ ........ ..................
Notices and Contact Information...............................................................
Statu tory Provisions ..................................................... ................................
23.1 Retail Rate Schedules ..........................................................................
23.2
23.3
23.4
23.5
23.6
23.7
Insufficiency and Alloca tions.............................................................
New Large Single Loads and CF/CTs................................................
Priority of Pacific Northwest Customers ........................................
Prohibi ti on on Resale ....................................... ............................. ......
Use of Regional Resources..................................................................
BP A Appropriations Refinancing......................................................
24. Standard Provisions ..................................................................................... 53
24.1 .Amendments .......................................................... ................................ 53
24.2 Entire Agreement and Order of Precedence................................... 53
24.3 Assign.m en t ........................................................ .............. ....................... 53
24.4 No Third-Party Beneficiaries............................................................. 53
24.5 W ai vers.......................................................................... ... ....................... 53
24.6 BP A P olicies........................................................................................... 53
24.7 Rate Covenant and Payment Assurance.......................................... 54
25. Termination .................................................................................................... 54
26. Sign.a tures ....................................................................................................... 55
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Exhibit F
Exhibit G
Exhibit H
Net Requirements and Resources
High Water Marks and Contract Demand Quantities
Purchase Obligations
Additional Products and Special Provisions
Metering
Transmission Scheduling Service
Principles of Non-Federal Transfer Service
Renewable Energy Certificates and Carbon Attributes
This POWER SALES AGREEMENT (Agreement) is executed by the UNITED
STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE
POWER ADMINISTRATION (BPA), and THE CITY OF ASHLAND, OREGON (Ashland),
hereinafter individually referred to as "Party" and collectively referred to as the "Parties".
Ashland is a municipal corporation, organized and authorized under the laws of the State of
Oregon, to purchase and distribute electric power to serve retail consumers from its
distribution system within its service area.
RECITALS
Ashland's current power sales agreement (Contract No. 00PB-12008) continues
through September 30,2011, and will be replaced by this Agreement on October 1, 2011.
BP A has functionally separated its organization in order to separate the
administration and decision-making activities of BP A's power and transmission functions.
References in this Agreement to Power Services or Transmission Services are solely for the
purpose of clarifying which BP A function is responsible for administrative activities that
are jointly performed.
BP A is authorized to market federal power to qualified entities that are eligible to
purchase such power. Under section 5(b)(1) of the Northwest Power Act, BPA is obligated
to offer a power sales agreement to eligible customers for the sale and purchase of federal
power to serve their retail consumer load in the Region that is not met by the customer's
use of its non-federal resources.
BP A has proposed the adoption of a tiered rate pricing methodology for federal
power sold to meet BPA's obligations under section 5(b) of the Northwest Power Act to
eligible customers, in order to provide more efficient pricing signals and encourage the
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timely development of regional power resource infrastructure to meet regional consumer
loads under this Agreement.
To effect that purpose, in this Agreement BP A establishes a Contract High Water
Mark for Ashland that will define the amounts of power Ashland may purchase from BP A
at the Tier 1 Rate, as defined in BPA's Tiered Rate Methodology.
The Parties agree:
1. TERM
This Agreement takes effect on the date signed by the Parties and expires on
September 30,2028. Performance by BPA and Ashland shall commence on
October 1, 2011, with the exception of those actions required prior to that date that
are included in:
(1) sections 3.3 through 3.7 of section 3, Power Purchase Obligation;
(2) section 9, Elections to Purchase Power Priced at Tier 2 Rates;
(3) section 14, Delivery;
(4) section 17, Information Exchange and Confidentiality;
(5) section 18, Conservation and Renewables;
(6) section 19, Resource Adequacy;
(7) section 22, Governing Law and Dispute Resolution;
(8) section 25, Termination;
(9) Exhibit A, Net Requirements and Resources;
(10) Exhibit B, High Water Marks and Contract Demand Quantities;
(11) Exhibit C, Purchase Obligations;
(12) section 2 of Exhibit D, Additional Products and Special Provisions; and
(13) Exhibit G, Principles of Non-Federal Transfer Service.
Until October 1, 2011, section 22, Governing Law and Dispute Resolution will only
apply to the extent there is a dispute regarding actions required in the above
referenced sections and exhibits.
2. DEFINITIONS
Capitalized terms below shall have the meaning stated. Capitalized terms that are
not listed below are either defined within the section or exhibit in which the term is
used, or if not so defined, shall have the meaning stated in BP A's applicable
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Wholesale Power Rate Schedules, including the General Rate Schedule Provisions
(GRSPs). Definitions in bold indicate terms that are defined in the TRM and that
the Parties agree should conform to the TRM as it may be revised. The Parties
agree that if such definitions are revised pursuant to the TRM, they shall promptly
amend this Agreement to incorporate such revised definitions from the TRM, to the
extent they are applicable.
2.1 "5(b)/9(c) Policy" means BPA's Policy on Determining Net Requirements of
Pacific Northwest Utility Customers Under sections 5(b)(1) and 9(c) of the
Northwest Power Act issued May 23,2000, and its revisions or successors.
2.2 "7(i) Process" means a public process conducted by BPA to establish rates
for the sale of power and other products pursuant to section 7(i) of the
Northwest Power Act or its successor.
2.3 "Above-RHWM Load" means forecast annual Total Retail Load, less
Existing Resources, NLSLs, and Ashland's RHWM, as determined in the
RHWM Process, except for the FY 2012-2013 Rate Period, when Above-
RHWM Load will be determined differently, as specified in the TRM.
2.4 "Annexed Load" means existing load, distribution system, or service territory
Ashland acquires after the Effective Date from another utility, by means of
annexation, merger, purchase, trade, or other acquisition of rights, the
acquisition of which has been authorized by a final state, regulatory or court
action. The Annexed Load must be served from distribution facilities that
are owned or acquired by Ashland.
2.5 "Average Megawatts" or "aMW" means the amount of electric energy in
megawatt-hours (MWh) during a specified period of time divided by the
number of hours in such period.
2.6 "Balancing Authority" means the responsible entity that integrates
resource plans ahead of time, maintains load-interchange-generation balance
within a Balancing Authority Area, and supports interconnection frequency
in real time.
2.7 "Balancing Authority Area" means the collection of generation,
transmission, and loads within the metered boundaries of the Balancing
Authority.
2.8 "Business Days" means every Monday through Friday except Federal
holidays.
2.9 "Carbon Credit" shall have the meaning as defined in section 1 of Exhibit H.
2.10 "CHWM Contract" means the power sales contract between a customer and
BPA that contains a Contract High Water Mark (CHWM), and under which
the customer purchases power from BP A at rates established by BP A in
accordance with the TRM.
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2.11 "Consumer-Owned Resource" means a Generating Resource connected to
Ashland's distribution system that is owned by a retail consumer, has a
nameplate capability greater than 200 kilowatts, is operated or applied to
load, and is not operated occasionally or intermittently as a back-up energy
source at times of maintenance or forced outage. Consumer-Owned Resource
does not include a resource where the owner of the resource is a retail
consumer that exists solely for the purpose of selling wholesale power and for
which Ashland only provides incidental service to provide energy for local use
at the retail consumer's generating plant for lighting, heat and the operation
of auxiliary equipment.
2.12 "Contract Demand Quantity" or "CDQ" shall have the meaning as defined in
the TRM, the definition of which is recited in section 6.6.1.
2.13 "Contract High Water Mark" or "CHWM" shall have the meaning as defined
in the TRM, the definition of which is recited in section 6.6.1.
2.14 "Contract Resource" means any source or amount of electric power that
Ashland acquires from an identified or unidentified electricity-producing unit
or units by contract purchase, and for which the amount received by Ashland
does not depend on the actual production from an identified Generating
Resource.
2.15 "Dedicated Resource" means a Specified Resource or an Unspecified Resource
Amount listed in Exhibit A that Ashland is required by statute to provide or
obligates itself to provide under this Agreement for use to serve its Total
Retail Load.
2.16 "Diurnal" means the division of hours within a month between Heavy Load
Hours (HLH) and Light Load Hours (LLH).
2.17 "Diurnal Flattening Service" or "DFS" means a service that makes a resource
that is variable or intermittent, or that portion of such resource that is
variable or intermittent, equivalent to a resource that is flat within each of
the 24 HLH and LLH periods of a year.
2.18 "Due Date" shall have the meaning as described in section 16.2.
2.19 "Effective Date" means the date on which this Agreement has been signed by
Ashland and BPA.
2.20 "Eligible Annexed Load" shall have the meaning as defined in section 3.5.6.
2.21 "Environmental Attribute" shall have the meaning as defined in section 1 of
Exhibit H.
2.22 "Environmentally Preferred Power RECS" or "EPP RECs" shall have the
meaning as defined in section 1 of Exhibit H.
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2.23 "Existing Resource" means a Specified Resource listed in section 2 of
Exhibit A that Ashland was obligated by contract or statute to use to serve
Ashland's Total Retail Load prior to October 1, 2006.
2.24 "FERC" means the Federal Energy Regulatory Commission, or its successor.
2.25 "Firm Requirements Power" means federal power that BP A sells under this
Agreement and makes continuously available to Ashland to meet BP A's
obligations to Ashland under section 5(b) of the Northwest Power Act.
2.26 "Fiscal Year" or"FY" means the period beginning each October 1 and ending
the following September 30.
2.27 "Flat Annual Shape" means a distribution of energy having the same Average
Megawatt value of energy in each month of the year.
2.28 "Flat Within-Month Shape" means a distribution of energy having the same
Average Megawatt value of energy in each Diurnal period of the month.
2.29 "Forced Outage Reserve Service" or "FORS" means a service that
provides an agreed-to amount of capacity and energy to load during the
forced outages of a resource.
2.30 "Forecast Year" means the Fiscal Year ending one full year prior to the
commencement of a Rate Period.
2.31 "Generating Resource" means any source or amount of electric power from an
identified electricity-producing unit, and for which the amount of power
received by Ashland or Ashland's retail consumer is determined by the power
produced from such identified electricity-producing unit. Such unit may be
owned by Ashland or Ashland's retail consumer in whole or in part, or all or
any part of the output from such unit may be owned for a defined period by
contract.
2.32 "Heavy Load Hours (HLH)" means hours ending 0700 through 2200 hours
Pacific Prevailing Time (PPT), Monday through Saturday, excluding holidays
as designated by the North American Electric Reliability Corporation
(NERC). BPA may update this definition as necessary to conform to
standards of the Western Electricity Coordinating Council (WECC), North
American Energy Standards Board (NAESB), or NERC.
2.33 "HLH Diurnal Shape" means a distribution of energy between the Diurnal
periods in which more megawatt-hours per hour are applied in the Heavy
Load Hour (HLH) periods than megawatt-hours per hour applied in the Light
Load Hour (LLH) periods. Such distributions are determined by Ashland
consistent with section 8.2 of Exhibit A.
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2.34 "Integrated Network Segment" shall have the meaning as defined in
section 14.1.
2.35 "Interchange Points" means the points where Balancing Authority Areas
interconnect and at which the interchange of energy between Balancing
Authority Areas is monitored and measured.
2.36 "Issue Date" shall have the meaning as described in section 16.1.
2.37 "Light Load Hours (LLH)" means: (1) hours ending 0100 through 0600 and
2300 through 2400 hours PPI', Monday through Saturday, and (2) all hours
on Sundays and holidays as designated by NERC. BP A may update this
definition as necessary to conform to standards of the WECC, NAESB, or
NERC.
2.38 "Net Requirement" means the amount of federal power that Ashland is
entitled to purchase from BPA to serve its Total Retail Load minus amounts
of Ashland's Dedicated Resources shown in Exhibit A, as determined
consistent with section 5(b)(1) of the Northwest Power Act.
2.39 "New Large Single Load" or "NLSL" has the meaning specified in
section 3(13) of the Northwest Power Act and in BPA's NLSL policy.
2.40 "New Resource" means (1) a Specified Resource listed in section 2 of
Exhibit A that Ashland was or is first obligated by contract, or was or is
obligated by statute, to use to serve Ashland's Total Retail Load after
September 30, 2006, and (2) any Unspecified Resource Amounts listed in
Exhibit A.
2.41 "Northwest Power Act" means the Pacific Northwest Electric Power Planning
and Conservation Act, 16 U.S.C. ~839, Public Law No. 96-501, as amended.
2.42 "Notice Deadlines" means the dates established in section 9.1.1.
2.43 "Onsite Consumer Load" means the electric load of an identified retail
consumer of Ashland that is directly interconnected or electrically
interconnected on the same portion of Ashland's distribution system with a
Consumer-Owned Resource of that same identified retail consumer such that
no transmission schedule is needed to deliver the generation from the
Consumer-Owned Resource to the consumer load.
2.44 "Operating Year" means the period, beginning each August 1 and ending the
following July 31, that is designated under the Pacific Northwest
Coordination Agreement (PNCA) for resource planning and operational
purposes.
2.45 "Pacific Northwest Coordination Agreement" or "PNCA" means Contract
No. 97PB-10130, as such agreement may be amended or replaced, among
BPA, the U.S. Army Corps of Engineers, the Bureau of Reclamation, and
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certain generating utilities in the Region that sets forth the terms and
conditions for the coordinated operation of generating resources in the
Region.
2.46 "PNCA Update Shape" means the monthly shape of a Specified Resource that
is a hydro resource that will be revised each Fiscal Year based on the
monthly amounts for such resource that are in the final PNCA planning
hydro- regulation study published for the Operating Year that began on the
August 1 immediately preceding the Fiscal Year. If the final study is not
published 30 days prior to the beginning of the Fiscal Year, then the monthly
shape of Ashland's Specified Resource that is a hydro resource will be revised
based on the monthly amounts for such resource that are in the modified
PNCA study published for the same Operating Year. The August and
September amounts published for the Operating Year will be used as the
August and September amounts for the Fiscal Year.
2.47 "Point of Delivery" or "POD" means the point where power is transferred
from a transmission provider to Ashland.
2.48 "Point of Metering" or "POM" means the point at which power is measured.
2.49 "Power Services" means the organization, or its successor organization,
within BP A that is responsible for the management and sale of Federal
power.
2.50 "Primary Points of Receipt" shall have the meaning as defined in section 14.1.
2.51 "Purchase Periods" means the time periods established in section 9.1.1.
2.52 "Rate Case Year" means the Fiscal Year ending prior to the commencement
of a Rate Period. The Rate Case Year immediately follows the Forecast Year
and is the year in which the 7(i) Process for the next Rate Period is
conducted.
2.53 "Rate Period" means the period of time during which a specific set of rates
established by BP A pursuant to the TRM is intended to remain in effect.
2.54 "Rate Period High Water Mark" or "RHWM" shall have the meaning as
defined in the TRM, the definition of which is recited in section 6.6.1.
2.55 "Region" means the Pacific Northwest as defined in section 3(14) of the
Northwest Power Act.
2.56 "Renewable Energy Certificates" or "RECs" shall have the meaning as
defined in section 1 of Exhibit H.
2.57 "Resource Diurnal Shape" means a distribution of energy within each
Diurnal period that a Generating Resource is expected to produce, as agreed
to by the Parties in accordance with section 3.4.1(1).
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2.58 "Resource Monthly Shape" means a distribution of energy within each month
that a Generating Resource is expected to produce, as agreed to by the
Parties in accordance with section 3.4.1(1).
2.59 "Resource Support Services" or "RSS" means the Diurnal Flattening Service,
Forced Outage Reserve Service, Transmission Curtailment Management
Service, and Secondary Crediting Service. BP A may in the future include
other related services that are priced in the applicable 7(i) Process.
2.60 "Scheduling Points of Receipt" shall have the meaning as defined in
section 14.1.
2.61 "Secondary Crediting Service" or "SCS" means the optional service
offered by BP A that provides a monetary credit for the secondary output from
an Existing Resource that has a firm critical energy component and a
secondary energy component.
2.62 "Small Non-Dispatchable Resource" means a Specified Resource connected to
Ashland's distribution system the output of which cannot be shifted between
Diurnal.periods or days by the resource owner or operator. Such resource is
further defined as:
(1) an Existing Resource that has a nameplate capability less than or
equal to three megawatts, or
(2) a New Resource that has a nameplate capability less than or equal to
one megawatt.
2.63 "Specified Resource" means a Generating Resource or Contract Resource that
has a nameplate capability or maximum hourly purchase amount greater
than 200 kilowatts, that Ashland is required by statute or has agreed to use
to serve its Total Retail Load. Each such resource is identified as a specific
Generating Resource or as a specific Contract Resource with identified
parties and is listed in sections 2 and 4 of Exhibit A.
2.64 "Statement of Intent" shall have the meaning as defined in section 2.3 of
Exhibit C.
2.65 "Submitted Schedule" shall have the meaning as defined in section 3.7.
2.66 "Super Peak Credit" means a reduction in Ashland's demand billing
determinants equal to the amount of additional energy provided by a
Dedicated Resource, during a Super Peak Period, over the amount of energy
that would have been provided by an equivalent amount of energy delivered
flat across the monthly HLH period.
2.67 "Super Peak Period" means the hours BPA defines for each Rate Period in
accordance with section 3.4.4.1 into which Ashland must reshape its HLH
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energy from its Dedicated Resources to receive a Super Peak Credit. The
hours BP A establishes for the Super Peak Period may vary by month and will
be either two 3-hour periods each day or a single 6-hour period each day.
2.68 "Surplus Firm Power" means firm power that is in excess of BP A's
obligations, including those incurred under sections 5(b), 5(c), and 5(d) of the
Northwest Power Act, as available.
2.69 "Third Party Transmission Provider" means a transmission provider other
than BP A that delivers power to Ashland.
2.70 "Tier 1 Rate" means the Tier 1 Rate as defined in the TRM.
2.71 "Tier 1 RECs" shall have the meaning as defined in section 1 of Exhibit H.
2.72 "Tier 2 Cost Pools" means all of the Cost Pools to which Tier 2 Costs (as
defined in the TRM) will be allocated by BPA.
2.73 "Tier 2 Load Growth Rate" means a Tier 2 Rate at which Load Following
customers may elect to purchase Firm Requirements Power in accordance
with section 2.2 of Exhibit C.
2.74 "Tier 2 Rate" means the Tier 2 Rate as defined in the TRM.
2.75 "Tier 2 RECs" shall have the meaning as defined in section 1 of Exhibit H.
2.76 "Tier 2 Short-Term Rate" means a Tier 2 Rate at which customers may elect
to purchase Firm Requirements Power in accordance with section 2.4 of
Exhibit C.
2.77 "Tier 2 Vintage Rate" means a Tier 2 Rate at which customers may elect to
purchase Firm Requirements Power in accordance with section 2.3 of
Exhibit C.
2.78 "Tiered Rate Methodology" or "TRM" means the long-term methodology
established by BPA in a Northwest Power Act section 7(i) hearing as the
Tiered Rate Methodology to implement the Policy (as defined in the TRM)
construct of tiering BPA's Priority Firm Power rates for serving load under
CHWM Contracts.
2.79 "Total Retail Load" means all retail electric power consumption, including
electric system losses, within Ashland's electrical system excluding:
(1) those loads BP A and Ashland have agreed are nonfirm or
interruptible loads,
(2) transfer loads of other utilities served by Ashland, and
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(3) any loads not on Ashland's electrical system or not within Ashland's
service territory, unless specifically agreed to by BPA.
2.80 "Total Retail Load Monthly Shape" means the distribution among months as
listed in the table in section 8.1 of Exhibit A. The FY 2010 Total Retail Load
Monthly Shape from the table will apply for the FY 2012-2014 and FY 2015-
2019 Purchase Periods; the FY 2015 Total Retail Load Monthly Shape will
apply for the FY 2020-FY 2024 Purchase Period; and the FY 2020 Total
Retail Load Monthly Shape will apply for the FY 2025-2028 Purchase Period.
2.81 "Transfer Service" means the transmission, distribution and other services
provided by a Third Party Transmission Provider to deliver electric energy
and capacity over its transmission system.
2.82 "Transmission Curtailment Management Service" or "TCMS" means the
service Power Services may provide to back up a qualifying resource when a
transmission curtailment occurs between such resource and the customer
load.
2.83 "Transmission Services" means the organization, or its successor
organization, within BP A that is responsible for the management and sale of
transmission service on the Federal Columbia River Transmission System.
2.84 "Uncontrollable Force" shall have the meaning as defined in section 21.
2.85 "Unspecified Resource Amount" means an amount of firm energy, listed in
sections 3 and 4 of Exhibit A, that Ashland has agreed to supply and use to
serve its Total Retail Load. Such amount is not attributed to a Specified
Resource.
3. LOAD FOLLOWING POWER PURCHASE OBLIGATION
3.1 Purchase Obligation
From October 1, 2011, and continuing through September 30,2028, BPA
shall sell and make available, and Ashland shall purchase, Firm
Requirements Power in hourly amounts equal to Ashland's hourly Total
Retail Load minus the hourly firm energy from each of Ashland's Dedicated
Resources as listed in Exhibit A. Ashland shall determine the hourly firm
energy from each of its Dedicated Resources pursuant to section 3.3. Such
amounts of energy are subject to change pursuant to section 3.5 and
section 10.
3.2 Take or Pay
Ashland shall pay for the amount of Firm Requirements Power it has
committed to purchase under section 3.1, and that BP A makes available at
the rates BPA establishes pursuant to the TRM, as applicable to such power,
whether or not Ashland took actual delivery of such power.
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3.3 Application of Dedicated Resources
Ashland agrees to serve a portion of its Total Retail Load with the Dedicated
Resources listed in Exhibit A as follows:
(1) Specified Resources that are Generating Resources, except Small,
Non-Dispatchable Resources, shall be listed in section 2.1 of Exhibit A,
(2) Specified Resources that are Contract Resources shall be listed in
section 2.2 of Exhibit A,
(3) Specified Resources that are Small Non-Dispatchable Resources shall
be listed in section 2.3 of Exhibit A, and
(4) Unspecified Resource Amounts shall be listed in section 3.1 of
Exhibit A.
Ashland shall use its Dedicated Resources to serve its Total Retail Load, and
specify amounts of its Dedicated Resources in the tables shown in Exhibit A,
as stated below for each specific resource and type. BP A shall use the
amounts listed in Exhibit A in determining Ashland's Net Requirement. The
amounts listed are not intended to govern how Ashland shall operate its
Specified Resources, except for those resources that are Small N on-
Dispatchable Resources and those resources supported with DFS or SCS from
BPA.
3.3.1 Specified Resources
3.3.1.1 Application of Specified Resources
Ashland shall apply the output of all Specified Resources,
listed in section 2 of Exhibit A, to Ashland's Total Retail Load
in predefined hourly amounts consistent with section 3.7,
except for Small Non-Dispatchable Resources and Specified
Resources Ashland is supporting with DFS or SCS from BP A.
Ashland shall apply all Specified Resources supported with
DFS or SCS from BPA to Ashland's Total Retail Load
consistent with section 2 of Exhibit D. Ashland shall apply
all of the output as it is generated from its Small N on-
Dispatchable Resources, listed in section 2.3 of Exhibit A, to
Ashland's Total Retail Load.
3.3.1.2 Determining Specified Resource .Amounts
Ashland shall state, for each Specified Resource listed in
section 2 of Exhibit A, firm energy amounts for each Diurnal
period and peak amounts for each month beginning with the
later of the date the resource was dedicated to load or
October 1, 2011, through the earlier of the date the resource
will be permanently removed or September 30, 2028. BP A in
consultation with Ashland shall determine the firm energy
amounts for each Diurnal period and peak amounts for each
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month for each Specified Resource consistent with the
5(b)/9(c) Policy, and using the allowable shapes established in
section 3.4.
3.3.2 Unspecified Resource Amounts
3.3.2.1 Application of Unspecified Resource Amounts
To serve Above- RHWM Load that Ashland commits to meet
with Dedicated Resources in Exhibit C, Ashland shall provide
and use Unspecified Resource Amounts to meet any amounts
not met with its Specified Resources during each Purchase
Period. Ashland shall apply its Unspecified Resource
Amounts, listed in section 3 of Exhibit A, to Ashland's Total
Retail Load in predefined hourly amounts consistent with
section 3.7.
3.3.2.2 Determining Unspecified Resource Amounts
By March 31 of each Rate Case Year, the Parties shall
calculate, and BP A shall fill in the table in section 3.1.2 of
Exhibit A with, Ashland's Unspecified Resource Amounts for
each of the years of the upcoming Rate Period consistent with
Ashland's elections for service to its Above-RHWM Load.
Such Unspecified Resource Amounts shall be calculated using
the monthly and Diurnal shapes listed in section 3.1.1 of
Exhibit A. Upon termination or expiration of this Agreement
any Unspecified Resource Amounts listed in Exhibit A shall
expire, and Ashland shall have no further obligation to apply
Unspecified Resource Amounts.
3.4 Shaping of Dedicated Resources
Ashland's Dedicated Resource amounts shall be shaped as follows:
3.4.1 Initial Monthly and Diurnal Resource Shapes
The amounts for each Dedicated Resource shall be first listed in
Exhibit A with one of the following shapes:
(1)
Generating Resources in the amount of energy within each
month and Diurnal period of a year each resource is expected
to generate output as agreed to by the Parties.
(2)
Contract Resources in equal megawatt amounts for each hour
in a year.
(3)
Small Non-Dispatchable Resources in the amount of energy
within each month and Diurnal period of a year each resource
is expected to generate output as agreed to by the Parties.
(4)
Unspecified Resource Amounts in equal megawatt amounts for
each hour in a year.
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3.4.2 Reshaping Dedicated Resources
By each Notice Deadline Ashland may elect in writing, pursuant to
section 3.4.3, to reshape its amounts of Dedicated Resources listed in
sections 2.1, 2.2, and 3.1 of Exhibit A, except for those Specified
Resources Ashland is supporting with DFS or SCS from BP A, for the
corresponding Purchase Period. After BP A receives such notice from
Ashland for the first Notice Deadline (November 1, 2009), BPA shall,
by March 31, 2011, revise Exhibit A to reflect such written elections.
After BP A receives such written notice from Ashland for any
subsequent Notice Deadline, BP A shall, by the following March 31,
revise Exhibit A to reflect such election.
If Ashland elects the PNCA Update Shape for a hydro resource, then
BP A shall update the shape of such resource annually, in accordance
with such election, to be completed no later than September 15
preceding the start of the applicable Fiscal Year.
3.4.3 Monthly and Diurnal Reshaping Options
Consistent with section 3.4.2, Ashland may elect to reshape one or
more of its Dedicated Resources using the allowable monthly and
Diurnal shapes described below. If Ashland elects to reshape its
Dedicated Resources, then Ashland shall elect both a monthly and a
Diurnal shape for each Dedicated Resource that is reshaped.
3.4.3.1 Generating Resources
For each Generating Resource listed in section 2.1 of
Exhibit A Ashland may elect to apply each resource in any of
the following shapes:
(1) Monthly Shapes: (A) Total Retail Load Monthly
Shape; (B) Resource Monthly Shape; (C) Flat Annual
Shape; or (D) PNCA Update Shape if the resource is a
hydro resource and is designated as a PNCA resource
in section 2.1 of Exhibit A.
(2) Diurnal Shapes: (A) Resource Diurnal Shape; (B) Flat
Within-Month Shape; or (C) HLH Diurnal Shape.
3.4.3.2 Contract Resources
For each Contract Resource listed in section 2.2 of Exhibit A
Ashland may elect to apply each resource in any of the
following shapes:
(1)
Monthly Shapes: (A) Total Retail Load Monthly
Shape; or (B) Flat Annual Shape.
(2)
Diurnal Shapes: (A) Flat Within-Month Shape; or
(B) HLH Diurnal Shape.
09PB-13002, Ashland
14
3.4.3.3 Unspecified Resource Amounts
Ashland may elect to apply its Unspecified Resource
Amounts, listed in section 3.1 of Exhibit A in any of the
following shapes:
(1) Monthly Shapes: (A) Total Retail Load Monthly
Shape; or (B) Flat Annual Shape.
(2) Diurnal shapes: (A) Flat Within-Month Shape; or
(B) HLH Diurnal Shape.
3.4.4 Super Peak Credit
3.4.4.1 Super Peak Period
By September 30 of each Forecast Year BP A shall notify
Ashland in writing of the Super Peak Period for the
upcoming Rate Period.
3.4.4.2 Super Peak Amounts
By October 31 of each Rate Case Year Ashland shall notify
BP A in writing of the monthly megawatt amounts of
additional energy Ashland elects to apply to its Total Retail
Load for the upcoming Rate Period, for which Ashland shall
receive a Super Peak Credit. Ashland shall establish such
amounts from its Dedicated Resources consistent with
section 9 of Exhibit A. After BP A receives such notification
from Ashland BP A shall revise the table in section 9 of
Exhibit A, by March 31 of the same Rate Case Year, to reflect
monthly amounts Ashland submitted to BP A.
3.4.5 Hourly Resource Shape
Ashland's Dedicated Resources listed in sections 2.1, 2.2, and 3.1 of
Exhibit A, except for those Specified Resources Ashland is supporting
with DFS or SCS from BP A, shall be provided in equal megawatt
amounts during all LLH of a month and in equal megawatt amounts
during all HLH ofa month, unless Ashland reshapes its HLH
amounts pursuant to section 3.4.4. If Ashland reshapes its HLH
amounts pursuant to section 3.4.4, then Ashland's Dedicated
Resources shall be provided in (1) equal megawatt amounts during all
LLH of a month, (2) equal megawatt amounts during all HLH of a
month that are not in the Super Peak Period, and (3) equal megawatt
amounts during all HLH of a month that are in the Super Peak
Period. The hourly amounts provided in the Super Peak Period shall
reflect the additional energy amounts listed in section 9 of Exhibit A.
09PB-13002, Ashland 15
~----
3.5 Changes to Dedicated Resources
3.5.1 Specified Resource Additions to Meet Above-RHWM Load
By written notice to BP A, Ashland may elect to add Specified
Resources to section 2 of Exhibit A to meet any obligation Ashland
may have in Exhibit C to serve its Above-RHWM Load with Dedicated
Resources. Subject to the following:
3.5.1.1 By any Notice Deadline, Ashland may elect to add a Specified
Resource to section 2 of Exhibit A with amounts effective at
the start of the corresponding Purchase Period. The
following applies for such Specified Resources:
(1) Ashland shall determine amounts for such Specified
Resources in accordance with section 3.3.1.2.
(2) Ashland may elect to reshape such Specified Resources
in accordance with section 3.4.3 or may elect to
purchase DFS from BP A to support such Specified
Resources.
3.5.1.2 After any Notice Deadline, and if Ashland notifies BPA of its
election in writing by October 31 of a Rate Case Year, then
Ashland may add Specified Resources to section 2 of
Exhibit A with amounts effective at the start of the upcoming
Rate Period. The following apply for such Specified
Resources:
(1) Ashland shall determine amounts for such Specified
Resources in accordance with section 3.3.1.2.
(2) The shape of such resources shall either be in the shape
selected in section 3.1.1 of Exhibit A for any Unspecified
Resource Amounts for the applicable Purchase Period,
or Ashland may purchase DFS from BP A to support the
Specified Resource pursuant to section 2.2 of Exhibit D.
3.5.1.3 BPA shall revise Exhibit A consistent with Ashland's
elections by March 31 following Ashland's elections under
sections 3.5.1.1 or 3.5.1.2.
3.5.2 Resource Additions for a BPA Insufficiency Notice
IfBPA provides Ashland a notice of insufficiency and reduces its
purchase obligation, in accordance with section 23.2, then Ashland
may add Dedicated Resources to replace amounts of Firm
Requirements Power BP A will not be providing due to insufficiency.
The Parties shall revise Exhibit A to reflect such additions.
09PB-13002, Ashland 16
3.5.3 Decrements for 9(c) Export
If BP A determines, in accordance with section 23.6, that an export of a
Specified Resource listed in section 2 of Exhibit A requires a reduction
in the amount of Firm Requirements Power BP A sells Ashland then
BPA shall notify Ashland of the amount and duration of the reduction
in Ashland's Firm Requirements Power purchases from BP A. Within
20 days of such notification Ashland may add a Specified Resource to
section 2 of Exhibit A in the amount of such decrement. If Ashland
does not add a Specified Resource to meet such decrement, then
within 30 days of such notification BP A shall add Unspecified
Resource Amounts to section 3.2 of Exhibit A in the amount and for
the duration of such decrement.
3.5.4 Temporary Resource Removal
By March 31 of each Rate Case Year, BPA shall revise Ashland's
Dedicated Resource amounts listed in the tables of Exhibit A
consistent with Ashland's resource removal elections made in
accordance with section 10.
3.5.5 Permanent Discontinuance of Resources
Ashland may permanently remove a Specified Resource listed in
section 2 of Exhibit A, consistent with the 5(b)/9(c) Policy on statutory
discontinuance for permanent removal. If BP A makes a
determination that Ashland's Specified Resource has met BP A's
standards for a permanent removal, then BP A shall revise Exhibit A
accordingly. If Ashland does not replace such resource with another
Dedicated Resource, then Ashland's additional Firm Requirements
Power purchases under this Agreement, as a result of such a resource
removal, may be subject to additional rates or charges as established
in the Wholesale Power Rate Schedules and GRSPs.
3.5.6 Resource Additions for Annexed Loads
If Ashland acquires an Annexed Load, in addition to any resources
assigned by the other utility to serve the Annexed Load, Ashland may
add Dedicated Resources to Exhibit A, subject to sections 3.5.6.1 and
3.5.6.2 below, to serve amounts of such Annexed Load that are
Eligible Annexed Load. "Eligible Annexed Load" means an Annexed
Load: (1) that is added after the Effective Date, and (2) for which
Ashland did not receive a CHWM addition pursuant to section 1.2.2 of
Exhibit B.
3.5.6.1 During the Rate Period in which Ashland acquires an Eligible
Annexed Load, Ashland may serve such load for the
remainder of that Rate Period with Dedicated Resources in
the shape of the load, as negotiated by the Parties, or with
additional power purchased from BP A. If Ashland elects to
serve such load with Dedicated Resources, then Ashland shall
apply such resources for the remainder of the Rate Period
and in accordance with applicable terms stated in Exhibit D.
09PB-13002,Ashland 17
If Ashland elects to purchase additional power from BP A for
the Annexed Load, then during that Rate Period such power
purchases may be subject to additional rates or charges as
established in the Wholesale Power Rate Schedules and
GRSPs and as applicable to the shape of the Eligible Annexed
Load.
3.5.6.2 For all Rate Periods after the Rate Period when Ashland
acquires an Eligible Annexed Load, Ashland may serve such
load with Dedicated Resources pursuant to Ashland's
elections to apply Dedicated Resources or Purchase Firm
Requirements Power at Tier 2 Rates during the applicable
Purchase Period as stated in Exhibit C.
3.5.7 Resource AdditionslRemovals for NLSLs
3.5.7.1 To serve an NLSL listed in Exhibit D that is added after the
Effective Date, Ashland may add Dedicated Resources to
section 4 of Exhibit A. Ashland may discontinue serving its
NLSL with the Dedicated Resources listed in section 4 of
Exhibit A if BP A determines that Ashland's NLSL is no
longer an NLSL in Ashland's service territory.
3.5.7.2 If Ashland elects to serve an NLSL with Dedicated Resources,
then Ashland shall specify in section 4 of Exhibit A the
maximum monthly and Diurnal Dedicated Resource amounts
that Ashland plans to use to serve the NLSL. Ashland shall
establish such firm energy amounts for each month beginning
with the date the resource was dedicated to load through the
earlier of the date the resource will be removed or
September 30,2028. Ashland shall serve the actual load of
the NLSL up to such maximum amounts with such Dedicated
Resource amounts. To the extent that the NLSL load is less
than the maximum amount in any monthly or Diurnal
period, Ashland shall have no right or obligation to use such
amounts to serve the non-NLSL portion of its Total Retail
Load. Specific arrangements to match such resources to the
NLSL on an hourly basis shall be established in Exhibit D.
3.5.8 PURPA Resources
If Ashland is required by the Public Utility Regulatory Policies Act
(PURP A) to acquire output from a Generating Resource, then such
output shall be added as a Specified Resource pursuant to Exhibit A.
Ashland shall purchase DFS from BPA (or equivalent service ifDFS is
unavailable) to support such resources for the term of this Agreement.
09PB-13002, Ashland 18
3.6 Consumer-Owned Resources
Except for any Consumer-Owned Resources serving an NLSL, which Ashland
has applied to load consistent with section 23.3.7, Ashland shall apply the
output of its Consumer-Owned Resources as follows:
3.6.1 Existing Consumer-Owned Resources
Ashland has designated, in sections 7.1, 7.2, or 7.3 of Exhibit A, the
extent that each existing Consumer-Owned Resource as of the
Effective Date will or will not serve Onsite Consumer Load. Such
designation shall apply for the term of this Agreement.
3.6.2 New Consumer-Owned Resources
Ashland shall designate the extent that each Consumer-Owned
Resource commencing commercial operation after the Effective Date
will or will not serve Onsite Consumer Load. Ashland shall make
such designation to BP A in writing within 120 days of the first
production of energy by such resource. Such designation shall apply
for the term of this Agreement.
Consistent with Ashland's designations, BPA shall list Consumer-
Owned Resources serving Onsite Consumer Load in section 7.1 of
Exhibit A, Consumer-Owned Resources not serving Onsite Consumer
Load in section 7.2 of Exhibit A, and Consumer-Owned Resources
serving both Onsite Consumer Load and load other than Onsite
Consumer Load in section 7.3 of Exhibit A.
3.6.3 Application of Consumer-Owned Resources Serving Onsite
Consumer Load
Power generated from Consumer-Owned Resources listed in
section 7.1 of Exhibit A shall serve Ashland's Onsite Consumer Load.
Ashland shall receive no compensation from BP A for excess power
generated on any hour from such resources.
3.6.4 Application of Consumer-Owned Resources Serving Load
Other than Onsite Consumer Load
Ashland shall ensure that power generated from Consumer-Owned
Resources listed in section 7.2 of Exhibit A is scheduled for delivery
and either (1) sold to another utility in the Region to serve its Total
Retail Load, (2) purchased by Ashland to serve its Total Retail Load
(consistent with section 3.3), (3) marketed as an export, or (4) any
combination of (1), (2), and (3) above.
3.6.5 Application of Consumer-Owned Resources Serving Both
On site Consumer Load and Load Other than On site Consumer
Load
If Ashland designates a Consumer-Owned Resource to serve both
Onsite Consumer Load and load other than Onsite Consumer Load
then Ashland shall select either Option A or Option B below.
09PB-13002, Ashland 19
3.6.5.1 Option A: Maximum Amounts Serving Onsite
Consumer Load
If Ashland selects this Option A, then Ashland shall specify,
in section 7.3 of Exhibit A, the maximum hourly amounts of
an identified Onsite Consumer Load that are to be served
with power generated by an identified Consumer-Owned
Resource. Such amounts shall be specified as Diurnal
megawatt amounts, by month, and shall apply in all years for
the term of this Agreement. Such amounts are not subject to
change in accordance with section 3.6.6.
On any hour that the Onsite Consumer Load is less than the
specified maximum hourly amounts, all such Onsite
Consumer Load shall be served by Ashland with the
identified Consumer-Owned Resource or with power other
than Firm Requirements Power. Any hourly amounts of the
identified Onsite Consumer Load in excess of the specified
maximum hourly amounts shall be served with Firm
Requirements Power. Any power generated from the
identified Consumer-Owned Resource in excess of the
specified maximum hourly amounts shall be applied to load
other than Onsite Consumer Load in accordance with section
3.6.4.
3.6.5.2 Option B: Maximum BPA-Served Onsite Consumer
Load
If Ashland selects this Option B, then Ashland shall specify,
in section 7.3 of Exhibit A, the maximum hourly amounts of
an identified Onsite Consumer Load that are to be served
with Firm Requirements Power. Such amounts shall be
specified as Diurnal megawatt amounts, by month, and shall
apply in all years for the term of this Agreement. Such
amounts are not subject to change in accordance with
section 3.6.6.
On any hour that Onsite Consumer Load is less than the
specified maximum hourly amounts, all such Onsite
Consumer Load shall be served with Firm Requirements
Power. Ashland shall serve any hourly amounts of the
identified Onsite Consumer Load in excess of the specified
maximum hourly amounts with power generated by the
identified Consumer-Owned Resource or with power other
than Firm Requirements Power. Any power generated from
the identified Consumer-Owned Resource in excess of the
amounts required to be used to serve the Onsite Consumer
Load shall be applied to load other than Onsite Consumer
Load in accordance with section 3.6.4.
09PB-13002, Ashland
20
3.6.6 Changes to Consumer-Owned Resources
Prior to each Fiscal Year Ashland shall notify BP A in writing of any
changes in ownership, expected resource output, or other
characteristic of Consumer-Owned Resources identified in section 7 of
Exhibit A. If a Consumer-Owned Resource has permanently ceased
operation and Ashland notifies BP A of such cessation, then BP A shall
revise section 7 of Exhibit A to reflect such change as long as BPA
agrees the determination is reasonable.
3.6.7 Data Requirements for Consumer-Owned Resources
Ashland shall meter all Consumer-Owned Resources listed in
section 7 of Exhibit A and shall provide such meter data to BP A
pursuant to section 17.3.
3.7 Hourly Dedicated Resource Schedule
By June 30 of each Rate Case Year, Ashland shall provide BPA an
aggregated hourly schedule, in whole megawatt amounts consistent with
section 3.7.3 and in the format described in section 3.7.2, for its Dedicated
Resources with amounts in each hour, calculated pursuant to section 3.7.1,
for each year of the upcoming Rate Period ("Submitted Schedule"). Ashland
shall schedule such hourly amounts to its Total Retail Load consistent with
section 13.
3.7.1 Schedule Amounts
The amounts in the Submitted Schedule shall equal the sum of all
monthly and Diurnal Dedicated Resource amounts listed in the tables
in sections 2 and 3 of Exhibit A except for those Small Non-
Dispatchable Resources listed in section 2.3 of Exhibit A, and those
Specified Resources supported with DFS or SCS listed in section 2 of
Exhibit D. The hourly amounts in the Submitted Schedule shall be
determined in accordance with section 3.4.5.
If the amounts in the Submitted Schedule change in accordance with
sections 3.4.4 and/or 3.5, then Ashland shall send BPA a revised
Submitted Schedule using the updated amounts within five Business
Days of such amounts being updated in Exhibit A.
3.7.2
Schedule Format
Ashland shall provide the Submitted Schedule to BPA electronically in
a comma-separated-value (csv) format with the time/date stamp in the
first column and load amounts, with units of measurement specified,
in the following column.
3.7.3
Whole Megawatt Amounts
If Ashland's Submitted Schedule would otherwise have amounts in
fractional megawatts-per-hour, Ashland shall vary its hourly amounts
by one megawatt in some hours so that over the course of the
applicable month the amounts as scheduled in whole megawatts sum
to the appropriate total. If Ashland's Dedicated Resource amounts are
09PB-13002, Ashland
21
less than one megawatt-per-hour in any Diurnal period of a month,
then Ashland shall schedule one megawatt starting with the first hour
of the Diurnal period of that month, and schedule one megawatt in
each subsequent hour of the Diurnal period until the appropriate
amount has been scheduled for that Diurnal period of such month.
4. TIllS SECTION INTENTIONALLY LEFT BLANK
5. TIllS SECTION INTENTIONALLY LEFT BLANK
6. TIERED RATE METHODOLOGY
6.1 BP A has proposed the TRM to FERC for either confirmation and approval for
a period of20 years (through September 30,2028) or a declaratory order that
the TRM meets cost recovery standards. The then-effective TRM shall apply
in accordance with its terms and shall govern BP A's establishment, review
and revision pursuant to section 7(i) of the Northwest Power Act, of all rates
for power sold under this Agreement.
6.2 In the event that FERC approves the TRM for a period less than through
September 30, 2028, or issues a declaratory order that the TRM meets cost
recovery standards for a period less than through September 30, 2028, BP A
shall, before the approved period of the TRM expires: (1) propose
continuation of the TRM in a hearing conducted pursuant to section 7(i) of
the Northwest Power Act or its successor; and then (2) resubmit the TRM to
FERC for approval or declaratory affirmation of cost recovery standards
through September 30,2028.
6.3 The recitation of language from the TRM in this Agreement is not intended to
incorporate such language into this Agreement. The TRM's language may be
revised, but only in accordance with the requirements of TRM sections 12 and
13. If language of the TRM is revised, then any such language recited in this
Agreement shall be modified accordingly, and the Amendment process of
section 24.1 herein shall not apply to any such modifications.
6.4 Any disputes over the meaning of the TRM or rates or whether the
Administrator is correctly implementing the TRM or rates, including but not
limited to matters of whether the Administrator is correctly interpreting,
applying, and otherwise adhering or conforming to the TRM or rate, shall
(1) be resolved pursuant to any applicable procedures set forth in the TRM;
(2) if resolved by the Administrator as part of a proceeding under section 7(i)
of the Northwest Power Act, be reviewable as part of the United States Court
of Appeals for the Ninth Circuit's review under section 9(e)(5) of the
Northwest Power Act of the rates or rate matters determined in such
section 7(i) proceeding (subject to any further review by the United States
Supreme Court); and (3) if resolved by the Administrator outside such a
section 7(i) proceeding, be reviewable as a final action by the United States
Court of Appeals for the Ninth Circuit under section 9(e)(5) of the Northwest
Power Act (subject to any further review by the United States Supreme
09PB-13002, Ashland
22
Court). The remedies available to Ashland through such judicial review shall
be Ashland's sole and exclusive remedy for such disputes, except as provided
in the next paragraph.
Any knowing failure ofBPA to abide by the TRM, or any BPA repudiation of
its obligation here and under the TRM to revise the TRM only in accordance
with the TRM sections 12 and 13 procedures for revision, would be a matter
of contract to be resolved as would any other claim of breach of contract
under this Agreement. For purposes of this paragraph, when there is a
dispute between BP A and Ashland concerning what the TRM means or
requires, a "knowing failure" shall occur only in the event the United States
Court of Appeals for the Ninth Circuit or, upon further review, the United
States Supreme Court rules against BP A on its position as to what the TRM
means or requires and BP A thereafter persists in its prior position.
6.5 BPA shall not publish a Federal Register Notice regarding BPA rates or the
TRM that prohibits, limits, or restricts Ashland's right to submit testimony
or brief issues on rate matters regarding the meaning or implementation of
the TRM or establishment of BP A rates pursuant to it, provided however for
purposes of BPA's conformance to this paragraph a "rate matter" shall not
include budgetary and program level issues.
6.6 The TRM established by BPA as of the Effective Date includes, among other
things, the following:
6.6.1 Definitions (from Definitions section of the TRM):
"Contract High Water Mark" or "CHWM" means the amount
(expressed in Average Megawatts), computed for each customer in
accordance with section 4 of the TRM. For each customer with a
CHWM Contract, the CHWM is used to calculate each customer's
RHWM in the RHWM Process for each applicable Rate Period. The
CHWM Contract specifies the CHWM for each customer.
"Rate Period High Water Mark" or "RHWM" means the amount,
calculated by BPA in each RHWM Process (as defined in the TRM)
pursuant to the formula in section 4.2.1 of the TRM and expressed in
Average Megawatts, that BPA establishes for each customer based on
the customer's CHWM and the RHWM Tier 1 System Capability (as
defined in the TRM). The maximum planned amount of power a
customer may purchase under Tier 1 Rates each Fiscal Year of the
Rate Period is equal to the RHWM for Load Following customers and
the lesser ofRHWM or Annual Net Requirement for Block and
Slice/Block customers.
"Contract Demand Quantity" or "CDQ" means the monthly
quantity of demand (expressed in kilowatts) included in each
customer's CHWM Contract that is subtracted from the Customer
System Peak (as defined in the TRM) as part of the process of
09PB-13002, Ashland
23
determining the customer's Demand Charge Billing Determinant (as
defined in the TRM), as calculated in accordance with section 5.3.5 of
the TRM.
6.6.2 Rate Period High Water Mark Calculation (from section 4.2.1 of the
TRM):
Expressed as a formula, the RHWM will be calculated by BP A for each
customer as follows:
CHWM
RHWM = ECHWM x T1SC
where:
RHWM = Rate Period High Water Mark, expressed in Average
Megawatts
CHWM = Contract High Water Mark
ECHWM = sum of all customers' Contract High Water Marks,
including those for customers without a CHWM
Contract
T1SC = forecast RHWM Tier 1 System Capability (as defined
in the TRM), averaged for the Rate Period
7. IDGH WATER MARKS AND CONTRACT DEMAND QUANTITIES
7.1 Contract High Water Mark (CHWM)
BP A shall establish Ashland's CHWM in the manner defined in section 4.1 of
the TRM that was current as of the Effective Date. Ashland's CHWM and
the circumstances under which it can change are stated in Exhibit B.
7.2 Rate Period High Water Mark (RHWM)
Ashland's CHWM shall also be Ashland's RHWM for FY 2012 and FY 2013.
BPA shall establish Ashland's RHWM for the next Rate Period by
September 30,2012, and for subsequent Rate Periods by September 30 of
each Forecast Year thereafter. BP A shall establish Ashland's RHWM in the
manner defined in section 4.2 of the TRM that was current as of the Effective
Date.
7.3 Contract Demand Quantities (CDQs)
BPA shall establish Ashland's CDQs pursuant to the TRM. Ashland's CDQs
are listed in Exhibit B.
09PB-13002, Ashland
24
8. APPLICABLE RATES
Purchases under this Agreement are subject to the following rate schedules, or their
successors: Priority Firm Power (PF), New Resource Firm Power (NR), and Firm
Power Products and Services (FPS), as applicable. Billing determinants for any
purchases will be included in each rate schedule. Power purchases under this
Agreement are subject to BPA's Wholesale Power Rate Schedules, established in
accordance with the TRM, as applicable, and its GRSPs (or their successors).
8.1 Priority Firm Power (PF) Rates
BP A shall establish its PF power rates that apply to purchases under this
Agreement pursuant to section 7 of the Northwest Power Act, and in
accordance with the TRM. BPA shall establish PF rates that include rate
schedules for purchase amounts at Tier 1 Rates and purchase amounts at
Tier 2 Rates. Ashland's purchase of Firm Requirements Power shall be
priced as follows:
(1) Tier 1 Rates shall apply to Firm Requirements Power that Ashland
purchases under this Agreement, less: (a) amounts of Firm
Requirements Power priced at Tier 2 Rates elected by Ashland in
section 2 of Exhibit C, and (b) any amounts purchased for NLSLs.
(2) Tier 2 Rates shall apply to planned annual amounts of Firm
Requirements Power that Ashland purchases to serve its Above-
RHWM Load that remains after applying Ashland's New Resources.
The details of this calculation, including the use of a forecasted
RHWM for FY 2012 and FY 2013, are established in the TRM.
8.2 New Resource Firm Power (NR) Rate
Except for the application of section 23.3.7.1 Renewable
Resource/Cogeneration Exception, any amounts of Firm Requirements Power
provided to Ashland from BP A for service to an NLSL that is listed in
Exhibit D shall be purchased at the NR Rate.
8.3 Firm Power Products and Services (FPS) Rate
Services sold under this Agreement to Ashland at the FPS rate, if any, are
listed in Exhibit D.
8.4 Additional Charges
The Resource Shaping Charge shall apply to Ashland's New Resources that
are used to serve Total Retail Load in an amount other than equal megawatt
amounts for each hour of the year. Ashland may incur additional charges or
penalty charges as provided in the Wholesale Power Rate Schedules and
GRSPs, including the Unauthorized Increase Charge or its successors.
8.5 Resource Support Services (RSS)
For Ashland's Specified Resources, Ashland may elect to purchase RSS
products under this Agreement. Such purchases shall be listed in Exhibit D.
09PB-13002, Ashland
25
9. ELECTIONS TO PURCHASE POWER PRICED AT TIER 2 RATES
9.1 Determination and Notice to Serve Above-RHWM Load
Ashland shall determine and provide notice, as described below, to BP A
whether Ashland shall serve its Above-RHWM Load that is greater than or
equal to 8,760 megawatt-hours with either: (1) Firm Requirements Power
purchased from BPA at a Tier 2 Rate or rates, (2) Dedicated Resources, or
(3) a specific combination of both (1) and (2). Ashland shall make such
determination and provide such notice as follows:
9.1.1 Notice Deadlines and Purchase Periods
Notice Deadlines and corresponding Purchase Periods are as follows:
Notice Deadline
November 1, 2009
September 30, 2011
September 30, 2016
September 30.2021
For
For
For
For
Purchase Period
FY 2012 - FY 2014
FY 2015 - FY 2019
FY 2020 - FY 2024
FY 2025 - FY 2028
9.1.2 Elections to Purchase at Tier 2 Rates
By each Notice Deadline, Ashland shall elect in writing to purchase, or
not to purchase, Firm Requirements Power at Tier 2 Rates for at least
the upcoming Purchase Period. If Ashland elects to purchase Firm
Requirements Power at Tier 2 Rates, then Ashland shall make such
election pursuant to sections 2.2 through 2.4 of Exhibit C. BPA shall
update Exhibit C to state Ashland's Tier 2 Rate purchase elections.
9.1.3 Elections Not to Purchase at Tier 2 Rates
If Ashland elects under section 9.1.2 not to purchase Firm
Requirements Power at Tier 2 Rates to serve Above- RHWM Load for a
Purchase Period, BP A shall update section 2.1 of Exhibit C to indicate
such election. Such election shall not eliminate any existing
obligation that extends into the Purchase Period or beyond to
purchase Firm Requirements Power at Tier 2 Rates.
9.1.4 Failure to Make an Election
If Ashland makes no election by a Notice Deadline in section 9.1.1 for
the corresponding Purchase Period Ashland shall be deemed to have
purchased Firm Requirements Power at Tier 2 Short-Term Rates to
serve Above-RHWM Load under Alternative A in section 2.4.1 of
Exhibit C with zero Dedicated Resource amounts listed in the table in
section 2.4.1.1(2) of Exhibit C, except for any existing obligation to
apply Dedicated Resources that extends into the Purchase Period or
beyond.
09PB-13002, Ashland 26
9.2 Tier 2 Rate Alternatives
Subject to the requirements of this section 9 and those stated in Exhibit C,
Ashland shall have the right to purchase Firm Requirements Power at Tier 2
Load Growth Rates, Tier 2 Vintage Rates, and Tier 2 Short-Term Rates.
9.3 Flat Block
Amounts of Firm Requirements Power priced at Tier 2 Rates and purchased
by Ashland shall be equal in all hours of the year.
10. TIER 2 REMARKETING AND RESOURCE REMOVAL
10.1 Resource Removal and Remarketing of Tier 2 Purchase Amounts for
Each Rate Period
If Ashland's Above-RHWM Load as forecast for an upcoming Rate Period is
less than the sum of (1) Ashland's Tier 2 Rate purchase amounts, as stated in
Exhibit C, and (2) Ashland's New Resource amounts, as stated in Exhibit A,
then by October 31 of each Rate Case Year, Ashland may notify BP A of the
order and associated amounts of Ashland's Tier 2 Rate purchase amounts
that BPA shall remarket and the New Resources Ashland shall remove for
each Fiscal Year in the upcoming Rate Period to the extent necessary to
comply with section 10.2. If compliance with the requirements of section 10.2
would cause Ashland to remove part or all of any New Resource that Ashland
uses to fulfill a state or federal renewable resource standard or other
comparable legal obligation, then Ashland shall have the right to substitute
its right to remove New Resources for the same amount of Existing Resources
to the extent necessary to comply with section 10.2, provided that the hourly,
monthly, and Diurnal amounts so removed shall be equal to the hourly,
monthly, and Diurnal amounts provided by the New Resources that Ashland
would have otherwise been obligated to remove.
If Ashland does not provide BP A with such timely notice in accordance with
the preceding paragraph, then BP A shall determine the order and associated
amounts of Tier 2 remarketing and removal of New Resources to the extent
necessary to comply with section 10.2.
10.2 Extent of Removal
Tier 2 remarketing and removal of New Resources pursuant to section 10.1
shall apply until:
(1) the remarketed Tier 2 Rate purchase amounts plus the removed New
Resource amounts equal the amount by which Ashland's Tier 2 Rate
purchase amounts plus its New Resources exceed its Above-RHWM
Load, or
(2) all of Ashland's Tier 2 Rate purchase amounts are remarketed and all
of its New Resources are removed.
09PB-13002, Ashland 27
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10.3 Partial Resource Removal
When only a portion of a Specified Resource or Unspecified Resource
Amounts is being removed pursuant to section 10.1, such resources shall be
removed proportionally to maintain the same annual shape for the resource
that Ashland has established in Exhibit A.
10.4 Remarketing of Power Priced at Tier 2 Rates
Consistent with rates established under the TRM, Ashland shall be subject to
applicable charges or credits associated with BP A's remarketing of purchase
amounts of Firm Requirements Power at Tier 2 Rates. Except as specified in
section 10.5, Ashland shall be responsible for remarketing of any amounts of
its Dedicated Resources, Specified or Unspecified, that are removed pursuant
to section 10.1.
10.5 Removal of Resources Taking DFS
The following shall apply for any Dedicated Resources: (1) for which Ashland
is purchasing DFS under this Agreement, and (2) that are partially or
entirely removed pursuant to section 10.1.
10.5.1 Ashland shall continue to apply the entire amount of any such
resources to load consistent with applicable provisions stated in
Exhibit D.
10.5.2 BPA shall remarket the amounts of any such resources that are
removed pursuant to section 10.1 in the same manner BPA remarkets
Tier 2 Rate purchase amounts in section 10.4. BPA shall continue to
provide DFS in accordance with applicable provisions in Exhibit D to
any amounts of such resources that remain after resource removal.
11. RIGHT TO CHANGE PURCHASE OBLIGATION
11.1 One-Time Right to Change Purchase Obligation
Subject to this section 11.1, Ashland shall have a one-time right to change its
purchase obligation, identified in section 3, to another purchase obligation
available from BPA, including Block or Slice/Block. If Ashland chooses to
change its purchase obligation, then Ashland shall first provide notice to BP A
of its intent and then confirm its decision as established below. Any elections
of Tier 2 Rate alternatives, Dedicated Resource additions, or other notices
given to BP A under this Agreement shall continue to be applicable under the
new purchase obligation, provided that BP A may update such terms and
conditions consistent with the then-current terms of the new purchase
obligation, and additional costs may apply for service under the new purchase
obligation as described in section 11.1.3.
11.1.1 Notice to Change
By May 31,2016, Ashland may provide written notice to BPA that it is
requesting to change its purchase obligation effective October 1, 2019,
subject to confirmation described in section 11.1.4. Ashland's notice
shall state the type of service requested. If such service is the
09PB-13002, Ashland
28
SliceIBlock purchase obligation, then Ashland shall state a range of
Slice amounts between a specified minimum and maximum amount of
Slice that Ashland will accept, provided that the maximum amount of
Slice shall not exceed 70% of Ashland's CHWM.
11.1.2 Limitations Due to Peak Load Increase
By July 31,2016, BPA shall assess the aggregate effect of all requests
to change purchase obligations on BPA's forecast of its total monthly
firm coincident peak loads in the first year the changes become
effective. If the increase in this peak load in anyone month exceeds
300 megawatts, then BP A may, after consulting with Ashland and
other customers with a CHWM Contract, do one of the following to
reduce the increase in such peak load to 300 megawatts: (1) deny
Ashland's request to change its purchase obligation, or (2) approve
Ashland's request but defer the date on which Ashland's new purchase
obligation change becomes effective.
11.1.3 Charge to Change Purchase Obligation
In addition to the limitations established in section 11.1.2, Ashland
may be subject to charges, in addition to the rates for the new service,
as a result of changing its purchase obligation. Such additional
charges shall recover all additional costs that: (1) will be incurred by
BP A to serve Ashland under its new purchase obligation compared to
its existing purchase obligation, and (2) would otherwise result in a
rate impact on all other customers receiving service under a CHWM
Contract. If Ashland makes a request to change its purchase
obligation, then by September 30,2016, BPA shall determine and
present Ashland with any such additional charges. BPA shall not be
required to make a payment to Ashland as a result of Ashland
changing its purchase obligation.
11.1.4 Change Confirmation
Within 30 days of BP A's presentation to Ashland of the additional
charges determined in section 11.1.3, Ashland shall provide BPA with
written notice whether it wishes to proceed with its request to change
its purchase obligation. If Ashland is requesting a change to the
SliceIBlock purchase obligation, then such confirmation constitutes
agreement that Ashland shall purchase an amount of Slice within
Ashland's specified range of acceptable Slice amounts, if made
available by BP A. If Ashland does not provide BP A with such
confirmation, then Ashland's existing purchase obligation identified in
section 3 shall continue to apply.
11.1.5 Slice Amount
If Ashland requests a change to a SliceIBlock purchase obligation,
then BPA shall determine Ashland's specific amount of Slice as
follows:
09PB-13002, Ashland
29
(1) BPA shall determine the total amount of Slice available for
purchase by all customers requesting a change ~o SliceIBlock.
Such amount shall be the sum of any unsubscribed amount of
Slice as of October 1, 2011, plus any amount of Slice made
available by customers switching from the SliceIBlock purchase
obligation.
(2) If such amount is sufficient to meet the requested maximum
amount of Slice from all customers requesting a change to
SliceIBlock, then BP A shall provide to Ashland its requested
maximum amount of Slice as part of the new purchase
obligation.
(3) If such amount is insufficient to meet the requested maximum
amount of Slice from all customers requesting a change to
SliceIBlock, then BPA shall reduce individual Slice amounts of
customers requesting a change to SliceIBlock pro rata based on
the requested maximum amount of Slice. If Ashland's
individual Slice amount is below its specified minimum, then
Ashland shall retain its current purchase obligation.
11.1.6 Amendment to Reftect New Purchase Obligation
Following Ashland's confirmation of its decision to change its purchase
obligation, the Parties shall amend this Agreement to replace the
terms of Ashland's current purchase obligation with the terms of the
new purchase obligation. Such amendment shall include, but not be
limited to, revising the peak amounts for each of Ashland's Specified
Resources listed in section 2 of Exhibit A. The Parties shall revise
such peak amounts using BP A's peak standard applicable to Ashland's
new purchase obligation. The amended Agreement shall be effective
no later than October 1, 2019.
11.2 This Section Intentionally Left Blank
12. BILLING CREDITS AND RESIDENTIAL EXCHANGE
12.1 Billing Credits
If Ashland develops a Generating Resource to serve its loads, then Ashland
agrees that it shall forego any request for, and BP A is not obligated to
include, billing credits, as defined in section 6(h) of the Northwest Power Act,
on Ashland's bills under this Agreement. This section does not apply to any
billing credit contracts in effect as of the Effective Date.
12.2 Agreement to Limit Exchange Costs of Existing Resources
Ashland agrees it will not seek and shall not receive residential exchange
benefits pursuant to section 5(c) of the Northwest Power Act other than
pursuant to Section IV(G) of BPA's 2008 Average System Cost Methodology
or its successor. Ashland recognizes that the quantity of residential load will
be determined in a subsequent policy or rate determination. Ashland's
09PB-13002, Ashland
30
agreement in this section 12.2 is a material precondition to BPA offering and
executing this Agreement.
13. SCHEDULING
From October 1, 2011, through September 30,2028, Power Services shall provide
and Ashland shall purchase Transmission Scheduling Service. The Parties shall
administer Ashland's Transmission Scheduling Service consistent with Exhibit F.
14. DELIVERY
14.1 Definitions
14.1.1 "Integrated Network Segment" means those facilities of the Federal
Columbia River Transmission System that are required for the
delivery of bulk power supplies, the costs for which are recovered
through generally applicable transmission rates, and that are
identified as facilities in the Integrated Network Segment, or its
successor, in the BPA segmentation study for the applicable
transmission rate period as determined in a hearing establishing or
revising BP A's. transmission rates pursuant to section 7(i) of the
Northwest Power Act.
14.1.2 "Primary Points of Receipt" means the points on the Pacific Northwest
transmission system where Firm Requirements Power is forecasted to
be made available by Power Services to Ashland for purposes of
obtaining a long-term firm transmission contract.
14.1.3 "Scheduling Points of Receipt" means the points on the Pacific
Northwest transmission system where Firm Requirements Power is
made available by Power Services to Ashland for purposes of
transmission scheduling.
14.2 Transmission Service
14.2.1 Ashland is responsible for delivery of power from the Scheduling
Points of Receipt, except as provided under section 14.6.
14.2.2 Ashland shall provide at least 60 days' notice to Power Services prior
to changing Balancing Authority Areas.
14.2.3 At Ashland's request, Power Services shall provide Ashland with
Primary Points of Receipt and other information needed to enable
Ashland to obtain long-term firm transmission for delivery of power
sold under this Agreement. If required by Transmission Services for
purposes of transmission scheduling, then Power Services shall
provide Ashland with Scheduling Points of Receipt. Power Services
has the right to provide power to Ashland at Scheduling Points of
Receipt that are different than the Primary Points of Receipt. If BP A
does provide power to Ashland at Scheduling Points of Receipt that
09PB-13002, Ashland
31
---r- ---
are different than the Primary Points of Receipt, then BPA shall
reimburse Ashland for any incremental, direct, non-administrative
costs incurred by Ashland to comply with delivering Firm
Requirements Power from such a Scheduling Point of Receipt to
Ashland's load if the following conditions, as outlined in (1) or (2)
below, have been met:
(1) If Ashland has long-term Point to Point (PTP) transmission
service (as defined in BPA's Open Access Transmission Tariff)
for delivery of Firm Requirements Power to its load:
(A) Ashland has requested long-term firm transmission
service to deliver its Firm Requirements Power using the
Primary Points of Receipt and other information provided
by Power Services; and
(B) Ashland has submitted a request to redirect its long-term
firm PTP transmission service to deliver Firm
Requirements Power from the Scheduling Point of Receipt
on a firm basis, but that request was not granted; and
(C) Ashland's transmission schedule was curtailed due to
non-firm status under PTP transmission service or
Ashland can provide proof of the reimbursable costs
incurred to replace the curtailed schedule.
(2) If Ashland has long-term Network Integration Transmission
Service (as defined in BP A's Open Access Transmission Tariff)
for delivery of Firm Requirements Power to its load:
(A) Ashland has requested long-term firm transmission
service to deliver its Firm Requirements Power using the
Primary Points of Receipt and other information provided
by Power Services; and
(B) Ashland's transmission schedule was curtailed due to
non-firm status under its secondary service status and
Ashland can provide proof of the reimbursable costs
incurred to replace the curtailed schedule.
14.3 Liability for Delivery
Ashland waives any claims against BP A arising under this Agreement for
non-delivery of power to any points beyond the applicable Scheduling Points
of Receipt, except for reimbursement of costs as described in section 14.2.3.
BPA shall not be liable under this Agreement for any third-party claims
related to the delivery of power after it leaves the Scheduling Points of
Receipt. Neither Party shall be liable under this Agreement to the other
Party for damage that results from any sudden, unexpected, changed, or
abnormal electrical condition occurring in or on any electric system,
09PB-13002, Ashland
32
regardless of ownership. These limitations on liability apply regardless of
whether or not this Agreement provides for Transfer Service.
14.4 Real Power Losses
BP A is responsible for the real power losses necessary to deliver Firm
Requirements Power to Ashland's PODs listed in Exhibit E.
14.5 Metering Losses
BPA shall adjust measured amounts of power to account for losses, if any,
that occur between Ashland's PODs and the respective POMs, as specified in
Exhibit E.
14.6 Delivery by Transfer
Subject to the limitations in this section, BP A agrees to acquire and pay for
Transfer Service to deliver Firm Requirements Power and Surplus Firm
Power to Ashland's PODs, as listed in Exhibit E, in an amount not to exceed
Ashland's Total Retail Load on an hourly basis. In the event that a conflict
exists between the provisions of this Agreement and the Agreement
Regarding Transfer Service (ARTS) Contract No. 05EO-40061, this
Agreement shall govern.
14.6.1 Ancillary Services
BPA shall acquire and pay for Ancillary Services, as defined in BPA's
Open Access Transmission Tariff, needed for Ashland's Transfer
Service subject to the following limitations:
(1) Ashland shall reimburse BPA for load regulation service or its
replacement at the applicable Transmission Services rate, or
its successor.
(2) BPA shall pay for the Ancillary Service(s) charged by a Third-
Party Transmission Provider to deliver Firm Requirements
Power to the PODs listed in Exhibit E, only if Ashland is also
purchasing such Ancillary Service(s) from Transmission
Services to deliver Firm Requirements Power to the PODs in
Exhibit E. If at any time Ashland is not purchasing Ancillary
Service(s) from Transmission Services to deliver Firm
Requirements Power to one or more of the PODs listed in
Exhibit E, then Ashland shall reimburse BP A for the Ancillary
Service(s) charges BP A has incurred from the Third Party
Transmission Provider to deliver power to such POD(s), at the
applicable or equivalent Transmission Services Ancillary
Services rate.
14.6.2 Low Voltage Delivery
Low Voltage Delivery is service over the Low Voltage Segment by any
Third Party Transmission Provider's system. "Low Voltage.Segment"
means the facilities of a Third-Party Transmission Provider that are
equivalent to the voltage level of the facilities excluded by
09PB-13002,Ashland
33
Transmission Services from the Integrated Network Segment. For
Low Voltage Delivery, Ashland shall pay Power Services the
applicable General Transfer Agreement (GTA) Delivery Charge, or its
successor rate, consistent with the applicable BP A Wholesale Power
Rate Schedules and GRSPs. The Parties shall list Ashland's PODs
that require Low Voltage Delivery in Exhibit E.
14.6.3 Direct Assignment Costs
Ashland shall pay BP A for all directly assigned costs, including but
not limited to: facility or system studies costs, construction costs,
upgrade costs, and expansion costs, or other capital costs for facilities
directly associated with service to any Ashland PODs assessed by the
Third Party Transmission Provider to BP A. Such costs shall be
consistent with Transmission Services' "Guidelines for Direct
Assignment Facilities," and the "Final Supplemental Guidelines for
Direct Assignment of Facilities Costs Incurred Under Transfer
Agreements" included in BP A's Long Term Regional Dialogue Final
Policy, July 2007, or any other revision of that policy, or as established
in a BP A 7(i) Process.
14.6.4 Penalties Assessed By the Third Party Transmission Provider
BP A has the right to directly pass through to Ashland any penalty
charges assessed by the Third Party Transmission Provider that are
associated with BPA's acquisition of Transfer Service to the PODs
identified in Exhibit E. Such charges may include, but are not limited
to, power factor penalties or excessive energy imbalance penalties.
14.6.5 Removal of PODs
BPA may terminate deliveries at a POD if Ashland consents to the
termination or if the Parties determine that Ashland's requirements
for power at such point may be adequately supplied under reasonable
conditions and circumstances at different POD(s): (1) directly from
the Federal Columbia River Transmission System, (2) indirectly from
the facilities of another transmission owner/operator, or (3) both.
14.6.6 Annexed Loads
BP A shall arrange and pay for Transfer Service for federal power
deliveries to serve Ashland's Annexed Load. Ashland shall provide
BP A written notice of any Annexed Load acquired greater than
one Average Megawatt no later than 90 days prior to the
commencement of service to the Annexed Load. However, BPA's
obligation to provide Transfer Service to Ashland's Annexed Load
shall be limited by the megawatt caps and process for Annexed Load
and new public customers set forth in BP A's Long Term Regional
Dialogue Final Policy, July 2007, or any revision of that policy.
14.6.7 Non-Federal Deliveries
If Ashland has a non-federal resource or is acquiring a non-federal
resource necessary to serve its Above-RHWM Load, and Ashland has
09PB-13002,Ashland
34
requested that BP A assist in the acquisition of transmission services
for such resource, then BP A shall offer Ashland a separate agreement
for specific terms and conditions under which BP A will obtain
Transfer Service on a Third Party Transmission Provider's system for
delivery of that resource to Ashland's system. The terms of the
agreement BP A offers to Ashland shall not be subject to section 22,
Governing Law and Dispute Resolution. BPA shall develop the
agreement consistent with the principles of service specified in
Exhibit G.
15. METERING
15.1 Measurement
By September 30,2010, the Parties shall ensure that meters are installed on
all PODs listed in Exhibit E, consistent with the requirements of this
section 15. The amount of power measured by such meters shall be used by
BP A for billing purposes. If the Parties agree that metering is economically
or technologically impractical, then:
(1) the Parties shall use scheduled amounts to measure the amount of
power purchased if such power is scheduled into or out of Ashland's
service territory; or
(2) the Parties shall use mutually acceptable load profiles to measure the
amount of power purchased if such power is not scheduled.
If the metering equipment associated with the meters listed in Exhibit E fails
to properly measure or record the interval readings, then BP A shall apply the
procedure set out in the Meter Usage Data Estimations provision of the
Wholesale Power Rate Schedules and GRSPs to determine the appropriate
billing adjustment.
The rights to locate meters and access facilities granted to BP A pursuant to
this section 15 are subject to the terms of any applicable agreement between
Ashland and Transmission Services addressing the location, cost
responsibility, access, maintenance, testing, and liability of the Parties with
respect to meters.
15.2 Existing BPA Owned Meters
At BPA's expense, BPA shall operate, maintain, and replace, as necessary, all
existing metering equipment owned by BPA that is needed to plan, schedule,
and bill for power. Ashland authorizes BPA to maintain and replace any
metering equipment on Ashland's facilities that is reasonably necessary to
forecast, plan, schedule, and bill for power. With reasonable notice from
BP A, and for the purpose of implementing this provision, Ashland shall grant
BP A reasonable physical access to BP A owned meters at BP A's request.
BP A shall give Ashland access to meter data from the BP A owned meters
listed in Exhibit E.
09PB-13002, Ashland
35
If, at any time, BP A or Ashland determines that a BP A owned meter is
defective or inaccurate, then BPA shall adjust, repair, or replace the meter to
provide accurate metering as soon as practical.
15.3 Non-BPA Owned Meters
15.3.1 Customer Owned Meters
Ashland shall operate, maintain, and replace, as necessary at
Ashland's expense, all non-BPA metering equipment owned by
Ashland that is needed by BPA to forecast, plan, schedule, and bill for
power for:
(1) points of interconnection between Ashland's system and parties
other than BP A;
(2) all loads that require separate measurement for purposes of
forecasting, planning, scheduling, or billing for power; and
(3) Generating Resources listed in Exhibit A that are
interconnected to Ashland's system.
Ashland shall give BP A direct, electronic access to meter data from all
Ashland owned meters that are capable of being accessed
electronically. For the purpose of inspection, Ashland shall grant BP A
reasonable physical access to Ashland meters at BPA's request.
If, at any time, BP A or Ashland determines that a Ashland owned
meter listed in Exhibit E is defective or inaccurate, then Ashland shall
adjust, repair, or replace the meter, or shall make commercially
reasonable efforts to arrange for the completion of such actions, to
provide accurate metering as soon as practical. BP A shall have the
right to witness any meter tests on Ashland owned meters listed in
Exhibit E and, with reasonable advance notice, BPA may conduct
tests on such meters. Ashland shall have the right to witness any
meter tests conducted by BP A.
15.3.2 Non-BPA Owned Meters Not Owned by Ashland
For non-BPA owned meters not owned by Ashland needed by BPA to
forecast, plan, schedule and bill for power under this Agreement,
Ashland shall make commercially reasonable efforts to arrange for
such meters to be operated, maintained and replaced, as necessary, for
the measurements described above in sections 15.3.1(1) and 15.3.1(2)
and for any Generating Resources listed in Exhibit A that require
metering.
If, at any time, it is determined that a non-BPA owned meter not
owned by Ashland listed in Exhibit E is defective or inaccurate, then
Ashland shall make commercially reasonable efforts to arrange to
09PB-13002, Ashland
36
adjust, repair, or replace the meter, to provide accurate metering as
soon as practical. To the extent possible, BP A may witness any meter
tests on non- BP A owned meters not owned by Ashland listed in
Exhibit E and, with reasonable advance notice, BP A may conduct
tests on such meters. Ashland shall have the right to witness any
meter tests conducted by BPA.
15.3.3 Non-BPA Owned Meters Owned by Third-Party Transmission
Provider
This section 15.3 shall not apply to non-BPA owned meters that are
owned by a Third-Party Transmission Provider with which BPA holds
a transmission contract for service to Ashland load. In these cases the
metering arrangements shall be between BPA and the Third-Party
Transmission Provider.
15.4 New Meters
A separate agreement addressing the location, cost responsibility, access,
maintenance, testing, and liability of the Parties with respect to new meters
shall be between Ashland and Transmission Services.
All new and replaced meters shall meet American National Standard
Institute standards, including, but not limited to C12.20, Electricity
Meters--0.2 and 0.5 Accuracy Classes, and the Institute of Electrical and
Electronics Engineers, Inc. standard C57.13, Requirements for Instrument
Transformers, or their successors. Any new and replaced meters shall be
able to record meter data hourly and store data for a minimum of 45 days.
15.5 Metering an NLSL
Any loads that are monitored by BP A for an NLSL determination and any
NLSLs shall be metered pursuant to section 23.3.4.
15.6 Metering Exhibit
Ashland shall provide meter data specified in section 17.3 and shall notify
BP A of any changes to PODs, POMs, Interchange Points and related
information for which it is responsible. BP A shall list Ashland's PODs and
meters in Exhibit E.
16. BILLING AND PAYMENT
16.1 Billing
BP A shall bill Ashland monthly for all products and services provided during
the preceding month(s). BP A may send Ashland an estimated bill followed by
a final bill. The Issue Date is the date BP A electronically sends the bill to
Ashland. If electronic transmittal of the entire bill is not practical, then BP A
shall transmit a summary electronically, and send the entire bill by United
States mail.
09PB-13002, Ashland
37
16.2 Payment
Ashland shall pay all bills electronically in accordance with instructions on
the bill. Payment of all bills, whether estimated or final, must be received by
the 20th day after the Issue Date of the bill (Due Date). If the 20th day is a
Saturday, Sunday, or federal holiday, then the Due Date is the next Business
Day.
If Ashland has made payment on an estimated bill then:
(1) if the amount of the final bill exceeds the amount of the estimated bill,
then Ashland shall pay BP A the difference between the estimated bill
and final bill by the final bill's Due Date; or
(2) if the amount of the final bill is less than the amount of the estimated
bill, then BP A shall pay Ashland the difference between the estimated
bill and final bill by the 20th day after the final bill's Issue Date. If the
20th day is a Saturday, Sunday, or federal holiday, BPA shall pay the
difference by the next Business Day.
16.3 Late Payments
After the Due Date, a late payment charge equal to the higher of:
(1) the Prime Rate (as reported in the Wall Street Journal or successor
publication in the first issue published during the month in which
payment was due) plus four percent, divided by 365; or
(2) the Prime Rate times 1.5, divided by 365;
shall be applied each day to any unpaid balance.
16.4 Termination
If Ashland has not paid its bill in full by the Due Date, it shall have 45 days
to cure its nonpayment by making payment in full. If Ashland does not
provide payment within three Business Days after receipt of an additional
written notice from BP A, and BP A determines in its sole discretion that
Ashland is unable to make the payments owed, then BP A may terminate this
Agreement. Written notices sent under this section 16.4 must comply with
section 20.
16.5 Disputed Bills
16.5.1 If Ashland disputes any portion of a charge or credit on Ashland's
estimated or final bills, Ashland shall provide written notice to BP A
with a copy of the bill noting the disputed amounts. Notwithstanding
whether any portion of the bill is in dispute, Ashland shall pay the
entire bill by the Due Date. This section 16.5.1 does not allow
Ashland to challenge the validity of any BP A rate.
09PB-13002, Ashland
38
16.5.2 Unpaid amounts on a bill (including both disputed and undisputed
amounts) are subject to the late payment charges provided above.
Notice of a disputed charge on a bill does not constitute BPA's
agreement that a valid claim under contract law has been stated.
16.5.3 If the Parties agree, or if after a final determination of a dispute
pursuant to section 22, Ashland is entitled to a refund of any portion
of the disputed amount, then BP A shall make such refund with simple
interest computed from the date of receipt of the disputed payment to
the date the refund is made. The daily interest rate shall equal the
Prime Rate (as reported in the Wall Street Journal or successor
publication in the first issue published during the month in which
payment was due) divided by 365.
17. INFORMATION EXCHANGE AND CONFIDENTIALITY
17.1 General Requirements
Upon request, each Party shall provide the other Party with any information
that is necessary to administer this Agreement and to forecast Ashland's
Total Retail Load, forecast BP A system load, comply with NERC reliability
standards, prepare bills, resolve billing disputes, administer Transfer
Service, and otherwise implement this Agreement. For example, this
obligation includes transmission and power scheduling information and load
and resource metering information (such as one-line diagrams, metering
diagrams, loss factors, etc.). In addition, Ashland shall provide information
BP A requests about Dedicated Resources for purposes of meeting BP A's
statutory obligations under section 7(b) of the Northwest Power Act.
Information requested under this section 17.1 shall be provided in a timely
manner. If Ashland fails to provide BPA with information Ashland is
required to provide pursuant to this Agreement and the absence of such
information makes it impossible for BP A to perform a calculation, make a
determination, or take an action required under this Agreement, then BP A
may suspend its obligation to perform such calculation, make such
determination, or take such action until Ashland has provided such
information to BP A.
17.2 Reports
17.2.1 Within 30 days after final approval of Ashland's annual financial
report and statements by Ashland's authorized officer, Ashland shall
either e-mail them to BPA at kslf@bpa.gov or, if any of the information
is publicly available, then Ashland shall notify BP A of its availability.
17.2.2 Within 30 days after its submittal to the Energy Information
Administration (EIA), or its successor, Ashland shall e-mail a copy of
its Annual Form EIA-861 Reports to BPA at kslf@bpa.gov. If Ashland
is not required to submit such reports to the EIA, then this
requirement does not apply.
09PB-13002, Ashland
39
17.3 Meter Data
17.3.1 In accordance with section 15 and Exhibit E, the Parties shall notify
each other of any changes to PODs, POMs, Interchange Points and
related information for which it is responsible. Ashland shall ensure
BP A has access to all data from load and resource meters that BP A
determines is necessary to forecast, plan, schedule, and bill under this
Agreement. Access to this data shall be on a schedule determined by
BPA. Meter data shall be in hourly increments for all meters that
record hourly data. Meter data includes, but is not limited to:
Ashland's actual amounts of energy used or expended for loads and
resources, and the physical attributes of Ashland's meters.
17.3.2 Ashland consents to allow Power Services to receive the following
information from Transmission Services or BPA's metering function:
(1) Ashland's meter data, as specified in section 17.3.1, section 15, and
Exhibit E, and (2) notification of outages or load shifts.
17.3.3 At least 15 calendar days in advance, Ashland shall e-mail BPA at:
(1) mdm@bpa.gov and (2) the contact shown in section 20 when the
following events are planned to occur on Ashland's system that will
affect the load measured by the meters listed in Exhibit E:
(1) installation of a new meter, (2) changes or updates to an existing
meter not owned by BPA, (3) any planned line or planned meter
outages, and (4) any planned load shifts from one POD to another.
This section 17.3.3 is not intended to apply to retail meters not listed
in Exhibit E.
17.3.4 If an unplanned load shift or outage occurs, materially affecting the
load measured by the meters listed in Exhibit E, then Ashland shall
e-mail BPA at: (1) mdm@bpa.gov, and (2) the contact shown in
section 20 within 72 hours after the event.
17.4 Data for Determining CHWM and CDQs
Upon request, Ashland shall provide to BP A any load and resource
information that BP A determines is reasonably necessary to calculate
Ashland's CHWM and CDQs. This may include historical load data not
otherwise available to BP A and other data necessary to allow BP A to adjust
for weather normalization.
17.5 Transparency of Net Requirements Process
By July 31 of each Forecast Year, BPA shall make the following information
publicly available to Ashland and all other BP A regional utility customers
with a CHWM:
(1)
Ashland's measured Total Retail Load data for the previous two Fiscal
Years in monthly energy amounts and monthly customer-system peak
amounts, and
09PB-13002, Ashland
40
(2) Ashland's Dedicated Resources for the previous two Fiscal Years in
monthly energy and peak amounts as listed in section 5 of Exhibit A.
Ashland waives all claims of confidentiality regarding the data described
above.
17.6 Confidentiality
Before Ashland provides information to BP A that is confidential, or is
otherwise subject to privilege, or nondisclosure, Ashland shall clearly
designate such information as confidential. BP A shall notify Ashland as soon
as practicable of any request received under the Freedom of Information Act
(FOIA), or under any other federal law or court or administrative order, for
any confidential information. BP A shall only release such confidential
information to comply with FOIA or if required by any other federal law or
court or administrative order. BPA shall limit the use and dissemination of
confidential information within BPA to employees who need it for purposes of
administering this Agreement.
17.7 Resources Not Used to Serve Total Retail Load
Ashland shall list in section 6 of Exhibit A all Generating Resources and
Contract Resources Ashland owns that are (1) not Specified Resources listed
in section 2 of Exhibit A, and (2) greater than 200 kilowatts of nameplate
capability. At BP A's request Ashland shall provide BP A with additional data
if needed to verify the information listed in section 6 of Exhibit A.
18. CONSERVATION AND RENEWABLES
18.1 Conservation
18.1.1 Evaluations
At BPA's expense, BPA may conduct, and Ashland shall cooperate in,
conservation impact and project implementation process evaluations
to assess the amount, cost-effectiveness, and reliability of conservation
in BPA's or Ashland's service area.
BPA shall select the timing, frequency, and type of such evaluations.
BP A shall do so with reasonable consideration of Ashland's and
Ashland's consumers' needs.
18.1.2 Reporting Requirements
18.1.2.1 This section 18.1.2.1 does not apply if Ashland's Total Retail
Load from the most recent prior Fiscal Year is 25 annual
Average Megawatts or less, or if Ashland purchases all of its
power from BP A to serve its Total Retail Load. Beginning
June 1,2010, and no later than June 1 every two years
thereafter, Ashland shall submit a ten-year conservation plan
stating Ashland's projection of planned conservation,
including biennial conservation targets. This requirement
09PB-13002, Ashland
41
may be satisfied by submitting any plans Ashland prepares
in the normal course of business if the plans include, or are
supplemented by, the information required above. This
includes plans required under state law (such as the
Washington State Energy Independence Act (RCW 19.285)).
18.1.2.2 Ashland shall verify and report all cost-effective (as defined
by section 3(4) of the Northwest Power Act) non-BPA-funded
conservation measures and projects savings achieved by
Ashland through the Regional Technical Forum's Planning,
Tracking and Reporting System or its successor tool.
Verification protocols of conservation measures and projects,
reporting timelines and documentation requirements shall
comply with BP A's Energy Efficiency Implementation
Manual or its successor.
18.2 Renewable Resources
18.2.1 Renewable Energy Certificates
BPA shall transfer Renewable Energy Certificates (RECs), or their
successors, to Ashland in accordance with Exhibit H.
18.2.2 Reporting Requirements
This section 18.2.2 does not apply if Ashland's Total Retail Load is
25 annual Average Megawatts or less or if Ashland purchases all of its
power from BPA to serve its Total Retail Load. If Ashland's Total
Retail Load is above 25 annual Average Megawatts, the following
requirements may be satisfied by submitting plans and reports
Ashland prepares in the normal course of business as long as such
plans and reports include the information required below.
Beginning September 1, 2012, and by September 1 every year
thereafter, Ashland shall provide BP A with the following:
(1)
updated information on power forecasted to be generated over
the forthcoming calendar year by renewable resources with
nameplate capabilities greater than 200 kilowatts, including
net metered renewable resources operating behind the BP A
meter, used by Ashland to serve its Total Retail Load, under
Exhibit A. Such information shall include: project name, fuel
type(s), location, date power purchase contract signed, project
energization date, capacity, capacity factor, remaining term of
purchase (or if direct ownership remaining life of the project),
and the percentage of output that will be used to serve
Ashland's Total Retail Load that calendar year. Where
resources are jointly owned by Ashland and other customers
that have a CHWM Contract, Ashland may either submit a
09PB-13002, Ashland
42
report on behalf of all owners or identify the customer that will
submit the report;
(2) the amount of all purchases of RECs used to meet
requirements under state or federal law for the forthcoming
calendar year; and
(3) if Ashland is required under state law or by Transmission
Services to prepare long-term integrated resource plans or
resource forecasts, then Ashland shall provide Power Services
with updated copies of such or authorize Transmission Services
to provide them directly to Power Services.
19. RESOURCE ADEQUACY
By November 30,2010, and by November 30 each year thereafter, Ashland shall
provide to the Pacific Northwest Utilities Conference Committee (PNUCC), or its
successor, forecasted loads and resources data to facilitate a region-wide assessment
of loads and resources in a format, length of time, and level of detail specified in
PNUCC's Northwest Regional Forecast Data Request.
After consultation with the Regional Resource Adequacy Forum, or a successor, BPA
may require Ashland to submit additional data to the Northwest Power and
Conservation Council (Council) that BPA determines is necessary for the Council to
perform a regional resource adequacy assessment.
The requirements of this section 19 are waived if Ashland purchases from BP A all of
its power to serve its Total Retail Load.
20. NOTICES AND CONTACT INFORMATION
Any notice required under this Agreement that requires such notice to be provided
under the terms of this section shall be provided in writing to the other Party in one
of the following ways:
(1) delivered in person;
(2) by a nationally recognized delivery service with proof of receipt;
(3) by United States Certified Mail with return receipt requested;
(4) electronically, if both Parties have means to verify the electronic notice's
origin, date, time of transmittal and receipt; or
(5) by another method agreed to by the Parties.
Notices are effective when received. Either Party may change the name or address
for delivery of notice by providing notice of such change or other mutually agreed
method. The Parties shall deliver notices to the following person and address:
09PB-13002, Ashland
43
If to Ashland:
The City of Ashland, Oregon
90 N. Mountain Avenue
Ashland, OR 97520
Attn: Richard Wanderscheid
Director of Electric Utilities
Phone: 541-552-2061
FAX: 541-552-2436
E-Mail: wandersd@ashland.or.us
21. UNCONTROLLABLE FORCES
If to BPA:
Bonneville Power Administration
905 N.E. 11th Avenue
P.O. Box 3621
Portland, OR 97208
Attn: Tina G. Ko - PSW-6
Account Executive
Phone: 503-230-3555
FAX: 503-230-3242
E-Mail: tgko@bpa.gov
21.1 A Party shall not be in breach of an obligation under this Agreement to the
extent its failure to fulfill the obligation is due to an Uncontrollable Force.
"Uncontrollable Force" means an event beyond the reasonable control, and
without the fault or negligence, of the Party claiming the Uncontrollable
Force, that prevents that Party from performing its obligations under this
Agreement and which that Party could not have avoided by the exercise of
reasonable care, diligence and foresight. Uncontrollable Forces include each
event listed below, to the extent it satisfies the foregoing criteria, but are not
limited to these listed events:
(1) any curtailment or interruption of firm transmission service on BPA's
or a Third Party Transmission Provider's System that prevents
delivery of Firm Requirements Power sold under this Agreement to
Ashland;
(2) any failure of Ashland's distribution or transmission facilities that
prevents Ashland from delivering power to end-users;
(3) strikes or work stoppage;
(4) floods, earthquakes, other natural disasters, or terrorist acts; and
(5) final orders or injunctions issued by a court or regulatory body having
subject matter jurisdiction which the Party claiming the
Uncontrollable Force, after diligent efforts, was unable to have stayed,
suspended, or set aside pending review by a court having subject
matter jurisdiction.
21.2 Neither the unavailability of funds or financing, nor conditions of national or
local economies or markets shall be considered an Uncontrollable Force. The
economic hardship of either Party shall not constitute an Uncontrollable
Force. Nothing contained in this provision shall be construed to require
either Party to settle any strike or labor dispute in which it may be involved.
09PB-13002, Ashland
44
21.3 If an Uncontrollable Force prevents a Party from performing any of its
obligations under this Agreement, such Party shall:
(1) immediately notify the other Party of such Uncontrollable Force by
any means practicable and confirm such notice in writing as soon as
reasonably practicable;
(2) use commercially reasonable efforts to mitigate the effects of such
Uncontrollable Force, remedy its inability to perform, and resume full
performance of its obligation hereunder as soon as reasonably
practicable;
(3) keep the other Party apprised of such efforts on an ongoing basis; and
(4) provide written notice of the resumption of performance.
Written notices sent under this section must comply with section 20.
22. GOVERNING LAW AND DISPUTE RESOLUTION
This Agreement shall be interpreted consistent with and governed by federal law .
Ashland and BPA shall identify issue(s) in dispute arising out of this Agreement and
make a good faith effort to negotiate a resolution of such disputes before either may
initiate litigation or arbitration. Such good faith effort shall include discussions or
negotiations between the Parties' executives or managers. Pending resolution of a
contract dispute or contract issue between the Parties or through formal dispute
resolution of a contract dispute arising out of this Agreement, the Parties shall
continue performance under this Agreement unless to do so would be impossible or
impracticable. Unless the Parties engage in binding arbitration as provided for in
this section 22, the Parties reserve their rights to individually seek judicial
resolution of any dispute arising under this Agreement.
22.1 Judicial Resolution
Final actions subject to section 9( e) of the Northwest Power Act are not
subject to arbitration under this Agreement and shall remain within the
exclusive jurisdiction of the United States Court of Appeals for the Ninth
Circuit. Such final actions include, but are not limited to, the establishment
and the implementation of rates and rate methodologies. Any dispute
regarding any rights or obligations of Ashland or BP A under any rate or rate
methodology, or BPA policy, including the implementation of such policy,
shall not be subject to arbitration under this Agreement. For purposes of this
section 22, BP A policy means any written document adopted by BP A as a
final action in a decision record or record of decision that establishes a policy
of general application or makes a determination under an applicable statute
or regulation. If BP A determines that a dispute is excluded from arbitration
under this section 22, then Ashland may apply to the federal court having
jurisdiction for an order determining whether such dispute is subject to
nonbinding arbitration under this section 22.
09PB-13002, Ashland
45
22.2 Arbitration
Any contract dispute or contract issue between the Parties arising out of this
Agreement, which is not excluded by section 22.1 above, shall be subject to
arbitration, as set forth below.
Ashland may request that BP A engage in binding arbitration to resolve any
dispute. If Ashland requests such binding arbitration and BP A determines in
its sole discretion that binding arbitration of the dispute is appropriate under
BPA's Binding Arbitration Policy or its successor, then BPA shall engage in
such binding arbitration, provided that the remaining requirements of this
section 22.2 and sections 22.3 and 22.4 are met. BP A may request that
Ashland engage in binding arbitration to resolve any dispute. In response to
BPA's request, Ashland may agree to binding arbitration of such dispute,
provided that the remaining requirements of this section 22.2 and
sections 22.3 and 22.4 are met. Before initiating binding arbitration, the
Parties shall draft and sign an agreement to engage in binding arbitration,
which shall set forth the precise issue in dispute, the amount in controversy
and the maximum monetary award allowed, pursuant to BP A's Binding
Arbitration Policy or its successor.
Nonbinding arbitration shall be used to resolve any dispute arising out of this
contract that is not excluded by section 22.1 above and is not resolved via
binding arbitration, unless Ashland notifies BP A that it does not wish to
proceed with nonbinding arbitration.
22.3 Arbitration Procedure
Any arbitration shall take place in Portland, Oregon, unless the Parties agree
otherwise. The Parties agree that a fundamental purpose for arbitration is
the expedient resolution of disputes; therefore, the Parties shall make best
efforts to resolve an arbitrable dispute within one year of initiating
arbitration. The rules for arbitration shall be agreed to by the Parties.
22.4 Arbitration Remedies
The payment of monies shall be the exclusive remedy available in any
arbitration proceeding pursuant to this section 22. This shall not be
interpreted to preclude the Parties from agreeing to limit the object of
arbitration to the determination of facts. Under no circumstances shall
specific performance be an available remedy against BP A.
22.5 Finality
22.5.1 In binding arbitration, the arbitration award shall be final and
binding on the Parties, except that either Party may seek judicial
review based upon any of the grounds referred to in the Federal
Arbitration Act, 9 U.S.C. ~1-16 (1988). Judgment upon the award
rendered by the arbitrator(s) may be entered by any court having
jurisdiction thereof.
09PB-13002, Ashland
46
22.5.2 In nonbinding arbitration, the arbitration award is not binding on the
Parties. Each Party shall notify the other Party within 30 calendar
days, or such other time as the Parties otherwise agreed to, whether it
accepts or rejects the arbitration award. Subsequent to nonbinding
arbitration, if either Party rejects the arbitration award, either Party
may seek judicial resolution of the dispute, provided that such suit is
brought no later than 395 calendar days after the date the arbitration
award was issued.
22.6 Arbitration Costs
Each Party shall be responsible for its own costs of arbitration, including
legal fees. Unless otherwise agreed to by the Parties, the arbitrator(s) may
apportion all other costs of arbitration between the Parties in such manner as
the arbitrator(s) deem reasonable taking into account the circumstances of
the case, the conduct of the Parties during the proceeding, and the result of
the arbitration.
23. STATUTORY PROVISIONS
23.1 Retail Rate Schedules
Ashland shall make its retail rate schedules available to BP A, as required by
section 5(a) of the Bonneville Project Act, P.L. 75-329, within 30 days of each
of Ashland's retail rate schedule effective dates. This requirement may be
satisfied by Ashland informing BP A of its public website where such
information is posted and kept current.
23.2 Insufficiency and Allocations
IfBPA determines, consistent with section 5(b) of the Northwest Power Act
and other applicable statutes, that it will not have sufficient resources on a
planning basis to serve its loads after taking all actions required by
applicable laws then BPA shall give Ashland a written notice that BPA may
restrict service to Ashland. Such notice shall be consistent with BP A's
insufficiency and allocations methodology, published in the Federal Register
on March 20, 1996, and shall state the effective date of the restriction, the
amount of Ashland's load to be restricted and the expected duration of the
restriction. BP A shall not change that methodology without the written
agreement of all public body, cooperative, federal agency and investor-owned
utility customers in the Region purchasing federal power from BP A under
section 5(b) of the Northwest Power Act. Such restriction shall take effect no
sooner than five years after BP A provides notice to Ashland. If BP A imposes
a restriction under this provision then the amount of Firm Requirements
Power that BP A is obligated to provide and that Ashland is obligated to
purchase pursuant to section 3 and Exhibit C shall be reduced to the
amounts available under such allocation methodology for restricted service.
09PB-13002, Ashland
47
23.3 New Large Single Loads and CF/CTs
23.3.1 Determination of an NLSL
In accordance with BPA's NLSL Policy, BPA may determine that a
load is an NLSL as follows:
23.3.1.1 BPA shall determine an increase in production load to be an
NLSL if any load associated with a new facility, an existing
facility, or an expansion of an existing facility, which is not
contracted for, or committed to (CF/CT), as determined by the
Administrator, by a public body, cooperative, investor-owned
utility, or federal agency customer prior to September 1,
1979, and which will result in an increase in power
requirements of such customer of ten Average Megawatts
(87,600,000 kilowatt-hours) or more in any consecutive
12-month period.
23.3.1.2 For the sole purpose of computing the increase in energy
consumption between any two consecutive 12-month periods
of comparison under this section 23.3.1, reductions in the
end-use consumer's load associated with a facility during the
first 12-month period of comparison due to unusual events
reasonably beyond the control of the end-use consumer shall
be determined by BP A, and the energy consumption shall be
computed as if such reductions had not occurred.
23.3.1.3 The Parties may agree that the installed production
equipment at a facility will exceed ten Average Megawatts
consumption over any 12 consecutive months and such
agreement shall constitute a binding NLSL determination.
23.3.2 Determination of a Facility
BPA shall make a written determination as to what constitutes a
single facility, for the purpose of identifying an NLSL, based on the
following criteria:
(1)
whether the load is operated by a single end-use consumer;
(2)
whether the load is in a single location;
(3)
whether the load serves a manufacturing process which
produces a single product or type of product;
(4)
whether separable portions of the load are interdependent;
(5)
whether the load is contracted for, served or billed as a single
load under Ashland's customary billing and service policy;
(6)
consideration of the facts from previous similar situations; and
09PB-13002, Ashland
48
II ~
(7) any other factors the Parties determine to be relevant.
23.3.3 Administrative Obligations and Rights
23.3.3.1 Ashland's CF/CT loads and NLSLs are listed in Exhibit D.
23.3.3.2 Ashland shall provide reasonable notice to BP A of any
expected increase in a single load that may qualify as an
NLSL. The Parties shall list any such potential NLSLs in
Exhibit D. IfBPA determines that any load associated with a
single facility is capable of growing ten Average Megawatts or
more in a consecutive 12- month period, then such load shall
be subject to monitoring as determined necessary by BP A.
23.3.3.3 When BPA makes a request, Ashland shall provide physical
access to its substations and other service locations where
BPA needs to perform inspections or gather information for
purposes of implementing section 3(13) of the Northwest
Power Act, including but not limited to making a final NLSL,
facility, or CF/CT determination. Ashland shall make a
request to the end-use consumer to provide BPA, at
reasonable times, physical access to inspect a facility for
these purposes.
23.3.3.4 Unless the Parties agree pursuant to section 23.3.1.3 above,
BP A shall determine whether a new load or an increase in
existing load at a facility is an NLSL. If BP A determines that
the load is an NLSL, BP A shall notify Ashland and the
Parties shall add the NLSL to Exhibit D to reflect BP A's
determination.
23.3.4 Metering an NLSL
For any loads that are monitored by BP A for an NLSL determination,
and for any loads at any facility that is determined by BP A to be an
NLSL, BPA may, in its sole discretion, install BPA owned meters. If
the Parties agree otherwise, Ashland may install meters meeting the
exact specification BP A provides to Ashland. Ashland and BP A shall
enter into a separate agreement for the location, ownership, cost
responsibility, access, maintenance, testing, replacement and liability
of the Parties with respect to such meters. Ashland shall arrange for
metering locations that allow accurate measurement of the facility's
load. Ashland shall arrange for BP A to have physical access to such
meters and Ashland shall ensure BP A has access to all NLSL meter
data that BPA determines is necessary to forecast, plan, schedule, and
bill for power.
09PB-13002,Ashland
49
23.3.5 Undetermined NLSLs
If BP A does not determine at the outset that an increase in load is an
NLSL, then the Parties shall install metering equipment as required
by section 23.3.4 above, and BPA shall bill Ashland for the increase in
load at the applicable PF rate during any consecutive twelve-month
monitoring period. If BP A later determines that the increase in load
is an NLSL, then BPA shall revise Ashland's bill to reflect the
difference between the applicable PF rate and the applicable NR rate
in effect for the monitoring period in which the increase takes place.
Ashland shall pay that bill with simple interest computed from the
start of the monitoring period to the date the payment is made. The
daily interest rate shall equal the Prime Rate (as reported in the Wall
Street Journal or successor publication in the first issue published
during the month in which the monitoring period began) divided
by 365.
If BP A concludes in its sole judgment that Ashland has not fulfilled its
obligations, or has not been able to obtain access or information from
the end-use consumer under sections 23.3.3 and 23.3.4, BP A may
determine any load subject to NLSL monitoring to be an NLSL, in
which case Ashland shall be billed and pay in accordance with the last
two sentences of the preceding paragraph. Such NLSL determination
shall be final unless Ashland proves to BPA's satisfaction that the
applicable load did not exceed ten Average Megawatts in any
12-month monitoring period.
23.3.6 Service Election for an NLSL
Before the Parties add an NLSL to Exhibit D, Ashland shall elect, in
writing, to:
(1) have BPA serve the NLSL at the NR rate; or
(2) serve the NLSL with a Dedicated Resource in Exhibit A that is
not already being used to serve Ashland's firm consumer load
in the region.
This election shall be binding on Ashland for the remaining term of
this Agreement.
23.3.7 Consumer-Owned Resources Serving an NLSL
23.3.7.1 Renewable Resource/Cogeneration Exception
An end-use consumer served by Ashland, with a facility
whose load is, in whole or in part, an NLSL, may reduce its
NLSL to less than ten Average Megawatts in a consecutive
12-month period by applying an onsite renewable resource or
onsite cogeneration behind Ashland's meter to its facility
load. Ashland shall ensure that such resource is continuously
applied to serve the NLSL, consistent with BPA's
09PB-13002, Ashland
50
"Renew abIes and On-Site Cogeneration Option under the
NLSL Policy" portion of its Policy for Power Supply Role for
Fiscal Years 2007-2011, adopted February 4,2005, and the
NLSL policy included in BP A's Long Term Regional Dialogue
Final Policy, July 2007, as amended or replaced. If the NLSL
end-use consumer meets the qualification for the exception,
then the Parties shall: (1) list the Consumer-Owned
Resource serving the NLSL in section 7.4 of Exhibit A and
(2) amend. Exhibit D to add the onsite renewable resource or
cogeneration facility and the requirements for such service.
23.3.7.2 Consumer-Owned Resources that are not Renewable
Resources/Cogeneration
If Ashland serves an NLSL with a Consumer-Owned
Resource that does not qualify for the renewable resource or
cogeneration exception, the Parties shall list such Consumer-
Owned Resource serving the NLSL in section 7.4 of
Exhibit A.
23.4 Priority of Pacific Northwest Customers
The provisions of sections 9(c) and 9(d) of the Northwest Power Act and the
provisions of P.L. 88-552 as amended by the Northwest Power Act are
incorporated into this Agreement by reference. Ashland, together with other
customers in the Region, shall have priority to BP A power consistent with
such provisions.
23.5 Prohibition on Resale
Ashland shall not resell Firm Requirements Power except to serve Ashland's
Total Retail Load or as otherwise permitted by federal law .
23.6 Use of Regional Resources
23.6.1 Within 60 days prior to the start of each Fiscal Year, Ashland shall
provide notice to BP A of any Firm Power from a Generating Resource,
or a Contract Resource during its term, that has been used to serve
firm consumer load in the Region and that Ashland plans to export for
sale outside the Region in the next Fiscal Year. For purposes of this
section 23.6, "Firm Power" means electric power which is continuously
made available from Ashland's operation of generation or from its
purchased power, which is able to meet its Total Retail Load, except
when such generation or power is curtailed or restricted due to an
Uncontrollable Force. Firm Power includes firm energy and firm
peaking energy or both.
BP A may request and Ashland shall provide within 30 days of such
request, additional information on Ashland's sales and dispositions of
non-federal resources ifBPA has information that Ashland may have
made such an export and not notified BP A. BP A may request and
Ashland shall provide within 30 days of such request, information on
09PB-13002, Ashland
51
the planned use of any or all of Ashland Generating and Contract
Resources.
During any Purchase Period that Ashland has no purchase obligation
for Firm Requirements Power under section 3, Ashland shall have no
obligation to notify BP A of its exports under this section; provided,
however, Ashland shall provide notification of all applicable exports in
Purchase Periods when it has a purchase obligation.
23.6.2 Ashland shall be responsible for monitoring any Firm Power from
Generating Resources and Contract Resources it sells in the Region to
ensure such Firm Power is planned to be used to serve firm consumer
load in the Region.
23.6.3 If Ashland fails to report to BPA in accordance with section 23.6.1,
above, any of its planned exports for sale outside the Region of Firm
Power from a Generating Resource or a Contract Resource that ha~
been used to serve firm consumer load in the Region, and BP A makes
a finding that an export which was not reported was made, BP A shall
decrement the amount of its Firm Requirements Power sold under
this Agreement by the amount of the export that was not reported and
by any continuing export amount. Decrements under the preceding
sentence shall be first to power that would otherwise be provided at
Tier 1 Rates. When applicable, such decrements shall be identified in
section 3.2 of Exhibit A.
23.6.4 For purposes of this section 23.6, an export for sale outside the Region
means a contract for the sale or disposition of Firm Power from a
Generating Resource or a Contract Resource during its term that has
been used to serve firm consumer load in the Region, which contract
will be performed in a manner that such output is no longer used or
not planned to be used solely to serve firm consumer load in the
Region. Delivery of Firm Power outside the Region under a seasonal
exchange agreement that is made consistent with BPA's 5(b)/9(c)
Policy will not be considered an export. Firm Power from a
Generating Resource or a Contract Resource used to serve firm
consumer load in the Region means the firm generating or load
carrying capability of a Generating Resource or a Contract Resource
as established under PNCA resource planning criteria, or other
resource planning criteria generally used for such purposes within the
Region.
23.7 BPA Appropriations Refinancing
The Parties agree that the provisions of section 3201(i) of the Bonneville -
Power Administration Refinancing section of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (BPA Refinancing Act),
P.L. 104-134, 110 Stat. 1321, 350, as stated in the United States Code on the
Effective Date, are incorporated by reference and are a material term of this
Agreement.
09PB-13002, Ashland
52
24. STANDARD PROVISIONS
24.1 Amendments
Except where this Agreement explicitly allows for one Party to unilaterally
amend a provision or exhibit, no amendment of this Agreement shall be of
any force or effect unless set forth in writing and signed by authorized
representatives of each Party.
24.2 Entire Agreement and Order of Precedence
This Agreement, including documents expressly incorporated by reference,
constitutes the entire agreement between the Parties with respect to the
subject matter of this Agreement. It supersedes all previous
communications, representations, or contracts, either written or oral, which
purport to describe or embody the subject matter of this Agreement. The
body of this Agreement shall prevail over the exhibits to this Agreement in
the event of a conflict.
24.3 Assignment
This Agreement is binding on any successors and assigns of the Parties.
Neither Party may otherwise transfer or assign this Agreement, in whole or
in part, without the other Party's written consent. Such consent shall not be
unreasonably withheld. Without limiting the foregoing, BP A's refusal to
consent to assignment shall not be considered unreasonable if, in BPA's sole
discretion: (1) the sale of power by BPA to the assignee would violate any
applicable statute, or (2) such sale might adversely affect the tax-exempt
status of bonds issued as part of an issue that finances or refinances the
Columbia Generating Station or that such sale might limit the ability to issue
future tax-exempt bonds to finance or refinance the Columbia Generating
Station. Ashland may not transfer or assign this Agreement to any of its
retail consumers.
24.4 No Third-Party Beneficiaries
This Agreement is made and entered into for the sole benefit of the Parties,
and the Parties intend that no other person or entity shall be a direct or
indirect beneficiary of this Agreement.
24.5 Waivers
No waiver of any provision or breach of this Agreement shall be effective
unless such waiver is in writing and signed by the waiving Party, and any
such waiver shall not be deemed a waiver of any other provision of this
Agreement or of any other breach of this Agreement.
24.6 BPA Policies
Any reference in this Agreement to BP A policies, including any revisions,
does not constitute agreement of Ashland to such policy by execution of this
Agreement, nor shall it be construed to be a waiver of the right of Ashland to
seek judicial review of any such policy.
09PB-13002, Ashland
53
24.7 Rate Covenant and Payment Assurance
Ashland agrees that it shall establish, maintain and collect rates or charges
sufficient to assure recovery of its costs for power and energy and other
services, facilities and commodities sold, furnished or supplied by it through
any of its electric utility properties. BP A may require additional forms of
payment assurance if: (1) BPA determines that such rates and charges may
not be adequate to provide revenues sufficient to enable Ashland to make the
payments required under this Agreement, or (2) BP A identifies in a letter to
Ashland that BP A has other reasonable grounds to conclude that Ashland
may not be able to make the payments required under this Agreement. If
Ashland does not provide payment assurance satisfactory to BP A, then BP A
may terminate this Agreement. Written notices sent under this section must
comply with section 20.
25. TERMINATION
25.1 BPA's Right to Terminate
BP A may terminate this Agreement if:
(1) Ashland fails to make payment as required by section 16.4, or
(2) Ashland fails to provide payment assurance satisfactory to BP A as
required by section 24.7.
Such termination is without prejudice to any other remedies available to BP A
under law.
25.2 Customer's Right to Terminate
Ashland may provide written notice to terminate this Agreement not later
than 60 days after: (1) a Final FERC Order is issued declining to approve the
Tiered Rate Methodology (if BP A seeks FERC's confirmation and approval of
it), (2) FERC issues a final declaratory order finding that the TRM does not
meet cost recovery standards, or (3) FERC issues a Final FERC Order that
determines rates established consistent with the TRM cannot be approved
because the TRM precludes the establishment of rates consistent with cost
recovery. The notice shall include a date of termination not later than
90 days after the date of such notice. For purposes of this section 25.2, "Final
FERC Order" means a dispositive order by FERC on the merits, and does not
include any interim order. A dispositive order on the merits is, for purposes
of this section, final when issued and there is no need to await a FERC order
on rehearing before the decision is considered final.
09PB-13002, Ashland
54
26. SIGNATURES
The signatories represent that they are authorized to enter into this Agreement on
behalf of the Party for which they sign.
THE CITY OF ASHLAND, OREGON UNITED STATES OF AMERICA
Department of Energy
_4 Bonnevill~ Power Administration
By ~~~,,~ ,j~~_
/'
Name Martha Bennett Name Tina G. Ko
(Print I Type) (Print I Type)
Title
City Administrator
///~4J>'
Title Account Executive
Date
Date ~( () X
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_Final.DOC) 10/08/08
09PB-13002,Ashland
55
.-. --~-T ---
Exhibit A
NET REQUIREMENTS AND RESOURCES
1. NET REQUIREMENTS
Ashland's Net Requirement equals its Total Retail Load minus Ashland's Dedicated
Resources determined pursuant to section 3.3 of the body of this Agreement and
listed in sections 2, 3, and 4 of this exhibit. The Parties shall not add or remove
resource amounts to change Ashland's purchase obligations from BP A under
section 3.1 of the body of this Agreement except in accordance with sections 3.5 and
10 of the body of this Agreement.
2. LIST OF SPECIFIED RESOURCES
2.1 Generating Resources
Ashland does not have any Generating Resources that are Specified
Resources at this time.
2.2 Contract Resources
Ashland does not have any Contract Resources that are Specified Resources
at this time.
2.3 Small Non-Dispatchable Resources
All of Ashland's Small Non-Dispatchable Resources are listed below. If the
aggregate nameplate capability of Small Non-Dispatchable Resources that
are also New Resources exceeds one megawatt, then BPA shall consider the
impacts of the aggregate shape of such New Resources and may require the
application ofDFS to account for the impact of the aggregate shape on
Ashland's load.
(1) Reeder Gulch
(A)
Special Provisions
None.
(B)
Resource Profile
Date Resource Date of Percent of Nameplate
Fuel Type Dedicated to Resource Resource Used to Capability
Load Removal Serve Load (MW)
Hydro 01/01/1998 N/A 100% 0.8
Statutory DFS or IfPNCA, PNCA
Status Resource Status SCS? Dispatchable? PNCA? Updates?
5b1A I 5b1B Existing I New Yes I No Yes I No Yes I No Yes I No
I X X I I I X I X I
Note: Fill in the table above with "X"s.
09PB-13002,Ashland
lof9
--,--
(C) Specified Resource Amounts
Specified Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2012
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 48 51 68 79 84 94 97 78 65 38 0.159
LLH (MWh) 36 26 38 43 50 57 67 74 71 67 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2013
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 65 76 87 94 93 82 65 38 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2014
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 65 76 87 94 93 82 63 40 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2015
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 31 48 53 65 76 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 41 49 60 64 77 71 64 50 32 0.158
Peak (MW) 0.4 . 0.3 0.4 0.5 0.6 0.6 0.6 I 0.7 I 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2016
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 31 48 51 68 79 87 90 97 78 65 40 0.158
LLH (MWh) 34 27 38 43 50 57 64 77 71 67 47 32 0.157
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2017
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 48 51 65 79 84 94 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 49 57 67 74 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2018
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 46 53 65 79 84 94 97 78 65 38 0.158
LLH (MWh) 36 26 40 41 49 57 67 74 71 67 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2019
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 65 76 87 94 93 82 65 38 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2020
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 68 76 87 90 97 82 63 40 0.158
LLH (MWh) 34 26 40 41 50 60 64 77 71 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
2of9
Specified Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2021
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 31 48 51 65 79 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 43 49 57 64 77 71 64 50 32 0.157
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2022
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 45 32 48 51 65 79 87 90 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 49 57 64 77 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 I 0.3 N/A
Fiscal Year 2023
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 45 32 48 51 65 79 84 94 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 49 57 67 74 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2024
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLII (MWh) 45 32 46 53 68 76 87 94 93 82 65 38 0.159
LLH (MWh) 36 26 40 41 50 60 64 74 74 64 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2025
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 32 46 53 65 76 87 94 93 82 63 40 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2026
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 31 48 53 65 76 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 41 49 60 64 77 71 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2027
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 31 48 51 65 79 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 43 49 57 64 77 71 64 50 32 0.157
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2028
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLII (MWh) 45 32 48 51 68 79 84 94 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 50 57 67 74 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Notes: Fill in the table above with megawatt-hours rounded to whole megawatt-hours, with megawatts rounded to
one decimal place, and annual Average Megawatts rounded to three decimal places.
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
3of9
I -~--
3. UNSPECIFIED RESOURCE AMOUNTS
3.1 Unspecified Resource Amounts Used to Serve Total Retail Load
3.1.1 Shape of Unspecified Resource Amounts
Ashland's Unspecified Resource Amounts shall be calculated using the
selected monthly and Diurnal shapes listed below. BPA shall update
the table below consistent with section 3.4.2 of the body of this
Agreement.
Shape of Unspecified Resource Amounts
Monthly ShaDe Choice Diurnal ShaDe Choice
Total Retail Flat Annual HLH Diurnal Flat Within-
Purchase Period Load Monthly Shape Shape Month Shape
Shape
FY 2012 - FY 2014 X X
FY 2015 - FY 2019 X X
FY 2020 - FY 2024 X X
FY 2025 - FY 2028 X X
3.1.2 Unspecified Resource Amounts
Ashland does not have any Unspecified Resource Amounts at this
time.
3.2 Unspecified Resource Amounts for 9(c) Export Decrements
BP A shall insert a table below pursuant to section 3.5.3 of the body of this
Agreement.
4. DEDICATED RESOURCE AMOUNTS FOR AN NLSL
Ashland does not have any Dedicated Resource amounts serving an NLSL at this
time, in accordance with section 3.5.7 of the body of this Agreement.
5. TOTAL DEDICATED RESOURCE AMOUNTS
The amounts in the table below equal the sum of all resource amounts used to serve
Ashland's Total Retail Load listed above in sections 2, 3, and 4.
Total Dedicated Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2012
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
IILH (MWh) 45 32 48 51 68 79 84 94 97 78 65 38 0.159
LLH (MWh) 36 26 38 43 50 57 67 74 71 67 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2013
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
IILH (MWh) 47 32 46 53 65 76 87 94 93 82 65 38 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
4of9
I _.___u_
Total Dedicated Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2014
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 65 76 87 94 93 82 63 40 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2015
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 31 48 53 65 76 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 41 49 60 64 77 71 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2016
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 . 31 48 51 68 79 87 90 97 78 65 40 0.158
LLH (MWh) 34 27 38 43 50 57 64 77 71 67 47 32 0.157
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2017
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 48 51 65 79 84 94 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 49 57 67 74 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2018
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 46 53 65 79 84 94 97 78 65 38 0.158
LLH (MWh) 36 26 40 41 49 57 67 74 71 67 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2019
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 65 76 87 94 93 82 65 38 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2020
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 32 46 53 68 76 87 90 97 82 63 40 0.158
LLH (MWh) 34 26 40 41 50 60 64 77 71 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2021
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 47 31 48 51 65 79 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 43 49 57 64 77 71 64 50 32 0.157
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2022
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 48 51 65 79 87 90 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 49 57 64 77 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2023
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLH (MWh) 45 32 48 51 65 79 84 94 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 49 57 67 74 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
5of9
Total Dedicated Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2024
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLII (MWh) 45 32 46 53 68 76 87 94 93 82 65 38 0.159
UH (MWh) 36 26 40 41 50 60 64 74 74 64 47 34 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2025
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 32 46 53 65 76 87 94 93 82 63 40 0.158
LLH (MWh) 34 26 40 41 49 60 64 74 74 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2026
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 31 48 53 65 76 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 41 49 60 64 77 71 64 50 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2027
Total (MWh) 81 58 86 94 113 136 151 168 167 146 112 72 0.158
HLII (MWh) 47 31 48 51 65 79 87 90 97 82 63 40 0.159
LLH (MWh) 34 27 38 43 49 57 64 77 71 64 50 32 0.157
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Fiscal Year 2028
Total (MWh) 81 58 86 94 118 136 151 168 167 146 112 72 0.158
HLII (MWh) 45 32 48 51 68 79 84 94 97 78 65 40 0.158
LLH (MWh) 36 26 38 43 50 57 67 74 71 67 47 32 0.158
Peak (MW) 0.4 0.3 0.4 0.5 0.6 0.6 0.6 0.7 0.8 0.7 0.5 0.3 N/A
Notes: Fill in the table above with megawatt-hours rounded to whole megawatt-hours, with megawatts rounded to
one decimal place, and annual Average Megawatts rounded to three decimal places.
6. LIST OF RESOURCES NOT USED TO SERVE TOTAL RETAIL LOAD
Pursuant to section 17 of the body of this Agreement, Ashland does not own any
Generating Resources or Contract Resources that are (1) not Specified Resources
listed in section 2 of Exhibit A, and (2) greater than 200 kilowatts of nameplate
capability.
7. LIST OF CONSUMER-OWNED RESOURCES
7.1 Consumer-Owned Resources Serving Onsite Consumer Load
Pursuant to section 3.6 of the body of this Agreement, Ashland does not have
any Consumer-Owned Resources serving Onsite Consumer Load at this time.
7.2 Consumer-Owned Resources Serving Load Other than Onsite
Consumer Load
Pursuant to section 3.6 of the body of this Agreement, Ashland does not have
any Consumer-Owned Resources serving load other than Onsite Consumer
Load at this time.
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
6of9
7.3 Consumer-Owned Resources Serving Both Onsite Consumer Load
and Load Other than Onsite Consumer Load
Pursuant to section 3.6 of the body of this Agreement, Ashland does not have
any Consumer-Owned Resources serving both Onsite Consumer Load and
load other than Onsite Consumer Load at this time.
7.4 Consumer-Owned Resources Serving an NLSL
Pursuant to section 23.3.7 of the body of this Agreement, Ashland does not
have any Consumer-Owned Resources serving an NLSL at this time.
8. TABLES FOR ALLOWABLE DEDICATED RESOURCE SHAPES
8.1 Total Retail Load Monthly Shape
By March 31 immediately following each of the Fiscal Years 2010,2015, and
2020, BP A shall fill in the table below with Ashland's Total Retail Load
Monthly Shape, in accordance with section 3.4.2 of the body of this
Agreement. Ashland's Total Retail Load Monthly Shape shall be calculated
by dividing Ashland's Total Retail Load (in megawatt-hours) in each month of
Fiscal Years 2010, 2015, and 2020 by the Fiscal Year total of Ashland's Total
Retail Load (in megawatt-hours). BPA shall weather-normalize Ashland's
Total Retail Load data, prior to calculating the Total Retail Load Monthly
Shape, using the same weather-normalization procedures set forth in
section 4.1.1 of the TRM.
Total Retail Load Monthl'p Shape (%)
Oet Nov Dee Jan Feb Mar Apr May Jun Jul AUJl Sep Total
FY 2010 100.0
FY 2015 100.0
FY 2020 100.0
Note: Fill in the table above with percents rounded to the nearest one decimal place
8.2 ID.B Diurnal Shape
8.2.1 Specified Resources
If Ashland elects the HLH Diurnal Shape for its Specified Resources,
Ashland shall fill in a table with monthly LLH and HLH amounts for
each year of the upcoming Purchase Period for each Specified
Resource. The monthly LLH and HLH distributions shall be the same
across all years of a Purchase Period. Ashland shall submit the tables
to BP A when Ashland makes its reshaping elections. BP A shall
update the appropriate Dedicated Resource amounts pursuant to
Ashland's submitted elections and consistent with section 3.4.2 of the
body of this Agreement.
8.2.2 Unspecified Resource Amounts
If Ashland elects the HLH Diurnal Shape for its Unspecified Resource
Amounts, then Ashland shall submit to BPA in writing its elected
ratios of megawatt-hours per hour in HLH to megawatt-hours per
hour in LLH by the Notice Deadline. Ashland shall submit to BPA
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
7of9
twelve monthly ratios and such monthly ratios shall apply for all
years of the corresponding Purchase Period. BP A shall update the
table below pursuant to Ashland's submitted elections and consistent
with section 3.4.2 of the body of this Agreement. BPA shall calculate
Ashland's Unspecified Resource Amounts using the ratios in the table
below.
HLII Diurnal Shape for Unspecified Resource Amounts
HLII to LLH Ratios (HLII:LLH)
Purchase Period Oct Nov Dec Jan Feb Mar Apr May Jun Jul Ausr Sep
FY 2012 - FY 2014
FY 2015 - FY 2019
FY 2020 - FY 2024
FY 2025 - FY 2028
9. SUPER PEAK AMOUNTS
Ashland may reshape some or all of its HLH Dedicated Resource amounts for its
(1) Specified Resources listed in section 2 of this exhibit, except for any Small Non-
Dispatchable Resources and any Specified Resources Ashland is supporting with
DFS or SCS from BPA; and (2) Unspecified Resource Amounts listed in section 3.1.2
of this exhibit; into the Super Peak Period to receive a Super Peak Credit. BP A
shall update the table below consistent with section 3.4.4 of the body of this
Agreement.
Super Peak Amounts (MW)
Fiscal Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Year
2012
2013
2014
2015
2016
2017
2018 .
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Note: Fill in the table above with me~awatts rounded to the nearest three decimal places.
10. REVISIONS
BPA shall revise this exhibit to reflect (1) Ashland's elections regarding the
application and use of all resources owned by Ashland and Ashland's retail
09PB-13002, Ashland
Exhibit A, Net Requirements and Resources
Bof9
Exhibit B
mGH WATER MARKS AND CONTRACT DEMAND QUANTITIES
1. CONTRACT mGH WATER MARK (CHWM)
1.1 CHWMAmount
By September 15, 2011, BPA shall fill in the table below with Ashland's
CHWM. Once established, Ashland's CHWM shall not change for the term of
this Agreement except as allowed in section 1.2 of this exhibit.
CHWM (annual aMW): I
Note: BPA shall round the number in the table above
to three decimal places.
1.2 Changes to CHWM
If a change is made to Ashland's CHWM pursuant to this section 1.2, then
BP A shall determine and notify Ashland of the date such change will be
effective as follows:
1.2.1 If a load included in Ashland's Measured 2010 Load, as defined in the
TRM, is later found to have been an NLSL in FY 2010, then BPA shall
reduce Ashland's CHWM by the amount of the NLSL. BP A shall
notify Ashland 30 days prior to when the updated CHWM will become
effective. Ashland shall be liable for payment of any charges to adjust
for the ineligible Tier 1 PF rate purchases dating back to October 1,
2011.
1.2.2 If Ashland acquires an Annexed Load from a utility that has a
CHWM, then BP A shall increase Ashland's CHWM by adding part of
the other utility's CHWM to Ashland's CHWM. The CHWM increase
shall be effective on the date that Ashland begins service to the
Annexed Load. BP A shall establish the amount of the CHWM
addition as follows:
(1)
If Ashland and the other utility involved in the annexation
agree on the amount of the CHWM addition, then BP A shall
adopt that amount if BP A determines such amount is
reasonable.
(2)
If Ashland and the other utility cannot agree on the amount of
the CHWM addition, or if BP A determines the amount agreed
to in 1.2.2(1) of this exhibit is unreasonable, then the amount of
the CHWM addition shall equal the calculated amount below;
provided however, BPA may adjust the calculated amount
below to reflect the division of Dedicated Resources between
the utilities and other pertinent information advanced by
Ashland and the other utility:
09PB-13002, Ashland
lof3
Annexed Load minus annexed NLSLs, if any
Other utility's pre-annexation Total Retail
Load minus total NLSLs, if any
x
Other utility's pre-
annexation CHWM
1.2.3 If another utility with a CHWM annexes load of Ashland, then BP A
shall reduce Ashland's CHWM by adding part of Ashland's CHWM to
the other utility's CHWM. The CHWM reduction shall be effective on
the date that the other utility begins service to the Annexed Load.
BPA shall establish the amount of the CHWM reduction as follows:
(1) If Ashland and the other utility involved in the annexation
agree on the amount of the CHWM reduction, then BPA shall
adopt that amount if BP A determines such amount is
reasonable.
(2) If Ashland and the other utility cannot agree on the amount of
the CHWM reduction, or ifBPA determines the amount agreed
to in 1.2.3(1) of this exhibit is unreasonable, then the amount of
the CHWM reduction shall equal the calculated amount below;
provided however, BPA may adjust the calculated amount
below to reflect the division of Dedicated Resources between
the utilities and other pertinent information advanced by
Ashland and the other utility:
Annexed Load minus annexed NLSLs, if any
Ashland's pre-annexation Total Retail Load
minus total NLSLs, if any
x
Ashland's pre-
annexation CHWM
1.2.4 BPA may change Ashland's CHWM if BPA's Administrator
determines that BP A is reqUIred by court order about an Annexed
Load to make such changes. BP A shall determine the effective date of
such a change and shall update this exhibit with the changed CHWM.
2. CONTRACT DEMAND QUANTITIES (CDQs)
2.1 CDQ Amounts
By September 15, 2011, BPA shall fill in the table below with Ashland's
monthly CDQs. Calculation of such CDQs is established in the TRM.
Ashland's monthly CDQs shall not change for the term of this Agreement
except as allowed below.
kW
Note: BPA shall round the amounts in the table above to the nearest whole kilowatt.
09PB-13002,AsbJand
Exhibit B, High Water Marks and Contract Demand Quantities
2of3
2.2 Changes Due to Annexation
The Parties shall determine when changes to Ashland's CDQs, as allowed
below, will become effective.
2.2.1 If Ashland acquires an Annexed Load from a utility that has monthly
CDQs, then BPA shall increase Ashland's CDQ for each month by
adding the portion of the other utility's monthly CDQ that is
attributable to such Annexed Load. For each month, the sum of
Ashland's and the other utility's post-annexation CDQs shall not
exceed the sum of the pre-annexation CDQs for such utilities. BP A
shall establish the amount of the CDQ additions as follows:
(1) If Ashland and the other utility involved in the annexation
agree on the amounts of the CDQ additions, then BP A shall
adopt those amounts.
(2) If Ashland and the other utility cannot agree on the amounts of
the CDQ additions, then BP A shall determine the amounts
based on the monthly load factors of the Annexed Load.
2.2.2 If another utility with monthly CDQs annexes load of Ashland, then
BP A shall reduce Ashland's CDQ for each month by removing the
portion of Ashland's monthly CDQ that is attributable to the load that
was annexed. For each month, the sum of Ashland's and the other
utility's post-annexation CDQs shall not exceed the sum of the pre-
annexation CDQs for such utilities. BP A shall establish the amount of
the CDQ reductions as follows:
(1) If Ashland and the other utility involved in the annexation
agree on the amounts of the CDQ reductions, then BPA shall
adopt those amounts.
(2) If Ashland and the other utility cannot agree on the amounts of
the CDQ reductions, then BPA shall determine the amounts
based on the monthly load factors of the Annexed Load.
3. REVISIONS
BP A may revise this exhibit to the extent allowed in sections 1 and 2 of this exhibit.
All other changes shall be made by mutual agreement.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhB_Final.DOC) 10/08108
09PB-13002,A$h1and
Exhibit B, High Water Marks and Contract Demand Quantities
3of3
I -.---
Exhibit C
PURCHASE OBLIGATIONS
1. FIRM REQUIREMENTS POWER AT TIER 1 RATES
The portion of Ashland's purchase obligation that is priced at Tier 1 Rates is
established in section 8.1(1) of the body of this Agreement.
2. FIRM REQUIREMENTS POWER AT TIER 2 RATES
2.1 Notice to Purchase Zero Amounts at Tier 2 Rates
If Ashland elects not to purchase Firm Requirements Power at Tier 2 Rates
for a Purchase Period, then by March 31 immediately following the
corresponding Notice Deadline, BPA shall update this exhibit to indicate such
election by adding an "X" to the applicable cell in the following table. Such
election means that for the Purchase Period specified below, Ashland shall:
(1) purchase zero amounts of Firm Requirements Power at Tier 2 Rates, and
(2) serve all of its Above- RHWM Load that is greater than or equal to
8,760 megawatt-hours with power other than Firm Requirements Power.
Ashland may serve its Above-RHWM Load that is less than
8,760 megawatt-hours with power other than Firm Requirements Power.
Zero Tier 2 Purchase Period
FY 2012 - FY 2014
FY 2015 - FY 2019
FY 2020 - FY 2024
FY 2025 - FY 2028
2.2 Tier 2 Load Growth Rate
2.2.1 First Election Opportunity
If Ashland elects by the first Notice Deadline (November 1, 2009) to
purchase Firm Requirements Power at Tier 2 Load Growth Rates
starting October 1, 2011, then in its election Ashland shall elect one of
the three Tier 2 Load Growth Rate options listed in section 2.2.3 of
this exhibit. If Ashland elects Option 3, then Ashland shall state the
amounts to be listed in the table in section 2.2.3.3 of this exhibit and
Ashland's Tier 2 Short-Term Rate election pursuant to section 2.4.1 of
this exhibit. BPA shall amend this exhibit by March 31,2010, to
indicate Ashland's election by adding an "X" to the "1 at Notice
Deadline" box next to the applicable option below. If Ashland does not
elect to purchase Firm Requirements Power at Tier 2 Load Growth
Rates by the first Notice Deadline, then Ashland shall not have the
right to purchase Firm Requirements Power at Tier 2 Load Growth
Rates during the first Purchase Period.
09PB-13002, Ashland 1 of 10
2.2.2 Second Election Opportunity
2.2.2.1 If Ashland does not elect to purchase Firm. Requirements
Power at Tier 2 Load Growth Rates starting the first
Purchase Period, then Ashland may purchase Firm
Requirements Power at Tier 2 Load Growth Rates starting
October 1, 2014, provided:
2.2.2.2
2.2.2.3
2.2.2.4
(1) any elections of Tier 2 Rate alternatives or additions
of New Resources under this Agreement that extend
beyond the initial Purchase Period shall continue to
apply for their term, and
(2) the Tier 2 Load Growth Rate applicable under this
election may be different than the Tier 2 Load Growth
Rate that was available during the first Purchase
Period.
If Ashland elects by the second Notice Deadline
(September 30, 2011) to purchase Firm. Requirements Power
at Tier 2 Load Growth Rates, then in its election Ashland
shall elect one of the three Tier 2 Load Growth Rate options
listed in section 2.2.3 of this exhibit. In such case, Ashland
shall purchase Firm Requirements Power at Tier 2 Load
Growth Rates under such elected option starting October 1,
2014.
If Ashland elects Option 3, described in section 2.2.3.3 of this
exhibit, then Ashland shall state the amounts to be listed in
the table in section 2.2.3.3 of this exhibit and Ashland's
Tier 2 Short-Term. Rate election pursuant to section 2.4.1 of
this exhibit. If Ashland has prior elections of rate
alternatives or resource additions that extend beyond the
first Purchase Period, then Ashland shall not have the right
to elect Options lor 2 below. In such case, the amounts
listed in the table in section 2.2.3.3 of this exhibit shall not be
less than the sum of Ashland's prior elections for each year.
BPA shall amend this exhibit by March 31,2012, to indicate
Ashland's election by adding an "X" to the "2nd Notice
Deadline" box next to the applicable option below. If Ashland
does not elect to purchase Firm Requirements Power at
Tier 2 Load Growth Rates by the second Notice Deadline,
then Ashland shall not purchase Firm. Requirements Power
at Tier 2 Load Growth Rates for the term of this Agreement.
09PB-13002, Ashland
Exhibit C, Purchase Obligations
2 of 10
r~- -
2.2.3 Tier 2 Load Growth Rate Options
1st Notice Deadline 8 2.2.3.1 Option 1 - Full Tier 2 Load Growth Rate
2nd Notice Deadline If Ashland elects this option, then Ashland shall purchase Firm
Requirements Power at Tier 2 Load Growth Rates for all of
Ashland's Above-RHWM Load.
1st Notice Deadline 8 2.2.3.2 Option 2. Shared Rate Plan
2nd Notice Deadline
(1) Obligation
If Ashland elects this option, provided that BP A
determines Ashland qualifies under the limit for the
Shared Rate Plan as established in section 7 of the
TRM, then Ashland shall pay rates under the Shared
Rate Plan for Firm Requirements Power purchased
under this Agreement. If BP A determines Ashland does
not qualify under such limit, then Ashland shall not
have the right to elect this option and Ashland shall
purchase Firm Requirements Power at Tier 2 Load
Growth Rates under Option 1 as established in
section 2.2.3.1 of this exhibit. For the second election
opportunity stated in section 2.2.2 of this exhibit,
availability under the limit for the Shared Rate Plan
established in section 7 of the TRM shall equal such
limit minus the amounts used by other customers who
elected this Option 2 by the first Notice Deadline.
(2) Terminating Participation
Ashland may terminate participation in the Shared
Rate Plan by providing BP A notice in writing by
March 31 of a Forecast Year. In such case, the change
shall be effective the next Rate Period. If Ashland stops
participation in the Shared Rate Plan, then Ashland
shall not have the right to resume participation.
Ashland shall continue to purchase Firm Requirements
Power priced at Tier 2 Load Growth Rates for all of
Ashland's Above-RHWM Load.
1 st Notice Deadline
2nd Notice Deadline
8 2.2.3.3 Option 3 - Partial Tier 2 Load Growth Rate
If Ashland elects this option, then Ashland shall purchase Firm
Requirements Power at Tier 2 Load Growth Rates for all of
Ashland's Above- RHWM Load minus the amounts stated in the
table below that Ashland elects are not subject to Tier 2 Load
Growth Rates. Ashland shall establish such amounts at the
time Ashland elects this option and such amounts shall not
change for the term of this Agreement. Ashland may serve
such amounts with Dedicated Resources or with Firm
Requirements Power purchased at other Tier 2 Rates. BP A
09PB-13002, Ashland
Exhibit C, Purchase Obligations
3 of 10
,~
shall update the table below by March 31 immediately
following Ashland's election of this option.
Load Amounts Not Subject To Tier 2 Load Growth Rates (aMW)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020
Annual aMW
Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028
Annual aMW
Note: Fill in the table above with annual Average Megawatts rounded to
three decimal places.
2.2.4 Modification to Tier 2 Load Growth Rate Election
2.2.4.1 Notice
Ashland shall have the right to stop purchasing Firm Requirements
Power at Tier 2 Load Growth Rates effective the upcoming Rate
Period, except for the amount established in section 2.2.4.2 of this
exhibit. If Ashland chooses to modify its purchases at Tier 2 Load
Growth Rates in this manner, then Ashland shall notify BPA in
writing by October 31 of a Rate Case Year.
2.2.4.2 Continued Purchase Amount
For the remaining term of this Agreement, Ashland shall continue to
purchase at Tier 2 Load Growth Rates the amount of Firm
Requirements Power that Ashland purchased at Tier 2 Load Growth
Rates the year before the modification described above is effective.
2.2.4.3 Obligation to Apply Dedicated Resources
If Ashland provides notice to modify its purchases at Tier 2 Load
Growth Rates under section 2.2.4.1 of this exhibit, then for the
remainder of the effective Purchase Period and all of the next
Purchase Period, Ashland shall apply Dedicated Resources to serve
all of its Above-RHWM Load that is in excess of its commitment to
purchase at Tier 2 Load Growth Rates pursuant to 2.2.4.2.
2.2.4.4 Charges to Modify Tier 2 Load Growth Rate Purchase
Ashland shall be liable for payment of any costs that apply as a
result of Ashland modifying its Tier 2 Load Growth Rate purchase
obligation under this section 2.2.4. Such costs shall be those that
BPA: (1) is obligated to pay and will not recover from Ashland at
Tier 2 Load Growth Rates as a result of the modification, and (2) is
unable to recover through other transactions. BP A shall determine
such costs, if any, during the 7(i) Process that follows Ashland's
notice. If BP A determines that Ashland owes payment for such
costs, then Ashland shall pay the entire amount to BP A in no more
than 24 equal monthly amounts starting the first month of the
upcoming Rate Period. In no event shall BP A make payment to
Ashland as a result of Ashland modifying its Tier 2 Load Growth
Rate purchase obligation under this section 2.2.4.
09PB-13002,~h1and
Exhibit C, Purchase Obligations
4 of 10
2.2.4.5 Exhibit Update
By March 31 following Ashland's notice, BP A shall indicate
Ashland's election to modify its Tier 2 Load Growth Rate purchase
by filling in the table below. As established in section 2.2.4.2 of this
exhibit, Ashland shall continue to purchase the following amounts of
Firm Requirements Power at Tier 2 Load Growth Rates:
Continuinll Tier 2 Load Growth Rates Purchase ObliJ[ation
Fiscal Year 2012 2013 2014 2015 2016
aMW
Fiscal Year 2017 2018 2019 2020 2021
aMW
Fiscal Year 2022 2023 2024 2025 2026
aMW
Fiscal Year 2027 2028
aMW
Note: Fill in the table above with annual Average Megawatts, rounded
to three decimal places, for each year that follows Ashland's modification
be~ing with the effective year of modification
2.3 Tier 2 Vintage Rates
If Ashland elects Option 1 or 2 in section 2.2.3 of this exhibit, then this
section shall not apply. Otherwise:
2.3.1 Election Process
2.3.1.1
2.3.1.2
Right to Convert
Subject to the amounts of power BP A makes available at one
or more Tier 2 Vintage Rates, Ashland shall have the right to
convert some or all of the amounts of Firm Requirements
Power it has elected to purchase at Tier 2 Short-Term Rates,
as stated in section 2.4 of this exhibit, to an equal purchase
amount at Tier 2 Vintage Rates.
Statement of Intent
If Ashland elects to purchase Firm Requirements Power from
BPA at Tier 2 Vintage Rates, then Ashland shall sign a
Statement of Intent offered by BP A. "Statement of Intent"
means a statement prepared by BP A and signed by Ashland
that describes the approach and cost structure that will be
used for a specific Tier 2 Cost Pool. If BP A establishes a
Tier 2 Cost Pool for a Tier 2 Vintage Rate consistent with the
Statement of Intent, then Ashland agrees to have the portion
of its Tier 2 Rate power purchase specified in the Statement
of Intent priced at that rate. If BP A is unable to establish the
Tier 2 Cost Pool for the specific Tier 2 Vintage Rate, then
Ashland agrees to purchase such amount of Firm
09PB-13002, Ashland
Exhibit C, Purchase Obligations
5 of 10
Requirements Power at Tier 2 Short-Term Rates, except as
stated in section 2.3.1.5 of this exhibit.
2.3.1.3 Insufficient Availability
The Statement of Intent shall include procedures to allocate
between competing applications for a specific Tier 2 Cost Pool
if requests exceed amounts available.
2.3.1.4 Conversion Costs
Upon establishment of a Tier 2 Vintage Rate for which
Ashland signed a Statement of Intent, Ashland shall be liable
for payment of any outstanding costs under Tier 2 Short-
Term Rates that apply to Ashland. Such costs shall be those
that BPA: (1) is obligated to pay and will not recover from
Ashland under Tier 2 Short-Term Rates as a result of the
conversion, and (2) is unable to recover through other
transactions. BPA shall determine such costs, if any, in the
first 7(i) Process that establishes the applicable Tier 2
Vintage Rate. In no event shall BP A make payment to
Ashland as a result of Ashland's conversion of purchase
amounts at Tier 2 Short-Term Rates to purchase amounts at
Tier 2 Vintage Rates.
2.3.1.5 Additional Offerings
In addition to the right to convert to Tier 2 Vintage Rates
established in section 2.3.1.1 of this exhibit, Ashland may
have the opportunity to purchase Firm Requirements Power
at Tier 2 Vintage Rates regardless of whether Ashland is
purchasing at Tier 2 Short-Term Rates if:
(1) BPA determines, in its sole discretion, that all
requests for service at Tier 2 Vintage Rates by
purchasers of Firm Requirements Power at Tier 2
Short-Term Rates are able to be satisfied, and
(2) BPA determines, in its.sole discretion, to offer Ashland
a Statement of Intent that would provide Ashland the
opportunity to purchase Firm Requirements at Tier 2
Vintage Rates.
If Ashland signs a Statement of Intent offered by BP A
pursuant to this section 2.3.1.5, and ifBPA is unable to
establish the Tier 2 Cost Pool for the applicable Tier 2
Vintage Rate, then Ashland's current elections for service to
its Above-RHWM Load shall continue to apply.
Except as provided in this section 2.3.1, any election by
Ashland to purchase Firm Requirements Power at Tier 2
09PB-13002,Ash1and
Exhibit C, Purchase Obligations
6 of 10
Vintage Rates shall not relieve Ashland of any obligation to
purchase Firm Requirements Power at another Tier 2 Rate.
2.3.1.6 Exhibit Updates
By September 15 immediately following the establishment of
a Tier 2 Vintage Rate for which Ashland signed a Statement
of Intent, BP A shall amend this exhibit to show Ashland's
Tier 2 Vintage Rate purchases and remove Ashland's Tier 2
Short-Term Rate purchases by the amounts purchased at the
Tier 2 Vintage Rate, if Ashland is converting to the Tier 2
Vintage Rate from the Tier 2 Short-Term Rate. BP A shall
insert applicable tables, terms, and conditions for each Tier 2
Vintage Rate in section 2.3.2 of this exhibit.
2.3.2 Vintage Rate Elections
Ashland has no Tier 2 Vintage Rate elections at this time.
2.4 Tier 2 Short-Term Rate
If Ashland elects Option 1 or 2 in section 2.2.3 of this exhibit, then this
section shall not apply. Otherwise:
2.4.1 Short-Term Rate Purchases
Unless Ashland elects, in section 2.1 of this exhibit, not to purchase
Firm Requirements Power at Tier 2 Rates for a given Purchase Period,
by each Notice Deadline Ashland shall elect in writing either
Alternative A or B below for the duration of the corresponding
Purchase Period. If Ashland elects Alternative A and elects to apply
Dedicated Resources to serve its Above-RHWM Load, then Ashland
shall state the amounts to be listed in the table in section 2.4.1.1(2) of
this exhibit. If Ashland elects Alternative B, then Ashland shall state
the amounts to be listed in the table in section 2.4.1.3 of this exhibit.
By March 31 immediately following each Notice Deadline, BP A shall
update the tables in this section 2.4.1 to show Ashland's Tier 2 Short-
Term Rate election for the corresponding Purchase Period.
2.4.1.1 Alternative A - Customer Planned Load Not Otherwise
Served
If Ashland elects this alternative, then Ashland shall
purchase Firm Requirements Power priced at Tier 2 Short-
Term Rates to serve all of Ashland's Above-RHWM Load that
Ashland has not otherwise agreed to serve with:
(1)
Firm Requirements Power purchased at other Tier 2
Rates, or
(2)
the amounts of Dedicated Resources, stated in the
table below, that Ashland shall apply during the
Purchase Period to serve its Above-RHWM Load. If
Ashland purchases power at Tier 2 Load Growth
09PB-13002, Ashland
Exhibit C, Purchase Obligations
7 of 10
2.4.1.2
2.4.1.3
Rates, then these Dedicated Resource amounts shall
not exceed the amounts stated in the table in
section 2.2.3.3 of this exhibit.
Purchase Period non-Federal Resource Elections
Fiscal Year 2012 2013 2014 2015 2016
Election
Fiscal Year 2017 2018 2019 2020 2021
Election
Fiscal Year 2022 2023 2024 2025 2026
Election
Fiscal Year 2027 2028
Election
Note: Insert amounts in Average Megawatts rounded to
three decimal places for each year of the applicable Purchase
Period.
Alternative B - Limited Amounts
If Ashland elects this alternative, then Ashland shall
purchase Firm Requirements Power at Tier 2 Short-Term
Rates to serve Ashland's Above-RHWM Load that Ashland
has not otherwise agreed to serve with Firm Requirements
Power purchased at other Tier 2 Rates; provided however,
that amounts purchased at Tier 2 Short-Term Rates shall not
exceed the amounts (including zero amounts) stated in the
table in section 2.4.1.3 of this exhibit. Ashland agrees to
serve any of its remaining Above-RHWM Load with power
other than Firm Requirements Power.
Tier 2 Short-Term Rate Elections
If Ashland elects Alternative A above, then BP A shall
indicate that election by adding an "X" to the table below for
each year of the applicable Purchase Period. If Ashland
elects Alternative B above, then BP A shall indicate that
election by adding amounts (in Average Megawatts rounded
to three decimal places) to the table below for each year of the
applicable Purchase Period.
Tier 2 Short-Term Rate Table
Fiscal Year 2012 2013 2014 2015 2016
Election
Fiscal Year 2017 2018 2019 2020 2021
Election
Fiscal Year 2022 2023 2024 2025 2026
Election
Fiscal Year 2027 2028
Election
09PB-13002,~hland
Exhibit C, Purchase Obligations
8 of 10
2.4.2 Right to Reduce Tier 2 Short-Term Rate Purchase Amounts
2.4.2.1 Notice
If Ashland notifies BP A in writing by October 31 of a Rate
Case Year, then Ashland may reduce, in equal amounts for
all hours of the year, some or all of the amounts of Firm
Requirements Power that Ashland is obligated to purchase at
Tier 2 Short-Term Rates. The reduction may take effect in
either year of the upcoming Rate Period and shall be effective
for the remaining duration of the applicable Purchase
Period(s). In its written notice, Ashland shall state the
amount of the reduction and the date the reduction shall take
effect. Ashland shall replace all reduced Tier 2 Short-Term
Rate purchase amounts with amounts of Dedicated Resources
applied pursuant to section 3.3 of the body of this Agreement.
2.4.2.2 Charges to Reduce Purchase Amounts
Ashland shall be liable for payment of any costs that apply as
a result of Ashland reducing, under section 2.4.2.1 of this
exhibit, the amounts of Firm Requirements Power that
Ashland is obligated to purchase at Tier 2 Short-Term Rates.
Such costs shall be those that BPA: (1) is obligated to pay
and will not recover from Ashland under Tier 2 Short-Term
Rates as a result of the reduction, and (2) is unable to recover
through other transactions. BP A shall determine such costs,
if any, during the 7(i) Process that follows Ashland's notice.
If BP A determines that Ashland owes payment for such costs,
then Ashland shall pay the entire amount to BP A in no more
than 24 equal monthly amounts starting the first month of
the upcoming Rate Period. In no event shall BP A make
payment to Ashland as a result of Ashland reducing the
amounts of Firm Requirements Power that Ashland is
obligated to purchase at Tier 2 Short-Term Rates.
2.4.2.3 Exhibit Updates
By March 31 following Ashland's notice, BP A shall revise this
exhibit and Exhibit A to show Ashland's reduced Tier 2
Short-Term Rate purchase amounts and Ashland's Dedicated
Resource additions.
2.5 Amounts of Power to be Billed at Tier 2 Rates
2.5.1 Treatment for FY 2012 - FY 2013
By March 31, 2010, BPA shall update the table in section 2.5.2 of this
exhibit, consistent with Ashland's elections, with amounts of Firm
Requirements Power which Ashland shall purchase at applicable
Tier 2 Rates for the FY 2012 - FY 2013 Rate Period.
09PB-13002,A$hland
Exhibit C, Purchase Obligations
9 of 10
2.5.2 Amounts of Power for Subsequent Rate Periods
For each Rate Period after the FY 2012 - FY 2013 Rate Period, BPA
shall establish for the upcoming Rate Period consistent with Ashland's
elections: (1) the planned annual average amounts of Firm
Requirements Power which Ashland shall purchase at applicable
Tier 2 Rates, and (2) any remarketed Tier 2 Rate purchase amounts in
accordance with section 10 of the body of this Agreement. By
March 31, 2013, and by March 31 of each Rate Case Year thereafter,
BP A shall update the table below with such amounts for each year of
the upcoming Rate Period.
Annual Amounts Priced at Tier 2 Rates (aMW)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020
No Tier 2 at this
time
Remarketed
Amounts
Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028
No Tier 2 at this
time
Remarketed
Amounts
Notes:
1. List each applicable Tier 2 rate in the table above. For the first applicable Tier 2 rate
replace No Tier 2 at this time with the name of the applicable Tier 2 rate. For each
additional Tier 2 rate, add a new row above the Remarketed Amounts row. If Ashland
elects not to purchase at Tier 2 rates, then leave No Tier 2 at this time in the table and
leave the remainder of the table blank.
2. Fill in the table above with annual Average Megawatts rounded to three decimal places.
3. MONTHLYPFRATES
Applicable monthly Tier 1 and Tier 2 Rates are specified in BP A Wholesale Power
Rate Schedules and GRSPs.
4. REVISIONS
BP A shall revise this exhibit to reflect Ashland's elections regarding service to its
Above-RHWM Load and BPA's determinations relevant to this exhibit and made in
accordance with this Agreement.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhC_Final.DOC) 10108108
09PB-13002,Ashland
Exhibit C, Purchase Obligations
10 of 10
Exhibit D
ADDITIONAL PRODUCTS AND SPECIAL PROVISIONS
1. CF/CT AND NEW LARGE SINGLE LOADS
1.1 CF/CT Loads
Ashland has no loads identified that were contracted for, or committed to
(CF/CT), as of September 1, 1979, as defined in section 3(13)(A) of the
Northwest Power Act.
1.2 Potential NLSLs
Ashland has no identified potential NLSLs.
1.3 Existing NLSLs
Ashland has no existing NLSLs.
2. RESOURCE SUPPORT SERVICES
2.1 BPA shall develop the RSS products to support applicable Specified
Resources listed in section 2 of Exhibit A for the FY 2012-2014 Purchase
Period and offer such as a revision to this exhibit by August 1, 2009. Prior to
that date, BP A shall provide Ashland a reasonable opportunity to provide
input into the development of the products and the related contract
provisions. If Ashland requests that BP A provide such service, then the
Parties shall execute a revision to this exhibit by the November 1, 2009,
Notice Deadline. By each Notice Deadline thereafter, Ashland may purchase
RSS from BP A to support applicable Specified Resources listed in section 2 of
Exhibit A for the corresponding Purchase Period.
2.2 If Ashland adds a new Specified Resource within a Purchase Period to meet
its obligations to serve Abbve- RHWM Load with Dedicated Resources,
consistent with section 3.5.1 of the body of this Agreement, Ashland may
purchase RSS from BP A to support such resource. Such purchase shall be for
the remainder of the Purchase Period and for the following Purchase Period.
Ashland shall notify BP A of its decision to purchase RSS for a new Specified
Resource by October 31 of a Rate Case Year and the elected RSS will be
effective at the start of the upcoming Rate Period.
3. IUEVISIONS
This exhibit shall be revised by mutual agreement of the Parties to reflect additional
products Ashland purchases during the term of this Agreement.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhD _Final. DOC) 10/08108
09PB-l3002, Ashland
lofl
Exhibit E
METERING
1. METERING
1.1 Directly Connected Points of Delivery and Load Metering
None.
1.2 Transfer Points of Delivery and Load Metering
(1) BPA POD Name: Ashland 12.5 kV;
BPA POD Number: 482;
WECC Balancing Authority: PACW;
Location: the point in PacifiCorp's Ashland Substation where the
12.5 kV facilities of PacifiCorp and Ashland are connected;
Voltage: 12.5 kV;
Metering: in PacifiCorp's Ashland Substation in the 12.5 kV circuit
over which such electric power flows;
BPA Meter Point Name: Ashland Out;
BPA Meter Point Number: 575;
Direction for PF Billing Purposes: Positive;
Manner of Service: Transfer, PAC to Ashland;
Metering Loss Adjustment: None;
Exception: None.
(2) BPA POD Name: Mountain Avenue 12.5 kV;
BPA POD Number: 968;
WECC Balancing Authority: PACW;
Location: the point in BPA's Mountain Avenue Substation where the
12.5 kV facilities of BPA and Ashland are connected;
Voltage: 12.5 kV;
Metering: in BPA's Mountain Avenue Substation in the 12.5 kV
circuit over which such electric power flows;
BPA Meter Point Name: Mountain Avenue Out;
BPA Meter Point Number: 1820;
Direction for PF Billing Purposes: Positive;
Manner of Service: Transfer , PAC to Ashland;
09PB-13002,A$hland
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,----
Metering Loss Adjustment: None;
Exception: None.
(3) BPA POD Name: Oak Knoll 12.5 kV;
BPA POD Number: 497;
WECC Balancing Authority: PACW;
Location: the point in PacifiCorp's Oak Knoll Substation where the
12.5 kV facilities of PacifiCorp and Ashland are connected;
Voltage: 12.5 kV;
Metering: in PacifiCorp's Oak Knoll Substation in the 12.5 kV circuit
over which such electric power flows;
(A) BPA Meter Point Name: Ashland/Oak Knoll Hwy 66 #1 Out;
BPA Meter Point Number: 1014;
Direction for PF Billing Purposes: Positive;
Manner of Service: Transfer, PAC to Ashland;
(B) BPA Meter Point Name: Ashland/Oak Knoll Hwy 99 #2 Out;
BPA Meter Point Number: 1304;
Direction for PF Billing Purposes: Positive;
Manner of Service: Transfer , PAC to Ashland;
(C) BPA Meter Point Name: Ashland/Oak Knoll E. Main #3 Out;
BPA Meter Point Number: 1705;
Direction for PF Billing Purposes: Positive;
Manner of Service: Transfer , PAC to Ashland;
Metering Loss Adjustment: None;
Exception: This POD is subject to charges for Low Voltage Delivery
established in section 14.6.2 of the body of this Agreement.
1.3 Resource Locations and Metering
(1) Resource Name: Ashland Solar Project
Metering: in <<Owner's Name>>'s <<Substation Name>> TBD* in the
12.5 kV circuit<<s>> over which such electric power flows;
BPA Meter Point Name: Ashland Solar Project;
BPA Meter Point Number: TBD*
Direction for PF Billing Purposes: Positive;
Manner of Service: TBD*
09PB-13002,ABhland
Exhibit E, Metering
2of3
1---
Metering Loss Adjustment: BP A shall adjust for losses between
the Ashland Solar POM. Such adjustments shall be specified in
written correspondence between BP A and Ashland;
Exception: None.
(2) Resource Name: Reeder Hydroelectric Project
Metering: in <<Owner's Name>>'s <<Substation Name>> TBD* in the
12.5 kV circuit<<s>> over which such electric power flows;
BP A Meter Point Name: Reeder Hydroelectric Project;
BPA Meter Point Number: TBD*
Direction for PF Billing Purposes: Positive;
Manner of Service: TBD*
Metering Loss Adjustment: BP A shall adjust for losses between
the Reeder Hydroelectric Project POM. Such adjustments shall be
specified in written correspondence between BP A and Ashland;
Exception: None.
TBD* = These data elements are unresolved and shall be determined by BPAprior to June 1,2011.
2. REVISIONS
Each Party shall notify the other in writing if updates to this exhibit are necessary to
accurately reflect the actual characteristics of POD and meter information described
in this exhibit. The Parties shall revise this exhibit to reflect such changes. The
Parties shall mutually agree on any such exhibit revisions and agreement shall not
be unreasonably withheld or delayed. The effective date of any exhibit revision shall
be the date the actual circumstances described by the revision occur.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhE_Final.DOC) 10/08108
09PB-13002, Ashland
Exhibit E, Metering
3of3
I~
Exhibit F
TRANSMISSION SCHEDULING SERVICE
1. PURPOSE AND PARAMETERS
1.1 Purpose
Transmission Scheduling Service is provided by Power Services to help
Ashland manage certain aspects of its BP A Network Integration
Transmission Service Agreement (BPA NT Agreement), to allow BPA to use
the inherent resource flexibilities of Ashland's network rights in combination
with other network customers rights to manage BP A's power resources
efficiently, and to provide seamless scheduling for Transfer Service
customers.
1.2 Parameters of Transmission Scheduling Service
Beginning October 1, 2011, and through the term of this Agreement, Power
Services shall provide and Ashland shall purchase Transmission Scheduling
Service. Power Services shall schedule Ashland's federal and Dedicated
Resources to Ashland's Total Retail Load under Ashland's BPA NT
Agreement and/or other transmission agreement(s). Power Services shall not
provide Transmission Scheduling Service for anything other than delivery to
Ashland's Total Retail Load.
Power Services shall perform all necessary prescheduling and real-time
scheduling functions, and make other arrangements and adjustments
consistent with any RSS products Ashland is purchasing from Power
Services. Ashland shall continue to be responsible for all non-scheduling
provisions of its transmission agreement(s) used to serve Ashland's Total
Retail Load including, but not limited to, the designation and undesignation
of Network Resources, as defined by the applicable OATT.
Transmission Scheduling Service shall be subject to the rates, terms and
conditions specified in BP A's applicable Wholesale Power Rate Schedules and
GRSPs.
2. ASSIGNMENT OF SCHEDULING RIGHTS
Prior to commencement of Transmission Scheduling Service, Ashland shall:
(1) notify Transmission Services that Power Services is the scheduling entity for
service taken under Ashland's BP A NT Agreement;
(2) assign Power Services the right to acquire and manage secondary service
pursuant to section 28.4 of the BPA OATT as necessary to fulfill BPA's
obligations under this Agreement; and
(3) provide copies of Ashland's transmission agreement(s) used to serve
Ashland's Total Retail Load.
09PB-13002,ABhland
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Additionally, over the term of this Agreement, Ashland shall provide Power Services
with any additional transmission agreements Ashland enters into which are used for
service to its Total Retail Load and all amendments and modifications to current
copies of Ashland's transmission agreement(s).
3. LOAD FORECAST
If a daily load forecast is required by Ashland's transmission agreement(s), then
BP A shall develop the daily and hourly load forecasts for Ashland's Total Retail
Load. Ashland shall cooperate with BP A in all load forecasting. If any load specific
information is needed for developing daily or hourly load forecast, then Ashland
shall provide such information in a timely manner.
4. SCHEDULING OF ASHLAND'S DEDICATED RESOURCES
4.1 Pre scheduling
Ashland shall submit a delivery schedule to Power Services for its Dedicated
Resources for delivery to its Total Retail Load which shall include
information such as the source, the point of receipt, any OASIS reservation
reference numbers needed for the delivery of non-federal power, the daily
megawatt profile and all purchasing selling entities in the path. This
delivery schedule shall be submitted to Power Services before the earliest of:
(1) 0800 hours Pacific Prevailing Time (PPT) on preschedule day, or
(2) one hour prior to the earliest of the transmission prescheduling
deadlines associated with Ashland's transmission agreement(s)
delivery of power to Ashland's Total Retail Load.
Ashland shall submit all required prescheduled information in a format
specified by Power Services.
At Power Services' request, Ashland shall provide Power Services
information on real power losses associated with Ashland's transmission
agreement(s).
4.2 Real-Time Scheduling
Power Services shall accept megawatt adjustments to Ashland's Dedicated
Resource schedule(s) up to the earliest of 45 minutes prior to the hour of
delivery or 25 minutes prior to the earliest of the transmission real-time
scheduling deadlines associated with delivery of power to Ashland's Total
Retail Load.
Ashland shall submit all required real-time scheduling information in a
format specified by Power Services.
4.3 Transmission Curtailments and Generation Outages
This section 4.3 shall not apply to Ashland if Ashland has acquired Forced
Outage Reserve Service or the Transmission Curtailment Management
Service from Power Services.
09PB-13002, Ashland
Exhibit F, Transmission Scheduling Service
2of4
Ashland shall notify BPA whether it wants to receive either an electronic
copy of the E-Tag or an e-mail of a transmission curtailment that impacts any
of Ashland's Dedicated Resources. If Ashland chooses notification of
transmission curtailments bye-mail, then Ashland shall provide BPA a
single e-mail address for BPA to send such notifications to, and the Parties
shall revise this exhibit to include the e-mail address. BPA shall notify
Ashland within ten minutes of the transmission curtailment.
(1) If a transmission curtailment or generation outage occurs prior to
45 minutes before the hour of delivery, then Ashland shall be
responsible for securing replacement energy, arranging delivery to the
BP A Balancing Authority Area in which Ashland is located, and
notifying Power Services of the revised delivery schedule prior to
45 minutes before the hour of delivery.
If Power Services is unable to secure secondary network transmission
for the replacement resource because Ashland did not notify Power
Services of the revised delivery schedule prior to 45 minutes prior to
the hour of delivery or secondary network transmission is unavailable,
then Ashland shall be subject to charges consistent with the
provisions of this Agreement and all related products and BPA's rate
schedules, including UAI charges.
(2) Power Services shall not accept replacement delivery schedules for
transmission curtailments or generation outages that occur after
45 minutes before the delivery hour. Ashland shall be subject to
charges consistent with the provisions of this Agreement and all
related products and BP A's rate schedules, including UAI charges.
5. E-TAGS
To the extent E- Tags are required by transmission provider(s), Power Services shall
create all E- Tags necessary for delivery of energy to Ashland's Total Retail Load.
6. GENERATION IMBALANCE
Ashland shall be responsible for costs associated with deviations between the
scheduled Dedicated Resources for an hour and the actual generation produced
across such hour; provided, however, if Ashland submits a delivery schedule
consistent with all provisions of this exhibit and BP A receives that delivery
schedule, and a generation imbalance results from the BPA error, then BPA shall
accept responsibility for the generation imbalance associated with the BP A
scheduling error.
7. PENALTIES
If Ashland fails to submit prescheduling or real-time scheduling information to BPA
as required and by the deadlines in section 4 of this exhibit, then Ashland may be
subject to applicable UAI charges, consistent with BP A's applicable Wholesale
Power Rate Schedules and GRSPs.
09PB-13002,Ashland
Exhibit F, Transmission Scheduling Service
3of4
----.---- -~-
8. AFTER THE FACT
BPA and Ashland agree to reconcile all transactions, schedules and accounts at the
end of each month (as early as possible within the first ten calendar days of the next
month). BP A and Ashland shall verify all transactions pursuant to this Agreement
as to product or type of service, hourly amounts, daily and monthly totals, and
related charges.
9. REVISIONS
BP A may unilaterally revise this exhibit:
(1) to implement changes that BPA determines are necessary to allow it to meet
its power and scheduling obligations under this Agreement, or
(2) to comply with requirements of WECC, NAESB, or NERC, or their successors
or assigns.
BP A shall provide a draft of any material revisions of this exhibit to Ashland, with a
reasonable time for comment, prior to BP A providing written notice of the revision.
Revisions are effective 45 days after BP A provides written notice of the revisions to
Ashland unless, in BPA's sole judgment, less notice is necessary to comply with an
emergency change to the requirements ofWECC, NAESB, NERC, or their
successors or assigns. In this case, BP A shall specify the effective date of such
revisions.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhF _Final.DOC) 10108108
09PB-13002, Ashland
Exhibit F, Transmission Scheduling Service
4of4
Exhibit G
PRINCIPLES OF NON-FEDERAL TRANSFER SERVICE
As provided by section 14.6.7 of the body of this Agreement and BPA's Long-Term Regional
Dialogue Final Policy, July 2007, or any other later revision of that policy, if Ashland
acquires non-federal resources to serve its retail load above its established RHWM, then
BPA's support and assistance to Ashland regarding transfer service for its non-federal
resources shall be consistent with the following principles:
1. ESTABLISHED CAPS AND LIMITATIONS
BP A shall provide financial support for the transmission capacity associated with
non-federal resource purchases to all Transfer Service customers up to a maximum
of 41 megawatts per fiscal year, cumulative over the duration of this Agreement.
This cumulative megawatt limit is shown in the table below.
Per Year Cumulative
Fiscal Year MW Limit MW Limit
FY 2012 41 41
FY 2013 41 82
FY 2014 41 123
FY 2015 41 164
FY 2016 41 205
FY 2017 41 246
FY 2018 41 287
FY 2019 41 328
FY 2020 41 369
FY 2021 41 410
FY 2022 41 451
FY 2023 41 492
FY 2024 41 533
FY 2025 41 574
FY 2026 41 615
FY 2027 41 656
FY 2028 41 697
2. Application of section 14.6.7 of the body of this Agreement shall be on a first come,
first served basis in each year based on the date each request is received by BP A.
Requests not met, in whole or in part, in any Fiscal Year will have priority over
subsequent requests the following year. Once granted, BP A shall honor such
request for the duration of the resource acquisition period, not to exceed the term of
this Agreement.
3. PROCESS AND PARAMETERS FOR INITIALLY CHOOSING A NON-
FEDERAL RESOURCE
3.1 BP A obtains Transfer Service from Third Party Transmission Providers
pursuant to OATT Network Integration Transmission Service. Additionally,
BP A acquires firm transmission for all load service obligations incurred.
09PB-13002, Ashland
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Therefore, BP A shall, on behalf of Ashland, pursue Network Resource
designation, as defined in the FERC OATT for Ashland's non-federal
resource. BP A shall provide all information the Third Party Transmission
Provider requires to evaluate the Network Resource designation request.
Ashland shall provide all relevant information BP A determines is required to
submit an application for designation of the resource as a Network Resource
per section 29 of the OATT, or its successor.
3.2 Ashland shall notify BPA of its intent and/or actions to acquire or purchase a
non-federal resource at least one year prior to delivery. Such acquisition or
purchase shall be for a period of no less than one year in duration.
3.3 If BPA's existing Transfer Service to Ashland is pursuant to a non-OATT
contractual arrangement, then BP A shall pursue all reasonable
arrangements, including but not limited to OATT service, sufficient to enable
Ashland to utilize the non-federal resource to serve its load.
3.4 BPA shall not be liable to Ashland in the event that Network Resource
designation cannot be obtained.
3.5 BPA shall only obtain or pay for Transfer Service for Ashland's non-federal
resource if it is designated as a Network Resource under the Third Party
Transmission Provider's OATT with a commitment of at least one year. The
limitations in this principle 3 do not pertain to market purchases and the use
of secondary network transmission, which are addressed below in
principle 15.
4. Ashland. shall provide BP A all information BP A determines is reasonably necessary
to administer firm network transmission service over the Third Party Transmission
Provider's system.
5. BP A shall pay only the capacity costs associated with transmission service to
Ashland over transmission facilities of the Third Party Transmission Provider that
either (1) interconnect directly to Ashland's facilities or (2) interconnect to BPA
transmission facilities which subsequently interconnect with Ashland's facilities.
Ashland shall arrange for, and pay any costs associated with, the delivery of non-
federal power to an interconnection point with the Third Party Transmission
Provider, including obtaining and paying for firm transmission across all
intervening transmission systems.
6. Ashland shall pay a portion of the costs of all Ancillary Services necessary to deliver
any non-federal resource to serve its load. The Ancillary Service costs imposed by
the Third Party Transmission Provider shall be apportioned between BP A and
Ashland based on either:
(1) metered/scheduled quantities of the non-federal resource, expressed as a
percentage of total load, multiplied by the total costs assessed BP A by the
Third Party Transmission Provider; or
09PB-13002, Ashland
Exhibit G, Principles of Non-Federal Transfer Service
2of4
(2) actual charges assessed by the Third Party Transmission Provider.
However, BPA shall treat the cost of load regulation service consistent with the load
regulation service cost as described in section 14.6.1(1) of the body of this
Agreement. BP A shall be responsible for the cost of generation supplied reactive
power, and Ashland shall be responsible for any generation imbalance costs, if any,
related to Ashland's non-federal resource.
7. Ashland shall be responsible for the costs of all other transmission services for non-
federal deliveries not included in principles 5 and 6 above, including, but not limited
to: redispatch, congestion management costs, system and facility study costs
associated with adding the non-federal generation as a Network Resource, direct
assigned system upgrades, distribution and low-voltage charges, if applicable and
real power losses.
8. Ashland shall be responsible for all costs of interconnecting generation to a
transmission system.
9. Ashland shall be responsible for acquiring transmission services from BP A,
including wheeling for non-federal resources. If Ashland does not require
transmission services from BPA for wheeling non-federal resources, then Ashland
shall be responsible for a pro rata share of the Third Party Transmission Provider
transmission costs that BP A incurs to serve Ashland.
10. Ashland shall be responsible for all integration services to support its non-federal
resources:
(1) in accordance with all requirements of the host Balancing Authority and/or
Third Party Transmission Provider, and
(2) which are necessary for designation of the non-federal resource as a Network
Resource.
11. As necessary, Ashland shall meet all resource metering requirements including
compliance with BP A standards and any requirements of the generation host
Balancing Authority and/or Third Party Transmission Provider.
12. The Parties shall cooperate to establish the protocols, procedures, data exchanges or
other arrangements the Parties deem reasonably necessary to support the
transmission of Ashland's non-federal resource.
13. Unless otherwise agreed, Ashland shall be responsible for managing any non-federal
resource consistent with Exhibit F.
14. BPA shall have no obligation to pay for Transfer Service for non-federal power to
serve any portion of Ashland's retail load that Ashland is obligated to serve with
federal power pursuant to this Agreement.
09PB-13002,ABbJand
Exhibit G, Principles of Non-Federal Transfer Service
3of4
15. Once Ashland's non-federal resource has been designated as a Network Resource,
BPA will not undesignate Ashland's Network Resource for marketing purposes.
Also, once such Network Resource designation has been made, Ashland may make
market purchases to displace the Network Resource, which BPA shall schedule on
secondary network service, provided that:
(1) such market purchases are at least one day in duration;
(2) the megawatt amount of the market purchase does not exceed the amount of
the designated Network Resource that Ashland would have scheduled to its
load;
(3) such market purchases are only scheduled in preschedule consistent with
section 4.1 of Exhibit F;
(4) Ashland does not, under any circumstances, remarket its designated Network
Resource or perform any other operation that would cause BPA to be in
violation of its obligations under the Third Party Transmission Provider's
OATT;
(5) Ashland is responsible for any additional energy imbalance, redispatch,
and/or UAI charges that result from a transmission curtailment that impacts
the resulting secondary network schedule; and
(6) any RSS products that Ashland has purchased from BPA are not applied to
the market purchase(s).
16. These principles will be the basis for a separate agreement BPA shall offer to
Ashland to support the Transfer Service of Ashland's non-federal resource. BPA
shall include terms specific to a particular non-federal resource in exhibits to the
separate agreement, with a separate exhibit for each non-federal resource. Ashland
is under no obligation to accept this separate agreement or the exhibit for the
particular non-federal resource and BPA is not bound to acquire or pay for Transfer
Service for non-federal resources if Ashland does not accept the separate agreement
or the exhibit for the particular non-federal resource.
17. BP A shall recover the costs associated with any agreements with Ashland reached
under these principles pursuant to BP A's Wholesale Power Rate Schedules and
GRSPs.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhG_Final.DOC) 10108108
09PB-13002,~hland
Exhibit G, Principles of Non-Federal Transfer Service
4of4
Exhibit H
RENEWABLE ENERGY CERTIFICATES AND CARBON ATrRIBUTES
1. DEFINITIONS
1.1 "Carbon Credit" means an Environmental Attribute consisting of greenhouse
gas emission credits, certificates, or similar instruments.
1.2 "Environmental Attributes" means the current or future credits, benefits,
emission reductions, offsets and allowances attributable to the generation of
energy from a resource. Environmental Attributes do not include the tax
credits associated with such resource. One megawatt-hour of energy
generation from a resource is associated with one megawatt-hour of
Environmental Attributes.
1.3 "Environmentally Preferred Power RECS" or "EPP RECs" means the portion
of BP A's Tier 1 RECs that is equal to an amount of up to 130 percent of the
annual average of equivalent environmentally preferred power (EPP)
contracted for as of October 1, 2009, for FYs 2010 and 2011 under
Subscription power sales contracts containing rights to Environmental
Attributes through FY 2016, as determined by BPA to be necessary to
administer such rights.
1.4 "Renewable Energy Certificates" or "RECs" means the certificates,
documentation, or other evidence that demonstrates, in the tracking system
selected under section 5 of this exhibit, the ownership of Environmental
Attributes.
1.5 "Tier 1 RECs" means the RECs composed of a blend, by fuel source, based on
annual generation of the resources listed in or pursuant to section 2 of this
exhibit.
1.6 "Tier 2 RECs" means the RECs associated with generation of the resources
whose costs are allocated to a given Tier 2 Cost Pool in accordance with the
TRM.
2. BPA'S TIER 1 REC INVENTORY
BPA's Tier 1 REC inventory shall include all RECs that BPA has determined are
associated with resources whose output is used to establish Tier 1 System
Capability, as Tier 1 System Capability is defined in the TRM. The disposition of
any Carbon Credits that BP A determines are associated with resources listed in, or
in accordance with, this section 2 shall be as described in section 3 of this exhibit.
The disposition of any Carbon Credits that BP A determines are associated with
resources not listed in, or in accordance with, this section 2 shall be consistent with
section 7 of this exhibit. As of the Effective Date, BP A has determined that the
following resources have RECs associated with them that will be included in the
Tier 1 REC inventory: Foote Creek I, Foote Creek II,. Stateline, Condon, Klondike I,
Klondike III, and Ashland Solar. BPA shall maintain this list on a publicly
accessible BP A website and shall periodically update this list to include any then-
09PB-13002,Ashland
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current resources that BPAhas determined have Tier 1 RECs associated with them.
BP A shall calculate its inventory of Tier 1 RECs annually and after the fact based
on energy generated by listed resources during the previous calendar year.
3. ASHLAND'S SHARE OF TIER 1 RECS
Beginning April 15, 2012, and by April 15 every year thereafter over the term of this
Agreement, BP A shall:
(1) transfer to Ashland, or manage in accordance with section 5 of this exhibit, at
no additional charge or premium beyond Ashland's payment of the otherwise
applicable Tier 1 Rate, a pro rata share of Tier 1 RECs based on Ashland's
RHWM divided by the total RHWMs of all holders of CHWM Contracts; and
(2) for transferred RECs, provide Ashland with a letter assigning title of such
Tier 1 RECs to Ashland.
The amount of Tier 1 RECs available to BP A to transfer or manage shall be subject
to available Tier 1 REC inventory, excluding amounts of Tier 1 REC inventory used
to provide EPP RECs.
4. TIER 2 RECS
If Ashland chooses to purchase Firm Requirements Power at a Tier 2 Rate, and
there are RECs which BPA has determined are associated with the resources whose
costs are allocated to the Tier 2 Cost Pool for such rate, then beginning April 15 of
the year immediately following the first Fiscal Year in which Ashland's Tier 2
purchase obligation commences, and by April 15 every year thereafter for the
duration of Ashland's Tier 2 purchase obligation, BP A shall, based on Ashland's
election pursuant to section 5 of this exhibit, transfer to or manage for Ashland a pro
rata share of applicable Tier 2 RECs generated during the previous calendar year.
The pro rata share of Tier 2 RECs BP A transfers to Ashland shall be the ratio of
Ashland's amount of power purchased at the applicable Tier 2 Rate to the total
amount of purchases under that Tier 2 Rate.
5. TRANSFER, TRACKING, AND MANAGEMENT OF RECS
Subject to BP A's determination that the commercial renewable energy tracking
system WREGIS is adequate as a tracking system, BPA shall transfer Ashland's
share of Tier 1 RECs, and Tier 2 RECs if applicable, to Ashland via WREGIS or its
successor. If, during the term of this Agreement, BPA determines in consultation
with customers that WREGIS is not adequate as a tracking system, then BPA may
change commercial tracking systems with one year advance notice to Ashland. In
such case, the Parties shall establish a comparable process for BP A to provide
Ashland its RECs.
Starting on July 15, 2011, and by July 15 prior to each Rate Period through the term
of this Agreement, Ashland shall notify BP A which one of the following three options
it chooses for the transfer and management of Ashland's share of Tier 1 RECs, and
Tier 2 RECs if applicable, for each upcoming Rate Period:
09PB-13002,AsbJand
Exhibit H, Renewable Energy Certificates and Carbon Attributes
2of4
(1) BPA shall transfer Ashland's RECs into Ashland's own WREGIS account,
which shall be established by Ashland; or
(2) BPA shall transfer Ashland's RECs into a BPA-managed WREGIS
subaccount. Such subaccount shall be established by BPA on Ashland's
behalf and the terms and conditions of which shall be determined by the
Parties in a separate agreement; or
(3) Ashland shall give BPA the authority to market Ashland's RECs on
Ashland's behalf. BPA shall annually credit Ashland for Ashland's pro rata
share of all revenues generated by sales of RECs from the same rate pool on
its April bill, issued in May.
If Ashland fails to notify BPA of its election by July 15 before the start of each Rate
Period, then Ashland shall be deemed to have elected the option in section 5(3) of
this exhibit.
Any RECs BP A transfers to Ashland on April 15 of each year shall be limited to
those generated January 1 through December 31 of the prior year, except that any
RECs BP A transfers to Ashland by April 15, 2012, shall be limited to those
generated October 1, 2011, through December 31, 2011.
6. FEES
BPA shall pay any reasonable fees associated with (1) the provision of Ashland's
RECs and (2) the establishment of any subaccounts in Ashland's name pursuant to
sections 5( 1) and 5(2) of this exhibit. Ashland shall pay all other fees associated
with any WREGIS or successor commercial tracking system, including WREGIS
. retirement, reserve, and export fees.
7. CARBON CREDITS
In the absence of carbon regulations or legislation directly affecting BP A, BP A
intends to convey the value of any future Carbon Credits associated with resources
whose costs are recovered in Tier 1 or Tier 2 Rates to Ashland on a pro rata basis in
the same manner as described for Tier 1 RECs and Tier 2 RECs in sections 3 and 4
of this exhibit. This value may be conveyed as: (1) the Carbon Credits themselves;
(2) a revenue credit after BPA markets such Carbon Credits; or (3) the ability to
claim that power purchases at the applicable PF rate are derived from certain
federal resources.
8. BPA'S RIGHT TO TERMINATE ASHLAND'S RECS AND/OR CARBON
CREDITS
To the extent necessary to comply with any federal regulation or legislation which
addresses Carbon Credits or any other form of Environmental Attribute(s) and
includes compliance costs applicable to BPA, BPA may, upon reasonable notice to
Ashland, terminate Ashland's contract rights to Tier 1 RECs under section 3 of this
exhibit and/or Ashland's pro rata share of Carbon Credits under section 7 of this
exhibit.
09PB-13002,Ashland
Exhibit H, Renewable Energy Certificates and Carbon Attributes
3of4
9. RATEMAKING TREATMENT
Notwithstanding the transfer, sharing, management, conveyance, marketing or
crediting of RECs and Carbon Credits, or the value of any or all of them, pursuant to
this Exhibit H, BP A reserves any ratemaking authority it otherwise possesses to
determine and factor in a share of the value and/or cost of any or all of the RECs and
Carbon Credits for the purpose of: (1) determining applicable wholesale rates
pursuant to section 7(c)(2) of the Northwest Power Act; and (2) establishing the
rate(s) applicable to BPA sales pursuant to section 5(c) of the Northwest Power Act
in a manner that BP A determines provides an appropriate sharing of the benefits
and/or costs of the federal system and comparably reflects treatment of RECs and
Carbon Credits in the calculation of a utility's average system cost of resources.
BPA further reserves its ratemaking authority to recover any costs resulting from
such ratemaking actions through rates, including rates applicable to Ashland. This
paragraph does not constitute Ashland's agreement to statutory ratemaking
authority BP A does not otherwise have.
10. REVISIONS
BP A shall revise this Exhibit H to reflect BP A's determinations relevant to this
exhibit and made in accordance with this Agreement. Any other revisions to this
Exhibit H shall be by mutual agreement.
(PSW - W: \ Power \ Contract \ Customer \ Ashland \ 13002 \ 13002_ExhH_Final.DOC) 10108/08
09PB-13002,Ashland
Exhibit H, Renewable Energy Certificates and Carbon Attributes
4of4