HomeMy WebLinkAbout2009-163 CONT AMND #1 - BPA - 09PB-13002
Amendment No.1
Contract No. 09PB-13002
AMENDMENT
executed by the
BONNEVILLE POWER ADMINISTRATION
and
THE CITY OF ASHLAND, OREGON
This Amendment to the Power Sales Agreement Contract No. 09PB-13002
(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).
This Amendment No.1 (Amendment) modifies the Agreement to revise definitions to
be consistent with the final Tiered Rate Methodology, and make other changes agreed upon
by the Parties.
BPA and Ashland agree:
1. EFFECTIVE DATE
This Amendment shall take effect on the date executed by the Parties (Effective
Date).
2. AMENDMENTS TO BODY OF AGREEMENT
(a) Section 2, Definitions
(1) Section 2.2 shall be deleted and replaced by the following:
"2.2 "7(i) Process" means a public process conducted, pursuant to
section 7(i) of the Northwest Power Act or its successor, by BPA
to establish rates for the sale of power and other products."
(2) Section 2.3 shall be deleted and replaced by the following:
"2.3 "Above-RHWM Load" means the forecast annual Total Retail
Load, less Existing Resources, NLSLs, and the customer's
RHWM, as determined in the RHWM Process. For the
Transition Period (as defined in the TRM), Above-RHWM Load
will be established as described in section 4.3.2.2 of the TRM."
(3) Section 2.8 shall be deleted and replaced by the following:
"2.8 "Business Day(s)" means every Monday through Friday
except Federal holidays."
(4) Section 2.17 shall be deleted and replaced by the following:
"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
Monthly/Diurnal period, as defined in the TRM."
(5) Section 2.29 shall be deleted and replaced by the following:
"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 qualifYing
, resource."
(6) Section 2.82 shall be deleted and replaced by the following:
"2.82 "Transmission Curtailment Management Service" or
"TCMS" means the service BPA will provide to customers with
a qualifying resource when a transmission curtailment occurs
between such resource and the customer load."
(b) Section 3.5.8, PURPA Resources
Section 3.5.8 shall be deleted and replaced with the following:
"If Ashland is required by the Public Utility Regulatory Policies Act (PURPA)
to acquire output from a Generating Resource and plans to use that output to
serve its Total Retail Load, then such output shall be added as a Specified
Resource pursuant to Exhibit A. Ashland shall purchase DFS from BPA (or
equivalent service if DFS is unavailable) to support such resources for the
term of this Agreement."
(c) Section 3.6, Consumer-Owned Resources
Section 3.6 shall be deleted and replaced with the following:
"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 the Consumer-Owned Resources as follows:"
Amendment No.1, 09PB-13002, Ashland
2
(d) Section 3.6.3, Application of Consumer-Owned Resources Serving
Onsite Consumer Load
Section 3.6.3 shall be deleted and replaced with the following:
"Power generated from Consumer-Owned Resources listed in section 7.1 of
Exhibit A shall serve the Onsite Consumer Load. Ashland shall receive no
compensation from BPA for excess power generated on any hour from such
resources. "
(e) Section 6.6.2, Rate Period High Water Mark Calculation
The definition of the sum ofCHWM (ECHWM) in section 6.6.2 shall be
deleted and replaced with the following:
"ECHWM = sum of all Publics' (as defined in the TRM) Contract High Water
Marks, including those for Publics without a CHWM Contract"
(f) Section 7.1, Contract High Water Mark (CHWM)
Section 7.1 shall be deleted and replaced with the following:
"BPA shall establish Ashland's CHWM in the manner defined in section 4.1
of the TRM. Ashland's CHWM and the circumstances under which it can
change are stated in Exhibit B."
(g) Section 9.1, Determination and Notice to Serve Above-RHWM Load
Section 9.1 shall be deleted and replaced with the following:
"Ashland shall determine and provide notice, as described below, to BPA
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 may also provide notice
to BPA that it shall use a Dedicated Resource to serve Above-RHWM Load
that is less than 8,760 MWh. Ashland shall make such determination and
provide such notice as follows:"
(h) Section 10, Tier 2 Remarketing and Resource Removal
The following paragraph shall be added to the beginning of section 10:
"For the purpose of this section 10, any Dedicated Resources added to
Exhibit A pursuant to section 3.5.3 or 3.5.7 do not have temporary resource
removal or remarketing rights under this section. In addition, any Dedicated
Resource amounts or amounts purchased at a Tier 2 Rate that would
otherwise be made eligible for removal or remarketing due to the addition of
resources under section 3.5.3 do not have temporary resource removal or
remarketing rights under this section."
Amendment No.1, 09PB-13002, Ashland
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Ci) Section 10.4, Remarketing of Power Priced at Tier 2 Rates
Section 10.4 and its heading shall be deleted and replaced with the following:
"10.4 Remarketing of Power
Consistent with rates established under the TRM, Ashland shall be
subject to applicable charges or credits associated with BPA'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 or reduced
pursuant to this Agreement."
(j) Section 14.6.1, Ancillary Services
Section 14.6.1(2) shall be deleted and replaced by the following:
"(2) BPA shall pay for the Ancillary ServiceCs) 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 ServiceCs) from Transmission Services to deliver Firm
Requirements Power to the PODs in Exhibit E. If at any time
Ashland is not purchasing Ancillary ServiceCs) from Transmission
Services to deliver Firm Requirements Power to one or more of the
PODs listed in Exhibit E, then Ashland shall pay Power Services for
the Ancillary ServiceCs) charges to deliver power to such PODCs), at
the applicable or equivalent Transmission Services Ancillary Services
rate, in accordance with any applicable BPA Wholesale Power Rate
Schedules or GRSPs."
Ck) Section 18.2.2, Reporting Requirements
The first paragraph of section 18.2.2 shall be deleted and replaced by the
following:
"This section 18.2.2 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 BPA to serve its Total Retail Load. If
Ashland's Total Retail Load from the most recent prior Fiscal Year 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."
(I) Section 22.1, Judicial Resolution
The last sentence of section 22.1 shall be deleted and replaced by the
following:
"IfBPA determines that a dispute is excluded from nonbinding 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."
Amendment No.1, 09PB-13002, Ashland
4
(m) Section 23.3.1, Determination of an NLSL
. Section 23.3.1.3 shall be deleted and replaced by the following:
"23.3.1.3 The Parties may agree that the applicable increase in load of
installed production equipment at a facility will equal or exceed
ten Average Megawatts consumption over any 12 consecutive
months and that such production load shall constitute an NLSL.
Any such agreement shall constitute a binding NLSL
determination."
(n) Section 23.3.5, Undetermined NLSLs
The second paragraph of section 23.3.5 shall be deleted and replaced by the
following:
"If BPA 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, BPA 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 increase in load did not equal or
exceed ten Average Megawatts in any l2-month monitoring period."
(0) Section 23.3.6, Service Election for an NLSL
Section 23.3.6 shall be deleted and replaced by the following:
"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 theNLSL by adding a Dedicated Resource to 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."
3. EXIllBIT REVISIONS
(a) Exhibit C, Section 2.2.4.3, Obligation to Apply Dedicated Resources
Section 2.2.4.3 of Exhibit C shall be deleted and replaced by the following:
"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
Amendment No.1, 09PB-13002, Ashland
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apply Dedicated Resources to serve all of its Above-RHWM Load that is in
excess of the sum of all Tier 2 commitments."
(b) Exhibit C, Section 2.4.1.1, Alternative A -: Customer Planned Load
Not Otherwise Served
The title of the table in section 2.4.1.1(2) of Exhibit C shall be deleted and
replaced by the following:
"Purchase Period Dedicated Resource Elections"
(c) Exhibit D, Section 2, Resource Support Services
Section 2 of Exhibit D shall be deleted and replaced with the following:
"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 through 2014 Purchase Period and offer such as a
revision to this exhibit by August 1, 2009 and by August 1 prior
to each Notice Deadline thereafter. Prior to that date, BPA
shall provide Ashland a reasonable opportunity to provide
input into the development of the products and the related
contract provisions. By the November 1, 2009 Notice Deadline.
and each Notice Deadline thereafter, Ashland shall notifY BPA
in writing of any RSS products it elects to buy from BPA under
the terms of this Agreement and shall identify the applicable
resource(s), for which it shall purchase the RSS product(s) for
the upcoming Purchase Period. Such election shall be a
binding commitment of both Parties. If Ashland makes such
election, the Parties shall revise this exhibit so that it
incorporates the agreed changes to applicable provisions,
including the applicable resource amounts, if known, by
March 31, 2010 or by March 31 of the year following the Notice
Deadline for future years. By September 30 of the last Rate
Case Year prior to the first Rate Period when service begins,
and by each applicable September 30 thereafter in accordance
with the applicable incorporated contract language, BPA shall
update the relevant tables included in the incorporated
contract language with the applicable charges and any
necessary updates to resource amounts.
2.2 If Ashland adds a new Specified Resource within a Purchase
Period to meet its obligations to serve Above-RHWM Load with
Dedicated Resources, consistent with section 3.5.1 of the body
of this Agreement, Ashland may purchase DFS or FORS to
support such resource. Ashland shall request a copy of the
then-current DFS or FORS standard contract provisions from
BPA and shall notifY BPA in writing by October 31 of a Rate
Amendment No.1, 09PB-13002, Ashland
6
Case Year that it elects to purchase DFS or FORS for the new
Specified Resource under the terms stated in the then-current
contract provisions and the terms of this section 2.2. Such
election shall be a binding commitment of both Parties. The
elected DFS or FORS will be effective at the start of the
upcoming Rate Period. The duration of such purchase shall be
for the remainder of the Purchase Period and for the following
Purchase Period. If Ashland makes such election, the Parties
shall revise this exhibit by March 31 ofthe calendar year after
Ashland has given notice of its election. Such revision shall
incorporate the agreed changes to applicable provisions,
including the applicable resource amounts, if known. By
September 30 of the last Rate Case Year prior to the first Rate
Period when service begins, and by each applicable
September 30 thereafter, in accordance with the applicable'
incorporated contract language, BPA shall update the relevant
tables included in the incorporated contract language with the
applicable charges and any necessary updates to resource
amounts."
(d) Exhibit H, Section 4, Tier 2 RECS
Section 4 of Exhibit H shall be deleted and replaced by the following:
"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, BPA shall, based on Ashland's
election pursuant to section 5 ofthis exhibit, transfer to or manage for
Ashland a pro rata share of applicable Tier 2 RECs generated during
the previous calendar year. BPA shall, for transferred RECs, provide
Ashland with a letter assigning title of such Tier 2 RECs to Ashland.
The pro rata share of Tier 2 RECs BPA 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."
Amendment No.1, 09PB-13002, Ashland
7
4. SIGNATURES
The signatories represent that they are authorized to enter into this Amendment on
behalf of the Party for which they sign.
THE CITY OF ASHLAND, OREGON
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
By
By
~ 5' ;:7~:-
,
Name
Name
Kevin S. Farleig-h
(Print I Type)
Title
City Administrator
Klr/C;9
Title
Account Executive
Date
Date
fl/') /VCf
.
(PSW -W: \ Power\ Contract \Customer \Ashland \ 13002 \ 13002_Amendment No. I_Final.DOC) 7/2812009
Amendment No.1, 09PB-13002, Ashland
8
Department of Energy
Bonneville Power Administration
P.O. Box 3621
Portland, Oregon 97208-3621
POWER SERVICES
August 18, 2009
In reply refer to: PSW-6
Mr. Dick Wanderscheid, Director of Electric Utilities
City of Ashland
90 North Mountain Avenue
Ashland, OR 97520
Dear Dick:
A fully executed original of Amendment No. I to Contract No. 09PB-13002 (Agreement),
between the Bonneville Power Administration and City of Ashland is enclosed for your records.
This Agreement is for the period, October 1,2011 through September 30,2028.
Please feel free to contact me at 503-230-4055, if you have any questions or concerns.
Sincerely,
;?0- 5 ?~~'
Kevin S. Farleigh
Account Executive
Enclosure:
Amcndment No. I - Contract 09PB- 13002