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HomeMy WebLinkAbout2009-186 Revision No 6 Exhibit A BPA 00PB-12008 Revision No.6, Exhibit A RATE COMMITMENTS Effective October 1, 2009 This exhibit revision: (1) replaces section 4(b) Environmentally Preferred Power, (2) clarifies the Parties' obligations with regard to a WREGIS sub-account that BPA will manage on Ashland's behalf, (3) incorporates provisions regarding the WREGIS sub. account terms, conditions and associated fees, and (4) binds the Parties to BPA's executed Agreement with WREGIS. known as the WREGIS Terms of Use (WREGIS TOU). 1. DEFINITIONS (a) "5.Year Rates" means the Lowest PF Rates established in the 2002 Wholesale Power Rate Case for Contract Years 2002 through 2006. (b) "Lowest PF Rates" means the lowest applicable cost-based power rates provided under the applicable PF rate schedule as applied to Ashland's Contracted Power purchases under this Agreement. The Lowest PF Rates shall be selected by Ashland from the PF rates that are available and from which the Parties agree Ashland is eligible to purchase under at the time Ashland makes its selection as specified in this exhibit. 2. PURCHASE DURATION Ashland shall purchase all of the power provided in section 4 of the body of this Agreement for the entire term of this Agreement. 3. PRIORITY FIRM POWER RATE TREATMENT (a) Right to Lowest PF Rates Ashland is contractually guaranteed through September 30, 2011, the Lowest PF Rates established in a successor BPA power rates proceeding for its PF Contracted Power purchases under this Agreement. This section shall not be construed to waive, alter, or amend any right that Ashland may have under applicable statutes. (b) Revisions to Priority Firm Power Rates BPA agrees that the 5-Year Rates available to Ashland consistent with this exhibit shall not be subject to revision during their respective terms, except for the application of a Cost Recovery Adjustment Clause or a Targeted Adjustment Charge as provided in the PF applicable rates schedules and GRSPs and this Agreement. (c) 5.Year Rates Treatment All Contracted Power purchases provided under section 4 of the body of this Agreement are subject to the 5-Year Rates. The monthly energy rates for Contracted Power are specified in sections n.Bl and n.B2 in the section labeled "Schedule PF-02 Priority Firm Power" in the 2002 Power Rate Schedules. 00PB-12008, Ashland 10f8 Ashland must select a follow-on rate period and associated rates from those offered by BPA, and notify PBL of its selection, by the later of: (1) six months prior to the expiration of the 5-Year Rates; or (2) thirty (30) days after the date BPA's initial proposal for successor rates is published. Otherwise the follow-on rate period and associated rates shall be the shortest rate period and associated rates that are applicable to Ashland. (d) Cost-Based Indexed PF Rate and Flexible PF Rate Option None. 4. SPECIAL PF LOAD TREATMENT (a) Annexed Loads Ashland may make a written request for service to Annexed Loads, including a planned date for such service. Annexed Load amounts that were served by PBL under section 5(b) of the Northwest Power Act immediately prior to becoming an Annexed Load will be provided service under rates, terms, and conditions that, within the constraints of BPA's applicable policies, are as comparable as possible to what such Annexed Load would have received if the load had not become an Annexed Load. The Parties shall revise this exhibit within 180 days of the request, to establish the rates, terms and conditions for the requested service and to include monthly HLH and LLH MWs in a table below. The table shall identif'y whether the amounts in the table are deemed to be actual for billing purposes or whether the table is an estimate with bills based on metered amounts. (b) Environmentally Preferred Power (EPP) (1) Definitions (A) "Environmental Attribute(s)" means the current or future credits, benefits, emission reductions, offsets and allowances attributable to the generation of energy from a resource used to supply EPP. Environmental Attributes do not include the tax credits associated with such resource. One megawatt-hour of energy generation from an EPP resource is associated with one megawatt-hour of Environmental Attributes. (B) "Environmentally Preferred Power" or "EPP" means power deemed to be generated by one or more of the resources listed in section 4(b)(3) below. EPP includes the associated Environmental Attributes from such resources. 00PB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 20f8 (C) "Renewable Energy Certificates" or "RECs" means the certificates, documentation, or other evidence that demonstrates the ownership of Environmental Attributes. (D) "Retire" or "Retirement" means an action taken to remove a REC from circulation within Western Renewable Energy Generation Information System (WREGIS). (2) Ashland's EPP BPA shall sell and Ashland shall purchase for Contract Years 2010 through 2011 (October 1, 2009 through September 30, 2011), the EPP amounts listed in the table below. For all EPP amounts listed in the table below, Ashland shall pay a Green Energy Premium in the amount of $10.50 per megawatt-hour. Contract Year aMW 2010 1 2011 1 The Green Energy Premium shall qualify as an eligible expenditure under the Renewables Option of the Conservation Rate Credit (CRC) and Conservation Acquisition Agreement (CAA) Implementation Manual, or its successor, through Contract Year 2011, and will be reflected as a separate line item on Ashland's monthly power bill. (3) BPA's EPP and REC Inventory BPA deems its EPP, and the associated RECs, to be generated by one or more of the following resources: Condon, Foote Creek I, Foote Creek II, Klondike I, Klondike III, and Stateline wind projects. BPA may add, replace, or remove resources on this list if such resources are no longer available to BPA. Any such changes shall be noted in the Contract Year and calendar year disclosures BPA provides to Ashland as required in sections 4(b)(5) and 4(b)(6) below. Any resource BPA adds to the list above shall qualify as a renewable resource under the Renewables Option of the CRC and Conservation Acquisition Agreement (CAA) Implementation Manual, or its successor. (4) Ashland's WREGIS Sub-Account (A) WREGIS and Terms and Conditions of Sub-Account For those resources listed in section 4(b)(3) above that have registered with WREGIS, BPA shall use WREGIS to track and transfer the RECs associated with Ashland's EPP purchase. 00PB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 30f8 Within BPA's own WREGIS account, BPA shall establish a sub-account in the name of Ashland. BPA shall provide Ashland read-only access to its sub-account. BPA shall use such sub-account solely for the purpose of reserving and Retiring RECs that Ashland receives from BPA. Ashland gives its consent to be bound by the terms stated in the WREGIS Account Holder Registration Agreement, also referred to as the WREGIS Terms of Use (WREGIS TaU) Agreement, Contract No. OSPB-11957, executed by BPA and including any revisions. BPA shall make the executed WREGIS TaU Agreement available to Ashland at the following publicly accessible web site: http://www.bpa.gov/corporate/windpower/index.cfm. (B) Transfer of RECs to Ashland's Sub-Account BPA shall transfer to Ashland's WREGIS sub-account any RECs associated with EPP purchased by Ashland during the preceding calendar year. Such transfer shall occur by April 15, 2011 and April 15, 2012, or upon termination of Ashland's WREGIS sub-account, pursuant to section 4(b)(4)(E) below. Any RECs BPA transfers to Ashland shall be limited to those available to BPA through WREGIS, and at least 75 percent of such RECs shall be comprised of a blend of RECs generated by projects located in Oregon and Washington. IfBPA adds, replaces, or removes a resource from the list in section 4(b)(3) above, then BPA may adjust this percentage accordingly. BPA shall notify Ashland of any such changes in the Contract Year and calendar year EPP disclosures, pursuant to section 4(b)(5) below. ec) Resale, Purchase, and Retirement ofRECs If Ashland wants to sell RECs received from BPA outside of its . service territory, .or purchase RECs other than those RECs it receives from BPA, Ashland shall terminate its sub-account pursuant to section 4(b)(4)(E) below, and establish its own WREGIS account for those purposes. BPA shall Retire Ashland's RECs on its behalf upon receipt of written notice from Ashland. In such notice, for the RECs Ashland wants BPA to Retire, Ashland shall identify REC quantity; the name of the renewable project(s) which generated the RECs; and, the month and year the RECs were generated by the project(s). Ashland shall pay Retirement fees consistent with section 4(b)(4)(D) below. 00PB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 40f8 (D) WREGIS Fees BPA shall pay any fees associated with establishing Ashland's sub-account and any fees associated with the transfer ofRECs into Ashland's WREGIS sub-account. Ashland shall reimburse BPA for all other fees associated with Ashland's WREGIS sub- account, including but not limited to, REC Retirement fees. Such reimbursement shall be effectuated through a charge on Ashland's power bill pursuant to section 10 ofthis Agreement. If applicable, Ashland shall pay all fees associated with establishment of its own WREGIS account. (E) Termination of Ashland's Sub-Account Either Party may terminate Ashland's WREGIS sub-account after providing 30 days' advance written notice to the other Party. However, BPA shall not terminate Ashland's WREGIS sub- account until: (i) Ashland has established its own WREGIS account and BPA has received written notice from Ashland to transfer 100 percent of Ashland's RECs into Ashland's own WREGIS account, or (ii) BPA has provided all RECs due to Ashland for the previous calendar year under section 4(b)(4), and BPA has received written notification from Ashland to Retire 100 percent of Ashland's RECs contained in Ashland's WREGIS sub-account. Ashland may not have both a WREGIS account and a WREGIS sub-account open at the same time. Consistent with section 4(b)(4)(D), Ashland shall be responsible for all WREGIS fees incurred pursuant to termination of its sub-account. (F) Termination of Current Sub-Account Agreement BPA and Ashland agree to terminate the WREGIS Sub- Account Agreement, Contract No. 08PB-1l992, effective on the date both Parties signed this Revision No.6 to Exhibit A. (5) Contract Year and Calendar Year Disclosures By no later than November 30, 2010, and November 30, 2011, BPA shall provide Ashland with a record of the EPP monthly amounts, by resource, and associated RECs purchased by Ashland the previous Contract Year, consistent with the amounts ofEPP listed in section 4(b)(2) above. By the following April 15, BPA shall provide Ashland with a calendar year EPPIREC disclosure that includes a record of the EPP monthly amounts, by resource, and associated RECs purchased by Ashland for the previous calendar year. In such disclosure, if applicable, BPA OOPB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 50f8 shall notify Ashland of any WREGIS-related changes from the previous calendar year that may impact Ashland. (6) For Resources Not Registered with WREGIS If, pursuant to section 4(b)(5), BPA transfers RECs to Ashland from a resource listed in section 4(b)(3) that is not registered with WREGIS, then BPA shall, by no later than the following April 15, provide Ashland with the following: (A) a record of the monthly amounts of EPP that BPA provided to Ashland by each renewable resource not listed with WREGIS for the previous calendar year; and (B) renewable resource generator and wholesaler attestations that provide Ashland proof of title to all the Environmental Attributes associated with Ashland's EPP purchase. (7) Deficit of EPP and RECs Ifthe EPP amounts reported to Ashland during a Contract Year, pursuant to sections 4(b)(5) and 4(b)(6), are less than the amounts specified in section 4(b)(2) above, the difference shall be determined to have been served by BPA with Contracted Power under the terms of this Agreement. BPA shall pay Ashland the value of its share ofthe difference of RECs at $10.50 per MWh. BPA shall credit Ashland's power bill accordingly on its December bill issued in January. (8) Availability of EPP Mter Expiration of This Agreement For Contract Years 2012 through 2016, Ashland shall have the right to purchase an amount ofRECs equal to the lesser of: (A) the average of Ashland's EPP purchases for Contract Years 2010 through 2011 listed in section 4(b)(2) above as of October 1, 2009, or (B) the amount ofEPP Ashland actually purchases over Contract Years 2010 through 2011, accounting for purchase reductions Ashland may make pursuant to section 4(b)(9) below. Subject to inventory availability, Ashland may purchase an additional amount ofRECs up to 30 percent of the lesser of the amounts in sections 4(b)(8)(A) or 4(b)(8)(B) above. The sale of such RECs pursuant to this section 4(b)(8) shall be completed under a separate agreement. BPA shall establish the price for such RECs by no later than May 16, 2011. If Ashland chooses to exercise its right to purchase RECs for Contract Years 2012 through 2016, it shall provide BPA written notice on or before July 15, 2011. Such notice shall specify the amount of RECs Ashland shall purchase, subject to inventory, for each Contract Year 2012 through 2016 (9) Adjustment to EPP Purchase Amount When Renewable Claims Exceed CRC Funding Levels For Contract Year 2011, if the cap on renewable funding requests under the Renewables Option of the CRC is reached and results in a pro rata reduction to renewable rate credit funding requests, and 00PB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 60f8 Ashland claims this EPP purchase as a renewable energy expense under the CRC, then Ashland may reduce its EPP purchase by a commensurate amount to account for the pro rata reduction. By August 1, 2010, BPA shall notify Ashland of the amount (if any) of pro rata reduction to Ashland's renewable funding request. By August 15, 2010, Ashland shall provide BPA with a notice exercising its option to reduce Ashland's EPP purchase subject to the pro rata reduction. The Parties shall revise section 4(b)(2) to reflect any such reduction. (c) Returned Retail Load Ashland may request service from PBL to serve Returned Retail Load. The Parties shall revise this exhibit to establish monthly HLH and LLH MWs for such service in a table below. The table shall identify whether the amounts in the table are deemed to be actual for billing purposes or whether the table is an estimate with bills based on metered amounts. PBL shall provide service within 180 days of the request at rates BPA has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract Year 2006. Rate treatment after Contract Year 2006 shall be determined in a future rate case. (d) Load Previously Served By Ashland Northwest Power Act Sections 5(b)(I)(A) and/or 5(b)(1)(B) Resources Ashland may request service from PBL to serve load that would otherwise be served by Ashland's Northwest Power Act sections 5(b)(1)(A) resources and 5(b)(1)(B) generating resources and long-term contract resources that are removed consistent with section 4(d) of Exhibit C, Net Requirements. The Parties shall revise this exhibit to establish monthly HLH and LLH MWs for such service in a table below. The amounts are deemed to be actual for billing purposes. PBL shall provide service within 180 days of the request at rates BPA has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract Year 2006. Rate treatment after Contract Year 2006 shall be determined in a future rate case. 5. NEW LARGE SINGLE LOADS (a) Ashland has no existing NLSL. (b) Ashland may request service to a NLSL. The Parties shall revise this exhibit to establish estimated monthly HLH and LLH MWh for such service in a table below. If Ashland chooses to serve the NLSL with a resource the resource shall be added consistent with section 4(f) of Exhibit C, Net Requirements. The total amount subtracted from Total Retail Load in section 4 of the body of this Agreement shall be the metered amount of the load. The same metered amount shall be used by PBL for billing purposes when PBL serves the entire NLSL. 00PB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 70f8 6. REVISIONS If this exhibit is inconsistent with BPA's 2002 PF Power Rate Schedule as finally approved by FERC, the Parties shall make a good faith effort to amend this exhibit so that it is consistent. The Parties shall update this exhibit to reflect necessary changes to establish new rate choices consistent with the applicable future rate cases. This shall be done by mutual agreement except as allowed in section 3 of this exhibit. CITY OF ASHLAND, OREGON By Name Title City Administrator Date ~ /ZU,~~ UNITED STATES OF AMERICA Departmen t of Energy Bonneville Power Administration By Z~37 - (Signature) , Name Kevin S. Farleigh (Print I Type) Title Account Executive Date 8 Iv> I Dcr K \ KSC\ Contract Administration Work\Ashland \ Power\ Exhibits \OOPB-120GB_Ashland EXA_R6_7-7-2009.doc 00PB-12008, Ashland Revision No.6, Exhibit A, Rate Commitments 80f8 Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208-3621 POWER SER VICES August 20, 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: Enclosed are two originals of Revision No.6 to Exhibit A of the City of Ashland's (Ashland) Contract No. 00PB-12008. This exhibit revision replaces section 4(b) Environmentally Preferred Power, clarifies Ashland and BPA's obligations with regard to a Western Renewable Energy Generation Information System (WREGIS) sub-account that BPA will manage on Ashland's behalf, incorporates provisions regarding the WREGIS sub-account terms, conditions and associated fees, and binds Ashland and BPA to BPA's executed Agreement with WREGIS, known as the WREGIS Terms of Use. If you agree with this exhibit revision, please have both originals of the enclosed exhibit signed and dated and return one fully executed original to me by September 18,2009. The remaining original is for your records. If you have any questions or concerns, please contact me at (503) 230-4055 or by email at ksfarleigh@bpa.gov. Sincerely, r S;;---::;~~ . Kevin S. Farleigh Account Executive Enclosure Exhibit A, Revision No.6 (2) '\