HomeMy WebLinkAbout2000-231 Agrmt - BPA No 00PB-12008Contract No. 00PB-12008
FULL SERVICE
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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10.
11.
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15.
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Page
Term ................................................................................................................ 2
Definitions ..................................................................................................... 2
Applicable Rates ........................................................................................... 4
Priority Firm Power Product .................................................................... 4
Load Loss ....................................................................................................... 5
Retail Access Implementation ................................................................... 6
Scheduling ..................................................................................................... 6
Delivery .......................................................................................................... 6
Measurement ............................., ................................................................... 9
Billing and Payment .................................................................................... 11
Notices ............................................................................................................ 12
Cost Recovery ............................................................................................... 12
Uncontrollable Forces ................................................................................. 12
Governing Law and Dispute Resolution ................................................. 13
Statutory Provisions .................................................................................... 15
Standard Provisions .................................................................................... 18
Termination ................................................................................................... 20
Signatures ...................................................................................................... 20
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Rate Commitments
Billing
Net Requirements
Addltional Products and Special Provisions
Points of Measurement
This FULL SERVICE 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). Ashland is a municipal corporation organized under the laws of the
State of Oregon.
RECITALS
BPA has administratively divided its organization into two business lines in order to
functionally separate the administration and decisionmaking activities of BPA's power
business from the administrative and decisionmaking activities of its transmission
business. References in this Agreement to the Power Business Line are solely for the
purpose of establishing which BPA business hne is responsible for the administration of
this Agreement.
The Parties agree:
TERM
This Agreement takes effect on the date signed by BPA and Ashland. Performance
by BPA and Ashland, (except for the preparatory actions for performance contained
in sections 6, 8, and 15(f) of the body of this Agreement, Exhibit A, Rate
Commitments, and Exhibit C, Net Requirements), shall commence on October 1,
2001, and shall continue through September 30, 2011 (Expiration Date).
DEFINITIONS
Capitahzed terms in this Agreement shah have the meanings defined below, in the
exhibits or in context. All other capitahzed terms and acronyms are defined in
BPA's applicable Wholesale Power Rate Schedules, including the General Rate
Schedule Provisions (GRSPs), or its successors.
(a)
"Alternate Supplier" means an entity, other than Ashland, or a consumer of
Ashland serving its own load with an on site resource, that provides electric
power service directly to a retail electric power consumer that receives
service over the distribution system of Ashland under Voluntary Retail
Access or Mandated Retail Access.
(b)
"Amounts Taken" means the amount of power provided by PBL to serve
Ashland's load as measured at the Points of Measurement.
(c)
"Annexed Load" means the amount of load, including the increase in load
associated with an annexation, that is added to Ashland's distribution
system after September 30, 2000 due to Ashland's acquisition by
condemnation, purchase or other legal process, as authorized under
applicable state law, of distribution facilities and the obligation to serve the
retail electric power consumers connected to the facilities. Annexed Load
amounts are shown in Exhibit A, Rate Commitments.
(d)
"Contract Year" or "CY" means the period that begins each October 1 and
which ends the following September 30. For instance Contract Year 2002
begins October 1, 2001, and continues through September 30, 2002.
(e)
"Contracted Power" means Firm Power and Surplus Firm Power provided
under this Agreement.
00PB- 12008, Ashland 2
(9
(g)
(h)
(9
(J)
(k)
(1)
(m)
(n)
(o)
(p)
"Diurnal" means the division of hours of the day between Heavy Load
Hours (HLH) and Light Load Hours (LLH).
"Firm Power" means electric power that PBL will make continuously
available to Ashland under this Agreement.
"Mandated Retail Access" means the right, mandated either by Federal, or
state law of retail electric power consumers to either acquire electric power
service directly from one or more Alternate Suppliers without Ashland
taking an ownership interest in such electric power, or choose electric power
service from a portfolio of power supply options, without Ashland taking an
ownership interest in such power supply options.
"New Large Single Load" or "NLSL" means the definition established for
NLSL in the Northwest Power Act, as implemented in a NLSL policy
developed by BPA after this Agreement is executed.
"Northwest Power Act" means the Pacific Northwest Electric Power Planning
and Conservation Act of 1980, P.L. 96-501.
"Party" or "Parties" means PBL and]or Ashland.
"Points of Measurement" means the points at which Total Retail Load and
Amounts Taken are measured as set forth in Exhibit E, Points of
Measurement.
"Points of Receipt" means the points of interconnection on the transmission
provider's transmission system where Contracted Power will be made
available to Ashland's transmission provider by PBL.
"Power Business Line" or "PBL" means the administrative unit of the
Bonneville Power Administration, United States Department of Energy, or
its successor, which is acting by and for BPA in making this contract, and
which is responsible for the management of marketing and sale of Federal
power under BPA statutes.
"Region" means the definition estabhshed for "Region" in the Northwest
Power Act.
"Returned Retail Load" means a retail electric power consumer load that
returns to Ashland for electric power service after receiving electric power
service from an Alternate Supplier.
"Surplus Firm Power" means surplus firm electric power that is made
available and sold consistent with section 5(i) of the Northwest Power Act
and subject to the provisions of P.L. 88-552 which is made available under
this Agreement.
00PB- 12008, Ashland 3
o
(r)
"Total Retail Load" means all electric power consumption including electric
system losses, within a utillty's distribution system as measured at Points of
Measurement, adjusted as needed for unmetered loads or generation, less
nonfirm or interruptible loads agreed to by the Parties. No distinction is
made between load that is served with Contracted Power and load that is
served with electric power from other sources.
(s)
"Transmission Business Line" or "TBL" means that portion of the BPA
organization or its successor that is responsible for the management and sale
of transmission service on the Federal Columbia River Transmission System
(FCRTS).
(t)
"Voluntary Retail Access" means retail access that is not Mandated Retail
Access and under which the retail electric power consumer has the ability to
either acquire electric power service directly from one or more Alternate
Suppliers without Ashland taking an ownership interest in such electric
power, or choose electric power service from a portfolio of power supply
options without Ashland taking an ownership interest in such power supply
options.
APPLICABLE RATES
Purchases under this Agreement may be subject to more than one rate schedule.
The Priority Firm Power (PF), New Resource Firm Power (NR), and Firm Power
Products and Services (FPS) rate schedules, including the GRSPs, or their
successors, apply to power purchases under this Agreement. Purchases under each
rate schedule are established as follows.
(a)
Priority Firm Power Rate
Section 4 of the body of this Agreement, Exhibit A (Rate Commitments), and
Exhibit B (Billing), identify rates and Contracted Power amounts subject to
the PF rate schedule.
New Resource Firm Power Rate
Section 15 of the body of this Agreement, Exhibit A, (Rate Commitments),
and Exhibit B (Billing) identify rates and Contracted Power amounts subject
to the NR rate schedule.
(c)
Firm Power Products and Services Rate
Except when otherwise specified in this Agreement Exhibit D (Additional
Products and Special Provisions) identifies rates, products, and amounts
subject to the FPS rate schedule.
PRIORITY FIRM POWER PRODUCT
PBL shall sell and make available and Ashland shall purchase under the applicable
PF rates Contracted Power in hourly amounts equal to Ashland's Total Retail Load
minus the following:
00PB-12008, Ashland 4
(a)
Ashland and Non-Ashland Resources
Ashland and non-Ashland resources as established in Exhibit C, Net
Requirements.
(b)
New Large Single Loads
NLSL amounts, if any, as established in Exhibit A, Rate Commitments that
are served at the NR Rate.
(c)
Other Loads and Amounts
Other loads and amounts as established in Exhibit D, Additional Products
and Special Provisions.
Loads Served By an Alternate Supplier Under Mandated Retail
Access
Loads served by an Alternate Supplier under Mandated Retail Access as
measured at the appropriate Points of Measurement, or in amounts agreed
to by the Parties.
LOAD LOSS
(a)
Limitation on Damages
PBL shall bill Ashland monthly for any Contracted Power Ashland was
contractually obligated to purchase that month, but did not take for any
reason other than Mandated or Voluntary Retail Access, at the rates PBL
would have charged Ashland if Ashland had taken such Contracted Power
under this Agreement. Up to 60 days after the end of each Contract Year,
PBL may determine if Ashland purchased less Contracted Power in any
month during the previous Contract Year, due to Voluntary Retail Access
load loss, than it was contractually obligated to purchase under this
Agreement (Monthly Purchase Deficiency). If PBL makes such a
determination it shall calculate the reasonable market value of each Monthly
Purchase Deficiency taking into account the differing market values within
each month during such Contract Year. Ashland shall pay PBL damages for
such Contract Year equal to the amount by which the sum of the product of
the Monthly Purchase Deficiencies and the amount PBL would have charged
if the power had been taken under this Agreement, exceeds the sum of the
product of the Monthly Purchase Deficiencies and the reasonable market
value in each month. PBL may require through a written notice to Ashland
that Ashland provide a reasonable forecast of its expected load loss amounts
for a Contract Year.
Returned Retail Loads
Ashland shall notify PBL of any Returned Retail Load and provide PBL with
metering information for such loads prior to PBL providing any power to
serve such loads. Ashland agrees not to request from PBL service under
section 5(b) of the Northwest Power Act for a Returned Retail Load which
would commence earlier than one year after the date the Returned Retail
Load began receiving service from the Alternate Supplier. Any request for
00PB- 12008, Ashland 5
o
service to Returned Retail Loads would be established pursuant to
section 4(c) of Exhibit A, Rate Commitments.
RETAIL ACCESS IMPLEMENTATION
Ashland agrees to use its best efforts and all legal recourse to defend itself in any
legal action in which it is alleged that the failure of Ashland to provide open access
to its distribution system to Alternate Suppliers constitutes a violation of state or
Federal antitrust laws. At least 180 days before Ashland allows Voluntary Retail
Access or before the effective date of Mandated Retail Access, the Parties shah
amend the terms of this Agreement, if and to the extent necessary, to reflect the
following Ashland obligations:
(a)
Ashland shall ensure that PBL has access to information adequate to plan,
schedule, and bill for service rendered under this Agreement; and
(b)
Ashland shall ensure that any retail electric power consumer, that receives
all or a portion of its power supply from an Alternate Supplier, acquires all
services necessary to support such service, including without limitation
energy imbalance service.
SCHEDULING
The Parties shall amend this Agreement as needed if any transmission tariff or
regulatory agency requires or recommends changes that PBL decides to accept,
which PBL determines require power scheduling provisions be made a part of this
Agreement.
DELIVERY
(a)
Transmission Service for Contracted Power
This Agreement does not provide transmission services for, or include the
delivery of, Contracted Power to Ashland, unless otherwise provided.
Ashland shall be responsible for executing one or more wheeling agreements
with a transmission supplier for the delivery of Contracted Power (Wheeling
Agreement). The Parties agree to take such actions as may be necessary to
facilitate the delivery of Contracted Power to Ashland consistent with the
terms, notice, and the time limits contained in the Wheeling Agreement.
(b)
Liability for Delivery
Ashland waives any claims against PBL arising under this Agreement for
nondelivery of power to any points beyond the applicable Points of Receipt.
PBL shall not be liable for any third-party claims related to the delivery of
power after it leaves the Points of Receipt. In no event will either Party 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, regardless of ownership. These limitations on
liability apply regardless of whether or not this Agreement provides for
transfer service.
00PB- 12008, Ashland 6
(c)
(e)
Points of Receipt
PBL shall make Contracted Power available to Ashland under this
Agreement at Points of Receipt solely for the purpose of scheduling
transmission to points of delivery on Ashland's distribution system, unless
otherwise provided. Ashland shah schedule, if scheduling is necessary, such
Contracted Power solely for use by its firm retail electric power consumer
load. PBL, for purposes of scheduling transmission for delivery under this
Agreement, specified Points of Receipt in a written notice to Ashland prior to
August 1, 2000.
If required by the Wheeling Agreement when PBL designates such Points of
Receipt, PBL will provide capacity amounts for transmission under the
Wheeling Agreement associated with the initial Points of Receipt that can be
accepted as firm Points of Receipt under Ashland's Wheeling Agreement
(except in the event that all Points of Receipt on the Federal Columbia River
Power System (FCRPS) would be considered nonfirm). The sum of capacity
amounts requested by PBL shah not exceed the amount reasonably
necessary for PBL to provide Contracted Power. Such Points of Receipt and
their capacity amounts may only be changed through mutual agreement.
However, at any time PBL may request the use of nonfirm Points of Receipt
to provide Contracted Power to Ashland, but notwithstanding section 8(b)
above, PBL shah reimburse Ashland for any additional costs incurred by
Ashland due to its compliance with such request.
Transmission Losses
PBL shall provide. Ashland the losses between the Points of Receipt and
Ashland's distribution system for Contracted Power, at no additional charge.
Losses will be provided at Points of Receipt as established under section 8(c),
and under the terms and conditions as defined in the transmission provider's
tariff.
Points of Measurement Losses
Measured amounts of Contracted Power shall be adjusted to account for
losses, if any, that occur between the points where Contracted Power enters
Ashland's system and the respective Points of Measurement.
Transfer Service
Subject to the limitations of this section, PBL shall obtain transfer services
over any non-Federal transmission systems necessary to deliver Contracted
Power to Ashland's retail service area. Ashland shall obtain transfer service
over any non-Federal transmission systems necessary to deliver Contracted
Power used to serve Ashland's Annexed Loads. However, PBL agrees to
continue transfer service for Annexed Loads being served through transfer
by PBL at the time of annexation. Transfer service shall continue under this
Agreement or a subsequent agreement until September 30, 2011, unless a
regional transmission organization (RTe) forms that meets the following
criteria: (1) the RTe is operational; (2) the transmission facilities under the
control and tariff of the RTe include the FCRTS and aH of the non-Federal
00PB-12008, Ashland 7
(g)
transmission facilities necessary to deliver Contracted Power from the
FCRTS to Ashland; and (3) the RTO offers access at rates that are not
pancaked. The formation of an RTO that does not meet the above criteria
shall not increase the transfer cost PBL pays under this Agreement.
(1)
Ancillary Services
Ashland shall be responsible for obtaining and paying the costs of any
ancillary services required to deliver Contracted Power purchased
under this Agreement to Ashland's distribution system, except as
provided below. PBL shah pay for such ancillary services as provided
in (A) and (B) of this section below; however, PBL reserves the right
to recover ancillary charges for significant energy imbalance, power
factor overruns, or power factor underruns caused by Ashland that
PBL determines show a pattern of frequent and excessive use.
PBL will pay the costs of any ancillary services that are
bundled into the rate PBL is charged for transfer services by
the non-Federal transmission provider.
(B)
If PBL is purchasing transfer services from a non-Federal
transmission provider under an open access transmission tariff
that levies a separate charge for ancillary services, PBL will
either: (i) pay the amount by which the non-Federal ancillary
service charge exceeds the TBL charge for comparable
ancillary services; or (ii) install telemetry to move Ashland's
retail consumer load into the BPA Control Area.
(2)
Low Voltage Delivery
Delivery and distribution services of less than 34.5 kV (Low Voltage
Services) shall continue to be provided under the wheeling agreement
PBL maintains for transfer service during the time that agreement
includes such Low Voltage Services. If Low Voltage Services are not
included in such a wheeling agreement Ashland shah acquire
necessary Low Voltage Services directly from the transferor or shah
request that PBL acquire the applicable services. If PBL acquires the
Low Voltage Services the Parties agree to amend Exhibit D,
Additional Products and Special Provisions to establish charges for
the services PBL provides. If PBL ceases to provide transfer service
due to the formation of an RT0 that meets the criteria set forth in
section 8(f) above, then Ashland shall bear all responsibility to
acquire and pay for necessary Low Voltage Services directly from the
supplier of such services.
PBL as the Designated Agent
Under this Agreement, PBL shall act as the designated agent for Ashland in
negotiating and administering the Wheeling Agreement executed by Ashland
and TBL for the delivery of Contracted Power. Services provided by PBL as
the designated agent shall be limited to necessary forecasts, amendments
00PB-12008, Ashland 8
and resolution of billing questions, and includes no scheduling services. The
Wheeling Agreement shall be for the 1996 Network Integration
Transmission rate or its successors. Ashland shall bear all risk, and receive
and pay all bills from TBL associated with this Wheeling Agreement. PBL is
providing this designated agent service at no charge as a convenience to
Ashland and Ashland agrees to indemnify PBL for any claims made by third
parties for providing this service. Either Party may terminate PBL's duties
as a designated agent under the terms of this provision with a six-month
notice to the other Party.
(h)
Hourly Load Matching
For purposes of this section "Load Matching" means the obligation within the
hour to match generation with Contracted Power. PBL intends to provide
this service under this Agreement. If however PBL is not allowed to provide
Load Matching under this Agreement, PBL may revise this Agreement as
necessary to reflect the need for Ashland to arrange and pay for Load
Matching. If PBL is not allowed to provide Load Matching under this
Agreement, PBL shall provide a credit to Ashland under the FPS 1996 Rate
Schedule or its successor for the lesser of the actual costs Ashland incurs for
Load Matching or Amounts Taken multiplied by the amount per kWh that
PBL projected it would pay for Load Matching in the Wholesale Power Rate
Schedules Ashland purchases under.
MEASUREMENT
The following requirements apply to this Agreement, except for metering of load lost
or gained due to Voluntary or Mandated Retail Access, which is governed by
section 6, Retail Access Implementation.
(a)
General
Ashland authorizes PBL to use metering data as PBL determines is
necessary to plan, schedule, and bill for power. Ashland agrees to authorize
TBL to provide Ashland's metering data directly to PBL, subject to any
restrictions imposed by the Federal Energy Regulatory Commission (FERC).
All Points of Measurement are shown in Exhibit E, Points of Measurement.
Ashland agrees to provide reasonable notice to PBL prior to changing Control
Areas.
(b)
BPA Metering
BPA is responsible for the installation, operation, maintenance, and
replacement of all metering equipment owned by BPA that is needed to plan,
schedule, and bill for power. For BPA-owned meters only, Ashland
authorizes PBL to install at PBL expense any metering equipment on
Ashland's facilities, that is reasonably necessary to plan, schedule and bill
for power, if PBL or Ashland are unable to obtain the information from TBL.
The installation of such metering equipment shall be subject to a separate
agreement between PBL and Ashland, addressing the location, access,
maintenance, testing, and liability of the Parties with respect to such meters.
00PB- 12008, Ashland 9
(c)
Ashland Metering
(1)
General Responsibilities
Ashland is responsible for the installation, operation, maintenance,
and replacement of metering equipment (except metering equipment
owned by BPA or a transferring party) that is needed by PBL to plan,
schedule, and bill for power for:
(A)
(B)
points of interconnection between Ashland's system and
parties other than BPA.
all loads that require separate measurement for purposes of
planning, scheduling, or billing by PBL.
(c)
generating resources shown in Exhibit C, Net Requirements,
that are interconnected to Ashland's system.
All metering equipment shall meet standards generally accepted by
the electric utility industry in the Region for the particular metering
application.
(2)
Existing Metering
Metering equipment existing at the time of execution of this
Agreement may continue to be used indefinitely, provided it records
data hourly and is reported to BPA each month. Metering equipment
which does not record hourly may continue to be used in instances
when PBL does not need hourly data to plan, schedule, or bill.
(3)
New Meters
Any metering equipment described in subsection 9(c)(1) that is
replaced, upgraded, or newly installed shall allow PBL complete
electronic access to metering data. Electronic access is the capability
for data polling and extraction via PBL's system software as
frequently as needed to plan, schedule, and bill for power. Such
meters shall record hourly and enable PBL to extract meter data for a
minimum of the previous 45 days. In addition to the general
requirements of (1), above, new meters shah meet PBUs published
metering standards then in effect for such application.
(4)
Exceptions
When the Parties agree metering is economically or technologically
impractical, mutually acceptable load profiles may be used instead of
metered amounts. Where power amounts are scheduled in or out of
the Ashtand's service territory, scheduled amounts shall be used, if
appropriate, to determine the amount of Contracted Power delivered.
00PB-12008, Ashland 10
10.
BILLING AND PAYMENT
(a)
Billing
PBL shah bill Ashland monthly, consistent with applicable BPA rates,
including the GRSPs and the provisions of this Agreement for the Amounts
Taken, payments pursuant to section 5, and other services provided to
Ashland in the preceding month or months under this Agreement. PBL may
send Ashland an estimated bill followed by a final bin. PBL shall send all
bills on the bin's issue date either electronically or by mail, at Ashland's
option. If electronic transmittal of the entire bill is not practical, PBL shall
transmit a summary electronically, and send the entire bill by mail.
Payment
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, the Due Date is the next business day.
If payment has been made on an estimated bill before receipt of a final bill
for the same month, Ashland shall pay only the amount by which the final
bill exceeds the payment made for the estimated bill. PBL shall provide
Ashland the amounts by which an estimated bin exceeds a final bill through
either a check or as a credit on the subsequent month's bin. After the Due
Date, a late payment charge shall be applied each day to any unpaid balance.
The late payment charge is calculated by dividing the Prime Rate for Large
Banks as reported in the Wall Street Journal, plus 4 percent; by 365. The
applicable Prime Rate for Large Banks shall be the rate reported on the first
day of the month in which payment is received. Ashland shall pay by
electronic funds transfer using BPA's established procedures. PBL may
terminate this Agreement if Ashland is more than three months behind in
paying its bills under this Agreement and Ashland cannot demonstrate an
ability to make the payments owed.
(c)
Disputed Bills
In case of a billing dispute, Ashland shall note the disputed amount and pay
its bill in full by the Due Date. Unpaid bins (including both disputed and
undisputed amounts) are subject to late payment charges provided above. If
Ashland is entitled to a refund of any portion of the disputed amount, then
BPA 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 used to determine the interest is calculated by dividing the
Prime Rate for Large Banks as reported in the Wall Street Journal; by 365.
The applicable Prime Rate for Large Banks shall be the rate reported on the
first day of the month in which payment is received by BPA.
00PB- 12008, Ashland 11
11.
12.
13.
NOTICES
Any notice required under this Agreement shall be in writing and shall be delivered:
(a) in person; (b) by a nationally recognized delivery service; or (c) by United States
Certified Mail. Notices are effective when received. Either Party may change its
address for notices by giving notice of such change consistent with this section.
If to Ashland:
If to PBL:
The City of Ashland
90 N. Mountain Avenue
Ashland, OR 97520
Attn: Peter V. Lovrovich, Director
Power and Telecommunications
Phone: 541-488-5357
FAX: 541-488-5320
E-Mai]: pete@ashland.or.us
Bonneville Power Administration
P.O. Box 3621
Portland, OR 97208-3621
Attn: John P. Lebens - PSW
Account Executive
Phone: 503-230-3965
FAX: 503-230-3544
E-Mai]: jplebens@bpa.gov
COST RECOVERY
(a)
Nothing included in or omitted from this Agreement creates or extinguishes
any right or obligation, if any, of BPA to assess against Ashland and Ashland
to pay to BPA at any time a cost underrecovery charge pursuant to an
applicable transmission rate schedule or otherwise applicable law.
CO)
BPA may adjust the rates for Contracted Power set forth in the applicable
power rate schedule during the term of this Agreement pursuant to the Cost
Recovery Adjustment Clause in the 2002 GRSPs, or successor GRSPs.
UNCONTROLLABLE FORCES
PBL shall not be in breach of its obligation to provide Contracted Power and
Ashland shall not be in breach of its obligation to purchase Contracted Power to the
extent the failure to fulfill that obligation is due to an Uncontrollable Force.
"Uncontrollable Force" means an event beyond the reasonable control of, and
without the fault or negligence of, the Party claiming the Uncontrollable Force that
impairs that Party's ability to perform its contractual obligations under this
Agreement and which, by exercise of that Party's reasonable diligence and foresight,
such Party could not be expected to avoid and was unable to avoid. Uncontrollable
Forces include, but are not limited to:
(a)
any unplanned curtailment or interruption for any reason of firm
transmission used to deliver Contracted Power to Ashland's facilities or
distribution system, including but not limited to unplanned maintenance
outages;
Co)
any unplanned curtailment or interruption, failure or imminent failure of
Ashland's distribution facilities, including but not limited to unplanned
maintenance outages;
00PB- 12008, Ashland 12
14.
(c)
any planned transmission or distribution outage that affects either Ashland
or PBL which was provided by a third-party transmission or distribution
owner, or by a transmission provider, including TBL, that is functionally
separated from the generation provider in conformance with FERC Orders
888 and 889 or its successors;
strikes or work stoppage, including the threat of imminent strikes or work
stoppage;
(e) floods, earthquakes, or other natural disasters; and
(0
orders or injunctions issued by any court having competent subject matter
jurisdiction, or any order of an administrative officer which the Party
claiming the Uncontrollable Force, after diligent efforts, was unable to have
stayed, suspended, or set aside pending review by a court of competent
subject matter jurisdiction.
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.
The Party claiming the Uncontrollable Force shall notify the other Party as soon as
practicable of that Party's inability to meet its obhgations under this Agreement due
to an Uncontrollable Force. The Party claiming the Uncontrollable Force also
agrees to notify any control area involved in the scheduling of a transaction which
may be curtailed due to an Uncontrollable Force.
Both Parties shall be excused from their respective obligations, other than from
payment obligations incurred prior to the Uncontrollable Force, without liability to
the other, for the duration of the Uncontrollable Force and the period reasonably
required for the Party claiming the Uncontrollable Force, using due diligence, to
restore its operations to conditions existing prior to the occurrence of the
Uncontrollable Force.
GOVERNING LAW AND DISPUTE RESOLUTION
This Agreement shall be interpreted consistent with and governed by
Federal law. Final actions subject to section 9(e) of the Northwest Power Act
are not subject to binding arbitration and shah remain within the exclusive
jurisdiction of the United States Ninth Circuit Court of Appeals. Any
dispute regarding any rights of the Parties under any BPA policy, including
the implementation of such policy, shall not be subject to arbitration under
this Agreement. Ashland reserves the right to seek judicial resolution of any
dispute arising under this Agreement that is not subject to arbitration under
this section 14. For purposes of this section 14, BPA policy means any
written document adopted by BPA as a final action in a decision record or
00PB-12008, Ashland 13
(b)
(c)
(d)
(e)
record of decision that establishes a policy of general application, or makes a
determination under an applicable statute. If either Party asserts that a
dispute is excluded from arbitration under this section 14, either Party may
apply to the Federal court having jurisdiction for an order determining
whether such dispute is subject to arbitration under this section 14.
Any contract dispute or contract issue between the Parties arising out of this
Agreement, except for disputes that are excluded through section 14(a)
above, shall be subject to binding arbitration. The Parties shall make a good
faith effort to resolve such disputes before initiating arbitration proceedings.
During arbitration, the Parties shall continue performance under this
Agreement pending resolution of the dispute, unless to do so would be
impossible or impracticable.
Any arbitration shall take place in Portland, Oregon, unless the Parties
agree otherwise. The CPR Institute for Dispute Resolution's arbitration
procedures for commercial arbitration, Non-Administered Arbitration Rules
(CPR Rules), shall be used for each dispute; provided, however, that:
(1) the Parties shall have the discovery rights provided in the Federal Rules
of Civil Procedure unless the Parties agree otherwise; and (2) for claims of
$1 million or more, each arbitration shall be conducted by a panel of three
neutral arbitrators. The Parties shall select the arbitrators from a list
containing the names of 15 qualified individuals supplied by the CPR
Institute for Dispute Resolution. If the Parties cannot agree upon three
arbitrators on the list within 20 business days, the Parties shall take turns
striking names from the list of proposed arbitrators. The Party initiating the
arbitration shall take the first strike. This process shall be repeated until
three arbitrators remain on the list, and those individuals shah be
designated as the arbitrators. For disputes involving less than $1 million, a
single neutral arbitrator shall be selected consistent with section 6 of the
CPR Rules.
Except for arbitration awards which declare the rights and duties of the
Parties under this Agreement, the payment of monies shall be the exclusive
remedy available in any arbitration proceeding. Under no circumstances
shall specific performance be an available remedy against BPA. The
arbitration award shall be final and binding on both 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 arbitrators may be entered by any court having
jurisdiction thereof.
Each Party shah be responsible for its own costs of arbitration, including
legal fees. The arbitrators may apportion all other costs of arbitration
between the Parties in such manner as they deem reasonable taking into
account the circumstances of the case, the conduct of the Parties during the
proceeding, and the result of the arbitration.
00PB- 12008, Ashland 14
15.
STATUTORY PROVISIONS
(a)
Annual Financial Report and Retail Rate Schedules
Ashland shah provide PBL with a current copy of its annual financial report
and its retail rate schedules, as required by Section 5(a) of the Bonneville
Project Act, P.L. 75-329.
Insufficiency and Allocations
If BPA 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
apphcable laws then BPA shall give Ashland a written notice that BPA may
restrict service. Such notice shall be consistent with BPA'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.
BPA shall not change that methodology without the written agreement of all
affected customers. Such restriction shall take effect no sooner than five
years after notice is given to Ashland. If BPA imposes a restriction under
this provision then the amount of Contracted Power that Ashland is
obhgated to purchase pursuant to section 4 shall be reduced to the amounts
available under such restricted service.
(c) New Large Single Loads
General
All existing NLSLs are listed in section 5 of Exhibit A, Rate
Commitments. Ashland shah provide reasonable notice to PBL of any
expected increase in load that is likely to qualify as a new NLSL.
Ashland may either serve a NLSL with Contracted Power or with
power from another source. For purposes of this section (c),
"Consumer" means an end-user of electric power or energy.
(2)
Determination of a Facility
PBL, in consultation with Ashland, shall make a reasonable
determination of what constitutes a single facility, for the purpose of
identifying a NLSL, based upon the following criteria:
(A) whether the load is operated by a single Consumer;
(B) whether the load is in a single location;
(c)
whether the load serves a manufacturing process which
produces a single product or type of product;
(D) whether separable portions of the load are interdependent;
00PB-12008, Ashland 15
(E) whether the load is contracted for, served or billed as a single
load under Ashland's customary billing and service policy;
(e)
(0
consistent application of the foregoing criteria in similar fact
situations; and
(G) any other factors the Parties determine to be relevant.
PBL shall show an increase in load associated with a Consumer's
facility which has been determined to be a NLSL in section 5 of
Exhibit A, Rate Commitments. PBL shall have the unilateral right to
amend Exhibit A to reflect such determinations when made.
(3)
Determination of Ten Average Megawatt Increase
An increase in load shall be considered a NLSL if the energy
consumption of the Consumer's load associated with a new facility, an
existing facility, or expansion of an existing facility during the
immediately past 12-month period exceeds by 10 average megawatts
or more the Consumer's energy consumption for such new facility,
existing facility or expansion of an existing facility for the consecutive
12-month period one year earlier, or the amount of the contracted for,
or committed to load of the Consumer as of September 1, 1979,
whichever is greater.
(4)
CF/CT Loads
Ashland has no loads that were contracted for, or committed to, as of
September 1, 1979, as defined in section 3(13)(A) of the Northwest
Power Act.
Priority of Pacific Northwest Customers
The provisions of sections 9(c) and (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. BPA agrees that Ashland,
together with other customers in the Region shall have priority to BPA
power, consistent with such provisions.
Prohibition on Resale
Ashland shall not resell PF or NR Contracted Power except to serve
Ashland's Total Retail Load or as otherwise permitted by Federal law.
Use of Regional Resources
(1)
Within 60 days prior to the start of each Contract Year, Ashland shall
notify PBL 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 that Ashland plans to export for sale
outside the Region in the next Contract Year. PBL may during such
Contract Year request additional information on Ashland resources if
00PB-12008, Ashland 16
(g)
PBL has information that Ashland may have made such an export
and not notified PBL. PBL may request and Ashland shall provide
within 30 days of such request, information on the planned use of any
or all of Ashland's generating and contractual resources.
(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 delivered to be used to serve firm consumer
load in the Region.
(3)
If Ashland fails to report to PBL in accordance with section (1), above,
any of its planned exports for sale outside the Region of firm power
from a generating resource or a contract resource that has been used
to serve firm consumer load in the Region, and PBL makes a finding
that an export which was not reported was made, then PBL may
terminate this Agreement upon 30 days written notice to Ashland. If
PBL concludes that the failure to report is inadvertent and unlikely to
reoccur PBL shall not terminate this Agreement and may instead
elect to decrement the amount of Contracted Power by up to two times
the amount of the export that was not reported. When applicable
such decrements shall be established consistent with section 4(c) of
Exhibit C.
(4)
For purposes of this section, 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 in a manner that
such output is 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
section 9(c) policy will not be considered an export. Firm power from
a generating resource or contract resource used to serve firm
consumer load in the Region means the firm generating or load
carrying capability of a generating resource or contract resource as
established under Pacific Northwest Coordination Agreement
resource planning criteria, or other resource planning criteria
generally used for such purposes within the Region.
BPA Appropriations Refinancing Act
The Parties agree that the BPA Refinancing Section of the Omnibus
Consolidated Recisions and Appropriations Act of 1996 (The BPA
Refinancing Act), P.L. No. 104-134, 110 Stat. 1321, 1350, as stated in the
United States Code on the date this Agreement is signed by the Parties, is
incorporated by reference and is a material term of this Agreement. The
Parties agree that this provision and the incorporated text shall be included
in subsequent agreements between the Parties, as a material term through
at least September 30, 2011.
00PB-12008, Ashland 17
16. STANDARD PROVISIONS
(a)
. Amendments
No oral or written amendment, rescission, waiver, modification, or other
change of this Agreement shall be of any force or effect unless set forth in a
written instrument signed by authorized representatives of each Party.
(b)
Assignment
This Agreement 'is binding on any successors and assigns of the Parties.
BPA may assign this Agreement to another Federal agency to which BPA's
statutory duties have been transferred. 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.
BPA shall consider any request for assignment consistent with applicable
BPA statutes. Ashland may not transfer or assign this Agreement to any of
its retail customers.
(c)
Information Exchange and Confidentiality
The Parties shall provide each other with any information that is reasonably
required, and requested by either Party in writing, to operate under and
administer this Agreement, including load forecasts for planning purposes,
information needed to resolve billing disputes, scheduling and metering
information reasonably necessary to prepare power bills that is not otherwise
available to the requesting Party. Such information shall be provided in a
timely manner. Information may be exchanged by any means agreed to by
the Parties. If such information is subject to a privilege of confidentiality, a
confidentiality agreement or statutory restriction under state or Federal law
on its disclosure by a Party to this Agreement, then that Party shall
endeavor to obtain whatever consents, releases, or agreements are necessary
from the person holding the privilege to provide such information while
asserting the confidentiality over the information. Information provided to
BPA which is subject to a privilege of confidentiality or nondisclosure shall
be clearly marked as such and BPA shall not disclose such information
without obtaining the consent of the person or Party asserting the privilege,
consistent with BPA's obligation under the Freedom of Information Act.
BPA may use such information as necessary to provide service or timely bill
for service under this Agreement. BPA shall only disclose information
received under this provision to BPA employees who need the information for
purposes of this Agreement.
(d)
Entire Agreement
This Agreement, including all provisions, exhibits incorporated as part of
this Agreement, and documents incorporated by reference, constitutes the
entire agreement between the Parties. It supersedes all previous
communications, representations, or contracts, either written or oral, which
purport to describe or embody the subject matter of this Agreement.
00PB-12008, Ashland 18
(e)
(g)
(i)
(k)
Exhibits
The exhibits hsted in the table of contents are incorporated into this
Agreement by reference. The exhibits may only be revised upon mutual
agreement between the Parties unless otherwise specified in the exhibits.
The body of this Agreement shall prevail over the exhibits to this Agreement
in the event of a conflict.
No Third-Party Beneficiaries
This Agreement is made and entered into for the sole protection and legal
benefit of the Parties, and no other person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in
connection with this Agreement.
Waivers
AnY waiver at any time by either Party to this Agreement of its rights with
respect to any default or any other matter arising in connection with this
Agreement shall not be considered a waiver with respect to any subsequent
defanlt or matter.
BPA Policies
Any reference in this Agreement to BPA policies, including without
limitation BPA's NLSL Policy and the 5(b)/9(c) Policy, and any revisions
thereto, does not constitute agreement by Ashland to such policy, nor shall it
be construed to be a waiver of the right of Ashland to seek judicial review of
any such policy.
Severability
If any term of this Agreement is found to be invalid by a court of competent
jurisdiction then such term shall remain in force to the maximum extent
permitted by law. All other terms shall remain in force unless that term is
determined not to be severable from all other provisions of this Agreement by
such court.
Rate Covenant
Ashland agrees that it will establish, maintain, and collect rates or charges
for power and energy and other services, except telecommunications services,
facilities and commodities sold, furnished or supplied by it through any of its
electric utility properties which shall be adequate to provide revenues
sufficient to enable Ashland to make the payments required under this
Agreement.
Hold Harmless
Each Party assumes all liability for injury or damage to persons or property
arising from the act or negligence of its own employees, agents, members of
governing bodies, or contractors. Each Party shall indemnify and hold the
other Party harmless from any liability arising from such act or negligence.
00PB-12008, Ashland 19
17.
TERMINATION
Ashland may terminate this Agreement through a written notice up to 30 days after
FERC grants interim approval for BPA's wholesale power rates that are effective
October 1, 2001. In addition, Ashland shall have the right to terminate this
Agreement if all of the following conditions have been satisfied:
(a)
Any rates adopted in WP-02 Final Rate Proposal, Administrator's Final
Record of Decision are remanded to BPA for reconsideration by FERC or the
Ninth Circuit Court of Appeals.
(b)
As a result of the remand, the Administrator publishes a subsequent Final
Record of Decision which, if confirmed, would result in Ashland being subject
to a higher average effective power rate for the period beginning the first day
of the billing period immediately following the effective date of new rates
contained in the subsequent Final Record of Decision and ending on
September 30, 2006.
(c)
Ashland has provided written notice to BPA of its intent to terminate this
Agreement within 30 days of publication of the subsequent Final Record of
Decision.
Termination shall be effective at the start of the second billing period following the
termination notice.
18.
SIGNATURES
The signatories represent that they are authorized to enter into this Agreement on
behalf of the party for whom they sign.
THE CITY OF ASHLAND, OREGON
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
D~r~c[or, rj~ela~ '~
Telecom~cations
Name PSter V. Lovrovich Name
John P. Lebens
(Print/Type) (Print/Type)
Date f~ ' ]7. ~ Date
(PBLLAN-PSW-W:\PSC\PM\ CT\ 12008.DOC)
00PB-12008, Ashland 20
Exhibit A
RATE COMMITMENTS
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 apphed to Ashland's
Contracted Power purchases under this Agreement. The Lowest PF Rates
shah 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.
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.
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.
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.
5-Year Rates Treatment
All Contracted Power purchases provided under section 4 of the body of this
Agreement are subject to the 5-Year Rates. The monthly energy rates for
Contracted Power are specified in sections II.Bi and II.B2 in the section
labeled "Schedule PF-02 Priority Firm Power" in the 2002 Power Rate
Schedules.
Ashland must select a follow-on rate period and associated rates from those
offered by BPA, and notify PBL of its selection, by the later of:
(1) six months prior to the expiration of the 5-Year Rates; or
00PB-12008, Ashland 1 of 5
(2) thirty (30) days after the date BPA's initial proposal for successor
rates is published.
(a)
Otherwise the follow-on rate period and associated rates shah be the shortest
rate period and associated rates that are applicable to Ashland.
Cost-Based Indexed PF Rate and Flexible PF Rate Option
None.
SPECIAL PF LOAD TREATMENT
(a)
Annexed Loads
Ashland may make a written request for service to Annexed Loads, including
a planned date for such service. Annexed Load amounts that were served by
PBL under section 5(b) of the Northwest Power Act immediately prior to
becoming an Annexed Load will be provided service under rates, terms, and
conditions that, within the constraints of BPA's applicable policies, are as
comparable as possible to what such Annexed Load would have received if
the load had not become an Annexed Load. The Parties shah revise this
exhibit within 180 days of the request, to establish the rates, terms and
conditions for the requested service and to include monthly HLH and
LLH MWs in a table below. The table shall identify whether the amounts in
the table are deemed to be actual for billing purposes or whether the table is
an estimate with bills based on metered amounts.
(b) Environmentally Preferred Power
(1)
Environmentally Preferred Power
PBL shall sell and Ashland shall purchase during Contract
Years 2002 through 2006 the Environmentally Preferred Power
established below. The Green Energy Premium that Ashland shall
pay PBL for such power is 6.40 dollars per MWh. The entire amount
of this Green Energy Premium shah qualify as an eligible expenditure
under the Conservation and Renewables Discount. "Environmentally
Preferred Power" means power deemed to be generated by generating
resources that are determined to have environmental benefits relative
to BPA system power. For purposes of this Agreement
Environmentally Preferred Power is deemed to be generated from the
following resources: (A) Idaho Falls Hydro Project; (B) Packwood
Hydro Project; and (C) Foote Creek Wind Project. PBL may, at any
time, add resources to this list that qualify as Environmentally
Preferred Power. PBL may also replace or delete resources in this list
if a resource that is included in the list is no longer available to PBL.
Any such changes shall be noted in the annual report PBL provides
Ashland about its Environmentally Preferred Power purchase.
00PB-12008, Ashland 2 of 5
Exhibit A, Rate Commitments
Contract
Year
2002
2003
2004
2005
2006
Oct Nov Dec Jan Feb' Mar Apr May Jun Jul Aug Sept
(MWh)
745 720 744 744 672 744 719 744 720 744 744 720
745 720 744 744 672 744 719 744 720 744 744 720
745 720 744 744 672 744 719 744 720 744 744 720
745 720 744 744 672 744 719 744 720 744 744 720
745 720 744 744 672 744 719 744 720 744 744 720
(2) Northwest Public Interest Groups Endorsement
The resources listed in section 4(b)(1) are endorsed by the
Natural Resources Defense Council, Northwest Energy
Coalition, and Renewable Northwest Project (Northwest Public
Interest Groups) as being an environmentally preferred source
of electricity generation for electricity products. Ashland may
only use the following endorsement from the Northwest Public
Interest Groups to advertise, market, and promote
Environmentally Preferred Power to retail electric power
consumers inside Ashland's service territory:
"The Idaho Falls Project; Packwood Hydro Project; and the
Foote Creek Wind Project generating facilities are
environmentally preferred sources of electricity production,
based on our independent review of environmental impacts."
(B)
Ashland agrees to make an additional payment after the end of
each Contract Year to the Bonneville Environmental
Foundation in exchange for the right to use the Northwest
Public Interest Groups endorsement. The amount of the
payment shall equal the total MWh of Environmentally
Preferred Power provided during the Contract Year multiplied
by 9.59 dollars per MWh. Payment is due by no later than
20 days after Ashland receives the notice identified in
section 4(b)(3)(A). Such payments to the Bonneville
Environmental Foundation qualify as eligible expenditures for
the Conservation and Renewables Discount. The payment
shall be made by wire transfer to the following account:
Account Name:
Tax ID Number:
Bank Name:
Account Number:
ABA Routing:
Bonneville Environmental Foundation
93-1248274
Bank of the Northwest
600 Pioneer Tower
888 SW. Fifth Avenue
Portland, OR 97204
0108002777
123006680
00PB-12008, Ashland 3 of 5
Exhibit A, Rate Commitments
(c)
(3) Disclosure, Reporting, and Adjustments
By no later than 30 days after the end of each Contract Year
PBL shall provide Ashland with the following: (i) a statement
that discloses information on Environmentally Preferred
Power; and (ii) a notice that identifies the following for each
Contract Year: the actual monthly amounts of
Environmentally Preferred Power that was provided to
Ashland by each resource; the total actual monthly power
amounts generated by each resource; and the total annual
sales from each resource.
(B)
Subject to section 4Co)(3)(C), if the Environmentally Preferred
Power provided to Ashland during a Contract Year is less than
the amounts specified in section 4(b)(1), the difference shall be
determined to have been served with Contracted Power under
the terms of this Agreement. PBL shall adjust Ashland's
power bill after the end of each Contract Year to account for
such difference once the power amounts provided by the
resources during the Contract Year are known.
(c)
Ashland may request that PBL provide Ashland with
Environmentally Preferred Power contracted for during a
Contract Year that was not provided. Ashland must notify
PBL of such request by no later than two weeks after the
notification specified in section 4(b)(3)(A)(ii) is received. By no
later 60 days after the end of the Contract Year, if sufficient
Environmentally Preferred Power is available, PBL shall
provide to Ashland, Environmentally Preferred Power equal to
the amount contracted for during the Contract Year less the
amount provided. If sufficient Environmentally Preferred
Power is not available, PBL shall adjust Ashland's power bill
consistent with section 4(b)(3)(B).
Returned Retail Load
Ashland may request service from PBL to serve Returned Retail Load. The
Parties shah revise this exhibit to establish monthly HLH and LLH MWs for
such service in a table below. The table shall identify whether the amounts
in the table are deemed to be actual for billing purposes or whether the table
is an estimate with bills based on metered amounts. PBL shall provide
service within 180 days of the request at rates BPA has established or
establishes as applicable to such loads. The rate treatment for such loads
shall continue through Contract Year 2006. Rate treatment after Contract
Year 2006 shall be determined in a future rate case.
00PB-12008, Ashland 4 of 5
Exhibit A, Rate Commitments
(d)
Load Previously Served By Ashland Northwest Power Act Sections
5(b)(1)(A) and]or 5(b)(1)(B) Resources
Ashland may request service from PBL to serve load that would otherwise be
served by Ashland's Northwest Power Act sections 5(b)(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,
NEW LARGE SINGLE LOADS
(a) Ashland has no existing NLSL.
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(/) of Exhibit C, Net
Requirements. The total amount subtracted from Total Retail Load in
section 4 of the body of this Agreement shall be the metered amount of the
load. The same metered amount shall be used by PBL for billing purposes
when PBL serves the entire NLSL.
REVISIONS
If this exhibit is inconsistent with BPA's 2002 PF Power Rate Schedule as finally
approved by FERC, the Parties shall make a good faith effort to amend this exhibit
so that it is consistent.
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.
(PBLLAN-PSW-W:\PSC\PM\ CT\ 12008B.doc)
00PB-12008, Ashland 5 of 5
Exhibit A, Rate Commitments
Exhibit B
BILLING
PRIORITY FIRM POWER ENTITLEMENTS
(a)
The amount of Contracted Power in MWh which is established through
section 4 of the body of this Agreement during each applicable Diurnal period
establishes Ashland's Monthly PF HLH and LLH Energy Entitlements.
(b)
The amount of Contracted Power in MW which is established through
section 4 of the body of this Agreement that is made available on Generation
System Peak is Ashland's Measured Demand.
NEW RESOURCE CONTRACTED POWER ENTITLEMENTS
(a)
The amount of energy served by PBL under section 5 of Exhibit A, Rate
Commitments during each applicable Diurnal period establishes Ashland's
Monthly NR HLH and LLH Energy Entitlements.
(b)
The amount of demand served by PBL under section 5 of Exhibit A, Rate
Commitments that is made available on Generation System Peak is
Ashland's Measured Demand.
UNAUTHORIZED INCREASE CHARGE
Amounts Taken from PBL in excess of Contracted Power shall be subject to the
Unauthorized Increase Charge for demand and energy consistent with the
applicable BPA Wholesale Power Rate Schedules and GRSPs, unless such power is
provided under another contract with PBL. Power that has been provided for
energy imbalance service pursuant to an agreement between TBL and Ashland will
not be subject to an Unauthorized Increase Charge for Demand and Energy under
this Agreement.
CONSERVATION AND RENEWABLES DISCOUNT
Subject to the terms specified in BPA's applicable Wholesale Power Rate Schedules,
including GRSPs, BPA shall apply the Conservation and Renewables Discount to
Ashland's Contracted Power as established in section 4 of the body of this
Agreement unless Ashland has notified PBL before August 2001 that it will not
participate in the Conservation and Renewables Discount. For purposes of
establishing power amounts eligible for this discount, Ashland shall provide PBL a
reasonable forecast of such firm power amounts through Contract Year 2006 by no
later than August 1, 2001.
If during any Contract Year, Ashland has significant load loss or gain, the Parties
may, by no later than August 31 prior to the succeeding Contract Year, revise the
forecast used to calculate the Conservation and Renewables Discount. If the revised
forecast is less than 95 percent of, or greater than 105 percent of, the forecast used
to calculate the existing Conservation and Renewables Discount, the revised
00PB-12008, Ashland 1 of 2
forecast shah be used to recalculate the Conservation and Renewables Discount for
the succeeding Contract Years.
To retain the full amount of the Conservation and Renewables Discount Ashland
shah satisfy all obligations associated with the Conservation and Renewables
Discount as specified in BPA's applicable Wholesale Power Rate Schedules,
including GRSPs and the Conservation and Renewables Discount implementation
manual. Ashland shall reimburse BPA for any amount it received but for which it
did not satisfy such obligations.
REVISIONS
If this exhibit is inconsistent with BPA's 2002 PF Power Rate Schedule as finally
approved by FERC, the Parties shah make a good faith effort to amend this exhibit
so that it is consistent.
(PBLLAN-PSW-W:\PSC\PM\CT\ 12008B.doc)
00PB-12008, Ashland 2 of 2
Exl~bit B, Bilhng
o
Exhibit C
NET REQUIREMENTS
ESTABLISHING NET REQUIREMENT
Ashland's net requirement is its Total Retail Load less both the resource amounts, if
any, established in section 2(d) of this exhibit and the metered amounts of known
non-Ashland resources, if any, established in section 3 of this exhibit. Except for
modifications allowed in section 4 of this exhibit these resource amounts are not
allowed to change during the term of this Agreement.
CUSTOMER RESOURCES
(a)
Non-Dispatchable Resources Committed to Load
Ashland commits all of the output from the following resources to serve Total
Retail Load. The output of each resource is measured at the applicable
Points of Measurement listed in Exhibit E, Points of Measurement.
(1) Reeder Hydroelectric
The following data applies to this resource.
Peak % Date of Date of
Resource Cap Purchaser Dedicated Resource Resource
Name 5BLAIR Type (M~Vs) Share (%) to Load Addition Removal
Reeder
Hydro 5(13)1(13) Hydro .75 MW 100 100 7/1/85 N/A
(b)
Declared Output of Specific Ashland Resources
Ashland commits the firm output from the following resources (or an
equivalent amount from another source) to serve its Total Retail Load.
(1) Surplus Power Purchase from BPA
The following data applies to this resource. This BPA/Ashland contract
expires on December 31, 2001, at 2400 hours. BPA shall serve Ashland's
load served'by this resource once this surplus power purchase expires.
Flat Across % Date of Date of
Resource All Hours Dedicated Resource Resource
Name 5B1A/B Type (MWs) to Load Addition Removal
Diversification
Purchase
97PB-10107 5(13)103) Contract 4 MW 100 1/1/98 N/A
SP Contract - Declared Monthly Firm Output
Contract Year I Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
2002
Total (MWh) 2~980 2~880 2,976 0 0 0 0 0 0 0 0 0
HLH (MWh) 11728 1,664 1,664 0 0 0 0 0 0 0 0 0
LLH(MWh) 1,252 1,216 1,312 0 ° I °1° I ° I°1°1 °1°
Peak (MW) 4.0 4.0 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
00PB-12008, Ashland i of 4
(c)
Unspecified Resource Amounts Committed to Serve Total Retail
Load
Ashland currently has no unspecified resources committed to serve its Total
Retail Load and may only add such resources pursuant to sections 4(b), 4(c),
and 4(f) below.
Total Resource Amounts Committed to Serve Total Retail Load
In addition to the any non-dispatchable resources established in 2(a) above,
Ashland commits each hour to provide the total resource amounts committed
in sections 2(b) and 2(c). The amount based on these resource declarations
that Ashland commits to provide each hour is shown in the table below.
These amounts shall be updated whenever sections 2(b) or 2(c) above are
modified, consistent with section 4 of this exhibit.
SP Contract - Declared Monthly Firm Output
Contract Year I Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
2002
Total (MWh) 2,980 2,880 2~976 0 0 0 0 0 0 0 0 0
HLH (MWh) 1,728 1,664 1,664 0 0 0 0 0 0 0 0 0
LLH(MWh) 1,252 1,216 1,312 0 [ 0 [ 0 [ 0 0 [ 0 [ 0 [ 0 [ 0
Peak (MW) 4.0 4.0 4.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(e)
Ashland Resource Not Used To Serve Total Retail Load
None at this time.
NON-ASHLAND GENERATING RESOURCES
Known non-Ashland resources, if any, greater than 1 MW that provide power to
serve Ashland's Total Retail Load or such resources that otherwise connect to
Ashland's distribution system are listed below. The power amounts are measured
at the Points of Measurement established for each resource in Exhibit E, Points of
Measurement.
None at this time.
CHANGES TO RESOURCE AMOUNTS
(a)
Annual Right to Add New Renewable Resources
Ashland may add new renewable resources to sections 2(a) or 2(b) of this
exhibit according to the terms of this provision. Ashland shah request the
addition of such resources at least 60 days before the start of the Contract
Year the resources will be added. The request shah identify the resources,
the length of time that the resources shall be applied to Ashland's Total
Retail Load and power amounts from the resources for each month of the
request. PBL will revise section 2 of this exhibit prior to the start of the
Contract Year if PBL agrees that the resource meets BPA's standards to
qualify for BPA's Conservation and Renewables Discount, subject to any
applicable limits established in BPA's policy on net requirements under
section 5(b) of the Northwest Power Act. Ashland shah resume purchasing
Contracted Power under this Agreement when its commitment to apply the
renewable resource ends. The rate treatment for such power shall be the
00PB-12008, Ashland 2 of 4
Exhibit C, Net Requirements
(b)
(d)
(e)
(0
same Ashland would have received for such power if Ashland had not chosen
to apply a resource under this provision.
Resource Additions for a BPA Insufficiency Notice
Ashland shah add resources under sections 2(b) or 2(c) to replace amounts of
Contracted Power BPA notifies Ashland will not be provided due to a notice
under section 15(b) of the body of this Agreement.
Decrements for 9(c) Export
PBL may determine consistent with BPA's policy implementing section 9(c)
of the Northwest Power Act and section 3(d) of P.L 88-552 (9(c) Policy) that
an export of an Ash]and resource requires a reduction in the amount of
Federal power that PBL sells under this Agreement. If PBL determine~ such
a reduction is required it will notify Ashland of the amount and duration of
the reduction. PBL shall revise this exhibit to include such amounts as
unspecified resources for the duration of the export requiring such reduction
under section 2(c) above. This amount shall be identified separately from
any other amounts of unspecified resources established in that provision.
The addition to section 2(c) shall also be included in the total resource
amount established in section 2(d). Determinations by PBL to reduce the
amount of Federal power sold are not subject to arbitration under section 14
of the body of this Agreement.
Permanent Resource Removal
The resource amounts established in section 2 of this exhibit may be removed
permanently by Ashland consistent with statutory discontinuance for
permanent removal in BPA's policy on net requirements under section 5(b) of
the Northwest Power Act. If PBL determines Ashland has met PBL's
standards for a permanent removal, the exhibit will be revised to show the
agreed resource changes. Additional power purchases under this Agreement
as a result of such a resource removal are subject to the terms established in
section 4(d) of Exhibit A, Rate Commitments. Determinations by PBL on the
permanent removal of a resource are not subject to arbitration under
section 14 of the body of this Agreement.
Changes to Non-Ashland Resources
Ashland shah annually update the information established for non-Ashland
resources in section 3 at least 60 days before the start of each Contract Year,
if circumstances reasonably warrant such a change. Subject to agreement of
the Parties, the exhibit shall be revised to show the updated information
prior to the start of the applicable Contract Year.
Resource Additions for NLSL
Ashland may add resources to sections 2(b) or 2(c) above in order to serve a
NLSL consistent with the rights established in section 5 of Exhibit A, Rate
Commitments.
00PB-12008, Ashland 3 of 4
Exhibit C, Net Requirements
RESOURCE DECLARATIONS
The resource capabilities set forth in sections 2(a), (b), and (c) of this exhibit are
dedicated to serving Ashland's firm load pursuant to section 5(b) of the Northwest
Power Act. In addition to the resource capabilities set forth in such sections that
may be removed pursuant to other sections of this Agreement, BPA consents that
the resource capabilities set forth in section 2(c) above may be discontinued from
use in serving Ashland's firm load upon the termination or expiration of this
Agreement. The resources established in sections 2(e) and 3 above are not used to
serve Ashland's firm load under section 5(b) of the Northwest Power Act and will
not be required to be so used after the termination or expiration of this Agreement.
REVISIONS
When required, Ashland shah submit a revised Exhibit C, Net Requirements, to
PBL at least 60 days prior to each Contract Year. As long as Ashland's submittal is
consistent with the requirements of this exhibit PBL shall accept it as submitted. If
Ashland fails to submit revisions when necessary, or if the information provided is
inconsistent with the requirements of this exhibit, PBL shall update this exhibit
prior to the beginning of the Contract Year with the information PBL believes is
required.
(PBLLAN-PSW-W:\PSC\PM\CT\ 12008B.doc)
00PB-12008, Ashland 4 of 4
Exhibit C, Net Requirements
Exhibit D
ADDITIONAL PRODUCTS AND SPECIAL PROVISIONS
1. None at this time.
REVISIONS
This exhibit shall be revised by mutual agreement of the Parties to reflect
additional products Ashland purchases during the term of this Agreement.
(PBLLAN-PSW-W:\PSC\PM\CT\ 12008B.doc)
00PB-12008, Ashland I of I
dd d