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HomeMy WebLinkAbout1991-02 Amend BPA Contract RESOLUTION NO. 91- A RESOLUTION APPROVING AMENDATORY AGREEMENT NO. 4 TO BPA POWER SALES CONTRACT, AND AUTHORIZING ITS EXECUTION. WHEREAS, there is a need to redefine the operating year to make it consistent with reservoir refill conditions. NOW THEREFORE, BE IT RESOLVED by the City of Ashland, Oregon, as follows: SECTION 1. Amendatory Agreement No. 4 to Contract No. DE-MS79- 81BP 90432 is hereby approved in its entirety. SECTION 2. The Mayor and City Recorder are hereby authorized and directed to execute the said amendatory agreement on behalf of the City of Ashland. The foregoing Resolution was READ and DULY ADOPTED at a regular meeting of the City Council of the City of Ashland on the Nan E. Franklin City Recorder SIGNED and APPROVED this ~ day of ~ , 1991. · Golden Mayor Amendatory Agreement No. 4 to Contract No. DE-MS?9-81BP90432 AMENDATORY AGREEMENT executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through BONNEVILLE POWER ADMINISTRATION and CITY OF ASHLAND Index to Sections Section Page 1. Effective Date of Agreement ..................................... 2 2. Amendment of Power Sales Contract ............................... 2 3. Accounting for the Transition Period ............................. 16 This AMENDATORY AGREEMENT, executed June 28 , 199__~, by the UNITED STATES OF AMERICA (Government), Department of Energy, acting by and through the BONNEVILLE POWER ADMINISTRATION (Bonneville), and CITY OF ASHLAND (Purchaser), a municipal corporation of the state of Oregon, WI TNESSETN: WHEREAS Bonneville and the Purchaser executed a power sales contract (Contract No. DE-MS79-S1BP90432, executed December 18, 1982), providing for the sales and delivery of firm power and energy to the Purchaser, and which as amended is hereinafter referred to as "Power Sales Contract"; and WHEREAS the parties hereto have agreed to the following amendments to the Power Sales Contract for their mutual benefit from coordinated hydroelectric system planning in the Pacific Northwest; and HHEREAS Bonneville is authorized pursuant to law to dispose of electric power and energy generated at various Federal hydroelectric projects in the Pacific Northwest, or acquired from other resources, to construct and operate transmission facilities, to provide transmission and other services, and to enter into agreements to carry out such authority; NON, THEREFORE, the parties hereto mutually agree as follows: 1. Effective Date of Agreement. Thls amendatory agreement shall be effective at 2400 hours on July 31, 1991. 2. Amendment of Power Sales Contract. The Power Sales Contract is hereby amended as follows: (al Section 3(eel is deleted and replaced by a new section 3(eel as follows: "(eel 'Operating Year' means the period commencing each year on August 1 and ending the following July 31." (b) Section 10(el is deleted and replaced by a new section 10(el as follows: "(el For purposes of sections 9(el, Il(b)(4), and Definition Z of Exhibit'D only, prior to August 1 of any year Bonneville may notify the Purchaser that Bonneville needs to acquirel additional resources to meet the Purchaser's load growth 2 occurring after the start of the Operating Year specified in the notice. Such Operating Year shall not commence prior to the expiration of the fifth full Operating Year after Bonneville notifies the Purchaser hereunder." (c) Section 12(b) is deleted and replaced by a new section 12(b) as follows: "(b) Prior to January 1 of each year, the Purchaser shall prepare and submit to Bonneville a revised Firm Resources Exhibit. Each such exhibit shall delete the information applicable to the current Operating Year, show new information for the seventh succeeding Operating Year as permitted by this subsection, and show any changes for the first six Operating Years as are permitted by this subsection (b). Such new Firm Resources Exhibit shall be prepared in the same format as the initial Firm Resources Exhibit or such other format as Bonneville and the Purchaser may agree upon. Such new Firm Resources Exhibit will supersede the prior Firm Resources Exhibit on the following August 1. "Changes in the Purchaser's Firm Resources Exhibit shall be permitted only if specifically provided for as follows: "(1) The peak capability of any Firm Resource may be added for the fifth year of the Firm Resources Exhibit and the energy capability of any Firm Resource may be added for the seventh year of the Firm Resources Exhibit, upon designation of the Purchaser. "(2) Any Firm Resource may be added for any Operating Year to the extent that such resource is in accordance with Bonneville's annual program which implements the plan of the Pacific Northwest Electric Power and Conservation Planning Council or P.L. 96-501. 3 "(3) Any Firm Resource may be added in any Operating Year to the extent that Bonneville reasonably determines that it can market or otherwise dispose of any of its resultlng firm load-resource surplus without sustaining an adverse economic effect. In determining the amount of such surplus, purchases which Bonneville is not committed to make at the time of such determination shall not be considered. "(4) Any Firm Resource which is a renewable or cogeneration resource and which has a planned capability for the generating facility of 50 average megawatts or less may be added beginning with the Operating Year for which the Purchaser had notice of the availability of such resource, but in no event earlier than the Operating Year commencing 30 months from the January 1 on which the Firm Resources Exhibit showing such addition is submitted. If the owner or developer of a generating facility which is a qualifying facility requires the Purchaser to acquire the output of such facility pursuant to the Provisions of P.L. 95-617 (PURPA), the planned capability of such generating facility may be added as a Firm Resource pursuant to this paragraph at the beginning of the Operating Year for which the Purchaser had notice of the availability of such resource;.provlded, howevers that the Purchaser shall use its best efforts to provide the minimum notice of availability specified in this paragraph. "(5) Any Firm Resource in regard to which an irrevocable option to purchase has been granted .in favor of Bonneville pursuant to a written, executed agreement may be added in any revised Firm Resources Exhibit submitted within 2 years after Bonneville declines for any reason to exerclse Its option to purchase pursuant to that agreement. Such Firm Resource may be Included tn such Firm Resources Exhlblt for any Operating Year or Years up to the amounts offered to Bonneville In the agreement granting the option to Bonneville. "(6) Irrespective of whether or not an option had been granted In favor of Bonneville, any Flrm Resource whtch has been offered to Bonneville pursuant to sectton 9(I)(3) of P.L. 96-501 and whlch Is not accepted by Bonneville under the terms of the offer may be added effectlve on the date of commercial operation in any revlsed Firm Resources Exhibit upon a minlmum of 2 years' written notice. "(7) Any Ftrm Resource may be added If and to the extent that Bonneville Is expected to have an excess of flrm load over Its ftrm resources tn the ftrst Operating Year for which the Purchaser proposes to add such Firm Resource. Bonnev111e's expected firm load-resource balance will be determined from the then latest publicatlon of Bonnevllle's ftrm loads and planned firm resources Issued by Bonneville; provided, however, that purchases by Bonneville which are shown In such publication but whtch Bonneville has not at the time of such determtnatlon made a commitment to purchase shall be removed from Bonnev111e's resources before such determination is made. Prlor to the submittal of any Firm Resources Exhibit which includes such addition, the Purchaser shall notify Bonneville ~n writing Of the times and amounts of F~rm Resources It proposes to add pursuant to this paragraph, if the Purchaser and other Customers under similar contracts propose to add F~rm Resources in excess of Bonnev~lle's expected f~rm load-resource defic~ency, Bonneville shall allocate the amount of Firm Resources 5 which each such Purchaser may add giving priority among competing requests in the order that written notice of addition was first received. Bonneville shall notify the Purchaser in writing wtthln 30 days after receipt of such notice of any limitation on the amount of Firm Resources which it may add. "(8) Any Firm Resource may be removed for any Operating Year if the use of such Firm Resource is permanently discontinued because of loss of resource or loss of contract rights resulting from factors beyond the reasonable control of the Purchaser and which the best efforts of the Purchaser are unable to remedy. Any Firm Resource may be removed if the use of such resource is permanently discontinued because of obsolescence or retirement to the extent and for the Operating Years that the Purchaser has consulted with Bonneville regarding such discontinuance and Bonneville has agreed in writing to such discontinuance. Lack of an adequate power supply to replace the discontinued resource shall not be sufficient reason for Bonneville to withhold its agreement to such discontinuance. "The peak capab111ty of any Firm Resource to which the preceding portion of this paragraph (8) does not apply may be removed for the fifth Operating Year of the Firm Resources Exhibit and the energy capability of such resource may be removed for the seventh Operating Year. "Firm Resources which are returned to service subsequent to their removal pursuant to this paragraph (8) shall be treated as new resources for the purpose of this subsection (bi. 6 "(9) Any Firm Resource may be removed if and to the extent that Bonneville is expected to have an excess of firm resources over its firm load in the first Operating Year for which the Purchaser proposes to remove such Firm Resource. Bonneville's expected firm load-resource balance will be determined from the then latest publication of Bonneville's firm loads and planned firm resources issued by Bonneville. "Prior to the submittal of any Firm Resources Exhibit which includes such removal, the Purchaser shall notify Bonneville in writing of the times and amounts of Firm Resources it proposes to remove pursuant to this paragraph. If the Purchaser and other Customers under similar contracts propose to remove Firm Resources in excess of Bonneville's expected firm load-resource surplus, Bonneville shall allocate the amount of Firm Resources which each such Purchaser may remove giving priority among competing requests in the order that written notice of removal was first received. Bonneville shall notify the Purchaser in writing within 30 days after the receipt of such notice of any limitation on the amount of Firm Resources which it may remove. "(lO) Any Firm Resource may be removed from the Purchaser's Firm Resources Exhibit for any Operating Year or Years to the extent that equivalent peak and energy capability from another firm resource is added to the Purchaser's Firm Resources Exhibit for such year or years. Such added resource shall be one which was not planned as of December 5, 1980, to meet the firm load growth in the Pacific Northwest or, if so planned, has been offered for sale to Bonneville and Bonneville has declined such offer. "(11) Any Firm Resource may be added or removed for any Operating Year to the extent that such Firm Resource is correspondingly removed from or added to the Firm Resources of other Bonneville Customers in such a manner that Bonneville's total firm obligations to supply power are not changed. "(12) Any Firm Resource may be removed for any Operating Year to the extent such resource was acquired by Bonneville from the Purchaser pursuant to a separate agreement or added for any Operating Year to the extent such resource was recovered from Bonneville by the Purchaser pursuant to a separate agreement. "(13) Any Firm Resource may be added or removed for any Operating Year to the extent that the Purchaser gains or loses the Firm Resource as the result of a withdrawal pursuant to agreements in existence on December 5, 1980, between the Purchaser and others and which provide for withdrawal of resources on shorter notice than the Purchaser must give Bonneville pursuant to the provisions of this section 12; provided, however, that the Purchaser shall not make any such addition or removal on any shorter notice pursuant to this paragraph (13) than the notice period provided for in the subject agreements. "(14) Any Firm Resource may be added or removed for any Operating Year if and to the extent that Bonneville has given prior written consent." (d) Section 13(f) is deleted and replaced by a new section 13(fl as follows: 8 "(f) If Bonneville determines that the Purchaser shall be designated to purchase on a Computed Requirements basis due to a sale of generation, Bonneville shall promptly notify the Purchaser In writing, and such change in designation shall be effective on the August 1 following such notice. If Bonneville determines that the Purchaser shall be designated to purchase on a Computed Requirements basis due to the Purchaser's notice to Bonneville of intent to sell generation, Bonneville shall promptly notify the Purchaser in writing, and such change in designation shall be effective on the August 1 preceding the date of such sale as specified in the Purchaser's notice. "Following 3anuary 1 of each year Bonneville shall review the revised Firm Resources Exhibit submitted by the Purchaser on such January 1 to determine whether any of the Firm Resources added or removed are sufficient to change the Purchaser's designation between subsections (b) and (c) above. If Bonneville determines a change in designation is indicated by the provisions of such subsections, Bonneville shall promptly notify the Purchaser in writing, and such change in designation shall be effective on the August 1 Immediately preceding the date that the Firm Resource addition or removal is indicated in the Purchaser's revised Firm Resources Exhibit. If the Purchaser would have been designated to purchase on a Computed Requirements basis due to its addition of Firm Resources in the amounts specified in section 13(b) above, but the Purchaser has requested and Bonneville has agreed not to make such designation, Bonneville shall not thereafter designate the Purchaser to purchase on a Computed Requirements basis due to such addition of such Firm Resources on less than two years' notice." 9 (e) Section 16(a) Is deleted and replaced by a new section 16(a) as follows: "(a) On or before the effective date of this contract, and thereafter, on or before August 1 of each year, the Purchaser shall submit an Assured Capability Exhibit showing Its Assured Peak Capability and Assured Energy Capability for each month of such Operating Year, calculated tn the manner described In this section. If the Purchaser is a party to the Coordination Agreement, such exhibit shall be an estimated exh~blt until such time as the flnal regulation data are avallable under the Coordination Agreement. The Purchaser shall submit a final Assured Capability Exhibit based on such final data within 15 days of the date on which such final data are available under the Coordination Agreement. "In the event the Assured Capabilities of the estimated and final exhibits differ, the Purchaser shall change its monthly Assured Capabilities to reflect such differences and may adjust its Flexibility Account up to the limits permitted in section 17(d). To the extent that the Purchaser is unable to make such adjustments because of the limits of section 17(d), the Purchaser shall not be liable for any payment at the rates for reserve power or unauthorized increase. Notwithstanding the provisions of section 19(b)(1)(B), the provisions of the Relief from Overrun Exhibit shall not be applied ~f the Purchaser does not adjust its Flexibility Account to reflect such differences up to the limits permitted by section 17(d)." (f) Section 17(a) is deleted and replaced by a new section 17(a) as follows: "(a) Prior to May 15 of each year, the-Purchaser may request in writing that Bonneville sell to it during the Operating 10 Year beglnnlng on the next August 1 on a Planned Computed Requirements basis as provided for In thls subsectlon (a). The Purchaser shall also submit with such request its Estimated Firm Load for such Operating Year. If the Purchaser submits such a request, Bonneville shall approve such request by August 1 unless Bonneville determines that the Purchaser's Estimated Firm Load does not conform to the deflnltion in this agreement. In the event such a request has been made by the Purchaser prior to February 1, Bonneville shall notify the Purchaser of its approval or disappr0val of such request prior to March 15. If such request is not approved by Bonneville, tt shall identlfy specific deficlencies in the Purchaser's Estimated Firm Load and the Purchaser may submit a revised request, including revlsed Es[Imated Firm Load. If the Purchaser's request or revised request is approved by Bonneville, the Purchaser shall, prior to August 1, prepare an addendum to its Assured Capability Exhibit setting forth for each month of the Operating Year: "(1) the Estimated Firm Load which has been agreed upon by Bonneville and the Purchaser; "(2) the Purchaser's Computed Average Energy Requirements; and "(3) the Purchaser's Computed Peak Requirements. "The Estimated Firm Load set forth in such addendum shall be deemed to be the Purchaser's Actual Firm Load during such Operating Year for the purpose of determining the Purchaser's Computed Peak Requirements and Computed Average Energy Requirements and for the purpose of determining whether the Purchaser Is using its purchase from Bonneville for resale." ll (g) Section 17(d) ls deleted and replaced by a new section 17(d) as follows: "(d) If the Purchaser purchases on the bas}s of Actual Computed Requirements and has Seasonal Storage, ~t may adjust its monthly Assured Energy Capability subject to the limitations of this subsection (d). The Purchaser shall keep a Flexibility Account which shall show as of the end of each month of the Operating Year the accumulated balance of adjustments made by the Purchaser to its Assured Energy Capab~lity. The Flexibility Account balance shall in}tially be zero on August 1 of.each Operating YeaY; provided, however, that if a Purchaser begins to purchase on the basis of Actual Computed Requirements under this contract other than at the beginn~ng of an Operating Year, the Inlt~al balance In the Flex~bility Account shall be the same as if the Purchaser had been purchasing on the bas~s of Actual Computed Requirements from the beginning of such Operating Year. A reduction }n the Assured Energy Capability in any month shall be accumulated as a positive number in the Flexibility Account and an increase }n the Assured Energy Capability in any month shall be accumulated as a negative number in the Flexibility Account. "(1) The Purchaser shall make all adjustments to the Purchaser's Assured Energy Capability in accordance with the following: "(A) The Flexibility Account balance shall be brought to zero at the end of each Operating Year and at the end of the Critical Period if the Critical Per}od ends w~thin the Operating Year. "(B) Except for the Flexibility Account balance previously retained in subparagraph (D) below, 12 the amount of change in the Flexlblllty Account for any month of the Operating Year shall be limited to the sum of the following: "(i) For Firm Resources whtch the Purchaser inCludes in Coordination Agreement planning, such monthly change shall not exceed the limit allowed pursuant to section 9(m)(3) of the Coordination Agreement; and For Firm Resources which the Purchaser does not include in Coordination Agreement planning, such monthly change shall not exceed the sum of the followlng: "(I) The algebraic difference for such month between the Purchaser's Estimated Firm Energy Load less the Estimated Firm Energy Load, if any, submitted under Coordination Agreement planning and the Purchaser's Actual Firm Energy Load less the Actual Firm Energy Load, if any, submitted under the Coordination Agreement; and "(II) The algebraic d~fference in energy capability between the actual maintenance outages of such resources for such month and the scheduled maintenance outages of such resources used in the calculation of the Purchaser's Assured Capability for such month; and 13 "(III) For specific other purposes as mutually agreed by Bonneville and the Purchaser. "(C) The Flexibility Account balance shall at no time have a larger negative balance than the sum of the following: "(I) For those Firm Resources which the Purchaser includes in Coordination Agreement planning, five percent of that portion of the Purchaser's Firm Energy Load Carrying Capability attributable to such Firm Resources as determined pursuant t° section 16(b)(1)(A) remaining between the date of such balance and the date the Flexibility Account balance is required to be zero pursuant to subparagraph (Al above and; "(il) For those Firm Resources which the Purchaser does not include in Coordination Agreement planning, five percent of the energy capability of the hydroelectric resources and other than hydroelectric resources, as computed in section 16(b)(2), remaining between the date of such balance and the date the Flexibility Account balance is required to be zero pursuant to subparagraph (Al above. II(D) The Flexibility Account shall at no time have a larger positive balance than the amount by which the Purchaser's Firm Resources and other arrangements are capable of supporting an increase in the Purchaser's Assured Energy 14 Capability in the month or months in which the Purchaser intends to use such increased capability. At the end of each month for whtch the Purchaser's Flexibility Account has a posttive balance, the Purchaser shall submtt in wrltlng to Bonnev}lle documentation substantiating such ~ncreased capability. "(E) To the extent that the adjustments to the Flexibility Account are attributable to F~rm Resources which the Purchaser Includes in Coordlnation Agreement planning, such adjustments shall be the same as the adjustments which are reported monthly to Coordlnat~on Agreement parties pursuant to section 9(m) of the Coordination Agreement. "(2) If the Purchaser intends to adjust 1ts Assured Energy Capability for any month, the Purchaser shall submit written notice to Bonneville within ten days of the last day of such month showlng the Purchaser's best estimate of its Actual Firm Energy Load and a tentative adjusted Assured Energy Capability for such month. If no such notice ts g~ven wlthtn ten days after the end of such month, the Assured Energy Capability determlned for such month prior'to the Operatlng Year shall be applled to such month and shall not be changed thereafter. If such notice has been submitted, the Purchaser shall submit a final adjusted Assured Energy Capability w~thin 30 days of the last day of such month or such later date approved by Bonneville which shall not differ from the tentative adjusted Assured Energy Capability by more than the difference between the Purchaser's Actual Firm Energy Load for such month and the estimate of that load shown in such not~ce." 15 (hi Section 17(I) shall be deleted and replaced by a new section 17(il as follows: "(il Prior to January 15 of each year the Purchaser shall advise Bonneville in writing of its best estimate of its monthly Computed Peak Requirements and Computed Average Energy Requirements for the 48-month period beginning on the next August 1. Information so obtained will be used by Bonneville in its operational planning. Information submitted pursuant to this subsection (il shall be as accurate as possible, but shall not be binding on the Purchaser." 3. Accounting for the Transition Period. BPA and the Purchaser acknowledge and agree to be bound by their obligations and responsibilities for the delivery,' sale, and purchase of power and energy for the month of July, 1991, notwithstanding the contractual and administrative change associated with the redefinition of the Operating Year. BPA and the Purchaser further agree that the following provisions shall apply to account for the month of July, 1991 and the Operating Year beginning August l, 1991: (al The Firm Resources Exhibit submitted by January l, 1991 shall be effective for the period July l, 1991 through July 31, 1998. (bi If the Purchaser purchases pursuant to section 17(al, then the following shall apply: (l) The Assured Capability Exhibit submitted pursuant to section 16(al of the Power Sales Contract shall include data for the months July, 1991 through July, 1992. (2) The allocation of the Purchaser's Assured Energy Capability among months of the Operating Year shall be as stated in 16 section 16(c)(2) of the Power Sales Contract, and for the month of July, 1991 shall be equal to: (A) the specified Assured Energy Capability for that month under the Critical Period beginning September l, 1990, for resources included in Coordination Plannlng; or (B) the Assured Energy Capability for that month as calculated pursuant to section 16(b)(2) for the Crltlcal Perlod beglnnlng September 1, 1990. (3) Data submitted by January 15, 1991 pursuant to section 17(I) of the Power Sales Contract shall be for the 49-month period July l, 1991 through July 31, 1995. (c) If the Purchaser purchases power pursuant to section 17(b), then the following shall apply: (1) The Contracted Requirements schedule submitted with the Purchaser's revised Firm Resources Exhibit by January 1, 1991 to Bonneville pursuant to sectton 12(b) shall include a schedule for July 1, 1991 and shall be effective for the period July l, 1991 through July 31, 1998. (2) The Purchaser shall allocate its Contracted Requirements energy purchase submitted pursuant to section 17(b)(7) for the period July, 1991 through July, 1992 in a manner which results in a requirement on Bonneville each month equal to or between the amounts determined by (A) or (B) below: (A) one-thirteenth of the Purchaser's annual Contracted Requirements energy purchase from Bonneville for the period July, 1991 through July, 1992; and (B) a function of the product of the Purchaser's Contracted Requirements energy purchase from 17 Bonneville for the period July, 1991 through July, 1992, obtained by dividing the Estimated Firm Energy Load for that month by the total of the 13 Estimated Firm Energy Loads for the period July, 1991 through July, 1992. (3) Data submitted by January 15, 1991 pursuant to section 17(i) of the Power Sales Contract shall be for the 49-month period July l, 1991 through July 31, 1995. (d) If the Purchaser purchases power pursuant to section 17(c), then the following shall apply: (1) The Assured Capabillty Exhibit submitted pursuant to section 16(a) of the Power Sales Contract for the period July l, 1991 through July 31, 1992 shall include data for the months for the 13 months of July, 1991 through July, 1992. (2) The allocation of the Purchaser's Assured Energy Capability among months of the 1992 Operating Year shall be as stated in section 16(c)(2) of the Power Sales Contract, and for the month of July, 1991 shall be equal to: (A) the specified Assured Energy Capability for that month under the Critical Period beginning September l, 1990, for resources included in Coordination Planning; or (B) the Assured Energy Capability for that month as calculated pursuant to section 16(b)(2) for the Critical Period beginning September 1, 1990. (3) The Flexibility Account under section 17(d) shall be zero on July 1, t991. Calculations to determine the balance of the Flexibility Account shall be based on the 13-month 18 Operating Year for the perlod July l, 1991 through 2uly 31, 1992. Thereafter, the Flexibll~ty Account shall be determined as described In section 17(d) of the Power Sales Contract as amended by section 2(g) above. (4) Data subm}tted by January 15, for the year 1991 only, pursuant to section 17(~) of the Power Sales Contract 19 shall be for the 49-month period July 1, 1991 through July 31, 1995, and thereafter such data shall be submitted in accordance with section 17(i) of the Power Sales Contract as amended by section 2(h) above. IN WITNESS WHEREOF, the parties hereto have executed this Amendatory Agreement in several couterparts. UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration enior Assistant AdmlniF~,gtor Date JUN 2 8 1991 CITY OF ASHLAND Title ATTEST: Title Date (VS6-PMCG-4473c/4498c/4499c/4500c) 20