HomeMy WebLinkAbout1982-044 Agrmt AMND 2 - BPA No DE-MS79-81BP90432RESOLUTION NO. 82-~--'/
A RESOLUTION OF THE CITY OF ASHLAND,
OREGON APPROVING AMENDATORY AGREEMENT
NO. 2 TO PO~R SALES CONTRACT NO. DE -
MS79 - 81 BP 90432 WITH THE BONNEVILLE
POWER ADMINISTRATION.
WHEREAS, proposed amendments to the power sales contracts in settle-
ment of lawsuits, and to fully implement the Regional Power
Act, have been offered by the Bonneville Power Administrat-
ion; and
WHEREAS,. it is the desire of the City of Ashland to accept the amend-
ments to its power sales contract.
'NOW' 'iH£REFOP~ BE iT ~soLVED by the Mayor and City Council as
rO££OWS:
SECTION 1. Amendatory Agreement No. 2 to Power Sales Contract
Ho. DE - MS 79 - 81 BP 90432 with the Bonneville Power Administration
is hereby approved and accepted by the City of Ashland.
SECTION 2. The Mayor and City Recorder are hereby authorized and
~irec'ted to sign the amendment.
The foregoing Resolution was READ and DULY ADOPTED at a regular meet-
ing of the City Council of the City of Ashland on the ~ day of
Nan E. Franklin
City Recorder
ord°~ Medaris
Mayor
Amendatory Agreement No. 2 to
Contract No. DE-MS79-81BP90432
8/10/82
AMENDATORY AGREEMENT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through
~um~NiSTRATION
and
THE CITY OF ASHLAND
This AMENDATORY AGREEMENT, executed _.~_".~'/~_~":~4'~L¢-, ~z, 19,S¢2_, by the
UNITED STATES OF AMERICA (Government), Department of Energy, acting by and
through the BONNEVILLE POWER ADMINISTRATION (Bonneville), and THE CITY OF
ASHLAND (Purchaser), a municipal corporation of the State of Oregon,
WITNESSETH :
WHEREAS Bonneville offered a power sales contract to the Purchaser on
August 28, 1981, and the parties hereto have executed such power sales
contract (Contract No. DE-MS79-81BP90432, which as amended is hereinafter
referred to as "Power Sales Contract") providing for the sale and delivery of
firm power and energy to the Purchaser; and
WHEREAS the parties hereto have agreed to the following amendments to the
Power Sales Contract offered August 28, 1981; and
WHEREAS 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;
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Effective Date of Agreement. This amendatory agreement shall be
effective on the later of 2400 hours on the date of execution or the effective
date of the Power Sales Contract.
2. Amendment of Power Sales Contract. The Power Sales Contract is
hereby amended as follows-
(a) Section 2 is amended by adding a new section 2(b) as follows:
"(b) This contract may be terminated by the Purchaser upon
(i) 7 years' prior notice to Bonneville; (ii) concurrent submission by the
Purchaser to Bonneville of a Firm Resource Exhibit reciting zero demand
upon Bonneville as of the proposed date of termination; and (iii) a
determination that termina'tion will cause no adverse economic impacts on
Bonneville's other customers."
(b) Section 4 is amended by deleting Exhibit C and replacing it with a
new Exhibit C attached hereto and by this reference made a part of this
contract in accordance with the specific provisions of this contract relating
to Exhibit C.
(c) Section 11 is deleted and replaced by a new section 11 as follows:
"11. COmpensation Proqram for Reqional Curtailment of Firm Loads.
"(a) The parties agree to commence negotiations as soon as
practicable to develop a comprehensive agreement among utilities in the
Pacific Northwest to buy and sell electric energy made available due to
2
curtailments in consumption or from resources on a party's system during a
period when governmental bodies having the authority to do so have so
ordered such curtailments or sales.
(b)(1) If the Bonneville Power Administrator and the governor of the
State encompassing the Purchaser's service a'rea publicly appeal for
curtailments of electric power consumption or if mandatory curtailments of
electric power consumption in the Purchaser's service area are ordered by
governmental bodies having the authority to so order, Bonneville shall
compensate the Purchaser as provided in this section for any reduction in
Bonnevillels obligation to supply Firm Power to the Purchaser. If the
Purchaserls service area extends into more than one State and all of such
States do not participate in the curtailments described above, the
procedures of this section shall be applied only to those loads in service
areas in the participating States.
"Compensation under this section shall not be available to the
Purchaser during any Operating Year that the Purchaser is purchasing Firm
Power from Bonneville on a Planned Computed Requirements or Contracted
Requirements basis. The compensation under this section may be reduced
partially or in its entirety as described in paragraph (4) or
paragraph (5) below. The reductions described in paragraph (4) below
shall be made after the adjustments described in paragraph (5) below.
"Compensation shall begin with the first full month following such
appeal for curtailment or ordered curtailment. Compensation shall end
with the month during which the Bonneville Power Administrator and the
appropriate State political leaders publicly indicate that a need for
curtailment no longer exists or such State officials rescind an order for
curtailment.
(2) Bonneville shall pay the Purchaser each month an amount equal to
the product, of the rate set forth in this paragraph and the amount of load
curtailment determined in paragraph (3) below unless such amount of load
curtailment is reduced partially or in its entirety as set forth in
paragraph (4) below. Such rate shall be the amount in mills per
kilowatthour by which the Purchaser's average revenue from retail sales of
electric energy exceeds the wholesale firm power rate the Purchaser would
have paid Bonneville for the increment of energy determined pursuant to
paragraph ('3) below.
(3) The amount of regional load curtailment on the Purchaser's
system during a month shall be deemed to be the amount, if any, by which
the Purchaser's Estimated Firm Energy load, after adjustment as specified
below, exceeds the Purchaser's Actual Firm Energy load for such month
after adjustment, if any, as set forth below. If the Purchaser does not
regularly publish an Estimated Firm Energy Load, such Purchaser's
Estimated Firm Energy Load for purposes of this section shall be the
Purchaser's component of Bonneville~s latest published estimate of its
firm energy loads.
The Purchaser's most recently published Estimated Firm Energy Load
shall be used herein to determine amounts of regional load curtailment in
conjunction with information submitted by the Purchaser to Bonneville as
soon as possible following the end of each month in which a regional load
curtailment program is in effect. Such information shall be provided for
each such month and for the three most recent, but not necessarily
consecutive, months in which a regional load curtailmemt program or a load
curtailment program pursuant to section 17(e) was not in effect. Such
information shall include: (A) the Purchaser's Actual Firm Energy Load
for such months; and (B) detail on any separately identifiable significant
changes in the Purchaser's Actual Firm Energy Load from its Estimated Firm
Energy Load which were not the result of a regional load curtailment
program, a load curtailment program pursuant to section 17(e), or an
interruption of load for the purpose of providing economic operation of
the Purchaser's system including its Firm Resources.
The Purchaser's Actual Firm Energy Loads for all months used for
calculations herein shall be adjusted to reflect only those loads in the
Purchaser's service area which are in States participating in the regional
curtailment program. Such adjustments shall be made by subtracting the
portion of the Purchaser's Actual Firm Energy Load in States which are not
participating in the regional curtailment program from the Purchaser's
Actual Firm Energy Load'for such month. Such adjustment may be changed
monthly to reflect changes in the States which are participating in the
regional curtailment program.
The Purchaser's Estimated Firm Energy Load for all months for which
information was requested above shall first be adjusted to reflect
separately identifiable changes in load which were not the result of a
regional load curtailment program, a 'load curtailment program pursuant to
section 17(e), or an interruption of load for the purpose of Providing
economic operation of the Purchaser's system including its Firm
Resources. The Estimated Firm Energy Load shall then be adjusted in the
manner specified for Actual Firm Energy Loads above to reflect only those
loads in the Purchaser's service area which are in States participating in
the regional curtailment program. An adjusted Estimated Firm Energy Load
for each month in which a regional load curtailment program is in effect
shall then be determined by multiplying the Estimated Firm Energy Load for
such month, as adjusted above, by the ratios of the Purchaser's Actual
Firm Energy Load, as adjusted above, to its Estimated Firm Energy Load, as
adjusted above, for the three most recent, but not necessarily
consecutive, months in which a regional load curtailment program or a load
curtailment program pursuant to section 17(e) was not in effect.
(4) if regional curtailment has been requested after July 1, 1983,
because Bonneville is unable to acquire sufficient resources to meet its
firm obligations, Bonneville shall reduce the amount of load curtailment
determined in paragraph (3) above during any month if the Purchaser's load
growth as specified in subparagraph (A) below exceeds the amount of
resources which the Purchaser dedicated to its own load or made available
to Bonneville as specified in subparagraph (B) below. Such amount of load
curtailment for each month shall be redu'ced partially or in its entirety
by the amount which (A) exceeds (B) below:
(A) the excess of the Purchaser's Actual Firm Energy Load in
average megawatts over the Purchaser's Actual Firm Energy Load in
average megawatts for the same month during the Operating Year prior
to the first Operating Year for which Bonneville~s load growth notice
provided in section 10(e) of this agreement is effective; and
(B) the annual firm energy capability in average megawatts of
(i) resources acquired by Bonneville from the Purchaser under
P.L. 96-501; and (ii) the portion of the Purchaser's Firm Resources
which are included as 5(b)(1)(B) resources in its Firm Resources
Exhibit. Such resources shall not include conservation programs to
the extent such programs have been reflected in the Purchaser's
Actual Firm Energy Load in subparagraph (A) above.
6
(5) If the Purchaser purchases Firm Power from Bonneville on an
Actual Computed Requirements basis, the amount of load curtailment
determined in paragraph (3) above for any month shall be determined after
the following adjustments:
(A) The amount of load curtailment determined in paragraph (3)
above shall be reduced to provide compensation only for the portion
of the Purchaser's Actual Firm Energy Load served by Bonneville.
Such reduction shall be made by increasing the Purchaser's Actual
Firm Energy Load used to determine the amount of load curtailment in
paragraph (3) by the amount of load curtailment attributable to the
Purchaser's Firm Resources. Such increase in the Purchaser's Actual
Firm Energy Load shall be deemed to be the amount determined in the
manner specified in section 17(e)(5) even if the Purchaser has not
implemented a load curtailment program pursuant to section 17(e).
(B) If the Purchaser initially purchased Firm Power from
Bonneville on a Metered Requirements basis, but is purchasing Firm
Power from Bonneville on an Actual Computed Requirements basis at the
time regional curtailment is requested hereunder, subparagraph (A)
above will apply only if the Purchaser has implemented a load
curtailment program pursuant to section 17(e). This subparagraph (B)
shall no longer apply if the Purchaser was offered the opportunity to
be a party to a comprehensive agreement among utilities in the
Pacific Northwest described in subsection (a) above after it
commenced purchasing on a Computed Requirements basis."
follows:
Section 17(b) is deleted and replaced by a new section 17(b) as
"(b) On or before the effective date of this contract, and
thereafter, as provided in paragraph (1) below, the Purchaser may request
in writing to purchase on the basis of Contracted Requirements by
submitting the data and proposed schedule of Contracted Requirements
purchases of peak and energy pursuant to paragraph (2) below.
(1) The Purchaser may request that it begin to purchase on a
Contracted Requirements basis at the time of submittal of any revised
Firm Resources Exhibit. Such request shall become effective, in
accordance with this subsection (b), for the seventh Operating Year
of such exhibit, or for an earlier Operating Year if Bonneville is
expected to have an excess of firm load over its firm resources in
the first Operating Year for which the Purchaser requests to purchase
on a Contracted Requirements basis. Bonneville's expected firm
load-resource balance and the priority of competing requests for
purposes of allocating the availability of this subparagraph of
paragraph (1) shall be determined in the manner described in
section 12(b)(7) above.
The Purchaser may elect to cease purchasing on a Contracted
Requi.rements basis at the time of submittal of any revised Firm
Resources Exhibit. Such election shall become effective for the
seventh Operating Year of such exhibit, or for an earlier Operating
Year if 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 cease purchasing on a Contracted Requirements
basis. Bonneville's expected firm load-resource balance and the
priority of competing requests for purposes of allocating the
availability of this subparagraph of paragraph (1) shall be
determined in the manner described in section 12(b)(9) above.
(2) If the Purchaser requests to purchase on the basis of
Contracted Requirements, it shall submit to Bonneville in the
Purchaserls initial Firm Resources Exhibit in addition to data
required in section 12(a), the Purchaserls annual Estimated Firm Peak
Load, the annual average of Purchaserls Estimated Firm Energy Load,
the estimated Assured Capabilities of the Purchaserls Firm Resources
corresponding to the time period of such loads, and a schedule of
annual Contracted Requirements purchases of peak and energy for each
of the first seven Operating Years. If the Purchaser's Contracted
Requirements peak purchase amount for any such Operating Year is
based on its Estimated Firm Peak Load for the months June through
November, such amount shall be the Purchaser's Contracted
Requirements peak purchase amounts for June through November and the
Purchaser shall also submit a lower amount which is based on its
Estimated Peak Load for the months December through May. With each
revised Firm Resources Exhibit submitted in accordance with
section 12(b), such Purchaser shall submit a new schedule deleting
the amounts of Contracted Requirements peak and energy purchases for
the current Operating Year and adding the amounts to be purchased in
the seventh succeeding Operating Year together with Purchaser's
annual Estimated Firm Peak Load and annual average Estimated Firm
Energy Load in the seventh Operating Year, and new information on the
estimated Assured Capability of all Firm Resources and Estimated Firm
9
Loads for which information is provided for under paragraphs (4),
(5), and (6) below. Such revised 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.
Submission of the data specified in this paragraph (2) shall be in
lieu of preparation of an Assured Capability Exhibit as provided for
in section 16 above.
If Bonneville determines that the Purchaser's Estimated Firm
Loads do not conform to the definitions in this contract, Bonneville
shall notify the Purchaser, as soon as practicable, of the specific
deficiencies and the Purchaser may submit revised data or revised
schedule of Contracted Requirements purchases. If Bonneville expects
to approve a reduced quantity of peak or energy in any period of time
included in a schedule of Contracted Requirements purchases and
Bonneville determines that such reduction under this paragraph (2) or
paragraph (6) below is in any way affected by the Purchaser's
Estimated Firm Loads, Bonneville shall notify the Purchaser in the
manner specified above of specific deficiencies in the Purchaser's
Estimated Firm Load data submission and shall determine any reduction
described in this paragraph (2) on Bonneville's determination of the
Purchaser's Estimated Firm LoadS unless the Purchaser submits revised
data or revised schedule of Contracted Requirements purchases prior
to the start of the Operating Year following, initial submission of
the data and such data or schedule are approved by Bonneville.
Bonneville shall approve either each requested schedule of
Contracted Requirements purchases or a reduced schedule of Contracted
Requirements purchases in any period of time included in such
10
schedule; provided, however, that such reduced schedule shall not
be reduced below the lesser of the following:
(A) the amount by which the Purchaser's Estimated Firm
Load exceeds its estimated Assured Capability in such period of
time; or
(B) the minimum amoun~ of peak or energy which Bonneville
would be obligated to make available to the Purchaser under the
following assumptions: (1) such amount shall be determined as
though a notice of restriction issued under section 7(a) was in
effect during such period of time for the Purchaser and its
class of Customers; (2) such amount shall be limited to the
amounts that Bonneville would be obligated to make available to
the Purchaser as determined under section 7(e), section 7(f),
and Exhibit D for amounts of resources acquired by Bonneville
under P.L. 96-501 from or on behalf of the Purchaser or its
class of Customers with the amounts calculated under
section 7(f) determined as though section 7(f)(1) and 7(f)(2)
did not apply;and (3) such amount shall be deemed to be equal
to the amount specified in (A) above, unless Bonneville has
issued a notice of restriction under section 7(a) to such class
applicable to such period of time or has reasonable expectation
of issuing such notice, pursuant to the provisions of section 7,
either with, or in the absence of, this reduction.
(3) The amounts of power shown in Purchaser's schedule of
Contracted Requirements purchases, as submitted with the Firm
Resources Exhibit for an Operating Year and approved by Bonneville,
shall not be revised thereafter except for changes as specifically
11
provided for by paragraphs (4), (5) and (6) below. The Estimated
Firm Load on which the Purchaser's Contracted Requirements purchases
for each Operating Year were based shall be deemed to be the
Purchaser's Actual Firm Load during such Operating Year for the
purpose of determining whether the Purchaser is using its purchase
from Bonneville for resale.
(4) If the Purchaser makes a change in its Firm Resources as
permitted by section 12(b), the Purchaser shall, at the time such
change is submitted to Bonneville, make a change in its schedule of
Contracted Requirements purchases shown in its Firm Resources
Exhibit. Such change shall be equal and opposite to the change in
the Purchaser's Assured Capability resulting from such change in Firm
Resources.
(5) If the Purchaser's Estimated Firm Loads change for any
Operating Year for which the Purchaser is purchasing on a Contracted
Requirements basis, and if such change corresponds to changes in
Purchaser's Firm Resources which are permitted by sections 12(b)(7),
(9), and (11) (as though an increase in Estimated Firm Loads
corresponds to a removal of Firm Resource and a decrease in Estimated
Firm Loads corresponds to an addition to Firm Resource) the Purchaser
may submit such changed loads to Bonneville at the time it submits a
revised Firm Resources Exhibit and may, at such time, make an
equivalent change in its schedule of Contracted Requirements
purchases shown in its Firm Resources Exhibit.
(6) If prior to any Operating Year Bonneville determines that
it would be required to acquire a resource under P.L. 93-454 or.
Section 6(a)(2) of P.L. 96-501 to meet Bonneville's firm loads
12
including the Purchaser's previously approved schedule of Contracted
Requirements purchases for such Operating Year, Bonneville may
request the Purchaser to submit revised Estimated Firm Loads for such
Operating Year for Bonneville's approval in the manner specified in
section 17(b)(2) above. Such request shall be made not less than
30 days prior to the date for submission of data for the modified
regulation under the Coordination Agreement. Such revised Estimated
Firm Loads shall be the Purchaser's most current estimate and shall
include power savings for such Operating Year from all conservation
measures and direct application renewable resources including those
funded by Bonneville either directly or through billing credits. If
due to the Purchaser's revised Estimated Firm Loads, the Purchaser's
schedule of Contracted Requirements purchases are in excess of the
amount specified in section 17(b)(2)(A) above, Bonneville may reduce
the Purchaser's schedule of Contracted Requirements purchases to the
amount specified in section 17(b)(2)(A) above. Bonneville shall
notify the Purchaser of such reduction prior to the submission of
data for the modified regulation.
In addition the schedule of Contracted Requirements purchases
shown in the Purchaser's Firm Resource Exhibit may be changed for any
Operating Year if and to the extent that Bonneville has given prior
written consent.
(7) Within 7 days after receipt of the preliminary regulation
under the Coordination Agreement prior to each Operating Year, the
Purchaser shall allocate its annual Contracted Requirements energy
purchase among months of such Operating Year in a manner which
13
results in a requirement on Bonneville each month equal to or between
the amounts determined by (A) or (B):
(A) one-twelfth of the Purchaser's annual Contracted
Requirements energy purchase from Bonneville for that Operating
Year; and
(B) a fraction of such annual Contracted Requirements
energy purchase obtained by dividing the Estimated Firm Energy
Load for that month by the total of the twelve Estimated Firm
Energy Loads for that Operating Year.
If requested by the Purchaser and if Bonneville agrees, the Purchaser
may allocate its annual Contracted Requirements energy purchase among
months so as to place monthly requirements on Bonneville other than
those determined by (A) or (B) above to reflect a period of planned
thermal maintenance or other causes. The Purchaser's total
Contracted Requirements purchase shall not be changed by such
reallocation.
(8) For the purpose of determining the amount of power
Bonneville shall make available to the Purchaser under this contract,
the Purchaser's Contracted Requirements peak purchases shown in its
schedule of such purchases submitted pursuant to paragraph (2) above
shall be deemed to be the Purchaser's Computed Peak Requirement in
each month of the Operating Year as specified in such schedule and
the twelve monthly amounts of energy determined pursuant to
paragraph (7) above shall be deemed to be the Purchaser's Computed
Average Energy Requirement for each such month of the Operating Year.
(9) Before requesting implementation on its behalf of a
regional load curtailment program affecting loads besides its own or
14
(e)
follows:
a regional shortage-sharing mechanism affecting such loads, the
Purchaser shall purchase all energy, to the extent necessary to make
up its resource deficiency, from resources available to the Purchaser
as documented by Bonneville at a cost equal to or less than the sum
of 115 percent of the incremental operating cost of oil-fired
generation from simple cycle combustion turbines and the cost for
transmission and transmission losses not to exceed 15 percent of the
cost of such generation.
For the purpose of this paragraph (9) a Purchaser's resource
deficiency shall be the amount, if any, by which the Purchaser's most
current estimate of its annual average Estimated Firm Energy Load for
such Operating Year exceeds the sum of:
(A) The estimated Assured Energy Capability of the
Purchaser's Firm Resources for such Operating Year, determined
in the manner provided in paragraph (2) above;
(B) The assured energy capability, determined in the
manner provided in section 16 and paragraph (2) above, of
resources acquired by the Purchaser on a firm basis in addition
to the Purchaser's Firm Resources for such Operating Year; and
(C) The amounts of energy shown in the Purchaser's
schedule of Contracted Requirements purchases for such Operating
Year."
Section 17(c) is deleted and replaced by a new section 17(c) as
"(c) If the Purchaser does not request that Bonneville sell to it on
the basis of Planned Computed Requirements or Contracted Requirements or
if Bonneville disapproves the Purchaser's request to purchase on the basis
15
of Planned Computed Requirements, the Purchaser shall purchase on the
basis of Actual Computed Requirements and its Computed Peak Requirement
and Computed Average Energy Requirement shall be determined after the end
of each month based on the Purchaser's Actual Firm Load."
(f) Section 17(g)(1) is deleted and replaced by a new section 17(g)(1) as
follows:
"(1) During Heavy Load Hours: the larger of the Purchaser's
Computed Peak Requirement or its Computed Average Energy Requirement;
provided, however, that after June 30, 1987, Bonneville may limit
the amounts of power it makes available during up to six Heavy Load
Hours of each day designated by Bonneville to amounts less than the
Purchaser's Computed Average Energy Requirement but not less than the
Purchaser's Computed Peak Requirement. Bonneville shall not so limit
the amounts of power it makes available unless: (A) Bonneville has
informed the Purchaserls representative by the time specified in the
Power Scheduling Provisions Exhibit that Bonneville will make such
limitation; (B) Bonneville has limited all other Customers having
contracts which permit this limitation approximately in proportion to
the amount by which each such Customer's Computed Average Energy
Requirement exceeds its Computed Peak Requirement for such month; and
(C) Bonneville has determined that such limitation is reasonably
necessary either (t) to enable Bonneville to meet loads which
Bonneville serves from firm load carrying capability as defined in
the Coordination Agreement or (2) to serve other loads in the Pacific
Northwest which Bonneville has previously committed to serve provided
that the Purchaser, using its best efforts, is able to comply with
such request on an operating basis. Bonneville shall demonstrate to
16
the Purchaser and to other Customers having similar contracts that
Bonneville has sufficient firm capacity resources to meet its firm
capacity obligations without invoking the limitations of this
paragraph (1) before Bonneville renews any existing contracts or
enters into any new contracts to deliver capacity to entities outside
the Pacific Northwest."
(gl Section 19(c) is amended by adding a new section 19(c)(3) as follows:
"(3) For any amounts due as compensation for reductions in
Bonneville's obligation to supply Firm Power as set forth in
section 11{b}."
IN WITNESS WHEREOF, the parties hereto have executed this amendatory
agreement in several counterparts.
UNITED STATES OF AMERICA
Department of Energy
THE CITY OF ASHLAND
ATTES-T~'.- ~-,
By "'--~-~/~
Date
(WP-PKI-1419c)
17
Exhibit C, Page I of 2
Table 1
8/10/82
Customer Service Objectives Exhibit
Table 1 of the Customer Service Objectives Exhibit is applicable to the
Purchaser if the Purchaser is a public body, cooperative or Federal agency.
The provisions of Table 1 are subject to the provisions of Bonneville's
Customer Service Policy, which Bonneville may amend from time to time.
Bonneville will provide service to its Customers by constructing transmission
lines (115 kV or higher) and 'stepdown substations to the Customers utilization
voltage (12.5 kV or higher), (Customer Service Facilities), which are
necessary to provide the widest possible, diversified and efficient use of
electric power. To accomplish this objective, construction of new Customer
Service Facilities will be undertaken following studies conducted jointly by
Bonneville and the Customer to determine the best engineering, economic, and
environmental plan of service based on a one utility concept of evaluation.
Bonneville~s primary transmission responsibility is to provide a stable and
reliable transmission system for the integration and delivery of the bulk
power requirements in the Pacific Northwest. It is intended that the Customer
will assume the primary role for distribution of this power to the Consumer.
In recognition of this basic division of responsibility, Bonneville will
construct the necessary Customer Service Facilities, providing that capital
recovery is reasonably assured, until such time that the load density in the
area under consideration reaches a point that requires construction of
customer service substations in relatively close proximity. At this point,
the Customer will assume as part of its distribution utility responsibility,
construction of the transmission lines and stepdown substations required to
serve the loads within this high load density area. Therefore, the scope of
Bonneville~s participation will be narrowed to providing the required high
voltage transmission facilities into the load area and stepdown substations to
the local transmission level while conforming with Bonnevillets published
reliability standards, which may be amended by Bonneville from time to time.
It is the intent that the dividing line between Bonnevillets transmission
responsibility and the Customer's distribution responsibility be a dynamic
relationship which will shift from Bonneville to the Customer as the load
density in a particular area increases.
Joint utility planning and one utility concept of evaluation will be the
foundation for all Bonneville customer service planning efforts. These
concepts have become more important in recent years to insure maximum
electrical system efficiencies, and minimize impact on the environment in
addition to meeting other economic and engineering criteria.
Bonneville~s Customer Service Policy will encourage additional joint utility
planning including (1) better long-range planning; (2) energy loss reduction
studies, including common standards of conductor economics, and distribution
Exhibit C, Page 2 of 2
Table 1
8/10/82
voltage levels; (3) voltage regulation on the transmission and distribution
system; and (4) elimination of duplicate facilities such as may result from
separate substations and low voltage circuit breakers.
At the request of Purchaser, which has not specified an amount of residential
load or has specified an amount of zero under Exhibit D of the Residential
Purchase and Sale Agreement, Bonneville shall enter into a transmission
services agreement which shall provide benefits to such Purchaser for its
transmission system which the Purchaser would have received under a
Residential Purchase and Sale Agreement and the Average System Cost
methodology.
(WP-PKI-1419c)
Exhibit C, Page I of 1
Table 2
8/10/82
Customer Service Objectives Exhibit
Table 2 of the Customer Service Objectives Exhibit is applicable to the
Purchaser if the Purchaser is an investor-owned utility. Bonneville and the
Purchaser have not agreed on objectives for the provision of new Customer
Service Facilities by Bonneville. Bonneville shall not have any obligation to
provide Customer Service Facilities to the Purchaser until Bonneville and the
Purchaser mutually agree upon a set of objectives for the provision of such
facilities.
At the request of Purchaser, which has not specified an amount of residential
load or has specified an amount of zero under Exhibit D of the Residential
Purchase and Sale Agreement, Bonneville shall enter into a transmission
services agreement which shall provide benefits'to such Purchaser for its
transmission system which the Purchaser would have received under a
Residential Purchase and Sale Agreement and the Average System Cost
methodology.
(WP-PKI-1419c)
Department of Energy
Bonneville Power Administration
Eugene District
Room 206, U.S. Federal Building
211 East 7th Street
Eugene, Oregon 97401
August 16, 1982
Mr. Brian L. Almquist
City Administrator
City of Ashland, City Hall
Ashland, OR 97520
Dear Mr. Almquist:
Enclosed for your consideration are four copies each of: (1) Amendatory
Agreement No. 1 to the Residential Purchase and Sale Agreement; and
(2) Amendatory Agreement No. 2 to the Power Sales Contract, both parent
agreements offered to your utility on August 28, 1981.
The settlement amendments are a result of discussions between Bonneville Power
Administration (BPA) and its customers subsequent to the above offers. These
amendments were discussed during our July contract workshops and in our
June 7, 1982, Federal Register Notice entitled "Proposed Amendments to Utility
Power Sales Contracts Required for Settlement of Lawsuits and Full Imple-
mentation of Pacific Northwest Electric Power Planning and Conservation Act."
Since these proposed amendments are not a part of the initial contract offers,
they do not have to be executed and returned to Bonneville by August 28,
1982. BPA intends to allow customers a reasonable period of time to consider
the amendments. The period will not terminate prior to the earlier of:
(1) 14 days after the transmission services agreement is offered to public
agency customers by BPA; or (2) 120 days after the amendments are offered by
BPA. This period of time to consider the amendments does not extend the
1-year period available to each customer to determine whether to sign the
Power Sales Contract or Residential Purchase and Sale Agreement offered on
August 28, 1981.
If you have executed the applicable parent agreements by August 28, 1982,
please sign and return to this office three copies of the applicable
amendments which pertain to your utility and retain one copy for your files.
Also, please execute and return authorizing resolutions, as appropriate.
Sincerely,
Ladd Sutton
District Manager
Enclosures