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HomeMy WebLinkAbout2005-254 CONT Rev #1 - BPA Environmental ~BONNEVILLE ICY}I ENVIRONMENTAL ~ FOUNDATION . # . 133 SW 2nd Ave, Suite 410 Portlandf OR 97204 phone: 503-248-1905 fax: 503-248-1908 info@B-E-F.org Novemlber 4,2005 Dick Wanderscheid Invoioe # EPP2005-2 City of Ashland - 90 N. Mountain Avenue Ashland, OR 97520 2005 portion of Environmentally Preferred Power 1.0 a MW Green Power Totalll'1voice Amount Net 30 Days TOTAL DUE $45,990.00 $45,990.00 Please remit payment to the address listed above. If desired, payment may be made by wire transfer to the following account: Tax ID #: Accou nt #: ABA Routing: 93-1248274 6001 0770 123206024 Bank of the Cascades 888 SW 5th Avenue Portland, OR 97204 Thank you! :L t9 "tp r::>-o - # Contract No. 99PB-I0G30 ENVIRONMENTALLY PREFERRED POWER AGREEMEN'I' executed by the BONNEVILLE POWER ADMINISTRATION and THE CITY OF ASHLAND, OREGON Table of Contents Section 1. Te rm....... ..... ............... ........ ..........~ ... ........ ... ................................... ... ........... ... ..1'.. ........... 2 .. Definitions .. ..... ... .................... .......... ,... ............ .... ....... ................... ..... ....... II.. "11.'" .... ....... 3. EPP Production and Integration with Requirements Service .................. 4. EPP Rate and Premium..............................:........................................."............ 5. Mar ke t Endorsement................. ............ ............... ................ .......... ......."...... ...... 6.. Endorsement Resources ..................... ........................... ......................... ..... ........ 7.. Re porting.. ... ...... ..... ..... .... ................... ....... ........ ..... ...... ........ ... ..... ................. ........ .... .... 8. Payment to the Bonneville Environmental Foundation............................. 9. Billing and Payment to BP A............................................................................. I O. Uncontrollable Forces... ........ ............... ..... ........... ................. .......... ........... ........ 11. Governing Law and Dispute Resolution ........................................................ 12. Assignment........... .......................... ..................... ........... ........................ .............. 13 . Entire Agre eme nt....... ...................... .......... ........ ....... .... ......... ............... .............. 14. Notices and Information Exchange ........... ....... ............................................... 15. BP A Appropriations Refinancing Act............................................................. 16. Terrnina tion ..... ..... ...." "......... ..... ..... ... ........... ..... ..... ........ .."...... ......... .......t'. .... ..... ... 17. Signature s ................. ...................... ...................... ........ .................... ......'............. Exhibit A Exhibit B Exhibit C List of Generating Units Payment Exhibit Environmentally Preferred Product Disclosure Statement This ENVIRONMENTALLY PREFERRED POWER 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) a municipal corporation incorporated under the laws of the State of Oregon. BP A and Ashland are sometimes referred to individually as "Party" and collectively as "Parties." 99PB-I0630, Ashland {'-../ Page 2 2 3 3 4 4 5 5 5 6 6 7 7 7 8 8 8 1 RECITALS BP A and Ashland have entered into a requirements Power Sales Contrlllct (PSC), Contract No. DE.MS79-81BP90432. The Parties agree to dedicate a portion of the power Ashland purchases from BP A under the PSC as Environmentally Preferred Power. This portion equals 1O,9E>8 MWH's over the term of the Agreement and averages to be 1 MW per hour over the term of the Agreement. BP A agrees to generate an equivalent amount of Environmentally Preferred Power to serve this portion of Ashland's retail load. BPA further agrees that the portion of environmentally preferred power de.dicated to service to Ashland's retail load will not be dedicated to any other utility. Firm Power supplied under this Agreement is to be produced at hydroelectric and wind energy generation facilities that have been endorsed by the NW Energy Coalition, Natural Resources Defense Council and Renewable Northwest Project (Northwest Public Interest Groups) as environmentally preferred. The specific projects are listed in Exhibit A to this Agreement. . The Parties agree as follows: loB This Agreement shall take effect on the date executed by the Parties. Environmentally Preferred Power dedication shall commence wit ur of July 1, 2000, and shall continue through hour ending 2400 ptember :30, 200J!. All liabilities are preserved until satisfied. 2. DEFINITIONS Capitalized terms not defined below or in context are defined in the PSC, including its Exhibit B (General Contract Provisions), as amended or replaced. (a) "Endorsed Resources" means for this Agreement those facilities listed in Exhibit A that have been endorsed by the Northwest Public Interest Groups as environmentally preferred sources of electricity for electric power products. (b) "Environmentally Preferred Power" or "EPP" means power gem!rated by the Federal Columbia River Power System (FCRPS) that is produced at small hydropower facilities with nameplate ratings under 30 megawatts; wind, geothermal, and solar facilities; and any other facilities that may be endorsed by public interest groups. (c) "System Power" means capacity and energy, exclusive of EPP, delivered from the Federal System. 99PB-I0630, Ashland 2 3. EPP PRODUCTION AND INTEGRATION WITH REQUIREMENTS SERVICE (a) BPA shall produce 1 MW per hour of Environmentally Preferred Power and shall dedicate it for service to Ashland's retail load, unless the Parties are unable to carry out the transaction due to Uncontrollable Forces as defined in section 10. (b) This EPP production shall be deemed to be part of Ashland's requirements power purchases under their PSC. Transmission and ancillary services associated with delivery of requirements power under the PSC shall also be deemed to provide for EEP service. No additional transmission arrangements are required. (c) By written mutual agreement, the Parties may add other EPP resources endorsed by the Northwest Public Interest Groups to Exhibit A. (d) To assure no reduction in 1996 Priority Firm Power (PF-96) Load Regulation and Load Shaping charges, Ashland's utility factor and Load Re:gulation and Load Shaping billing determinants shall be calculated as though this power was a part of the Priority Firm Power purchase. (e) If the Endorsed Resources reports, as identified in Section 7, show that BPA did not produce power in the quantities listed in section 3(a) OVE~r the course of the calendar year, except due to Uncontrollable Force, System Power will be deemed to replace this shortfall in Endorsed Resource energy. BP A will credit Ashland's bill for the Endorsed Resource at the rate of 6.82 millslkWh for each kWh shortfall. Ashland has the option to make appropriate adjustments in future quarterly payments to the Bonneville Environmental Foundation (BEF) to recover the amount paid to the BEF for this same shortfall in Endorsed Resource Energy. Ashland shall continue to pay for System Power at Ashland's applicable Priority Firm Power ratE~. 4. EPP PREMIUM (a) Ashland will pay a premium of 15.80 millslkWh for the EPP. Ashland will continue to pay for power and transmission purchased through the PSC under the PF-96 rate schedule, plus this premium amount. Ashland's payment of the premium will be made to BP A and the BEF in the following manner: (b) Such premium shall be for all services provided to Ashland under this Agreement, including Ashland's right to market the EEP to th.~ir consumers. Forty percent (40%) of this premium shall be paid directly to BPA on a monthly basis. This is equivalent to 6.32 millslkWh and will be shown as a line item on Ashland's monthly wholesale power bill at an implied billing rate of 1 MW per hour. Sixty percent (60%) of this premium shall be paid on 99PB-I0630, Ashland 3 ".- --------- .~~ _._-_..~.,------'----' - . a quarterly basis (every three months) to the BEF. This is equivalent to an implied billing rate of 9.48 millslkWh. (c) The dollar amounts associated with this premium are specified in the Payment Exhibit (Exhibit B) to this Agreement. (d) BPA shall charge Ashland for the portion ofthe premium due BPA under BPA's Firm Power Products and Services (FPS-96) Rate Schedule. This shall be done under Section II.D of the FPS-96 rate schedule, entitled "Reservation and Rights to Change Services". 5. MARKET ENDORSEMENT In accordance with the exclusive endorsement agreement between the Northwest Public Interest Groups and BP A, BP A conveys the right to Ashland to use the following statement in the marketing of the Endorsed Resources to Ashland's retail customers pursuant to section 6. 'The Idaho Falls and Packwood hydroelectric and the Foote Creek Wind generating facilities are environmentally preferred sources of electricity generation for electricity products, based on our independent review of environmental impacts." Ai!, partial consideration for this conveyance, Ashland agrees to satisfy BPA's obligation to make payments to the BEF. Ashland is responsible for mimng payments to the BEF of the premium as described in Section 4 of this Agreement and in the amounts as specified in Exhibit B to this Agreement. 6. ENDORSED RESOURCES (a) The endorsement language set forth in section 5 may be used only in promotion and advertising of retail sales inside Ashland's servic:e territory. (b) Ashland may use the endorsement language set forth in section 5 only as part of marketing, advertising and promotion of resale of EPP ti~om the Endorsed Resources. If EPP from the Endorsed Resources is not offered for sale as a separate product, but is melded with other power for r,etail resale to consumers, the endorsement may be used only if the amount of power from Endorsed Resources is shown and clearly identified as the endo:rsed portion. (c) Any other use of the endorsement language is prohibited without prior written permission from BP A. 99PB-I0630, Ashland 4 7. REPORTING Within 30 days after the end of each Contract Year, and at the end of the contract term, BP A will provide Ashland with the following information for the previous period: (a) Annual amount of EPP generated for Ashland by the Endorsed Resources and delineated by project name or generation identification; (b) Annual amount of EPP generated by projects not included in Exhibit A and delineated by project name or generation identification; and (c) Annual amounts of System Power, if any, delivered to Ashland in lieu of EPP. 8. PAYMENT TO THE BONNEVILLE ENVIRONMENTAL FOUNDATION The quarterly payment amounts are specified in Exhibit B to this Agreement. Such payment shall be made no later than 30 days after the end of each quarter. Payment shall be made by wire transfer to the following account: Account Name: Bonneville Environmental Foundation Tax ID Number: 93.1248274 Bank Name: Bank of the Northwest 600 Pioneer Tower 888 SW. Fifth Avenue Portland, OR 97204 Account Number: 0108002777 ABA Routing: 123006680 9. BILLING AND PAYMENT TO BPA (a) Billing BP A shall bill Ashland monthly pursuant to the billing provisions of the PSC, and consistent with applicable BP A rates, including the General Rate Schedule Provisions. BPA may send Ashland an estimated bill followed by a final bill. BP A shall send all bills on their issue date either electronically or by mail, at Ashland's option. If electronic transmittal of the entire bill is not practical, BPA shall transmit a summary electronically, and send the entire bill by mail. 99PB-10630, Ashland 5 (b) Payment Payment by Ashland shall be made consistent with the payment provisions of the PSC, including the provisions relating to time of payment. Ashland shall pay by electronic funds transfer using BPA's established procedures. (c) Disputed Bills In case of a billing dispute, the provisions of the PSC relating to any disputed bill shall apply, including interest computation applicable to any refund. Ashland shall note the disputed amount and pay its bill in full by the Due Date. 10. UNCONTROLLABLE FORCES BP A and Ashland shall use due diligence in performing their obligations under this Agreement. However, in the event that either Party is prevented from meeting its obligations under this Agreement due to an Uncontrollable Force, both Parties will be excused from their respective obligations without liability to the othE!r for the duration of the Uncontrollable Force and the period reasonably required to restore the affected Party's operations to conditions existing prior to the occurf1ence of the Uncontrollable Force. Uncontrollable Force shall have the meaning given to it in the General Contract Provisions incorporated into the PSC, but shall specifically not include situations or events due to insufficient availability of fuel. Ash]land shall have no obligation to pay for EPP that BPA is unable to deliver or that Ashland is unable to take due to an Uncontrollable Force. 11. GOVERNING LAW AND DISPUTE RESOLUTION (a) This Agreement shall be interpreted and governed by Federal law . With the exception of issues arising under the U.S. Constitution, which are preserved for judicial review, any contract dispute arising under this Agreement shall be resolved through negotiation or mediation, if possible. If negotiation and mediation are unsuccessful, contract disputes shall be subject to binding arbitration. The payment of monies shall be the exclusive remE~dy available in any binding arbitration proceeding. The arbitrator(s) shall iBsue a written opinion explaining the final arbitration award. The arbitration award shall be final and binding on both Parties, provided, however, that either Party may seek judicial review of the final arbitration award for fraud, misconduct, or misrepresentation. (b) Unless the Parties agree otherwise, the arbitration procedures for commercial arbitration of the CPR Institute for Dispute Resolution (Non-Administered Arbitration Rules) shall be used for each dispute. During arbitration the Parties shall continue performance under this Agreement pending resolution of any dispute concerning this Agreement. (c) Each Party shall be responsible for its own costs of arbitration (including legal fees). The arbitrator(s) shall equally divide all other costs of arbitration among the Parties. 99PB-10630, Ashland 6 iO____._ __.,_, ....... --'~""-'--'--- (d) This provision applies solely to this Agreement and does not repla.ce, alter, or amend any provision regarding arbitration under Ashland' other c::ontracts with BP A, including the PSC. 12. ASSIGNMENT This Agreement is binding on any successors and assignments of the Parties. BP A may assign this Agreement to another Federal agency. Neither Party may otherwise transfer or assign this Agreement without the other Party's written consent. Such consent shall not be unreasonably withheld. BP A shall approve any request for assignment in accordance with both public preference and Northwest preference. Ashland may not transfer or assign this Agreement to any of its retail customers. 13. ENTIRE AGREEMENT This Agreement, including all provisions, exhibits, and documents incorporated by reference, constitutes the entire agreement between the Parties. It supersedes all previous communications, representations, or agreements, either writtEm or oral, which purport to describe or embody the subject matter of this Agreement. 14. NOTICES AND INFORMATION EXCHANGE (a) Any notice specifically required to be given under this Agreement shall be in writing and shall be delivered either (1) in person, (2) by nationally recognized delivery service, or (3) by United States Certified Mail. Notices will be effective when received. (b) Information may be exchanged by any means agreed to by the Parties. The Parties shall provide each other with any information reasonably required to bill, schedule, or otherwise administer this Agreement. Such iIllformation may include, but shall not be limited to, meter readings at Ashland' Metering Point. (c) Either Party may change the address for notices by giving notiee of such change in accordance with this section. If to Ashland: If to BPA: The City of Ashland 90 Mountain Ave. Ashland, OR 97520 Attn: Pete Lovrovich Electric Utility Director Phone: 541-488.5308 FAX: 541-488-5320 Bonneville Power Administration 905 N.E. 11th Ave. Portland, OR Attn: John P LebenB Account Executive Phone: 503-230-3965 FAX: 503-230-3544 99PB-I0630, Ashland 7 ----.- _._----~.._,----_._.._._.- -- ... 15. BPA APPROPRIATIONS REFINANCING ACT Section 3201(i) of Public Law 104-134 is incorporated by reference. 16. TERMINATION In the event that the amount of EPP from the Endorsed Resources provided to Ashland is less than 90 percent of the total amount of power (measured in megawatthours) provided to Ashland during any Contract Year pursuant to this Agreement, then Ashland may elect to terminate this Agreement by providing BP A with written notice of termination. To be effective, any such written notice of termination must be delivered to BPA not later than 30 days after receiLpt by Ashland of the information required pursuant to section 7 of this Agreement, and must set a termination date no earlier than 60 days after the date of the written notice of termination. 17. SIGNATURES The signatories represent that they are authorized to enter into this A~~reement on behalf of the Party for whom they sign. (',~ ,j-''': ... By '. l1Jr,uJJ,,,) Signa uyZ Name ,I Pete Lovrovich (Print/Type) By THE CITY OF ASHLAND Name (Print/Type) John P. Lebens Title Electric Utility Director Title Account Executive Date b -;t,;J. - ~J Date )- 1--0 () 99PB-I0630, Ashland 8 . --..... "---- ~-..""-'- .-'- "-~'-' ~'-"'~'-" ,., Exhibit A LIST OF GENERATING UNITS The projects listed below are small hydro and wind projects with outputs that qualify as EPP. Project Packwood Location, State Packwood Lake, W A Average Capacity 9.9 aMW Foote Creek Wind Farm Carbon County, Wyoming 7.1 aMW Idaho Falls Snake River, ID 11.4 aMW . 99PB-10630, Ashland 9 EXHIBIT B PAYMENT EXHIBIT PAYMENTS TO BONNEVILLE ENVIRONMENTAL FOUNDATION AND BPA Months Hours Total Mthly. Amt. Of Amt. Of PrE~mium kWh EPP Premium ofEPP Premium To BEF To BPA Amt. 1 MWIbr. (60% of (40% of Premium) Premium) Paid on Qtrly. Paid on Mthlly. Basis Basis Quarterly Payment to BEF Jul-OO 744 744 000 $11,755 $7,053 $4, 70:~ Aug-OO 744 744 000 $11,755 $7.053 $4, 70:~ Seo-OO 720 720,000 $11,376 $6,826 $4,551~ Quarterly Payment to BEF $20,932 Oct-OO 745 745,000 $11,771 $7,063 $4,70:B Nov-OO 720 720,000 $11,376 $6,826 $4,550 Dee-DO 744 744,000 $11,755 $7,053 $4,70.2 Quarterlv Payment to BEF $20,942 Jan-01 744 744,000 $11,755 $7,053 $4.702 Feb-01 672 672,000 $10,618 $6,371 $4,247 Mar-O 1 744 744,000 $11,755 $7,053 $4,702 IQuarterly Payment to BEF $20,477 Apr-01 719 719,000 $11,360 $6.816 $4,544 May-Ol 744 744,000 $11 755 $7,053 $4,702 Jun-Ol 720 720,000 $11,376 $6.826 $4,550 IQuarterly Payment to BEF $20,695 Jul-01 744 744,000 $11.755 $7,053 $4,702 Aue:-01 744 744,000 $11,755 $7053 $4.702 Sep-Ol 720 720,000 $11,376 $6,826 $4,550 Quarterly Payment to BEF $20,932 Total 10,968,000 $173,293 $103,978 $69 315 99PB-10630,Ashland 10 Exhibit C EmnRONMENTALLYPREFERREDPOWER DISCLOSURE STATEMENT 1. CONSUMER DISCLOSURE STATEMENT FOR EPP BPA is the marketing agent for the FCRPS, which consists of the Federal hydroelectric generating plants located primarily in the Columbia River basin. In addition, BPA has the rights to market power from certain non-Federal generating resources that are owned by utilities and independent power producers. The mix of resources from the Federal system is: BPA Actual Generation Totals In Megawatt Hours for 1st Quarter 1998 Total 1st Quarter Generation = 24,427,085 ,_.___n_ ._._.... _.. .. _ .__ __---\ '.Hydro 87.Sok I I_MISC. Purchases 3.6% \. j_WNP 2 8.7"1. l- Endorsed Hydro .2% I 2. BPA SYSTEM POWER COMPOSITION BPA's system power is accountable for less than 0.5 percent each of the region's emissions of carbon dioxide, sulfur oxide and oxides of nitrogen. BP A ill accountable for 71 percent of the region's stored spent nuclear fuel. BPA has designated certain resources that are a part of the Federal Sy:stem as EPP. EPP products are designed to meet criteria established by others and c~~rtain products may be endorsed by public interest groups. Hydroelectric resources that are designated in the Agreement as EPP are small hydropower project8 with nameplate ratings under 30 megawatts. BP A guarantees that the pool of designated generating facilities are capable of producing energy sufficient to cover the Agreement subject to the specific terms of the Agreement. BP A retains records on actual power generation from the designated resources on a monthly basis. Purchasers of BPA's EPP products understand that it is not possible in an integrated system to guarantee that the energy delivered to a customer is derived from a specific generating plant. 99PB-I0469, Ashland 11 Revision No.1 Exhibit A RATE COMMITMENTS This Revision No.1 includes Environmentally Preferred Power to Ashland's purchase by changing section 4(b), Environmentally Preferred Power. This is effective October 1,2001. 1. DEFINITIONS (a) "5-Year Rates" means the Lowest PF Rates established in the 2002 Wholesale Power Rate Case for Contract Years 2002 through 2006. (b) "Lowest PF Rates" means the lowest applicable cost-based power rates provided under the applicable PF rate schedule as applied to Ashland's Contracted Power purchases under this Agreement. The Lowest PF Rates shall be selected by Ashland from the PF rates that are available and from which the Parties agree Ashland is eligible to purchase under at the time Ashland makes its selection as specified in this exhibit. 2. PURCHASE DURATION Ashland shall purchase all of the power provided in section 4 of the body of this Agreement for the entire term of this Agreement. 3. PRIORITY FIRM POWER RATE TREATMENT (a) Right to Lowest PF Rates Ashland is contractually guaranteed through September 30, 2011l, the Lowest PF Rates established in a successor BPA power rates proeeeding for its PF Contracted Power purchases under this Agreement. This section shall not be construed to waive, alter, or amend any right that Ashland may have under applicable statutes. (b) Revisions to Priority Firm Power Rates BPA agrees that the 5-Year Rates available to Ashland consistent with this exhibit shall not be subject to revision during their respective terms, except for the application of a Cost Recovery Adjustment Clause or a Targeted Adjustment Charge as provided in the PF applicable rates schedules and GRSPs and this Agreement. (c) 5-Year Rates Treatment All Contracted Power purchases provided under section 4 of the body of this Agreement are subject to the 5-Year Rates. The monthly energy rates for Contracted Power are specified in sections II.B1 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: OOPB-12008, Ashland 10f? (1) six months prior to the expiration of the 5-Year Rates; or (2) thirty (30) days after the date BPA's initial proposal for suceessor rates is published. Otherwise the follow-on rate period and associated rates shall be the shortest rate period and associated rates that are applicable to Ashland. (d) Cost-Based Indexed PF Rate and Flexible PF Rate Option None. 4. SPECIAL PF LOAD TREATMENT (a) Annexed Loads Ashland may make a written request for service to Annexed Loads, including a planned date for such service. Annexed Load amounts that were served by PBL under section 5(b) of the Northwest Power Act immediately prior to becoming an Annexed Load will be provided service under rates, terms, and conditions that. within the constraints of BPA's applicable policies, are as comparable as possible to what such Annexed Load would have received if the load had not become an Annexed Load. The Parties shall revise this exhibit within 180 days of the request, to establish the rates, terms and conditions for the requested service and to include monthly HLH and LLH MWs in a table below. The table shall identify whether the amounts in the table are deemed to be actual for billing purposes or whether lthe 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 4.20 dollars for CY 2002 and 2003, and 6.40 dollars per MWh for CY 2004 through 2006. The entire amount of this Green Energy Premium shall 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 benl~fits relative to BP A 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 resourC(JS 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. OOPB-12008, Ashland Revision No. I, Exhibit A, Rate Commitments 20f7 Contract Year 2002 2003 2004 2005 2006 Oct Nov Dec J an Feb Mar Apr May Jun (MWh) JuJ Aug Sept 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 r 719 744 720 744 744 720 (2) Northwest Public Interest Groups Endorsement (A) The resources listed in section 4(b)(1) are endorsed by the Natural Resources Defense Council, Northwest Energy Coalition, and Renewable Northwest Project (North.west 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 6.30 dollars for CY 2002 and 2003, and by 9.59 dollars per MWh for CY 2004 through 2006. 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 I D Number: Bank Name: Bonneville Environmental Foundation 93-1248274 Bank of the Northwest 600 Pioneer Tower 888 SW. Fifth Avenue Portland, OR 97204 0108002777 123006680 Account Number: ABA Routing: OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 3 of? (3) Disclosure, Reporting, and Adjustments (A) For the period October 1, 2001 through September ao, 2003, by no later than 30 days after the end of Contract Year 2003 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 the period October 1, 2001 thorugh September 30, 2003: the a.ctual 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 period October 1, 2001 through September 30, 2003 sales from each resource. (B) For the period October 1, 2001 through September 30,2003, subject to section 4(b)(3)(C), if the Environmentally Preferred Power provided to Ashland during the period October 1, 2001 through September 30, 2003 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 the period October 1, 2001 through September 30, 200B to account for such difference once the power amounts provided by the resources during the period October 1, 2001 through September 30,2003 are known. (C) For the period October 1,2001 through September 30, 2003, Ashland may request that PBL provide Ashland wllth Environmentally Preferred Power contracted for during the period October 1, 2001 through September 30, 2003 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 than E;O days after September 30, 2003, if sufficient Environmentally Preferred Power is available, PBL shall provide to Ashland, Environmentally Preferred Power equal to the amount contracted for during the period October 1, 2001 through September 30, 2003 less the amount provided. If 8ufficient Environmentally Preferred Power is not available, PBL shall adjust Ashland's power bill consistent with section 4(b)(3)(B). (D) Beginning with CY 2004, 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 OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 40f7 monthly power amounts generated by each resource; and the total annual sales from each resource. (E) Beginning with CY 2004, subject to section 4(b)(3)(F'), ifthe 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 shan adjust Ashland's power bill after the end of each Contract Year to account for such diffemnce once the power amounts provided by the resources during the Contract Year are known. (F) Beginning with CY 2004, 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)(D)(ii) is received. By no later than 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)(E). (c) Returned Retail Load Ashland may request service from PBL to serve Returned Retail Load. The Parties shall revise this exhibit to establish monthly HLH and LLH MWs for such service in a table below. The table shall identify whether the amounts in the table are deemed to be actual for billing purposes or whether the table is an estimate with bills based on metered amounts. PBL shall provide service within 180 days of the request at rates BPA has established or establishes as applicable to such loads. The rate treatment for sllch loads shall continue through Contract Year 2006. Rate treatment after Contract Year 2006 shall be determined in a future rate case. (d) Load Previously Served By Ashland Northwest Power Act Sections 5(b)(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 BP A has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract YI~ar 2006. GGPB-120GB, Ashland Revision No.1, Exhibit A, Rate Commitments 5of7 Rate treatment after Contract Year 2006 shall be determined in a future rate case. 5. NEW LARGE SINGLE LOADS (a) Ashland has no existing NLSL. (b) Ashland may request service to a NLSL. The Parties shall revise this exhibit to establish estimated monthly HLH and LLH MWh for such service in a table below. If Ashland chooses to serve the NLSL with a resource the resource shall be added consistent with section 4(f) of Exhibit C, Net Requirements. The total amount subtracted from Total Retail Load in section 4 of the body of this Agreement shall be the metered amount of the load. The same metered amount shall be used by PBL for billing purposes when PBL serves the entire NLSL. 6. REVISIONS (fthis 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. OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 6of7 The Parties shall update this exhibit to reflect necessary changes to establish new rate choices consistent with the applicable future rate cases. This shall be done by mutual agreement except as allowed in section 3 of this exhibit. CITY OF ASHLAND UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By By ~~L~ ccount Executive Name (Print/Type) Date Mr. Greg Scoles q """:6""" I Name (Print/Type) Date Theresa E Rockwood 7-"J./, -t)/ (PBLLAN.W:\PSW\PM\11_16\Ashland\Revision No.1 Exhibit A 12008.DOC) OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 7of7 Revision No.1 Exhibit A RATE COMMITMENTS This Revision No.1 includes Environmentally Preferred Power to Ashland's purchase by changing section 4(b), Environmentally Preferred Power. 1'his is effective October 1,2001. 1. DEFINITIONS (a) (b) "5-Year Rates" means the Lowest PF Rates established in t~~ 2002 Wholesale Power Rate Case for Contract Years 2002 ~~ "Lowest PF Rates" means the lowest applicable cost-based power rates provided under the applicable PF rate schedule as applied to Ashland's Contracted Power purchases under this Agreement. The Lowest PF Rates shall be selected by Ashland from the PF rates that are available and from which the Parties agree Ashland is eligible to purchase under at the time Ashland makes its selection as specified in this exhibit. 2. PURCHASE DURATION Ashland shall purchase all of the power provided in section 4 of the body of this Agreement for the entire term of this Agreement. 3. PRIORITY FIRM POWER RATE TREATMENT (a) "Right to Lowest PF Rates Ashland is contractually guaranteed through September 30,201], the Lowest PF Rates established in a successor BPA power rates proeeeding for its PF Contracted Power purchases under this Agreement. This section shall not be construed to waive, alter, or amend any right that Ashland may have under applicable statutes. (b) Revisions to Priority Firm Power Rates BPA agrees that the 5-Year Rates available to Ashland consistent with this exhibit shall not be subject to revision during their respective terms, except for the application of a Cost Recovery Adjustment Clause or a Targeted Adjustment Charge as provided in the PF applicable rates schedules and GRSPs and this Agreement. (c) 5-Year Rates Treatment All Contracted Power purchases provided under section 4 of the body of this Agreement are subject to the 5.Year Rates. The monthly energy rates for Contracted Power are specified in sections II.B1 and Il.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 BP A, and notify PBL of its selection, by the later of: OOPB-12008, Ashland 1 of 7 (1) six months prior to the expiration of the 5-Year Rates; or (2) thirty (30) days after the date BPA's initial proposal for successor rates is published. Otherwise the follow-on rate period and associated rates shall be the shortest rate period and associated rates that are applicable to Ashland. (d) Cost-Based Indexed PF Rate and Flexible PF Rate Option None. 4. SPECIAL PF LOAD TREATMENT (a) Annexed Loads Ashland may make a written request for service to Annexed Loads, including a planned date for such service. Annexed Load amounts that werl:} served by PBL under section 5(b) of the Northwest Power Act immediately prior to becoming an Annexed Load will be provided service under rates, terms, and conditions that, within the constraints of BPA's applicable policies., are as comparable as possible to what such Annexed Load would have received if the load had not become an Annexed Load. The Parties shall revise this exhibit within 180 days of the request, to establish the rates, terms and conditions for the requested service and to include monthly HLH lmd 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 4.20 dollars for CY 2002 and 2003, and 6.40 dollars per MWh for CY 2004 through 2006. The enti.re amount of this Green Energy Premium shall 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 BP A 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) Paekwood 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 resourCE!S 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. OOPB-12008, Ashland Revision No.1, Exhibit A. Rate Commitments 20f7 Contract Year 2002 2003 2004 2005 2006 Oct Nov Dec J an Feb Mar Apr May Jun (MWh) Jul Aug Sept 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 1720 1744 744 1672 1744 719 744 720 744 744 1720 (2) Northwest Public Interest Groups Endorsement (A) 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 afbElr 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 6.30 dollars for CY 2002 and 2003, and by 9.59 dollars per MWh for CY 2004 through 2006. 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: Bonneville Environmental Foundation 93-1248274 Bank of the Northwest 600 Pioneer Tower 888 SW. Fifth Avenue Portland, OR 97204 0108002777 123006680 Account Number: ABA Routing: OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 30f7 (3) Disclosure, Reporting, and Adjustments (A) For the period October 1, 2001 through September ao, 2003, by no later than 30 days after the end of Contract Year 2003 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 the period October 1, 2001 thorugh September 30,2003: the a,ctual 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 period October 1, 2001 through September 30,2003 sales from each resource. (B) For the period October 1,2001 through September 30, 2003, subject to section 4(b)(3)(C), if the Environmentally Preferred Power provided to Ashland during the period October 1, 2001 through September 30, 2003 is less than the amounts specified in section 4(b)(1), the difference shall be detennined to have been served with Contracted Power under the terms of this Agreement. PBL shall adjust Ashland's power bill after the the period October 1,2001 through September 30,2003 to account for such difference once the power amounts provided by the resources during the period October I, 2001 through September 30, 2003 are known. (C) For the period October 1,2001 through September 30,2003, Ashland may request that PBL provide Ashland with Environmentally Preferred Power contracted for during the period October 1, 2001 through September 30, 200:3 that was not provided. Ashland must notify PBL of such req:uest by no later than two weeks after the notification specified in section 4(b)(3)(A)(ii) is received. By no later than 60 days after September 30, 2003, if sufficient Environmentally Preferred Power is available, PBL shall provide to Ashland, Environmentally Preferred Power equal to the amount contracted for during the period October 1, 2001 through September 30, 2003 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). (D) Beginning with CY 2004, 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 totaJ actual OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 40f7 monthly power amounts generated by each resource; and the total annual sales from each resource. (E) Beginning with CY 2004, subject to section 4(b)(3)(F), 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 shaH adjust Ashland's power bill after the end of each Contract Year to account for such diffemnce once the power amounts provided by the resources durinl~ the Contract Year are known. (F) Beginning with CY 2004, 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)(D)(ii) is received. By no later than 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)(E). (c) Returned Retail Load Ashland may request service from PBL to serve Returned Retail Load. The Parties shall revise this exhibit to establish monthly HLH and LLH MWs for such service in a table below. The table shall identify whether the amounts in the table are deemed to be actual for billing purposes or whether the table is an estimate with bills based on metered amounts. PBL shall provide service within 180 days of the, request at rates BP A has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract Year 2006. Rate treatment after Contract Year 2006 shall be determined in a future rate case. (d) Load Previously Served By Ashland Northwest Power Act Sections 5(b)(1)(A) and/or 5(b)(I)(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)(I)(A) resources and 5(b)(l)(B) generating resources and long-term contract resources that are removed consistent with section 4(d) of Exhibit C, Net Requireml~ntS. 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 BP A has established or establishes as applicable to such loads. The rate treatment for such loads shall continue through Contract Y(!ar 2006. 00PB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 5of7 Rate treatment after Contract Year 2006 shall be determined in a future rate case. 5. NEW LARGE SINGLE LOADS (a) Ashland has no existing NLSL. (b) Ashland may request service to a NLSL. The Parties shall revise this exhibit to establish estimated monthly HLH and LLH MWh for such service in a table below. If Ashland chooses to serve the NLSL with a resource the resource shall be added consistent with section 4(f) of Exhibit C, Net Requirements. The total amount subtracted from Total Retail Load in section 4 of the body of this Agreement shall be the metered amount of the load. The same metered amount shall be used by PBL for billing purposes when PBL serves the entire NLSL. 6. REVISIONS (fthisexhibit 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. OOPB-12008, Ashland Revision No.1, Exhibit A, Rate Commitments 6of7 The Parties shall update this exhibit to reflect necessary changes to establish new rate choices consistent with the applicable future rate cases. This shall be done by mutual agreement except as allowed in section 3 of this exhibit. CITY OF ASHLAND UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By By ~_ L.g"j~ ccount Executive Name (Print/Typ,,) Date Mr. Gref{ Scoles q ....,~....C I Name (Print/Type) Date Theresa E Rockwood 7-d.~ -0/ (PBLLAN.W:\PSw\PM\l C16\Asbland\Revision No.1 Exhibit A 12008.DOC) OOPB-12008, Ashland Revision No. I, Exhibit A, Rate Commitments 7of7 ~~, CITY RECORDER'S COpy CITY Of ASHLAND 20 E MAIN ST. ASHLAND, OR 97520 (541) 488-5300 VENDOR: 006586 BONNEVILLE ENVRIONMENT AL FOUND 133 SW 2ND AVE, SUITE 410 PORTLAND, OR 97204 FOB Point: Terms: Net Req. Del. Date: Speciallnst: 2005 Portion of Environmentally Preferred Power, 1.0 a MW Green Power Invoice EPP2005-2, November 4, 2005 Initial Contract #99PB-1 0630 Environmentally Preferred Power AQreement executed by BPA and City of Ashland Initial term: July 1, 2000 to Sept 30, 2001 Revision No.1, Exhibit A, Rate Commitments - Extended contract with "5-Year Rates" throuQh 2006 BILL TO: Account Payable 20 EAST MAIN ST 541-552-2028 ASHLAND, OR 97520 45 990.00 ~ 1/ ~ # / ,'/S/Oj A orized Signature . DATE 11/15/2005 E. PONUMBER 06447 SHIP TO: Ashland Electric Department (541) 488-5354 90 N MOUNTAIN ASHLAND, OR 97520 Req. No.: Dept.: ELECTRIC Contact: Dick Wanderscheid Confirming? No SlIBTOTAL TAX FREIGHT TOTAL Page 1 / 1 45,990.00 45990.00 0.00 0.00 45,990.00 VENDOR COPY CITY OF ASHLAND REQUISITION FORM THIS REQUEST IS A: D Change Order(existing PO # Date of Request: 11t/t~/o;-"1 Required Date of Delivery/Service: Ill'/dF/or- I 130" IV ell t l- '- E: i3" AI V vito N M,EVT Jt '-- '~3 2> <-J :;.. j/.O Aile.. -~~ (JOJ'Li /;...~AJf)J oFt 'l~ 5'03 -~<i8J-/qOr 503-;tLte - 'fOe FOCUJD4TlOTJ /itD Vendor Name Address City, State, Zip Telephone Number Fax Number Contact Name SOLICITATION PROCESS Small Procurement D Sole Source D Invitation to Bicl D Less than $5,000 D Written findings attached (Copies on file) D Quotes (Not required) Cooperative Procurement D Reauest for Prctposal D State of ORfWA contract (Copies on file) Intermediate Procurement ps:r Other gov~ncy contract 5'~ G~ D Special I Exemllt D (3) Written Quotes f~ . ,;U)C)/- P. b D Written findings attached (Copies attached) D Copy of contract attached D Emeraencv D Contract # D Written findings attached Description of SERVICES ~r (9~ f'~ ~ w BI't4 D Per attached PROPOSAL Item # Quantity Unit Description of MATERIALS Unit Price Total Cost Project Number ______. ___ D Per attached QUOTE Account Number~!~. iL.!.5:. QI}. fR_O_~.L?o 'Items and services must be charged to the appropriate account numbers for the Financials to reflect the actual expenditures accurately. By signing this requisition form, I certify that the information provided above meets the City of Ashland public contracting requirements, and the documentation can be provided upon request. Employee Signature: Supervisor/Depl Head Signature: ~ G: FinancelProcedurelAPIFormsl8_Requisition form revised.doc Updated on: 7/13/2005