HomeMy WebLinkAbout1981-057 Contract - BPA No DE-MS79-81BP90432..ft�:-
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Contract No. DE-MS79-81BP90432
8/25/81
POWER SALES CONTRACT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through the
BONNEVILLE POWER ADMINISTRATION
and
THE CITY OF ASHLAND
Metered Requirements and Computed Requirements
Index to Sections
Section
1. Termination of Prior Contract 4
2. Term of Contract 4
3
4
F�
6.
7.
8.
9.
10
11
12
13
Definitions 4
Exhibits; Interpretation 15
Agreement as to Bonneville's Decision in Acquiring Resources
to Serve Load 15
Interpretation of Fish and Wildlife Responsibilities............ 16
Allocation Provisions in the Event of Planning Insufficiency.... 17
Determination of New Large Single Loads 28
Limitation on Increases of Single Loads 34
Planning and Operating Information 37
Compensation Program for Regional Curtailment of Firm Loads..... 38
Purchaser's Firm Resources 42
Designation of Basis for Purchasing Firm Power 48
Section
14.
15.
16.
17.
Page
Purchaser's Metered Requirements and Amount of Power Sold....... 52
Metered Requirements Paymen.t for Power Sold 54
Determination of Purchaser's Assured Capability 55
Purehaser's Computed Requirements and Amount of Power Sold...... 63
18 Power Scheduling 81
19. Computed Requirements Payment for Power Sold 83
20. Miscellaneous 87
21. Termination of Offer 88
EXHIBIT A(Wholesale Power Rate Scfiedules and General Rate
Schedule Provisions) 15
EXHIBIT B(General Contract Provisions [GCP Form PSC-1]) 15
EXHIBIT C(Customer Service Objectives) 15
EXHIBIT D (Allocation Formulas) 15
EXHIBIT E(Power Scheduling Procedures) 15
EXHIBIT F(Relief from Overrun) 15
EXHIBIT G (Service Charges) 15
EXHIBIT N(Points of Delivery) 15
EXHIBIT I (Firm Resources) 15
EXHIBIT J (Assured Capability) 15
EXHIBIT K(New Large Single Load Determinations) 15
EXHIBIT L (Special Provisions) 15
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This POWER SALES CONTRACT, executed
December 18 19�1 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 the Purchaser is a municipal corporation which is distributing
electric power and energy to ultimate consumers in Ashland, Oregon, and
adjacent areas, and as such, is included in certain statutes which require
Bonneville to give preference and priority to public bodies and cooperatives
in disposing of electric power and energy; and
WNEREAS the Purchaser pursuant to the Pacific Northwest Electric Power
Planning and Conservation Act (P.L. 96-501) is entitled to purchase and
Bonneville is authorized to sell electric power and energy to serve all or a
portion of the Purchaser's firm load requirements; and
WHEREAS Bonneville is obligated to acquire sufficient resources to meet
the electric power requirements placed on Bonneville consistent with
implementing cost effective conservation measures and to protect, mitigate and
enhance fish and wildlife consistent with P.L. 96-501;
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;
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WHEREAS Bonneville is obligated to acquire sufficient resources to m2et
the electric power requirements placed on Bonneville consistent with
implementing cost effective conservation measures and to protect, mitigate and
enhance fish and wildlife consistent with P.L. 96-501;
WHEREAS Bonneville is required under section 4(g)(i) of P.L. 96-501 to
maintain comprehensive programs to insure widespread public involvement in the
formulation of regional power policies; 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:
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1. Termination of Prior Contract. The Prior Contract, if any, is
hereby terminated as of the effective date of this contract. All liabilities
accrued thereunder are hereby preserved until satisfied.
2. Term of Contract. This contract shall be effective on the first day
of the next Billing Month following the date at least five calendar days after
Bonneville acknowledges receipt of an executed contract and shall continue
until 2400 hours on June 30, 2001. Bonneville shall acknowledge receipt of an
executed contract upon receipt of a contract signed by the Purchaser and any
authorizing resolution necessary for the execution of such contract.
3. Definitions
(a) "Actual Computed Requirements" means the basis on a designated
Computed Requirements Purchaser, pursuant to section 17(c), purchases
Firm Power from Bonneville.
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Sec. 1, 2, 3
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(b) "Actual Firm Peak Load" and "Actual Firm Energy Load" mean the actual
maximum integrated one-hour monthly peak and average monthly energy
loads, respectively, of the Purchaser's system in the Pacific Northwest,
for each Billing Month, after adjustment pursuant to section 17(e).
Such actual loads shall not include any load to the extent that the
Purchaser had a unilateral right to interrupt such load during such
month, even if such load was not actually interrupted, but shall include
the amount of any load which the Purchaser actually interrupted for the
purpose of backing up or providinq economic operation of its Firm
Resources. In addition, any New Large Single Load or portion of such
load shall not be included in the Purchaser's firm loads hereunder prior
to the date Bonneville is obligated to supply such load with Firm Power'
pursuant to the terms of section 8(e). Contractual obligations of the
Purchaser to utilities outside its normal service area may, if permitted
by the terms of.section 12(a), be included in the Purchaser's Firm
Resources, but shall not be included in the Purchaser's Actual Firm
Loads hereunder. Actual Firm Peak Load and Actual Firm Energy Load
shall be referred to collectively as "Actual Firm Load."
(c) "Assured Peak Capability" and "Assured Energy Capability" mean the total
of the firm peak and firm energy capabilities, respectively, for all of
the Purchaser's Firm Resources, as determined pursuant to section 16,
which the Purchaser can deliver on a firm basis to its loads. Assured
Peak Capability and Assured Energy Capability shall be referred to
collectively as "Assured Capability."
Sec. 3
1
(d)
"Billing Month," when used with respect to a Purchaser designated to
purchase on the basis of Metered Requirements, means the interval
between meter-reading dates which normally will be approximately
30 days. If service is for less or more than the normal billing month,
the monthly charges stated in the applicable rate schedule shall be
appropriately adjusted. Winter and summer periods identified in the
rate schedules shall begin and end for a Purchaser with the beginning
and ending of the Billing Month having meter-reading dates closest to
the periods so'identified.
When used with respect to a Purchaser designated to purchase on the
basis of Computed Requirements, means a calendar month.
(e) "Computed Average Energy Requirement" means the amount by which the
Purchaser's Actual Firm Energy Load for.a month exceeds its Assured
Energy Capability for such month, after adjustment pursuant to
section 17(d). The term "average energy computed demand" as used in the
Wholesale Power Rate Schedules and General Rate Schedule Provisions
Exhibit has the same meaning.
(f)
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"Computed Energy Maximum" means an amount of electric energy equal to
the product of the Purchaser's Computed Average Energy Requirement for a
month and the number of hours in such month.
"Computed Maximum Requirements" means the hourly amounts of power
Bonneville is obligated to deliver to the Purchaser during the Heavy
Load Hours of a month, as defined in section 17(g)(1).
Sec. 3
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(h) "Computed Peak Requirement" means the amount by which the Purchaser's
Actual Firm Peak Load for a month exceeds its Assured Peak Capability
for such month. The term "peak computed demand" as used in the
Wholesale Power Rate Schedules and General Rate Schedul
Exhibit has the same meaning.
(i) "Computed Requirements" means the basis on which the Purchaser, if so
designated as specified in section 13, purchases from Bonneville its
requirements for Firm Power which exceed its Assured Capability. The
term "computed demand" as used in the Wholesale Power Rate Schedules and
General Rate Schedule Provisions Exhibit has the same meaning. All
references to "Computed Requirements" shall be deemed to include Actual
Computed Requirements, Planned Computed Requirements, and Contracted
Requirements.
(j) "Consumer" means an end user of electric power or energy.
(k) "Contracted Requirements" means the basis on which a designated Computed
Requirements Purchaser, pursuant to section 17(b), purchases Firm Power
from Bonneville.
(1) "Coordination Agreement" means the Agreement for Coordinated Operations
among Power Systems of the Pacific Northwest (BPA Contract
No. 14-03-48221), as amended or replaced.
(m) "Critical Period" when used with respect to Firm Resources which are
included in Coordination Agreement planning, means the same herein as
Sec. 3
that term is defined in the Coordination Agreement; when used with
respect to Firm Resources which are not included in Coordination
Agreement planning means the one or more months in any one Operating
Year in the historical streamflow period.of record normally used for
hydroelectric resource planning in the Pacific Northwest, during which
a
the Purchaser's system of such Firm Resources, together with all of the
Purchaser's Seasonal Storage which is not included in the Coordination
Agreement planning, is able to produce the least energy in a monthly
distribution, represented by the difference between the Purchaser's
Estimated Firm Energy Load and that Estimated Firm Energy Load, i` any,
submitted under Coordination Agreement planning; provided, however,
that for the Firm Resources of the Montana Power Company whic are
hydroel'ectric resources located on the Missouri River or its
tributaries, the Critical Period so determined shall not be limited to
the months in any one Operating Year.
(n) "Customer" means any entity which contracts for the purchase of electric
power or energy from Bonneville.
(o) "Estimated Firm Peak Load" and "Estimated Firm Energy Load" mean the
best estimate of the maximum integrated one-hour monthly peak a.nd
average monthly energy loads of the Purchaser's system in the Pacific
Northwest which are equally likely to be less than or greater than the
Purchaser's actual peak and energy loads in each month under normal
weather conditions, except that the Purchaser may increase the largest
of such monthly peak loads during the Operating Year to represent the
peak load which is equally likely to be less than or greater than the
Sec. 3
Purchaser's actual peak load during the Operating Year. Such system
loads shall be reduced by any and all loads to the extent that the
Purchaser has unilateral rights to interrupt deliveries to such load
during each month of such Operating Year, excepting loads which the
Purchaser has a right to interrupt for the purpose of baeking up or
providing economic operation of its Firm Resources. In addition, any
New Large Single Load on portion of such load shall not be included in
the Purchaser's firm loads hereunder prior to the date Bonneville is
obligated to supply such load with Firm Power pursuant to the terms of
section 8(e). Contractual obligations of the Purchaser to utilities
outside its normal service area may, if permitted by the terms of
section 12(a), be included in the Purchaser's firm Resources, but shall
not be included in the Purchaser's firm loads hereunder. Estimated Firm
Peak Load and Estimated Firm Energy Load shall be referred to
collectively as "Estimated Firm Load."
(p) "Firm Capacity" means capacity which Bonneville assures will be
available to the Purchaser in the amounts and during the period or
periods specified in the contract except when operation of the
generation or transmission facilities used by Bonneville to serve such
Purchaser is suspended, interrupted, interfered with, curtailed or
restricted as a result of the occurrence of any condition described in
the Uncontrollable Forces or Continuity of Service sections of the
General Contract Provisions Exhibit.
(q) "Firm Energy" means electric energy which Bonneville assures will be
available to the Purchaser during the period or periods specified in the
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Sec. 3
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contract except when the operation of the generation or transmission
facilities used by Bonneville to serve the Purchaser is suspended,
interrupted, interfered with, turtailed, or restricted as a result of
the occurrence of any condition described in the Uncontrollable Forces
or Continuity of Service sections of the General Contract Provisions
Exhibit.
(r) "Firm Peak Load Carrying Capability," "Firm Energy Load Carrying
Capability" and "Firm Load Carrying Capability" mean the same herein as
those terms are defined in the Coordination Agreement.
(s) "Firm Power" means electric power which Bonneville will make
continuously available to the Purchaser on a Meter.ed or Computed
Requirements basis to meet its Actual Firm Loads rxcept when restricted
because the operation of generation or transmission facilities used by
Bonneville to serve the Purchaser is suspended, interrupted, interfered
with, curtailed or restricted as the result or the occurrence'of any
condition described in the Uncontrollable Forces or Continuity of
Service sections of the General Contract Provisions Exhibit. Unless
related to specific facilities serving the Purchaser, restrictions of
Firm Power shall not be made until Bonneville has exercised its rights
to restrict industrial firm power, modified firm power, and all other
power subject to restriction in favor of the Purchaser. Firm Power
shall be a collective reference to Firm Capacity and Firm Energy.
(t) "Firm Resource" means that portion of each of the generating resources
or contractual resources of the Purchaser dedicated to the Purchaser's
10 Sec. 3
Actual Firm Load as set forth in the Purchaser's Firm Resources
Exhibit. The term Firm Resource includes the Purchaser's firm
contractual obligations to utilities outside its normal service area, if
any, as set forth in the Purchaser's Firm Resources Exhibit.
(u) "Flexibility Account" means the account kept by the Purchaser which
shows as of the end of each month of the Operating Year the accumulated
balance of adjustments made by the Purchaser to its Assured Energy
Capability. Such account shall be established and maintained pursuant
to section 17(d).
(v) "Heavy Load Hours" means those hours between 7 a.m. and 10 p.m., Monday
through Saturday, or such other hours as may be specified in the
Wholesale Power Rate Schedules and General Rate Schedule Provisions
Exhibit or its successor
(w) "Integrated Demand" means the number of kilowatts equal to the number of
kilowatthours recorded by a meter during a clock-hour.
(x) "Intra-Class Excess Entitlement" means the portion, if any, of the
Purchaser's entitlement to Firm Capacity or Firm Energy from the
Purchaser's entitlement of Federal base system resources, if any, and
resources acquired by Bonneville from or on behalf of the Purchaser
under P.L. 96-501 as determined in the Allocation Formulas Exhibit which
is in excess of the amount of Firm Capacity or Firm Energy necessary to
serve Bonneville's obligation to the Purchaser on a Metered or Computed
Requirements basis for any Operating Year in a period of insufficiency.
11 Sec. 3
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(y) "Light Load Hours" means those hours of the month which are not Heavy
Load Hours.
(z) "Measured Amounts", when used with respect to a Purchaser designated to
purchase on the basis of Computed Requirements but which does not
schedule amounts of power to be interchanged with Bonneville, means the
amounts assigned to Firm Power purchased pursuant to this agreement in
the tabulation of hourly interchange prepared by the Purchaser pursuant
to section 17(h).
When used with respect to a Purchaser designated to purchase on the
basis of Computed Requirements and which schedules amounts of power to
be interchanged with Bonneville, means the hourly amounts of Firm Power
requested by the Purchaser in accordance with section 17(g) and
scheduled to the Purchase.r in accordance with the provisions of
section 18 of this agreement.
(aa) "Measured Demand," when used with respect to a Purchaser designated to
purchase on the basis of Metered Requirements, means the largest of the
Integrated Demands for each Point of Delivery, adjusted as appropriate
to such Point of Delivery, for Heavy Load Hours during a Billing Month.
When used with respect to a Purchaser designated to purchase on the
basis of Computed Requirements, means the largest of the Measured
Amounts for Heavy Load Hours during a month; provided, however, that
if Bonneville has, pursuant to section 17(g)(1), limited its obligation
to make power available to the Purchaser during such month below the
12 Sec. 3
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largest of the Measured Amounts for Heavy Load Hours in such month, the
Measured Demand shall be the lowest level to which the Purchaser was so
limited during such month.
(bb) "Measured Energy," when used with respect to a Purchaser designated to
purchase on the basis of Metered Requirements, means the number of
kilowatthours delivered to any Point of Delivery during a Billing
Month. Such number of kilowatthours shall be the reading which is
recorded during a Billing Month by a meter specifically installed to
measure such kilowatthours and which is adjusted as appropriate to such
Point of Delivery.
When used with respect to a Purchaser designated to purchase on the
basis of Computed Requirements, means the sum of the Measured Amounts
for all hours in a Billing Month, after adjustment, if any, for energy
delivered to the Purchaser on the last day of the Billing Month and
returned to Bonneville in the next Billing Month pursuant to
section 2(a)(4) of the Power Scheduling Procedures Exhibit.
(cc) "Metered Requirements" means the basis on which the Purchaser, if so
designated as specified in section 13, purchases from Bonneville its
requirements for Firm Power.
(dd) "New Large Single Load" means any load associated with a new facility,
an existing facility, or an expansion of an existing facility:
13 Sec. 3
(1) which is not contracted for, or commited to, as determined by
Bonneville, by a public body, cooperative, investor-owned utility, or
Federal agency Customer prior to September 1, 1979, and
(2) which will result in an increase in power requirements of such
Customer of ten average megawatts or.more in any consecutive
twelve-month period.
(ee) "Operating Year" means the period commencing each year on July 1 and
ending the following June 30.
(ff) "Pacific Northwest" means the same herein as such term is defined in
P.L. 96-501.
(gg) "Planned Computed Requirements" means the basis on which a designated
Computed Requirements Purchaser, pursuant to the provisions of
section 17(a), purchases Firm Power from Bonneville.
(hh) "Point of Delivery" means a point of delivery listed in the Points of
Delivery Exhibi.t.
(ii) "Seasonal Storage" means the ability to store water in reservoirs and to
thereby increase or decrease the planned or actual energy generation at
hydroelectric facilities in one month and to compensate for such change
in another month, either using the Purchaser's own facilities or the
facilities of others which the Purchaser has firm rights to use pursuant
to contracts.
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(jj) "Year Preceding Insufficiency" means the Operating Year immediately
preceding the initial Operating Year in a continuous period of one or
more years for which Bonneville has issued a notice or notices of
restriction in which Bonneville actually determines a final allocation
of Firm Capacity or Firm Energy for any Purchaser in the public body and
cooperative class or Federal agency class.
4. Exhibits; Interpretation. The rights and obligations of the parties
hereunder shall be subject to and governed by this contract, including
Exhibits A through L attached hereto and by this reference made a part of this
contract in accordance with the specific provisions of this contract relating
to each exhibit. This contract sets forth the entire agreement of the parties
as of the effective date of the contract. The headings used in this contract
are for convenient reference only, and shall not affect the interpretation of
this contract.
5. Agreement as to Bonneville's Decision in Acquiring Resources to Serve
Load.
(a) Bonneville agrees to serve the firm load obligations of the Purchaser
placed upon Bonneville pursuant to this contract. Bonneville shall meet the
load utilizing resources available to Bonneville or acquired by Bonneville in
accordance with P.L. 75-329, P.L. 93-454, P.L. 96-501, and other applicable
law. Bonneville's acquisition of resources under P.L. 96-501, to the extent
appropriate, shall be consistent with the plan adopted by the Pacific
Northwest Electric Power and Conservation Planning Council.
(b) Except as expressly provided in this contract and in applicable
provisions of law, Bonneville's obligations under.this contract are not
contingent upon action taken or to be taken by the Purchaser.
15
Sec. 4, 5
To the extent that the Purchaser obligates Bonneville to serve all or a
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portion of its load growth pursuant to this contract in lieu of using Firm
Resources to meet such load growth, the Purchaser and Bonneville recognize
that resources must be made available by or on behalf of the Purchaser to
Bonneville if 8onneville is to have the ability to meet its obligations
hereunder. The�Purchaser therefore agrees that it will use its best efforts
either to serve its load growth using Firm Resources, or to make available for
acquisition by Bonneville, in accordance with the conservation and resource
priorities and other requirements of P.L. 96-501, resources equivalent to the
load growth of the Purchaser which is served hereunder. Such resources will
be made available to Bonneville pursuant to mutually agreeable contracts
providing appropriate compensation to tfie Purchaser and other necessary
terms. In maki'ng such resources available, the Purchaser may act individually
or in cooperation with others.
The parties acknowledge that cost-effective conservation measures will be
implemented in accordance with P.L. 96-501 and that Bonneville is required to
give priority to the development and acquisition of certain types of resources
under P.L. 96-501. The Purchaser agrees to make a good faith effort to
cooperate with Bonneville in implementing and initiating the resource
responsibilities placed on Bonneville, and providing services necessary
thereto, pursuant to P.L. 96-501.
6. Interpretation of Fish and Wildlife Responsibilities.
In meeting its obligations under this contract, Bonneville affirms its
obligations under Section 4 and 6 of P.L. 96-501 and other applicable law with
respect to implementation of ineasures and objectives for the protection,
mitigation, and enhancement of fish and wildlife, while assuring the Pacific
16
Sec. 6
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Northwest an adequate, efficient, economical, and reliable power supply. This
contract shall not impair compliance with such obligations.
The Purchaser affirms its legal obligations related to fish and wildlife
established in any license or order issued by the Federal Energy Regulatory
Commission. This contract shall not expand,. impair, or in any way alter the
Purchaser's legal obligations related to fish and wildlife established in a
license or order issued by the Federal Energy Regulatory Commission.
7. Allocation Provisions in the Event of Planning Insufficiency.
(a) Notice of Restriction. For purposes of issuing notices of
restriction under this contract Bonneville's Customers shall be divided into
three classes: (1) public body and cooperative; (2) Federal agency; and
(3) investor-owned utility. If Bonneville determines for any Operating Year
that it cannot on a planning basis acquire sufficient resources to fully
supply Bonneville's estimated obligation to the Purchaser or any member of the
Purchaser's class of Customers and Bonneville's estimated commitments to other
Customers whose supply.from Bonneville is not subject to restriction in favor
of the Purchaser, Bonneville may issue a written notice of restriction to the
Purchaser and its class of Customers for such Operating Year. Such notice
shall be dated no earlier than provided for in paragraph (2) below and must be
consistent with the provisions of paragraphs (3), (4), and (5) below. The
notice of restriction may limit Bonneville's obligation in such Operating Year
to supply Firm Power to the Purchaser pursuant to section 14 or section 17
below, as applicable.
The notice of restriction shall specify Bonneville's best estimate of the
Purchaser's entitlement to Firm Capacity and Firm Energy for such Operating
Year, Bonneville's estimate of the Purchaser's allocation, including the loads
and resources on which such estimate is based and Bonneville's estimate of the
1 Sec. 7
expected duration of any period of insufficiency. Any notice of restriction
issued hereunder shal.l be subject to the following limitations:
(1) Notice periods shall not commence until the start of next
Operating Year following the date a notice is issued.
(2) Borineville shall not issue a notice of restriction to any class
of Customers prior to December 5, 1985, to allow Bonneville a reasonable
period of experience under P.L. 96-501.
(3) Any notice of restriction which limits Bonneville's obligation
to supply Firm Energy to the Purchaser if it is a member of the public
body and cooperative class or Federal agency class shall not be effective
prior to the expiration of the eighth Operating Year following the
commencement date applicable to such notice.
(4) Any notice of restriction which limits Bonneville's obligation
to supply Firm Power if the Purchaser is a member of the investor-owned
utility class or Firm Capacity if the Purchaser is a member of the public
body and cooperative class or the Federal agency class shall not be
effective prior to the expiration of the fifth Operating Year following
the commencement date applicable to such notice.
(5) Any notice of restriction issued to the public body and
cooperative class or Federal agency class shall not be effective prior to
the Operating Year for which Bonneville estimates that its combined
obligations to both classes to supply Firm Capacity or Firm Energy equal
or exceed the firm peak capability or firm energy capability,
respectively, of the Federal base system resources.
(6) A notice of restriction issued to any Purchaser under this
section shall not be effective for any Operating Year to the extent
Bonneville has not exercised its rights in a timely manner to restrict
18 Sec. 7
Bonneville's obligations to other Customers whose supply from Bonneville
is subject to restriction in favor of the Purchaser.
Bonneville shall use its best efforts to annually advise the Purchaser of
Bonneville's estimate of the Purchaser's allocation of Firm Capacity and Firm
Energy for any Operating Year for which a notice of restriction was issued.
Such advisement shall include current estimates of the Purchaser's allocation
of Firm Capacity and Firm Energy for all Operating Years for which a notice of
restriction has bee� issued.
Notwithstanding the issuance of a notice of restriction to the Purchaser,
Bonneville shall use its best efforts to acquire sufficient resources.to
supply in full its obligations to the Purchaser pursuant to section 14 or
section 17 below, as applicable, and its similar obligations to the
Purchaser's class of Customers. Bonneville may cancel a notice of restriction
by giving written notice to the Purchaser and thereby reduce or eliminate the
limits on Bonneville's obligation to supply Firm Capacity or Firm Energy to
the Purchaser and its class of Customers at any time. Such cancellation shall
be made whenever Bonneville determines it wi11 have sufficient resources to
supply in full its obligations to the Purchaser pursuant to section 14 or
section 17 below, as applicable, and its similar obligations to such class of
Customers. Any such cancellation shall be made only after Bonneville consults
with the Purchaser and Bonneville's other Customers.
(b) Determination of Purchaser's Allocation.
The Purchaser's contractual entitlement to and allocation of firm Capacity
or Firm Energy shall be based on the formulas in the Allocation Formulas
Exhibit. Such formulas shall be used for determining both estimated
allocations and final allocations of firm Capacity and Firm Energy based on
the Purchaser's entitlement to firm peak capability and firm energy capability
19 Sec. 7
determined under the formulas. In addition to the loads and resources which
Bonneville would normally consider in establishing Bonneville's obligations to
the Purchaser pursuant to section 14 or section 17, as applicable, Bonneville
shall deduct the planning capability of the Purchaser's Firm Resources for
Customers purchasing on a Metered Requirements basis in determining its
obligation to th�e Purchaser pursuant to this section. The planning capability
of the Purchaser's Firm Resources for Customers purchasing on Metered
Requirements for the purpose of determining Bonneville's obligation to such
Purchaser shall either be established by (1) a services agreement with
Bonneville or another entity; (2) contracts for the delivery of amounts of
power by Bonneville or other entities; or (3) a planning capability supplied
by the Purchaser for each of its Firm Resources along with the data used to
determine such planning capability. Planning capabilities supplied by the
Purchaser shall be reasonable and in conformance with usual practices used by
the Purchaser, Bonneville, and other Pacific Northwest utilities for resource
planning.
Bonneville shall revise every notice of restriction which has not been
cancelled by the January 1 prior to the Operating Y^ar it becomes effective.
Such revision shall specify either (1) that 8onneville shall be obligated to
serve the Purchaser on a Metered Requirements basis pursuant to section 14
except that the output of the Purchaser's Firm Resources must be at least the
planning capability of such resources determined in the paragraph above or to
serve the Purchaser on a Computed Requirements basis pursuant to section 17
during the next Operating Year, as applicable; or (2) Bonneville's estimate of
the Purchaser's allocation of Firm Capacity and Firm Energy available to serve
the Purchaser's Actual Firm Loads for such Operating Year
Sec. 7
Such estimated
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allocation shall be determined using the best available estimates of loads and
resource capabilities at that time.
Such estimated allocation shall establish Bonneville's obligations to the
Purchaser and be used to determine the billing factors for demand and energy
established by the Purchaser's allocation for each month of the Operating Year
until a final allocation is issued. The billing factor for allocated demand
for each month shall be based on monthly allocations of Firm Capacity based on
amounts of firm peak capability determined from the formulas in the
Allocations Formula Exhibit. The billing factor for allocated energy for each
month shall be established from the yearly allocation of Firm Energy based on
the amount of firm energy capability determined from the formulas in the
Allocation Formulas Exhibit. If the Purchaser has sufficient Seasonal Storage
to allocate its Assured Energy Capability among months of the Operating Year
in the manner set forth in section 16(c)(2), the Purchaser shall substitute
its yearly allocation of Firm Energy for its annual energy requirement on
Bonneville to distribute its yearly allocation of Firm Energy among months of
the Operating Year. Bonneville shall distribute the yearly allocation of firm
Energy among months for all other Purchasers'using the same assumption as that
used by Bonneville to constrain its loads to its resources in subsection (d)
below to determine the firm capability of the Federal base system resources.
Bonneville shall determine the Purchaser's final allocation of Firm
Capacity and Firm Energy as soon as practicable after August 15 of each
Operating Year. Such allocation shall be based on the best available
estimates of loads and resource capabilities and include any allocations to
the Purchaser of Firm Capacity and Firm Energy under subsection (g) below.
Such final allocation shall specify the Purchaser's allocations and billing
factors for the remainder of the Operatin9 Year with the billing factors
21 Sec. 7
determined in the same manner as specified above under the estimated
allocation.
Notwithstanding any allocations of Firm Capacity or Firm Energy
established in this section by a notice of restriction, Bonneville shall use
its best efforts to acquire sufficient resources to supply in full its
obligations to the Purchaser pursuant to section 14 or section 17, as
applicable, and its similar obligations to the Purchaser's class of
Customers. Bonneville may suspend the limitations imposed by a notice.of
restriction during periods within the Operating Year such notice is
effective. Any such suspension shall be made only after Bonneville consults
with the Purchaser and Bonneville's other Customers.
(c) Federal Base System Resources. The firm capability of the Federal
base system resources shall be calculated from:
(1) the firm capability of the Federal Columbia River Power System
hydroelectric projects, existing or hereafter constructed;
(2) the firm capability of resources listed below acquired by
Bonneville under'long-term contracts in force on the effective date of
P.L. 96-501:
Installed Capability
MW
(A)
�B)
(C)
(D)
(E)
(F)
(G)
Hanford
WNP No. 1
WNP No. 2
70% of WNP No. 3
30% of Trojan
Peak/Energy Exchange
(PNW and PSW)
Wind turbines
860
1250
1100
1240
1130
N/A
7.5; and
(3) the firm capability o# resources acquired by Bonneville to
replace reductions in the capability of the hydroelectric projects in the
22 Sec. 7
event of loss of generation facilities at one or more hydroelectric
projects, reductions in the capability of the hydroelectric projects due
to constraints on the use of streamflows at such projects for the
production of electric power and energy for such constraints which were
not planned prior to December 5, 1980, or reductions in the firm
capability of the contractual resources in (2) above.
(d) Determination of the Firm Ca ability of 'the Federal Base System
Resources The firm capability for tuture Operating Year of the Federal
base system resources shall be determined by using streamflows to generate
electric power and energy within the constraints on use of the rivers due to
irrigation withdrawals, navigation, recreation needs, minimum streamflows,
fisheries and wildlife operations and other authorized uses. Such capability
shall be determined.by using such resources' contribution to Bonneville's Firm
Load Carrying Capability. Such contribution shall be determined in the same
manner as specified in section 16(b)(1) for determining the contribution to
Assured Capability of the Firm Resource of a Customer which is included by
such Customer in Coordination Agreement planning. Such contribution may be
further adjusted to provide other appropriate adjustments for reserves which
are in accordance with Coordination Agreement procedures to recognize regional
planning uncertainties.
For purposes of this section 7, Bonneville shall determine the firm peak
capability of the Federal base system resources by shaping.all of Bonneville's
firm resources to meet Bonneville's monthly obligations to supply all of the
firm energy loads of its Customers. Such firm peak capability shall be such
resources' proportional contribution to the monthly firm peak capability
determined by shaping Bonneville's resources to meet its energy obligations.
23 Sec. 7
If Bonneville has issued a notice of restriction to meet the energy loads
of Customers, Bonneville shall, in determining the firm peak capability of the
Federal base system resources for purposes of this section 7, develop the firm
capability of its resources by constraining its loads to its resources based
on the assumption that Bonneville's Customers to whom such notice applies will
provide.firm en2rgy as.a single class in equal amounts for each month in the
Operating Year to meet the difference between Bonneville's Firm Energy
obligation prior to restriction and Bonneville's limited Firm Energy
obligations after restriction
consultation with its Customers.
Bonneville may change such assumption after
The loads used to determine the contribution of resources to Bonneville's
Firm Load Carrying Capability shall include the pumping loads of the U.S.
Bureau of Reclamation which are authorized by law as obligations of the
hydroelectric projects in (c above.and the losses of electric energy
resulting from delivery of electric power and energy to Bonneville's Customers
in the Pacific Northwest. The firm capability of the Federal base system
resources shall be reduced to meet such loads and the proportional share of
such losses.
(e) Determination of Firm Capability of Acquired Resources. The firm
capability of a resource acquired by Bonneville under P.L. 96-501 from or on
behalf of the Purchaser shall be such resource's contribution to Bonneville's
Firm Load Carrying Capability using the estimated peak and energy capability
of such resource specified in the resource purchase agreement. The
contribution of a resource to firm peak capability and firm energy capabili.ty
shall be determined using the same loads and in the same manner as the Federal
base system resources. The firm capability of such resources shall not
include amounts of peak and energy capability specified in the resource
24
Sec. 7
purchase agreement as a replacement for Federal base system resources or an
amount purchased in lieu of an amo�nt of electric power offered to Bonneville
by another utility at such utility's average system cost.
Bonneville may rerate the peak and energy capability of a resource based
on the actual performance of such resource by g�ving seven years' prior
written notice of such adjustment. Such rerating shall be consistent with any
terms of the resource purchase agreement and reflect actual operating
experience.
(f) Princi les for Allocatin Intra-Class Excess Entitlements.
Bonneville shall allocate amounts of Intra-Class Excess Entitlements under the
formulas in the Allocation Formulas Exhibit for each Operating Year in a
period of insufficiency based on the following principles:
(1). If the sum of the Intra-Class Excess Ent.itlements for a class of
Customers is greater than Bonneville's estimate for such Operating Year of
the amounts needed to supply the Firm Capacity or Firm Energy requirements
of the Customers of such class after providing such Cus�omers their
entitlement to the Federal base system resources, if any, and their
entitlement to any resources acquired by Bonneville under P.L. 96-501 from
or on behalf of such Customers, Bonneville shall supply Firm Capacity or
Firm Energy to all Customers of such class pursuant to subsection (b)(1)
above.
(2) If the sum of the Intra-Class Excess Entitlements for the public
body and cooperative class or Federal agency class of Customers is less
than Bonneville's respective estimate for such Operating Year of the
amounts needed to supply the Firm Capacity or Firm Energy requirements of
the Customers of such class after providing such Customers their
entitlement to the Federal base system resources and their entitlement to
25 Sec. 7
any resources acquired by Bonneville under P.L. 96-501 from or on behalf
of such Customers, Eonneville shall use the Intra-Class Excess
Entitlements for the public body and cooperative class or the Federal
agency class to first meet its obligation to supply to each Customer of
each class, respectively, an amount of Firm Capacity and Firm Energy equal
to the amounts actually supplied by Bonneville in the Year Preceding
Insufficiency.
(3) Bonneville shall allocate the sum of the Intra-Class Excess
Entitlements for the investor-owned utility class of Customers and any
amounts for the public body and cooperative class or Federal agency class
remaining after Bonneville meets its respective obligations for such
classes specified in paragraph (2) above in a pro rata manner based on
formula F of the Allocation Formulas Exhibit.
Intra-Class Excess Entitlements shall be allocated on the basis of an
allocation factor which establishes each Customer's entitlement on a pro
rata basis to the sum for such Customer's class of the Intra-Class Excess
Entitlements. Such allocation factor shall be established by starting
with a factor determined by comparing the resources actually developed by
1
each Customer to that amount of firm Capacity or Firm Energy which each
Customer needed to develop in order to meet its load growth and
load-resource deficits, if any, existing in the year prior to enactment of
P.L. 96-501, squaring the resulting factor for each Customer to increase
the allocation of those Customers which have been the most successful in
developing resources and adjusting the resulting factor so that the sum of
such factors for all Customers in a class equals one. The resulting
factor shall establish each Customer's allocation factor in such class.
26 Sec. 7
Subject to the reduction specified in paragraph (4) below, the
Intra-Class Excess Entitlements shall be allocated to fully meet the
deficiencies of the Customers in a class or until the Intra-Class Excess
Entitlements for such class are exhausted. If.the Intra-Class Excess
Entitlements are not exhausted in meetin9 the deficiencies of the
Customers in a class as reduced by paragraph (4) below, such remaining
amount of Intra-Class Excess Entitlements, which are the amounts
remaining, if any, due to paragr r n (4) below, shall be allocated by
multiplying such remaining amount by each Customer's allocation factor
until the Intra-Class Excess Entitlements for such class are exhausted.
(4) Bonneville shall reduce its obligation to the Purchaser under
paragraph (3) above by Bonneville's estimate of the Firm Capacity or Firm
Energy necessary to serve the amount which the Purchaser's Actual Firm
Peak Loads or Actual Firm Energy Loads would have been reduced by
cost-effective Bonneville conservation programs which the Purchaser
declined to implement. Such reduction shall not be made to the ext'ent
Bonneville determines the Purchaser has implemented similar measures which
accomplished the same purpose and were sufficiently comparable to the
Bonneville programs to permit evaluation of their degree of
effectiveness. Cost-effective shall be as defined in P.L. 96-501.
(g) Allocation of Additional Government Resources. Bonneville may
allocate an additional amount of Firm Capacity or Firm Energy to the Purchaser
from the Intra-Class Excess Entitlements of another class which are excess to
the needs of such other class or from other resources available to
Bonneville. Bonneville shall determine the methods for making such
allocations after consultation with its Customers.
2 Sec. 7
8. Determination of New Large Single Loads.
(a) Determination of a Facility. Bonneville and the Purchaser shall
make a reasonable determination of what constitutes a single facility, for the
purpose of identifying a New Large Single Load, based upon the followi�g
criteria: (1) whether the load is operated by a single Consumer; (2) whether
the load is in a single location; (3) whether the load serves a manufacturing
process which produces a single product or type of product; (4) whether
separable portions of the load are interdependent; (5) whether the load is
contracted for, served or billed as a single load under the individual
Purchaser's customary billing and service policy; (6) consistent application
of the foregoing criteria in similar fact situations; and (7).any other
factors the parties determine to be relevant.
Bonneville shall show an increase in load associated with a
Consumer's facility which has been determined to be a New Large Single Load on
Table 1 of the New Large Single Load Determinations Exhibit. Bonneville shall
show loads associated with a Consumer's facility which Bonneville has
determined were contracted for, or committed to prior to September 1, 1979, on
Table 2 of the New Large Single Load Determinations Exhibit. Bonneville shall
have the unilateral right to amend Table 1 or make additions to Table 2 of
such exhibit to reflect such determinations when made.
(b) Determination of Ten Averaae Meqawatt Increase. An increase in load
shall be considered a New Large Single Load if the energy consumption of the
Consumer's load associated with a new facility, existing facility or expansion
of an existing facility during the immediately past twelve-month period
exceeds by ten average megawatts or more the Consumer's energy consumption for
such new facility, existing facility or expansion of an existing facility for
the consecutive twelve-month period one year earlier, or the amount of the
Zg Sec. 8
contracted for, or committed to load of the Consumer as of September 1, 1979,
whichever is greater.
The contracted for, or committed to load as of September 1, 1979,
shall be the maximum amount of energy specified in such contract or
commitment, the maximum energy consumption of the load or the capacity
limitation contained in such contract or commitment if energy is not specified
or limited.
(c) Identification of Potential +ew Large Sinqle Loads. The Purchaser
shall make reasonable efforts to identify potential New Large Single Loads,
and shall report to Bonneville (1) the addition of electrical equipment of
ten MVA or more by a single Consumer; (2) the installation of additional
transformation capacity of ten MVA or more by the Purchaser or a Consumer
which is designed to serve a s.ingle facility; or (3) the potential change in
operation of a facility which may result in an increase of ten average
megawatts or more in a twelve-month period.
(d) Agreed Upon Monitored Loads. All of this subsection (d) except for
the last paragraph regarding consultation on billing of New Large Single Loads
shall not apply if the Purchaser is an investor utility.
Based upon the available information concerning an increase in load,
Bonneville and the P may agree that an increase in load associated
with a new facility, existing facility or expansion of an existing facility
should be considered a New Large Single Load from the date of commencement of
commercial operation of such increase in load. If Bonneville and the
Purchaser cannot determine or agree that the increase in load should be
considered a New Large Single Load, the energy used by the facility shall be
monitored and reported monthly by the Purcha'ser to Bonneville following the
Sec. 8
29
commencement or the change in operation of the load. If requested, Bonneville
and the Purchaser will agree to a Purchaser-specific monitoring procedure.
When Bonneville and the Purchaser cannot determine at the outset that
an.increase in load will become a New Large Single Load, the Purchaser shall
have the option of backbilling or rebating during said load's first year of
commercial operation. At the end of the first year of commercial operation a
determination will be made whether or not the increase is a New Large Single
Load. Whether the Purchaser chooses backbilling or rebating, the load shall
be monitored for a twelve-month period. The energy used by the load during
such period shall be compared to the energy used during the preceding
twelve-month period one year earlier, or the amount of the contracted for, or
committed to load as of September 1, 1979.
Under backbilling the Purchaser shall be billed for the increase in
load at the Priority Firm Power Rate Schedule or its successor rate schedule
during any consecutive twelve-month monitoring period. If the ener9y
consumption of the increase in load reaches 87,600,000 kWh within any
consecutive twelve-month�monitoring period, the increase in load becomes a New
Large Single Load. The Purchaser shall be backbilled for the difference
between the Priority Firm Power Rate Schedule actually charged and the New
Resource Firm Power Rate Schedule in effect during the monitoring p.eriod with
interest from the date the increase in load becomes a New Large Single Load;
the Purchaser shall then be billed at the New Resource firm Power Rate
Schedule or its successor'rate schedule for the New Large Single Load
thereafter. If the increase in load does not reach 87,600,000 kWh within any
consecuCive twelve-month monitoring period, the Purchaser continues to be
billed for the entire increase in load at the Priority Firm Power Rate
Schedule or its successor.
T�7
sec. s
R
Under rebating, the Purchaser shall be billed for the increase in
load at the New Resource Firm Power Rate Schedule or its successor rate
schedule during the monitoring period. If the increase in load reaches
87,600,000 kWh within any consecutive twelve-month monitoring period, the
increase in load becomes a New Large Single Load and billing at the New
Resource Firm Power Rate Schedule or its successor rate schedule for that load
continues thereafter. If the increase does not reach 87,600,000 kWh during
any consecutive twelve-month monitor`,y period, the load shall not be
classified a New Large Single Load. The rate schedule applicable to such load
becomes the Priority Firm Power Rate Schedule or its successor rate schedule.
At the Purchaser's option, Bonneville shall (1) rebate to the Purchaser the
difference between the New Resource Firm Power Rate Schedule actually charged
during the monitoring period and the Priority Firm Power Rate Schedule in
effect during the monitoring period plus interest; or (2) shall make such
adjustment to the Purchaser's next wholesale power bill.
Bonneville shall establish billing procedures for Ne�•; Large Single
Loads in consultation with the Purchaser.
(e) Service To New Larqe Single Loads. Subject to the limitations of
section 9, Bonneville shall supply Firm Power to serve the Purchaser's New
Large Single Loads unless the Purchaser agrees to serve all or a portion of a
New Large Single Load either (1) prior to the execution of this contract, or
(2) at the time the Purchaser notifies Bonneville of such load pursuant to
section 8(c) and 9(c), or to section 9 if the Purchaser wishes to serve all or
a portion of such New Large Single Load with resources other than Firm
Resources. That portion of such New Large Single Load which the Purchaser
wishes to serve with resources other than Firm Resources shall be treated as a
load which Bonneville is not obligated to serve and shall not be included in
31 Sec. 8
the Purchaser's Actual Firm Loads until the Purchaser requests Bonneville to
supply Firm Power for that portion of such load and Bonneville agrees to
supply the remaining portion of such power. Bonneville shall treat each
request for additional power supply under section 9 as though the Purchaser
had requested service for the entire New Large Single Load.
If a Consumer of a Purchaser provides a renewable or cogeneration resource
to serve all or a portion of a load associated with a facility which would
otherwise be a New Large Single Load, and thereby reduces the demand on the
Purchaser, that portion of such load on the Purchaser, if any, shall not be a
New Large Single Load, unless the load or portion thereof on the Purchaser is
ten average megawatts or more; provided, however, that if a Consumer sells,
displaces or removes a resource or portion thereof from service to the
Consumer's load at such facility, all such load shall be a New Large Single
Load unless Bonneville, after consultation with the Purchaser and the
Consumer, determines that.uncontrollable events prevent service to the
Consumer's load by such resource.
(f) Normalization of Consumer's Load
For the sole Purpose of computing
the increase in energy consumption'between any two consecutive twelve-month
periods of comparison under this section 8,'reductions in the Consumer's load
associated with a facility during the first twelve-month period of comparison
due to unusual events reasonably beyond the control of the Consumer shall be.
determined, and the energy consumption shall be computed as if such reductions
had not occurred.
(g) Chanqes in Load. If an increase in load becomes a New Large Single
Load, such increase shall, subject to the last paragraph of this subsection,
remain a New Large Single Load and all subsequent increases in such load or
portion therof shall also be considered a New Large Single Load.
32 Sec. 8
Load reductions to a Consumer's load of a facility shall be on a last on,
first off basis. Any load reductions made by a Consumer of a facility shall
first reduce that portion of the Consumer's load of that facility which has
been identified as a New Large Single Load.
If a Consumer with a New Large Single Load physically and permanently
removes equipment which imposes a load at a facility identified as a New Large
Single Load, the Consumer's load may be reclassified as no longer being a New
Large Single Load if Bonneville determ' such equipment impo.sed a load
equivalent to the original increase in load at such facility which caused such
load to be classified as a New Large Single Load.
(h) Renewal Relocation, and_Transfer. The following events shall not
cause a load to be considered a New Large Single Load if such event does not
result in an increase in power requirements of a Consumer on the Purchaser of
ten average megawatts or more during any consecutive twelve-month period as
herein above provided: (1) renewal or replacement of a contract between the
Purchaser and the Consumer based on the original commitment or contract if the
capacity specified in the new contract does not exceed the capacity specified
in the contract being renewed or replaced; (2) relocation, replacement, or
renovation of a Consumer's facility within the Purchaser's service area; and
(3) transfer of a facility to a successor in interest provided that the
service or product associated with the facility is essentially unchanged.
(i) Compliance. Bonneville and the Purchaser agree that should a
Purchaser fail to report a New Large Single Load of which the Purchaser has,
or reasonably should have had knowledge, such Purchaser shall be backbilled
from the date the increase in load became a New Large Single Load. For this
subsection only, such backbilling shall include the following costs: (1) the
difference between the Priority Firm Power Rate Schedule or its successor rate
33 Sec. 8
schedule and the New Resource Firm Power Rate Schedule or its successor rate
schedule; (2) interest charges on the backbilled amount determined at
Bonneville's prevailing interest rate; and (3) e late payment charge on the
backbilled amount.
9. Limitation on Increases of Sinqle Loads.
(a) The limitations of this section shall apply only to industrial
facilities of Consumers. Such facilities are defined as those facilities
whose Primary function falls into one of the following categories, as defined
in the Standard Industrial Classification Manual (1972), U.S.O.M.B.:
(1) Agriculture, Forestry, and Fishing;
(2) Mining;
(3) Construction;
(4) Manufacturing;
(5) Transportation, Communications, Electric, Gas and Sanitary
Services; and
(6) Wholesale Trade. Such facilities do not include those
facilities whose primary function falls into one of the following
categories:
(1) Finance, Insurance, and Real Estate;
(2) Retail Trade;
(3) Services; and
(4) Public Administration
(b) The Purchaser shall notify Bonneville as soon as possible if service
by the Purchaser to a new facility of a Consumer or additional service to an
existing facility of a Consumer is reasonably expected to result in an
increase of 35 average megawatts or more within any twelve-month period or an
increase of..75 average megawatts or more within any sixty-month period in the
34 Sec. 9
Purchaser's Actual Firm Energy Loads for such period in what would otherwise
be the Purchaser's Actual Firm Energy Loads for such period. Bonneville shall
be obligated to supply the increased load with Firm Energy on the earlier of
(1) the date Bonneville determines and notifies.the Purchaser that Firm Energy
is available to supply such increase; or (2) seven years from the date of the
Purchaser's notice to Bonneville. The foregoing limitations notwithstanding,
Bonneville shall use its best efforts to acquire Firm Energy to serve such
increased load at the time requested �y the Purchaser.
(c) The Purchaser shall notify Bonneville when service by the Purchaser
to a new facility of a Consumer or additional service to an existin9 facility
of a Consumer is reasonably expected to result in an increase of ten average
megawatts or more within any twelve period in the Purchaser's Actual_
Firm Energy Loads for.such period in what would otherwise be the Rurchaser's
Actual Firm Energy Loads for such period. Bonneville shall be obligated to
supply the increased load with Firm Energy two years from the date of the
Purchaser's notice to Bonneville subject to the limitations in subseetion (b)
above. Notice by the Purchaser to Bonneville that a monitoring plan needs to
be established for the facility of a Consumer pursuant to section 8(d) shall
be deemed to be notice under this subsection.
(d) If the Purchaser has a resource other than a Firm Resource which it
has identified to serve all or a portion of an increase in load, the portion
served by such resource shall be excluded in determining whether the
limitations of subsection (b) above apply to such increase in load. If the
Purchaser identifies such a resource, Bonneville and the Purchaser shall agree
on the portion of such load which such resource is capable of serving. If the
Purchaser subsequently includes such resource in its Firm Resources Exhibit
pursuant to section 12, the portion of such increase in load to be served by
35 Sec. 9
such resource as agreed pursuant to the preceding sentence shall not be
treated as a load which Bonneville is not obligated to serve pursuant to
section 8(e) and shall be included in the Purchaser's Actual Firm Load.
(e) The limitations of subsection (b) above shall not apply if the
Purchaser has developed adequate resources to meet its load growth including
the increase in load resulting from service to a new facility of a Consumer or
additional service to an existing facility of a Consumer and replace
reductions in its Firm Resources which are included as 5(b)(1)(A) resources in
its Firm Resources Exhibit. The Purchaser shall be deemed to have built
adequate resources for Bonneville to supply such increase in load if the
Purchaser has developed resources which were dedicated to its load or sold to
Bonneville equal to the sum of (1) reductions in 5(b)(1)(A) resources between
the '79-80 Operating Year and the date specified in subsection (b)(2) above,
and (2) growth in Actual Firm Energy Load between (A) the '82-83 Operating
Year and the date specified in (b)(2) above for public bodies, cooperatives
and Federal agencies or (B) the '79-80 Operating Year and the date specified
in (b)(2) above for investior-owned ut'ilities.
(f) Bonneville shall reduce the notice period specified in subsection (c)
above for 100 average megawatts of load for which the Purchaser or other
Customers under similar contracts have requested service for loads from 10 to
35 average megawatts during any Operating Year. The notice period for such
requests shall be the period necessary to include service to such'loads in the
New Resources Firm Power Rate. If Bonneville receives more than one request
from the Purchaser and other Customers under similar contracts to serve
increases in load which exceed the foregoing limitations, Bonneville shall
allocate its available power supply among such competing requests in the order
that written notice of request for service was first received.
36
Sec. 9
h
(g) The foregoing limitations shall not apply to increases in load which
were contracted for or committed to as of September 5, 1981. The
determination whether a load was contracted for or committed to as of
September 5, 1981, shall be made by Bonneville.
10. Planning and Operating Information.
(a) General Information Requests. Bonneville and Purchaser agree to
cooperate in the full exchange of such planning and operating information as
may be reasonably necessary for the *`...ely and efficient performance of the
parties' obligations or the exercise of rights under this contract. Such
information shall be provided pursuant to subsection (b) below on a timely
basis and no reasonable request shall be refused, including requests to
provide information or data in a specified manner or on a special form.
(b) Provision of Information. To the extent such information can be
provided at a nominal cost each party agrees to provide the information.
Otherwise, a party may respond to a request for information (1) by providing
the information subject to reimbursement of reasonable expenses necessarily
incurred; or (2) to the extent the supplying party finds the timing or effort
of ineeting an information request burdensome, by offering the requesting party
access to the sources from which the information can be obtained.
(c) Provision of Statistical Data. Bonneville and the Purchaser agree
to cooperate in the full exchange.of data showing kilowatthours generated at
each party's generating facilities as shown on Federal Energy Regulatory
Commission reports Form 1 and 12, as may be subsequently amended or
superseded, including purchases from generating facilities on the Purchaser's
system, sales of energy, demands therefor if available, by class of Consumer
and revenues derived therefrom, the Purchaser's annual report to its
stockholders ar�d 6unnevilie's annual report
37
If the Purchaser is not required
Sec. 10
by the Federal Energy Regulatory Commission to file Form 1 or Form 12 reports,
the Purchaser shall provide such equivalent information as Bonneville requires
on a form provided by Bonneville or on one provided by the Purchaser which is
acceptable to Bonneville.
(d) Lonq-Range Planning. Bonneville and the Purchaser agree to provide
information necessary to develop their long range generation, transmission and
distribution plans. Bonneville shall use its best efforts to supply annually
to the Purchaser a load-resource document showing its load-resource balance,
its program for acquisition of resources and the firm loads it expects to
supply for at least ten years. Bonneville shall provide additional customer
service facilities to supply electric power or energy to the Purchaser in
accordance with the Customer Service Objectives Exhibit and applicable
Customer Service Policy.
11. Compensation Proqram for Regional 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 curtailments in consumption
or from resources on a party's system durin9 periods 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 area 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
Bonnevile's obligation to supply Firm Power_ to the Purchaser. If the
Purchaser's service area extends into more than one State and all of such
38 Sec. 11
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 Computed Requirements basis. The compensation
under this section may be reduced partially or in its entirety as
described in paragraph (4) 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 orden 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 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
39 Sec. 11
after adjustment, if any, as set forth below. If the Purchaser does not
regularly publish an Estimated Firm Energy Load, such Purchaser's
Estimated F�rm 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 curtailment program 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.
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 adjustment 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.
Sec.. 11
40
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. The Es�timated Firm Energy Load shall
then be adjusted in the manner specif�ed 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 L�ad 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 was not in effect.
(4) If regional curtailment has been requested after July 1, 1983,
because Bonneville is unable to acquire sufficienti 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 after July 1, 1983, as specified in subparagraph (A) below exceeds
the amount of resources which the Purchaser has 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 reduced 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 '82-'83 Operating
Year; and
41 Sec. 11
(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.
12. Purchaser's Firm Resources.
(a) Each of the Purchaser's Firm Resources which the Purchaser
anticipates will be used during the initial seven Operating Years under this,
agreement either (1) to calculate its Assured Peak Capability and Assured
Energy Capability if the Purchaser is purchasing on a Computed Requirements
basis; or (2) to serve its Actual firm Load if the Purchaser is purchasing on
a Metered Requirements basis shall be identified in the initial Firm Resources
Exhibit attached hereto on the effective date of this contract. Contracts
under which the Purchaser is obligated to deliver, transfer or exchange power
with another utility and which either: (1) were in effect on or before
December 5, 1980; (2) have been approved for inclusion as Firm Resources in
writing by Bonneville; or (3) would not increase Bonneville's total firm
obligations to supply power shall be treated as negative firm Resources. The
Firm Resources Exhibit shall separately show those Firm Resources described by
section 5(b)(1)(A) and those described by section 5(b)(1)(B) of P.L. 96-501.
(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
42 Sec. 12
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 July 1.
Changes in the Purchaser's Firm Resources Exhibit shall be permitted
only if specifically provided for as follows:
(1) The peak capability of dny 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) 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 resulting 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
43
Sec. 12
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; provided, however, 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
exercise its option to purchase pursuant to that agreement. Such Firm
Resource may be included in such Firm Resources Exhibit 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 Firm Resource Which has been offered to
Bonneville pursuant to section 9(i)(3) of P.L. 96-501 and which is not
accepted by Bonneville under the terms of the offer may be added effective
on the date of commercial operation in any revised Firm Resources Exhibit
upon a minimum of 2 years' written notice.
(7) Any Firm Resource may be added if and to the extent that
Bonneville is expected to have an excess of firm load over its firm
resources in the first Operating Year for which the Purchaser proposes to
add such Firm Resource. Bonneville's expected firm load-resource balance
44
Sec. 12
will be determined from the then latest publication of Bonneville's firm
loads and planned firm resources issued by Bonneville; provided,
however that purchases by Bonneville which are shown in such publication
but which Bonneville has not at the time of such determination made a
commitment to purchase shall be removed from Bonneville's resources before
such determination is made. Prior to the submittal of any Firm Resources
Exhibit which includes such addition, the Purchaser shall notify
Bonneville in writing of the time� .nd amounts of Firm Resources it
proposes to add pursuant to this paragraph. If the Purchaser and other
Customers under similar contracts propose to add Firm Resources in excess
of Bonneville's expected firm load-resource deficiency, Bonneville shall
allocate the amount of Firm Resources 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 within 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.
45 Sec. 12
The peak capability 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 (b).
(9) Any Firm Resource may be removed if and tc 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.
(10) 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
46
Sec. 12
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 c.,ier 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.
47
Sec. 12
13. Desianation of Basis for Purchasinq Firm Power.
(a) If the Purchaser operates automatic generation_ control equipment and
is thereby able to schedule amounts of power to be interchanged with
Bonneville, it shall be designated to purchase Firm Power under this contract
on the basis of Computed Requirements. Such Purchaser shall be subject to the
definition of Measured Amounts for a Purchaser designated to purchase on the
basis of Computed Requirements and which schedules amounts of power to be
interchanged with Bonneville and to all of the provisions of this contract
except sections 14 and 15. The Purchaser shall not discontinue the operation
of automatic generation control equipment such that it is unable to schedule
amounts of power to be interchanged with Bonneville unless it has requested
that its designation for purchase under this contract be changed and
Bonneville has determined that such change would not have a significant
adverse effect on Bonneville and has agreed in writing to such change.
(b) If the Purchaser does not operate automatic generation control
equipment.but either: (1) has sold generation from its Firm Resources in such
a manner as to increase Bonneville's obligation to deliver Firm Power to the
Purchaser in an amount in excess of Bonneville's obligation prior to such sale
or has notified Bonneville that it intends to do so; or (2) has Firm Resources
in amounts set forth below which have the ability to redistribute generation
among months in such a manner as to cause losses of power or revenue to
Bonneville, it shall be designated to purchase Firm Power under this contract
on the basis of Computed Requirements unless the Purchaser requests that it be
designated to purchase on the basis of Metered Requirements and Bonneville
agrees to such designation. Such Purchaser designated to purchase on the
basis of Computed Requirements pursuant to this subsection shall be subject to
the definition of Measured Amounts for a Purchaser which is designated to
48
Sec. 13
purchase on the basis of Computed Requirements but which does not schedule
amounts of power to be interchanged with Bonneville and to all of the
provisions of this contract except sections 14(a) through (c), section 15 and
section 18; provided, however, that section_ 2 of the Power Scheduling
Procedures Exhibit shall apply to such Purchaser. The amounts of the
Purchaser's Firm Resources referred to in (2) above are those which either:
(1) total 50 megawatts or more of peak capability or include one or more units
of 15 megawatts or more of peak capa�'�ity; or (2) include portions of a
generating unit which the Purchaser and other Customers under similar power
sales contracts with Bonneville have included as Firm Resources totaling
50 megawatts or more of peak capability for all such Customers. In'
determining whether any of the Purchaser's Firm Resources have the ability to
redistribute generation among months in such a manner as to cause losses of
power or revenue to Bonneville, Bonneville shall exclude any Firm Resource in
regard.to which the Purchaser has entered into either: (1) a separate
agreement with Bonneville under which Bonneville assumes control of the
generation of the Firm Resource and provides the Purchaser with an equivalent
amount of firm Power; or (2) an agreement with another utility or joint
operating agency which has been approved in writing by Bonneville for the
purpose of this determination.
(c) If the Purchaser is not designated to purchase on the basis of
Computed Requirements pursuant to subsections (a) or (b) above, the Purchaser
shall be designated to purchase Firm Power under this contract on the basis of
Metered Requirements. Such Purchaser shall be subject to the definition of
Measured Demand and Measured Energy for a Purchaser designated to purchase on
the basis of Metered Requirements and to all of the provisions of this
contract except sections 16, 17, 18 and 19.
49
Sec. 13
(d) If the Purchaser operates any Firm Resources or other resources
within Bonneville's automatic generation control areas, Bonneville shall
provide generation control services including planned outage reserves, forced
outage reserves, spinning reserves and frequency control to the extent the
Purchaser does not otherwise arrange to provide such services. The Purchaser
shall pay Bonneville for such services at the charges set forth in Section II
of the Service Charges Exhibit. Section II of the Service Charges Exhibit
shall be revised upon determination by Bonneville that any charge contained
therein must be changed to properly compensate Bonneville for reasonable costs
incurred by Bonneville to provide such services. The charges set forth in
Section II of the Service Charges Exhibit shall not be increased more
frequently than once a year. Bonneville shall provide the Purchaser and other
Customers with a reasonable opportunity of not less than 90 days to comment
prior to.the effective date of such proposed revised.charges. Revised charges
shall take effect on the date specified by Bonneville in its written notice to
the Purchaser of its i.ntention to revise these charges.
(e) If the Purchaser's electrical system is interconnected with the
electrical system of one or more other utilities which are interconnected
directly or indirectly with the Bonneville electrical system and if such
Purchaser does not operate automatic generation control equipment, the
Purchaser shall: (1) submit to Bonneville the amounts of power scheduled to
be interchanged between the Purchaser and such other utilities in accordance
with the provisions of section 1 of the Power Scheduling Procedures Exhibit;
and (2) install and operate at its expense at interconnections which are
normally operated closed the equipment necessary to supply Bonneville with
telemetered signals indicating: (A) continuously the actual rate of power
flowing on each"of the interconnections between the Purchaser and such other
50 Sec. 13
utilities; and (B) at the end of each hour the amount of power which has
flowed on each such interconnection during each clock hour.
(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 July 1 following such notice. If
Bonneville determines that the Purchaser shall be designated to purchase on a
Computed Requirements basis due to tF, rurchaser'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 July 1
preceding the date of such sale as specified in the Purchaser's notice.
Following January 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 July 1
immediately preceeding 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.
51 Sec. 13
14. Purchaser's Metered Re uirements and Amount of Power Sold.
(a) Bonneville shall make Firm Power available to the Purchaser and the
Purchaser shall purchase from Bonneville in accordance with the provisions of
this contract at the Points of Delivery, Firm Power to meet the Purchaser's
Actual Firm Loads less'the output, if any, from the Purchaser's Firm Resources
unless Bonneville's obligation to make Firm Power available is limited under
the terms of section 7. For the purpose of this subsection, the output from
the Purchaser's Firm Resources means the amounts of power delivered to
Bonneville for the Purchaser pursuant to contracts with entities other than
Bonneville which are Firm Resources of the Purchaser, amounts of power which
Bonneville is obligated to deliver to the Purchaser pursuant to contracts
other than this contract which are Firm Res�urces of the Purchaser, and either
(1) the firm peak and energy capability of each.of the Purchaser's Firm
Resources in regard to which the Purchaser has a services agreement with
Bonneville or another entity if such agreement is approved in writing by
Bonneville; or (2) the entire variable output, if any, of each of the
Purchaser's Firm Resources in regard to which no such agreement exists with
Bonneville or any other entity.
(b) The Purchaser may request and Bonneville shall provide services to
ensure that the entire output of the Purchaser's Firm Resources does not
exceed the Purchaser's Actual Firm Load in any hour of the Operating Year
unless Bonneville determines such services cannot be furnished without
substantial interference with its power marketing program, applicable
operating limitations or existing contractural obligations. Such services
shall include but not be limited to the following:
(1) transmission;
(2) load factoring;
52 Sec. 14
(3) seasonal storage;
(4) scheduling and management; and
(5) services specified in section 13(d).
Bonneville shall enter into agreements to provide any or all of these
services. Charges for such services shall be set forth in such agreements.
(c) The Purchaser may request and Bonneville shall provide services to
establish a planning capability for any or all of the Purchaser's Firm
Resources unless Bonneville determin such services cannot be furnished
without substantial interference with its power marketing program, applicable
operating limitations or existing contractural obligations. The planning
capability of such resource or resources shall be the monthly amounts of peak
capability and energy capability determined under the applicable services
agreement. Such services shall be provided at the charges set forth in such
agreement to recover the costs of such services less a credit established in
such agreement to compensate the Purchaser for the output of such resources in
excess of the firm planning capability.
(d) Bonneville may from time to time request that the Purchaser operate
its Firm Resources or other resources which'are within Bonneville's automatic
generation control area or arrange to receive power available to it under
contracts in such a manner as to assist Bonneville in meeting its total
loads. If so requested the Purchaser shall fully comply with such request to
tfie extent that the output of such resources or such contract rights are not
otherwise committed and can be controlled by the Purchaser. If, as a result
of such compliance the Purchaser reasonably and necessarily incurs any
additional costs or loss of revenue, the Purchaser may submit to Bonneville an
itemized statement of such additional costs or loss of revenue and Bonneville
shall pay the Purchaser for such additional costs or loss of revenue.
53
Sec. 14
Additional costs may include, but shall not be limited to, fuel costs,
operating and maintenance costs or costs of power it purchases from Bonneville
under this contract less any billing amounts not incurred by the Purchaser
under this contract which would have been payable to Bonneville if Bonneville
had not made such request.
15. Metered Requirements Payment for Power Sold.
(a) The Purchaser shall pay Bonneville each Billing Month for the Firm
Power delivered hereunder at the rate specified in subsection (b) below from
the Wholesale Power Rate Schedules and General Rate Schedule Provisions
Exhibit. Such payment shall be in accordance with the terms of such rate
schedule and the General Contract Provisions Exhibit. The Wholesale Power
Rate Schedules and General Rate Schedule Provisions Exhibit shall be changed
in accordance with the provisions of the Equitable Adjustment of Rates section
of the General Contract Provisions Exhibit.
(b) If the Purchaser is a public body, cooperative or Federal agency,
payment shall be at the Priority Firm Power Rate for the Purchaser's Measured
Demand and Measured Energy for such Billing Month; provided, however, that,
after determining the billing factors for Firm Power delivered hereunder, the
New Resource Firm Power Rate Schedule shall be substituted for the Priority
Firm Power Rate Schedule for that portion of the Purchaser's billing demands,
if any, identified pursuant to section 8 for service to New Large Single
Loads. If the Purchaser is an investor-owned utility, payment shall be at the
New Resource Firm Power Rate for the Purchaser's Measured Demand and Measured
Energy. If the Purchaser's Measured Demand or Measured Energy exceed
Bonneville's obligations, as set forth in section 14(a), to make Firm Power
available to the Purchaser, such excess shall be treated as power that cannot
be assigned to a class of power which Bonneville delivers on such hour
54 Sec. 15
pursuant to contracts between Bonneville and the Purchaser or to a type of
power which the Purchaser acquires from sources other than Bonneville which
Bonneville delivers during such hour.
(c) Bonneville shall pay the Purchaser amounts which reimburse the
Purchaser for additional costs incurred pursuant to section 14(d). Such
payments shall be net billed, if possible, pursuant to the Net Billing section
of the General Contract Provisions Ezhibit on the next power bill after the
Purchaser submits an itemized statemen` of such costs.
(d) Bonneville shall pay the Purchaser amounts which compensate the
Purchaser for reductions in Bonneville's obligation to supply Firm Power as
set forth in section 11(b). Such payments shall be net billed, if possible,
pursuant to the Net Billing section of the General Contract Provisions Exhibit
on the next power bill after the Purchaser submits the information required by
section 11(b)(3).
(e) The Purchaser shall pay Bonneville each month for any service charges
assessed pursuant to section 13(d) at the applicable charge or charges, if
any, specified in section II in the Service Charges Exhibit. Such payments
shall be net billed, if possible, pursuant to the Net Billing section of the
General Contract Provisions Exhibit.
16. Determination of Purchaser's Assured Capability.
(a) On or before the effective date of this contract, and thereafter, on
or before July 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 in the manner
described in this section. If the Purchaser is a party to the Coordination
Agreement, such exhibit shall be an estimated exhibit until such time as the
final regulation data are available under the Coordination Agreement. The
55 Sec. 16
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 if the
Purchaser does not adjust its Flexibility Account to reflect such differences
up to the limits permitted by section 17(d).
(b) For the purpose of determining Assured Capability, the Purchaser
shall use its best efforts to plan the use of its Firm Resources shown in the
Firm Resources Exhibit with the objective of placing on Bonneville the least
monthly requirements for energy, and, to the extent consistent with such
objective, the least monthly requirements for capacity, except as otherwise
permitted in this subsection (b) and in subs'ection (c) below. For the purpose
of determining Assured Capability, the Purchaser shall allocate its Assured
Energy Capability among months and years in a manner consistent with
subsection (c) below. The Purchaser's Assured Peak Capability and Assured
Energy Capability shall be the sum of the amounts determined in paragraphs (1)
and (2) below.
(1) The Purchaser's Assured Capabilities shall equal the amounts
determined by adjusting the Purchaser's Firm Load Carrying Capability for
all Firm Resources or portions of Firm Resources of the Purchaser
56 Sec. 16
developed in accordance with Coordination Agreement planning for each
month for the subject Operating Year in the manner described below.
(A) The Purchaser's Firm Peak Load Carrying Capability shall be
reduced by the peak capabilities of those generating resources or
portions of generating resources which are included in Coordination
Agreement planning but which are not included in the Purchaser's Firm
Resources Exhibit. Further adjustment shall be made by adding to the
Firm Peak Load Carrying Capah';ity any reserves attributable to such
resources under Coordination Agreement planning. The Purchaser's
Firm Energy Load Carrying Capability shall be reduced by the energy
capabilities of those generating resources which are included in
Coordination Agreement planning but which are not included in the
Purchaser's Firm Resources Exhibit. Further adjustments shall be
made to accommodate restoration and reserves attributable to such
resources under Coordination Agreement Planning. The Purchaser may
provide a procedure for calculating sustained peaking adjustment in
conformance with subsection (d) below. Upon Bonneville's agreement
with such procedure the Firm Peak Load Carrying Capability shall be
further reduced to reflect loss of peak capabilities due to sustained
peak requirements to the extent that such loss is not accounted for
in Coordination Agreement planning.
(B) In determining the Purchaser's Assured Capabilities the
monthly peak and energy which the Purchaser plans to obtain on a firm
basis under each contract set forth in the Purchaser's Firm Resources
Exhibit and which is not included in the Purchaser's Firm Load
Carrying Capability shall be added to the Purchaser's Firm Peak Load
5 Sec. 16
Carrying Capability and Firm Energy Load Carrying Capability,
respectively.
(C) In determining the Purchaser's Assured Capabilities the
monthly peak and energy which the Purchaser is obligated to deliver
pursuant to each contract set forth in the Purchaser's Firm Resources
Exhibit shall be subtracted from the Purchaser's Firm Peak Load
Carrying Capability and Firm Energy Load Carrying Capability,
respectively.
The Purchaser's Assured Capabilities determined under this
paragraph (1) shall equal the amounts determined in subparagraphs (A)
plus (B) minus (C).
(2) The Purchaser's Assured Capabilities for all Firm Resources or
portions of Firm Resources of the Purchaser which are not included in
Coordination Agreement planning for each month,for the subject Operating
Year shall equal the amounts determined in the manner described below.
(A) The contribution of hydroelectric generating resources to
the Purchaser's Assured Energy Capability in the months of the
Operating Year which are within the Critical Period shall be the
energy capability which can be produced by such resources by
combining the release of all of the Purchaser's Seasonal Storage with
Critical Period streamflow conditions. In the months in the
Operating Year which are outside the Critical Period, such
contribution shall be the lesser of (i) the energy capability of such
resources during each such month; or (ii) the product of the
Purchaser's Estimated Firm Energy Load in each such month and the
ratio of the energy capability of such resources during the months of
the Operating Year whi¢h are within the Critical Period to the
58 Sec. 16
Purchaser's Estimated Firm Energy Load in such months. Such energy
capabilities shall be reduced for an energy reserve for generating
unit forced outages equal to 5 percent of the energy capability of
each hydroelectric generating resource during each month in which the
energy capability of such resource is greater than 85 percent of its
peak capability as shown on the Purchaser's Firm Resources Exhibit.
(B) The contribution of generating resources other than
hydroelectric generating reso�'ces to the Purchaser's Assured Energy
Capability shall be the energy capabilities distributed among months
of the Operating Year in a manner which takes into account planned
and unplanned outages and which equals the product of the peak
capability and the annual plant factor shown in the Firm Resources
Exhibit for such Firm Resource. In preparing the Firm Resources
Exhibit the Purchaser shall use reasonable estimates based on adverse
availability of fuel (fossil, wind, solar, etc.), and the effects of
planned and unplanned.outages on the energy capabilities of such
resources.
(C) ,The contribution of hydroelectric resources to the
Purchaser's Assured Peak Capability shall be the peak capability of
each Firm Resource as set forth in the Firm Resources Exhibit after
appropriate reduction in each month of the Operating Year to reflect
the operation of such resources to produce the energy capability
determined pursuant to (A) above. The contribution of generating
resources other than hydroelectric resources to the Purchaser's
Assured Peak Capability shall be the peak capability of each Firm
Resource as set forth in the Firm Resources Exhibit after appropriate
reduction in each month of the Operating Year in which an outage is
59 Sec. 16
planned to reflect such planned outages. The sum of such
contribution from all generating resources of the Purchaser shall be
reduced by the amount of reserves necessary to result in a 5 percent
probability of loss of load in the Operating Year due to generator
forced outages. Individual unit forced outage rates, peak load
probabilities, and other information needed to make the loss of load
probability computation will�be the same as is used in the
Coordination Agreement or such other information as is agreed upon by
the Purchaser and Bonneville.
(D) The contribution of each of the Purchaser's contractual
resources to the Purchaser's Assured Capability in each month of the
Operating Year shall be the monthly peak and energy which the
Purchaser plans to obtain on a firm basis under each contract set
forth on the Purchaser's Firm Resources Exhibit.
(E) The contribution of each of the Purchaser's contractual
obligations to the Purchaser's Assured Capability in each month of
the Operating Year shall be the monthly peak and energy which the
Purchaser is obligated to deliver under each contract set forth on
the Purchaser's Firm Resources Exhibit.
The Purchaser's Assured Energy Capability determined under
this paragraph (2) shall equal the amounts determined in
subparagraphs (A) plus (B) plus (D) minus (E). The Purchaser's
Assured Peak Capability shall equal the amounts determined in
subparagraphs (C) plus (D) minus (E).
(c) If and to the extent that the Purchaser has Seasonal Storage, the
Purchaser shall, for the purpose of determining Assured Capability, allocate
60 Sec. 16
its Assured Energy Capability among months and years in accordance with the
following limitations:
(1) The Purchaser shall allocate its Assured Energy Capability among
years in the Critical Period in a manner which results in annual energy
requirements on Bonneville which increase between such years in amounts
not greater than the amount by which the Purchaser's Estimated Firm Energy
Load increases between such years plus the amount by which the total
energy capability of the Purchaser' Firm Resources decreases between such
years as a result of resource removals pursuant to section 12. Annual
average amounts for years in which the Critical Period begins or ends
shall be the average of the appropriate amounts in the months which are
within the Critical Period.
(2) The Purchaser shall allocate its annual Assured Energy
Capability among months of each Operating Year in a manner which 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 total annual
energy requirement on Bonneville for that Operating Year; and (B) a
fraction of the Purchaser's total annual.energy requirement on Bonneville
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;
provided, however, for years in which the Critical Period begins or
ends, such monthly and annual Estimated Firm Loads shall be only for the
months within the Critical Period. If requested by the Purchaser and if
Bonneville agrees, the Purchaser may allocate its annual Assured Energy
Capability so as to place monthly requirements on Bonneville other than
those determined by (A) or (B) above to reflect a period of planned
61 Sec. 16
thermal maintenance or other causes. The Purchaser's annual energy
requirement on Bonneville shall not be changed by such reallocation.
(d) Methods used for calculating peak and energy capabilities of Firm
Resources shall be the usual methods used by the Purchaser, Bonneville, and
other Pacific Northwest utilities for such purpose. Operating constraints,
including but not limited to such nonpower constraints as irrigation,
navigation, flood control, recreation, and fish and wildlife obligations, and
data relating water flow, head, energy, peak capability, usable peak
capability and other variables to each other shall be supplied by the
Purchaser for each of its Firm Resources when such data are first needed
pursuant to this contract and may be revised by the Purchaser from time to
time but such revisions shall not include reductions amounting to discontinued
use unless permitted by section 12(b)(8). Such constraints and data shall be
reasonable and in conformance with the usual practices used by the Purchaser,
Bonneville, and other Pacific Northwest utilities for resource planning.
(e) Bonneville may require that the capabilities of any of the
Purchaser's Firm Resources be verified by test or other substantiating data.
acceptable to Bonneville
than once each year.
Such verification shall not be required more often
(f) The Purchaser shall provide and demonstrate to Bonneville at its
request that the Purchaser has firm transmission capacity, either through its
own facilities or through contracts, in amounts sufficient to transmit to its
firm load or the firm load of others through contractual exchanges of resource
capabilities the peak capability of each Firm Resource claimed in the
Purchaser's Firm Resources Exhibit.
Sec. 16
17. Purchaser's Com uted Re uirements and Amount of Power Sold.
(a) Prior to May 15 of each year, the Purchaser may request in writing
that Bonneville sell to it during the Operating Year beginning on the next
July 1 on a Planned Computed Requirements basis as provided for in this
subsection (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 July 1 unless Bonneville
determines that the Purchaser's Esti,,,ated Firm Load does not conform to the
definition in this agreement. In the event such a request has been made by
the Purcfiaser prior to February 1, Bonneville shall notify the Purchaser of
its approval or disapproval of such request prior to March 15. If such
request is not approved by Bonneville, it shall identify specific deficiencies
in the Purchaser's Estimated Firm Load and the Purchaser may submit a revised
request, including revised Estimated Firm Load. If the Purchaser's request or
revised request is approved by Bonneville, the Purchaser shall, prior to
July 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.
(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
63 Sec. 17
proposed schedule of Contracted Requirements purchases of peak and energy
pursuant to paragraph (2) below. Bonneville shall approve such request and
schedule of Contracted Requirements purchases unless Bonneville determines
that the Purchaser's Estimated Firm Loads do not conform to the definitions in
this contract or that the proposed schedule of purchases does not conform to
the requirements of this subsection (b), or that the Purchaser has failed to
comply with the provisions of paragraph (9) below. If Bonneville determines
that the Purchasers' Estimated Firm Loads do not conform to the definitions in
this contract or that the proposed schedule of purchases does not conform to
the requirements of this subsection (b), Bonneville shall notify the Purchaser
of the specific deficiencies and the Purchaser may submit revised data or
revised schedule of Contracted Requirements purchases.
If the Purchaser determines that its estimated Assured Capability,
together with the assured capability.of resources.it has acquired on a firm
basis will be sufficient to meet its Estimated Firm Loads, after taking into
account the effect of any conservation or direct application renewable
resource measures paid for by Bonneville directly or through billing credits,
the proposed schedule of Contracted Requirements purchases submitted by the
Purchaser with its request to purchase on the basis of Contracted Requirements
pursuant to this subsection (b) shall be equal to zero. Bonneville shall
approve or disapprove such request on the same basis as any other request to
purchase on the basis of Contracted Requirements.
(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, if approved by
Bonneville pursuant to this subsection (b), for the seventh Operating Year
of such exhibit, or for an earlier Operating Year if Bonneville is
64 Sec. 17
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 prior.ity of competing requests for purposes of allocating
the availability of this 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
Requirements basis at the time oF ��bmittal 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 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 Purchaser's initial
Firm Resources Exhibit in addition to data required in section 12(a), the
Purchaser's annual Estimated Firm Peak Load, the annual average of
Purchaser's Estimated Firm Energy Load, the estimated Assured Capabilities
of the Purchaser's 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 snali oe the Purchaser's Contracted
b5
Sec. 17
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 for
which information is required under paragraph (3) below. Such revised
Firm Resources Exhibits 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..
(3) The amounts of power shown in the Purchaser's schedule of
Contracted Requirements purchases, as submitted with the Firm Resources
Exhibit for an Operating Year, shall not be less than an amount which,
when added to the Purchaser's estimated Assured Capability, is sufficient
to serve at least 90 percent of the Purchaser's Estimated Firm Load, nor
greater than an amount which, when added to such estimated Assured
Capability, is sufficient to serve 100 percent of the Purchaser's
Estimated Firm Load.
A determination of conformance to the above limitations shall be
made at the time the schedule is first submitted and shall not be revised
thereafter except when such Estimated Firm Loads, firm Resources, or
Assured Capabilities are changed as specifically permitted by paragraphs
(4) and (5) below. The Estimated Firm Load on which the Purchaser's
66
Sec. 17
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 ��s 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 whi'ch 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) The schedule of Contracted Requirements purchases shown in the
Purchaser's Firm Resources Exhibit may be changed for any Operating Year
if and to the extent that Bonneville has given prior written consent.
(7) On or before July 1 of each Operating Year, the Purchaser shall
prepare an Assured Capability Exhibit as provided for in section 16 above
and shall allocate its annua Contracted Requirements energy purchase
among months of such Operating Year in a manner which results in a
67 Sec. 17
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 Averege Energy Requirement for each such month of
the Operating Year.
(9) Prior to each Operating Year, a Contracted Requirements
Purchaser shall acquire on a firm basis resources having an amount of
assured capability, determined in the manner provided in section 16,
which, together with the Assured Capability of its Firm Resources,
determined in the manner provided in section 16, are sufficient to meet
the excess of the Purchaser's then current Estimated Firm Loads for such
68 Sec. 17
Operating Year as set forth in its submittal for such Operating Year, over
the amount of its Contracted Requirements purchases from Bonneville as
shown on the schedule of such purchases. For the purpose of determining
whether the Purchaser is in compliance with the provisions of this
paragraph (9), a portion of the Purchaser's loads equivalent to the
following shall not be considered:
(A) resource capability lost temporarily or permanently due to
circumstances beyond the rea�":able control of the Purchaser, if such
loss of resource could not have been reasonably anticipated by the
Purchaser within sufficient time to make necessary replacement
acquisitions, and
(B) the amount by which the Purchaser's then current Estimated
Firm Loads exceed its Estimated Firm Loads as accepted by Bonneville
under this subsection (b) if, after the date of such acceptance, such
excess could not have been reasonably anticipated by the Purchaser
within sufficient .time to make necessary resource acquisitions.
In any event, the Purchaser shall be deemed to be in compliance with
the provisions of this paragraph (9), unless Bonneville determines within
30 days of an initial request and thereafter by the later of July 1 of
such year or 30 days after the date on which final regulation data are
available under the Goordination Agreement for such year that the
Purchaser does not have a firm load-resource balance within reasonable
limits for such Operating Year.
In the event that the Purchaser is not in compliance with the
provisions of this paragraph (9) for an Operating Year, Bonneville may
disapprove the Purchaser's initial request and thereafter any.future
request by the Purchaser to purchase on the basis of Contracted
Sec. 17
Requirements, unless Bonneville determines that the Purchaser can
reasonably be expected to comply with the provisions of this paragraph (9).
(10) The schedule of power purchases shall not include for any
Operating Year the amount of actual power savings. resulting from
conservation or direct application renewable resource measures paid for by
Bonneville directly or through billing credits to the extent such
reduction was not reflected in the Estimated Firm Energy and Estimated
Firm Peak Loads used to determine the amounts of Firm Power to be made
available pursuant to this subsection (b). The amount of actual power
savings shall be agreed upon by the Purchaser and Bonneville at the time
Bonneville agrees to pay for such measures, unless otherwise agreed by the
parties. Such estimates may be revised prior to January 1 of any
Operating Year for succeeding Operating Years upon agreement of Bonneville
and the Purchaser. At the time such estimates are revised, an equivalent
change shall be made in the schedule of Contracted Requirements power
purchases.
(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 such request,. 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.
(d) If the Purchaser purchases on the basis of Actual Computed
Requirements and has Seasonal Storage, it 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
70
Sec. 17
by the Purchaser to its Assured Energy Capability. The Flexibility Account
balance shall initially be zero on July 1 of each Operating Year; arovided,
however that if a Purchaser begins to purchase on the basis of Actual
Computed Requirements under this contract other than at the beginning of an
Operating Year, the initial balance in the Flexibility Account shall be the
same as if the Purchaser had been purchasing on the basis of Actual Computed
Requirements from the beginning of such Operating Year. A reduction in the
Assured Energy Capability in any mon�,� shall be accumulated as a positive
number in the Flexibility Account and an increase in 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 Period ends within the Operating Year.
(B) 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 to
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 (A) above and;
(ii) For those Firm Resources which the Purchaser does not
include in Coordination Agreement planning, five percent of the
71 Sec. 17
energy capability of Ehe hydroelectric resources and other than
hydroelectric resources, as computed in section 16(b)(2)(A) and
(B), remaining between the date of such balance and the date the
Flexibility Account balance is required to be zero pursuant to
subparagraph (A) above.
(C) 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 sn
increase in the Purchaser's Assured Energy Capability in the month or
months in which the Purchaser intends to use such increased
capability. At the end of each month for which the Purchaser's
Flexibility Account has a positive balance, the Purchaser shall
submit in writing to Bonneville documentation substantiating such
increased capability.
(D) To the extent that the adjustments to the Flexibility
Account are attributable to Firm Resources which the Purchaser
includes in Coordination Agreement planning, such adjustments shall
be the same as the adjustments which are reported monthly to
Coordination Agreement parties pursuant to section 9(m) of the
Coordination Agreement.
(2) If the Purchaser intends to adjust its Assured Energy Capability
for any month, the Purchaser shall submit written notice to Bonneville
within ten days of the last day of such month showing 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 is given within
ten days after the end of such month, the Assured Energy Capability
determined for such month prior to the Operating Year shall be applied to
72
Sec. 17
such month and shall not be changed thereafter. If such notice has been
submitted, the Purchaser shall submit a final adjusted Assured Energy
Capability within 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 notice.
(e) If the Purchaser purchases ��i the basis of Actual Computed
Requirements and the Purchaser's Firm Resources are unable to produce their
Assured Capability, such Purchaser may implement a load curtailment program as
provided in this subsection (e) to support the Assured Capability of its Firm
Resources. The Purchaser shall notify Bonneville prior to implementing such a
program and shall provide documentation to Bonneville of it's actual
implementation of the program at the end of each month such program is in..
effect. Such documentation shall be in the form of contracts, regulatory
orders, filed tariffs, newspaper copy, media coverage, public information
brochures, or other form sufficient to demonstrate to Bonneville the actual
implementation of a load curtailment program. If Bonneville determines on the
basis of such documentation that the Purchaser has implemented a load
curtailment program, such program shall be reflected in the Purchaser's
billing for each month such program is in effect in the following manner:
(1) If the Purchaser implemenfs a load curtailment program to
support its Assured Energy Capability, the Purchaser shall submit to
Bonneville as soon as possible following the end of each such month:
(A) its Actual Firm Energy Load for such month; (B) detail on any
separately identifiable s.ignificant changes in the Purchaser's Actual Firm
Energy Load by which it is appropriate to adjust its Actual Firm Energy
73 Sec. 17
Load for such month pursuant to paragraph (2)(A) below; and (C) detail
sufficient to verify the amount of each load curtailment.
(2) If the Purchaser implements a load curtailment program to
support its Assured Energy Capability and such program is implemented by
means other than provided for in paragraph (4) below, the PurcHaser's
Estimated firm Energy Load for each month in which a load curtailment
program is in effect shall be adjusted in the following manner:
(A) The Purchaser's Estimated Firm Energy Load for all months
pertinent to computation pursuant to this paragraph (2) shall be
adjusted to reflect any separately identifiable significant changes
in the Purchaser's Actual Firm Energy Load which were not a result of
the Purchaser's load curtailment program.
(8) The Purchaser's Estimated Firm Energy Load, a�ter
adjustment pursuant to s.ubparagraph (A) abov.e,,shall be further
adjusted by deducting the amount of any load curtailment in the
current month pursuant to paragraph (4) below from such adjusted
Estimated Firm Energy Load for all months pertinent to computation
pursuant to this paragraph (2). The amount deducted shall include
any portion offered to and purchased by Bonneville.
(C) A further adjustment to Estimated Firm Energy Load for each
month in which a load curtailment program is in effect shall be made
by multiplying the Estimated firm Energy Load for such month by the
average of the ratios of the Purchaser's Actual Firm Energy Load to
Estimated Firm Energy Load for the three most recent, but not
necessarily consecutive, months in which no load curtailment program
was in effect. Computations pursuant to this subparagraph (C) shall
74 Sec. 17
0
use Estimated Firm Energy Loads after adjustment pursuant to
subparagraphs (A) and (B) above.
(3) If the Purchaser implements a load curtailment program to
support its Assured Peak Capability and such program is implemented by
means other than provided in paragraph (4) below, the amount of any load
curtailment resulting from such program shall be determined by a
reasonable method agreed to by Bonneville and the Purchaser prior to the
implementation of such program.
(4) If the Purchaser implements load curtailment measures with
specific Consumers or wholesale purchasers which result in determinable
reductions in its obligations to supply peak or energy, the Purchaser
shall provide a method for documenti-ng the amount of any load curtailment
resulting from such arrangements. Such method shall be agreed upon by
Bonneville, the Purchaser; and the Consumer or wholesale purchaser prior
to the implementation of such measures. If the Purchaser implements such
measures it: (A) shall offer Bonneville the opportunity to purchase any.
amount of such load curtailment which exceeds the Purchaser's estimate of
the amount of the Purchaser's Assured Capability which the Purchaser's
Firm Resources are unable to produce; and (B) may offer Bonneville the
opportunity to purchase an additional portion of such load curtailment
specified by the Purchaser. The Purchaser shall offer such opportunity to
purchase and Bonneville shall accept or reject such offer prior to each
month such program is in effect. If Bonneville accepts such offer, it
shall pay the Purchaser an amount equal to the Purchaser's payment to the
Consumer or wholesale purchaser for such month multiplied by the
percentage of such arrangement offered to and accepted by Bonneville.
75 Sec. 17
(5) The amount of the Purchaser's firm load curtailment to support
the Purchaser's Assured Energy Capability which is attrib�table to such
load curtailment program shall be deemed to be the sum of: (A) the
product of (i) the amount, if any, by which the Purchaser's Estimated Firm
Energy Load for such month, after adjustment pursuant to paragraph (2)
above, exceeds the Purchaser's Actual Firm Energy Load for such month, and
(ii) a fraction the numerator of which,is the amount by which the
Purchaser's Actual Firm Energy Load for such month exceeds its Measured
Energy for such month and the denominator of which is the Purchaser's
Actual Firm Energy Load for such month; and (B) the amount, if any, of
load curtailment pursuant to paragraph (4) above less the portion, if anq,
offered to and purchased by Bonneville.
(6) The amount of the Purchaser's firm load curtailment to support
the Purchaser's Assured Peak Capability which is attributable to such load
curtailment program shall be deemed to be the sum of: (A) the amount, if
any, of load curtailment pursuant to paragraph (3) above, and (B) the
amount, if any, of load curtailment pursuant to paragraph (4) above less
the portion, if any, offered to and purchased by Bonneville.
(7) For the purpose of determining the Purchaser's Computed Average
Energy Requirement or Computed Peak Requirement during any month in which
the Purchaser has implemented a load curtailment program, the Purchaser's
Actual firm Energy Load and Actual Firm Peak Load for such month shall be
increased by the amount of load curtailment attributable to such program
as determined pursuant to paragraph (5) and paragraph (6), above,
respectively.
(f) The Purchaser's Computed Average Energy Requirement in each month of
the Operating Year shall be the amount, if any, by which the Purchaser's
IZj
Sec. 17
a
Actual Firm Energy Load for such month after adjustment, if any, pursuant to
subsection (e) above exceeds the Purchaser's Assured Energy Capability for
such month after adjustment, if any, pursuant to subsection (d) above, and the
Purchaser's Computed Peak Requirement in each month of the Operating Year
shall be the amount, if any, by which the Purchaser's Actual Firm Peak Load
for such month after adjustment, if any, pursuant to subsection (e) above
exceeds the Purchaser's Assured Peak Capability for such month.
(g) Unless Bonneville's obligat:�n to make Firm Power available is
limited under the terms of section 7 above, Bonneville shall, subject to the
conditions in the General Contract Provisions Exhibit, make available to the
Purchaser hourly amounts of power as requested by the Purchaser up to the
amounts specified in paragraphs (1), (2), and (3) below. If the Purchaser
operaies automatic generation control equipment and is thereby able to
schedule amounts of power to be interchanged with Bonneville, Bonneville shall
schedule such amounts to the Purchaser in accordance with the provisions of
section 18. If the Purchaser does not operate automatic generation control
equipment, Bonneville shall deliver the amounts which the Purchaser takes from
Bonneville at the Purchaser's Points of Delivery, and the Purchaser shall
prepare a tabulation pursuant to section 17(h) showing the amount of Firm
Power taken from Bonneville under this contract.
(1) During Heavy Load Hours: the larger of the Purchaser's Computed
Peak Requirement or its Computed Average Energy Requirement; provided,
however that 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 Requirem?nt.
Bonneville shall not so limit the amounts of power it makes available
Sec. 17
unless: (A) Bonneville has informed the Purchaser's representative by the
time specified in the Power Scheduling Provisions Exhibit that Bonneville
will make such limitation; (B) Bonneville has determined that such
limitation is reasonably necessary to enable Bonneville to meet its firm
obligations and its other loads in the Pacific Northwest; and
(C) 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. The hourly amounts of power
Bonneville is obligated to make available pursuant to this paragraph (1)
shall be termed Computed Maximum Requirements.
Bonneville shall consult with the Purchaser and other Customers
having similar contracts before increasing its firm obligations to deliver
capacity to entities outside the Pacific Northwest if such increased
obligations would tend to increase the frequency with which Bonneville
would invoke the limit provided for in this paragraph (1).
(2) During Light Load Hours: the product of the Purchaser's
Computed Average Energy Requirement and a percentage sufficiently in
excess of 100 percent to permit the Purchaser to request during Light Load
Hours all of the energy to which it has a right during the month and which
it did not request or receive during Heavy load Hours during such month,
as limited by the percentage determined pursuant to the Power Scheduling
Procedures Exhibit.
(3) During each month: the Purchaser's Computed Energy Maximum.
(h) If the Purchaser has been designated to purchase on the basis of
Computed Requirements but does not operate automatic generation control
equipment, such Purchaser shall prepare and submit to Bonneville within ten
Sec. 17
days of the last day of each month a preliminary tabulation assigning.the net
hourly amounts of power taken from Bonneville during such month to classes of
power received from or delivered to Bonneville on such hour pursuant to
contracts between Bonneville and the Purchaser or to a type of power which the
Purchaser acquired from sources other than Bonneville which Bonneville
delivered to the Purchaser during such hour. The Purchaser shall submit a
final tabulation of such amounts within the later of 30 days of the last day
of such month or ten days of the dat� on which all final metered data which
the Purchaser needs to determine its load are available.
(i) 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 July 1. Information so obtained will be used by
Bonneville in its operational planning. Information submitted pursuant to
this subsection (i) shall be as accurate as possible, but shall not be binding
on the Purchaser.
(j) (1) Upon request of the Purchaser, Bonneville shall use its best
efforts to acquire on behalf of the Purchaser replacement power in amounts
up to 50 percent of the amount specified in the Purchaser's Firm Resources
Exhibit for a resource of the type specified in subsection (2) below,
under the following conditions:
(A) The date of commercial operation of such resource is
delayed due to uncontrollable events by at least three months from
the date of resource addition specified in the Purchaser's Firm
Resources Exhibit;
(B) The Purchaser is unable to remove such Firm Resource to the
extent of the delay according to the provisions of section 12;
79
Sec. 17
(C) Bonneville has sufficient time to include any excess cost
of such acquisition not paid by the Purchaser pursuant to this
subsection (j) in its wholesale power rates for the Operating Year
for which such replacement has been requested.
Such replacement acquisition shall be for the period beginning
3 months after the resource addition date specified in the Purchaser's
Firm Resources Exhibit and ending either 21 months later, or on the date
of commercial operation, whichever is earlier.
(2) This subsection (j) shall be applicable for a delayed Firm
Resource which meets the following conditions:
(A) The firm resource is a renewable or cogeneration resource,
and;
(B) The delayed portion of such resource has not been included
as.a 5(b)(1)(A) resource in the Purchaser's Firm Resources Exhibit or
in the Firm Resources Exhibit of any other Customer with a similar
power sales agreement.
(3) If the Purchaser operates automatic generation control equipment
and is thereby able to schedule amounts of power to be interchanged with
Bonneville, Bonneville shall schedule the hourly amounts of power
Bonneville acquires on behalf of the Purchaser pursuant to paragraph (1)
above to the Purchaser in accordance with the provisions of section 18.
If the Purchaser does not operate automatic generation control equipment,
Bonneville shall deliver such hourly amounts to the Purchaser at the
Purchaser's Points of Delivery, and the Purchaser shall include such
amounts in the tabulation it prepares pursuant to section 17(h).
Sec. 17
'-m�
18. Power Scheduling.
(a) All schedules between Bonneville and the Purchaser shall.be submitted
according to the provisions of this section and of the Power Scheduling
Procedures Exhibit, as follows:
(1) All schedules of Firm Power to be made available pursuant to
section 17 of this contract shall be subject to the provisions of the
Power Scheduling Procedures Exhibit.
(2) Al1 schedules of power ��Je available under other agreements
which refer to the Purchaser's power sales contract for scheduling
provisions or power to be made available under this contract other than
Firm Power to be made available pursuant to section 17 shall be subject to
the times for submissions set out in section 1 of the Power Scheduling
Procedures Exhibit.
(b) Bonneville and the Purchaser shall endeavor to avoid requesting
changes in schedules hereunder. The parties shall hold deviations from
schedules to a minimum and shall correct therefor as promptly as possible
under conditions approximately equivalent to the conditions under which the
deviation occurred. The amounts scheduled for delivery shall be deemed
delivered.
(c) The Power Scheduling Procedures Exhibit may be revised from time to
time as provided in this subsection. Revised exhibits shall be effective upon
written agreement by Bonneville and at least 80 percent of the number of
Customers operating automatic generation control equipment and designated to
purchase on a Computed Requirements basis at the time of such revision. The
Power Scheduling Procedures Exhibit shall be revised only in such a manner as
to better effectuate the fol.lowing principles:
81 Sec. 18
(1) To achieve an operation of all the power generating resources of
Bonneville, the Purchaser and oth.er Customers which meets the total loads
of such parties through the use of all such resources in the most
efficient manner possible, as if all of such resources were operated as a
single system. Assessment of most efficient operation shall include, but
not be limited to, providing the required generation at the least economic
and environmental costs, in the long run. To achieve this goal, the Power
Scheduling Procedures Exhibit may under abnormal conditions place certain
requirements on Bonneville or the Purchaser to change preschedules for the
benefit of the other, but not without reasonable compensation for
additional costs necessarily incurred by the party responding to such
requirements.
(2) To provide both Bonneville and the Purchaser with a workable
procedure which enables them to accomplish all of the complex tasks of
arranging power sales, power purchases and power generation in an
efficient and timely fashion.
(d) Bonneville shall separately schedule for delivery to the Purchaser
during each hour in each month:
(1) The electric power and energy that the Purchaser requests
Bonneville make available pursuant to section 17.
(2) The nonfirm energy and emergency and breakdown relief power
requested for such hour by the Purchaser which Bonneville determines can
be made available pursuant to the Nonfirm Deliveries section and the
Emergency or Breakdown Relief section of the General Contract Provisions
Exhibit.
82 Sec..18
0
(3) The electric power and energy which Bonneville is obligated to
make available to the Purchaser for such hour pursuant to agreements which
refer to this contract for purposes of scheduling.
(e) The Purchaser shall separately schedule for delivery to Bonneville
during each hour in each month:
(1) The energy which the Purchaser is obligated to return to
Bonneville pursuant to the Relief from Overrun Exhibit.
(2) The nonfirm energy and _mergency and breakdown relief power
requested for such hour by Bonneville which the Purchaser determines can
be made available pursuant to the Nonfirm Deliveries section and the
Emergency or Breakdown Relief section of the 6eneral Contract Provisions
Exhibit.
(3) The electric power and energy which the Purchaser is obligated
to make available to Bonneville for such hour pursuant to agreements which
refer to this contract for purposes of scheduling.
19
(a)
Computed Requirements Payment for Power Sold.
The determination of amounts due to Bonneville by the Purchaser and
amounts due to the Purchaser by Bonneville shall be made according to the
provisions of this section, the Wholesale Power Rate Schedules and General
Rate Schedule Provisions Exhibit, the General Contract Provisions Exhibit, the
Relief from Overrun Exhibit, and the Service Charges Exhibit, as such exhibits
may be amended or replaced. The Wholesale Power Rate Schedules and the
General Rate Schedule Provisions Exhibit shall be changed in accordance with
the provisions of the Equitable Adjustment of Rates section of the General
Contract Provisions Exhibit. The Relief from Overrun Exhibit shall be changed
upon written agreement of Bonneville and at least 80 percent of the Purchasers
to whom it is then applicable. Section I of the Service Charges Exhibit shall
m
Sec. 19
apply only to charges assessed pursuant to the Relief from Overrun Exhibit.
Section I of the Service Charges Exhibit shall be revised upon determination
by Bonneville that any charge contained therein must be changed to properly
compensate Bonneville for reasonable costs incurred by Bonneville to provide
such services. Bonneville shal'1 provide the Purchaser and other Customers
with a reasonable opportunity.of not less than 90 days to comment prior to the
effective date of such proposed revised charges. Revised charges shall take
effect on the date specified by Bonneville in its written notice to the
Purchaser of its intention to revise these charges. The charges set forth in
section I of the Service Charges Exhibit shall not be increased more
frequently than once a year.
(b) The Purchaser shall pay Bonneville each Billing Month for all amounts
described in the following paragraphs in accordance with the terms of the rate
schedules specified below, the payment provisions of the General Contract
Provisions Exhibit and of the Wholesale Power Rate Schedules and General Rate
Schedule Provisions Exhibit.
(1) For Firm Power delivered hereunder in accordance with the
following:
(A) If the Purchaser is a public body, cooperative or Federal
Agency, payment shall be at the rate specified in the Priority Firm
Power Rate Schedule for the Purchaser's Measured Demand and Measured
Energy; provided, however, that, after determining the billing
factors for the Firm Power delivered hereunder, the New Resource Firm
Power Rate shall be substituted for the Priority Firm Power Rate
Schedule for that portion of the Purchaser's billing demands, if any,
identified pursuant to section 8 for service to New Large Single
Loads. If the Purchaser is an investor-owned utility, payment shall
84 Sec. 19
be at the rate specified in the New Resources Firm Power Rate
Schedule for the Purchaser's Measured Demand and Measured Energy.
(B) If the Purchaser purchases on the basis of Actual Computed
Requirements, and if the Purchaser would, due to load estimating
errors, otherwise be billed for an unauthorized increase in
accordance with the provisions of the Priority Firm Power Rate
Schedule or New Resource Firm Power Rate Schedule, the procedures set
forth in the Relief from Over �n Exhibit shall, except as provided in
section 16(a), be applied for the purpose of reducing or possibly
eliminating amounts due for unauthorized increases before amounts due
are computed pursuant to paragraph (i)(A) above.
(C) If a portion of a Purchaser's Measured Demand for a Billing
Month is being billed at the Reserve Power Rate pursuant to the
Relief from Overrun Exhibit and if the billing demand for such month
as specified in the applicable firm power rate is determined by a
billing factor established in a previous month ("ratcheted demand"),
then such billing demand shall be reduced by the lesser of the
portion of the Measured Demand billed at the Reserve Power Rate or
the excess of the Measured Demand over the Computed Maximum
Requirement which applies to the same hour as such Measured Demand.
(D) If the Purchaser adds to its Firm Resources in the manner
specified in section 12, all billing factors which are based on
previous billing periods ("ratcheted demands") shall be
correspondingly decreased effective on the date of resource addition
as shown in the Firm Resources Exhibit in the amount by which the
Purchaser's Assured Capability is increased.
85 Sec. 19
(2) For any nonfirm energy delivered by Bonneville to the Purchaser
hereunder at the rate specified in the Wholesale Nonfirm Energy Rate
Schedule.
(3) For any Measured Demand converted to reserve power pursuant to
the Relief from Overrun Exhibit at the rate specified in the Reserve Power
Rate Schedule.
(4) For any service charges assessed pursuant to the Relief from
Overrun Exhibit at the applicable charge specified in Section I of the
Service Charges Exhibit.
(5) for any service charge assessed pursuant to section 13(d) at the
applicable charge or charges, if any, specified in Section II of the
Service Charges Exhibit.
(6) For any emergency and breakdown relief power delivered pursuant
to the Emergency or Breakdown Relief section of the General Contract
Provisions Exhibit at the rate agreed upon in advance of del by
representatives of Bonneville and the Purchaser. Bonneville shall furnish
a statement to the Purchaser showing such rate for the energy or power so
delivered.
(7) for replacement power delivered to the Purchaser by Bonneville
pursuant to section 17(j) at the rate specified in the New Resource Firm
Power Rate Schedule.
(c) Bonneville shall pay the Purchaser each Billing Month for all amounts
described in the following paragraphs.by net billing, if possible, pursuant to
the Net Billing section of the General Contract Provisions Exhibit.
(1) For any nonfirm energy delivered by the Purchaser to Bonneville
pursuant to the Nonfirm Deliveries section of the General Contract
Provisions Exhibit, or any emergency and breakdown relief power delivered
86
Sec. 19
by the Purchaser to Bonneville pursuant to the Emergency or Breakdown
Relief section of the General Contract Provisions Exhibit at the rate
agreed upon in advance of delivery by representatives of the Purchaser and
Bonneville. The Purchaser shall furnish a statement to Bonneville showing
such rate for the energy or power so delivered.
(2) For any amounts due as payment for load curtailments as
determined pursuant to section 17(e)(4).
20. Miscellaneous
(a) Any determinations, estimates, consents, agreements or approvals
under this agreement by either party shall be reasonable.
(b) Except as otherwise expressly provided to the contrary in this
contract with regard to specific exhibits, the provisions of this contract may
be amended only by the mutual written agreement of the hereto
subsequent to the date of this contract. This subsection (b) shall not
prevent oral waiver of performance on a temporary basis by either party or
temporary, informal arrangements between the parties in response to
operational conditions on the system of either party not specifically provided
for in this contract.
(c) If Bonneville offers to enter into a written amendment of any other
similar long-term power sales contract other than informal arrangements
between the parties referred to in subsection (b) above, Bonneville shall
offer to the Purchaser a corresponding amendment of this contract, to the
extent such a corresponding amendment would be applicable to the Purchaser
under this contract. Bonneville shall advise and use reasonable efforts to
consult with the Purchaser during the development or consideration of any
offer to enter into such amendments. This contract is offered pursuant to
sections 5(b) and 5(g), including, but not limted to section 5(g)(7), of
Sec. 20
P.L. 96-501, and amendments hereto shall not be construed to represent the
offer of a new contract.
21. Termination of Offer The Purchaser shall have one year from the
date it receives a signed copy of this contract from Bonneville to accept this
contract. Bonneville's offer to make Firm Power available to the Purchaser
under the terms of this contract shall expire on such date unless Bonneville
has received a signed contract from the Purchaser by such date.
IN WITNESS WHEREOF, the parties hereto have executed this agreement in
88
Sec. 21
several counterparts.
ATTEST:
By /s/ Nan E. Franklin
T1t12 City Recorder
Date 12- 18-81
(WP-PCI-0025c)
(8/25/81)
UIdITED STATES OF MiERICA
Department of Energy
By /s/ Peter T. Sohnson
onnevi e oY�er fi17f115 ra OI'
CITY OF ASHLAND
By /s/ L. Gordon Medaris
Title Mayor
Date 12-18-81
r
Date received by Bonneville:� '--h. =.1
Effective date:-. +_r. I S. f�-`; I I
EXHIBIT A
WHOLESALE POWER RATE SCHEDULES AND GENERAL RATE SCHEDULE PROVISIONS
SCHEDULE PF-1 PRIORITY FIRM POWER RATE
SECTION 1. Availability This schedule is available for the purchase
of firm power to be used within the Pacific Northwest for resale or for
direct consumption by public bodies, cooperatives, Federal agencies, and
investor-owned utilities participating in the exchange under Section 5(c) of
the Pacific Northwest Electric Power Planning and Conservation Act (Regional
Act). This schedule supersedes Schedule EC-8 which went into effect on an
interim basis on December 20, 1979.
SECTION 2. Rate:
a. Demand Charge:
(1) for the billing months December through May, Monday
through Saturday, 7 a.m. through 10 p.m.: $2.80 per kilowatt of billing
demand.
(2) for the billing months June through November, Monday
through Saturday, 7 a.m. through 10 p.m.: $1.44 per kilowatt of billing
demand.
(3) all other hours: No demand charge.
b. Energy Charge:
(1) for the billing months September through March:
7.4 mills per kilowatthour of billing energy.
(2) for the billing months April through August: 6.9 mills
per kilowatthour of billing energy.
SECTION 3. Billinq Factors: The factors to be used in determining the
billing for power purchased under this rate schedule are as follows:
a. For any purchaser not designated to purchase under
subsection 3(b), 3(c), or 3(d):
(1) the contract demand as specified in the contract;
(2) the measured demand for the billing month adjusted for
power factor;
(3) the measured energy for the billing month.
A-1
EXHIBIT A
b. Designation of a purchaser to purchase on a computed demand
basis will be according to this section unless the terms of an existing
contract executed after December 5, 1980 provide otherwise. For any
purchaser designated by BPA to purchase on a computed demand basis because
of such purchaser's potential ability either to sell generation from its
resources in such a manner as to increase BPA's obligation to deliver firm
power to such purchaser in an.amount in excess of BPA's obligation prior to
such sale, or to redistribute the generation from its resources over time in
such a manner as to cause losses of power or revenue on the Federal System;
provided, however, that when a purchaser operates two or more separate
systems, only those systems designated by BPA will be covered by this
subsection:
(1) the peak computed demand for the billing month;
(2) the average energy computed demand for the billing
month;
(3) the lesser of the peak computed demand for the billing
month or 60 percent of the highest peak computed demand during the previous
11 billing months;
(4) the measured demand for the billing month adjusted for
power factor;
(5) the measured energy for the billing month;
(6) the contract demand as specified in an agreement
between a purchaser and BPA for a specified period of time.
c. For any purchaser contractually limited to an allocation of
capacity and/or energy as determined by BPA pursuant to the terms of a
purchaser's power sales contract:
(1) the allocated demand for the billing month, as
specified in the contract;
(2) the measured demand for the billing month adjusted for
power factor;
(3) the allocated energy for the billing month, as
specified in the contract;
(4) the measured energy for the billing month.
d. For any purchaser participating in the exchange under
Section 5(c) of the Pacific Northwest Electric Power Planning and
Co�servation Act:
A-2
EXHIBIT A
(1) sixty percent of the energy associated with the
utility's residential load as specified in the contract for each billing
period;
(2) the demand calculated by applying the load factor,
determined as specified in the contract, to the energy in 3(d)(1) for each
billing period.
SECTION 4. Determination of Billing Demand and Billing Energy:
a. For a purchaser governed by subsection 3(a):
(1) the billing demand for the month shall be factor
3(a)(1) or 3(a)(2), as specified in the purchaser's power sales contract,
exc,ept that at such time as BPA determines that the limitation in Section
3(c) is necessary, the billing demand for the month shall be factor 3(c)(2),
provided, however, that billing demand factor 3(c)(2), before adjustment for
power factor, shall not exceed factor 3(c)(1).
(2) the billing energy for the month shall be factor
3(a)(3) except that at such 'time as BPA determines that the limitation in
Section 3(c) is necessary, the billing energy shall be factor 3(c)(4),
provided, however, that factor 3(c)(4) shall not exceed factor 3(c)(3).
b: For a purchaser governed by subsection 3(b):
(1) the billing demand for the month shall be the largest
of factors 3(b)(3), and 3(b)(4), or 3(b)(6) if applicable. Factor 3b(4),
before adjustment for power factor, shall not exceed the largest of factors
3(b)(1), 3(b)(2), or 3(b)(6) if applicable, except that at such time as BPA
determines that the limitation in Section 3(c) is necessary, the billing
demand for the month shall be factor 3(c)(2), provided, however, that
billing demand factor 3(c)(2), before adjustment for power factor, shall not
exceed factor 3(c)(1).
(2) the billing energy for the month shall be factor
3(b)(5) except that at such time as BPA determines that the limitation in
Section 3(c) is necessary, the billing energy shall be factor 3(c)(4),
provided, however, that factor 3(c)(4) shall not exceed factor 3(c)(3).
Factor 3(b)(5) shall not exceed factor 3(b)(2) times the number of hours
during such month.
c. For purchaser governed by subsection 3(d):
(1) The billing demand for the month shall be factor
3(d)(2).
(2) The billing energy for the month shall be factor
3(d)(1).
A-3
EXHIBIT A
SECTION 5. Adjustments:
a. Power Factor The adjustment for power factor, when
specified in this rate schedule or in the power sales contract, may be made
by increasing the measured demand for each month by 1 percent for each
1 percent or major fraction thereof by which.the average lagging,power
factor, or average leading power factor, at which energy is supplied during
such month is less than 95 percent, such average power factor to be computed
to the nearest whole percent from the formula given in Section 9.1 of the
General Rate Schedule Provisions.
The adjustment for power factor may be waived in whole or in part
by BPA. Unless specifically otherwise agreed, BPA may, if necessary to
maintain acceptable operating conditions on the Federal System, restrict
deliveries of power to a purchaser at a point of delivery or for a system at
any time that the average power factor for all classes of power delivered to
a purchaser at such point of delivery or for such system is below 75 percent
lagging or 75 percent leading.
b. At-Site Power At-site power purchased for consumption by
a purchaser shall be used within 15 miles of the powerplant specified in the
power sales contract. At least 90 percent of any at-site power purchased
for resale shall be used within 15 miles of the specified powerplant.
The monthly demand charge for at-site firm power will be the
monthly demand charge for priority firm power reduced by $0.257 per kilowatt
of billing demand.
At-site priority firm power is made available only for those
utility customers purchasing at-site firm power under existing contracts.
At-site priority firm power may be purchased by such utility customers under
new contracts only until a date certain specified in such new contracts. If
deliveries are made from an interconnection.with the Federal System other
than at one of such designated points, the purchaser shall pay an amount
adequate to cover the annual cost of the facilities which would have been
required to deliver such power to such point from either the generator bus
at the generating plant, or from the adjacent point as designated by BPA.
This use-of-facilities charge shall be in addition to the charge determined
by the application of Section 2 of the Rate Schedule as reduced by the
provisions of this subsection.
c. Low-Density Discount: A predetermined discount will be
applied each month of a calendar year to the charges for power purchased
under contracts between BPA and its customers. The amount of such discount
is based on the ratio of the total annual energy requirements of the
purchaser's electric operations during the preceding calendar year to the
purchaser's depreciated investment in electric plant in service (excluding
generating plant) at the end of such year, or the purchaser's ratio'of
residential consumers per mile of line. This calculation bf such ratio will
be made using the customer's entire system. Provided that the purchaser's
A-4
EXHIBIT A
ratio of residential consumers per mile of line does not exceed ten, this
discount shall be:
(1) Seven percent if such ratio is less than
15 kilowatthours per dollar of net investment or if the number of consumers
per mile of line is two or less.
(2) Five percent if such ratio is equal to or greater than
15 and less than 25 kilowatthours per dollar of net investment, or if the
number of consumers per mile of line is four or less.
(3) Three percent i. such ratio is equal to or greater than
25 and less than 35 kilowatthours per dollar of net investment, or if the
number of consumers per mile of line is six or less.
SECTION 6. Unauthorized Increase: That portion of (a) any 60-minute
clock-hour integrated demand or scheduled demand (the total amount of power
scheduled to the purchaser from BPA) that cannot be assigned to a class of
power which BPA delivers on such hour pursuant to contracts between BPA and
the purchaser or to a type of power which the purchaser acquires from
sources other than BPA which BPA delivers during such hour, or (b) the total
of a purchaser's 60-minute clock-hour integrated or scheduled demands during
a billing month which cannot be assigned to a class of power which BPA
delivers during such month pursuant to contracts between BPA and the
purchaser or to a type of power which the purchaser acquires from sources
other than BPA which BPA delivers during such month, may be considered an
unauthorized increase. Each 60-minute clock-hour integrated or scheduled
demand shall be considered separately in determining the amount which may be
considered an unauthorized increase pursuant to (a) and the total of such
amounts which are in fact considered unauthorized increases shall be
excluded from the total of the integrated or scheduled demands for such
month in determining the amount which may be considered an unauthorized
increase under (b).
The charge for an unauthorized increase shall be $0.13 per
kilowatthour.
SECTION 7. 6eneral Provisions: Sales of power under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
General Rate Schedule Provisions.
SCHEDULE IP-1 WHOLESALE POWER RATE FOR INDUSTRIAL FIRM POWER
SECTION 1. Availability: This schedule is available for the
purchase by existing direct-service industrial customers of industrial firm
power and/or authorized increase on a contract demand basis and for
auxiliary power requested by the purchaser and made available an auxillary
demand by BPA on an intermittent basis. This rate schedule supersedes
A-5
EXHIBIT A
Schedule IF-2 which went into effect on an interim basis on December 20,
1979.
SECTION 2. Rate:
a. Demand Charge:
(1) for the billing months December through May, Monday
through Saturday, 7 a.m. through 10 p.m.: $2.80 per kilowatt of billing
demand.
�2)
through Saturday, 7
demand.
(3)
for the billing months June through November, Monday
a.m. through 10 p.m.: 51.44 per kilowatt of billing
all other hours: No demand charge.
b. Energy Charge:
The greater of:
(1) for the billing months September through March: 7.4
mills per kilowatthour of billing energy; for the billing months April
through August:. 6.9 mills per kilowatthour of.billing, or_
or (2) for the billing months September through March:
[1.7 +(X/2465)] mills per kilowatthour of billing energy; for the billing
months April through August: [1.6 +(X/2480)] mills per kilowatthour of
billing energy.
Where X= the actual month's cost in thousands of dollars
incurred by the Administrator pursuant to Section 5(c) of the Pacific
Northwest Electric Power Planning and Conservation Act.
SECTION 3. Billing Factors: The factors to be used in determining
the billing for power purchased under this rate schedule are as follows:
a. operating demand;
b. curtailed demand;
c. restricted demand;
d. measured energy.
SECTION 4. Determination of Billing Demand and Billing Energy: The
billing demands for industrial firm power and authorized increase,
respectively, and for auxiliary power requested by the purchaser and made
available by BPA as an auxiliary demand on an intermittent basis will be the
lowest of the respective operating demand, curtailed demand, or restricted
demand after each such demand is adjusted for power factor. The billing
energy associated with each of the respective billing demands will be the
EXHIBIT A
measured energy distributed proportionately among the respective demands for
each hour each such demand is applicable during the billing month.
SECTTON 5. Adjustments:
a. Value of Reserves: A monthly billing credit for the value
of the reserves provided by purchasers of industrial firm power shall be:
(1) $0.33 per kilowatt of billing demand.
(2) 2.3 mills per kilowatthour of billing energy.
The adjustment shall be applied to the same billing factors
which are used to determine the billing for power purchased.under this rate
schedule.
b. Power Factor: The adjustment for power factor, when
specified in this rate schedule or in the power sales contract, may be made
by increasing the appropriate demand (operating, curtailed, or restricted)
for eaeh month by 1 percent for 1 percent or major fraction thereof by which
the average lagging power factor, or average leading power factor, at which
energy is supplied during such month is less than 95 percent, such average
power factor to be computed to the nearest whole percent from the formula
given in Section 9.1 of the General Rate Schedule Provisions.
The adjustment for power factor may be waived in whole or in part
by BPA. Unless specifically otherwise agreed, BPA may, if necessary to
maintain acceptable operating conditions on the Federal System, restrict
deliveries of power to a purchaser at a point of or for a system at
any time that the average power factor for all classes or power delivered to
a purchaser at such point of delivery or for such system is below 75 percent
lagging or 75 percent leading.
c. At-Site Power: At-site industrial firm power shall be used
within 15 miles of the powerplant.
The monthly demand charge for at-site industrial firm power wi11
be the monthly demand charge for industrial firm power reduced by $0.257 per
kilowatt of billing demand.
At-site industrial firm power is made available only for those
industrial customers purchasing at-site industrial firm power under existing
contracts. At-site industrial firm power may be purchased by such
industrial customers under new contracts only until a date certain specified
in such new contracts. If deliveries are made from an interconnection with
the Federal System other than at one of such designated points, the
purchaser shall pay an amount adequate to cover the annual cost of the
facilities which would have been required to deliver such power to such
point from either the generator bus at the generating plant, or from the
adjacent point as designated by BPA. The use of facilities charge shall be
A-7
EXHIBIT A
in addition to the charge determined by application of Section 2 of the Rate
Schedule as reduced by the provisions of this subsection.
SECTION 6. Unauthorized Increase: Any amount by which any 60-minute
clock-hour integrated demand exceeds that.sum of the billing demand for such
hour before adjustment for power factor, plus any applicable scheduled
demands which the purchaser acquires through other contracts for such hour
will be assessed a charge of $0.13 per kibowatthour.
SECTION 7. Special Conditions Advance of Energy: BPA may elect to
advance energy under terms.and conditions of the purchaser's power sale
contract.
SECTION 8. General Provisions: Sales of power under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regibnal Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
applicable General Rate Schedule Provisions.
SCHEDULE MP-1 WHOLESALE POWER RATE FOR MODIFIED FIRM POWER.
SECTION 1. Availability: This schedule is available for the
purchase by existing direct-service industrial customers of,modified firm
power on a contract demand basis for direct consumption by existing
direct-service industrial customers until existing contracts'terminate.
This schedule is also available for the purchase of authorized increase
power on a contract demand basis. This rate schedule supersedes Schedule
MF-2 which went into effect on an interim basis on December 20, 1979.
SECTION 2. Rate:
a. Demand Charge:
(1) for the billing months'December through May, Monday
through Saturday, 7 a.m. through 10 p.m.: $2.80 per kilowatt of billing
demand.
(2) for the billing months June through November, Monday
through Saturday, 7 a.m. through 10 p.m.: $1.44 per kilowatt of billing
demand.
(3) all other hours
No demand charge.
b. Energy Charge:
The greater of:
(1) for the billing months September through March:
7.4 mills per kilowatthour of billing energy; for the billing months April
through August: 6.9 mills per�kilowatthour of billing, or
�'�3'-
EXHIBIT A
or (2) for the billing mon.ths September through March:
[1.7 +(X/2465)] mills per kilowatthour of billing energy; for the billing
months April through August: [1.6 +(X/2480)� mills per kilowatthour of
billing energy.
Whsre X= the actual month's cost in thousands of dollars
incurred by the Administrator pursuant to Section 5(c) of the Pacific
Northwest Electric Power Planning and Conservation Act.
SECTION 3. Billing Factors: The factors to be used in determining
the billing for power purchases under this rate schedule are as follows:
a. contract demand;
b. curtailed demand;
c. restricted demand;
d. measured energy.
SECTION 4. Determination of Billing Demand and Billing Energy: The
billing demand for modified firm power and authorized increase,
respectively, will be the lowest of the respective contract demand,
curtailed demand, or restricted demand after each such demand is adjusted
for power factor. The billing energy associated with each of the respective
bilTing demands will be the measured energy distributed proportionately
among the respective demands for each hour each such demand is applicable
during the billing month.
SECTION 5. Adjustments:
a. Power Factor The adjustment for power factor, when
specified in this rate schedule or power sales contract, may be made by
increasing the appropriate demand (contract, curtailed, or restricted) for
each month by 1 percent for each 1 percent or major fraction thereof by
which the average lagging power factor, or average leading power factor, at
which energy is supplied during such month is less than 95 percent, such
average power factor to be computed to the nearest whole percent from the
formula given in Section 9.1 of the General Rate Schedule Provisions.
The adjustment for power factor may be waived in whole or in part
by BPA. Unless specifically otherwise agreed, BPA may, if necessary to
maintain acceptable operating conditions on the Federal System, restrict
deliveries of power to a purchaser at a point of delivery or for a system at
any time that the average power factor for all classes of power delivered to
a purchaser at such point of delivery or for such system is below 75 percent
lagging or 75 percent leading.
b. At-Site Power At-site modified firm power shall be used
within 15 miles of the powerplant.
A-9
EXHIBIT A
The monthly demand charge for at-site modified firm power will be
the monthly demand charge for modified firm power reduced by $0.257 per
kilowatt of billing demand.
At-site modified firm power will be made available under existing
contracts, providing for at-site modi'fied firm power at a Federal
hydroelectric generating plant or at a point adjacent thereto, and at a
voltage, all as designated by BPA. If deliveries are made from an
interconnection with the Federal System other than at one of such designated
points, the purchaser shall pay an amount adequate .to cover the annual cost
of the facilities which would have been required to deliver such power to
such point from either the generator bus at the generating plant, or frcm
the adjacent point as designated by BPA. This use of facilities charge
shall be in addition to the charge determined by application of Section 2 of
the Rate Schedule as reduced by the provisions of this subsection.
SECTION 6. Unauthorized Increase: Any amounts by which any
60-minute clock-hour integrated demand exceeds the sum of the billing
for such hour (before adjustment for power factor) plus any applicable
scheduled demands which the purchaser acquires through other contracts
such hour will be assessed a charge of $0.13 per kilowatthour.
demand
for
SECTION 7. General Provisions: Sales of power under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
General Rate Schedule Provisions.
SCHEDULE CF-1 WHOLESALE FIRM CAPACITY RATE
SECTION 1. Availability: This schedule is available for the
purchase of firm capacity without energy on a contract demand basis for
supply during a contract year of 12 months,.or during a contract season of
5 months, June 1 through October 31. This schedule supersedes Schedule F-7
which went into effect on an interim basis on December 20, 1979.
SECTION 2. Rate:
a. Contract Year Service
contract demand.
$25.44 per kilowatt per year of
b. Contract Season Service
contract demand.
$11.76 per kilowatt per season of
c. The capacity rate specified in subsections a. and b. above
shall be increased by $0.029 per kilowattmonth of billing demand for each
hour that the purchaser's monthly demand duration exceeds nine (9) hours.
The purchaser's demand duration for the month shall be determined by
dividing the kilowatthours supplied under this rate schedule to a purchaser
on the day of maximum kilowatthour use between the hours of 7 a.m. and
A-10
EXHIBIT A
10 p.m., excluding Sundays, by the purchaser's contract demand effective for
such month. If, however, BPA does not require the delivery of peaking
replacement energy by the purchaser during certain periods, the additional
charge above will not be made for such periods.
SECTION 3. 'Billing Factors: The billing demand will be the contract
demand.
SECTION 4. Special Provision: Contracts for the purchase of firm
capacity under this schedule will include provisions for replacement by the
purchaser of energy accompanying the delivery of such capacity.
SECTION 5. General Provisions Sales of power under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
applicable General Rate Schedule Provisions.
SCHEDULE CE-1 EMERGENCY CAPACITY RATE.
SECTION 1. Availability: This schedule is available for purchase of
emergency capacity requested by a purchaser when BPA determines that an
emergency condition exists on the purchaser's system and it has capacity
available for such purpose. This schedule supersedes Schedule F-8.which
went into effect on an interim basis on December 20, 1979.
SECTION 2. Rate: $0.56 per kilowatt of demand per calendar week or
portion thereof. For deliveries over the Pacific Northwest
Southwest intertie, made available for the account of a purchaser at the
Oregon-California or the Oregon-Nevada border, the charge will be increased
by $0.22 per kilowatt per week. Bills will be rendered monthly.
SECTION 3. Billing Factors: The billing demand will be the maximum
amount requested by the purchaser and made available by BPA during a
calendar week, provided that if BPA is unable to meet subsequent requests by
a purchaser for delivery at the demand previously established during such
week, such billing demand for such week shall be the lower demand which BPA
is able to supply.
SECTION 4. Special Provision: Energy delivered with such capacity
shall be returned to BPA within 7 days of the date of delivery at times and
rates of delivery agreed to by the purchaser and BPA prior to.delivery. BPA
may agree to accept delay of return energy beyond 7 days if it so agrees
prior to the delivery of capacity.
SECTION 5. General Provisions Sales of power under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
General Rate Schedule Provisions.
A-11
EXHIBIT A
SCHEDULE NR-1 NEW RESOURCE FIRM POWER RATE.
SECTION 1. Availability: This schedule is available for the
purchase of firm power for resale or for direct consumption by purchasers
other than direct-service industrial purchasers who purchase power under
rate Schedules IP-1 or MP-1.
SECTION 2. Rate:
a. Demand Charoe:
(1) for the billing months December through May, Monday
through Saturday, 7 a.m. through 10 p.m.: $2.80 �er kilowatt of billing
demand.
(2) for the billing months June through November, Monday
through Saturday, 7 a.m. through 10 p.m.: �1.44 per kilowatt of billing
demand.
b. Energy Charge:
(1) for the billing months September through March:
30.8 mills per kilowatthour of billing energy.
(2) for the billing months April through August: 24.7 mills
per kilowatthour of billing energy.
SECTION 3. Billing Factors: The factors to be used in determining
the billing for power purchased under this rate schedule are as follows:
a. For any purchaser not designated to purchase under
subsection 3(b) or 3(c):
power factor;
(3) all other hours: No demand charge.
(1) the contract demand as specified in the contract;
(2) the measured demand for the billing month adjusted for
(3) the measured energy for the billing month.
b. Designation of a purchaser to purchase on a computed demand
basis will be according to this section unless the terms of an existing
contract executed after December 5, 1980 provide otherwise. For any
purchaser designated by BPA to purchase on a computed demand basis because
of such purchaser's potential ability either to sell generation from its
resources in such a manner as to increase BPA's obligation to deliver firm
power to such purchaser in an amount in excess of BPA's obligation prior to
such sale, or to redistribute the generation from its resources over time in
A-12
EXHIBIT A
such a manner as to cause losses of power or revenue on the Federal System;
provided, however, that when a purchaser operates two or more separate
systems, only those systems designated by BPA will be covered by this
subsection:
(1) the peak computed demand for the billing month;
(2) the average energy computed demand for the billing
month;
(3) the lesser of the oeak computed demand for the billing
month or 60 percent of the highest p �K computed demand during the previous
11 billing months;
(4) the measured demand for the billing month adjusted for
power factor;
(5) the measured energy for the billing month;
(6) the contract demand as specified in an agreement
between a purchaser and BPA for a specified period of time.
c. For any purchaser contractually limited to an allocation of
capacity and/or energy as determined by BPA pursuant to the terms of a
purchaser's power sales contract:
(1) the allocated demand for the billing month, as
specified in the contract;
(2) the measured demand for the billing month adjusted for
power factor;
(3) the allocated energy for the billing month, as
specified in the contract;
(4) the measured energy for the billing month.
SECTION 4. Determination of Billing Demand and Billing Energy:
a. For a purchaser governed by subsection 3(a):
(1) the billing demand for the month shall be factor
3(a)(i) or 3(a)(2), as specified in the purchaser's power sales contract,
except that at such time as BPA determines that the limitation in Section
3(c) is necessary, the billing demand for the month shall be factor 3(c)(2),
provided, however, that billing demand factor 3(c)(2), before adjustment for
power factor, shall not exceed factor 3(c)(1).
(2) the billing energy for the month shall be factor
3(a)(3) except that at such time as BPA determines that the limitation in
A-13
EXHIBIT A
Section 3(c) is necessary, the billing energy shall be factor 3(c)(4),
provided, however, that factor 3(c)(4) shall not exceed factor 3(c)(3).
b. For a purchaser governed by subsection 3b:
(1) the billing demand for the month shall be the largest
of factors 3(b)(9), and 3(b)(4), or 3(b)(6) if applicable. Factor 3(b)(4),
before adjustment for power factor, shall not exceed the largest of factors
3(b)(1), 3(b)(2), or 3(b)(6) if applicable, except that at such time as BPA
determines that the limitation in Section 3(c) is necessary, the billing
demand for the month shall be factor 3(c)(2), provided, however, that
billing demand factor 3(c)(2), before adjustment for power factor, shall not
exceed factor 3(c)(1).
(2) the billing energy for the month shall be
factor 3(b)(5) except that at such time as BPA determines that the
limitation in Section 3(c) is necessary, the billing energy shall be factor
3(c)(4), provided, however, that factor 3(c)(4) shall not exceed
factor 3(c)(3). Factor 3(b)(5) shall not exceed factor 3(b)(2) times the
number of hours during such month.
SECTION 5. Adjustments:
a.: Power Factor The adjustment for.power factor., when
specified in this rate schedule or in the power sales contract, may be made
by increasing the measured demand for each month by 1 percent for each
1 percent or major fraction thereof by which the average lagging power
factor, or average leading power factor, at which energy is supplied during
such month is less than 95 percent, such average power factor to be computed
to the nearest whole percent from the formula given in Section 9.1 of the
General Rate Schedule Provisions.
The adjustment for power factor may be waived in whole or in part
by BPA. Unless specifically otherwise agreed, BPA may, if necessary to
maintain acceptable operating conditions on the Federal System, restrict
deliveries of power to a purchaser at a point of delivery or for a system at
any time that the average power factor for all classes of power delivered to
a purchaser at such point of delivery or for such system is below 75 percent
lagging or 75 percent leading.
SECTION 6. Unauthorized Increase: That portion of (a) any 60-minute
clock-hour integrated demand or scheduled demand (the total amount of power
scheduled to the purchaser from BPA) that cannot be assigned to a class of
power which BPA delivers on such hour pursuant to contracts between BPA and
the purchaser or to a type of power which the purchaser acquires from
sources other than BPA which BPA delivers during such hour; or (b) the total
of a purchaser's 60-minute clock-hour integrated or scheduled demands during
a billing month which cannot be assigned to a class of power which BPA
delivers during such month pursuant to contracts between BPA and the
purchaser or to a type of power which the purchaser acquires from sources
A-14
EXHIBIT A
other than BPA which BPA delivers during such month, may be considered an
unauthorized increase. Each 60-minute clock-hour integrated or scheduled
demand shall be considered separately in determining the amount which may be
considered an unauthorized increase pursuant to (a) and the total of such
amounts which are in fact considered unauthorized increases shall be
excluded from the total of the integrated or scheduled demands for such
month in determining the amount which may be considered an unauthorized
increase under (b).
The charge for an unauthorized increase shall be $0.13 per
kilowatthour.
SECTION 7. 6eneral Provisions: Sales of power under this Schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
General Rate Schedule Provisions.
SCHEDULE NF-1- WHOLESALE NONFIRM ENERGY RATE.
SECTION 1. Availability: This schedule is available for the
purchase of nonfirm energy both inside and outside the Pacific Northwest.
This schedule is also available for energy delivered.for emergency use under
the conditions set forth in Section 5.1 of the General Rate Schedule
Provisions. This schedule is not avai Th b s e schedule supersede�
BPA has a firm obligation to supply.
which went into effect on an interim basis on December 20, 1979.
SEC7ION 2. Rate:
a. Nonfirm Energy Rate: The rate shal iU be one e of V the 9 fo11 wing:
transmission which is 2.0 mills per kilowatthour, p
(1) the diurnally differentiated average cost of power from
hydroelectric facilities, which �sa4�5 throughelOkp1mWatandu3.0Umillstper
period Monday through Saturday,
kilowatthour for all other hours of the year, or
(2) the cost of a power purchase in mills per kilowatthour
incurred since the preceding July 31, or the last time that all FCRPS
thatrdates tortheuextent�such purchase cost isrunrecovebedanorally full on
(3) gpq's cost of other resources in mills per kilowatthour
operated since the preceding July 31, or the last time that all FCRPS
reservoirs were substantially full, if they were not substantially full on
that date, to the extent such purchase cost is unrecovered, or
(4) a weighted average in mills per kilowatthour based on
costs from the preceding categories.
A-15
EXHIBIT A
As an amount of energy associated with any given power
purchase or resource is used to derive a charge for a sale of an equivalent
amount of nonfirm energy, that purchase or resource cost will no longer be
used to determine the rate for subsequent sales.
b. Contract Rate For contracts which refer to this schedule
for determining the value of energy, the rate is 9.6 mills per kilowatthour.
SECTION 3. Delivery: BPA shall determine the availability of energy
hereunder and the rate of delivery thereof.
SECTION 4. General Provisions: Sales of energy under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission Act, the
Pacific.Northwest Electric Power Planning and Conservation Act, and the
applicable General Rate Schedule Provisions.
SCHEDULE RP-1 RESERVE POWER RATE
SECTION 1. Availability: This schedule is available for the
purchase of:
a. firm power to meet a purchaser's unanticipated 'load growth
as provided in a purchaser's power sales contract;
b. power for which BPA determines no other rate schedule is
applicable; or
c. power to serve a purchaser's firm power loads in
circumstances where BPA does not have a power sales contract in force with
such purchaser, and BPA determines that this rate should be applicable.
This rate schedule supersedes Schedule EC-9 which went into effect on an
interim basis on December 20, 1979.
SECTION 2. Rate:
a. Demand Charge:
(1) for the billing months December through May., Monday
through Saturday, 7 a.m. through 10 p.m.: .$12.57 per kilowatt of billing
demand.
(2) for the billing months June through November, Monday
through Saturday, 7 a.m. through 10 p.m.: $3.47 per kilowatt of billing
demand.
(3) all other hours: No demand charge.
b. Energy Charge: 62.1 mills per kilowatthour of billing
energy.
A-16
EXHIBIT A
SECTION 3. Billing Factors: The factors to be used in determining
the billing for power purchased under this rate schedule are as follows:
a. the contract demand as specified in the contract;
b. the measured demand;
c. the contract amount of energy for the month;
d. the measured energy for the month.
SECTION 4. Determination of Bi''inq Demand and Billinq Energy: The
billing demand and billing energy shall be determined as provided in a
purchaser's power sales contract. If BPA does not have a power sales
contract in force with a purchaser, the billing demand and billing energy
shall be the measured demand adjusted for power factor and measured energy.
SECTION 5. Unauthorized Increase: That portion of (a) any 60-minute
clock-hour integrated demand or scheduled demand (the total amount of power
scheduled to the purchaser from BPA) that cannot be assigned to a class of
power which BPA delivers on such hour pursuant to contracts between BPA and
the purchaser or to a type of power which the purchaser acquires from
sources other than BPA which BPA delivers during such hour; or (b) the total
of a purchaser's 60-minute clock-hour integrated or scheduled demands during
a billing month which cannot be assigned to a class of power which BPA
delivers during such month pursuant to contracts between BPA and the
purchaser or to a type of power which the purchaser acquires from sources
other than BPA whi.ch BPA delivers during such month, may be considered an
unauthorized increase. Each 60-minute clock-hour integrated or scheduled
demand shall be considered separately in determining the amount which may be
considered an unauthorized increase pursuant to (a) and the total of such
amounts which are in fact considered unauthorized increases shall be
excluded from the total of the integrated or scheduled demands for such
month in determining the amount which may be considered an unauthorized
increase under (b).
The charge for an unauthorized increase shall be $0.13 per
kilowatthour.
SECTION 6. Adjustments.
a. Power Factor: The adjustment for power factor, when
specified in this rate schedule or in the power sales contract, may be made.
by increasing the measured demand for each month by 1 percent for each
1 percent or major fraction thereof by which the average lagging power
factor, or average leading power factor, at which energy is supplied during
such month is less than 95 percent, such average power factor to be computed
to the nearest whole percent from the formula given in Section 9.1 of the
General Rate Schedule Provisions.
A-17
EXHIBIT A
The adjustment for power factor may be waived in whole or in part
by BPA. Unless specifically otherwise agreed, BPA may, if necessary to
maintain acceptable operating conditions on the Federal System, restrict
deliveries of power to a purchaser at a point of delivery or for a system at
any time that the average power factor for all classes of power delivered to
a purchaser at such point of delivery or for such system is below 75 percent
lagging or 75 percent leading.
SECTION 7. General Provisions Sales of power under this Schedule
shall be subject to the provisions'of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
General Rate Schedule Provisions.
SCHEDULE FE-1 WHOLESALE FIRM ENERGY RATE.
SECTION 1. Availability: This schedule is available for contract
purchase of firm energy, to be delivered for the uses, in the amounts, and
during the period or periods specified in such contract. This schedule
supersedes Schedule J-2 which went into effect on an interim basis on
December 20, 1979.
SECTION 2. Rate: 10.0 mills per kilowatthour of billing energy.
SECTION 3. Billing Factors: The contract energy is the billing
factor.
SECTION 4. Determination of Billing Energy: The billing energy
shall be determined as provided in the purchaser's power sales contract.
SECTION 5. Oelivery: Delivery of energy under this rate schedule is
assured during the contract period. However, BPA may interrupt the delivery
of firm energy hereunder, in whole or in paCt, at any time that BPA
determines that BPA is unable because of system operating conditions,
including lack of generation or transmission capacity, to effect such
delivery.
SECTION 6. Adjustments
a. Power factor The adjustment for power factor, when
specified in this rate schedule or in the power sales contract, may be made
by increasing the contract energy delivered for each month by 1 percent for
each 1 percent or major fraction thereof by which the average lagging power
factor, or average leading power factor, at which energy is supplied during
such month is less than 95 percent, such average power factor to be computed
to the nearest whole percent from the formula given in Section 9.1 of the
General Rate Schedule Provisions..
The adjustment for power factor may be waived in whole or in part
by BPA. Unless specifically otherwise agreed, BPA may, if necessary to
A-18
EXHIBIT A
maintain acceptable operating conditions on the Federal System, restrict
deliveries of power to the purchaser at a point of delivery or for a system
at any time that the average power factor for all classes of power delivered
to a purchaser at such point of delivery or for such system is below
75 percent lagging or 75 percent leading.
SECTION 7. General Provisions: Sales of power under this schedule
shall be subject to the provisions of the BPA Project Act, as amended, the
Regional Preference Act, the Federal Columbia River Transmission System Act,
the Pacific Northwest Electric Power Planning and Conservation Act, and the
General Rate Schedule Provisions.
SCHEDULE SI-1 SPECIAL INDUSTRIAL POWER RATE
SECTION 1. Availability: This schedule is available for the
Hanna Nickel Smelting Company's purchase of a special class of industrial
power and/or authorized increase on a contract demand basis and for
additional power requested by the purchaser and made available as authorized
increase by Bonneville on an intermittent basis. This rate schedule is made
available pursuant to section 7(d)(2) of the Pacific Northwest Electric
Power Planning and Conservation Act (Regional Act).
SECTION 2. Rate:
a. Demand Charge:
(1) For the billing months December through May, Monday
through Saturday, 7 a.m. through 10 p.m.: $2.80 per kilowatt of billing
demand.
(2) For the billing months June through November, Monday
through Saturday, 7 a.m. through 10 p.m.: $1.44 per.kilowatt of billing
demand.
(3) All other hours: No demand charge.
b. Energy Charge:
The greater of:
(1) For the billing months September through March:
7.4 mills per kilowatthour of billing energy; for the billing months April
through August: 6.9 mills per kilowatthour of billing energy; or
(2) For the billing months September through March:
[(X/2465) 4.8] mills per kilowatthour;
for the billing months April through August:
[(X/2480) 4.9] mills per kilowatthour
A-19
EXHIBIT A
Where X= the actual monthly costs in thousands of dollars
incurred by the Administrator pursuant to section 5(c) of the Regional Act.
But the energy charge is not to exceed 10.6 mills per kilowatthour in any
month, excluding any surchar9es that will be made applicable pursuant to
provisions of the contract to recover the costs of services if conditions
affecting profitability of the purchaser's operation improves.
SECTION 3
determining the
follows:
c
Billing Factors: The factors to be used in
billing for power purchased under this rate schedule are as
contract demand;
curtailed demand;
restricted demand;
d. measured energy.
SECTION 4. Determination of Billin
Billi
The billing demands for this special class of industriai power ana
authorized increase, respectively, and for additional power requested by the
purchaser and made available by Bonneville as authorized increase on an
intermittent basis Hill be the lowest of the respective contract demand,
curtailed demand, or restricted demand after each such demand is adjusted
for power factor. The billing energy associated with each of the respective
billing demands will be the measured energy distribute proportionately among
the respective demands for each hour each such demand is applicable during
the billing month.
SECTION 5. Adjustments:
a. Value of Reserves: An adjustment for the value of the
reserves provided by purchasers of this special class of industrial power
shall be:
(1)
$0.33 per kilowatt of billing demand.
2.3 mills per kilowatthour of billing energy.
�2)
The adjustment shall be applied to the same billing factors which are used
to determine the billing for power purchased under this rate schedule.
b. Power Factor: The adjustment for power factor, when
specified in this rate schedule or in the power sales contract, may be made
by increasing the appropriate demand (operating, curtailed, or restricted)
for each month by 1-percent for 1-percent or major fraction thereof by which
the average lagging power factor or average leading power factor at which
o �e�;y i<_ suppl�ed during such month is less than 95-percent, such average
A-20
EXHIBIT A
power factor to be computed to the nearest whole percent from the formula
given in Section 9.1 of the General Rate Schedule Provisions.
The adjustment for power factor may be waived in whole or in part by BPA.
Unless specifically otherwise agreed, BPA may, if necessary to maintain
acceptable operat'ing conditions on the Federal System, restrict deliveries
of power to a purchaser at a point of delivery or for a system at any time
that the average power factor for all classes or power delivered to a
purchaser at such poi�t of delivery or for such system is below 75-percent
?agging or 75-percent leading.
SECTION 6. Unauthorized In Any amount by which any
60-minute clock-hour integrated demand exceeds that sum of the bi11��9�cable
demand for such hour before adjustment for power factor, plus any app
scheduled demands which the purchaser acquires through other contracts for
such hour wi11 be assessed a charge o.f 50.13 per kilowatthour.
SECTION 7. Special Conditions Advance of Energy: BPA may elect
to advance energy under terms and conditions of the purchaser's power sale
contract.
SECTION 8. General Provisions: Sales of power under this
schedule shall be subject to the provisions of the Bonneville Project Act,
as amended, the Regional Preference Act, the Federal Columbia River
Transmission System Act, the Pacific Northwest Electric Power Planning and
Consevation Act, and the applicable General Rate Schedule Provisions.
A-21
EXHIBIT A
GENERAL RATE SCHEDULE PROVISIONS
SECTION 1.1. Priority and New Resource Firm Power: Priority and new
resource firm power is electric power which BPA will make continuously
available to a purchaser to meet its net firm.load requirements within the
Pacific Northwest except when restricted because the operation of generation
or transmission facilities used by BPA to service such purchaser is
suspended, interrupted, interfered with, curtailed, or restricted as the
result of the occurrence of any condition described in the Uncontrollable
Forces or Continuity of Service Sections of the General Contract Provisions
of the contract. Such restriction of priority and new resource firm power
shall not be made until industrial firm power has been restricted in
accordance with Section 1.4 and until modified firm power has been
restricted in accordance with Section 1.2.
SECTION 1.2. Modified Firm Power: Modified firm power is electric
power which BPA will make continuously available to a purchaser on a
contract demand basis subject to: (a) the restriction applicable to
priority and new resource firm power, and (b) the following:
When a restriction is made necessary because the operation of
generation or transmission facilities used by BPA to serve such purchaser
and.one or more priority and new resource firm power purchasers is
suspended, interrupted, interfered with, curtailed, or restricted as a
result of the occurrence of any condition described in the Uncontrollable
Forces or Continuity of Service Sections of the General Contract Provisions
of the contract BPA shall restrict such purchaser's contract demand for
modified firm power to the extent necessary to prevent, if possible, or
miminize restriction of any priority and new resource firm power, provided,
however that:
(1) such restriction of modified firm power shall not
exceed at any time 25 percent of the contract demand therefore, and
(2) the accumulation of such restrictions of modified firm
power during any calendar year, expressed in kilowatthours, shall not exceed
500 times the contract demand therefor. When possible, restrictions of
modified firm power will be made ratably with restrictions of industrial
firm power based on the proportion that the respective contract demands bear
to one another. The extent of such restrictions shall be limited for
mbdified firm power by this subsection and for industrial firm power by the
Restriction of Deliveries Section of the General Contract Provisions of the
contract.
SECTION 1.3. Firm Capacity: Firm capacity is capacity which BPA
assures will be available to a purchaser on a contract demand basis except
when operation of generation or transmission facilities used by BPA to serve
such purchaser is suspended, interrupted, interfered with, curtailed, or
restricted as the result of the occurrence of any condition described in the
A-22
EXHIBIT A
Uncontrollable Forces or Continuity of Service Sections of the General
Contract Provisions of the contract.
SECTION 1.4. Industrial Firm Power: Industrial firm power is
electric power which BPA will make continuously available to a purchaser on
a contract demand basis subject to: (a) the restriction applicable to
priority and new resource firm,power; and (b) the following:
(1) the restrictions given in the Restriction of Deliveries
Section of the Power Sales Provisions of the contract.
(2) when a restrict:�n is made necessary because of the
operation of generation or transmission facilities used by BPA to serve such
purchaser and one or more priority and new resource firm power purchasers is
suspended, interrupted, interfered with, curtailed, or restricted as a
result of the occurrence of any condition described in the Uncontrollable
Forces or Continuity of Service Sections of the 6eneral Contract Provisions
of the contract, BPA shall restrict such purchaser's operating demand for
industrial firm power to the extent necessary to prevent, if possible, or
minimize restriction of priority and new resource firm power. When
possible, restrictions of industrial firm power will be made ratably with
restrictions of modified firm power based on the proportion that the
respective contract and operating demands bear to one another., The extent
of such restrictions shall be limited for modified firm power by
Section 1.2(b) of these General Rate Schedule Provisions and for industrial
firm power by the Restrictions of Deliveries Section of the contract.
SECTION 1.5. Authorized Increase: An authorized increase is an
amount of electric power specified in the contract in excess of the contract
or operating demand for priority firm power, new resource firm power,
modified firm power, or industrial firm power that BPA may be able to make
available to the purchaser upon its request.. The purchaser shall make such
request in writing stating the amount of increase requested, the purpose for
Which it will be used, and the period for which it is needed. Such request
shall be made prior to the first calendar month beginning such specified
period. BPA will then determine whether such increase can be made
available, but it shall retain the right to restrict the delivery of such
increase if it determines at any subsepuent time that such increase will no
longer be available.
The purchaser may curtail an authorized increase, in whole or in part,
at the end of any billing month within the period such authorized increase
is to be made available.
SECTION 1.6. Firm Energy: Firm energy is energy which BPA assures
will be available to a purchaser during the period or periods specified in
the contract except during hours as may be specified in the contact and when
the operation of the Government's facilities used to serve the purchaser are
suspended, interrupted, interfered with, curtailed, or restricted by the
occurrence of any condition described in the Uncontollable Forces or
A-23
EXHIBIT A
Continuity of Service Sections of General Contract Provisions of the
contract.
SECTION 2.1. Contract Demand The contract demand shall be the
number of kilowatts that the purchaser agrees to purchase and BPA agrees to
make available. BPA may agree to make deliveries at a rate in excess of the
contract demand at the request of the purchaser (authorized increase), but
shall not be obligated to continue such excess deliveries.
SECTION 2.2. Measured Demand
a. The purchaser's
according to this section unless the
December 5, 1980 provide otherwise.
measured demand will be determined
terms of a contract executed after
b. Except where deliveries are scheduled as hereinafter
provided, the measured demand in kilowatts shall be the largest of the
60-minute clock-hour integrated demands at which electric energy is
delivered to a purchaser at each point of delivery during each time period
specified in the applicable rate schedule during any billing period. Such
largest 60-minute integrated demand shall be determined from measurements
made as specified in the contract, or as determined in Section 3.2 herein.
BPA, in de.termining the measured demand, will exclude any abnormal 60-minute
integrated demands due to or resulting .from (a) emergencies or breakdowns
on, or maintenance of, the Federal System facilities; and (b) emergencies on
the purchaser's facilities, provided that such facilities have been
adequately maintained and prudently operated as determined by BPA. For
those contracts to which BPA is a party and which provide for delivery of
more than one class of electric power to the purchaser at any point of
delivery, the portion of each 60-minute integrated demand assigned to any
class of power shall be determined as specified in the contract. The
portion of the total measured demand so assigned shall constitute the
measured demand for each such class of power.
If the flow of electric energy to a purchaser's system through
two or more points of delivery cannot be adequately controlled because such
points are interconnected within the purchaser's system, or the purchaser's
system is interconnected directly or indirectly with the Federal System, the
purchaser's measured demand for each class of power for such system for any
billing period shall be the largest of the hourly amounts of such class of
power which are scheduled for delivery to the purchaser during each time
period specified in the applicable rate schedule.
SECTION 2.3. Peak Computed Demand and Enerqy Computed Demand:
The purchaser's peak computed demand and energy computed demand will
be determined according to this section unless terms of a contract executed
after December 5, 1980 provide otherwise.
A-24
EXHIBIT A
The purchaser's peak computed demand for each billing month shall be
the largest amount during such month by which the purchaser's 60-minute
system demand exceeds its assured peaking capability.
The purchaser's average energy computed demand for each billing month
shall be the amount during such month by which the purchaser's actual system
average load exceeds its assured average energy capability.
a. General Principles:
(1) The assured peaking and average energy capability of
each of the purchaser's systems shal' �a determined and applied separately.
(2) As used in this section, "year" shall mean the 12-month
period commencing July 1.
(3) The critical period is that period, determined for the
purchaser's system under adverse streamflow conditions adjusted for current
water uses, assured storage operation, and appropriate operating agreements,
during which the purchaser would have the maximum requirement for peaking or
energy after utilizing the firm capability of all resources available to its
system in such a manner as to place the least requirement for capacity and
energy on BPA.
(4) Critical water conditions are those conditions of
streamflow based on historical records, adjusted for current water uses,
assured storage operation, and appropriate operating.agreements, for the
year or years which would result in the minimum capability of the
purchaser's firm resources during the critical period.
(5) Prior to the beginning of each year the purchaser shall
determine the assured capability of each of the purchaser's systems in terms
of peaking and average energy for each month'of each year or years within
the critical period. The f.irm capability of all resources available to the
purchaser's system shall be utilized in such a manner as to place the least
requirement for capacity and energy on BPA. Such assured capability shall
be effective after review and approval by BPA.
1
(6) The purchaser's assured energy capability shall be
determined by shaping its firm resources to its firm load in a manner which
places a uniform requirement on BPA within each year of the critical period
with such requirement increasing each year not in excess of the purchaser's
annual load growth.
(7) As used herein, the capability of a firm resource shatl
include only that portion of the total capability of such resource which the
purchaser can deliver on a firm basis to its load. The capabilities of all
generating facilities which are claimed as part of the purchaser's assured
capability shall be determined by test or other substantiating data
acceptable to BPA. BPA may require verification of the capabilities of any
A-25
EXHIBIT A
6r all of the purchaser's generating facilities. Such verification will not
be required more often than once each year for operating plants, or more
often than once each third year for thermal plants in cold standby status,
if BPA determines that adequate annual preventive maintenance is performed
and the plant is capable of operat.ing at its claimed capability.
(8) In determining assured capability, the aggregate
capability of the purchaser's firm resources shall be appropriately reduced
to provide adequate reserves.
b. Determination of Assured Capability: The purchaser's
assured peaking and energy capabtlit�es sha91 bantsebasedeon�thesmost f the
capabilities of its hydroelectric generatin p
critical water condi lants basedeonutheaadverse fuel orhotheraconditionsf �ts
thermal generating p
reasonably to be anticipated; and the firm capabilities of other resources
made available under contracts prior to the beginning of the year, after
deduction of adequate reserves. Assured capabilities shall be determined
for each month if the purchaser has seasonal storage. The capabilities of
the purchaser's firm resources shall be determined as follows:
(1) H droelectric Generatin Facilities: The capability
of each of the purchaser s hydroelectric generating plants shall be
determined in.terms of both peaking and average energy using critical water
conditions. The average energy capability shall be that capability which
would be available under the storage operation necessary to produce the
claimed peaking capability.
Seasonal storage shall mean storage sufficient to regulate
all the purchaser's hydroelectric resources in such a manner that when
combined with the purchaser's thermal generating facilities, if any, and
with firm capacity and energy available to the purchasemontheorCmoreawoulda
uniform energy computed demand for a period of one (1)
result.
A purchaser having seasonal storage shall, within 10 days
after the end of each month in the critical period, notify BPA in writing of
the assured energy capability to be applied tentatively to the preceding
month; such notice shall also specify the purchaser's best estimate of its
average system energy load for such month. If such notice is not submitted,
or is submitted later than 10 days after the end of the month to which it
applies, subject to the limitations stated herein, the assured energy
shall�betappliedmtoesuchrmonth and be changed�thereafterhe year
If notice has been submitted pursuant to the preceding
para9raph, the purchaser shall, within 30 days after the end of the month,
submit final specification of the assured energy capability to be applied to
the preceding month; provided that the assured energy capability so
specified shall not differ from the amount shown in the original notice by
A-26
EXHIBIT A
more than the amount by which the purchaser's actual average system energy
load for such month differs from the estimate of that load shown in the
original notice. If the assured energy capability for such month differs
from that determined prior to the beginning of the year fot� such month, the
purchaser, if required by BPA, shall demonstrate by a suitable regulation
study based on crit�cal water conditions that such cha��ge could actually be
accomplished, ar�d tha`_ the remaining balance of its total critical period
assured ener9y capability could be developed without adversely affecting the
firm capability of other purchaser's resources. The algebraic sum of all
such changes in the purchaser's assured energy capability shall be zero at
the end of the critical period or year, whiche+,er is earlier. Appropriate
adjustments in the assured peaking c��_�ilit�� 'iall be made if required by
any change in reservoir operation indicated by such revisions in the monthly
distribution of critical period energy capability.
(2) Thermal �enerating Facilities: The capability of each
of the purchaser's thermal generating plants shall be determined in terms of
both peaking and average energy. Such capabilities shall be based on the
adverse fuel or other conditions reasonably to be anticipated. The effect
of limitations on fuel supply due to war or other extraordinary situations
will be evaluated at the time of occurrence.
(3) Other Sources of Power: The assured capability of
other resources available to the purchaser on a firm basis under contracts
shall be determined prior to each year in terms of both peaking and average
energy.
c. Determination of Computed Demand: The purchaser's computed
demand for each billing month shall be the greater of:
(1) The largest amount during such month by which the
purchaser's actual 60-minute system demand, excluding any loads otherwise
provided for in the contract, exceeds its assured peaking capability for
such month, or period within such month, or
(2) The largest amount for such month, or period within
such month, by which the purchaser's actual system average energy load,
excluding the average energy loads otherwise provided for in the contract,
exceeds its assured average energy capability.
The use of computed demands as one of the alternatives in
determining billing demand is intended to assure that each purchaser who
purchases power from BPA to supplement its own firm resources will purchase
amounts of power substantially equivalent to the additional capacity and
energy which the purchaser would otherwise have to provide on the basis of
normal and prudent operations, viz, sufficient capacity and energy to carry
the load through the most critical water or other conditions reasonably to
be anticipated, with an adequate reserve.
A-27
EXHIBIT A
Since the computed demand depends on the relafionship of
capability of resources to system requirements, the computed demand for any
month cannot be determined until after the end of the month. As each
purchaser must estimate its own load, and is in the best position to follow
its development from day to day, it will be the purchaser's responsibility
to request scheduling of priority and new resource firm power, including any
increase over previously established demands, on the basis estimated by the
purchaser to result in the most advantageous purchase of the power to be
billed at the end of the month.
SECTION 2.4. Restricted Demand A restricted demand shall be the
number of kilowatts of priority firm power, new resource firm power,
modified firm power, industrial firm power, or authorized increase of any of
the preceding classes of power which results when BPA has restricted
delivery of such pawer for one (1) clock-hour or more. Such restrictions by
BPA are made pursuant to the power sales contract for industrial firm power
and pursuant to Section 1.1 and 1.2 of the General Rate Schedule Provisions
for priority and new resource firm power and modified firm power,
respectively. Such restricted demand shall be determined by BPA after the
purchaser has made its determination to accept such restriction or to
curtail its contract demand for the month in accordance with Section 2.5 of
the General Rate Schedule Provisions.
SECTION 2.5. Curtailed Demand A curtailed demand shall be the
number of kilowatts of priority firm power, new resource firm power,
modified firm power, industrial firm power, or authorized increase of any of
the preceding classes of power which results from the purchaser's request
for such power in amounts less than the contract demand therefor. Each
purchaser of industriai firm power or modified firm power may curtail its
demand in accordance with the contract. Each purchaser of an authorized
increase in excess of priority firm power, new resource firm power, modified
firm power, or industrial firm power may curtail its demand in accordance
with Section 1.5 of the General Rate Schedule Provisions.
SECTION 3.1. Bi11in9: Unless otherwise provided in the contract,
power made available to a purchaser at more than one point of delivery shall
be billed separately under the applicable rate schedule or schedules. The
contract may provide for combined billing under specified conditions and
terms when (a) delivery at more than one point is beneficial to BPA; or
(b) the flow of power at the several points of delivery is reasonably beyond
the control of the purchaser.
If deliveries at more than one point of delivery are billed on a
combined basis for the convenience di the customer, a charge will be made
for the diversity between the measured demands at the several points of
delivery. The charge for the diversity shall be determined in a uniform
manner among purchasers and shall be specified in the contract.
SECTION 3.2. Determination of Estimated Billing Data: If the
purchased amounts of capacity, energy, or the 60-minute integrated demands
A-28
EXHIBIT A
for energy must be estimated from data other than metered or scheduled
quantities, BPA and the purchaser will agree on billing data to be used in
preparing the bill. If the parties cannot agree on estimated billing
quantities, a determination binding on both parties shall be made in
accordance with the arbitration provisions of the contract.
SECTION 4.1 Application of Rates durinq Initial Operation Period:
For an initial operating period, not in excess o` 3 months, beginning with
the commencement of operation of a new industria plant, a major addition to
an existing pl.ant, or reactivation of an existing piant or important part
thereof, BPA may agree (a) to bill for service *.o such new, additional, or
reactivated plant facilities on the .`;sis of �,�z measured demand for each
day, adjusted for power factor; or (b) if such facilities are served by a
distributor purchasing power therefor from BPA to bill for that portion of
such distributor's load which results from service to such facilities on the
basis of the measured demand for each day, adjusted for power factor. Any
rate schedule provisions regarding contract demand, billing demand, and
minimum monthly charge which are inconsistent with this Section shall be
inoperative during such initial operating period.
The initial operating period and the special billing provisions may,
on approval by Bonnevillle, be extended beyond the initial 3-month period
for such additional time as is.justified by the developmental character of
the operations.
SECTION 5.1. Enerqy Supplies for Emergency Use: A purchaser taking
priority and/or new resource firm power shall pay in accordance with
Wholesale Nonfirm Energy Rate Schedule NF-1 and Emergency Capacity Schedule
CE-1 for any electric energy which has been supplied; (a) for use during an
emergency on the purchaser's system; or (b) following an emergency to
replace energy secured from sources.other than BPA during such emergency,
except that mutual emergency assistance may be provided and settled under
exchange agreements.
SECTION 6.1. Billinq Month: Meters will normally be read and bills
computed at intervals of 1 month. A month is defined as the interval
between meter-reading dates which normally will be approximately 30 days.
If service is for less or more than the normal billing month, the monthly
charges stated in the applicable rate schedule will be appropriately
adjusted. Winter and summer periods identified in the rate schedules will
begin and end with the beginning and ending of the purchaser's billing month
having meter-reading dates closest to the periods so identified.
SECTION 7.1. Payment of Bills: Bills for power shall be rendered
monthly and shall be payable at BPA s headquarters. Failure to receive a
bill shall not release the purchaser from liability for payment. Demand and
energy billings under each rate schedule application shall be rounded to
whole dollar amounts, by elimi.nation of any amount of less than 50 cents and
increasing any amount from 50 cents through 99 cents to the next higher
dollar.
A-29
EXHIBIT A
If BPA is unabie to render the purchaser a timely monthly bill which
includes a full disclosure of all billing factors, it may elect to render an
estimated bill for that month to be followed at a subsequent billing date by
a final.bill. Such estimated bill, if so issued, shall have the validity of
and be subject to the same repa,yrient provisions as sha11 a final bill.
Bills not paid in fu11 on or before the close of business of the 20th
day after the date of the bill shall bear an additional charge which shall
be the greater of one-fourth percent (0.?5%) of the anount unpaid or $50.
Thereafter a charge on one-twentieth percent (0.05%) of the sum of the
initial amount remaining unpaid and the additional charge herein described
sha11 be added on each succeeding day until the anount due is paid in full.
The provisions of this paragraph shall not apply to bills rendered under
contracts with other aaencies of the United �tates.
Remittances received by mail v�ill be accepted without assessment of
the charges referred to in the preceding paragraph provided the postmar�
indicates the payment was mailed on or before the 20th day after the date of
the bi11. ?f the 20th day after the date of the bill is a Sunday or other
nonbusiness day of the purchaser, the next following business day shall be
the last day on which paynent may be made to avoid such further charges.
Paynent made by metered mail and received subsequent to the 20th day must
bear a postal cancellation in order to avoid assess�ent of such
further charges.
BPA may, whenever a power bill or a portion thereof remains unpaid
subsequent to the 20th day after .the date of the bill, and after giving 30
days advance notice in writin�, cancel the contract for service to the
purchaser, but such cancellation sha11 not.affect the purchaser's liability
for aRy charges accrued prior thereto.
SECTION 8.1. Approval of Rates: Schedules of rates and charges, or
modifications thereof, for electric power sold by BPA sha11 become effective
on a final basis after confirmation and approval by the Federal Energy
Regulatory Commission. Pending the establishment of procedures by the
Corunission to approve rates on a final basis, the entity or entities having
been designated by the Secretary of Energy prior to December 5, 1980, shall
have authority to confirm and approve schedules of rates and charges on an
interim basis.
SECTION 9.1. Average Power Factor: The formula for determining
average power factor �s as o ows:
Average PoM�er Factor
Kilowatthours
(Reactive Kilovolt-anpere-hours)
(Kilowatthours
The data used in the above formula shall be obtained from meters which
are ratcheted to prevent reverse registration.
A-30
EXHIBIT A
When deliveries to a purchaser at any point of delivery include more
than one class of power or are under more than one rate schedule, and it is
impracticable to separately meter the kilowatthours and reactive
kilovoltamperehours for each class, the average power factor of the total
deliveries for the month will be used, where applicable, as the power factor
for each of the sepsrate classes of power and rate schedules.
SECTION 10.1. Temporary Curtailment of Contract Demand: The
reduction of ct�arges for power curtailed pursuan� to the purchaser's
contract and 'Section 1.5 and 2.5 hereof shall be ap�lied in a uniform manner.
SECTION 11.1. General Provisin�_. The iolesale Rate Schedules and
General Rate Schedule Provisions of the BPA Power Administration effective
July 1, 1981, supersede in their entirety BPA's Wholesale Power Rate
Schedule Provisions effective December 20, 1979.
(WP-PCI-0390c)
A-31
Exhibit B
8-25-81
GCP form PSC 1
GENERAL CONTRACT PROVISIONS
Index to Sections Page
Section
I. RELATING TO ALL PURCHASERS
A. IN REFERENCE TO MEANING
1. Definitions 1
2. Interpretation 4
B. IN REFERENCE TO COMPUTATION OF CHARGES
3. Measurements
5
4. Adjustment for Chan9e of Conditions 5
5. Adjustment for Inaccurate Metering 5
6. Adjustment for Unbalanced Phase Demands b
7. Reducing Charges for Interruptions 6
C. IN REFERENCE TO RATES
8. Equitable Adjustment of Rates 7
p, IN REFERENCE TO DELIVERY OF POWER
9. Character of Service 15
10. Point(s) of Delivery and Delivery Voltage 15
11. Metered Quantities 15
i
Index to Sections (Continued)
Section
12
13
14
15
Where Additional Facilities Required
Uncontrollable Forces
Continuity of Service
Delivery by Transfer
E. IN REFERENCE TO PAYMENT FOR POWER
16. Determination of and Assignment of Measured Demand......
17. Billing of Multiple Points of Delivery
18. Payment of Bills
19. Determination of Estimated Billing Data
20. Average Power Factor
F. IN REFERENCE TO USE OF POWER
21. Changes in Requirements or Characteristics
22. Electric Disturbance
23 Harmonic Control
24. Balancing Phase Demands
6. IN REFERENCE TO FACILITIES
25. Measurements and Installation of Meters
26. Tests of Metering Installations
27 Permits
28. Ownership of Facilities
ii
Page
15
16
16
16
17
18
19
20
20
21
21
23
23
23
23
24
25
Index to Sections (Continued)
Section
29. Inspection of Facilities
30. Facilities for Maintenance of Voltage
N. MISCELLANEOUS PROVISIONS
31. General Environmental Provision
32. Dispute Resolution and Arbitration
33. Enforcement of Rights for Benefit of Transferors........
34. Net Billing
35. Contract Work Hours and Safety Standards
36. Convict Labor
37. Equal Employment Opportun�ty
38. Assignment of Contract
39. Waiver of Default
40. Notices and Computation of Time
41. Interest of Member of Congress
42. Priority of Pacific Northwest Customers
43. Resource Acquisition and Management
44. Cooperation with Regional Council
45. Rights of the Purchaser
II. RELATING ONLY TO PREFERENCE AGENCIES
46. Separation of Electric Operations and Funds
(All PubTic A encies
y
47. Statement of General Policies and Practices (Cities)....
Page
25
26
26
28
30
30
31
32
33
35
36
36
36
36
37
38
39
39
39
iii
Index to Sections (Continued)
Section
48. Approval of Contract
49. Prior Demands
III. RELATING ONLY TO PUBLIC BODY, COOPERATIVE, FEDERAL AGENCY, AND
INVESTOR-OWNED UTILITY PURCHASERS
A. IN REFERENCE TO COMPUTATION OF CHARGES
50. Effect of Reduction of Contract Demand
51. Combining Deliveries Coincidentally
52. Combining Deliveries Noncoincidentally
53. Power Factor Adjustment
L•'
C
IN REFERENCE TO PURCHASERS' OPERATING POLICIES
54. Retail Rates
IN REFERENCE TO USE OF POWER
55. Resale of Power
D. IN REFERENCE ONLY TO PURCHASERS WITH 6ENERATING FACILITIES
56. Nonfirm Deliveries
57. Emergency or Breakdown Relief
58. Effect on Generating Utility by Direct Service
Industrial Customer Power Sales Contract Provisions...
Page
41
41
42
42
43
44
44
46
46
47
47
iv
Index to Sections (Continued)
Section
IV. RELATING ONLY TO DIRECT-SERVICE INDUSTRY PURCHASERS
Page
A. IN REFERENCE TO COMPUTATION OF CHARGES
59. Demands 48
B. IN REFERENCE TO PURCHASE
60. Use and Resale of Power 48
'u
Exhibit B, Page 1 of 48
General Contract Provisions
8/25/81
I. RELATING TO ALL PURCHASERS
A. IN REFERENCE TO MEANINr,
1. Definitions. The definitions in the body of this contract and the
following additional definitions apoly to this exhibit.
(a) "gilling Month," when used with respect to a Direct Industrial
Customer, means a calendar month.
(b) "Contractor" means the Purchaser.
(c) "Direct Service Industrial Customer" means a purchaser of industrial
firm power, modified firm power, or similar classes of power under contracts
providing for the purchase of any such class of power directly from Bonneville.
(d) "Federal System" or "Federal System Facilities" means the facilities
of the Federal Columbia River Po•der System, which for the purposes of this
contract shall be deemed to include the generating facilities of the Government
in the Pacific Northwest for which Bonneville is designated as marketing agent;
the facilities of the Government under the jurisdiction of Bonneville; and any
other facilities:
(1) from which Bonneville receives all or a portion of the generating
capability (other than station service) for use in meeting Bonneville's
loads, such facilities being included only to the extent Bonneville has the
right to receive such capability; provided, however, that "Bonneville's
loads" shall not include that portion of the loads of any Bonneville
customer which are served by a nonfederal generating resource purchased or
owned directly by such customer which may be sr.heduled by Bonneville;
(2) which Bonneville may use under contract, or license; or
Exhibit B, Page 2 of 48
General Contract Provisions
8/25/81
(3) to the extent of the rights acquired by Bonneville pursuant to
the Treaty, between the Government and Canada, relating to the cooperative
development of water resources of the Columbia River Basin, signed in
Washington, D.C., on January 17, 1961.
(e) "Federal Energy Regulatory Commission" means the Federal Energy
Regulatory Commission or its successor.
(f) "Measured Demand" when used with respect to a Direct Service
i
Industrial Purchaser means the largest of the Integrated Demands, adjusted as
appropriate to the Point of Delivery, for the time periods for which there is a
demand charge specified in the applicable rate schedule in the Wholesale Power
Rate Schedule and General Rate Schedule Provisions Exhibit during a Billing
Month.
(g) "Point(s) of Delivery" means the point(s) of delivery listed either in
I the Points of Delivery Exhibit to this contract or in the body of this contract.
(h) "P.L. 96-501" means the Regional Act.
(i) "Transferor" means an entity which rece.ives Bonneville's power or
energy at one point on such entity's system and makes such power or energy
available at another point on its system for the account of Bonneville.
(j) "Uncontrollable Forces" means:
(1) strikes or work stoppage affecting the operation of the
Purchaser's works, system, or other physical facilities or of the Federal
System Facilities or the physical facilities of any Transferor upon which
such operation is completely dependent; the term "strikes or work stoppage"
shall be deemed to include threats of imminent strikes or work stoppage
which reasonably require a party or Transferor to restrict or terminate its
Exhibit E, Page 3 of 48
General Contract Provisions
8/25/81
operations to prevent substantial loss or damage to its works, system, or
other physical facilities; or
(2) such of the following events as the Purchaser or Bonneville or
any Transferor by exercise of reasonable diligence and foresight, could not
reasonably have been expected to avoid:
(A) events, reasonably beyond the control of either party or any
Transferor, causing failure, damage, or destruction of any works,
system or facilities of such party or Transferor; the word "failure"
shall be deemed to include interruption of, or interference with, the
actual operation of such works, system, or facilities;
(B) floods or other conditions caused by nature which limit or
prevent the operation of, or which constitute.an imminent threat of
damage to, any such works, system, or facilities; and
(C) orders and temporary or permanent injunctions which prevent
operation, in whole or in part, of the works, system, or facilities of
either party or any Transferor, and which are issued in any bona fide
proceeding by:
(i) any duly constituted coui of general jurisdiction; or
(ii) any administrative agency or officer, other than
Bonneville or its officers, provided by law (a) if said party or
Transferor has no right to a review of the validity of such order
by a court of competent jurisdiction; or (b) if such order is
operative and effective unless suspended, set aside, or annulled
by a court of competent jurisdiction and such order is not
suspendad, set aside, or annulled in a judicial proceeding
Exhibit B, Page 4 of 48
General Contract Provisions
8/25/81
prosecuted by said party or Transferor in good faith; provided,
however that if such order is suspended, set aside, or.annulled
in such a judicial proceeding, it shall be deemed to be an
"uncontrollable force" for the period during which it is in
effect; provided, further, that said party or Transferor, shall
not be required to prosecute such a proceeding, in order to have
the benefits of this section, if the parties agree that there is
no valid basis for contesting the order.
The term "operation" as used in this subsection shall be
deemed to include construction, if construction is required to
implement tlie contract and is specified therein.
(k) "Utility" means a party to a residential purchase and sale agreement
offered pursuant to section 5(c) of P.L. 96-501 which shall also be referred to
as the "Purchaser" for the purposes of'this exhibit.
2. Interpretation.
(a) The provisions in this exhibit.shall be.deemed to be a part of the
I
contract body to which _hey are an exhibit. If a provision in such contract
body is in conflict with a provision contained in this exhibit, the former
shall prevail.
(b) If a provision in the General Rate Schedule Provisions incorporated in
the Wholesale Power Rate Schedules and General Rate Schedule Provisions Exhibit
is in conflict with a provision contained in this exhibit or the contract body,
this exhibit or the contract body shall prevail.
(c) Nothing contained in this contract shall, in any manner, be construed
to abridge, limit, or deprive any party hereto of any means of enforcing any
Exhibit B, Page 5 of 48
General Contract Provisions
8/25/81
remedy, either at law or in equity, for the breach of any of the provisions of
this contract which it would otherwise have.
6. IN REFERENCE TO COMPUTATION OF CHARGES
3. Measurements. Each measurement of each meter mentioned in this
contract shall be the measurement automatically recorded by such meter or, at
the request of either party, the measurement as mutually determined by the best
available information.
If it is provided in this contract that measurements made by any of
the meters specified therein are to be adjusted for losses, such adjustments
shall be made by using factors, or by compensating the meters, as agreed upon
by the parties hereto. If changes in conditions occur which substantially
affect any such loss factor or compensation, it will be changed in a manner
which wi11 conform to such change in conditions.
4. Adjustment for Change of Conditions. Changes in conditions may occur
after the date of execution of this contract which substantially affect factors
required by this contract to be used in determining (a) the charge for a
service or for use of facilitii�s provided by Bonneville other than charges for
the sale of electric power and energy or (b) the amount of losses from the
transmission or transformation of electric power or energy. Such factors will
then be changed in an equitable manner which will conform to such changes in
conditions.
5. Adjustment for Inaccurate Metering. If any meter mentioned in this
contract fails to register, if the measurement made by such meter during a test
I
Exhibit B, Page 6 of 48
General Contract Provisions
8/25/81
made as provided in section 26 hereof varies by more than one percent from the
measurement made by the standard meter used in such test or if an error in
meter reading occurs, adjustment shall be made.correcting all measurements for
the actual period during which such inaccurate measurements were made, if such
period can be determined. If such period cannot be determined the adjustment
shall be made for the period immediately preceding the test of such meter which
is equal to the lesser of (a) one-half the time from the date of the last
preceding test of such meter or (b) 6 months. Such corrected measurements
shall be used to recompute the amounts.due from the Purchaser for the electric
power and energy made available under this contract during such period and
shall be used, when applicable, in future billings to the Purchaser. If the
total amount due from the Purchaser for such period as recomputed varies from
the total amount previously billed by Bonneville, Bonneville shall adjust the
wholesale power bill(s) as soon as practicable.
6. Adjustment for Unbalanced Phase Demands. If the Purchaser fails to
make promptly the changes mentioned in section 24 hereof, Bonneville may, after
giving written notice o�.z month in advance, determine that the Measured Demand
of the Purchaser at the Point of Deliyery in question during each month
thereafter, until such changes are made, is equal to the product obtained by
multiplying by three the largest of the Integrated Demands on any phase
adjusted as appropriate to such point during such month:
7. Reducina Charges for Interruptions. If deliveries of electric power
and energy to the Purchaser are suspended, interrupted, interfered with or
curtailed due to Uncontrollable forces on either the Purchaser's system, the
Federal System or any Transferor's system, or if Bonneville or any Transferor
Exhibit B, Page 7 of 48
General Contract Provisions
8/25/81
interrupts or reduces deliveries to the Purchaser for any of the reasons stated
in section 14 hereof, the charges for power shall be appropriately reduced.
Partial interruptions shall be converted to an equivalent outage of total
Measured Demand. No total outage or equivalent outage of less than 30 minutes
duration shall be considered for computation of such reduction in charges.
C. IN REFERENCE TO RATES
(a)
Equitable Adjustment of Rates.
Bonneville shall establish, periodically review and revise rates for
the sale and disposition of electric power, capacity or energy sold pursuant to
the terms of this contract
applicable law.
Such rates shall be established in accordance with
(b) As used in this section, the words "Rate Adjustment Oate" mean any
date as specified by Bonneville in a notice of intent to file revised rates as
published in the Federal Register; provided, however, that such date shall
not occur sooner than (1) nine months from the date that such notice of intent
is published; or (2) twelve months from any previous Rate Adjustment Date. By
giving written notice to the Purchaser 45 days prior to such Rate Adjustment
Date, Bonneville may delay suci Rate Adjustment Date for up to 90 days if
Bonneville determines either tnat the revenue level of the proposed rates
differs by more than five percent from the revenue requirements indicated by
most recent repayment studies entered in the hearings record or that external
events beyond Bonneville's control will prevent Bonneville from meeting such
Rate Adjustment Date. Bonneville may cancel a notice of intent to file revised
Exhibit B, Page 8 of 48
General Contract Provisions
8/25/81
rates at any time (1) by wnitten notice to the Purchaser; or.(2) by publishing
in the Federal Register a new notice of intent to file rev.ised rates which
specifically cancels a previous notice.
(c) The Purchaser shall pay Bonneville for the electric power and energy
made available under this contract during the period commencing on each Rate
Adjustment Date and endi�g at the beginning of the next Rate Adjustment Date.at
I fhe rate specified in any rate schedule available at the beginning of such
period for service of the class, quality, and type provided for in this
I contract, and in accordance with the terms thereof, and of the General Rate
I Schedule Provisions as changed with, incorporated in or referred to in such
rate schedule. New rates shall not be effective on any Rate Adjustment Date
i
unless they have been approved on a final or interim basis by a governmental
I
i agency designated by law to approve Bonneville rates. Rates shall be applied
in accordance with the terms thereof, the General Rate Schedule Provisions as
changed with, incorporated in or referred to in such rate schedule and the
terms of this contract.
(d) (1) Bonnevill,: reserves the authority to impose a conservation
surcharge as provided by section 4(f) and 7(h) of P.L. 96-501. The
Purchaser shall pay the amount of any such surcharge so imposed as part of
I i its payment to Bonneville for wholesale power.
(2) Bonneville and the Purchaser recognize that cost-effective model.
I
j conservation standards are to be aiiopted by the Pacific Northwest Electric
Power and Conservation Planning Council ("the Council") pursuant to
P.L. 96-501, and that, in accordance with section 4(f) of P.L. 96-501, such
standards are required to include, but are not limited to, standards
Exhibit B, Page 9 of 48
General Contract Provisions
8/25/81
applicable to Customer and governmental conservation programs. Bonneville
will make available financial assistance to implement such cost-effective
standards pursuant to its obligations under section 6(a)(1) and 6(e)(1) of
P.L. 96-501, and as described at page 43 of the Report of the Committee on
Interior Affairs of the U.S. House of Representatives (Report No. 96-976,
Part II) regarding section 4(f).
(3) Upon adoption of a methodology as provided in section 4(f)(2) and
section 4(e)(3)(G) of P.L. 96-501, Bonneville will give notice of intent to
adopt a rule, provide opportunity for public comment, and publish draft
procedures in the Federal Register for imposing surcharges. Such rule
shall include:
(A) standards to be met before Bonneville will excuse surcharges
which would otherwise be a?propriate, consistent with Bonneville's
obligations to implement cost-effective conservation measures to the
maximum extent practicable;
(B) that Bonneville will impose surcharges to the extent not
excused or suspended under the terms of the rule;
(C) an opportunity for interested persons to present views,
data, questions, and arguments to Bonneville relevant to the
imposition of surcharges in specific instances, and the adequacy of.
financial assistance made available by Bonneville;
(D) that surcharges imposed will be continued to the extent and
for the period projected energy savings attributable to cost-effective
model conservation standards are not achieved;
Exhibit B, Page 10 of 48
General Contract Provisions
8/25/81
(E) for recovery from the Purchaser of the additional costs
(including increases in the Utility's average system cost) that
Bonneville will incur because the projected energy savings
attributable to model conservation standards have not been achieved,
subject to the limitations set forth in sections 4(f)(i) and 4(f)(2)
of P.L. 96-501; provided, however, that surcharges will not be
levied as a result of an increase in a Utility's average system cost
except to the extent that the Utility failed to implement conservation
measures that are designed to be cost-effective for its Consumers in
terms of the electric rates its Consumers pay.
(4) Nothing in this section shall waive or prejudice the right of any
person or Customer to assert any of its legal rights with respect to the
model conservation standards, their application, or the imposition of any
surcharges.
(e) Bonneville's wholesale power rates established on any Rate Adjustment
Date shall be developed consistent with the provisions of section 7 of
P.L. 96-501. Bonnevill_ shall develop in consultation with its utility
Customers and shall publish by July 1, 1983, methodologies as required for
implementing section 7(b)(2).
(f) Power Cost Allocations After July 1, 1985. Power cost allocations
among Customer classes will follow the same methods set forth in Appendix B of
the Senate Report 5.885 (S. Rep. 272, 96 Cong., lst Sess. 1979) for the period
Exhibit B, Page 11 of 48
General Contract Provisions
8/25/81
after July 1, 1985, and in the same general manner as further explained in the
1981 Bonneville wholesale power rate case by Exhibit U submitted in such rate
case and the accompanying Bonneville testimony.
(h) Individual Customer Rate Limit Under Section 7(f) of P.L. 96-501.
(1) The provisions of this subsection shall apply to any Customer
from whom or on behalf of whom Bonneville has acquired a resource pursuant to
section 6 of P.L. 96-501, if and to the extent such Customer purchases Firm
Power from Bonneville at a rate established pursuant to section 7(f) of
P.L. 96-501.
(2) The rate established pursuant to section 7(f) charged to any such
Customer for an amount of Firm Power not exceeding that acquired by Bonneville
from or on behalf of such Customer, axclusive of any allocated to such
rate in accordance with sections 7(b)(3), 7(9), and 7(h) of P.L. 96-501, shall
not exceed the average cost of the resources acquired by Bonneville from such
Customer, exclusive of resources whose costs are allocated by Bonneville
pursuant to section 7(g) and any resources acquired under section 5(c). The
average cost of such resources shall be adjusted for any additional costs such
Customer would have incurred in order to provide itself the same quantity and
quality of power from such resources if such resources had not been acquired by
Bonneville.
(3) Bonneville shal'i develop a methodology for performing the
adjustments required by paragraph (2) by procedures comparable to those
employed in establishing the methodology referred to in subsection (e) above.
Exhibit B, Page 12 of 48
General Contract Provisions
8/25/81
(4) Costs not recovered from any Customer because of the provisions
of paragraph (2) shall be recovered from other Customers through rates
established pursuant to section 7(f), to the extent that such recovery can be
made without exceeding the allowable section 7(f) rates for such other
Customers pursuant to paragraph (2). To the extent such recovery cannot be
made without exceeding the allowable section 7(f) rates established pursuant to
paragraph (2), the unrecovered balance shall be spread on a pro rata kilowatt
and kilowatthour basis among all Firm Power purchased by Customers under rates
established pursuant to section 7(f) and not be borne by other Customer classes
under rates established pursuant to sections 7(b) and 7(c) of P.L. 96-501. The
pro rata recovery shall be limited to rates established pursuant to
section 7(f) and shall not increase the cost of the "other resources" specified
in section 7(b)(1) of P.L. 96-501.
(i) Rates for Firm Power sold pursuant to sections 14 and 17 of the
utility power sales contract shall be established in such a fashion that the
Purchaser shall not be billed for Firm Power during any twelve month rate
period in excess.of the amount to which the Purchaser was entitled to take
during such twelve period.
(j) Allocation of Certain Section 7(g) Costs. Costs of uncontrollable
events, including but not limited to costs of a terminated generating facility,
and costs of experimental resources, in excess of the cost of cost-effective
resources, shall be allocated pursuant to section 7(g) of P.L. 96-501 and shatl
be allocated among Customers on a uniform per kilowatt or kilowatthour basis.
Beginning on July 1, 1985, such costs and other costs allocated pursuant to
Exhibit B, Page 13 of 48
General Contract Provisions
8/25/81
section 7(g) of P.L. 96-501 will be reflected in the rates charged
Direct-Service Industrial.Customers only to the extent they modify. Bonneville's
wholesale power rates to public body and cooperative Customers for power that
serves such Customers' retail industrial Consumers.
(k) Bonnevi.11e's wholesale power rates shall include the amount by which
the cost of resources acquired either at the request of the Purchaser pursuant
to section 17(j) of the utility power sales contract or at the request of other
Customers under similar power sales contracts exceed the estimated revenues
Bonneville expects to recover for sale of such power pursuant to
section 19(b)(1)(E) of such contract or similar power sales contracts. Such
costs shall be recovered from Bonneville's Customers pursuant to section 7(g)
of P.L. 96-501, as the cost of an uncontrollable event.
(1) Allocation of Exchange Resnurces. The energy or capacity, or both,
associated with resources acquired by Bonneville pursuant to section 5(c)(2) of
P.L. 96-501 shall be allocated at the cost thereof to Customers purchasing Firm
Power under rates established pursuant to section 7(b) of P.L. 96-501 to the
extent that the load requirements of such Customers exceed the amount of
Federal base system resources, including replacements thereto, determined to be
available for ratemaking purpeses. Such energy and capacity allocated to
Customers purchasing Firm Power under rates established pursuant to
section 7(f) of P.L. 96-501 st�all be allocated at the cost thereof. The total
cost of resources acquired under section 5(c) of P.L. 96-501 allocated to
Direct-Service Industrial Customers purchasing power under rates established
pursuant to section 7(c)(1)(A) of P.L. 96-501 shall not exceed the average
Exhibit B, Page 14 of 48
General Contract Provisions
8/25/81
costs associated with the amount of such resources determined by Bonneville to
be required to serve that portion of the firm load of Direct-Service Industrial
Customers not served by other resources.
(m) Revenue obtained by Bonneville through the recapture of costs
associated with section 5(c)(7)(C) of P.L. 96-501 shall be equitably allocated
through Bonneville's wholesale power rates to Customer classes in proportion to
the respective prior payment of such costs by such classes through Bonneville's
wholesale power rates.
(n) Bonneville shall consult with the Purchaser and other Customers prior
to making a determination to replace reductions in the capability of the
Federal base system resources and shall make such replacements in an
economically prudent manner. Resources acquired as a replacement shall not be
from resources purchased by Bonneville under section 5(c) of P.L. 96-501. Al1
or a portion of a resource acquired from or on behalf of the Purchaser may be
used as a replacement according to the terms specified in the resource purchase
agreement. Bonneville may replace reductions in the capability of the Federal
base system resources f�r plant delays when and to the extent needed to meet
the sum of (1) Bonneville's obligation to supply Firm Power during an Operating
Year to public bodies, cooperatives and Federal agencies; and (2) Bonneville's
firm contractual obligations with its other Customers in place on the effective
date of P.L. 96-501 and which contracts are or would have been effective during
such Operating Year.
Exhibit B, Page 15 of 48
General Contract Provisions
8/25/81
D. IN REFERENCE TO OELIVERY OF POWER
9. Character of Service. Unless otherwise specifically provided for in
the contract, electric power•or energy made available pursuant to this contract
shall be in the form of three-phase current, alternating at a nominal frequency
of 60 hertz.
10. Point(s) of Delivery and Delivery Voltage. Electric power and energy
shall be delivered to each Purchaser at the Point(s) of Delivery and at such
voltage(s) as specified. Unless otherwise agreed, delivery at more than one
voltage shall constitute delivery at more than one point.
11. Metered Quantities. The amount(s) of energy, Integrated Demands
therefor and amount(s) of reactive eciergy delivered to the Point(s) of Delivery
during each month shall be determined from measurements made by meters
installed for such Point(s) of Delivery in the circuit specified.
12. Where Additional Facilities Required. If additional delivery point
facilities must be constructed or installed to enable Bonneville to supply any
increase in the Purchaser's contract demand, or in the Purchaser's requirements
if Bonneville agrees by this contract to supply such requirements, Bonneville
shall not be required to provi�fe such additional facilities unless the parties
mutually agree: (a) that Bonn�ville's providing such facilities is in
accordance with its customer service policies; (b) that reasonable utilization
has been made of existing faci'ities; and (c) that reasonable utilization of
such additional facilities will be assured. If the parties so agree,
Bonneville nevertheless shall not become obligated to supply such increase in
Exhibit B, Page 16 of 48
6eneral Contract Provisions
8/25/81
such demand or requirements until such period of time has elapsed as may be
reasonably necessary to complete the installation of such additional facilities.
13. Uncontrollable Forces Each party shall notify the other as soon as
possible of any Uncontrollable Forces which may in any way affect the delivery
of power hereunder. In the event the operations of either party are
interrupted or curtailed due to such Uncontrollable Forces, such party shall
exercise due diligence to reinstate such operations with reasonable dispatch.
14. Continuity of Service. The Purchaser, Bonneville or a Transferor may
temporarily interrupt or reduce deliveries of electric power or energy if the
Purchaser, Bonneville or the Transferor determines that such interruption or
reduction is necessary or desirable in case of system emergencies, or in order
to install equipment in, make repairs to, make replacements within, make
investigations and inspections of, or perform other maintenance work on, the
Purchaser's facilities, the Federal System or the Transferor's system. Except
in case of emergency and in order that the Purchaser's operations will not be
unreasonably interfered with, Bonneville shall give notice to the Purchaser of
any such interruption or reduction, the reaso� therefor, a�d the probable
duration thereof to the extent Bonneville has knowledge thereof. The Purchaser
or Bonneville shall effect the use of temporary facilities or equipment to
minimize the effect of any such interruption or outage to the extent reasonable
or appropriate.
15. Delivery by Transfer. If it is provided in this contract that
delivery to the Purchaser at any Point of Delivery will be made by transfer
over the facilities of a Transferor or Transferors:
Exhibit 8, Page 17 of 48
General Contract Provisions
8/25/81
(a) Bonneville shall be obligated to make available to the Purchaser at
such point only such amounts of electric power and energy as are made available
to the Purchaser by such Transferor or Transferors at such point, and the
obligation of Bonneville to make electric power and energy available to the
Purchaser at such point shall be in all respects subject to all provi�sions
contained in the agreement or agreements executed, or to be executed, if not
already in effect, by Bonneville and such Transferor or Transferors providing
for such transfer;
(b) Bonneville shall use its best efforts to effect a quality of service
to the Purchaser comparable to that provided under direct service from
Bonneville; and
(c) Bonneville's right to terminate deliveries at such point, under the
agreement or agreements providing for such transfer, shall not be exercised
while such Transferor or Transferors meet their obligations to make such
deliveries under such agreement or agreements unless (1) the Purchaser consents
thereto; or (2) Bonneville determines that the Purchaser's requirements for
electric power and energy at such point may be adequately supplied under
reasonable conditions and circumstances at another point or points (A) directly
from the Federal System (B) in�irectly from the facilities of another
Transferor or Transferors, or (C) both.
E. IN REFERENCE TO PAYMENT FOR POWER
16. Determination of and Assiqnment of Measured Demand. Bonneville in
determining Measured Demand shall exclude any abnormal Integrated Demand or
Exhibit B, Page 18 of 48
General Contract Provisions
I 8/25/81
Measured Amount due to or resulting from (a) emergencies or breakdowns on, or
maintenance of, the Federal System Facilities; and (b) emergencies on the
Purchaser's facilities to the extent Bonneville determines that such facilities
have been adequately maintained and prudently operated.
If timely determination of Measured,Demand cannot be made, such
determination shall be m�de in accordance with section 19 below.
Where Bonneville delivers, pursuant to this or other contracts, more
than one class of electric power to the Purchaser at any Point of Delivery, the
portion of the Measured Demand assigned to each such class of power shall be as
specified in such contracts. Any portion of Measured Demand which is not
assigned to other classes of power delivered pursuant to this or other
contracts shall be deemed to be a Firm Power delivery under this contract..
17. Billing At Multiple Points of Delivery. For electric power or energy
made available hereunder to the Purchaser at more than one Point of Delivery,
the Purchaser shall be billed for each Point of Delivery separately on a
non-coinc'idental basis under the applicable rate schedute in the Wholesale.
Power Rate Schedules an� General Rate Schedule Provisions Exhibit, unless
otherwise provided herein. The Points of Delivery Exhibit may provide for
combined billing on a coincidental basis under specified conditions and terms
either when delivery at more than one point is beneficial to Bonneville or when
the flow of power at several Points of Delivery is reasonably beyond the
control of the Purchaser.
If deliveries at more than one Point of Delivery are billed on a
coincidental basis for the convenience of the Purchaser, a charge shall be made
Exhibit B, Page 19 of 48
General Contract Provisions
8/25/81
for the diversity among Measured Demands at such Points of Delivery. Charges
for diversity shall be specified in the Special Provisions Exhibit and
determined in a uniform manner.among Customers.
At any rate adjustment date after January 1, 1982, Bonneville may
establish its wholesale power rate schedules applicable to this contract using
Customers' coincidental peak demands as the basis for proportioning its
recovery. In such event all diversity factors or charges applicable to
Measured Demands determined on a coincidental basis shall be invalid and
appropriate factors to reduce Measured Demands determined on a non-coincidental
basis shall be developed and applied.
18. Payment of Bills. Bills for power shall be rendered monthly and
shall be payable at Bonneville's headquarters. Failure to receive a bill shall
not release the Purchaser from liability for payment. Each calculated monetary
amount in a wholesale power 6i11 shall be rounded tb a whole dollar amount, by
elimination of any amount of less than 50 cents and increasing any amount from
50 cents through 99 cents to the next higher dollar.
If Bonneville is unable to render the Purchaser a timely.monthly bill
which includes a full disclosure of all billing factors, it may elect to render
an estimated bill for that mon:h to be followed by the final bill. Such
estimated bill, if so issued, shall have the validity of and be subject to the
same payment provisions as shall a final bill.
Bills not paid in full on or before the date specified in the Payment
of Bills section, or its successor, of the General Rate Schedule Provisions
incorporated in the Wholesale Power Rate Schedules and General Rate Schedule
Provisions Exhibit shall bear additional charges as specified therein.
Exhibit B, Page 2U of 49
General Contract Provisions
8/24/81
Remittances received by nail will be accepted without assessr�ient of
the charges referred to in the preceding paragraph provided the postnark
indicates the paynent was mailed on or before the 20th tlay after the date of
the bill,. If the 20th day after the date of the bill is a Sunday or other
nonbusiness day of the Purchaser, the next following business day shall be the
last day on which paynent may be made to avoid such further charges. Payraent
nade by metered mail and received subsequent to the 20th day raust bear a postal
department cancellation in order to avoid assessnent of such further charyes.
Bonneville may, wf�enever a power bill or a portion thereof renains
unpaid subsequent to the 20th day after the date of the bill, ana after yiviriy
30 days advance notice in writing, cancel the contract for ser•vice to the
Purchaser, but such cancellation shall not affect the Purchaser's liability for
any charges accrued prior thereto.
19. Deterriination of Estimated Billing Data If the ar,iounts of power or
energy which have been delivered hereunder nust be estinated frora aata other
than metered quantities, scheduled quantities or tabulations of hourly
interchange prepared �y the Purchaser, Bonneville and the Purchaser sliall agree
on estimated billing data to be used in preparing the bill.
20. Average Power Factor. The fornula.for deterr.iining average power
factor is as follows:
Average Power Factor
Kilowatthours
(Kilowatthours)` (Reactive Kilovolt-ar,ipere-hours
The data used in the above forr,iula shall be obtainea frora r�ieters
which are ratcheted to prevent reverse reyistration.
Exhibit B, Page 21 of 48
General Contract Provisions
8/25/81
When deliveries to a Purchaser at any Point of Delivery include more
than one class of power or are under more than one rate schedule, and it is
impracticable to separately meter the kilowatthours and reactive kilovolt
ampere—hours for each class, the average power factor of the total deliveries
for the month shall be used, where applicable, as the power factor for each of
the separate classes of power and rate schedules.
F. IN REFERENCE TO USE OF POWER
21. Changes in Requirements or Characteristics. The Purchaser will,
whenever possible, give reasonable notice to Bonneville of any unusual
increase or decrease of its demands for electric power and energy on the
Federal System, or of any unusual change in the load factor or power factor at
which the Purchaser will take delivery of electric power and energy under this
contract.
22. Electric Disturbance.
(a) For the purposes of.this section an electric disturbance is any
sudden, unexpected, changed, or abnormal electric condition occurring in or on
an electric system which cause> damage.
(b) Each party shall design, construct, operate, maintain, and use its
electric system in conformance with accepted electric utility practices:
(1) to minimize electric disturbances such as, but not limited to,
the abnormal flow of power which may interfere with the electric system of
the other party or any electric system connected with such other party's
electric system; and
Exhibit B, Page 22 of 48
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(2) to minimize the effect on its electric system and on its
customers of electric disturbances originating on its own or another
electric system.
(c) If both parties to this contract are parties to the Western
Interconnected Electric System Agreement, their relationship with respect.to
system damages shall be governed by that agreement.
(d) During such time as a party to this contract is not a party to the
Agreement Limiting Liability Among Western Interconnected Systems, its
relations with the other party with respect to system damages shall be
governed by the following sentence, notwithstanding the fact that the other
party may be a party to said Agreement Limiting Liability Among Western
Interconnected Systems. A party to this contract shall not be liable to the
other party for damage to the other party's system or facilities caused by an
electric disturbance on the first party's system, whether or not such electric
disturbance is the result of negligence by the firsi party, if the other party
has failed to fulfill its obligations under subsection (b)(2) above.
(e) If one of the ;.arties to this contract is not a party to the
Agreement Limiting Liability Among Western Interconnected Systems, each party
to this contract shall hold harmless and indemnify the other party, its
officers and employees, from any claims for loss, injury, or damage suffered
by those to whom the first party delivers power not for resale, which loss,
injury, or damage is caused by an electric disturbance on the other party's
system, whether or not such electric disturbance results from the negligence
of such other party, if such first party has failed to fulfill its obligations
under subsection (b)(2) above, and such failure contributed to the loss,
injury, or damage.
Exhibit B, Page 23 of 48
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(f) Nothing in this section shall be construed to create any duty to, any
standard of care with reference to, or any liability to any persons not a
party to this contract.
23. Harmonic Control., Each party shall design, construct, operate,
maintain and use its electric facilities in accordance with good engineering
practices to reduce to acceptable levels the harmonic currents and voltages
which pass into the other party's facilities. Harmonic reductions shall be
accomplished with equipment which is specifically designed and permanently
operated and maintained as an integral part of the facilities of the party
which owns the system on which harmonics are generated.
24. Balancing Phase Demands. If required by Bonneville at any time
during the term of this contract, the Purchaser shall make such changes as are
necessary on its system to balance *.he phase currents at any Point of Delivery
so that the current of any one phase shall not exceed the current on any other
phase at such point by more than 10 percent.
G. IN REFERENCE TO FACILITIES
25. Measurements and Installation of Meters. Bonneville may at any time
install a meter or metering ecuipment to make the measurements for any Point
of Delivery required for any computation or determination mentioned in this
contract, and if so instailed, such measurements shall be used thereafter in
such computation or determination.
26. Tests of Meterinq Installations. Each party to this contract shall,
at its expense, test its metering installations associated with this contract
i
Exhibit B, Page 24 of 48
General Contract Provisions
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at least once every two years, and, if requested to do so by the other party,
shall make additional tests or inspections of such installations, the expense
of which shall be paid by such other party unless such additional tests or
inspections show the measurements of such installations to be inaccurate as
specified in section 5 hereof. Each party shall give reasonable notice of the
time when any such test or inspection is to be made to the other party who may
have representatives present at such test or inspection. Any component of,
i
such installations found to be defective or inaccurate shall be adjusted,
I repaired, or replaced to provide accurate metering.
27. Permits
(a) If any equipment or facilities associated with any Point of Delivery
and belonging to a party to this contrect are or are to be located on the
property of the other party, a permit to install, test, maintain, inspect,
replace, repai'r, and operate during the term of this contract and to remove
such equipment and facilities at the expiration of said term, together with
the right of entry to said property at all reasonable times in such term, is
hereby granted by the o'her party.
(b) Each party shall have the right at all reasonable times to enter the
property of the other party for the purpose of reading any and all meters
mentioned in this contract which are installed on such property.
(c) If either party is required or permitted to install, test, maintain,
inspect, replace, repair, remove, or operate equipment on the property of the
other, the owner of such property shall furnish the other party with accurate
drawings and wiring diagrams of associated equipment and facilities, or, if
Exhibit B, Page 25 of 48
General Contract Provisions
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such drawings or diagrams are not available, shall furnish accurate
information regarding such equipment or facilities. The owner of such
property shall notify the other party of any subsequent modification which may
affect the duties of the other party in regard to such equipment, and furnish
the other party with accurate revised drawings, if possible.
28. Ownership of Facilities.
(a) Except as otherwise expressly provided, ownership of any and all
equipment and all salvable facilities installed or previously installed by a
party to this contract on the property of the other party shall be and remain
in the installing party.
(b) Each party shall identify all movable equipment and all other
salvable facilities which are installed by such party on the property of the
other, by permanently affixing thereto suitable markers plainly stating the
name of the owner of the equipment and facilities so identified. Within a
reasonable time subsequent'to initial installation, and subsequent to any
modification of such installation, representatives of the parties shall
jointly prepare an itemized list of said movable equipment and salvable
facilities so installed.
29. Inspection of Facili�ies. Each party may for any reasonable purpose
under this contract inspect tl�e other party's electric installation at any
reasonable time. Such inspection, or failure to inspect, shall not render
such party, its officers, agents, or employees, liable or responsible for any
injury, loss, damage, or accident resulting from defects in such electric
installation, or for violation of this contract. The inspecting party shall
Exhibit B, Page 26 of 48
General Contract Provisions
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observe written instructions and rules posted in facilities and such other
necessary instructions or standards for inspection as the parties agree to.
Only those electric installations used in comp]ying with the terms of this
contract shall be subject to inspection.
30. Facilities for Maintenance of Voltage. Bonneville shall design and
i
construct Federal Syster. Facilities to maintain, under normal conditions and
in accordance with generally accepted operating practices, the voltage at each
Point of Delivery from the Federal System within a range of 5 percent above or
below the operating voltage agreed upon by the operators of the parties to
this contract where such voltage is 25 kV or less. Where the delivery voltage
is in excess of 25 kV, Bonneville will.design and construct Federal System
Facilities to maintain such operat.ing voltage within a range of 10 percent
above or below such voltages. The parties shall jointly plan and operate
their interconnected electrical facilities so that the flow of reactive power
accompanying or resulting from deliveries of electric power and energy under
this contract will not adversely affect the system of either party.
H. MISCELLANEOUS PROVISIONS
31. General Environmental Provision.
(a) Policy. Bonneville in the performance of this contract shall comply
with all of its obligations pursuant to the National Environmental Policy Act.
(b) Affirmative Obliqations. The parties agree to:
(1) comply fully with all applicable Federal, State, and local
environmental laws;
Exhibit B, Page 27 of 48
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(2) to assist and to cooperate with each other in meeting each
other's environmental obligations, to the fullest extent economically and
technically practicable and mutually agreeable; and
(3) provide upon request of the other party a copy of pollution
abatement plans as required by the Clean Air Act, by the Clean Water Act,
by other Federal statutes, or by an agency having jurisdiction and within
a reasonable time submit evidence that such plans have been approved or
have not been objected to by agencies with jurisdiction.
(c) Breach of Obligations. A breach of this 6eneral Environmental
Provision exists only if a final determination, including all appeals, has
been entered by a court or pollution control agency or agencies having
jurisdiction that the Purchaser's facility is not in compliance with
applicable laws respecting the control and abatement of environmental
pollution.
(d) Remed Bonneville, after consulting with state or local agencies
having jurisdiction may restrict delivery of electric capacity or energy to
the Purchaser pursuant to this contract, if Bonneville determines that:
(1) a breach of this General Environmental Provision exists;
(2) such breach is resulting in a significant adverse effect on the
environment;
(3) no governmental agency has Jurisdiction or authority to impose
sanctions or to seek remedy for such significant adverse effect on the
environment; and
(4) restriction of delivery is the only appropriate remedy and bears
a reasonable relationship to the breach.
txhibit B, Page 28 of 48
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Before restricting delivery of capacity or energy pursuant to this
section, Bonneville shall give the Purchaser written notice and a reasonable
opportunity to cure the breach and to seek any legal recourse available to the
Purchaser.
32. Dispute Resolution and Arbitration.
(a) Pending resolution of a disputed matter the parties will continue
performance of their respective obligations pursuant to this contract. If the
parties cannot reach timely mutual agreement on any matter in the
administration of this contract Bonneville shall, unless otherwise
specifically provided for in subsection (b) below and, to the extent necessary
for its continued performance, make a determination of such matter without
prejudice to the rights of the other party. Such determination shall not
constitute a waiver of any other remedy belonging to the Purchaser.
(b) The questions of fact stated below shall be subject to arbitration.
Other questions of fact under this contract may be submitted to arbitration
upon written mutual agreement of the parties. The party calling for
arbitration shall serve notice in writing upon the other party, setting forth
in detail the question or questions to be arbitrated and the arbitrator
appointed by such party. The other party shall, within 10 days after the
receipt of such notice, appoint a second arbitrator, and the two so appointed
shall choose and appoint a third. In case such other party fails to appoint
an arbitrator within said 10 days, or in case the two so appointed fail for
10 days to agree upon and appoint a third, the party calling for the
arbitration, upon 5 days' written notice delivered to the other party, shall
apply to the persor who at the time shall be the presiding judge of the United
Exhibit B, Page 29 of 48
6eneral Contract Provisions
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States Court of Appeals for the Ninth Circuit for appointment of the second
and third arbitrator, as the case may be.
The determination of the question or questions submitted for
arbitration shall be made by a majority of the arbitrators and shall be
binding on the parties. Each party shall pay for the services and expenses of
the arbitrator appointed by or for it, for its own attorney fees, and for
compensation for its witnesses or consultants. Al1 other costs incurred in
connection with the arbitration shall be shared equally by the parties thereto.
The questions of fact to be determined as provided in this section
shall be limited to:
(1) the determination of the measurements to be made by the parties
hereto pursuant to section 3 above;
(2) the occurrence of changes in conditions for purposes of section 4
above;
(3) the correction of the measurements to be made pursuant to
section 5 above;
(4) whether the changes mentioned in section 6 hereof were made
"promptly";
(5) the duration of tne interruption or equivalent interruption
mentioned in section 7 abcve;
(6) the occurrence of an abnormal nonrecurring demand and the amount
and time thereof;
(7) any fact mentioned in section 21 above and in section 24 above;
(8) whether a party has complied with section 22(b) above; and
(9) the acceptable level of harmonics for purposes of section 23
above.
s
Exhibit B, Page 30 of 48
General Contract Provisions
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The questions of fact in the body of the Power Sales Contract with
Public Agency, Cooperative, Federal Agency, and Investor-Owned Utility
Purchasers to be determined as provided in this section shall be limited to:
(1) the order of receipt of written notices of addition of Firm
Resources under section 12(b)(7);
(2) whether the Purchaser's electrical system is interconnected with
i electrical systems of other utilities directly or indirectly connected
I with Bonneville's electrical system for purposes of section 13(d);
(3) whether a Purchaser's documentation under section 17(e)
i
demonstrates the actual implementation of a load curtailment program; and
(4) the level of base load under section 8.
33. Enforcement of Rights for Benefit of Transferors. If delivery of
electric power and energy under this contract is to be made by transfer over
the facilities of any Transferor or Transferors, Bonneville may enforce
Government rights under the power factor clause of the Government's applicable
rate schedule incorporated in this contract, and under sections 6, 13, 14, 21,
22, 23, 24, 27, 28, anc' 29 hereof, for the benefit of such Transferor or
Transferors, and all references to the Federal System, property, or Facilities
in said section shall be deemed to include the facilities of the Transferor or
Transferors being used to deliver electric power or energy for the account of
Bonneville.
I 34. Net Billing. Upon mutual agreement of the parties, payments due one
party may be offset against payments due the other party under all contracts
I between the Purchaser and Bonneville for the sale and exchange of electric
Exhibit B, Page 31 of 48
General Contract Provisions
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power and energy, use of transmission facilities, operation and maintenance of
electric facilities, lease of electric facilities, mutual supply of emergency
and standby electric power and energy, and under such other contracts between
such parties as the parties may agree unless otherwise provided in existing
contracts between the parties. Under contracts included in this procedure all
payments due one party in any month shall be offset against payments due the
other party in such month, and the resulting net balance shall be paid to the
party in whose favor such balance exists unless the latter elects to have such
balance carried forward to be added to the payments due it in a succeeding
month.
35. Contract Work Hours and Safety Standards. This contract, if and to
the extent required by applicable law or if not otherwise exempted, is subject
to the following provisions:
(a) Overtime Requirements. No Contractor or subcontractor contracting
for any part of the contract work which may require or involve the employment
of laborers, mechanics, apprentices, trainees, watchmen, and guards shall
require or permit any laborer, mechanic, apprentice, trainee, watchman, or
guard•in any workweek in which such worker is employed on such work to work in
excess of 8 hours in any cale.idar day or in excess of 40 hours in such
workweek on work subject to tie provisions of the Contract Work Ho�rs and
Safety Standards Act unless such laborer, mechanic, apprentice, trainee,
watchman, or guard receives c�mpensation at a rate not less than one and
one-half times such worker's basic rate of pay for all such hours worked in
excess of eight hours in any calendar day or in excess of 40 hours in such
workweek, whichever is the greater number of overtime hours.
Exnibit B, Page 32 of 48
General Contract Provisions
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(b) Violation• Liability for Unpaid Wa4es• Liquidation of Damages. In
the event of any violation of the provisions of subsection (a), the Contractor
and any subcontractor responsible therefor shall be liable to any affected
employee for such employee's unpaid wages. In addition, such Contractor and
subcontractor shall be liable to the Government for liquidated damages. Such
liquidated damages shall be computed with respect to each individual laborer,
mechanic, apprentice,.trainee, watchman, or guard employed in violation of the
provisions of subsection (a) in the sum of $10 for each calendar day on which
such employee was required or permitted to be employed in such work in excess
of eight hours or in excess of such employee's standard workweek of 40 hours
without payment of the overtime wages required by subsection (a) above.
(c) Withholdinq for Unpaid Wages and Liquidated Damages. Bon�eville may
withhold from the Government Prime Contractor, from any moneys payable on
account of work performed by the Contractor or subcontractor, such sums as may
administratively be determined to be necessary to satisfy any liabilities of
such Contractor or subcontractor for unpaid wages and liquidated damages as
provided in subsection !�).above.
(d) Subcontracts. The Contractor shall insert subsections (a) through
(d) of this section in all subcontracts, and shall require their inclusion in
all subcontracts of any tier.
(e) Records. The Contractor shall maintain payroll records containing
the information specified in 29 CFR 516.2(a). Such records shall be preserved
for 3 years from the completion of the contract.
36. Convict Labor In connection with the performance of work under
this contract, the Contractor agrees, if and to the extent required by
Exhibit B, Page 33 of 48
General Contract Provisions
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applicable law or if not otherwise exempted, not to employ any person
undergoing sentence of imprisonment except as provided by P.L. 89-176,
September 10, 1965 (18 U.S.C. 4082(c)(2)) and Executive Order 11755,
December 29, 1973.
37. Equal Employment Opportunity. During the performance af this
contract, if and to the extent required by applicable law or if not otherwise
exempted, the Contractor agrees as follows:
(a) The Contractor will not discriminate against any employee or
applicant for employment because of race, color, religion, sex, or national
origin. The Contractor will take affirmative action to ensure that applicants
are employed, and that employees are treated during employment, without regard
to their race, color, religion, sex, or national origin. Such action shall
include, but not be limited to, the following: employment, upgrading,
demotion or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. The Contractor agrees to post in
conspicuous places, available to employees and applicants for employment,
notices to be provided by Bonneville setting forth the provisions of the Equal
Opportunity clause.
(b) The Contractor will, in all solicitations or advertisements for
employees placed by or on behalf of the Contractor, state that all qualified
applicants will receive consi�eration for employment without regard to race,
color, religion, sex, or national origin.
(c) The Contractor will send to each labor union or representative of
workers with which said Contractor has a collective bargaining agreement or
Exhibit B, Page 34 of 48
General Contract Provisions
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other contract or understanding, a notice, to be provided by Bonneville,
advising the labor union or workers' representative of the Contractor's
commitments under the Equal Opporrunity clause and shall post copies of the
notice in conspicuous places available to employees and applicants for
employment.
(d) The Contractor ��ill comply with all provisions of Executive Order
No. 11246 of September 24, 1965, and of the rules, regulations, and relevant
orders of the Secretary of Labor.
(e) The Contractor will furnish all information and reports required by
Executive Order No. 11246 of September 24, 1965, and of the rules,
regulations, and relevant orders of the Secretary of Labor, or pursuant
thereto, and will permit access to said Contractor's books, records, and
accounts by Bonneville and the Secretary of Labor for purposes of
investigations to ascertain compliance with such rules, regulations, and
orders.
(f) In the event of the Contractor's noncompliance with the Equal
Opportunity clause of t'�is contract or with any of.such rules, regulations, or
orders, this contract may be cancelled, terminated, or suspended in whole or
in part and the Contractor may be declared ineligible for further Government
contracts in accordance with procedures authorized in Executive Order
No. 11246 of September 24, 1965, and such other sanctions may be imposed and
remedies invoked as provided in Executive Order No. 11246 of September 24,
1965, or by rule, regulation, or order of the Secretary of Labor, or as
otherwise provided by law.
(g) The Contractor will include the provisions of subsections (a) through
(g) in every subcontract or purchase order unless exempted by rules,
Exhibit B, Page 35 of 48
General Contract Provisions
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regulations, or orders of the Secretary of Labor issued pursuant to
Section 204 of Executive Order No. 11246 of September 24, 1965, so that such
provisons will be binding upon each subcontractor or vendor. The Contractor
will take such action with respect to any subcontract or purchase order as
Bonneville may direct as a means of enforcing such provisions, including
sanctions for noncompliance. In the event the Contractor becomes involved in,
or is threatened with, litigation with a subcontractor or vendor as a result
of such direction by Bonneville, the Contractor may request the Government to
enter into such litigation to protect the interests of the Government.
38. Assignment of Contract. This contract shall inure to the benefit
of, and shall be binding upon the respective successors and assigns of the
parties to this contract. Such contract or any interest therein shall not be
transferred or assigned by either pe.rty to any party other than the Government
or an agency thereof without the written consent of the other except as
specifically provided in this section. The consent of Bonneville is hereby
given to any security assignment or other like financing instrument which may
be required under terms of any mortgage, trust, security.agreement or holder
of such instrument of indebtedness made by and between the Purchaser and any
mortgagee, trustee, secured pa•ty, subsidiary of the Purchaser or holder of
such instrument of indebtedness, as security for bonds or other indebtedness
of such Purchaser, present or future; such mortagagee, trustee, secured party,
subsidiary, or holder may realize upon such security in foreclosure or other
suitable proceedings, and succeed to all right, title, and interests of such
Purchaser.
Exhibit B, Page 36 of 48
General Contract Provisions
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39. Waiver of Default. Any waiver at any time by any party to this
contract of its rights with respect to any default of any other party thereto,
or with respect to any other matter arising in connection with such contract,
sha}1 not be cons•idered a waiver with respect to any subsequent default.or
matter.
40. Notices and Comoutation of Time. Any notice required by this
contract to be given to any party shall be effective when it is received by
such party, and in computing any period of time from such notice, such period
shall commence at 2400 hours on the date of receipt of such notice.
41. Interest of Member of Congress. No Member of or Delegate to
Congress, or Resident Commissioner shall be admitted to any share or part of
this contract or to any benefit that may arise therefrom, but this provisiort
shall not be construed to extend to such contract if made with a corporation
for its general benefit.
42. Priority of Pacific Northwest Customers.
(a) The provisions of sections 9(c) and (d) of P.L. 96-501 and the
provisions of P.L. 88-5'..2 as amended.by section 8(e) of P.L. 96-501 ("the
Provisions") are by this reference incorporated herein.
(b) To further the policy of the Provisions, Bonneville agrees that the
Purchaser, together with other Customers in the Pacific Northwest, shall have
priority on electric power and energy Bonneville has available for sale, in
conformity with the Provisions.
(c) Bonneville agrees that it will comply with all restrictions and
requirements of the Provisions, and will perform all duties and obligations
imposed on it by the Provisions, as the Provisions existed on the effective
Exhibit B, Page 37 of 48
General Contract Provisions
8/25/81
date of this contract, regardless of any subsequent modification, amendment or
repeal of the Provisions.
(d) Bonneville further agrees that, to the extent and at such times as
may be necessary to meet demands for energy or peaking capacity at any
established rate for use within the Pacific Northwest, it will exercise its
rights, under contractual provisions required by the Provisions to be included
in contracts for the disposition of surplus energy or surplus peaking capacity
for use outside of the Pacific Northwest, to require:
(1) the return of energy delivered in connection with its supplying
peaking capacity for use outside the Pacific Northwest; and
(2) the delivery within the Pacific Northwest of energy, peaking
capacity, or both, which Bonneville has the right to receive in any
exchange for energy, capacity, or both, which it has delivered for use
outside the Pacific Northwest.
43. Resource Acquisition and Management.
(a) Principles of Resource Acquisition.
(1) Bonneville is obligated under section 6(a)(2) of P.L. 96-501 to
acquire sufficient firm resources to meet its firm loads after taking into
account planned savings from conservation.
(2) Bonneville is ok�ligated to attempt to meet its firm loads
pursuant to section 6(a)(�) with resources, including conservation,
implemented or acquired on a long-term basis pursuant to P.L. 96-501.
(3) To the extent Bonneville is unable to acquire, on a planning
basis, sufficient resources on a long-term basis to meet its firm
obligations, Bonneville is obligated to and will attempt to meet its
Exhibit B, Page 38 of 48
General Contract Provisions
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remaining firm load obligations through the acquisition of additional
resources pursuant to section 11(b)(6) of the Federal Columbia River
Transmission System Act. The obligation contained in this subparagraph is
a continuing one, and applies on both a planning basis and during the
Pacific Northwest Coordination Agreement Critical Period.
(b) Principles of Resource Manaqement. Bonneville will manage the
resources of the Federal Columbia River Power System and resources acquired
pursuant to P.L. 96-501 and the Federal Columbia River Transmission System Act
for the purpose of ineeting the loads of its customers at the lowest possible
expected cost to Bonneville, to the extent consistent with Bonneville's legal
obligations, environmental responsibilities, and prudent operating criteria,
particularly for firm loads, without reducing its obligation to acquire
sufficient resources to meet its firm loads, and with due regard for the risks
and expected reliability of such resources.
(c) Consultation with Customers. In the development of its plans and
programs to effect the provisions of this section, including for ratemaking
purposes, Bonneville wi'1 provide a timely opportunity for prior consultation
with its customers.
44. Cooperation with Regional Council. The parties will negotiate
amendments to this contract as may be necessary to permit the plan or program
I
i adopted by the Pacific Northwest Electric Power and Conservation Planning
Council pursuant to P.L. 96-501, including but not limited to provisions
pertaining to conservation, renewable resources, and fish and wildlife, to be
effective in :he manner and for the purposes set forth in sections 4 and 6 of
P.L. 96-501.
Exhibit B, Page 39 of 48
General Contract Provisions
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45. Riqhts of the Purchaser
No provision of this contract nor any
action or lack of action by the P�rchaser pursuant to the terms of this
contract shall be construed to abrogate, modify, limit or otherwise waive in
any respect any right of the Purchaser including the right of the Purchaser to
exercise its preference and priority as provided by law.
II. RELATING ONLY TO PREFERENCE AGENCIES
46. Separation of Electric Operations and Funds (All Public Aqencies).
(a) The Purchaser shall operate its electric system as a separate
department from other utility functions, if any, and shall establish and
maintain a separate fund for the revenues derived from the operation of such
system. Such revenues shall not be commingled with funds or accounts of other
departments, if any.
47. Statement of General Policies and Practices (Cities).
(a) Publicly owned city electric systems should be operated and
maintained:
(1)
�z�
primarily for the benefit of the users of electricity;
in accordance with reasonable standards of safety, reliability,
quality, and efficiency; and
(3) to maintain the cost of electric power at the lowest level
consistent with good service and proper maintenance.
(b) Revenue requirements shall insure a financially sound and
self-supporting electrical system. This requires that revenues be sufficient
for:
i
Exhibit B, Page 40 of 48
General Contract Provisions
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(1) Reasonable and necessary current maintenance and operating
expenses, including salaries, wages, cost of power.at wholesale,
materials, supplies, insurance, necessary renewals and replacements of
plant, and the establishment of reasonable funds for such purposes,
contingencies, and other lawful charges.
(2) Interest and principal of indebtedness incurred for the electric
plant and payments required to be made into any special bond funds.
(3) Oepreciation of electric system property to tfie extent not
adequately provided for by amortization of debt and by renewals and
replacement.
(4) Payments made into a governmental entity general fund via taxes
or payments in lieu of taxes. The percentage of gross electric revenues
used for this purpose shall be an amount not exceeding the greater of the
following:
(i) an amount which is equal to five percent of the gross
electric revenues, unless a greater amount is provided pursuant to
the city chart.r or agreements in effect as of December 5, 1980; or
(ii) the amount of State or local taxes levied upon the
Purchaser's electric system or its operations.
(c) A local governmental entity, when acting in its governmental
capacity, and receiving electric service, shall be a Consumer and be billed
for such services consistent with the rates charged other Consumers in the
same class
services
The Purchaser shall receive prompt payment for such electric
Payments by the Purchaser for necessary services or materials
received by the Purchaser from other governmental departments, shall be
limited to a fair, reasonable and nondiscriminatory charge.
6<hibit B, Page 41 of 48
General Contract Provisions
8/25/81
(d) Taxpayers' investments in the electric system, made through use of
general government funds of the city, should be treated in the same manner as
funds borrowed by the electric system from outsi.de sources, and should receive
a return approximating the market rate of interest on comparable securities.
Such market rate of interest shall not exceed 6 percent per ennum unless a
larger amount is approved by Bonneville.
(e) Al1 surplus revenues from retail sales remaining after meeting the
requirements of subsections (b), (c), and (d) above, where applicable, should
be applied to reduction of rates. Surplus revenues earned in any year may
properly be devoted to the purchase or retirement of system indebtedness
before maturity, to the extent that such use thereof is consistent with the
above principles and practices.
48. Approval of Contract. If the Purchaser borrows from the Rural
Electrification Administration or any other entity under an indenture which
requires the lender's approval of contracts, this contract and any amendment
thereto shall not be binding on the parties thereto if they are not approved
by the Rural Electrification Administration or such other entity. The
Purchaser shall notify Bonneville of any such entity. If approval is given,
such contracts or amendment shzll be effective at the time stated in such
contract or amendment.
49. Prior Demands
(a) If Bonneville has delivered electric power or energy to the Purchaser
at any Point of Delivery specified in this contract prior to the time this
contract takes effect, the Purchaser's Measured Demands, if any, at such point
or Measured Demands for its system for Purchasers on Computed Requirements
Exhibit B, Page 42 of 48
General Contract Provisions
8/25/81
prior to such time shall be considered for the purpose of determining-the
charges to the Purchaser for the electric power and energy delivered under
this contract, during any month in the term heneof, in the same manner as if
this contract had been in effect.
(b) If Bonneville has delivered electric power and energy to the
Purchaser at any Point of Delivery specified in this contract or in any
previous contract with the Purchaser, and such Point of Delivery is superseded
by another Point of Delivery specified in this contract, the Purchaser's
Measured Demands, if any, at such superseded point shall be considered for the
purpose of determining the charges to the Purchaser for the electric power and
energy delivered_untler'tihi:s contract at such superseding point.
III. RELATING ONLY TO PUBLIC BOOY, COOPERATIVE, FEDERAL
AGENCY AND INVESTOR-OWNED UTILITY PURCHASERS
A. IN REFERENCE TO COMPUTATION OF CHARGES
50. Effect of Reduction of Contract Oemand. If the Purchaser's contract
demand is specified in this contract and is reduced after this contract is
executed, the prior Measured Demands, if any, of the Purchaser shall, for the
jpurpose of computing charges for electric power and energy delivered
thereafter, be reduced by the amount of such reduction.
51. Combininv Deliveries Coincidentally.
(a) If it is provided in this contract that charges for electric power
and energy made available at two or more Points of Delivery will be made by
combining deliveries at such points coincidentally:
0
0
Exhibit B, Page 43 of 48
General Contract Provisions
8/25/81
(1) the total Measured Demand to be considered in determining the
billing demand for each Billing Month shall be the largest sum obtained by
adding for each demand interval of such month the corresponding Integrated
Demands of the Purchaser at a.11 such points after adjusting said
Integrated Demands as appropriate to such points;
(2) the number of kilowatthours to be used in determining the energy
charge, if any, and the average power factor at which electric energy is
delivered at such points under this contract, during such month, shall be
the sum of the amounts of electric energy delivered at such points under
this contract during such month; and
(3) the number of reactive kilovolt-ampere-hours to be used in
determining such average monthly power factor shall be the sum of the
reactive kilovolt-ampere-hours delivered at such points under this
contract during such month.
(b) If electric power and energy is made available under this contract to
the Purchaser at two or more Points of Delivery, Bonneville may, upon
two years written notice, place the Purchaser on a coincidental billing demand
basis pursuant to the terms of this section.
52. Combining Oeliveries P'oncoincidentally. If it is provided in this
contract that charges for elect.ric power and energy made available at two or
more Points of Delivery will be made by combining deliveries at such points
noncoincidentally:
(a) the total Measured Demand to be considered in determining the
billing demand for each month in the period specified in such contract
shall be the sum obtained by adding together the Measured Demands of the
Purchaser for each of such points during such month;
Exhibit B, Page 44 of 48
General Contract Provisions
8/25/81
(b) the number of kilowatthours to be used in determining the energy
charge, if any, and the average monthly power factor at which electric
energy is delivered at such points under this contract, during such month,
shall be the sum•of the amounts of electric energy delivered at such
points under this contract during such month; and
(c) the number of reactive kilovolt-ampere-hours to be used in
determining such average monthly power factor shall be the sum of the
reactive kilovolt-ampere-hours delivered at such points under this
contract during such month.
53. Power Factor Adjustment
Except as it is otherwise specifically
provided in this contract, no adjustment shall be made for power factor at any
Point of Delivery for any period of time during which the reactive power
delivered at such point is not measured.
B. IN REFERENCE TO PURCHASERS' OPERATING POLICIES
54. Retail Rates
(a) Copies of the Purchaser's schedules of retail rates, including
special contract rates, if any, in effect when this contract is executed, and
those hereafter adopted, endorsed with the effective date thereof, shall be
furnished to Bonneville, and Bonneville shall keep said rates on file. The
Purchaser agrees to serve each of its Consumers at, and in accordance with,
the rates, charges, and provisions set forth in the applicable rate schedules
on file where and as required by law or on file in Bonneville's office.
Notice of the intent to change retail rates shall be given to Bonneville
Exhibit B, Page 45 of 48
General Contract Provisions
8/25/81
either 45 days prior to their effective date or as soon as the regulatory
process allows or shall be mailed to Bonneville on the same day as a notice of
a rate change given to a state regulatory authority by the Purchaser,
whichever will�result in the later receipt of sur_h notice by Bonneville.
(b) The retail rates and charges shall be reasonable and
nondiscriminatory, consistent with the principles of the Bonneville Project
Act, subject to the right of the Purchaser to adopt retail rates designed to
achieve cost-effective conservation or renewable resources; provided,
however that rates and charges which have been approved in accordance with
the procedures of a state regulatory agency having jurisdiction shall be
deemed prima facie reasonable and nondiscriminatory.. The Purchaser shall
maintain records containing the data, analyses, and other factors which are
used to develop and form the basis for its proposed or final retail rates. At
Bonneville's request, such records as are available for public inspection
shall be supplied during the rate development process or after the rates have
been adopted.
(c) At the Purchaser's request, Bonneville shall (1) provide assistance
in analyzing and developing rate structures, including retail rate structures
that will encourage cost-effective conservation and Consumer-owned renewable
resources; (2) provide estimates of the probable power savings and the
probable amount of billing credits under section 6(h) of P.L. 96-501 that
might be realized by the Purchaser adopting and implementing such retail rate
structures; and (3) solicit additional information and analytical assistance
from appropriate state regulatory bodies and Bonneville's other Customers.
Exhibit B, Page 46 of 48
General Contract Provisions
8/25/81
C
55. Resale of Power
IN REFERENCE TO USE OF POWER
The Purchaser shall not resell Firm Power
delivered under this contract except to those Consumers and utilities within
its service area in the Pacific Northwest to the extent such Consumers and
utilities are normally dependent on the Purchaser for their firm power
supplies. The Purchaser shall not sell power from its Firm Resources in such
a manner as to increase the Purchaser's Computed Peak Requtrement or Computed
Average Energy Requirement on Bonneville in any month. These prohibitions on
resale in this section shall not be interpreted as a general prohibition
against the Purchaser simultaneously purchasing Firm Power from Bonneville and
selling power generated at its own facilities to other utilities.
D. IN REFERENCE ONLY TO PURCHASERS WITH GENERATING FACILITIES
56. Nonfirm Deliveries
(a) At the request of either the Purchaser or Bonneville, the other party
will make available on the terms stated herein, such thermal-generated energy
or hydro-generated energy as the supplying party determines, when such request
is made, that it has available for delivery to the requesting party.
(b) Neither party, by this contract, assures the other that it has, or
will have available, any thermal-generated energy or hydro-generated energy
for delivery to such other party, and the determination made by the supplier,
provided for in subsection (a) above, of the amount, if any, of such energy
Exhibit B, Page 47 of 48
General Contract Provisions
8/25/81
which it will supply to the other party shall be final and conclusive as to
both parties.
(c) Nothing in this contract shall prohibit supply of nonfirm, emergency
or breakdown relief energy under any other contr3ct.
57. Emergency or Breakdown Relief.
(a) If a breakdown of, or emergency on, tne system of either the
Purchaser or Bonneville occurs, while such breakdown or emergency exists, the
other party will make available upon request, all or such part of the electric
energy required for such system as the supplier determines it can supply,
consistent with its obligations to its other customers. The determination so
made by the supplier shall be final and conclusive as to both parties.
(b) If either party supplies electric energy to the other party pursuant
to the provisions of subsection ('a) of this section and requests replacement
thereof, the other party shall make an equivalent amount of electric energy
available to such supplier at such times as may be agreed upon by the
dispatchers of the parties hereto.
58. Effect on Generating Utility by Direct Service Industrial Customer
Power Sales Contract Provisions Bonneville will notify the Purchaser of the
proposed adoption of an annual operating plan, annual operati�g agreement or
energy accounting system in the Direct-Service Industrial Customers' power
sales contracts. If, in Bonneville's sole determination, the system of a
generating utility will be materially affected by a proposed annual operating
plan, annual operating agreement, or energy accounting system provided in the
Direct Service Industrial Customers' power sales contracts, Bonneville will
i
Exhibit B, Page 48 of 48
General Contract Provisions
8/25/81
consult with such utility prior to adopting such proposed plan, agreement, or
accounting system.
IV. RELATING ONLY TO DIRECT-SERVICE INDUSTRY PURCHASERS
A. IN REFERENCE TO COMPUTATION OF CHARGES
59. Demands. During periods when Bonneville is delivering to the
I Purchaser hourly amounts of electric power or ener9y under the terms of
agreements other than this contract, such amounts shall be subtracted each
hour from the Integrated Demand for deliveries hereunder for each such hour
after adjusting such Integrated Demands as appropriate to the Point of
Delivery.
B. IN REFERENCE TO PURCHASE
60. Use and Resale of Power All electric power and energy delivered
under this contract shall be used by the Purchaser in its own operations, and
the Purchaser shall not resell such electric power and energy delivered under
this contract, or any part thereof. If the Purchaser resells such electric
power and energy, or any part thereof, Bonneville shall immediately terminate
this contract.
(WP-PCI-0144c)
(8/25/81)
Exhibit C, Page 1 of 2
Table 1
8/23/81
Customer Service Objectives Exhibit
Tab1e 1 of the Gustomer Service Objectives Exhibit is applicable to the
Purchaser if the Purchaser is a public body, cooperative or Federal a�ency.
The provisions of Table 1 are subject to the pruvisions of Bonneville s
Custoner Service Policy, ��hich Bonneville nay amend from tine to time.
Bonneville will provide service to ir- Custor •s by constructing transmission
lines (115 kV or higher) and stepdoirn substations to the Customers utilization
voltage (12.5 kV or higher), (Customer Service Facilities), which are
necessary to provide ti�e �videst possible, diversified and efficient use nf
electric po��er. To accomplish this objective, construction of ne�a Customer
Service Facilities �aill be undertak?n following studies conds�cted jointly by
Bonneville and the Customer to deterr.iine the best engineering, econonic, and
environmental plan of service based on a one utility concept of evaluation.
Bonneville's primary transnission responsibilit� 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 Custoner
�aill assume the primary r�le for distribution of this power to the Consuner.
In recognition of this basic division of responsibility, Bonneville �aill
construct the necessary Custoner Service Facilities, providi.ng that capital
recovery is reasonably assured, unti.l such time tliat the load density in the
area under consideration reaches a point that requires construction of
custoner servicz substatiuns in r•�lativel� cl r proxinit�. At t!iis p�int,
tne Customer ��ill assune, 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 ar?a. Ther�fore, the scope of
Bonneville's participation riill be narrowed to providing the required higii
voltage transnission facilities into the load area and stepdo�an substations to
the local transmission level �+nile conforming with Bonneville's published
reliability standards, �ahich may be amended by Bonneville from time to tine.
It is the intent that the dividing line bet�,aeen Bonneville's transmission
responsibility and the Custoner's distribution responsibility be a dynanic
relationship which will shift from Bonneville to the Customer as the load
density in a particular area i.ncreases.
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 nininize inpact on the environment in
addition to meeting other economic and engineering criteria.
Bonneville's Customer Service Policy �rill encourage additio��l joint utility
planning includin� (1) better loo3-rang� planning; (2) energ/ loss reductio,�
studies, including conmon standards of conductor econonics, and distribution
voltage levels; (3) voltage
system; and (4) elirnination
separate substations and low
Exhibit C, Page 2 of 2
Table 1
8/23/81
regulation on the transmission and distribution
of duplicate facilities such as may result from
voltage circuit breakers.
(:�P-PCI-0088c
EXHIBIT C, Page 1 of 1
Table 2
8/23/81
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 s;,all not have any obligation to
Provide Custor�er Service Facilities to the Purchaser until Bonneville and the
Purchaser mutually agree upon a set of abject'-es for the provision of such
facilities.
(tJP-PCI-008&
Exhibit D, Page 1 of 7
8/23/S1
Allocation Formulas Exhibit
The Purchaser's con±ractual entitlement to and allocation of Firm Capacity or
Firm Energy shall be based on the following formulas. Bonneville's obligation
to supply Fivm Power to the Purchaser shall not be increased by any formula
beyond Bonneville's obligation prior to issuing a notice of restriction.
1. General Allocation Formulas for Firm Eneray Capability (Formula A). The
respec ive ormu as e o�a s a e ��se or etermining t e a ocation
of Finn Energy to public body, c.,operative and Federal agency Customers
during a conbined allocation of the Federal base system resources
including the Montana reservation; and (b) for determining the allocation
of Firtn Energy to investor-owned utilities.
(a) B times C (R S :�I) (b) R l!
2. 14ontana Deterr.iination Formula (Forrwla B) This fornula shall be used to
determine �rhether �lontana public body, cooperative and Federal agency
Custoners as a class would receive a greater allocation of Firr� Energy
from the combined Federal base system resources including the 1lontana
reservation than the allocation they would receive solely fron the Montana
reservation.
If tines C is greater than 14, use fornula A for det�rnining
the allocation of Firm Energy of all public body, cooperative and Federal
agency customers. If not, use formulas C and D.
3. P1ontana Reservation Allocation Formula (Formula C). This foraula shall be
use or etermi m ng t e a ocati on o i rr� nergy to �lontana publ i c body,
cooperative and Federal agency Custoners tiahen such Custoners receive a
greater allocation of Fi m Energy solely from tiie ��lontana reservation.
p tines f1+ (R+S+I�)
Exhibit D, Page 2 of 7
8/23/81
4. Allocation
ra
a For A11 Other Public
Body, Cooperative, and
na Reservation Allocation
ormu a V is orr,w a s a e used for determintng tne aiiocati
Firm Energy to public body, cooperative and Federal agency Custoners
than tAontana Custor�ers when t4ontana Customers receive an allocation
from the P4ontana reservation.
B A p times (C-M) (R S ll)
ion of
other
solely
5. General Allocation Formula for Firn Peak Ca abilit (Fornula E). These
ormu as s a e use or etermining the a ocation o irm apacity for
each month of an Operating Year for (a) public body, cooperative, and
Federal agency Customers; and (b) investor-ormed utilities.
(a) H tines C+(R S+ lJ) (b) R+ il
6. Pro Rata Formula Based on Resources Developed (Formula F). These formulae
shall be used for the allocation o intira-�ia�a �n�� »���titlements for
investor-owned utilities and any amounts of Intra-Class Excess
Entitlements remaining for the public body and cooperative class or
Federal agency class after Bonneville reduces the Intra-Class Excess
Entitlenents of such classes as specified in section 7(f)(2).
The initial allocation factor "I" is established as the ratio of resources
the Customer developed "Q'� conQared to �ihat it should have developed "Z."
The initial allocation factor 'I" is then squared to establish the value
"J" for deternining the Custoner's allocation ordinal. The "J" values for
each Customer in each class are then scaled to a per unit value by
dividing "J" for each Customer by the sun of all "J"'s to express the
final allocation factor "K" (the sum of."K" for each class equals one1.
I
J I
K=�
L
The allocation of the sum of such Intra-Class Excess Entitlenents for each
Customer is calculated by multiplying the final allocation factor "K"
times the sun for such Customer's class of the Intra-Class Excess
Entitlenents or the remaining amount of such sum, as the case r�ay be.
This process shall be repeated until the Intra-Class Excess Entitlenents
are exhausted Of tt1G :1C'�7Gli3+l�iv� w�� ��SiOGI°_YS i.^. *�ldt C�d55 d5
reduced by section 7(f)(4) are fully met. The final allocation factor "K"
nay be recalculated, if necessary, for allocations of the remaining
amounts of such sum by excluding the .J values of those Custoners in a
class whose deficiencies as reduced by section 7(f)(4) have been fu11y met.
Exhibit D, Page 3 of 7
8/23/81
P= [K times (E-T) for Customers where X is greater than zero]
+[K times (the renaining amount of (E-T) from Customers in
a class which have exceeded the limit specified belo�a after
*he allocation in the previous bracket) for such Customers
which did not exceed the limit specified below in the
allocation in the previous bracket] with such allocation
process continuing until (E-?) is exhausted. P may not
exceed (X-U) for each Custom��r in a class.
If the sum for such Customer'� class �f the Intra-Class Excess
Entitlements has not been E�nausted arter fu11y meeting the
deficiencies of the Customers in that class as reduced by section
7(f)(4), such renaining amount nf Intra-Class Excess Entitlements,
which are the amounts remaining, if any, due to section 7(f)(4),
shall be atlocated to the Custoners of eacli ctass �ahose deficiencies
in the first series of iterations were reduced pursuant to
section 7(f)(4). Such allocation shall be made in the same nanner
used in the first series of iterations by nultiplying the final
allocation factor "K" by such renaining anount of Intra-Class Excess
Entitlements or amounts remaining after previous allocations of.such
remaining amounts, as the case r�ay be. This process shall be
repeated until such remaining amount of Intra-Class Excess
Entitlements is eziiausted. The final allocation factor "K" nay again
be recalculated, if necessary, for allocatinn of the amounts
renaining after prev.ious allocations of such remaining anount by
excluding the "J" values of those Custoners in a class �ahose
deficiencies have been fully r�iet
0= [K times N for Customers ��here (U) is greater than zero]
[K tines (the renaining anount of N from Customers in a
class �ahich have exceeded the limit specified below after
the allocation in the prior bracket) for such Custoners
whiCh did not ?xceed the lir�it specified below in the
allocation in the prior bracket] with such allocation
process continuing until N is exhausted. 0 may not exceed
(U) for each Custoner in a class.
7. Definitinns
A= The larger of (a) the sum of Purchaser's Actual Firm Energy Loads,
exclusive of its Ne�v Large Single Loads, in the Year Preceding
Insufficiency; or (b) the arithnetic average of such loads for the
Year Preceding Insufficiency and the two Operating Years imnediately
preceding such year, less either the cnntribution of the Purchaser's
Firm Resources as limited belo�•� to the sun of the P�irchas?r's Assured
Fnnrmi Canahilifv for sucli year or the planning capability of the
energy output of such resources for a Purchaser on P1etered
Requirements.
Exhibit D, Page 4 of 7
8/23/81
The Purchaser's Firm Resources to be considered above shall be
limited to those resources tivhich are included as 5(b)(1)(A) resources
in the Purchaser's Fittn Resource Exhibit.
B= The total of A for all public body, cooperative and Federal agency
Customers.
C= The firm energy capability for the Operating Year or the firm peak
capability for each month of such �ear of the Federal base system
resources described in section 7(c) and 7(d).
D= The total of A for all Montana public body, cooperative and Federal
agency Customers.
E= The respective sum of the Intra-Class Excess Entitlements for each
class of Customers.
G= The larger of the Purciiaser's Actual Fi m Peak Load, exclusive of its
New Large Single Loads, for each month in the Year Preceding
Insufficiency or the arithmetic average nf such load for such months
in the Year Preceding Insufficiency and the two Operating Years
innediately preceding such year, less either the contribution of the
Purchaser's Finn Resources as ]imited below to the Purchaser's
Assured Peak Capability for such �onths or the planning capability_ of
the peak output of such resources for such months for a Purchaser on
��etered Requirenents.
The Purchaser's Firm Resources to be considered above shall be
limited to those resources v�hich are included as 5(b)(1)(A) resources
in the Purchaser's Fi m Resource Exhibit.
H= The total of "G" for each month of, the Operating Year for all public
body, cooperative and Federal agency Custoners.
I= The initial allocation factor which is determined by comparing �+hat
the Purchaser developed "Q" to �ahat it should have developed "Z."
"I" shall be deemed to be 0.01 for Custo�ers �ahere "I" is less than
0.01 but greater than zero.
I J= The value which is used to establish the final allocation factor for
determining the Purchaser's share of the sun for such Customer's
i class of tlie Intra-Class Excess Entitlenents.
K= The final allocation factor for members of each Customer class.
L= The respective sum of "J" for all Customers in each class of
Customers.
Exhibit D, Page 5 of 7
8/23/81
M= The firm energy capability as determined by Sonneville of the
reservation under law of electric power primarily for use in the
State of f4ontana.
N= The remeining amount of Intra-Class Excess Entitlenents for a class
after the deficiencies of the Customers in a class, as reduced by
section 7(f)(4), have been fully met as specified in Section 7(f)(3).
0= The allocation of the remaining ar�ounts c` Intra-Class Excess
Entitlements to Customers in each res^ective class whose entitlements
under section 7(f)(3) have :,een redu�ed pursuant to section 7(f)(4)
after meeting the deficiencies of all Customers in such class as
reduced by section 7(f)(4). "0" r�a;/ be zero for the Purchaser.
The initial allocation for each Customer fron the sun for such
Customer's class of the Intra-Class Excess Entitlements as specified
in section 7(f)(3).
The best estinate of the sum of the firm energy capability for the
0perating Year at the time of the deternination of the estinated
allocation prior to such Operating Year or the fi m peak capability
for each month of such year of (1) resources (including conservation)
acquired from or on behalf of the Purchaser as spec9fied in
section 7(e); (2) conservation and direct application renewable
resources of the Purchaser ��hich have reduced the Purchaser's Actual
Firm Load in an amount which the Purchaser has documented and that
Bonneville has agreed was accomplished, and (3) the portion of tiie
Purchaser's Firm Resources which are included as 5(b)(1)(B) resources
in its Firm Resource Exhibit.
R The best estimate
Operating Year for
allocation is made
year of resources
of the Purchaser a
of the sum of the firro energy capability for the
which the detemination of each estimated or final
or the firm peak capability for each month of such
(including conservation) acquired fron or on behalf
s specified in section 7(e).
S= An additional allocation of fi m peak and fi m energy capability
necessary to ensure that the Purchaser's allocation is not less than
the amount of Firm Power actually supplied by Bonneville to neet its
obligation under section 14 or section 17, as applicable, to supply
Firm Capacity in each month and Fi m Energy in the Year Preceding
Insufficiency. "S" mdy be zero for•the Purchaser.
T= The respective sun of "S" for all Custoners in the public body and
cooperative or Federal agency class. "T" is zero for the
investor-owned utility class.
Exhibit D, Page 6 of 7
8/23/81
U= The firm peak and firm energy capability necessary to serve the
amount which the Purchaser's Actual Fi m Peak Loads or Actual Firm
Energy Loads would have been reduced by ar�y cost-effective
conservation programs which Bonneville offers to the Purchaser and
the Purchaser declines to i�piement. Such a�ount of firm peak
capability and firm energy capability shall be determined based on
such programs' standards for measuring load reductions but shall not
include anounts of firri peak capability or firri energy capability to
the extent the Purchaser implemented similar measures which
accomplished the same purposes and �aere comparable to Bonneville
programs in enough ways to evaluate their degree of effectiveness.
In the event the Purchaser implemented equivalent conservation
programs which Bonneville determines resulted in reductions less than
would have resulted from the Bonneville conservation programs,
Bonneville shall reduce the Purchaser's allocation by the difference
between the reductions which would have resulted from the Bonneville
conservation programs and the reductions resulting from the
Purchaser's conservation programs. "U" shall not exceed "X" for
determining the Purchaser's entitlement to Intra-Class Excess
Entitlements.
1� The Purchaser's allocation of the sum for the Purchaser's class of
the Intra-Class Excess Entitlements based on the f.ollowing formulas:
(1) l� X for all Custoners in a class, if (E-T) is equal to or
greater than Y.
(2) tJ P- U+ 0 for all Customers in a class, if (E-T) is less
than Y.
X= The remaining deficiency of firm peak caoability or firr.i energy
capability bet�oeen the Purchaser's allocation prior to the Purchaser
receiving an entitlenent of Intra-Class Excess Entitlements for its
class and the amount of Firm Power necessary to meet Bonneville's
obligations pursuant to section 14 or section 17, as applicable, to
supply Firm Capacity for each month or Firri Energy for an Operating
Year. Such remaining deficiency for an Operating Year shall be the
difference between the Purchaser's Estimated Firm Load, if provided,
or Bonneville's estimate of the Purchaser's Actual Firm Load and the
sum of either the Assured Capabilities for a Purchaser on Computed
Requirements or the planning capability of its Firm Resources for a
Purchaser on 14etered Requirements and the Purchaser's allocation of
"C". "S" and "R."
Y= The respective sum of "X" for all Custoners in each class.
Exhibit D, Page 7 of 7
8/23/81
Z= The load growth of the Purchaser since passage of P.L. 96-501 and any
deficits of investor-owned utilities determined by subtracting from
Bonneville's estimate of the Purchaser's Actual Firm Load for the
Operating Year for which the atlocation �aill apply either (1) the
Purchaser's Actual Firm Load in the '82-'83 Operating Year for public
body, cooperative and Federal agency Customers; or (2) the
contribution to the Purchaser's Assure�, Capabilities for such
Operating Year for a Purchaser on Comp��ted Requirements or the
planning capability for a Purchaser on Metered Requirements of any
Firm Resources which were included as 5(b)(1)(A) resources in the
Purchaser's Firm Resource E_,nibit fui investor-owned utilities. "Z"
shall be deemed to be one for Custoners �vhere "Z" is less than one.
(IJP-PCI-0088c)
Exliibit E, Page 1 of 5
8/23/81
Power Scheduling Procedures Exhibit
1. Submission of P Amounts
(a) Prescliedules shall be completed by Bonneville and the Purchaser on
,each day �ahich both Bonneville and the Purchaser observe as a regular
workday (llorkday) for each hour of the follo�aing day or days through
the following llorkday unless otherwise agreed.
(b) The Purchaser shall submit :scimates �f prescheduled anounts on such
!Jorkdays by 1100 hours Pacific Time (PT) or 2 hours after Bonneville
issues its report of the Chief Josepii Project uncoordinated
discharge, �ahichever is later.
(c) Final orescheduled ar�ounts shall be subnitted on such day by
1400 hours PT or 2 hours after tlie estimated preschedules provided
pursuant to subsection (b) abov? have been subnitted, whichever is
later.
(d) Final prescheduled amounts shall be subnitted no later than
1000 hours PT on such day �ahen both Bonneville and the Purchaser are
offering energy for sale under the Exportable Energy Agreement
(Bonneville Contract IJo. 14-03-73155).
(e) If Bonneville limits the amounts of power it nakes available during
Neavy Load Hours pursuant to section 17(g)(1), it shall inform the
Purchaser s representative of its intention to nake such limitation
by 1200 hours PT of the day prior to tne erTective date of suc�
linitation.
(f) Bonneville nay request by 1200 hours PT on any lJednesday estir�ates of
energy that the Purchaser anticipates it wili schedule �iith
Bonneville for each day for the ensuing ten da;s, and the Purchaser
shall submit such estinates to Bonneville by 1200 hours PT on the
'lorkday fol l o»i ng the request.
2. Nourly Distribution of Scheduled Amounts.
(a) This subsection (a) applies to all Conputed Requirenents Purchasers,
except as provided in subsections (b) and (c) below.
(1) The Purchaser nay preschedule during Heavy Load Hours up to the
amounts Bonneville is obligated to make available pursuant to
section 17(g)(1).
(Z; ;he P�rchaser �:ia; �rescfiedule d;;rin� Lig�it Load Hours o❑ an/ �a,�,
ttonday through Saturday, not more than 160 percent of the sun of
(A) The Purchaser's Conputed Average Energy Requirement and
Exhibit E, Page 2 of 5
8/23/81
(B) The amount, if any, by �iliich the Purchaser's Computed
Average Energy Requirement (CAER) exceeds the average
amount of energ;/ which the Purchaser preschedules fron
Bonneville under this agreenent during Heavy Load Hours of
the same calendar day (AAE during HLH).
(This Light Load Hour (LLH) linit can be expressed nathenatically
as:
v10N-SAT LLH SCHEDULE LIMIT 150`,'0 [CAER +(CAER AAE
during HLH)]
This fornula �aill allow approximately 120 percent of the nonthly
Computed Average Energy Requirement to be taken on any �+eek day
having 15 Heavy and 9 Light Load Hours. It will also allor� a
higher limit on Light Load Hours to the extent the Purchaser
ciiooses to nove energy froin Heavy Load Hours into Light Load
Hours or Bonneville exercises its right to limit deliveries
during Heavy Load Hours pursuant to section 17(g)(1).)
(3) The Purchaser nay preschedule during all hours on Sunday as
follows: not nore than 120 perce�t.of the Purchaser's Conputed
Average fner9y Requirenent bett�een 0700 and 2200 hpurs PT and not
more than 320 percent of the Purchaser's Conputed Average Energy
Requirenent on all other hours; provided, however, the total
anount of energy prescheduled during each seven day period ending
on 2400 hours PT Sanday shall b� li�i�e7 to t,i� �roduct of
168 hours and 120 percent of the Purciiaser's Conputed Average
Energy Requirement.
(4) Except as provided in section 2(c)(2)above, the Purchaser may
preschedule in any day up to the greater of the product of
8 hours and the Purchaser's Conputed Peak Requirenent or the
product of 24 hours and 120 percent of the Purchaser's Computed
Average Energy Requirenent. If the Purchaser preschedules energy
on any day using this rule wiiich exceeds the product of 24 hours
and 120 percent of the Purchaser's Conputed Average Energy
Requirement, the Purchaser shall return such exc?ss �uithin the
calendar day follo�aing the taking of sucii energy or later if
agreed by Bonneville and the Purchaser, at a rate no greater than
100 percent of the Conputed Peak Requirement. An adjustment �aill
be r�ade in the billing process to reflect the nbligation to
return energy associated ��ith capacity taken on the last day of
the billing period.
(5) In the event the Purchaser is unable to presc'iedule energy up to
the anounts other��i se al l otiaed i n t,ii s secti on on certai n i�ours
due to nininum generation li�aitations of the Purchaser's Firn
Resources, Purchas?r May, by prior agreenent of eonneville,
preschedule energy during �*_h2r �.u�s �o '=.�?s
Exhibit E, Page 3 of 5
8/23/81
exceed the preschedule limits othenaise available to the
Purchaser in this section. If such inability is due to
linitations imposed by Bonneville pursuant to section 17(g)(1),
Bonnev:lle shall agree to ti�e Purcliaser's request unless
Bonneville determines tliat operating conditions on its systen
prevent it from Making such delivery ��ithout spilling �aater �ihich
it �vould not other�+ise have spillee, purchasing power +ahich it
eiould not otherwise have purchased,_or restricting deliveries of
power to its own firm loads, which for the purpose of this
paragraph (1) shall inclua� deli�� ries ��hich Bonneville would
otherwise have made to �ts direct-service industrial purchasers.
If needed by Bonneville, suc�i preschedule will be reducible at
Bonneville's option down to the scheduling linits other��ise
available to tlie Purchaser in this section at any tine prior to
the actual delivery. If scheduled anounts arranged under this
para3raph exceed tiie 1 i ni ts other:ii se al l o��ed i n thi s secti on,
the amounts in excess of sucli limits will not be used in
deternining any unauthorized increase or M?asured Demand of the
Purchaser.
(b) In addition to and not in limitation of subsection (a) above,
Conputed Requirements Purchasers shalt arrange schedules according to
this subsection (b): Since the deternination.of tlie Purchaser's
Computed Peak Requirenent and Computed Average Energy Require^�ent
depends on the relationship of the Purchaser's Assured Capabilities
and Actual Firri Loads, such requirenents for any nonti� cannot be
;s zach Purc9aser nust
.:�;._,...i,t.:.; a,
estimate its own firri lo and the best position to follow the
load development fron day to day, it will be the Purchaser's
responsibility to requ°st presc!��dules of Firr,i Power, including any
increase over previously established demands, on the basis estimated
by th� Purchaser to result in tiie most advantageous purchase of the
power to be billed at the end of the month. !lhen used in this
section 2 r�ith respect to Conputed Requirenents P�rchasers, the terr�s
Conputed Peak Require�aent and Conputed Average Energy Requirenent
�ean the Purchaser's best estimate of such quantities. The Purchaser
shall have tlie right to change its estimate of its Computed Peak
Requirement and Conputed Avera3� Energy Requirenent at any tine based
on correspondiny changes in the Purchaser's estinate of its firri
loads or to reflect changes in its Assured Energy Capability alloeied
by the provisions of section 17(d). Changes in prescheduled amounts
shall be as permitted in section 3 below.
(c) In addition to subsection (a) above, Customers purchasing on the
basis of Planned Computed Requirenents or Contracted Requirenents
c!iall erh�a��i� arrnr�ltoa tn "i;c viha�rtinn (C�.
(1) Except as otherrii se provi ded i n thi s exhi bi t the Purcliaser slial l
not schedule Firn Power under this contract in any month in
Exhibit E, Page 4 of 5
8/23/81
excess of its Computed Average Energy Requirement tines the
nwnber of hours in such nonth.
(2) If during a nonth, a Planned Computed Requirements or Contracted
Requirenents Purchaser �aliicli has a Conout?d Average Energy
2equirenent greater than 20 percent of its Computed Peak
Requirement for such r�onth reaches the linit for scheduling Firn
Po�ver specified in paragraph (1) above, such Purchaser s!iall
thereafter during such nonth be subject to the provisions of
section 2(a)(4) above, except: (1) the Purchaser's Conputed
Average Energy Requirenent as used in section 2(a)(4) shall be
zero; and (2) that, under adverse operating conditions,
Bonneville may request that the Purchaser return energy delivered
pursuant to section 2(a)(4) by the later of six hours fron
delivery or the end of tiie current Heavy Load Hour period and the
Purchaser shall use its best efforts to comply with such request,
rop vided, however, that, in any event, the Purchaser siiall return
such energy prior to 0700 !�ours of the fotloriing day. For
purposes of this paragraph (2), adverse operating conditions
shall nean an inability of the Government's generating systen to
increase its generation to produce such energy �aithout subsequent
spillage of water on t!�e Governnent's generating systen, without
requiring a subsequent purchase of power by Bonneville, or
��ithout subsequently causing Bonneville to violate any operating
restriction on the Governnent's generating syster�.
J. 1.�IQiIUe� �i�.i i co�..�LU��c�.
(a) In the application of the proc�dures controlling changes fron
preschedules, it is Bonneville's intention to comply �aith the
Purchaser's requests for sc{iedule clianges to tlie maximum extent
practicable, so as to maximize the power production of the region's
resources in the �ost efficient r�anner possible. Bonneville shall
comply �aith requests for schedule changes to the extent such changes
are tvithin the capability of tlie Federal systen unless, due to the
lateness of the request for change, Bonneville �aould suffer energy,
capability, or economic loss (not including any economic loss
resulting from naking the requested change instead of �aking
secondary sale) that �aould liave been avoided if this request had been
nade at the preschedule time. .If Bonneville �,�ould suffer such loss
and if the Purcliaser agrees prior to delivery to reinburse Bonneville
for the estimated loss in order to nake the change, Bonn?ville shall
��ake such change. The Purchaser shall endeavor to avoid requesting
schedule changes.
fh1 FYreot un�ior ?n�rgenc;� conditions, requests for sched!ale chang?s
shall be subnitted no later than 20 minutes before the beginning of
tfie autonatic generation control process ramp tine used by
Bonneville. This ranp tiroe noai begins 10 minutes before the hour.
Exhibit E, Page 5 of 5
8/23/81
(c) l�ith prior agreement of Bonneville, the Purchaser mdy increase its
schedules of capacity up to tlie amounts the Purchaser had a right to
preschedule in a nanner �ahich is not otherwise provided for, if the
Purchaser agrees to return the energy associated with such.increase
within 6 hours.
(d) IJhen requested by Bonneville, the Purci••aser sliall nake schedule
changes in blocks of 6 hours at one tim�, subject to subsequent
changes permitted by this exhibit, to enahle Bonneville to develop a
revised operational plan in an efficiant manner. Such schedule
changes shall incorporate t":. Purchr.__r's latest and best information
about its future operation.
(e) In addition to the schedule changes allo�aed pursuant to
subsections (a) through (d) above, if the Purchaser has been
designated to purchase on the basis of Actual Computed Requirenents,
it may make schedule changes without limitation by Bonneville subject
to the following conditions:
(1) The Purchaser is not delivering energy for sale under the
Exportable Energy Agreement concurrently with Bonneville;
(2) The Purchaser is making full use of the capability of its Fi m
Resources up to the Assured Capability levels of such reso��rces
or such capability is being replaced witn purchases or
resources, and tiie Purchaser is naking full use of its rights to
change schedules under otiier contracts; �rov�ided, h��,iever, that
h�droelectric resources need be used only to e maximun extent
possible �+ithin the linits of nomal pondage and available
streamflo�as; and
(3) The schedule change is necessary in order to neet the Purchaser's
Actual Firm Loads; or the changed schedule would serve to
conserve energy which ti+ould otlierwise be lost to the region.
(l!P-PCI-0088c)
Exhibit F, Page 1 of 3
8/23/81
Relief from Overrun Exhibit
The following procedures are available pursuant to section 19(b)(1I(Bl for use
by Purchasers to avo;d certain unauthorized increase charges wliich ��ould
otherti�ise occur d�e to load estimating errors. If used, such procedure s+iall
be followed in its entirety in the order set forth belo�a. These procedures
are available only to Purchasers which purcliase �n the basis of Actual
Conputed Requirenents.
1. Conversion of ileasured Ar�ounts to �'�nfirm �ner If any of the
Purchaser s tleasured Anounts dur�ng Heavy �oad Hours during the �onth
exceed the Purchaser's Computed Idaximun Requirement for the corresponding
hour, Bonneville shall co�vert such excess to nonfirri energy to the extent
that 3onneville deternines it would have had additional nonfirra energy
available for the Purchaser during such hours. The ar�ounts so conver±ed
shall be billed as nonfirr,i energy pursuant to section 19(b)(2)• The
Purchaser's t4easured Amounts for such hours and the Purchaser's 1leasured
Energy for the nonth shall be reduced by the anounts so converted to
nonfir,� energy. If the Purchaser's Ideasured Denand is based on a �leasured
Anount which is reduced pursuant to this s?ction, such �4easured Demand
shall be-reduced by the anount converted to nonfirr,i ener9y for such hour.
2. 'landatory Adjustment of Assured Capability. If tlie Purchaser's 1leasured
Energy for the month, after reduction purs��ant to section 1 above, exceeds
the Purchaser's Coinputed Energy �9axinun for such nonth, tiie Purchaser
shall, to the extent permitted by section 17(d1> reduce its Assured Energy
Capability for r�ch �on*h, to tL� extent necessary to increase its
Computed Energy tlaximun so that it equals its Measured Energy, after
reduction of such Pleasured Energy pursuant to section 1 above, for such
month. The P�rchaser's Conputed Average Energy ReQuirement and Co�puted
i4axinw-� Requirenent for such month shall be increased as appropriate to
reflect the decr?ase, if any, in the Purchaser's Assured Energy Capability
rnade pursuant to this subsection 2.
3. Conversion of t�leasured Energy to Nonfirm Energy. If the Purchaser'S
easure nergy or the nonth, after reduction pursuant to section 1
above, exceeds its Conputed Energ;/ t1axinun for such nonth, after
adjustnent pursuant to section 2 above, Bonneville shall convert a portion
of such excess to nonfirr.i energy. Such portion shall be equal to the
product of such excess and the ratio of the number of Ligh.t Load Hours
during such month that 6onneville deternines it �•�ould have had additional
nonfirn energy available for the Purchaser to the total nunber of Light
Load Hours in such month. The anounts so converted sha11 be billed as
nonfir.:, 2rer3;; Purs�ant �o section 1^ib)i°)• T'.ie Parc:ws�r's iteasured
Energy for the month shall be furtfier reduced by the amounts so converted
to nonfi m energy.
4. Disposition of Uemand Overrun. If any of the Purchaser's t4easurea �+mounts
during eavy Load ours during the month, after reduction pursuant to
section 1 above, exceed the Purchaser's Conputed Maxinun Requirenent for.
Exhibit F, Paye 2 of 3
�/2's/81
the corresponding hour, after ad�ustcient pursuant to section 'L.above, but
none of such hteasured Mounts are greater than 11U percent of suci�
Computed Maxir,wm Requirer,ient for the correspondiny hour, tlie laryest of
the amounts by which the Purchaser's reduced Pieasurea Araounts auriny sucii
hours exceed the Purchaser's acuusted Coraputed Maxinura keyuirer�ent for tiie
corresponding hour shall, subject to aqjustr�ient pursuant to section 6
below, be billed at the aenana charye for reserve power pursuant to
section 19(b)(3) and a service charge for the portions of such hleasureo
Arrounts which exceed such Conputed Maxiraun Requireraents for corresponuiny
hours shall, subject to aqjustnent pursuant to section b below, be billeo
at the charge for energy advanced during Heavy Loaa Hours pursuant to
section 19(b)(4). If any of the Purchaser's Measured Ar,�ounts auriny Heavy
Load Hours during the rnonth, after reduction pursuant to section 1 above,
exceed 110 percent of the Cor�iputed hlaxinura Requirement for the
corresponding hour, after adjustr,ient pursuant to section 2 above, a ci�arye
for the portions of such �4easured Ar�ounts which exceed such Coi,�pute�
Maxinum Requirements for corresponding hours shall be billed as
unauthorized increase pursuant to section 19(b)(1)(A). Tlie Purchaser's
hleasured Energy for the nonth shall Ge further reauced by tlie ar.iounts
billed as unauthorized increase.
5. Relief from Energy Overrun. If.the Purchaser's hieas�rea Eneryy for tiie
nont a ter re uction pursuant to sections 1, 3 and 4 al,ove, is less tl�an
the relief r.iargin set forth below, the Purclraser.shall return the �,urtion
of such Pteasured Eneryy in excess of the Purchaser's Coi,�Nuteu Eneryy
Maxinun, after ad,justr,ient pursuant to section 2 above, at r,�utually
agreeable tir,ies and rates �+ithin 3U aays after Bonneville notifies tl�e
Purcliaser tfiat such return is requiren or at tii,ies ana rutes otV�er�+
nutually agreed upon. A service cliarye for the excess eneryy so returneu
shall be billed at the charge for eneryy advanceo auriny unspecifieo heavy
or Light Load Hours pursuant to section 19(b)(4). To the extent such
excess is not so returned it shall be billed as unautiiorizea increase
pursuant to section 19(b)(1)(A). Tlie Purciiaser's hieasureo Eneryy for the
nonth shall be further reducea by the excess.ar�iounts returneo to
Bonneville or billed as unauthorized increase. The relief r,�aryi� is
101 percent of the Purchaser's Coriputed Eneryy Iiaxir,wr,i fur each r.�onth,
after adjustment pursuant to section 2 above, except ttiat in the r,ionth
before the r,ionth in which the Purchaser's Flexibility Account balance nust
be brought to zero pursuant to section 17(d)(1)(A) the relief r,iaryin is
103 percent and in the nonth that the Purchaser's Flexibility Account r.iusi
be so brought to zero the relief nargin is 105 percent. If the
Purchaser's Measured Energy for such r,ionth, after reduction pursuant to
sections 1, 3 and 4 above, exceeds the relief naryin set forth above, tiie
entire excess over its Computed Energy Diaxiriun, after a�ust�.�ent pursuant
to section 2 above, shall be billed as unautViurized increase purs�ant to
section 19(b) (1) (A). The Purchaser's Pieasured Eneryy for tlie r,iontii sl�all
be further reduced by the araounts billed as unauthorizea increase.
Exhibit F, Paye "s of
8/'L3/�1
6. Ac�justnent of Demand Overrun. If any of tlie Purcliaser's f•�easured Eneryy
or t e nont ts i ed at the unauthorized increase rate pursuant to
section 5 above and if any denand iias been billea at tiie oer,�ana charye for
reserve power and if any energy has been billetl at tlie service charye
pursuant to section 4, the ar�ount of deraand so uilled ana the araount of
energy so billed shall be reduced by ar.iounts obtainea by nultiplying tiie
ar,iounts billed pursuant to section 4 by ti�e ratio of the ar,iount billeo at
the unauthorized increase rate pursuant to section 5 to the ar,iount of
energy billed at the service ctiarge pursuant. to section 4. If such ratio
is greater than one, the amount of denar�d billed at the der,iana charye for
reserve power and the amount energy ;lled at the service charye
pursuant to section 4 shall be reduced to zero.
7. Disposition of Renainder. The Purctiaser's Measured Fviounts, h�easured
enan an teasure nergy for the nonth, after reduction anu aa�usti,�ent
pursuant to section 1 throuyh 6 above, sViall be billed Nursuant to
section 19(b)(1)(A).
(WP-PCI-0088c)
a
Exhibit G, Page 1 of 1
8/21/II1
Service Charges Exhibit
Section I. Service char es arisin from the Felief from Overrun Exhibit.
The following charges shall be applied to services provided by Bonneville
pursuant to this agreemenf.
1. For energy advanced during Heavy Load Hours 3.0 nills per kilowatthour.
2. For energy advanced during uns�_cified ��.:avy or Light Load Hours
2.0 mills per kilov�atthour.
3. Heavy Load Nours and Light Load Hours mean the same herein as in the body
of this agreement.
Section II. Service char es arising fror� services rovided by Bonneville to
��o.. e tMrtl PSOl1PC2S or o er resources w ic are wi �n onnevi e s
au oma ic generation contro� area.
No Charges have been established as of the date of execution of this agreement.
(41P-PCI -0088c
Exhibit H, Page 1 of i
Contract No. DE-MS79-81-BP90432
The City of Ashland
Effective on the effective date
of this contract
POINTS OF DELIVERY
1. NEVADA STREET POINT OF DELIVERY
Location: the point in the Company's Nevada Street substation where the
12.5 kV facilities of the Company and the Purchaser are connected;
Voltage: 12.5 kV;
Metering: in the Government's Nevada Street substation, in the 12.5 kV
circuit over which such electric power and energy flows;
2. OAK KNOLL POINT OF DELIVERY
Location: the point in the Company's Oak Knoll substation where the
facilities of the Company and the Purchaser are connected;
Voltage: 115 kV;
Metering: in the Company's Oak Knoll substation in the 12.5 kV circuits
over which such electric power and energy flows;
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Exhibit J, Page 1 of 1
Contract No. DE-MS79-818P90432
City of Ashland
Effective at 2400 hours on
the date of execution of
this agreement
Not applicable
Assured Capability Exhibit
Assured Peak Capability
(MW)
Assured Energy
Capability
(Avg. MW)
r v
Exhibit K
Table 1, Page 1 of 1
Contract No. DE-MS79-81BP90432
City of Ashland
Effective on the effective date
of this contract
New Large Single Load Determinations Exhibit
(This exhibit is for information purposes only and shall not control any
determinations made pursuant to section 8 of this contract or section 3(13) of
P.L. 96-501.)
TABLE 1
LIST Of PURCHASER'S LOADS WHICH ARE NEW LARGE SINGLE LOADS
Description of Facility Location
I.R7�i:�
EXn;b;t K
Table 2, Page 1 of i
Contract No. DE-MS79-81BP90432
City of Ashland
Effective on the effective date
of this contract
New Large Single Load Determinations Exhibit
(This exhibit is for information purposes only and shall not control any
determinations made pursuant to section 8 of this contract or section 3(13) of
P.L. 96-501.)
TABLE 2
LIST OF PURCHASER'S LOADS AND AMOUNTS WHICH WERE
CONTRACTED FOR, OR COMMITTED TO PRIOR
TO SEPTEMBER 1, 1979
Description of Facility
Location
Yearly Amount
of Firm Energy
(Avg. MW)
None
��Y
Revision No. 1.
Exhibit L, Page 1
Contract No. DE-MSiy-ui-tsryv4sz
The City of Ashland
Effective at 2400 hours on the
date of execution
Special Provisions Exhibit
The following special provision(s) apply only to the purchaser. Unless
otherwise provided in the following provision(s) the term of the following
provision(s) shall be the same as the term of this Agreement. If the
following provision(s) conflict with any other provision of this Agreement,
the following provision(s) shall prevail.
1. (a) The purchaser sha11 limit transfer of revenues to the City's general
fund equal to the amount of franchise tax payments specified in City
Ordinance No. 1876, passed and adopted by the City on April 9, 1976.
(b) Tax payments to the City in excess of amount specified in (a) shall
be allowed only to the extent such taxes are noted on and made part
of the utility customers' power billings. Tax revenues generated in
this manner shall be kept separate and apart from revenues generated
by normal utility operations.
2. Deliveries by the purchaser over its distribution system to Pacific Power
Light Company shall, after adjustments for losses, be deducted from
amount delivered to the Purchaser at the points of delivery in the Point
of Delivery Exhibit.
UNITED STATES OF AMERICA
Departmen of Energy
By
,ACTiN onnevi e Power A i m strator
Date of Execution
CITY OF ASHLAND
BY ���iLG�c�-ir��ilGt�r�—
Ti tl e
Date 9�5�
(WP-PKL-2394c)
s
��t<�
RESOLUTION N0. 85- O�
A RESOLUTION OF THE CITY OF ASHLAND, OREGON
APPROVING AMENDATORY AGREE:4EPdT TO PO41ER SALES
CONTRACT WITH BONNEVILLE PO47ER ADi?INI�TRATION
4'HEREAS, the City and the Bonneville Power Administration
are parties to a 20 year power sales contract
which includes a restriction in Exhibit "L"
thereto with respect to transfers to the City's
General Fund; and
WHEREAS, the parties desire to amend Exhibit "L" to brine said
exhibit into confornance with Section 47 of the
General' Contract Provisions.
NOFJ, TFIER�FOP.E, BE IT RESOLVED by the Mayor and City Council of
the City of Ashland, Oregon, as f_ollows:
SECTION 1. The attache3 Revision No. 1 to Exhibit "L" of
Power STes Contract Pdo. DE-MS79-81-BPG0432 is hereby approved.
SECTION 2. The Mayor and City Recorder are hereby authorized
an�Tdirected to sign Revision "do. 1 on behalf cf 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
day of January, 1985.
�«�lL:��
Nan .�ran�C7in
City P.ecorder
a
i
SIGNED and APPROVED this�day of 1985.
,��ti¢�fz��
'L. Gor MecZaris
Mayor
r
(AUTHENTICATED COPY)
Revision No. 1.
Exhibit L, Paqe 1 of 1
Contract No. DE—MS79-81—BP90432
The City of Ashland
Effective at 2400 hours on the
date of execution
Special Provisions Exhibit
The following special provision(s) apply only to the purchaser. Unless
otherwise provided in the following provision(s) the term of the followinq
provision(s) shall be the same as the term of this Rgreement. If the
following provision(s) conflict with any other provision of this Agreement,
the following provision(s) shall prevail.
1. (a) The purchaser shall limit transfer of revenues to the City's general
fund equal to the amount of franchise tax payments specified in City
Ordinance No. 1876, passed and adopted by the City on April 9, 1976.
(b) Tax payments to the City in excess of amount specified in (a) shall
be allowed only to the extent such taxes are noted on and made part
of the utility customers' power billings. Tax revenues generated in
this manner shall be kept separate and apart from revenues generated
by normal utility operations.
2. Deliveries by the purchaser over its distribution system to Pacific Power
�ight Company shall, after adjustments for losses, be deducted from
amount delivered to the Purchaser at the points of delivery in the Point
of Delivery Exhibit.
UNITED STATES OF AMERICR
Oepartment of Energy
8y /s/ Robert E. Ratcliffe
Bonneville Power Administrator
Date of Execution 1/21/85
CITY OF HSHLAND
By /s/ L. Gordon Medaris
Title Mayor
Date .7anuary 9, 1985
(WP—PKL-2394c)
Y
Exhibit L, Page 1 of 1
Contract No. DE-MS79-81-BP90432
The City of Ashland
Effective on the effective date
of this contract
Special Provisions Exhibit
The following special. provision(s) apply only to the Purchaser. Unless
otherwise provided in the following provision(s) the term of the following
provision(s) shall be the same as the term of this Agreement. If the
following provision(s) conflict with any other provision of this Agreement,
the following provision(s) shall prevail.
(a) In the initial years of service under this contract, the Purchaser
shall limit transfer of revenue to the City's General Fund to the
lesser of $600,000 or 19 percent of the gross electric revenues per
year;
(b) by January 1, 1987, and thereafter, the Purchaser shall limit the
transfer of revenue to the City's General Fund to a maximum of (i)
percent of the gross electric revenues and (ii) 6 percent of the
taxpayer's investments in the electric system pursuant to the
Separation of Electric Operations and Funds section of the General
Contract Provisions Exhibit;
(c) the taxpayer's investment in the electric system stiall be $2,267,000.
2. Deliveries by the Purchaser over its distribution system to Pacific Power
Light Company shall, after adjustments for losses, be deducted from
amount delivered to the Purchaser at the points of delivery in the Point
of Delivery Exhibit.
Prior to service under this contract, the Purchaser shall clearly
demonstrate that within one year of September 5, 1981, the Purchaser has a
utility system, and that within three years of such date, the Purchaser is
ready, willing and able to receive power from Bonneville. Upon such
demonstration, Bonneville shall serve the Purchaser, or lacking such
demonstration Bonneville may terminate this contract. Nothing in this
section shall prevent the Purchaser from requesting a contract under
section 5(b) of P.L. 96-501.