HomeMy WebLinkAboutReso 97-56 - Approve Entering into an amended and restated Operating Agreement between the M-S-R Public Power Agency, The Modesto Irrigation Dist, & the Cities of Santa Clara & Redding � �
RESOLUTION NO. 97��
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING APPROVING ENTERING INTO AN AMENDED AND
RESTATED OPERATING AGREEMENT BETWEEN THE M-S-R
PUBLIC POWER AGENCY, THE MODESTO IRRIGATION DISTRICT,
AND THE CITIES OF SANTA CLARA AND REDDING.
WHEREAS, the City of Redding is a member of the Modesto-Santa Clara-Redding
Public Power Agency (M-S-R); and
WHEREAS, the orderly administration of the assets of M-S-R required an Operating
Agreement between M-S-R and its members; this Agreement has become outdated and needs
to be revised;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Redding approves entering into the Amended and Restated Operating Agreement, a copy of
which is attached hereto and made a part hereof, and that the City Manager is authorized to
sign the Agreement on behalf of the City.
I I3EREBY CERTIFY that the foregoing resolution was introduced, read and adopted �
at a regular meeting of the City Council on the l st day of Apri1 , 1997, by the following
vote:
AYES: COUNCIL MEMBERS: P. Anderson, R. Anderson, Murray and McGeorge
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCII. MEMBERS: Kehoe
ABSTAIN: COUNCII.MEMBERS: None
DAVID L. McG GE, ayor `�
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Attest: Form Approved: �
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�i� Connie Strohmayer, City Clerk W. Leonard Wingate, aty Attorney
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AMENDED AND RESTATED
OPERATING AGREEMENT
BETWEEN
THE M-S-R PUBLIC POWER AGENCY
AND
THE MODESTO IRRIGATION DISTRICT
THE CITY OF SANTA CLARA, CALIFORIVIA
TI� CITY OF REDDING, CALIFORNIA
February 1, 1997
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1 1. PARTIES: The Parties to this Amended and Restated Agreement, made and entered into
2 as ofFebruary 1, 1997, are the M-S-R Public Power Agency, a joint Exercise of Powers
; Agency duly organized pursuant to Article I of Chapter 5 of Division 7 of Title I of the
4 California Government Code of the State of California, hereinafter called M-S-R; the
5 Modesto Irrigation District, an irrigation district organized under the laws of the State of
6 California, hereinafter called Modesto; the City of Santa Clara, California, a municipal
7 corporation organized under a charter duly adopted pursuant to the provisions of the
8 Constitution of the State of California, hereinafter called Santa Clara; and the City of
9 Redding, California, a municipal corporation organized under the laws of the State of
10 California, hereinafter called Redding. Each of Modesto, Santa Clara and Redding are
11 sometimes referred to herein individually as Member and collectively as Members.
12 M-S-R, Modesto, Santa Clara and Redding are hereinafter sometimes individually
13 referred to as Party and collectively as Parties.
14 2. RECITALS: This Agreement is made with reference to the following facts, among
15 others.
16 2.1 M-S-R was created by the Members by execution of an agreement on Apri129,
17 1980, amended and restated on November 17,1982, and amended on June 19,
18 1990 (7oint Powers Agreement).
19 2.2 The Members are also members of the Transmission Agency of Northern
20 California, which is a participant in the California-Oregon Transmission Project,
21 a 500-kV transmission project between the California-Oregon border and central
22 California.
23 2.3 The Members have authorized M-S-R to develop agreements for the purchase of
24 power, the purchase and exchange of power, the purchase of generation and
25 transmission projects, and the purchase of wheeling services, and such agreements
26 have been executed by M-S-R pursuant to the Joint Powers Agreement following
27 approval of the M-S-R Commission, the governing body of M-S-R.
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1 2.4 M-S-R owns an undivided 28.8 percent interest in Unit 4 of the San Juan
2 Generating Station and maintains other contractual rights to generating and
; transmission resources in the Southwest and in the Pacific Northwest.
4 2.5 M-S-R and its members approved "Principles for the Scheduling and Dispatch of
5 the M-S-R Public Power Agency's San Juan Project Power," on June 20, 1984.
6 2.6 M-S-R executed a sale and Exchange Agreement with the U.S. Department of
7 Energy, Bonneville Power Administration (Bonneville) on October 31,1989.
8 2.7 The Parties entered into the Pacific Northwest Power Sales Agreement detailing
9 the obligations of M-S-R and the Members under the Bonneville Contract, and
10 that Power Sales Agreement contemplated the development of a Pacific
11 Northwest Project Operating Agreement in support of the Power Sales
12 Agreement.
13 2.8 The Members desire M-S-R to perform the power scheduling, marketing (when
14 requested by the Members subject to Section 8.5), accounting, coordination, and
15 power dispatching functions associated with the receipt and delivery of power
16 from and over all M-S-R Resources, at those points at which M-S-R has the ri�ht
17 to schedule power for delivery to a Member or a third party from M-S-R or a
18 Member.
19 2.9 The members also desire M-S-R, from time to time, to purchase energy or sell
20 surplus power for the Members, upon Member request.
21 2.10 The foregoing functions are common to the San Juan Project resource and the
22 Bonneville Contract resource. The M-S-R Members desire to have such functions
23 combined under a single agreement for ease of administration.
24 2.11 This Operating Agreement is intended to fulfill the obligation for a Pacific
25 Northwest Project Operating Agreement as contemplated in the Pacific
26 Northwest Project Power Sales Agreement
27 3. AGREEMENT: The Parties agree to the terms and conditions contained herein.
28 4. DEFINITIONS: The following terms, whether in the singular or in the plural, when
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1 initially capitalized in this Agreement, or in amendments hereto shall have the meanin�s
2 specified.
3 4.1 Agreement - This Operating Agreement between M-S-R and the Members,
4 including the Service Schedules.
5 4.2 Bonneville-The U.S. Department of Energy, Bonneville Power Administration,
6 or successor agency.
7 4.3 Bonneville Contract - The purchase and exchange agreement entered into
8 between Bonneville and M-S-R on October 31,1989, and designated as Contract
9 No. DE-MS79-88BP92499
10 4.4 COTP - The California-Oregon Transmission Project, a 500-kV transmission
11 project between the California-Oregon border and central California.
12 4.5 Dispatcher Contacts-Those Member representatives listed in Section 18 hereof.
13 4.6 Joint Powers Agreement - The agreement entered into among the Members
14 pursuant to Article I of Chapter 5 of Division 7 of Title I of the California
15 Government Code as executed on April 29, 1980, amended and restated on
16 November 17, 1982, and amended on June 19, 1990.
17 4.7 M-S-R Commission - The Governing body of M-S-R established pursuant to
18 the Joint Powers Agreement.
19 4.8 M-S-R Coordinator - The party appointed by the M-S-R Commission in
20 accordance with Section 7 hereof, that is responsible for schedulin�, dispatch and
21 accounting of M-S-R resources for M-S-R and the Members.
22 4.9 M-S-R General Manager- The party appointed by the M-S-R Commission that
23 has the day-to-day responsibility for the management of the business of the
24 Agency.
25 4.10 M-S-R Member Representative - Those persons authorized by each Member to
26 represent the stafF of their utility in matters related to M-S-R resource operation
27 and utilization pursuant to this Agreement.
28 4.11 M-S-R Resources - Those generating resources and transmission lines owned,
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1 in part or in total, by M-S-R, and contracts between M-S-R and third parties for
2 the purchase, sale, or exchange of power resources or transmission rights.
3 4.12 Points of Delivery-Those points at which M-S-R has the right to schedule power
4 for delivery to a Member or a third party from M-S-R or a Member. Such Points
5 of Delivery are specified in the Service Schedules.
6 4.13 Points of Receipt-Those points at which M-S-R has the right to schedule power
7 for receipt from a Member or a third party to M-S-R or a Member. Such Points
8 of Receipt are specified in the Service Schedules.
9 4.14 Prudent Utility Practice - Any of the practices, methods, and acts, including levels
10 of reserves and provisions for contingencies that, in the exercise of reasonable
11 judgment, would have been expected to accomplish the desired result consistent
12 with reliability, safety, expedition, prevention of adverse effects on neighboring
13 systems and control areas, and all applicable laws and governmental rules,
14 regulations, and orders. Such practices, methods and acts shall consist of those
15 engaged in or approved by and commonly used by utilities that are members of
16 the WSCC and schedule across an interconnection with another utility.
17 4.15 Resource Agreements - Those agreements listed in Appendix A hereof.
18 4.16 Service Schedules - Service Schedules are descriptions of the unique operating
19 chazacteristics or operating procedures associated with M-S-R Resources and are
20 appended to this Agreement, and which are subject to adoption, amendment, or
21 termination pursuant to Article 25 of this Agreement.
22 5. SAN NAN PRINCIPLES SUPERSEDED: This Agreement shall supersede "Principles
23 for the Scheduling and Dispatch of the M-S-R Public Power Agency's San Juan Project
24 Power," dated June 20, 1984.
25 6. MEMBER REPRESENTATIVE: Each Member shall appoint a representative and
26 alternate to represent the staff of their utility in matters related to M-S-R resource
27 operation and utilization pursuant to this Agreement.
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1 7. DESIGNATION OF M-S-R COORDINATOR:
2 The M-S-R Commission shall appoint one Member, or a third party, to be the M-S-R
3 Coordinator. The M-S-R Coordinator shall serve at the pleasure of the M-S-R
4 Commission, under day to day direction of the M-S-R General Manager, and shall be
5 responsible for scheduling, dispatching, and accounting for M-S-R Resources, and such
6 other activities as specified in this Agreement. Upon resignation, or removal by the
7 M-S-R Commission, a replacement M-S-R Coordinator shall be appointed by the M-S-R
8 Commission.
9 8. DUTIES OF M-S-R COORDINATOR:
10 8.1 The M-S-R Coordinator shall prepare and furnish to suppliers or purchasers, and
11 any intervening systems, pre-schedules or operating plans for M-S-R Resources
12 in accordance with the Service Schedules. Such preschedules or operating plans
13 shall be based upon pre-schedules or operating plans obtained from each Member,
14 showing each Member's desired transactions.
15 8.2 The M-S-R Coordinator shall make best efforts to perform the dispatcr.ing and
16 real-time scheduling activities necessary to implement the pre-scheduled
17 transactions; verify or modify schedules to reflect actual deliveries each hour;
18 modify pre-schedules in the event of outages, curtailments or reasonable Member
19 requests; provide timely notification to the Members of all outages and
20 curtailments; coordinate the use among the Members of M-S-R transmission
21 capability; and coordinate other related activities to accomplish the real-time
22 dispatching and scheduling functions.
23 8.3 The M-S-R Coordinator shall furnish daily and monthly reports in a timely manner
24 to each Member showing the actual hourly transactions of each Member, and such
25 other reports as determined necessary by the Member Representatives.
26 8.4 The M-S-R Coordinator shall anange for meetings with third parties as required
27 for planning deliveries under power purchase, sales, or exchange agreements. The
28 M-S-R Coordinator shall also anange meetings with third parties, as required,
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1 when operating problems or contract interpretation differences arise. The M-S-R
2 Coordinator shall provide the Members with reasonable advance notice of such
; meetings.
4 8.5 In accordance with Section 10, the M-S-R Coordinator shall purchase or sell
5 capacity or energy, or both, when and if necessary to meet M-S-R's contractual
6 obligations and each Member's desired use of the M-S-R resource, and shall
7 coordinate the use and mazketing ofM-S-R transmission capability in accordance
8 with the appropriate Service Schedule.
9 8.6 The M-S-R Coordinator sha11 provide notice to the Member's when it appears that
10 a Member's use of any M-S-R Resource will not meet that Members minimum
11 obligation under the M-S-R Resource agreements. The Coordinator shall use
12 best efforts to provide notice of under utilization of resources to enable the
13 Member or Members to make necessary adjustments which will allow a Member
14 to meet its obligations, prior to the Coordinator taking unilateral action consistent
15 with Section 10 of this Agreement.
16 8.7 The M-S-R Coordinator shall from time to time, upon notice to and consultation
17 with the Members, (i) develop detailed procedures for acquisition and marketing
18 of power and transmission, scheduling, dispatching and accounting under this
19 Agreement, (u)review scheduling, dispatching and accounting practices, and (iii)
20 propose the adoption, amendment or termination of Service Schedules.
21 9. M-S-R COORDINATOR GENERAL TASKS: Consistent with the duties of the M-S-R
22 Coordinator described in Section 8, hereof, the general tasks listed below are intended,
23 to serve as a list of the tasks required of the M-S-R Coordinator under this Agreement
24 The costs for performing the duties described in Section 8 hereof, and the following tasks
25 shall be treated as general administrative costs of M-S-R, and subject to Section 9.7,
26 shall be shared by each Member in proportion to its percentage interest in M-S-R:
27 9.1 Planning Tasks. The M-S-R Coordinator shall prepare any annual plans of
28 delivery required for M-S-R Resources which indicate M-S-R's intended use of
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1 its generation and purchase power resources based on input received from each
2 Members, and shall coordinate with the M-S-R Controller to develop the M-S-R
3 annual operating budget showing the development of an anticipated cash flow
4 requirements of each Member under this Agreement. The M-S-R Coordinator
5 shall utilize information submitted by each Member on expected usage of
6 resources to deternune monthly costs of operation of M-S-R Resources and
7 transmission costs.
8 9.2 Marketing Tasks. In accordance with Section 8.5, the M-S-R Coordinator shall
9 make best efforts to perForm tasks necessary to market, on a short-term basis,
10 any portion of an M-S-R Resource that is surplus. The M-S-R Coordinator shall
11 also make best efforts to perform the tasks necessary to purchase, on a short-term
12 basis, capacity, energy, or both, that is otherwise not provided by the Members
13 to satisfy any obligation of M-S-R. Performance of the above marketing tasks
14 shall be in accordance with the Service Schedules relating to special conditions
15 for the purchase/or sale of M-S-R Resources.
16 9.3 Scheduling Tasks. The M-S-R Coordinator shall pre-schedule (daily, and/or on
17 such other basis as required by M-S-R agreements) all M-S-R Resources in
18 accordance with the scheduling provisions of the Service Schedules, and shall
19 coordinate preschedules of Member obtained resources with M-S-R Resources
20 to satisfy each Member's purchase, sale, or exchange obligation to M-S-R. The
21 M-S-R Coordinator shall perform the necessary real-time scheduling to implement
22 Member preschedules and any changes thereto.
23 9.4 Record Keeping Tasks. The M-S-R Coordinator shall verify and account for
24 deliveries of power from M-S-R Resources to the Members, and shall keep
25 records of all transmission purchases and sales, banked energy accounts, loss
26 payback accounts, and such other accounts established for Member transactions
27 using M-S-R Resources.
28 9.5 Billing Support Tasks. The M-S-R Coordinator shall provide price and quantity
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1 information to the M-S-R controller to provide for the issuance of invoices
2 monthly to each Member for costs incurred by M-S-R for the use of M-S-R
3 Resources, and to cover all administrative costs associated therewith.
4 9.6 Reporting Tasks. The M-S-R Coordinator shall prepare and distribute reports to
5 each Member on a monthly basis (or such other frequency as determined
6 necessary by the Members) showing summaries of transactions of each Member,
7 and such other reports as required by the M-S-R Commission.
8 9.7 Notwithstanding anything to the contrary in this Agreement, the cost of any
9 service or task performed by the M-S-R Coordinator at the request of, and for the
10 exclusive benefit of, a Member, shall be borne by that Member.
11 10. AUTHORIZATION TO M-S-R COORDINATOR : The M-S-R Coordinator is hereby
12 authorized to enter into transactions on behalf of M-S-R, if requested by a Member for
13 that Members account, or to unilaterally enter into transactions on behalf of M-S-R; in
14 case a Member fails to meet its obligations. The M-S-R Coordinator shall notify the
15 Members of such transactions as soon as practicable following acceptance of the
16 transaction by the other party to the transaction.
17 11. OBLIGATIONS OF MEMBERS:
18 11.1 Each Member shall submit pre-schedules to the M-S-R Coordinator in accordance
19 with the scheduling provisions contained in the appropriate Service Schedule(s).
20 11.2 Except during emergencies, real-time schedule changes shall be submitted to the
21 M-S-R Coordinator as required under the scheduling provisions of the
22 appropriate Service Schedule(s).
23 11.3 During emergencies caused by unscheduled loss of generation, transmission, or
24 load on a Member's electric system, real-time schedule changes determined
25 necessary by the Member shall be submitted to the M-S-R Coordinator as soon
26 as practicable following the initiation of the emergency. The M-S-R Coordinator
27 will make best e$'orts to implement the required schedule change, and will notify
28 that Member of the time the change was accepted, the quantity to be recorded for
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1 the affected scheduling period(s) and any other pertinent information. '
2 11.4 Each Member shall furnish information necessary to the M-S-R Coordinator for
3 annual planning and budgetary purposes. Such information shall include, but not
4 be limited to, forecasts of monthly use of M-S-R Resources, desired ma�mum
5 monthly price for capacity or energy, or both, which may be purchased for the
6 Member to meet the Member's M-S-R obligations, desired minimum monthly
7 price for capacity or energy, or both, which may be sold from M-S-R Resources
8 on behalf of Member, and Member resources available to cover possible M-S-R
9 contractual contingencies. Member desired minimum and ma�cimum pricing shall
10 not apply to transactions where unilateral action is taken by the M-S-R
11 Coordinator in accordance with Section 10.
12 11.5 Each Member shall include its obligations associated with all M-S-R Resources
13 in its resource planning process, and shall perform such planning in accordance
14 with Prudent Utility Practice. Such planning shall not relieve a Member from
15 meeting its obligations under the Resource Agreements. Each Party shal]
16 conduct its business, and perForm its obiigations, under this Agreement in
17 accordance with the standards set forth in Section 4.14, notwithstanding the fact
18 that the definition might not otherwise apply to such Party.
19 11.6 M-S-R Members shall make all necessary arrangements for transmission of power
20 between M-S-R's Point(s) of Delivery listed in the Service Schedules and the
21 Member's system.
22 11.7 M-S-R Members shall be responsible for additional power required as reserves
23 against planned or emergency service interruptions within their own systems.
24 11.8 Each Member shall be responsible for its proportionate share of any future costs
25 associated with supplying reactive power required under agreements with other
26 electric systems. Each Member will be solely responsible for meeting the reactive
27 power requirements for its electrical system.
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1 11.9 Losses of energy and capacity, consistent with all of M-S-R's Resource
2 Agreements shall be applied for each Member from the Point of Receipt to the
3 respective Point of Delivery. Losses associated with energy and capacity sold by
4 M-S-R to third parties shall be assessed to the Member whose energy and
5 capacity was sold, consistent with the point of delivery of the receiving third
6 party.
7 12. SALE OR EXCHANGE BETWEEN MEMBERS: If any of the Members desire to sell
8 or exchange their share of any M-S-R Resource and another Member elects to assume
9 that Member's rights and obligations under the associated agreements, such Members
10 shall provide notification to the M-S-R Coordinator detailing their rights and obligations
11 relative to the M-S-R Resource. Such notification shall be confirmed in writing. The
12 M-S-R Coordinator shall make best efforts to implement such sale or exchange through
13 the scheduling and accounting systems then in use in the time period desired by the
14 affected Members. In no event shall such sale or exchange modify the terms of this
15 Agreement, nor will M-S-R be a party to such sale or exchange.
16 13. SALES OR EXCHANGES WITH THIlZD PARTIES: If any of the Members desire to
17 sell or exchange their share of any M-S-R Resource with a third party, that Member may
18 do so, subject to financing limitations, and further provided, that M-S-R is obligated to
19 deliver only to a third party who has contractual rights to receive delivery at one of
20 M-S-R's delivery points.
21 14. CONDITIONS OF TRANSACTIONS: Maximum rates of delivery, energy obligations,
22 points of receipt and delivery, transmission paths available, and other conditions for
23 transactions associated with M-S-R Resources are given in the Service Schedules.
24 15. TERM: When fully executed, this Agreement shall become effective as of Fubruary 1,
25 1997, and shall remain in full force and effect until termination of all M-S-R contractual
26 anangements associated with M-S-R Resources.
27 16. DISPUTES: Should a dispute under this Agreement arise among the Members, or a
28 Member or Members and the M-S-R Coordinator, each party to such dispute shall reduce
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1 its position on the matter to writing and submit it to the General Manager for resolution.
2 If the General Manager and the affected Members cannot resolve such dispute within
3 sixty (60) calendar days of the date of submittal the matter shall be submitted to the
4 M-S-R Commission for resolution.
5 17. DISPATCHER CONTACTS: Each Party hereby designates its Dispatcher Contacts as
6 follows:
7 M-S-R Coordinator: That party appointed by the M-S-R Commission
8 Modesto: Modesto Irrigation District
9 C/O Operations Department
10 1231 Eleventh Street
, 11 P.O. Box 4060
12 Modesto, CA 95354
13 Santa Clara: City of Santa Clara
14 C/O Electric Department
15 1500 Warburton Avenue
16 Santa Clara, CA 95050
17 Redding: City of Redding
18 C/O Power Control Center
19 760 Parkview Avenue
20 Redding, CA 96001
21 The above Dispatcher Contacts may be changed from time to time by each Party's
22 designated representative by notice to the other Parties.
23 Any notice provided for in this Agreement shall be in writing. Such notice shall be made
24 in person or sent by overnight delivery, first class mail, registered mail or certified mail,
25 fee or postage prepaid, to the addresses specified above; provided however, upon
26 agreement between the recipient of such notice and the M-S-R Coordinator, such notice
27 may be sent by facsimile.
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1 18. INTEGRATION: This Agreement constitutes the complete and final expression of the
2 agreement among the Parties and is a complete and exclusive statement of the terms of
3 their agreement and supersedes al] prior and contemporaneous offers, promises,
4 representations, negotiations, discussions, and communications which may have been
5 made in connection with the subject matter of this Agreement. This Agreement is the
6 product of negotiations, and neither ambiguities nor uncertainties shall be construed in a
7 manner which is prejudicial to a Party. This Agreement includes Appendix A and the
8 Service Schedules.
9 19. EFFECT OF SECTION HEADINGS: Except for definitions contained in Section 4
10 hereof, section headings appearing in this Agreement are for convenience only, and are
11 not to be construed to define, limit, expand, interpret, or amplify the provisions of
12 Agreement.
13 20. LJNCONTROLLABLE FORCES: No Party shall be considered to be in default in the
14 performance of its obligations hereunder when a failure of performance shall be due to
15 an Uncontrollable Force. The term "Uncontrollable Force" shall mean any cause beyond
16 the control of the party affected, including but not restricted to failure of or threat of
17 failure of facilities, flood, radioactive contamination, earthquake, storm, volcanic
18 eruption, geo-hydrolic subsidence, fire, lightning, epidemic, war, riot, civil disturbance
19 or disobedience, labor dispute; sabotage, subversion, governmental priorities, restraint by
20 court order or public authority, and action or non-action by or inability to obtain the
21 necessary authorzations or approvals from any governmental agency or authority, other
22 than the Parties, which by exercise of due diligence such Party could not reasonably have
23 been expected to avoid and which by exercise of due diligence it shall be unable to
24 overcome. Nothing contained herein shall be construed so as to require a Party to settle
25 any strike or labor dispute in which it may be involved. Any Party rendered unable to
26 fulfill any of its obligations hereunder by reason of an Uncontrollable Force shall give
27 prompt written notice of such fact to the other Parties and shall exercise due diligence to
28 remove such inability with all reasonable dispatch.
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1 21. WANER: Any waiver at any time by any Party of its rights with respect to a default or
2 any other matter arising in connection with this Agreement shall not be deemed a waiver
; with respect to any subsequent default or matter whether of a similar or different nature.
4 22. LIABILITY: Each Member agrees that neither M-S-R, the M-S-R Coordinator, nor any
5 of their Commissioners, directors, officers, employees, or agents shall be liable to the
6 Members for direct or consequential loss or damage suffered by the Members as a result
7 of the performance or nonperformance by M-S-R or the M-S-R Coordinator under this
8 Agreement (whether negligent or otherwise). Each Member releases M-S-R, the M-S-R
9 Coordinator, the M-S-R Commissioners, directors, officers, employees, and agents from
10 any claim or liability (whether negligent or otherwise) as a result of any actions or
11 inactions of M-S-R under this Agreement or the performance or nonperformance by the
12 M-S-R Coordinator under this Agreement.
13 23. THIlZD PARTY RIGHTS: Except as otherwise specifically provided in this Agreement,
14 the Parties do not intend to create rights in or to grant remedies to any third paRy as a
15 beneficiary of this Agreement or of any duty, covenant, obligation or undertakin�
16 established herein.
17 24 CONFLICT WITH OTHER AGREEMENTS: In the event of any conflict among the
18 Parties arising out of an inconsistency between the terms and conditions of M-S-R's
19 Resource Agreements and this Agreement, the provisions of the appropriate Resource
20 Agreement shall govern.
21 25. AMENDMENTS:
22 25.1 Unless otherwise set forth in this Article, this Agreement may be amended only
23 by written instrument executed by the Parties with the same formality as this
24 agreement.
25 25.2 The adoption, amendment or termination of Service Schedules will be
26 impiemented by the M-S-R Coordinator as deternuned necessary by the Member
27 Representatives. Any such action may be taken without effect on this Agreement
28 or other Service Schedules.
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1 26. GOVERNING LAW: This Agreement shall be interpreted in accordance with the laws
2 of the State of California.
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4 27. SIGNATURE CLAUSE: M-S-R, Modesto, Redding and Santa Clara hereby
5 acknowledge and accept the terms and conditions of this Assignment as evidence by the
6 following signatures of their duly authorized representatives:
7
8
9 M-S-R PUBLIC POWER AGENCY
10 Attest:
11 -�c.�" 1 �
Dennis W. De Cuir, Esq.
12 Title: M-S-R Interim General Manager
13 Date: , 199
14
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MODESTO IRRIGATION DISTRICT,
17 a California lrrigation District
18 Approved as to form: `
19 � ''vi.�u J
S OTT T. STEFFEN ALLEN SHORT
20 Asst. General Counsel General Manager
21 1231 Eleventh Street
Modesto, CA 95352
22 Attest: Telephone: (209) 526 - 7373
r � Fax: (209) 526 - 7315
23 \��� _
.��� Date: March 5, , 1997
24 Vickie Ehrler
Secretary to Board "Modesto"
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5
CITY OF SANTA CLARA, CALIFOR�IA
6 a chartered California municipal corporation
7 Appr ved as to f
8 .
��1'1��1� � � �� � )(1�7." �1,2�1.�'
9 R AND D. PF IF ` R SP CINO
Assistant city Att rne . ity Manager ,
10
11 1500 Warburton Avenue
Santa Clara, CA 95050
12 Attest: Telephone: (408) 984 - 3044
Fax: (408) 241 - 8291
13 , .:��
---� (J.;�c c.�r-�..-�. Date: F��% ..� � , 1997
14 Y BOCCIC3�dONE
ity Clerk
15
"Santa Clara"
16
17
CITY OF REDDING, CALIFORNIA
18 a General Law City
19 Approved as to form:
20
W. LEONARD WINGATE MICHAEL WARREN
21 City Attorney City Manager
22 760 Parkview Avenue
Redding, CA 96001
2; Attest: Telephone: (916) 225-4060
Fax: (916) 225-4325
24
Date: , 1997
25 CONNIE STROHMAYER
City Clerk:
26
"Redding"
27
28
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RESOLUTION N0. 97-25
APPROVING THE AMENDED AND RESTATED OPER.ATING AGREEMENT
BETWEEN THE M-S-R PUBLIC POWER AGENCY AND THE MODESTO IRRIGATION
DISTRICT, THE CITY OF SAN'rA CLARA, A1�TD THE CITY OF REDDING
BE IT RESOLVED, by the Board of Directors of the Modesto
Irrigation District, that the Amended and Restated Operating
Agreement Between the M-S-R Public Power Agency and the Modesto
Irrigation District, the City of Santa Clara, and the City of
Redding in the form on file in the Board Secretary' s office is
hereby approved and the General Manager and Secretary to the
Board are hereby authorized and directed to execute said
Agreement for and on behalf of the District . This Agreement
details how M-S-R will perform the power scheduling, accounting,
marketing, coordination and dispatching functions associated with
M-S-R resources on behalf of the members and the members'
responsibility to M-S-R.
Moved by Director Kidd, seconded by Director Billington,
that the foregoing resolution is adopted.
The following vote was had:
Ayes : Directors Billington, Kidd, Van Groningen, Warda
Noes : Directors None
Absent : Director Hensley
The President declared the resolution adopted.
000
I , Vickie Ehrler, Secretary of the Board of Directors of the
MODESTO IRRIGATION DISTRICT, do hereby CERTIFY that the foregoing
is a full, true and correct copy of a resolution duly adopted at
a special meeting of said Board of Directors held on the 25th day
of February, 1997 .
� � ��' ' ' �ti--
�� `,�.c�
Secretary of the Board of Directors
of the Modesto Irrigation District
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1
2
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6
7
8 APPENDIX A
9 M-S-R PUBLIC POWER AGENCY
10 OPERATING AGREEMENT
11 Resource Agreements
12
13
14 1. The San Juan Project Power Sales Agreement between the M-S-R Public Power Agency
15 and the Modesto Irrigation District, the City of Santa Clara, and the City of Reddin�
16 dated November 17,1982.
17
18 2. The Pacific Northwest Project Power Sales Agreement between the M-S-R Public Power
19 Agency and the Modesto Irrigation District, the City of Santa Clara, and the City of
20 Redding dated June 5, 1990.
21
22
23
24
25
26
27
28
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1 M-S-R PUBLIC POWER AGENCY (M-S-R)
2 OPERATING AGREEMENT
3 SERVICE SCHEDULE A
4 BONNEVII,LE POWER ADNIlNISTRATION
5 POWER SALE AND EXCHANGE AGREEMENT
6
7 RESOURCES AVAII.ABLE/REQUIRED
8
9 1. Firm Power - Capacity (Contract Demand) in amounts up to 100 MW, beginning with the
10 commercial operation ofthe California-Oregon Transmission Project (COTP), increasing to 150
11 MW on August l, 1996 with a minimum energy at a 50 percent annual load factor; unless
12 converted to the Exchange mode as specified in 2 below;
13
14 2. Exchange Mode under which M-S-R receives seasonal capacity (Firm Peaking Capacity) equal
15 to the Exchange portion of the Contract Demand from mid-May through mid-O�tober. The
16 amount of energy scheduled by M-S-R during heavy load hours each day is returned to
17 Bonneville during light load hours of the same and following day. The returned energy is called
18 Firm Peaking Replacement Energy. In addition, M-S-R must schedule 1200 MWh/MW of
19 Exchange portion of the Contract Demand to Bonneville during the following winter season,
20 November through mid-April, as payment for the capacity.
21
22 3. A combination of(1)and(2) above with the total not exceeding the total Contract Demand (100
23 or 150 MW).
24
25
26
27
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1 POINTS OF DELIVERY
2
3 California-Oregon Border at 500-kV
4 Other points in the Pacific Northwest as mutually agreed
5
6 FIlZM POWER SALE
7
8 When the Bonneville Contract is operating as a firm power sale, each Member shall schedule and accept
9 its Participation Percentage, as such term is defined in the Pacific Northwest Project Power Sales
10 Agreement, of the resources described below:
11
12 1. The Contract Demand sha11 not exceed 100 NIW from the date of initial delivery through July 3 l,
13 1996, and 150 MW from August 1, 1996, through termination of the Firm Power Sale.
14
15 2. The annual energy to be scheduled by M-S-R is 438,000 MWh from the date of initial delivery
16 through July 31, 1996, and 657,000 MWh from August 1, 1996, through the earlier of: (i) early
17 termination of the Firm Power Sale: (ii) March 31, 2013, or; (iii) conversion to an exchange.
18
19
20
21
22
23
24
25
26
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1 3. The annual ener�y to be scheduled by M-S-R is specified monthly in the following table:
2
^
' MONTHLY ENERGY AVAII.ABLE
4 Eneray Amount Energy Amount
5 Month (Mwh) Through (Mwh) After
6 July 31, 1996 July 31, 1996
� August 55,800 83,700
g September 72,000 108,000
9 October 74,500 111,750
10 November 72,000 108,000
11 December 74,400 111,600
12 January 37,200 55,800
February 33,600 50,400
13
February (Leap Years) 34,800 52,200
14
March 37,200 55,800
15 April 71,900 107,850
16 May 74,400 111,600
17 June 57,600 86,400
lg Jul 55,800 83,700
19
Minimum monthly energy amounts:
20
21,900 MWh per month through July 1996
21
32,850 MWh month beginning August 1996
22
23
CAPACITY-FOR-ENERGY EXCHANGE
24
25
1. The M-S-R Members may schedule Fum Peaking Capacity while the contract is in the Exchange
26
Mode, up to their portion of the Exchange portion of the Contract Demand. The M-S-R
27
Members may schedule Fum Peaking Energy while the contract is in the Exchange Mode, up to
28
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If _. ... _ !
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1 10 MW hours per MW per day of their portion of the Exchange Portion of the Contract Demand,
2 up to a total of 50 MW hours per MW per week.
; 2. ; Fum Peaking Replacement Energy must be returned by each Member to M-S-R by midnight of
4 the day following the day in which Firm Peaking Capacity is delivered.
5 3. Exchange Energy shall be delivered in equal weekly increments between November 1 of any year
6 and April 15, of the following year, unless otherwise requested by Bonneville. The rate of
7 delivery for Exchange Enerjy is limited to 200 percent of the Exchange portion of the Contract
8 I Demand - November through February, and 130 percent of Exchange portion of the Contract
9 I Demand - March and April.
�
10
�
11 4 Time Period Available Capacity Available Energy
12 '
� ��� Per Day (GWH) Per Week (GWH)
13
�
1993-1995
14 Jan. 1 - May 15 0 0.0 0.0
May 16 - Oct. 15 100 1.0 5.0
15 Oct 16 - Dec. 31 0 0.0 � 0.0
16 1996
Jan. 1 - May 15 0 0.0 0.0
17 May 16 - July 31 100 1.0 5.0
Aug. 1 - Oct. 15 150 1.5 7.5
18 Oct. 16 - Dec. 31 0 0.0 0.0
19 1997-2012
Jan. 1 - May 15 0 0.0 0.0
20 May 16 - Oct. 15 150 1.5 7.5
Oct. 16 - Dec. 31 0 0.0 0.0
21
22 SCHEDULING PROCEDURES
23
24 Each Member shall submit to the M-S-R Coordinator schedules of energy to be delivered from
25 Bonneville and to be delivered to Bonneville in satisfaction of its obligations under the Pacific Northwest
26 Project Power Sales Agreement. Such schedules shall be for (i) Firm Power; (ii) Firm Peaking Capacity;
27 (iii) Firm Peaking Replacement Energy; (iv) Exchange Energy; and (v) energy for Energy Account
28 schedules submitted by Bonneville:
� � � - - - - _. . ....
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1 ANN�[1AL PRESCHEDULES
2
3 1. Each Member shall complete its plan of delivery by December 10 of each calendar year showing
4 the anticipated use of the resources available, and provide such plan of delivery to the M-S-R
5 Coordinator. The M-S-R Coordinator will compile the Members' plans of delivery for transmittal
6 to Bonneville. Each Members'Plan ofDelivery shall contain monthly estimates for the Member's
7 projected use for the following four Delivery Years (August through the following July). The
8 M-S-R Coordinator will submit the compiled Plan of Delivery to Bonneville by January 1 of each
9 year.
10
11 2. The plans of delivery prepared by each Member will be within the limits of the maximum energy
12 available times their respective Participation Percentage (Modesto - 50 percent, Santa Clara - 35
13 percent, and Redding - 15 percent).
14
15 3. By Aum,►st 20 of each year, the M-S-R Coordinator will notify each of the M-S-R Members if the
16 current Plan of Delivery will govern for the upcoming August through July period, or if another
17 Plan of Delivery is being recognized by Bonneville.
18
19 4. By August 20 of each year, the M-S-R Coordinator will notify each of the M-S-R Members if
20 Bonneville has declared an adverse water year and notified M-S-R of its requirement to switch
21 the Plan of Delivery for the cunent Delivery Year. If Bonneville provides M-S-R with such
22 notice, the M-S-R Coordinator and each of the M-S-R Members will meet and/or confer to
23 develop a schedule for August and September to adhere to the adopted Plan of Delivery. This
24 schedule will be completed by August 31 of each year.
25
26 5. Bonneville may, upon 60 days advance notice, convert the agreement from the Firm Power Sale
27 to the Exchange mode or vice-versa. If Bonneville provides such notice, the M-S-R Coordinator
28 will promptly notify each of the M-S-R Members of the Bonneville
,, _ . ...
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' ::�:.�. .;<:.1�:•u:-; ; _.� . . .
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1 notice. Bonneville may also notify M-S-R of a curtailment of deliveries for other reasons. To the
2 extent such Bonneville notice causes a partial delivery of energy in any month, the M-S-R
3 Coordinator will also provide such information to the M-S-R Members.
4
5 WEEKLY PRESCHEDULES
6
7 1. Each Member shall provide a weekly schedule of energy deliveries to the M-S-R Coordinator by
8 1300 hours on the Monday prior to the week being scheduled. Such schedule shall be for no
9 more than 135 percent of average weekly energy (multiplied by the Member's participation
10 percentaae) for the current month of the effective Plan of Delivery, provided however, the
11 Member's total delivery of energy for the current month does not exceed its participation
12 percentage of the energy identified in the Plan of Delivery.
13
14 2. Each Member has the opportunity to modify its weekly schedule by notifying the M-S-R
15 Coordinator by 1300 hours on the Thursday prior to the week being scheduled. The M-S-R
16 Coordinator shall notify the Member upon acceptance of the modified schedule.
17
18 3. If Bonneville restricts the deliveries of Firm Peaking Replacement Energy and Exchange Ener�y,
19 the M-S-R Coordinator shall provide the M-S-R Members notice of a change in the weekly
20 schedule(possibly down to zero)by 1500 hours on Thursday prior to the week being scheduled.
21
22 4. If Bonneville schedules energy from the Energy Account, the M-S-R Coordinator shall provide
23 the M-S-R Members with the schedule for the Energy Account withdrawals associated with their
24 Participation Percentage. Each M-S-R Member shall confirm that it will meet the Energy
25 Account withdrawal obligations by 1000 hours on the Thursday prior to the week being
26 scheduled. If the M-S-R Member does not confirm its ability to
27
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1 make the Energy Account withdrawals obligations or specifies that such obligations can not be
2 met, the M-S-R Coordinator shall purchase the appropriate ener�y at the sole cost of the specific
3 M-S-R Member.
4
5 5. If Bonneville so requests, M-S-R is required to provide a non-binding 10-day forecasted schedule
6 by noon of the day following the request. The M-S-R Coordinator will notify each Member
7 within one hour if such a request is made by Bonneville, and a preschedule shall be submitted by
8 each Member to the M-S-R Coordinator by 0900 hours of the following day.
9
10 DAILY PRESCHEDULES
11
12 1. Prior to 0800 hours each work day, each Member shall furnish a preliminary preschedule for the
13 following day(s) showing the intended deliveries to and from Bonneville for (i) Firm Power;
14 (ii) Firm Peaking Capacity; (iii) Firm Peaking Replacement Energy; (iv) Exchange Energy; and
15 (v) energy for Energy Account schedules submitted by Bonneville.
16
17 2. Prior to 0830 hours each work day, the M-S-R Coordinator shall combine each Member's
18 preschedules into a composite M-S-R schedule, and provide a copy of the composite schedule
19 to each Member for review and comment.
20
21 3. Between 0900 and 1000 hours clock time each work day, the M-S-R Coordinator and the
22 Members will review the previous day's operations and discuss any further Market opportunities
23 which might be available.
24
25 4. By 1330 hours each work day, the M-S-R Coordinator shall provide notification to the Members
26 of any additional Bonneville non-firm energy available for the following day.
27
28
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1 5. By 1340 hours each work day, the M-S-R Members shall provide the M-S-R Coordinator with
2 their final preschedules for the following day(s) showing the intended deliveries to and from
3 Bonneville for those items identified in paragraph 1 above.
4
5 6. By 1400 hours each day, the M-S-R Coordinator shall provide final M-S-R schedules to both
6 PG&E and Bonneville.
7
8 7. Schedules arranged for after 1400 hours for the following day, will be implemented on a real-time
9 basis.
10
11 8. Prior to 1340 hours of each normal workday common to the Members, the Member's final
12 schedules shall be provided to the M-S-R Coordinator for resources to be delivered or received
13 beginning at midnight and continuing through the end of the following normal workday common
14 to the Members.
15
16 REAL-TIlVIE SCHEDtJLING
17
18 Rea1-time scheduling refers to the period which begins when the preschedule is deemed to be complete
19 and concludes at 2400 hours, clock time, of the day for which the preschedule is prepared.
20
21 1. Changes in a schedule refer to the period which begins when the preschedule is deemed to be
22 complete and conclude at 2400 hours, clock time, of the day for which the preschedule is
23 prepared.
24
25 2. A schedule change will, normally be arranged for a full hour. Arrangements shall be completed
26 no later than 45 minutes prior to that hour, or as otherwise mutually agreed. All schedule
27 changes will be agreed upon by the control areas and parties involved prior
?g
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1 to implementation in regard to magnitude, rate of change, and common starting time. Ramps will
2 occur over a 20-minute period beginning at ten minutes to the hour, unless otherwise mutually
3 aareed.
4
5 3. The above requirements do not preclude schedule changes at other times as may be deemed
6 necessary. However, such changes require that all affected parties be notified for purposes of
7 coordinating ramps and proper accounting. Changes will be deemed to occur at mid-ramp. The
8 mid-ramp time and the integrated value for the hour will be agreed to by all affected parties.
9
10 4. Concurrent loss schedules will be changed according to the policies and procedures of the
11 transmission systems involved.
12
13 SPECIAL RESOURCE CONDITIONS
14
15 1. M-S-R Conversion to an Exchange - While the Agreement is in the Firm Power Sale mode,
16 M-S-R may provide Bonneville with five-years notice of a forced conversion to an e�change,
17 given the most current "White Book" prepared by Bonneville shows a resource deficit. If one or
18 more of the M-S-R Members wishes to discuss a possible forced conversion pursuant to M-S-R's
19 rights, the M-S-R Coordinator will schedule a meeting within two weeks to discuss the
20 appropriate action to take with Bonneville.
21
22 2. Bonneville Conversion/Reversion of the Agreement - Bonneville will provide M-S-R with a
23 minimum of 60 days notice of conversion of the Agreement from the Firm Power Sale mode to
24 the Exchange mode and vice-versa. Upon receiving such notice from Bonneville, the M-S-R
25 Coordinator will forward such notice to the M-S-R Members and will schedule a meeting within
26 two weeks to discuss the appropriate action to take with Bonneville.
27
28
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II � - _ �
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1 3. Public Law 88-552 Conversion - While the Agreement is in the Firm Power Sale mode,
2 Bonneville may provide notice to M-S-R that Bonneville is temporarily (less than one year)
3 restricting all or part of the energy associated with the Firm Power Sale. The M-S-R
4 Coordinator will promptly notify each of the M-S-R Members of the details of the Bonneville
5 notice and poll the Members on the following items: (1) is all or part of the capacity from
6 Bonneville still desired during the period of time specified by Bonneville, and (2) if such capacity
7 is desired, do the Members prefer to pay the Demand Charge associated with the Firm Power
8 Sa1e or prefer to establish an immediate Exchange Energy arrangement to compensate Bonneville
9 for the capacity delivered. The M-S-R Coordinator will compile the results of the poll and
10 promptly notify Bonneville of the results.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
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28
°� -- _�. - ,,,,..._.. . _ _:-.- _t - -
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1 M-S-R PUBLIC POWER AGENCY (M-S-R)
2 OPERATING AGREEMENT
3 SERVICE SCHEDULE B
4 SAN JUAN PROJECT RESOURCES
5
6 Resources Available
7
8 1. 28.8 Percent of San Juan Unit 4(San Juan Power) = Approximately 143 MW (The capacity and
9 energy is deliverable one-half from Unit 4, and one-quarter from Unit 1, and one-quarter from
10 Unit 2.)
11 2. Emergency assistance for M-S-R and Tucson Electric Power Company (TEP)
12
13 Points of Deliverv
14
15 Westwing Substation at 345-kV and 500-kV
16 Moenkopi Substation at 500-kV
17 Palo Verde Substation at 500-kV
18 San Juan Switchyard at 345-kV (Only if Exchange with TEP at the above three points is not
19 possible)
20 At other points as mutually agreed between M-S-R and TEP
21
22 Scheduling Agent
23
24 The M-S-R Coordinator will schedule energy from San Juan Project resources through the followin�
25 entities over the paths indicated:
26
27 San Juan Power
28 1. Scheduling of San Juan Generation - Public Service Company of New Mexico (PNM)
. _. ... ..
Re��i�ed: 3anuary 1 i, 19a� � . _. . ...
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1 2. Scheduling of exchan�e to Westwing, Palo Verde, and Moenkopi - TEP
2 3. Other points as mutually aareed between M-S-R and TEP
3
4 Scheduling Procedures
5
6 MONTHLY PRESCHED ULES
7
8 1. By the 25th of each month, each Member will furnish the M-S-R Coordinator with an estimate
9 for the following month of the hourly usage of its San Juan Power. Such estimate may be in the
10 form of a typical weekday, Saturday, and Sunday/holiday hour-by-hour schedule. The M-S-R
11 Coordinator shall compile these estimates for each Member along with estimates of any
12 pre-arranged sales to third parties and submit the combined estimate to PNM and TEP.
13
14
15
16
17
18
19
20
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22
23
24
25
26
27
28
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� � a
1 DAILY PRESCHED ULES
2
3 1. Prior to 0800 hours each work day, each Member shall furnish a preschedule for the followin�
4 day(s) showing the intended usa�e of San Juan Power.
5
6 2. Prior to 0830 hours each work day, the M-S-R Coordinator shall combine each Member's
7 preschedule and pre-arranged third party sales into a composite M-S-R schedule, and notify the
8 Members of any energy or capacity, or both that is available, and the hours of availability.
9
10 3. The M-S-R Coordinator will confirm the availability of the resources with PNM and TEP prior
11 to 0930 hours each work day, and confirm the prescheduled amounts with each Member prior
12 to 1000 hours each work day.
13
14 4. If capacity or energy, or both, remain available after completion of the procedure outlined above,
15 the M-S-R Coordinator shall make best efforts to market the available resource to third parties
16 upon the best terms commercially available, on behalf of any Member(s) so requesting.
17
18
19
20
21
22
23
24
25
26
27
28
Revised: Januar✓ 1?, ?U°7 �' -. _
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i REAL TIME SCHED tILES
2
3 1. The M-S-R Coordinator shall make best efforts to notify the Members of any change necessary
4 in prescheduled quantities, the reason for the change, and, if necessitated by an operating
5 emergency or outage, the expected duration of the operating emergency or outage.
6
7 2. The Members shall make best efforts to notify the M-S-R Coordinator of any changes necessary
8 in prescheduled quantities due to such things as emergencies on their systems, changes in load
9 or generation patterns, and economies of energy purchases and sales. The Members shall notify
10 the M-S-R Coordinator as soon as possible after the need for a change is known. Real time
11 schedule changes should be reported to the M-S-R Coordinator at least 30 minutes prior to the
12 affected hourly scheduling period, and preferably 60 minutes prior to the affected hourly
13 scheduling period.
14
15 3. The M-S-R Coordinator shall promptly advise a11 Members of opportunities for sales or purchases
16 whenever such opporiunities become available during the course of providing real time scheduling
17 and dispatching services.
18
19 4. The M-S-R Coordinator shall make best efforts to market any capacity or energy, or both, that
20 remains available on real-time upon the best terms commercially available, or on bahalf of any
21 Member(s) so requesting.
22
23
24
25
26
27
28
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I Rtivised: Janua;�-� '_;', 1497 B - -.
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1 SERVICE SCHEDULE C
2 MEAD-PHOENIX/MEAD-ADELANTO
3 TRANSMISSION PROJECTS
4
S Transmission Ca�ability/Losses
6
� Mead-Phoenix Project
8 Westwing 500 kV-Mead 500 kV, bidirectional - 150 MW, 2.47% losses*
9 Mead 500 kV-Marketplace, bidirectional - 150 MW, 0.19% losses*
10 Marketplace-McCullough 500 kV, bidirectional - 210 MW, 0% losses*
11
12 Mead-Adelanto Project
13 Marketplace-Adelanto, bidirectional - 210 MW, 1.6% losses*
14
15 * Loss figures are preliminary and may be modified slightly upon commercial operation of
16 Projects.
17
18 Points of Receipt/Deliverv
19
20 Westwing 500 kV - 150 MW
21 Mead 500 kV - 150 MW
22 Marketplace/McCullough- 150 MW total simultaneous receipt or delivery for both points prior to year
23 2000 and 210 MW thereafter.
24 Adelanto - 150 NIW prior to year 2000 and 210 NIW thereafter.
25
26 Schedulin� A�ent/Transmission Path
27
28 Arizona Public Service Company - WestwinQ Bus to/from Mead-Phoenix Yard
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Revised: January 17, 1997 C - 1
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1
2 Salt River Project - Mead-Phoenix Yard to/from Westwing-Mead Line
3
4 Western Area Power Administration (WALC)-Westwing-Mead Line to/from Mead 500 to/from
5 Marketplace
6
7 Los Angeles Department of Water and Power - Marketplace to/from McCullough to/from
8 Adelanto
9
10 Scheduling Procedures
11
12 1. Each Member will furnish hourly preschedules each day to the M-S-R Coordinator for the
13 Member's intended use of the transmission projects.
14
15 2. If unused transmission capacity exists during any hour(s) of the day, the M-S-R Coordinator will.
16 notify all Members of the capacity available, the transmission path, direction, and hours of
17 availability.
18
19 3. Any Member may request use of the available capacity. If the amount of the requests are greater
20 than the capacity available, the M-S-R Coordinator shall allocate the available capacity on a pro
21 rata basis among the requesting Members.
22
23 4. If transmission capacity remains available after step 3 above, the M-S-R Coordinator shall make
24 best efforts to mazket the available transmission capacity to third parties, using, the WSPP bulletin
25 board or other means available. The M-S-R Coordinator shall make best effort to market such
26 available capacity as interruptible, or such other class as the M-S-R Coordinator deems
27 appropriate. The M-S-R Coordinator shall market the available transmission capacity to non-
28 taxable entities first, whenever possible.
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i Rev�s:.d: January 17 1�9�
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1 5. The M-S-R Coordinator shall keep records of any transactions with third parties, and which
2 Member's capacity was used to support the transaction. If more than one Member has unused
3 capacity during the hour(s) of the transaction, the transaction will be deemed to be supported by
4 those Members on a pro rata basis, based upon their unused capacity amount.
5
6 Scheduling Instructions
7
8 The scheduling instructions (times of submittal for preschedules, format, and so forth) have been
9 developed by the City of Los Angeles, Department of Water and Power (LADWP), Salt River Project,
10 and Western Area Power Administration as Project Managers for the above transmission project. The
11 detailed procedures will be approved by the Mead-Phoenix Project and Mead-Adelanto Project
12 Engineering& Operations(E&O) Committee prior to the date of commercial operation of the projects.
13 At present time, consensus on LADWP's procedures has not been reached. In the interim, LADWP will
14 be using "standard scheduling procedures for interconnected operation" until procedures similar to
15 WAPA's are developed and agreed to by the participants.
16
17 Loss Re�avment
18
19 Losses are to be paid in dollars or repaid in kind to the Project Managers in accordance with the detailed
20 scheduling procedures developed above and approved by the E&O Committee.
21
22
23
24
25
26
27
28
T . - ` � . ^ _r."^ . .. ,.... . ._ . . . .. ..
„ _�.,.._...,. ,._.... - . _. . ... . . ._ .. . ... ... .. ... ... ... .
�i ..� ...\.��.i. ..._.,..a J _ _. . �. .� i
�� �
� �
1 M-S-R PUBLIC POWER AGENCY
2 OPERATING AGREEMENT
; SERVICE SCHEDULE D
4 RESOURCE AND TRANSMISSION AGREEMENTS
5
6 Firm Transmission Service:
7
8 1. Firm transmission service - City of Los Angeles, Department of Water and Power
9
10 Point of Receipt: Adelanto Substation or the midpoint of the Victorville-Lugo line.
11
12 Point of Delivery: Adelanto Substation or the midpoint of the Victorville-Lugo line.
13
14 Service: 210 MW, bi-directional.
15
16 Losses: 0.2% losses-Adelanto to the Midpoint of Victorville-Lugo line
17
18 Dispatching Fees: Dispatching fees apply. Reference Agreement and associated rate
19 tariffs for current cost.
20 Terminates: Upon 4 years notice by LA. Notice cannot be given prior to one year
21 after the effective date of the Agreement.
22
23 2. Firm transmission service - Southern California Edison Company
24
25 Point of Receipt: Midpoint of the Victorville-Lugo transmission line at 500-kV
26 (Midpoint) or Midway Substation.
27
28 Point of Delivery: Midpoint of the Victorville-Lugo transmission line at 500-kV
.. ... ... ..
. .. ...
Revised: Januan� 17. 1997 D - i
�
�
� �
1 (Midpoint) or Midway Substation.
2
3 Service: 150 MW firm from Midpoint to Midway, 150 MW non-firm from
4 Midway to Midpoint.
5
6 Losses: 1.67% losses-Midpoint to Midway
7
8 Dispatching Fees: Dispatching fees apply. Reference Agreement and associated rate
9 tariffs for cunent cost.
10 Ternunation: Upon 5 years notice by M-S-R or permanent removal from service of
11 the Mead-Adelanto line.
12
13 Non-Firm Transmission-Service:
14
15 1. Interruptible Transmission Service - Southern California Edison Company
16 Points of Receipt: Mead 230-kV bus
17 Eldorado 500-kV bus
18 Midpoint
19 Palo Verde 500-kV bus
20
21 Point of Delivery: Midway 500-kV bus
22
23 Service 300 NIW ma�mum, bidirectional
24
25 Losses: 3.91% losses-Mead to/from Midway
26 3.66% losses-Eldorado to/from Midway
27 1.67% losses-midpoint to/from Midway
28 5.65% losses-Palo Verde to/from Midway
Revised: January 17, 1997 D - 2 � �
�� �
. � �t
1 0.25% losses-Mead to/from Eldorado
2 2.39% losses-Mead to/from Midpoint
; 2.14% losses, Eldorado to/from Midpoint
4 4.13% losses, Palo Verde to Midpoint
5 Note: Typically, losses are reduced from the scheduled power flow. Payment for losses
6 may also be an option. Refer to the Agreement for payment rates and the appropriate tariff.
7
8 Dispatching Fees: Dispatching fees apply. Reference Agreement and associated rate
9 tariffs for cunent cost.
10 Notice: Scheduling procedures will be as agreed upon by the dispatchers
11
12 Terminates: 30 days advance notice
13
14 Economv Energv:
15
16 1. Interchange Agreement-San Diego Gas & Electric (SDG&E).
17
18 Service: Surplus Capacity, Energy, Transmission and other services
19
20 Delivery Point: As mutually agreed
21
22 Rates: In accordance with the rate schedule
23
24 Notice: Pre-scheduled at least 24 hours in advance
25
26 Terminates: one year notice
27
Zs
Revised: January 17, 1997 D - 3 " -
I,
. � �.
1 2. Non-firm Energy - Arizona Electric Power Cooperative (AEPCO)
2
3 Service: Non-firm energy interchange between M-S-R and AEPCO
4
5 Delivery Point: Palo Verde at 500-kV or other points as agreed
6
� Rates: Agreed upon by M-S-R and AEPCO for each transaction
8
9 Notice: When available
10
11 Terminates: 30 days advance notice
12
13 3. Economy Energy - Salt River Project (SRP)
14
15 Service: Economy energy between M-S-R and SRP
16
17 Delivery Point: To be agreed upon at time of transaction
18
19 Rates: Agreed upon by M-S-R and SRP for each transaction
20
21 Notice: Pre-scheduled at least 24 hours in advance, subject to change for
22 emergency.
23
24 Terminates: 30 days advance notice
25
26 4. Economy Energy - Public Service Company of New Mexico (PNM)
27
28 Service: Economy Energy between M-S-R and PNM
Revised: January 17, 1997 D - 4 ` � `
� �
1 Delivery Point: Palo Verde
2
3 Rates: To be agreed upon by M-S-R and PNM for each transaction
4
5 Notice: Pre-scheduled at least 24 hours in advance
6
7 Terminates: Upon termination of the M-S-R/PNM interconnection agreement
8
9 5. Economy Energy - Arizona Public Service Company (APS)
10
11 Service: � Economy Energy between M-S-R and APS
12
13 Delivery Point: Westwing 345 Kv
14
15 Rates: To be agreed upon by M-S-R and APS for each transaction
16
17 Notice: Should be pre-scheduled at least 24 hours in advance
18
19 Terminates: Upon 60 days advance notice
20
21 6. Economy Energy -Imperial irrigation District (IID)
22
23 Service: Economy Energy between M-S-R and IID
24
25 Delivery Point: Palo Verde or other points as agreed
26
27 Rates: To be agreed upon by M-S-R and IID for each transaction
28
. .. .. .
Revised: Januar✓ 17, 199? D - ; . - ... - - ..
il I
. � �
1 Notice: Should be pre-scheduled at least 24 hours in advance
2
3 Terminates: Upon 30 days advance notice
4
5 7. Economy Energy - EI Paso Electric (EPE)
6
7 Service: Economy Energy between M-S-R and EPE
8 Emergency Assistance
9
10 Delivery Point: as mutually agreed
11
12 Rates: To be agreed upon by M-S-R and EPE for each transaction
13
14 Notice: Should be pre-scheduled at least 24 hours in advance
15
16 Terminates: Upon 60 days advance notice
17
18 8. Economy Energy: Tucson Electric Power Company (TEP)
19
20 Service: Economy Energy between M-S-R and TEP.
21
22 Delivery Point: Palo Verde, Moenkopi, or Westwing
23
24 Rates: To be agreed upon by M-S-R and TEP for each transaction.
25
26 Notice: Should be prescheduled at least 24 hours in advance.
27
28 Terminates: Upon 30 days' advance notice.
... ..., ... ..
Revised: January 17, 1997 D - 6 �
� �
1 SERVICE SCHEDULE E
2
3 MEYIBER NOTIFICATION REGARDING
4 M-S-R GENERATION AND/OR TRANSMISSION RESOURCES
5
6
7 This Service Schedule E has been developed to provide guidance to the M-S-R Coordinator
8 regarding issues while workin� on behalf of the M-S-R Members and N�.
9
10 LONG TERM SALES AND PURCHASES OF M-S-R GENERATION AND
11 TRANSMISSION RESOURCES (Longer than one monthl:
12
13 M-S-R OR MEMBER SOLICITED: All Members must be notified of the
14 proposed transaction. Each Member shall be allowed to participate based upon
15 either its entitlement or desired participation up to its maximum entitlement.
16 iTNSOLICITED OFFER MADE TO M-S-R OR A MEMBER: Same as above.
17
18 SHORT TERM SALES AND PURCHASES OF M-S-R GENERATION AND
19 TRANSMISSION RESOURCES (ONE MONTH OR LESS):
20
21 M-S-R SOLICITED: All Members must be notified of the proposed transaction.
22 Each Member shall be allowed to participate based upon either its entitlement or
23 desired participation up to its maximum entitlement.
24 UNSOLICITED OFFER MADE TO M-S-R: Same as above.
25 MEMBER SOLICITED OR UNSOLICITED: Each Member reserves the right
26 to solicit sales and purchases of its entitlement of M-S-R resources. The other
27 Members are not required to be notified by the soliciting Member.
28
_ . ... .._ , ,. ..
.. .: ; _. ... ....
Revised: January 17, 1997 E - 1 - � • � ��
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' � �
1 SERVICE SCHEDULE F
2
3 M-S-R OPERATING PROCEDURE FOR ACCOUNTING
4 FOR
5 TAXABLE USE OF SAN NAN GENERATION
6
7
8 This Service Schedule F shall be used by the M-S-R Coordinator and the members of M-S-R for
9 entering into power sales, exchanges, and other similar transactions utilizing the San Juan Resource.
10 This procedure is designed to provide guidance to scheduling and short and long term contract
11 personnel while maintaining the integrity of M-S-R's tax obligations under various tax exempt
12 financing anangements.
13
14 A. Private corporations, and certain publicly owned utilities are considered "Bad Use
15 Entities" in accordance with the rules of the Internal Revenue Service for tax exempt
16 municipal financing.
17
18 Sales of energy pursuant to "spot sale" agreements of 30 days or less may be entered
19 into with "Bad Use Entities. Such agreements can be entered into under a master
20 agreement of longer or indefinite duration, provided the buyer at no time has an
21 obligation to take any particular amount of power beyond the next succeeding 30
22 days.
23
24 Expanding on the foregoing, spot sale agreements of 30 days or less to any one buyer
25 will be treated as separate contracts, hence not constituting prohibited private use,
26 if each such spot sale contract is priced and entered into at least 15 days apart from
27 any other such contract with that buyer.
28
Revised: Januarv 17, 199? F - 1 �
I
� i i
1 For example, if September, 1995 output is sold to a "Bad Use Entity" pursuant to a
2 contract priced and entered into on August 25, 1995, you could enter into a
; subsequent 30-day contract with that same party at any time after September 10,
4 1995.
5
6 B. Transactions may be entered into with certain public and municipal entities, deemed
7 "Good Use Entities" in accordance with the rules of the IRS, for more than 30
8 continuous days, however, because a "Good Use Entity's" end use could potentially
9 be to a "Bad Use Entity" a letter agreement will be required, as a minimum, and
10 should contain the following acknowledgement for tracking final use to a "Good Use
11 Entity".
12
13 Both parties acknowledge the firm energy will be for system use by
14 .(the receiver)
15
16 C. Any transaction anangement for more than 30 continuous days, where the tax
17 exempt status of the end user is uncertain, shall be reviewed and approved by M-S-R
18 Bond Counsel prior to finalizing the anangement. Such approval shall be in writing
19 and a copy provided to the M-S-R General Manager.
20
21 The terms "Good Use Entity" and "Bad Use Entity" are generic terms. If there is any doubt as to
22 the status of a prospective client, you should contact M-S-R's Bond Counsel.
23
24
25
26
27
28
Revised: January 17, 1997 F - 2
� �
1 SERVICE SCHEDULE G
2
3 COAL ALLOCATION PROCEDURES AMONG THE MEMBERS
4
5 PURPOSE: This Service Schedule G was developed by the M-S-R Members for the purpose of
6 describing how San Juan coal costs will be allocated among the Members.
7
8 1. No coal Renalty to M-S-R. All Members burn their respective minimum
9 requirement.
10 Allocate each Member's coal credit based upon the ratio of each Member's actual
11 generation for the year to their yearly minimum generation requirement.
12
13 2. No penalty to M-S-R One or more of the Members fails to meet its minimum
14 burn obligation.
15 Each Member which failed to meet its minimum coal obligation shall share the cost
16 of making whole, those Members which did meet their minimum coal obligation,
17 based upon the ratio of their actual generation versus their respective minimum
18 generation requirement. Such payment shall be at a rate equal to the difference
19 between the base coal cost and the incremental coal cost, for all KWh's generated
20 above the minimum generation requirement. Those deficient Members shall not
21 receive a coal credit as a result of making payment to the non-deficient Members.
22 �
23 3. M-S-R sustains a coal �enalty. One or more, but not all of the Members fails
24 to meet its minimum burn obligation.
25 Each Member which failed to meet its minimum coal obligation shall share the cost
26 of the entire M-S-R coal penalty based upon the ratio of each Member's actual
27 generation for the year to their yearly minimum generation requirement. In addition,
28 each Member which fails to meet its minimum coal obligation shall share the cost of
.. ..
Revised: January 17, 1997 G - 1 ' ' �
I
s �
1 makin�whole, those�lembers which did meet their minimum coal obligation. Those
2 Members which did not meet their minimum coal obligation shall compensate those
3 Members which did meet their minimum coal obligation, for all KWh generated
4 above their respective minimum generation requirement. The compensation rate
5 shall be equal to the difFerence between the base coal cost and the incremental coal
6 cost multiplied by the annual year ending average heat rate for Unit 4.
7
8 4. M-S-R sustains a coal penalty All Members do not meet their minimum burn
9 obligation.
10 Each Member shall share the coal penalty cost based upon each Member's actual
11 generation versus their respective minimum generation requirement.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Revised: January 17, 1997 G - 2 , - -
s •
1 SERVICE SCHEDULE H
2
; M-S-R OPERATING PROCEDURE FOR ACCOUNTING
4 FOR
5 TAXABLE USE OF M-S-R TRANSMISSION
6
7
8 M-S-R has secured ownership in transmission facilities in order to transmit enerDy from M-S-R's
9 ownership interest in the San Juan Generating Station (San Juan). From time to time, portions of this
10 transmission capacity will be available for sale to others. M-S-R, through coordination with the M-S-R
11 Members, may sell transmission to third parties. In addition, there may be times when individual M-S-R
12 Members make similar sales of its allocation of M-S-R Transmission. However, these sales must be
13 monitored to assure that M-S-R is not in violation of tax code rules associated with private use of
14 facilities financed by t�-exempt financing.
15
16 The purpose of this procedure is to provide M-S-R with a means to communicate with M-S-R's Members
17 relative to sales of M-S-R Transmission rights to third parties, which would constitute a private use of
18 M-S-R's transmission rights.
19
20 1. The M-S-R Coordinator will be responsible for monitoring of all sales of M-S-R's transmission
21 rights to others. Monitoring will only be required if the term of the sale is in excess of 30 days
22 and the sale is being made to a private use entity. For this purpose, a private use entity is any
23 entity other than a governmental unit. Governmental Units include States, and political
24 subdivisions thereof, but not the United States or its agencies or instrumentalities, as defined in
25 Section 141(b)(6) of the Internal Revenue Code of 1986.
26
27 2. The M-S-R Coordinator will determine the starting balance for the unrestricted sale of M-S-R
28 Transmission for each of the M-S-R Members. Such balances will be based upon each M-S-R
_
.. _...
Revised: January 17, 1997 H - 1 �� ��� � ���
� �
1 Member's ownership percentage associated with the transmission facilities which are the subject
2 of the transmission sale, adjusted for any previous bad-use commitments.
�
�
4 3. When M-S-R receives a request for transmission service which could require monitorin�, the
5 M-S-R Coordinator will contact the M-S-R Members to determine if they wish to participate in
6 the sale. The M-S-R Coordinator will also inform each M-S-R Member of its balance of
7 transmission rights available for sale. If a sale of transmission is made, the M-S-R Coordinator
8 will deduct the amount from the M-S-R Members' respective balances.
9
10 4. If an individual M-S-R Member is contemplating a sale of transmission rights which would
11 require monitoring, the M-S-R Member shall, prior to completing the sale, contact the M-S-R
12 Coordinator to determine that such a sale wouid not e�aust its balance of transmission rights
13 available for sale. When the sale is completed, the M-S-R Member will inform the M-S-R
14 Coordinator of the amount and duration associated with the sale and that amount will be
15 deducted from that Member's balance.
16
17 5. If the M-S-R Coordinator adjusts the transmission balances due to changes in regulatory
18 requirements or other causes not directly related to new sales of transmission, the M-S-R
19 Coordinator will promptly notify each of the M-S-R Members of its new transmission balance and
20 the basis for the modification.
21
22
23
24
25
26
27
28
Revised: January 17, 1997 H - 2 - - - -- � - - �
�I �
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1 SERVICE SCHEDULE I
2
; M-S-R PROCEDURES FOR RESPONDING TO
4 THIRD PARTY REQLTESTS FOR M-S-R TRANSMISSION
5 PURSUANT TO SECTIONS 211 AND 213 OF THE FEDERAL POWER ACT
6
7 1.0 PURPOSE OF PROCEDURES
8
9 1.1 Basic Purpose. These Procedures have been adopted, effective May 22, 1996, by
10 the M-S-R Public Power Agency to establish a process for responding to Third Party
11 Requests for M-S-R Transmission.
12
13 1.2 Procedures to be Consistent with Member Agreements and FERC Orders.
14 T'hese Procedures are intended to implement the M-S-R Operating Agreement and
15 the Tucson/San Juan Project Power Sales Agreement and are not intended to amend
16 or modify any provision of those agreements. These Procedures are also intended
17 to be consistent with all applicable Federal Energy Regulatory Commission (FERC)
18 Orders, Policies and Guidelines relating to requests for transmission services under
19 Sections 211 and 213 of the Federal Power Act (Act) to the extent that such Orders,
20 Policies, and Guidelines are applicable to the Agency. Should any such FERC
21 Orders, Policies or Guidelines be issued that are inconsistent with these Procedures,
22 such Orders, Policies or Guidelines shall prevail over these Procedures to the extent
2; of the inconsistency.
24
25 1.3 Time Requirements. These Procedures set forth time requirements within which
26 certain actions must be taken. Any of those time requirements may be modified with
27 respect to a specific request for M-S-R Transmission if the modification is agreed to
28 in writing by all parties. Time is of the essence for all requirements contained within
.. . .. ....
Revised: January 17, 1997 I - 1
� �
1 this procedure. M-S-R's ability to meet regulatory requirements and prepare
2 competitive responses to Third Party Requests for M-S-R Transmission depends on
3 timely responses by M-S-R and each M-S-R Member.
4
5 1.4 Revision of Procedures. These Procedures may be revised from time to time by the
6 M-S-R General Manager after timely notice to M-S-R Members with the approval
7 of the M-S-R Commission.
8
9 2.0 DEFINITIONS
10
11 When used in these Procedures, and capitalized, the following terms shall have the meanings
12 set forth in this section.
13
14 2.1 Date of Receipt. The date on which M-S-R or an M-S-R Member, receives any
15 Third Party Request for M-S-R Transmission, whether or not the request complies
16 with the requirements of Section 2.20 of the FERC regulations, which sets forth the
17 requirements of a good faith request for transmission service under Sections 211 and
18 213 of the Act; provided, that (i) if the request does not comply with such
19 requirements, but is later supplemented so that it does comply, or (ii) the request is
20 later substantially changed in some other manner, the Date of Receipt shall be the
21 date on which M-S-R or the M-S-R Member receives the supplement or the
22 substantial change.
23
24 2.2 Procedures. The procedures set forth in this document for respondin� to Third
25 Party Requests for M-S-R Transmission.
26
27 2.3 FERC. The Federal Energy Regulatory Commission.
28
Revised: January 17, 1997 I - 2
I
� �
1 2.4 M-S-R Member. An entity, initially the Modesto Irrigation District, the City of
2 Santa Clara, and the City of Redding, that is a party to the Agreement titled "Joint
3 Exercise of Powers Agreement of the M-S-R Public Power Agency," dated
4 November 17, 1982, as it may be amended and supplemented from time to time.
5
6 2.5 M-S-R Transmission. This term includes M-S-R's rights and entitlements to
7 transmission capability in the Mead-Phoenix Transmission Project (MPTP) and the
8 Mead-Adelanto Transmission Project (MATP); the Adelanto-Victorville/Lu�o
9 Midpoint Transmission Service provided by the Los Angeles Department of Water
10 and Power(LA Service); and the Victorville/Lugo Midpoint-Midway Transmission
11 Service provided by the Southern California Edison Company (SCE Service).
12
13 2.6 Third Parties. All entities other than M-S-R and M-S-R Members.
14
15 2.7 Third Party Request. A request for M-S-R Transmission made by a Third Party
16 to M-S-R and/or an M-S-R Member or Members.
17
18 3.0 RESPONSE TO A THIRD PARTY REQUEST TO AN M-S-R MEMBER OR
19 MEMBERS
20
21 An M-S-R Member that receives a Third Party Request for M-S-R Transmission shall inform
22 such a party that any request for M-S-R Transmission must be made to M-S-R and shall
23 transmit, within five (5) working days, a copy of the Third Party Request and its response
24 to the M-S-R General Manager and all other M-S-R Members for response by M-S-R
25 pursuant to Section 4.
26
27
28
Revised: January 17, 1997 I - 3
w i �
1 4.0 RESPONSE TO A THIRD PARTY REQUEST TO M-S-R
2
3 4.1 Process of Responding.
4 �
5 4.1.1 M-S-R's Acknowledgment of Receipt of the Third Party Request. In the
6 event that M-S-R receives a Third Party Request for M-S-R Transmission,
7 M-S-R shall, within five (5) working days, send copies of the request to all
8 M-S-R Members. M-S-R shall also deternune whether all requests satisfy the
9 good faith request requirements of Section 2.20 of the FERC regulations,
10 and shall send an acknowledgment of the request to the Third Party within
11 ten (10) days of receipt of the request. The acknowledgment shall include
12 a statement advising the Third Party of M-S-R's determination as to whether
13 the request satisfies the good faith request requirements of Section 2.20 of
14 the FERC regulations. M-S-R will send a copy of that acknowledgment to
15 all M-S-R Members.
16
17 4.1.2 M-S-R's Acknowledgment of Receipt of a Supplement to, or a Change
18 in, the Original Reques� In the event that (i) the Third Party Request does
19 not comply with the requirements of a good faith request for transmission
20 service under Sections 211 and 213 of the Act but is later supplemented so
21 that it does comply, or (ii) the Third Party Request is later substantially
22 changed in some other manner, M-S-R shall, within five (5) working days,
23 notify all M-S-R Members in writing of the revised request. M-S-R shall
24 determine whether the revised request satisfies the good faith requirements
25 of Section 2.20 of the FERC regulations, and whether the chan�e is
26 substantial and shall send an acknowledgment of the supplement or
27 substantial change to the Third Party within ten (10) days of the Date of
28 Receipt. The acknowledgment shall advise the Third Party of M-S-R's
_ _...
Revised: January 17, 1997 I - 4 - - - - -
� •
1 deternunation as to whether the revised request satisfies the requirements of
2 Section 2.20 of the FERC regulations and as to whether the change was
; sufficiently substantial to require a chan�e in the Date of Receipt.
4
5 4.1.3 Response of M-S-R Members Having Available M-S-R Transmission.
6 Any M-S-R Member that can provide all or a portion of the M-S-R
7 Transmission requested by the Third Party shall notify M-S-R of the terms
8 and conditions under which the transmission service may be offered by
9 M-S-R. That notice shall be served no later than forty-five (45) days after
10 the Date of Receipt. Copies of each M-S-R Member's notice shall be
11 provided by M-S-R to all other M-S-R Members. If such notices, in the
12 aggregate, indicate that M-S-R Members can provide more M-S-R
13 Transmission than requested by the Third Party, those M-S-R Members shall
14 attempt in good faith to reach agreement as to the allocation of M-S-R
15 Transmission to be provided by each M-S-R Member which offers to make
16 M-S-R Transmission available in response to such a request. In the event
17 that no agreement is reached, M-S-R Transmission will be offered pro rata
18 based on each offering M-S-R Member's entitlement share in M-S-R
19 Transmission, but not to exceed the amount that each M-S-R Member
20 initially offered to provide. When filing its notice, no M-S-R Member may
21 offer to provide more M-S-R Transmission than that requested by the Third
22 Party.
23
24 4.1.4 M-S-R's Response to Third Party. M-S-R shall prepare a formal response
25 to the Third Party Request within sixty (60) days of the Date of Receipt. If
26 the request satisfies the good faith request requirements of Section 2.20 of
27 the applicable FERC regulations, the response shall also conform to the
28
Revised: January 17, 1997 I - 5
, � �
1 requirements of that section of the regulations. A sample response that may
2 be used by M-S-R is attached to these Procedures as E�ibit A.
-,
�
4 5.0 RESPONSE TO A THIRD PARTY REQUEST TO BOTH M-S-R AND AN M-S-R
5 MEMBER OR MEMBERS
6
7 A Third Party Request to both M-S-R and an M-S-R Member or Members for the same
8 transmission service shall be responded to in accordance with Section 4 of these Procedures
9 in the same manner as a Third Party Request to M-S-R. M-S-R's acknowledgment of receipt
10 of the request shall include a statement advising the Third Party that M-S-R will provide a
11 response to the request on behalf of the M-S-R Member or Members.
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
�g
Revised: January 17, 1997 I - 6 - .. .. - _ ..
_ . . .. ... ... ...
�
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�
1 EXHIBIT A
2
; SAMPLE M-S-R RESPONSE TO THIRD PARTY
4 REQUEST FOR M-S-R TRANSMISSION
5
6 (Material that may not be appropriate for all responses is shown in parentheses.)
7
8 Requesting Third Party:
9
10 We have evaluated the request for transmission service over M-S-R's rights and entitlements
11 to transmission capability in the (Mead-Phoenix Transmission Project (MPTP)), (and/or the Mead-
12 Adelanto Transmission Project (MATP)), (and/or the Adelanto-Victorville/Lugo Midpoint
13 Transmission Service provided by the Los Angeles Department of Water and Power (LA Service)),
14 (and/or the Victorville/Lugo Midpoint-Midway Transmission Service provided by the Southern
15 California Edison Company (SCE Service)) herein "M-S-R Transmission" set forth in your letter
16 dated . (which was supplemented by your letter dated . )
17
18 (We are enclosing an executable service agreement under which M-S-R can provide the
19 transmission service that you have requested. The enclosed agreement explains the basis for the
20 charges set forth therein and describes all of the applicable terms and conditions under which the
21 transmission seivice will be provided. The offer set forth in the enclosed agreement will remain open
22 for days from the date of this letter. If you decide to accept the offer, you must execute and
23 return the original and one copy of the enclosed agreement to us on or before that date.)
24
25 (We have deterniined that the M-S-R Transmission capability we have available in excess of
26 that required for our own needs and to fulfill prior commitments to others will enable us to provide
27 part, but not all, of the transmission service you have requested. We can provide
28 megawatts of transmission service from to during the following time periods:
Revised: January 17, 1997 I - 7 ' � ` �
1
� i i
1 . We cannot construct additions to the (MPTP), (and/or the MATP) to
2 enable us to provide the remainder of the transmission service you have requested because our
3 minority ownership interest in the (MPTP), (and/or the MATP) does not allow us to unilaterally
4 construct Capital Improvements (and/or we do not have a contract right to increase our allocation
5 of M-S-R's entitlement to LA Service and/or SCE Service to provide the remainder of the service).
6 If you are interested in obtaining the portion of the requested service that we can provide, please so
7 advise us. We will send you an executable service agreement within 60 days of the date on which
8 we receive written notice that you are interested in obtaining the service that we can provide.)
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10 (We have determined that we do not have available any M-S-R Transmission capability
11 during the time periods specified in your letter in excess of that required for our own needs and to
12 enable us to fulfill prior commitments to others. Moreover, we cannot construct additions to the
13 (MPTP) (and/or the MATP) (and/or increase our allocation of M-S-R's entitlement to LA Service
14 and/or SCE Service) to enable us to provide the transmission service you have requested because
15 our minority ownership interest in the (MPTP) (and/or the MATP) does not allow us to unilaterally
16 construct Capital Improvements (and/or we do not have a contract right to increase our allocation
17 of M-S-R's entitlement to LA Service and/or SCE Service). Therefore, we cannot provide the
18 transmission service you have requested.)
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Revised: January 17, 1997 I - 8 - � - - .. - -