Loading...
HomeMy WebLinkAboutReso 97-015 - Authorizing the execution of Letter Agreement No. 96-SNR-00117 with the US Dept of Energy, Western Area Power Admin, for a Peak load Mgmt Program � ,. . ,'�!_ . � � RESOLUTION NO. 97- /,S A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING EXECUTION OF LETTER AGREEMENT NO. 96-SNR- 00117 WITH THE UNITED 5TATES DEPARTMENT OF ENERGY, WESTERN AREA POWER ADMINISTRATION, FOR A PEAK LOAD MANAGEMENT PROGRAM. WHEREAS, the Department of Energy, Western Area Power Administration (Western), under the terms and conditions of Contract No. DE-MS65-83WP59008 entered into between Western and the City of Redding on January 16, 1984, as amended from time-to-time, furnishes firm electric energy to the City of Redding; and WHEREAS, Western must also supply power to other customers, including preference customers, and Western desires to create a mechanism to manage its customer load level; and WHEREAS, Western has proposed that the City of Redding participate in a load management program which would authorize Redding, when requested by Western, to purchase power on the open market and sell or charge it back to Western and receive a like amount of relief from Redding's annual must-take energy from Western; and WHEREAS, the proposed load management program has potential financial benefits to both Western and Redding; NOW, THEREFORE, BE IT RESOLVED that the City Council approves entering into the attached Letter of Agreement No. 96-SNR-00117 between the Department of Energy, Western Area Power Administration, and the City of Redding; and that the Mayor is authorized to execute the agreement on behalf of the City. I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular meeting of the City Council on the 4th day of February, 1997, by the following vote: AYES: COiJNCILMEMBERS: P• Anderson, R. Anderson, Kehoe and McGeorge NOES: COUNCIL MEMBERS: None ABSENT: COLTNCII.MEMBERS: Murray ABSTAIN: COUNCIL MEMBERS: None � ��. � ` G � DAVID . cGE E, or � �"I Attest: Form Approved: . ,/ � - � ,i �,� �����c �?` .,.............. . ... ., .. Connie Stro ayer, Ci erk W. Leonard Win�at' ;�City Attorney - - . ° � , c 'e � ���NT p,c• � • �_ �,a�� �`�'� Department of Energy x 1�f �� �Nestern Area Power Administration '� � � Sierra Nevada Customer Service Region �OSTATES�FP� 114 Parkshore Drive Foisom, California 95630-4710 JAN 2 2 1997 Letter of Agreement No. 96-SNR-00117 Mr. Phillip A. Perry Assistant City Manager City of Redding 760 Parkview Avenue Redding, CA 96001-3396 Dear Mr. Perry: The Western Area Power Administration, as part of its efforts to control Central Valley Project (CVP) costs, desires the ability to manage its customer load level. To that end, Western and the City of Redding desire to enter into an arrangement under which Redding, in accordance with Contract No. DE-MS65-83WP59008 (Contract 59008), agrees to curtail its schedules of CVP power when Western is experiencing peak load conditions. This Letter of Agreement No. 96- SNR-00117 (I,OA) sets forth the terms and conditions for a load management program between Western and Redding. Capitalized terms used in this LOA shall have the same meaning as those terms in Contract 59008 unless noted otherwise. Western and Redding agree to the following: l. This LOA shall become effective on January 1, 1997, and shall remain in effect until terminated upon the earlier of: (1) either Party providing at least thirty (30) days advance written notice to the other Party; or (2) termination of Contract 59008. All obligations incurred pursuant to this LOA shall be preserved until satisfied. 2. The procedures by which this LOA shall be implemented are as follows: 2.1 When Western has a need for Redding to curtail its schedule of CVP power, pursuant to Contract 59008, Western will contact Redding via their respective dispatchers. 2.2 Western will inform Redding of the megawatt level and duration of curtailment requested. Western will make best efforts to provide at least two-hours notice of the request for curtailment, and more when possible. _.. ....:.. ; .... ...,. .. ..... ... ....: ,....,:.._.:.... ; _,;._ . ... ... � � ` ' � Letter of�-eement No. 96-SNR-00117 2.3 Redding will inform Western whether or not resources are available to enable Redding to curtail deliveries of CVP power from Western. If resources are available, Redding will inform Western of the price for curtailment on a megawatt-hour basis, unless agreed otherwise by the Parties. The price will be determined on a case-by-case basis with each request for curtailment by Western. 2.4 Western will decide whether to accept Redding's offer. 2.5 Redding and Western acknowledge that Redding is not obligated to curtail deliveries of CVP power pursuant to this LOA. Redding will curtail deliveries of CVP power at its sole discretion, on a case-by-case basis. 2.6 Upon Western's acceptance of Redding's price, Redding will curtail deliveries of CVP power according to the terms of the offer, which shall specify the houriy quantities of CVP power to be curtailed and the duration of the curtailment. 2.7 As additional consideration for the curtailments undertaken by Redding under this LOA, the Total Annua( Scheduled Energy that Redding shall be required to purchase, during the period from October 1 through September 30 of any year this LOA remains in effect, shall be reduced on a kilowatt-hour for kilowatt-hour basis for any curtailments made by Redding pursuant to Section 2.6 above during the same October 1 through September 30 time period. 3. The following billing provisions shall apply: 3.1 Redding will provide a bill to Western on or before the seventh (7th) day of each month following the month in which the curtailments occurred. Western shall either: (1) pay each bill within thirty (30) days after receipt of the bill or the next business day thereafter if the 30th calendar day is a Saturday, Sunday, or Federal holiday; or (2) provide a credit on Redding's subsequent month's power bill from Western under Contract 59008 equal to the amount billed by Redding for such curtailments. 3.2 For bills issued by Redding for such curtailments that are not paid in full by the due date specified in Section 3.1 above, Western shall be liable to Redding for a charge of five hundredths percent (0.05%) of the principal sum unpaid for each day payment is delinquent, to be added until the amount due is paid in full. 4. Except as is specifically provided for herein, it is not the intent of this LOA to modify any agreements currently in effect between Western and Redding. Page2 ......... .... _.., ...:_..:.....:... .. _. ... ._. _. ,, . � ` � � ` � Letter �greement No. 96-SNR-00117 If you are in agreement with the terms stated above, please sign and date all five originals of this LOA, have the signatures attested, apply the appropriate seal, and return one of them to Sandee Peebles at this office. Sincerely, �� C ��� James C. Feider Regional Manager In Duplicate CITY OF REDDING By: (Seal) Title: Attest: Address: By: Title: Date: Page3 _...... ......... ....:........ ::...