HomeMy WebLinkAboutReso 95-110 - Approving entering into a power exchange agreement between Pacificorp & COR _ f
RESOLUTION NO. 95-JLO
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING ENTERING INTO A POWER EXCHANGE AGREEMENT BETWEEN
PACIFICORP AND THE CITY OF REDDING.
WHEREAS, in 1983 the M-S-R Joint Powers Agency executed an agreement to
purchase an ownership interest in the San Juan coal-fired power project located in New
Mexico; and
WHEREAS, the City of Redding has a 15% share of M-S-R's interest in the San Juan
project; and
WHEREAS, the City of Redding and PacifiCorp wish to enter into a Power Exchange
Agreement, a copy of which is attached hereto and made a part hereof, to provide for the
exchange of San Juan energy delivered to PacifiCorp in the southwest for deliveries of
energy to Redding at the California-Oregon border; and
WHEREAS, this Agreement will provide Redding with an opportunity to fulfill its
long-held plan for growing into full utilization of the San Juan resource;
NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council approves
entering into said Power Exchange Agreement; that the Mayor execute the Agreement on
behalf of the City; and the City Clerk attest his signature and affix the seal of the City
thereto.
I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and
adopted at an adjourned regular meeting of the City Council on the 25th day of April,
1995, by the following vote:
AYES: COUNCILMEMBERS: P . Anderson , McGeorge , Murray and Kehoe
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: R . Anderson
ABSTAIN: COUNCIL MEMBERS: None
DAVID A. HOE, May
i
ATTEST: `,_ " FORM APPROVED:
CONNIE STROHMAY ity Clerk W. LEONARD WINGS , City Attorney
POWER EXCHANGE AGREEMENT
BETWEEN
PACIFICORP AND THE CITY OF REDDING
1. Preamble: THIS POWER EXCHANGE AGREEMENT ( "Agreement" ) , dated
this day of April 1995 , is between PacifiCorp, an Oregon
Corporation, and the City of Redding, a municipal corporation
organized under the laws of the state of California
( "Redding" ) . PacifiCorp and Redding are sometimes referenced
hereinafter collectively as "Parties" and individually as
"Party. "
2 . Explanatory Recitals
2 . 1 MSR has a 28 . 8 percent (143 MW) ownership interest in
Unit 4 of the San Juan coal-fired power project in
northwestern New Mexico.
2 . 2 Service Schedule E (dated January 23 , 1985, appended as
Exhibit A to this Agreement) to the TEP Interconnection
Agreement, sets forth terms and conditions under which TEP and
MSR share the reserve capacity and the reserve liability
associated with and occasioned by their respective ownership
interests in San Juan Units 1, 2 , and 4 . Among other things,
the TEP Interconnection Agreement provides MSR with reserve-
sharing rights and obligations .
2 . 3 Redding has a 15 percent entitlement in MSR' s rights to
CG\277.95 -1- April 24, 1995
Power from the San Juan project and under the TEP
Interconnection Agreement .
2 .4 Redding and PacifiCorp are Parties to an Existing
Agreement under which Redding purchases system capacity and
associated energy from PacifiCorp. Such purchases are
delivered to Redding at COB.
2 . 5 The Parties desire to enter into this Agreement under
which San Juan energy will be delivered by Redding to
PacifiCorp in exchange for energy of approximately equal value
delivered by PacifiCorp to Redding.
3 . Agreement: In consideration of the foregoing, the Parties
hereby agree as follows :
4 . Definitions: As used in this Agreement, the following terms
have the following meanings when used with initial
capitalization, whether singular or plural :
4 . 1 "Agreement" means this Power Exchange Agreement between
Redding and PacifiCorp, including Exhibits A, B, and C, which
are attached to this Agreement and made part of this
Agreement .
4 . 2 "Annual Variable Cost" means that certain weighted
average variable cost derived in accordance with Exhibit B to
the Existing Agreement and used in Exhibit C to this
CG\277.95 -2- April 24, 1995
Agreement .
4 . 3 "California-Oregon Border" (COB) means the boundary
between the states of California and Oregon.
4 .4 "Existing Agreement" means the Long-Term Power Sales
Agreement between PacifiCorp and Redding, dated October 19,
1993 .
4 . 5 "FERC" means the Federal Energy Regulatory Commission.
4 . 6 "GWh" means gigawatt-hour, a unit of electrical energy.
4 . 7 "Maximum Entitlement" means Redding' s 4 .32 percent
entitlement (15 percent of MSR' s 28 . 8 percent entitlement) to
San Juan Unit 4 energy production.
4 . 8 "MSR" means the M-S-R Public Power Agency, a Joint
Exercise of Powers Agency duly organized under the laws of the
state of California and consisting of the Modesto Irrigation
District, the City of Santa Clara, and the City of Redding.
4 . 9 "MW" means megawatt, a unit of electrical capacity.
4 . 10 "MWh" means megawatt-hour, a unit of electrical energy.
4 . 11 "Power" means electrical capacity and associated energy.
CG\277.95 -3- April 24, 1995
4 . 12 "TEP" means Tucson Electric Power Company or its
successor.
4 . 13 "TEP Interconnection Agreement" means the Intercon-
nection Agreement between TEP and MSR, dated September 20,
1982 , as amended, or its successor agreement .
5 . Term and Termination
5 . 1 Effective Date and Termination: This Agreement shall
become effective upon execution by both Parties . Service
under this Agreement shall commence at the hour ending 0100
Pacific Time on May 1, 1995 and, except as provided in
Sections 5 . 2 , 5 .3 and 5 .4 of this Agreement, shall be
coterminous with the Existing Agreement .
5 . 2 Regulatory Approval : PacifiCorp shall file this
Agreement with the FERC in a timely manner subsequent to its
execution. PacifiCorp shall provide Redding with a copy of
the filing prior to submittal to the FERC, and Redding shall
file a letter of concurrence with the FERC supporting
PacifiCorp' s filing of this Agreement . If the FERC does not
approve or accept this Agreement for filing in its entirety,
the Parties shall exercise best efforts to amend this
Agreement to comply with the FERC action in a manner
consistent with the Parties' original intent . In the event
such an amendment is not executed by the Parties within
60 days (or longer if the Parties mutually agree) of the
CG\277.95 -4- April 24, 1995
FERC' s action, either Party shall have the option to terminate
this Agreement upon thirty days' written notice to the other
Party. In such event, any liabilities accrued between the
effective date of this Agreement and the effective date of
termination, inclusive, shall remain intact .
5 .3 Early Termination By Redding: Redding shall have the
right to terminate this Agreement upon four months' prior
written notice, provided that in no event shall any
termination under this Agreement be effective prior to the
hour ending 2400 Pacific Time on September 30, 1995 .
5 .4 Early Termination By PacifiCorp: PacifiCorp shall have
the right to terminate this Agreement upon one year' s prior
written notice.
6 . Point (s) of Delivery
6 . 1 Deliveries to PacifiCorp: Power delivered by Redding or
its agent (s) pursuant to this Agreement shall be delivered to
PacifiCorp at the Palo Verde, Westwing, Moenkopi, or San Juan
delivery points (as designated at any time [subject to the
provisions of Section 8 of this Agreement] by PacifiCorp) , or
as otherwise mutually agreed by the Parties . The delivery of
such Power to PacifiCorp shall be in accordance with Section 7
of this Agreement .
6 . 2 Deliveries to Redding: Power delivered by PacifiCorp to
CG\277.95 -5- April 24, 1995
Redding in consideration of receipt of San Juan energy shall
be delivered at COB or as otherwise mutually agreed by the
Parties . The delivery of such Power to Redding shall be
consistent with Section 7 of this Agreement and with all Power
delivery provisions under the Existing Agreement .
7 . Power Exchange Oblicrations
7 . 1 Redding Deliveries to PacifiCorp • Redding' s obligation
to deliver Power to PacifiCorp shall be as follows :
7 . 1 . 1 Maximum Capacity Delivery: Redding shall make
available to PacifiCorp its maximum share of capacity
from San Juan through a combination of Redding' s rights
to Unit 4 Power and Redding' s rights under Exhibit A to
this Agreement, provided that, if Redding' s rights to San
Juan Power are reduced during San Juan unit outages,
PacifiCorp' s rights to Power under this Agreement shall
be reduced to the amount available to Redding under
Exhibit A to this Agreement .
7 . 1 . 2 Redding' s Rights to Capacity: To the extent, in
any given hour, PacifiCorp does not exercise its full
rights under Section 7 . 1 . 1 of this Agreement, Redding
shall have the right to schedule for its own account
capacity (and associated energy) equal to the difference
between the maximum amount of Power made available to
Redding in a given hour and the amount of Power that is
CG\277.95 -6- April 24, 1995
being scheduled by PacifiCorp for that hour.
7 . 1 . 3 Minimum Deliveries : During each hour in which San
Juan Unit 4 is operating, PacifiCorp shall have the
obligation to take delivery of a minimum of 9 MWh/hr.
During times when Unit 4 is unavailable, this obligation
shall become zero.
7 . 1 .4 Energy Deliveries : The following energy delivery
provisions shall apply:
7 . 1 .4 . 1 Beginning with the commencement of service
pursuant to Section 5 . 1 of this Agreement and
ending December 31, 1995 , inclusive, PacifiCorp
shall have the right to take delivery of up to
Redding' s Maximum Entitlement . During that same
time period, PacifiCorp shall have the obligation
to take delivery of the lesser of (1) Redding' s
Maximum Entitlement, or (2) 86 . 7 GWh of San Juan
Unit 4 energy, provided that this obligation shall
be reduced by an amount equal to the reduction in
Redding' s Maximum Entitlement caused by partial or
complete forced outages .
7 . 1 .4 .2 Each calendar year thereafter, PacifiCorp
shall have the right to take delivery of up to
Redding' s Maximum Entitlement . During those same
time periods, PacifiCorp shall have the obligation
CG\277.95 -7- April 24, 1995
to take delivery of the lesser of (1) Redding' s
Maximum Entitlement, or (2) 130 GWh of San Juan
Unit 4 energy, provided that this obligation shall
be reduced by an amount equal to the reduction in
Redding' s Maximum Entitlement caused by partial or
complete forced outages . This obligation shall not
be reduced by any energy to which PacifiCorp takes
delivery under the Exhibit A to this Agreement .
7 . 1 .4 . 3 In the event of a termination of this
Agreement, between January 1 of the calendar year
that such termination becomes effective and the
termination date, inclusive, PacifiCorp shall have
the right to take delivery of up to Redding' s
Maximum Entitlement . During that same time period,
PacifiCorp shall have the obligation to take
delivery of the lesser of (1) Redding' s Maximum
Entitlement, or (2) 10 . 8 GWh multiplied by the
number of months applicable to such time period,
provided that this obligation shall be reduced by
an amount equal to the reduction in Redding' s
Maximum Entitlement caused by partial or complete
forced outages .
7 . 1 . 5 In addition to the rights and obligations set
forth in Section 7 . 1 .4 of this Agreement, PacifiCorp
shall have the right to take delivery of Power and the
obligation to make available Power under the reserve-
CG\277.95 -8- April 24, 1995
sharing terms of Exhibit A to this Agreement .
7 . 2 PacifiCorp Deliveries to Redding: Energy delivered by
Redding to PacifiCorp from San Juan shall be exchanged for
energy to be delivered by PacifiCorp to Redding under the
Existing Agreement in accordance with the following
methodology:
7 . 2 . 1 PacifiCorp shall deliver an amount of energy to
Redding equal to the amount of San Juan energy delivered
to PacifiCorp multiplied by 1 .372 provided that, during
any calendar year, for any San Juan Unit 4 energy
delivered to PacifiCorp in excess of the minimum amount
derived pursuant to Section 7 . 1 .4 of this Agreement, the
aforementioned 1 . 372 shall be reduced to 1 . 100 (or lower
as mutually agreed from time to time by the Parties) .
7 .2 . 2 Redding' s obligation to take delivery of energy
under the Existing Agreement shall be reduced by the
greater of the amount derived in Section 7 . 2 . 1 of this
Agreement or the amount derived in Section 7 . 1 .4 of this
Agreement multiplied by 1 . 372 .
7 . 2 .3 PacifiCorp' s obligation to deliver energy to
Redding under the Existing Agreement shall be reduced by
the amount derived in Section 7 . 2 . 1 of this Agreement .
The accounting associated with the foregoing provisions of
CG\277.95 -9- April 24, 1995
0 0
this Section 7 . 2 are exemplified in Exhibit C to this
Agreement .
7 . 3 Bond Covenant Restriction (s) : PacifiCorp hereby
acknowledges that federal tax law imposes certain restrictions
regarding the terms and conditions under which Redding is
permitted to deliver San Juan energy to PacifiCorp without
adversely affecting the tax-exempt status of the bonds issued
by MSR to finance its share of the facilities comprising the
San Juan generating. station. PacifiCorp hereby represents and
covenants that to the extent any energy exchanged by Redding
under this Agreement is exchanged on a nonsimultaneous basis,
PacifiCorp shall use such energy for the purpose of satisfying
one or more of PacifiCorp' s peak demands . Redding and
PacifiCorp agree that one manner in which the latter may
satisfy the foregoing covenant is by using San Juan energy in
place of hydroelectric energy to meet its then-current load
and thereby continue storing water "behind the dam" for
purposes of meeting subsequent peak load(s) . In no event
shall PacifiCorp be liable to any party in connection with any
impairment or loss of the tax-exempt status of bonds issued by
MSR in connection with San Juan, and Redding shall indemnify
and hold PacifiCorp harmless in regard to any claim associated
with any such impairment or loss .
8 . Scheduling: All scheduling under this Agreement shall be in
accordance with the terms of Exhibit B to this Agreement .
Such terms are premised in part upon Redding' s scheduling
CG\277.95 -10- April 24, 1995
and/or notification obligations to other parties . On an
ongoing basis during the term of this Agreement, Redding shall
use best efforts to facilitate PacifiCorp' s real-time
scheduling and system operation requirements (e .g. , timing and
direct communications with other entities associated with
Redding' s San Juan resource) as they pertain to this
Agreement . To the extent the aforementioned obligations are
mitigated for Redding, Redding shall use best efforts to
provide commensurate relief for PacifiCorp.
9 . Audit Rights: The Parties, at their own expense, shall have
the right to audit and to examine any operating and/or
financial data related to any item set forth in this
Agreement . Any such audit shall be undertaken by the auditing
Party or its representatives at reasonable times and in
conformance with generally accepted auditing standards . The
right to audit any information shall extend for a period of
five years following the transaction to which such information
pertains under this Agreement . Both Parties fully agree to
cooperate with such audit and to retain all necessary records
or documentation for the entire length of the audit period.
Both Parties shall take all steps reasonably available to
secure the confidentiality of each other' s accounting records
and supporting documents . If any such audit discloses that
any discrepancies as to the intent of this Agreement, both
Parties hereby agree to attempt to remedy such discrepancy in
an expeditious manner.
CG\277.95 -il- April 24, 1995
10. Notices : All written notices, demands, or requests required
by the Agreement or the provisions hereunder, including
billing invoices, shall be considered given when delivered in
person or prepaid telegram or sent by first-class mail,
postage prepaid, deposited in the U. S . mail, directed as
follows :
To Redding:
Electric Utility Director
City of Redding--
760 Parkview Avenue
Redding, California 96001-3396
To PacifiCorp:
Vice President, Power Systems and Development
PacifiCorp
825 NE Multnomah, Suite 485
Portland, Oregon 97232-4116
with copy to:
Manager, Contract Customer Administration
PacifiCorp
825 NE Multnomah, Suite 625
Portland, Oregon 97232-4116
The Parties may change at any time the persons to whom notices
are addressed, or their addresses, by providing notices
thereof as specified in this Section 10 .
11. Uncontrollable Forces : Neither Party to this Agreement shall
be considered to be in default in performance of any
CG\277.95 -12- April 24, 1995
obligation hereunder if failure of performance shall be due to
an Uncontrollable Force . The term "Uncontrollable Force"
means any cause beyond the control of the Party affected,
including, but not limited to, failure of facilities, flood,
tsunami, earthquake, storm, fire, lightning, epidemic, war,
riot, civil disturbance, labor disturbance, sabotage, and
restraint by court order or public authority, which, by
exercise of due foresight, such Party could not reasonably
have been expected to avoid; and to the extent that by
exercise of due diligence, it shall not have been able to
overcome. A Party shall not, however, be relieved of
liability for failure of performance to the extent such
failure is due to causes arising out of its own negligence or
to the extent such failure is the result of removable or
remediable causes which it fails to remove or remedy with
reasonable dispatch. Any Party rendered unable to fulfill any
obligation by reason of an Uncontrollable Force shall exercise
due diligence to remove such inability with all reasonable
dispatch and shall notify the other Party of such
Uncontrollable Force as soon as practicable. Nothing
contained herein, however, shall be construed to require a
party to prevent or settle a strike against its will .
12 . Recrulatory Modification: In the event that subsequent to the
approval referenced in Section 5 . 2 of this Agreement, the FERC
or any agency or court of competent jurisdiction materially
modifies any term or condition of this Agreement in such a
manner that either Party is required to incur new or different
CG\277.95 -13- April 24, 1995
obligations not expressly provided herein, the Parties shall
attempt in good faith to renegotiate the terms and conditions
of this Agreement so as to preserve the original intent
contemplated by the Parties . In the event the Parties are
unable to renegotiate the terms and conditions of this
Agreement, this Agreement shall terminate within 60 days of
receiving notification from FERC, any agency, or any court of
competent jurisdiction requiring material modifications to
this Agreement .
13 . Waiver: Any waiver by a Party to this Agreement of its rights
with respect to a default hereunder or with respect to any
other matter arising in connection herewith shall not be
deemed to be a waiver with respect to any subsequent default
or matter. No delay, short of the statutory period of
limitations, in asserting or enforcing any right hereunder
shall be deemed a waiver of such right .
14 . Indemnification: Except as provided in this Section, each
Party hereto hereby assumes all liability for injury or damage
to persons or property arising from the act or neglect of its
own employees, agents, or contractors and shall indemnify and
hold the other Party harmless from any liability arising
therefrom. Notwithstanding the foregoing, no Party shall be
liable, whether in contract warranty, tort, or strict
liability, to the other Party for any injury or death to any
person or for any loss or damage to any property caused by or
arising out of an electric disturbance on that Party' s
CG\277.95 -14- April 24, 1995
electric system, whether or not such electric disturbance
resulted from that party' s negligent, grossly negligent, or
wrongful act or omission, excepting only action knowingly or
intentionally taken, or failed to be taken, with the intent
that injury or damage should result therefrom or which action
is wantonly reckless . Each Party releases the other Party
from, and shall indemnify the other Party for, any such
liability. As used in this Section, (1) the term "Party"
means, in addition to such Party itself, its directors,
officers, and employees; (2) the term "damage" means all
damage, including consequential damage; and (3) the term
"person" means any person, including those not connected with
either Party to this Agreement .
15 . Dispute Resolution: The Parties shall make best efforts to
settle all disputes arising under this Agreement as a matter
of normal business and without recourse to litigation.
Pending resolution of a disputed matter, the Parties shall
continue performance of their respective obligations pursuant
to this Agreement .
16 . Assicxnability: This Agreement shall not be assigned without
the prior written consent of the Parties, which consent shall
not be unreasonably withheld, except :
16 . 1 To any person or entity into which or with which the
Party making the assignment is merged or consolidated or to
which the Party transfers substantially all of its assets .
CG\277.95 -15- April 24, 1995
0
16 .2 To any person or entity wholly owning, wholly owned by,
or wholly owned in common with the Party making the
assignment .
No assignment, merger, or consolidation shall relieve any
Party of any obligation under this Agreement . Subject to the
foregoing restrictions in this Section 16, this Agreement
shall be binding upon, inure to the benefit of, and be
enforceable by the Parties-.and their respective successors and
assigns .
IN WITNESS WHEREOF, the Parties to this Agreement have caused
this Agreement to be executed in their respective names by their
respective officers thereunder duly authorized.
CITY OF REDDING
By:
Attest : Title :
By: Address :
Title.
PACIFICORP
By.
Title.
Address :
CG\277.95 -16- April 24, 1995
EXHIBIT A
INTE CONNECTION AGREEMENT
between
TUCSON ELECTRIC POWER COMPANY
and
M-S-R PUBLIC POWER AGENCY
SERVICE SCHEDULE E
RESERVE SHARING
This Service Schedule E is agreed upon as part of the Inter-
connection Agreement entered into between TUCSON ELECTRIC POWER
COMPANY ("Tucson" ) and M-S-R PUBLIC POWER AGENCY ("M-S-R" ) .
E.1 This Service Schedule E shall be deemed effective when
the purchase of an undivided 28.8% ownership interest in San Juan
Generating Station Unit No. 4 ("Unit No. 40) from PNM is completed
by M-S-R. This Service Schedule shall be in effect thereafter for
the life of Unit No. 4 or until terminated by either Party upon
three (3) years advance written notice.
E.2 This Service Schedule E sets forth the terms and condi-
tions under which the Parties shall share the reserve capacity
and the reserve liability associated with and occasioned by their
respective ownership interest in Unit No. 4 and in San Juan
Generating Station Unit No. 1 and Unit No. 2 ("Unit No. 1" and
"Unit No. 2") .
E.3 It is contemplated that M-S-R will acquire an undivided
28. 8% ownership interest in Unit No . 4 on May 1, 1995. Said 28.8%
ownership interest in Unit No. 4 is estimated to be 138 MW of
capacity and energy. When M-S-R acquires said ownership interest
i41 Uni . No. 4 , the Parties hereby agree that M-S-R will assign to
Tucson fcr reserve puzz-ses one-half of :4-S-R' s capacity rights
in Unit No. 4 and Tucson will in turn assign to M-S-R for reserve
purposes an equal amount of Tucson' s capacity rights in Unit No. I
and Unit No. 2.
E.4 It is recognized that this Service Schedule E is entered
into for the purpose of reducing the reserve requirements of M-S-R
and Tucson only and it is understood that no ownership rights are
in any way to be affected by this Service Schedule E.
E.5 It is understood that M-S-R will count as capacity
one-half of its generation entitlement in Unit No. 4 and one
quarter in each of Unit No. 1 and Unit No. 2 , and will schedule
from these units based on their availability. For purposes of
energy accouting, M-S-R hourly energyantitlements shall be deter-
mined by multiplying the M-S-R participation percentage expressed
as a decimal quantity by Unit No. 4 hourly capability less the
ti-S-R hourly curtailment of Unit No. 1 and Unit No. 2 less the
M-S-R hourly curtailment of Unit No. 4. Energy schedules will be
adjusted to reduce imbalances in the course of the year based on
the M-S-R energy entitlements. Adjustments in the deliveries
of energy to M-S-R during the first two months of the succeeding
calendar year will be made based upon the year end equalization.
This two-month period may be extended by mutual agree-
ment of the Operations Committee if winter or spring maintenance
is scheduled on Unit No. 1, Unit No. 2 or Unit No. 4 and the
resulting energy shift is in a balancing direction.
E. 6 No time limit will be placed on the sharing of reserves
in Unit No. 1, Unit No. 2 or Unit No. 4 . However, energy imbal-
ances resulting from the sharing of reserves will be limited to
:e energy equivalent of 60 dads ' operation at 100 percent capa-
city factor operation of one-half, of the M-S-R entitlement in ---
7. 7 Start-up energy cbligaticns for the M-S-R share of
Unit No. 4 will be furnished to PNM by M-S-R and start-up energy
obligations for the Tucson share of Unit No. 1 and Unit No. 2 will
be furnished to PNM by Tucson.
When Unit No. 4 is down, Tucson will schedule start-up
energy to PNM for M-S-R. If Unit No. 1 or Unit No. 2 is operating,
M-S-R will schedule a like amount of energy from its capacity
rights in said operating Unit to Tucson. If both Unit No. 1 and
Unit No. 2 are not operating, Tucson will maintain an account of
energy scheduled to PNM for M-S-R and M-S-R will return a like
amount of energy to Tucson within 60 days of the date that Unit
No. 1, Unit No. 2 or Unit No. 4 1. returned to service.
In the event San Juan Unit'4No. 1 or Unit No. 2 should.
be subjected to an extended outage other than a normal maintenance
outage, Tucson will assign an equal amount of Reserve Sharing
capacity to M-S-R from the other San Juan Unit until the San Juan.
Unit experiencing the extended outage is returned. to service.
In. the event San Juan Unit No. 4 is subjected to an.
extended outage other than a normal maintenance outage, M-S-R
and Tucson will, four months after the start of the outage, sus.-
pend
us-pend Reserve Sharing until San Juan Unit No. 4 is returned to
service.
Executed this 21_�-_day of ` 3 AL),WLf 19 8 r .
TUCSON E:.ECTP.IC POWER COMPANY
_ By
M-S-R PUBLIC POWER AGENCY
Exhibit B
Scheduling Procedures
Annual Forecasts :
By December 10 of each calendar year, PacifiCorp shall furnish
Redding with a nonbinding estimate showing PacifiCorp' s
anticipated monthly usage of San Juan energy for the following
calendar year.
Monthly Preschedules :
By the 24th of each month, PacifiCorp shall furnish Redding
with a nonbinding estimate for the following month of the
hourly usage of San Juan energy. Such estimate may be in the
form of a typical weekday, Saturday, and Sunday/holiday hour-
by-hour schedule .
Daily Preschedules :
Prior to 07 : 50 hours each work day, PacifiCorp shall furnish
a preschedule for the following day(s) showing the intended
usage of San Juan energy.
Real-Time Schedules :
1 . Redding shall make best efforts to notify PacifiCorp of any
change necessary in prescheduled quantities necessitated by an
operating emergency or outage and the expected duration of the
operating emergency or outage.
2 . PacifiCorp shall make best efforts to notify Redding of any
changes necessary in prescheduled quantities due to
emergencies on its system. Real-time schedule changes should
be reported to Redding at least 45 minutes prior to the
affected hourly scheduling period and, preferably, 60 minutes
prior to the affected hourly scheduling period.
Exhibit C
Monthly Billing Example Under
This Agreement and the Existing Agreement
Assumptions :
Delivery to PacifiCorp @ San Juan (Agreement') : 14, 000 MWh
Exchange @ COB (1 .372 * 14, 000) : 19, 208 MWh
Existing Agreement @ COB (32, 000 - 19, 208) 12 , 792 MWh
TOTAL 32 , 000 MWh
Existing Agreement' Capacity Cost : $16.60/kW-Mo
Existing Agreement Annual Variable Costs : $16 . 02/MWh
Existing Agreement Transmission Costs : $ 3 . 09/MWh
Results :
The billing under the Existing Agreement would appear as
follows :
Capacity : 50 MW @ $16 . 60/kW-Mo $830, 000
Energy: 12 , 792 MWh @ $16 . 02/MWh $204, 928
Transmission: 32, 000 MWh @ $3 . 09/MWh $ 98, 880
TOTAL BILL $1,133, 808
"Agreement" refers to this Power Exchange Agreement between
Redding and PacifiCorp
2 "Existing Agreement" refers to the Long-Term Power Sales
Agreement between Redding and PacifiCorp dated October 19,
1993 .
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ItP �vx ss WEBREOV, the Parties to this Agreement have Caused
this }agreement to be executed in Chair respective names by their
respective officers thereunder duly authorized.
CITY OF RIDDING
By:
Atteatz Title:
sy: Address:
Title:
PACIFICORP
0 QA "
Title: � a�ryS
Address: e'1..�'��g &=QW&AL
i
ca\all.95 -i7- April 21, 1995
TOTAL P.002