HomeMy WebLinkAboutReso 93-026 - Approve & Authorize the mayor to execute Amendment No 3 to Contract DE-MS65-83WP59008 dated 01/16/84 with Dept of Energy, Western Area Power Admin.i
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
a
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE
'i AMENDMENT NO. 3 TO CONTRACT DE-MS65-83WP59008 DATED
i JANUARY 16, 1984, WITH THE DEPARTMENT OF ENERGY,
'I
WESTERN AREA POWER ADMINISTRATION; AND APPOINTING THE
DIRECTOR OF THE ELECTRIC UTILITY OR HIS DESIGNEE TO
SERVE AS THE CITY'S REPRESENTATIVE TO THE OPERATING
COMMITTEE ESTABLISHED BY SAID AMENDMENT.
WHEREAS, the City of Redding has entered into a Power Sales
Contract with the Western Area Power Administration; and
WHEREAS, attached hereto and incorporated herein by
reference is Amendment No. 3 to said Contract; and
WHEREAS, said. Amendment enables the City to utilize its own
power generation and other power resources to serve its load;
permits staff to optimize the economic use of those power
resources in accordance with prudent utility practices; and
provides the City with certain required control area services at
a lower cost than available alternatives; and
WHEREAS, said Amendment also confirms and clarifies the
direction for the City' s future resource development programs;
and
WHEREAS, -the Electric Department has requested City Council
approval of Amendment No. 3, and the appointment of the Director
of the Electric Utility or his designee to serve as the City' s
representative to the Operating Committee established by said
Amendment; and
WHEREAS, funding for the services provided by this Amendment
are included in the Electric Utility' s long-term economic
projections, and will be included in the Electric Utility' s FY
1994 and subsequent years' budget requests. The current estimate
of the funding requirement for FY 1994 is approximately $75,000 .
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1. The City Council of the City of Redding hereby approves
the attached Amendment No. 3 to said Power Sales Contract.
2. The Mayor of the City of Redding is hereby authorized
and directed to sign Amendment No. 3 on behalf of the City of
Redding; and the City Clerk is hereby authorized and directed to
attest the signature of the Mayor and to impress the official
seal of the City of Redding thereon.
3 . The Director of the Electric Utility or his designee is
hereby appointed as the City of Redding' s representative to the
Operating Committee established by said Amendment No. 3 .
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the day of 1993, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
CHARLIE MOSS, Mayor
City of Redding
A ST:
CONNIE STROHMAYER City Clerk
FO PROVED:
"NDALL A. HAYS City Attorney
2
ymendment No .3 to
Contract No. DE-MS65-83WP59008
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
CALIFORNIA
AND
THE CITY OF REDDING, CALIFORNIA
AMENDMENT TO CONTRACT DE-MS65-83WP59008 FOR ELECTRIC SERVICE
CITY OF REDDING
FOR REAL-TIME SCHEDULING
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
CALIFORNIA
AMENDMENT TO CONTRACT DE-MS65-83WP59008 FOR ELECTRIC SERVICE
CITY OF REDDING
FOR REAL-TIME SCHEDULING I
4
TABLE OF CONTENTS
Article
Page
1 . PREAMBLE 1
2 . EXPLANATORY RECITALS 1
3 . AGREEMENT 2
4 . TERM OF CONTRACT AMENDMENT 3
5 . DEFINITIONS
6 . SCHEDULING OF WESTERN POWER 4 4
7 . ENERGY ENTITLEMENT, SCHEDULE, AND DEVIATION ACCOUNTS 9
8 . REDDING/WESTERN SCHEDULING PROCEDURES 13
9 . DEVIATION ACCOUNTING BETWEEN METERED .AND
SCHEDULED ENERGY 13
10 . FORECASTS AND REPORTS 14
11 . RESERVE REQUIREMENTS 14 l
12 . SCHEDULING SERVICE PROVIDED BY WESTERN 14
13 . REGULATION 15
14 . SPINNING RESERVE 16
15 . RATES AND BILLING 16 I.
16 . NEGOTIATIONS WITH THIRD PARTIES 18
17 . OPERATING COMMITTEE 18
18 . DISPUTE RESOLUTION 19
19 . GENERAL POWER CONTRACT PROVISIONS 20
20 . EXHIBITS MADE PART OF THE PRIMARY CONTRACT 20
21 . PRIMARY CONTRACT TO REMAIN IN EFFECT 21
SIGNATURES 22
Exhibit B - Operating Agreement, Including Quantitative
Determinations
Exhibit D - Calculation of Monthly Energy Entitlement
Exhibit E - Percentage Amounts to be Applied for Scheduling
Monthly Energy Entitlements
Exhibit F - Scheduling Procedures
Exhibit G - Deviation Accounting Between Metered and
Scheduled Energy
Exhibit H - Forecasts and Reports
Exhibit I - NERC Memorandum re Dispute Resolution
Resolution
Exhibit J - Rates for Electric Service
i
Amendment No 3 to
Contract No. DE-MS65-83WP59008
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CSL VALLEY PROJECT
CALIFORNIA
AND
THE CITY OF REDDING, CALIFORNIA
AMENDMENT TO CONTRACT DE-MS65-83WP59008 FOR ELECTRIC SERVICE
CITY OF REDDING
FOR REAL-TIME SCHEDULING
n
amendment No. 3 to
Contract No. DE-MS65-83WP59008 '
1 2 . 3 . Redding and Western have entered into a Letter
2 Agreement No. 3 , dated May 1 , 1986 , ( Redding LOA-3 ) pursuant to
3 which Redding and Western agreed to negotiate to enter into the
4 necessary agreements to implement certain principles in said
5 Redding LOA-3 .
6
7 2 . 4 . Redding desires to engage in scheduling of its power
8 resources, including those Redding resources supplied by Western
9 and those supplied through Western' s system.
10
11 2 . 5 . Western sells Power to Redding pursuant to the Primary
12 Contract, provides transmission services pursuant to Contract
13 No. 88-SAO-40001 , and may provide certain other services to
14 Redding pursuant to Contract No. 92-SAO-20013 (Services Contract)
15 should that Services Contract become effective.
16
17 2 . 6 This Contract Amendment to the Primary Contract
18 implements the procedures to be followed in the scheduling and
19 accounting of Power purchased by Redding from Western under the
20 Primary Contract and the scheduling of Power from Redding' s own
21 and other purchased resources, as required to meet Redding' s
22 loads and reserve requirements .
'3
24 3 . AGREEMENT
25 The Parties agree to the terms and conditions set forth herein.
26
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Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 UNITED STATES
2 DEPARTMENT OF ENERGY
3 WESTERN AREA POWER ADMINISTRATION
4 CENTRAL VALLEY PROJECT
5 CALIFORNIA
6
7 AMENDMENT TO CONTRACT DE-MS65-83WP59008 FOR ELECTRIC SERVICE
. 8 CITY OF REDDING
9 FOR POWER SCHEDULING
10
11
12 1 . PREAMBLE
13 This Contract Amendment is made this day of ,
14 1993 , between the UNITED STATES OF AMERICA, WESTERN AREA POWER
15 ADMINISTRATION (Western ) and the CITY OF REDDING (Redding) , as
16 part of Contract No. DE-MS65-83WP59008, as amended ( Primary
17 Contract) pursuant to the same authorities . as the Primary
18 Contract and subject to all of the provisions of the Primary
19 Contract, except as herein amended. Redding and Western are
20 sometimes hereinafter referred to individually as "Party" and
21 together as "Parties . "
22
23 2 . EXPLANATORY RECITALS
24 2. 1 . Redding operates an electric power system, including
25 generation, transmission, and distribution facilities,
26 hereinafter referred to as Redding' s System.
27
28 2 . 2 . Redding is a preference customer of Western and is
29 directly connected with Western' s transmission system.
30
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i
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 in good faith, an appropriate replacement contract or contract
2 amendment which provides for the necessary or desirable
3 scheduling procedures and associated services.
4
5 5 . DEFINITIONS
6 5 . 1 . Annual Scheduled Western Energy: The sum of the
7 Scheduled Western Energy for the calendar year.
8
i
9 5 . 2 . Annual Energy Entitlement : The sum of the Energy
10 Entitlements under the Primary Contract for the calendar year
11 pursuant to Exhibit D.
12
13 5 . 3 . Average Monthly Load Factor: An average of
14 Redding' s load factor by month based on the most recent five ( 5 ) j
15 years of metered load data as calculated annually by Western, as
16 illustrated in Exhibit D. �
17
18 5 . 4 . Contract Amendment: This amendment to the Primary
19 Contract as it is amended or supplemented.
I
20
21 5 . 5 . Contract 2948A: Contract No. 14-06-200-2948A
22 between Western and Pacific Gas and Electric Company (PG&E) .
23
24 5 . 6 . Contract Rate of Delivery (CRD) : The maximum rate
25 of delivery of Western Power from Western to Redding as defined
26 in the Primary Contract .
27
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Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 4 . TERM OF CONTRACT AMENDMENT
2 4 . 1 . Except for Sections 6 through 18 and Exhibits E, F, G,
3 H and J, this Contract Amendment will become effective upon
4 execution and shall remain in effect for the term of the Primary
5 Contract, subject to the termination provisions of this Contract
6 Amendment given below. Upon Redding giving three ( 3 ) months'
7 advance written notice to Western, Sections 6 through 18 and
8 Exhibits E, F, G, H and J shall become effective on the later of
9 November 1 , 1993 or the first day of the month following the
10 three months' notice period, unless otherwise agreed by the
11 Parties, and shall remain in effect for the term of the Primary
12 Contract, subject to the termination provisions of this Contract
13 Amendment given below.
14
15 4 . 2. This Contract Amendment may be terminated by either
16 Party upon three ( 3 ) years' advance written notice, except as
17 provided in Section 13 . 2.
18
19 4 . 3 . If a Party terminates this Contract Amendment pursuant
20 to Section 4 . 2, then the Parties are relieved of any obligations
21 under this Contract Amendment and the scheduling of Western Power
22 to Redding shall revert to the procedures provided for in the
23 Primary Contract.
24
25 4 . 4 Upon either Party giving notice of termination of this
26 Contract Amendment and provided that the Parties' systems are and
27 will remain directly interconnected, the Parties shall negotiate,
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Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 between the Northern California areas and other adjoining areas
2 as may be designated by the Parties .
3
4 5 . 14 . Operating Committee : The committee established
5 pursuant to Section 17 of this Contract Amendment .
6
7 5 . 15 . Other Power: Power scheduled from Redding' s
8 resources or purchases which is transmitted to Redding' s System
9 but is not Western Power.
10
I
11 5 . 16 . Power: Capacity and associated energy .
12
13 5 . 17 . Primary Contract: The contract for electric
14 service to Redding (No. DE-MS65-83WP59008 ) between Redding and
15 Western as amended or supplemented. P
16 h,
17 5 . 18 . Prudent Utility Practice: Those practices,
i
18 methods, and procedures, as modified from time to time, that are
19 currently and commonly used by electric utilities to design,
20 engineer, select, construct, operate, and maintain electric power
21 facilities and equipment dependably, reliably, safely,
22 efficiently, and economically, with due regard to the state-of-
23 the-art in the electric power industry, as generally applied in
24 the Western Systems Coordinating Council area.
i
25
26 5 . 19 . Regulation Service: Regulation service provided
27 by Western pursuant to Exhibit G hereof.
6 -
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 5 . 7 . COTP : The California-Oregon Transmission Project.
2
3 5 . 8 . Deviation Allowance Band: An allowable MW limit,
4 positive or negative, which describes the difference between
5 Redding' s scheduled and metered Power, as set forth in Exhibit G.
6
7 5 .9 . Emergency: A period of time during which
8 Redding' s generation and/or transmission resources have been made
9 unavailable because of a forced outage.
10
11 5 . 10 . Energy Entitlement : The amount of monthly energy
12 Redding is entitled to purchase from Western pursuant to the
13 Primary Contract as determined in Section 7 of this. Contract
14 Amendment and set forth in Exhibit D to this Contract Amendment.
15
16 5 . 11 . Fiscal Year: The Federal Fiscal Year beginning
17 October 1 and ending the following September 30 .
18
19 5 . 12. Hourly Load Pattern: An amount of Power in each
20 hourly period determined by the forecasted load in such hourly
21 period multiplied by the ratio (not greater than one) of the CRD
22 divided by the forecasted peak System Load for the month.
23
24 5 . 13 . Interties : Refers to each or all of the
25 following: the Pacific Northwest/Pacific Southwest AC or DC
26 Intertie, SOT, the COTP, or other major transmission facilities
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Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 6 . SCHEDULING OF WESTERN POWER
2 6 . 1 . Redding shall have the right to schedule up to one
3 hundred percent ( 100% ) of Redding' s CRD in any scheduling period
4 subject to the specific restrictions contained in this Contract
5 Amendment, particularly the scheduling limitations of Exhibit G. i
6 Redding shall not schedule less than the lesser of thirty-five
7 percent ( 35% ) of its CRD or its System Load in any hour period
8 unless such reduction is agreed to by Western' s dispatchers.
9
10 6 . 2 . Western shall have the right to restrict Redding' s
I,
11 schedule of Western Power to generally conform with Redding' s
12 HourlyLoad Pattern when 1
( ) Western gives Redding at least one
13 hour' s notice prior to the affected hour( s ) ; and ( 2 ) in Western' s
i
14 sole judgment, Redding' s schedule of Western Power would
15 adversely impact ( a) Western economically or operationally, or
16 (b) Western' s ability to meet CVP project load and/or long-term
17 firm power sales obligations. Redding and Western dispatchers
18 may agree upon suitable alternative hourly schedules for the
i
19 delivery of Western Power to Redding, provided that, western
20 shall have the final determination whether, under the provisions
21 of this Section 6, Redding shall restrict its schedule of Western
22 Power to the Hourly Load Pattern.
23
24 6 . 3 . when it becomes necessary for Western to restrict the
25 delivery of Western Power to conform with Redding' s Hourly Load
26 Pattern, the Parties' dispatchers will use the monthly forecasted
27 peak System Load for Redding provided by Redding pursuant to
8 -
•
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1
2 5 . 20 . Scheduled Energy : The sum of Redding' s internal
3 generation, the schedule of Western Power, and the schedule of
4 Other Power to Redding.
5
6 5 . 21 . Scheduled western Energy: The monthly amount of
7 energy purchased and scheduled from Western by Redding at the
8 points of delivery designated in Exhibit C of the Primary
9 Contract.
10
11 5 . 22 . SOT: The South of Tesla Transmission over which
12 Redding has an allocation of the Transmission Agency of Northern
13 California' s (TAMC) entitlement to 300 MW of transmission service
14 between PG&E' s Midway substation in California, the COTP Southern
15 Terminus, and the IANC members, as defined in the SOT Principles
16 or the Federal Energy Regulatory Commission (FERC) approved rate
17 schedule for such service.
18
19 5 . 23 . System Load: The sum of the metered demand of
20 Redding as determined by the coincident sum of the net actual
21 interconnection flows and any internal Redding generation.
22
23 5 . 24 . Western Power: Capacity and associated energy
24 which Redding is entitled to purchase from western pursuant to
25 the Primary Contract.
26
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i
• Amendment No. 3 to p
Contract No. DE-MS65-83WP59008
1 7 . 2 . Redding' s Scheduled Western Energy in a month shall not
2 exceed the monthly percentage amounts , which are specified on
3 Exhibit E, of Redding' s Energy Entitlement for such month.
4 Energy scheduled by Redding from Western in excess of those
5 monthly percentage amounts of Redding' s Energy Entitlement for
6 the month shall be billed by Western as an unauthorized overrun
7 under Western' s rate schedules applicable to the Primary
8 Contract. The monthly percentage amounts specified in Exhibit E
9 may be modified by the Parties only upon mutual agreement. If
10 Redding schedules energy in excess of Redding' s Energy i
11 Entitlement for a month as allowed under this Section, then
12 Redding shall reduce its schedules of Western Power so that the
13 Annual Scheduled Western. Energy in a calendar year does not
14 exceed the limit provided in Section 7 . 4 below. Redding shall
15 make best efforts to provide such reductions in the months of
16 September through March or as otherwise agreed between the
17 Parties' dispatchers .
I
18
19 7 . 3 . The Annual Scheduled Western Energy in a calendar year
20 shall not be less than seventy-five percent ( 75% ) or greater than
21 one hundred percent ( 100% ) of the Annual Energy Entitlement as
22 specified in Exhibit D for the calendar year except as provided
23 for in Section 7 . 4 and 7 . 5 below.
24
25 7 . 4 . If the Annual Scheduled Western Energy in a calendar
26 year is greater than one hundred percent ( 100% ) of the Annual
10 -
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 Section 10 . This forecasted peak System Load estimate shall be
2 used to compute the Hourly Load Pattern for Western Power. If,
3 during a month, Redding' s peak System Load is expected to exceed
4 the forecasted peak System Load, then the new expected peak
5 System Load will become the forecasted peak System Load for the
6 purpose of calculating the Hourly Load Pattern. The Parties'
7 dispatchers will agree to the new expected peak System Load.
8
9 6 . 4 . Should it become necessary for Western to restrict
10 Redding' s schedule of Western Power to Redding' s Hourly Load
11 Pattern, such restriction shall be limited in duration and scope
12 to the extent necessary as determined by Western' s dispatchers to
13 reduce or eliminate the potential adverse impacts to Western.
14 Western shall distribute scheduling curtailments equitably, as
15 determined by Western, among its scheduling customers.
16
17 7 . ENERGY ENTITLEMENT, SCHEDULE, AND DEVIATION ACCOUNTS FOR
18 WESTERN POWER
19 7. 1 . The Energy Entitlement for Redding shall be determined
20 by multiplying the CRD by the Average Monthly Load Factor and by
21 the number of hours in the month for which the Energy Entitlement
22 is being computed, as specified in Exhibit D, which shall be
23 updated January 31 and July 31 of each year. In those months
24 when Redding' s monthly peak is less than its CRD, the monthly
25 projected peak shall be used in the computation of the Energy
26 Entitlement instead of the CRD.
27
9 -
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I
Amendment No. 3 to �-
Contract No. DE-MS65-83WP59008
1 If the annual billing charges for energy due Western in a
2 calendar year are less than the MABC as computed above for any
3 calendar year, then Redding shall pay Western the difference
4 between the annual billing charges and the MABC for the calendar
5 year under consideration, except to the extent the MABC may be
6 reduced as provided in the Services Contract if and when that
7 Contract becomes effective.
8
9 7 . 6 . Except as herein provided, it is the intent of this
10 Contract Amendment that there will be no deficit or excess energy
11 accounting relating to the scheduling and delivery of Western
12 Power.
13
14 7 . 7 . Nothing in this Contract Amendment modifies or
I
15 restricts Western' s right to withdraw Western Power from Redding
16 as that right is defined in the Primary Contract as amended and
17 as may be finally determined by the courts in the City of Santa
i
18 Clara, et al . vs . Watkins (Civil Action No. 85-2899 ) . Western and
19 Redding agree that this Contract Amendment shall not prejudice
20 any rights or claims of Redding or Western in said lawsuit nor
21 shall this Contract Amendment be used in any manner to interpret
i
22 the contractual right of Redding or Western which are in dispute i
23 in said lawsuit.
24
25
12 -
40mendment No. 3 to
Contract No. DE-MS65-83WP59008
1 Energy Entitlement for the calendar year, then Redding shall pay
2 Western an amount computed by the following formula:
3 Additional Billing Charge = ABC = (UOC) (ASWE-AEE) if greater
4 than zero:
5 Where:
6 AEE = Annual Energy Entitlement
7 ASWE = Annual Scheduled Western Energy
8 UOC = The weighted average of Western' s unauthorized
9 overrun charge for the applicable year pursuant to
10 Western' s CVF-6 or successor rate schedule
11
12 Provided, that the ABC shall be reduced by the sum of all charges
13 associated with an unauthorized overrun under Section 7 . 2 above.
14
15 7 . 5 . Redding may schedule less than seventy-five percent
16 ( 75% ) of the Annual Energy Entitlement, provided that the annual
17 billing charges due Western in a calendar year for energy
18 supplied by Western are not less than the amount computed by the
19 following formula:
20
21 Minimum Annual Billing Charge = MABC =
22 Sum of [ ( 0 . 75 ) (EEn) ( Rn) for n = 1 through 12 months )
23 Where:
24 EEn = Energy Entitlement for month n
25 Rn = Applicable CVP Rate for month n
26 n = Months 1 through 12 in a calendar year.
27
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f
amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 10 . FORECASTS AND REPORTS
2 Redding shall provide to Western the forecasts and reports
i
3 specified in Exhibit H. Exhibit H shall be attached hereto and
4 made a part hereof . The Parties recognize that the forecast and
5 report information needed by Western and specified in Exhibit H
6 may change from time to time. In such event, appropriate
7 modifications shall be made to Exhibit H.
8
i
9 11 . RESERVE REQUIREMENTS
10 Reddingshall maintain or
purchase sufficient operating reserves
11 (spinning and operating reserve which can be made available
12 within ten minutes ) to cover its resources and for service to its
13 loads not served by Western under the Primary Contract or by
14 other firm power sources backed by reserves in accordance with
15 the standards set forth by the Western Systems Coordinating
i
16 Council' s Minimum Operating Reliability Criteria approved August
17 11 , 1987, or its successor.
18
19 12 . SCHEDULING SERVICE PROVIDED BY WESTERN
20 Upon three months' written notice to Western by Redding and in
r
21 accordance with Section 4 . 1 of this Contract Amendment, Western
22 will provide certain scheduling services as specified herein.
23 Redding will submit its schedules of Power over the Interties and
24 other paths as may be designated by Redding to Western for
25 implementation. Western will communicate and coordinate such
26 schedules with other utilities and control area operators as
i
27 necessary to implement such schedules . Redding will direct its
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® Andment No. 3 to
Contract No. DE-MS65-83WP59008
1 8 . REDDING/WESTERN SCHEDULING PROCEDURES
2 The scheduling procedures are hereby agreed to by the Parties and
3 specified in Exhibit F which is attached hereto and made a part
4 hereof. The Parties recognize that the scheduling procedures in
5 Exhibit F may require modification from time-to-time to reflect
6 updated operating procedures which may become applicable to the
7 Parties. In such event, the Parties , working through the
8 Operating Committee, shall make appropriate modifications to
9 Exhibit F.
10
11 9 . DEVIATION ACCOUNTING BETWEEN METERED AND SCHEDULED ENERGY
12 In the course of daily scheduling, actual Redding System Load may
13 vary from the scheduled energy . Such deviations, ( i .e. , hourly
14 differences between Scheduled Energy and actual System Load, -
15
oad, -15 either positive or negative) under Prudent Utility Practices
16 should be held to a minimum by Redding forecasting its daily
17 loads and scheduling energy resources to meet the anticipated
18 System Load. The procedures for deviation accounting between
19 metered and scheduled energy, and compensation to Western for
20 such deviations, is specified in Exhibits G and J which are
21 attached hereto and made a part hereof . The Parties recognize
22 that the deviation accounting procedures in Exhibit G may require
23 modification from time-to-time to reflect updated operating
24 procedures which may become applicable to the Parties . In such
25 event, the Parties, working through the Operating Committee,
26 shall make appropriate modifications to Exhibit G.
27
13 -
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:zmendment No. 3 to
Contract No. DE-MS65-83WP59008
1 in good faith to place into effect a successor Contract Amendment
2 to provide for scheduling and coordination between the Parties as
3 may be necessary and desirable. In the event Redding forms its
4 own control area separate from Western and PG&E, Redding will
5 provide its own regulation.
6
7 14 . SPINNING RESERVE
8 Western shall provide and Redding shall purchase spinning
9 reserves to be scheduled by Redding, provided that, western shall
I
10 not be obligated to provide spinning reserve to Redding in the j
11 event doing so would require Western to curtail CVP project loads
12 or long-term firm sales . Western' s obligation to provide spinning
13 reserves shall not exceed ten ( 10 ) MW. However, at the request
14 of Redding dispatchers and at Western' s discretion Wes li
tern may
15 provide, on an "as available" basis, additional spinning reserve
16 if needed by Redding for Redding' s System Load served by other
17 than Western Power and Other Power which is firm and backed by
18 spinning reserve.
19
20 15 . RATES AND BILLING j
21 15 . 1 . Billing determinants for Western Power and billing
22 procedures will be as specified in Exhibit B attached hereto,
i
23 which supersedes the existing Exhibit B under the Primary
24 Contract .
I
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25
26 15 . 2 . As compensation for the spinning reserve provided by
27 Western hereunder, Redding shall pay for the amounts of spinning
- 16 -
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 schedules of Power to Western sufficiently in advance so that
2 Western may comply with all applicable scheduling procedures . In
3 the event of curtailments or emergencies, Western shall notify
4 Redding as soon as practicable so that Redding may adjust its
5 schedules and generation in a timely manner to minimize penalty,
6 exacerbation of the emergency or curtailment, or creation of
7 another exigent situation.
8
9 13 . REGULATION
10 13 . 1 . Western shall provide the regulation of Power
11 necessary for instantaneous matching of Redding' s actual loads
12 and resources, including the regulation required to respond
13 during the first ten ( 10 ) minutes of an Emergency. In the event
14 Western incurs costs to provide such regulation for Redding which
15 are not covered by the Regulation Service charges provided under
16 Exhibit G or its successor, then Redding shall pay Western for
17 its appropriate share of the costs of such regulation, in
18 accordance with Section 15 . 3 of this Contract Amendment.
19
20 13 . 2 . In the event the Parties operate in a new control
21 area separate from PG&E, then Western will offer to provide
22 regulation services to Redding on the same terms and conditions
23 which it provides such services to other similarly situated
24 utilities in the control area. If Redding determines that it
25 will form its own control area separate from Western and PG&E,
26 Redding shall give Western one year' s advance written notice to
27 terminate this Contract Amendment. The Parties shall negotiate
15 -
P
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 16 . NEGOTIATIONS WITH THIRD PARTIES
2 Should either Redding or Western enter into discussions with any
3 third party concerning arrangements which would impact the
i
4 scheduling procedures under this Contract Amendment, then that
5 Party shall inform the other Party of such discussions . Each
6 Party shall advise the other Party at least six months in advance
7 of any significant contemplated modifications that would affect
8 the scheduling procedures under this Contract Amendment.
9
10 17 . OPERATING 'COMMITTEE
11 An Operating Committee shall be established by the Parties to
12 implement the terms of this Contract Amendment and coordinate and
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13 promulgate procedures and practices related to the Parties,
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14 operations and scheduling of Power in accordance with this
15 Contract Amendment. The Operating Committee shall be composed of
16 representatives of Redding and Western and shall meet at least I'
17 once per year at mutually agreed-upon times and places .
18 Decisions and recommendations of the Operating Committee shall be
19 made by mutual consent of the Parties . Specifically, the
20 Operating Committee shall implement and review activities,
21 practices, procedures, and policies relating to, and make every
22 effort to resolve differences relating to issues, including, but
23 not limited to, the following: setting operating and scheduling
h
24 procedures, modifying exhibits to this Contract Amendment,
25 establishing alternate points of delivery and receipt,
26 coordinating communication links and equipment, reviewing and
27 establishing data exchanges and reporting requirements, and
G
- 18 -
kendment No. 3 to
Contract No. DE-MS65-83WP59008
1 reserve based upon the rate then in effect for Western' s sales of
2 spinning reserve as specified in Exhibit J, or under any
3 applicable rate schedule promulgated by Western in the future,
4 pursuant to the GPCPs . The applicable rate schedule, as amended
5 or supplemented from time-to-time, shall be attached to this
6 Contract Amendment and shall be made a part hereof; and Exhibit J
7 shall be modified as appropriate.
8
9 15 . 3 . As compensation to Western for the Regulation Service,
10 Redding shall pay the Regulation Service charge based upon the
11 rate then in effect for such services as specified in Exhibit J,
12 or under any applicable rate schedule promulgated by Western in
13 the future, pursuant to the GPCPs . Such rates shall be applied
14 as provided in Exhibit G. The applicable rate schedule, as
15 amended or supplemented from time-to-time, shall be attached to
16 this Contract Amendment and shall be made a part hereof; and
17 Exhibit J shall be modified as appropriate.
18
19 15 . 4 . As compensation to Western for the services associated
20 with deviations, Redding shall pay the deviation charge based
21 upon the rate then in effect for such services as specified in
22 Exhibit J, or under any applicable rate schedule promulgated by
23 Western in the future, pursuant to the GPCPs . Such rates shall
24 be applied as provided in Exhibit G. The applicable rate
25 schedule, as amended or supplemented from time-to-time, shall be
26 attached to this Contract Amendment and shall be made a part
27 hereof; and Exhibit J shall be modified as appropriate.
- 17 -
n
I
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 either Party is thereafter free to file a complaint with the
2 courts regarding the remaining issues in dispute. Such a
3 complaint shall seek a resolution consistent with the Primary
4 Contract and this Contract Amendment . In such a proceeding, the
5 Parties agree that the NERC opinion or other opinion rendered in j
i
6 accordance with the provisions of this Section 18 shall be
7 evidence of the reasonable solution of the issues that were
8 submitted to the NERC for resolution.
9
10 19 . GENERAL POWER CONTRACT PROVISIONS
i
11 Article 21 of the Primary Contract is hereby deleted as of the
12 effective date of this Contract Amendment . The General Power
13 Contract Provisions (GPCPs ) , dated January 3 , 1989, are hereby
14 made a part of the Primary Contract for the term of the Primary
15 Contract with the following exceptions : Sections 5 , 7, 8, 9, 10,
16 and 18 through 27 of the GPCPs shall not be made applicable to
17 Redding under the Primary Contract.
18
19 20 . EXHIBITS MADE PART OF THE PRIMARY CONTRACT
20 A modified Exhibit B to the Primary Contract is attached hereto.
21 In addition to the Exhibits A, B ( as modified hereunder) , and C,
22 specified in the Primary Contract and inasmuch as the Calculation
23 of Monthly Energy Entitlement, Percentage Amounts To Be Applied
24 For Scheduling Monthly Energy Entitlements, Scheduling
I
25 Procedures, Deviation Accounting Between Metered and Scheduled
26 Energy, Forecasts and Reports, NERC Memorandum, and Rates for
i
27 Electric Service exhibits may vary during the term of the Primary
20 -
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 reviewing reserve requirement practices . In the event the
2 Operating Committee is at an impasse regarding any matter, the
3 issue shall be submitted by the Operating Committee for
4 resolution to the Sacramento Area Manager for Western and the
5 Electric Utility Director for Redding, who shall meet as soon as
6 practicable to resolve the issue.
7
8 18 . DISPUTE RESOLUTION
9 In the event a dispute arises under this Contract Amendment and
10 no mutually agreeable solution can be reached between Redding and
11 Western through the process described in Section 17 above, then
12 Redding or Western may submit that dispute to the North American
13 Electric Reliability Council (NERC) for an advisory opinion as to
14 the Prudent Utility Practice solution to the dispute or disputes.
15 Redding and Western shall follow the procedures set forth in
16 Exhibit I to the Primary Contract which is a NERC Memorandum
17 dated July 10 , 1990 and entitled Voluntary Procedures for
18 Resolving Disputes . The Parties shall split the costs of the
19 NERC review on an equal basis. If NERC either is unable or
20 unwilling to assist in the resolution of the issues submitted to
21 it by the Parties, then Redding and Western agree to
22 expeditiously find another third party to review the disputed
23 issues and render an advisory opinion to the Parties . In either
24 case, Redding and Western shall then negotiate the resolution of
25 the dispute or disputes based on the advisory opinion, provided
26 that if Redding and Western are unable to negotiate a
27 satisfactory resolution after receipt of the advisory opinion,
19 -
f
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 IN WITNESS WHEREOF, the Parties have caused this Contract
6
2 Amendment to be executed the day and year first above written.
3
4 WESTERN AREA POWER ADMINISTRATION
5 By: �.
6 Title:
I
7 Address:
8
9
10
11 (Seal)
f
12
13 CITY OF R
i
0
14 By:
15 Title: Mayor FOAM APPROVED
16 Address: 760 Parkview Avenue
17 Redding , CA 96001 CITY LEGAL DEPT.
18
19 Attest
20 By: i
21 Title:
22
I
I
i
22 -
I'
tendment No. 3 to
Contract No. DE-MS65-83WP59008
1 Contract and this Contract Amendment, they will be set forth in
2 Exhibits D, E, F, G, H, I and J . The initial Exhibits D, E, F,
3 G, H, I , and J are attached hereto and shall be in force and
4 effect until superseded by a subsequently executed exhibit or the
5 termination of this Contract Amendment or the Primary Contract.
6
7 21 . PRIMARY CONTRACT TO REMAIN IN EFFECT
8 Except as expressly modified by this Contract Amendment, said
9 Primary Contract shall remain in full force and effect; and this
10 Contract Amendment shall be subject to all provisions of the
11 JPrimary Contract .
21 -
0
EXHIBIT B-Revision 1
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
I
2 . The system definitions and billing determinations set forth
3 in this Exhibit B are based upon the understanding of the Parties
4 that Redding' s electric service arrangements are such that its
system requirements are being supplied from the following
6 sources :
7
3 a. Western Power.
9 b. Power Service from other suppliers .
10 C . Power service from Redding' s own sources .
11
12 Article I
13 1 . Billing Determinations - Redding Scheduling Service
14
15 a. The maximum demand for billing purposes shall be the maximum
16 scheduled hourly delivery of Western Power to Redding during
17 the billing period pursuant to the scheduling agreement i
18 between Redding and the Contracting Officer, not to exceed j.
19 the contract rate of delivery as set forth in Exhibit A of
20 the Primary Contract.
21
22 b. The total energy for billing purposes shall be the absolute
23 hourly sum of the amounts of Scheduled Western Energy
2.1 scheduled to Redding during the billing period.
25
Page 2 of 5
EXHIBIT B-Revision 1
Amendment No. 3 to
Contract No. OE-MS65-83WP59008
1 OPERATING AGREEMENT INCLUDING QUANTITATIVE DETERMINATIONS
2
3 1 . This Exhibit B, made this day of 1993 , to
4 be effective under and as part of the Primary. Contract shall be
5 effective on the first day of the billing period following
6 execution of Contract Amendment No . 3 to the Primary Contract and
7 shall remain in effect until superseded by another Exhibit B to
8 the Primary Contract. This Exhibit B terminates and replaces the
9 original Exhibit B to the Primary Contract .
10
11 a . Article I of this Exhibit B shall be effective during any
12 period in which Redding is scheduling Power pursuant to the
13 Contract Amendment .
14
15 b . Article TI of this Exhibit B will be effective during any
16 time prior to Redding becoming a scheduling customer
17 pursuant to Article I of this Exhibit B.
18
19 c . It is recognized that a Party may desire to change its
20 electric service arran9ements from time to time and that
21 appropriate modification may be required in this Exhibit B.
22 Accordingly, the Parties will consider a revision to the
23 Exhibit if and when a Party desires to change its
24 arrangements; and such revision shall be implemented by
25 mutual agreement :
Page 1 of 5
f
i
EXHIBIT B-Revision 1
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1
b. Redding' s System Energy Requirements for any billing period
3 shall be the sum total of energy delivered during the
billing period at the point( s ) of delivery, as measured and
adjusted if necessary in accordance with Exhibit C, and at
i
6 the point( s ) of delivery at other than those where western
7 makes deliveries .
8
3 . Billing Determinants
10 a. The billing demand and energy billed for power service in
11 any billing period in which Redding' s System Demand is equal
12 to or less than the contract rate of delivery as set forth
13 in Exhibit A, Redding shall pay for all power and energy
14 delivered hereunder to its system during such period at the
15 rate provided for in Article 15 of the Primary Contract.
16
17 b. 1 . The billing demand for firm power service in any
18 billing period in which Redding' s System Demand is larger
19 than the contract rate of delivery as set forth in Exhibit
20 A, Redding shall pay for electric service at the rate
21 provided for in Article 15 of the Primary Contract using the
22
effective contract rate of delivery set forth in Exhibit A,
23 as the billing demand.
24
i
Page 4 of 5
EXHIBIT B-Revision 1
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 4 . Applicable Rates and Billing Period - Redding Scheduling
Service
3 a. Redding shall pay for capacity and energy at the rates
4 provided for in Article 15 of the Primary Contract.
6 b. The billing period shall be from 0000 hour on the first day
7 of the month to 2400 hours on the last day of the month. The
3 schedules of hourly energy to Redding by Western shall be
0 based upon hourly schedules determined as provided in this
10 Contract Amendment .
it
12 Article II
13 1 . Metered Service
14 Redding' s capacity and energy for billing purposes shall be
15 calculated pursuant to the following:
16
17 2 . System Demand and Enerav
18 a. Redding' s System Demand for any billing period shall be the
19 sum, for the 30-minute interval in which the sum is the
20 largest, of the 30-minute integrated demands established
21 during the billing period at the point(s) of delivery as
='- measured and adjusted if necessary in accordance with
23 Exhibit C, and of the 30-minute integrated demands
24 established during the billing period at any point(s ) of
25 delivery at other than those where Western makes deliveries.
Page 3 of 5
n
EXHIBIT D
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 CALCULATION OF MONTHLY ENERGY ENTITLEMENT
2
3 1 . This Exhibit D, made this day of 1993
4 to be effective under and as part of the Primary Contract shall
5 be effective on the date hereof and shall remain in effect until
6 superseded by another Exhibit D to the Primary Contract.
7
8 2 . The following tables show Redding' s monthly energy
9 entitlement under this Contract Amendment and the derivation
10 thereof.
i
i
I
I
Page 1 of 4
I
EXHIBIT B-Revision 1
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 2 . The energy billed for firm power service in any billing
2 period in which Redding' s System Demand is larger than the
`3 contract rate of delivery, as set forth in Exhibit A, shall
4 be determined by the following formula:
5 Energy billed = (A/B ) (C)
6 Where:
7 A= The maximum contract rate of delivery for firm power
8 service as established by Exhibit A of the Primary
9 Contract .
10 B= Redding' s System Demand as determined pursuant to Section
11 2 .a. above.
12 C= Redding' s System Energy Requirements as determined
13 pursuant to Section 2 .b. above .
14 WESTERN AREA POWER ADMINISTRATION
15 By:
16 Title:
17 Address :
18
19
20 AGREED AS TO FORM: CITY OF REDDING
21 By:
22 City Attorney Title:
23 ATTEST: Address :
24
25 1 City Clerk
Page 5 of 5
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EXHIBIT E
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 PERCENTAGE AMOUNTS TO BE APPLIED FOR
SCHEDULING MONTHLY ENERGY ENTITLEMENTS
I
4 1 . This Exhibit E, made this day of 1993,
to be effective under and as part of the Primary Contract shall
I
6 be effective on the date hereof and shall remain in effect until
7 superseded by another Exhibit E to the Primary Contract.
3
9 2 . The following monthly percentages shall apply to the monthly
10 Energy Entitlement and shall set the maximum amount of energy
11 which Redding may schedule each month:
12
13 January 100%
14 February 100% `
15 March 100%
16 April 110%
17 May 120%
18 June 120%
19 July 120%
20 August 115%
21 September 100%
22 October 100%
23 November 100%
24 December 100%
25
26 3 . The maximum Annual Energy Entitlement cannot exceed 100
27 percent.
a
Page 1 of 1
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EXHIBIT F
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 4 . Scheduling Procedures
4 . 1 . Communications . All schedules shall be transmitted by a
3 communications link established between Western and Redding or as
4 otherwise agreed between the Parties . The communications link,
5 as approved by the Operating Committee, shall be provided by
6 Redding.
7
8 4 . 2 . Pre-schedules . Redding shall transmit to Western by
9 1300 hours ( 1 p.m. ) of the day prior to the date of the schedule,
10 a pre-schedule of the transactions listed below. On Thursdays,
11 Redding shall provide Western with pre-schedules for the I
I
12 following Friday and Saturday . On Fridays, Redding shall provide
13 Western with pre-schedules for the following Sunday and Monday.
14 On Fridays, Redding may, with the concurrence of the Western
P
15 scheduler, submit a revised Saturday pre-schedule. Redding shall
16 provide Western the pre-schedules for any holiday and the next
17 succeeding workday on the workday preceding such holiday. The
18 pre-schedules shall include hourly values for each hour period of
19 each day. Except for third-party schedules which shall be to the
20 nearest tenth of a MW at the Scheduling Point( s ) , the pre-
21 schedule amounts are to be in whole MWs or as mutually agreed by
22 the Parties' schedulers . The following transactions shall be
23 included:
24 I
25 4 . 2 . 1 . Redding' s forecasted hourly System Load.
26
27 4 . 2 . 2 . Western Power.
Page 2 of 5
EXHIBIT F
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 SCHEDULING PROCEDURES
2
3 1 . This Exhibit F, made this day of 1993
4 to be effective under and as part of the Primary Contract shall
5 be effective on the date hereof and shall remain in effect until
6 superseded by another Exhibit F to the Primary Contract.
7
3 2 . It is recognized that the Parties may desire to change these
scheduling procedures from time to time and that appropriate
10 modification may be required in this Exhibit F . Accordingly, the
ll Parties will consider a revision to this Exhibit F at the request of
12 either Party, and, if required, such revision shall be implemented by
13 mutual agreement of the Operating Committee.
14
15 3 . Scheduling Point ( s ) In accordance with Contract No.
16 DE-MS65-86WP59059 , Agreement for the Second Direct
17 Interconnection of the City of Redding Electric System, Section
13 22(d) , the second direct interconnection (Airport Substation) and
19 the Keswick Substation shall be treated as a common (combined)
20 point of delivery or receipt for purposes of power billing and
-1 power scheduling between Western and Redding. Additional
22 Scheduling Points may be added in the future by agreement of the
23 Operating Committee .
Page 1 of 5
r
•
EXHIBIT F
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
I schedule shall become effective two hours after submission and
remain effective for only the remaining hours of the same active
3 day . After any modified schedule of Western Power has been
4 submitted to Western, Redding shall make no changes to the active
6
day' s schedule of Western Power, except for uncontrollable forces
6 or as mutually agreed by the Parties' dispatchers . During the
7 active day, any additional schedule changes at the point of
8 delivery will be implemented on a real-time basis as follows :
9
10 4 . 3 . 1 . For third-party transactions, Redding may adjust
11 its schedules but must do so ( 1 ) no later than ten I
12 minutes prior to each upcoming hour or ( 2 ) in
13 accordance with Section 12 of this Contract
14 Amendment, whichever is more restrictive.
15
16 4 . 3 . 2 . Redding may not adjust any third-party or Western
17 Power schedules during the active hourly period,
l8 except as provided in Paragraph 4 . 4 of this
19 Exhibit F.
20
21 4 . 3 . 3 . Under conditions where Redding' s forecasted daily
22 peak System Load is greater than its CRD, Redding
23 shall endeavor to use prudent utility practice in
24 the implementation of its energy schedule such
25 that Western is not required to provide the entire
26 incremental energy necessary to follow Redding' s
27 load.
28
29 4 . 3 . 4 . Redding' s hourly schedule change of Western Power
30 shall be limited to 6 MW, unless otherwise agreed
31 by the Parties dispatchers or unless
32 uncontrollable forces arise. This limitation shall
33 not limit further later schedule changes from the
34 revised schedule, so long as this limitation is
35 applied to the revised schedule.
36
37 4 . 3 . 5 . When Redding' s peak System Load for the day is
38 forecasted to be below its CRD, Western shall
39 accommodate Redding' s hourly schedule changes as
40 needed.
41
42 4 . 3 . 6 . Daily schedules shall be confirmed by both
43 Parties' dispatchers at the end of the active day
i
Page 4 of 5
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EXHIBIT F
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1
4 . 2 . 3 . Redding' s forecasted generation project schedules
(generation internal to Redding' s .system shall be
4 scheduled as a combined amount) .
5
6 4 . 2 . 4 . Firm Power purchases .
4 . 2 . 5 . Firm Power sales .
9
10 4 . 2 . 6 . Nonfirm energy purchases .
11
12 4 . 2 . 7 . Nonfirm energy sales .
13
14 4 . 2 . 8 . Spinning reserve purchases .
15
16 4 . 2 . 9 . Spinning reserve sales .
17
18 4 . 2 . 10 . Other reserve purchases .
19
10 4 . 2 . 11 . Other reserve sales .
21
22 4 . 2 . 12 . Other Power transactions .
23
24 4 . 2 . 13 . Other Energy transactions .
25
26 Purchases and Sales shall be identified as to type of Power
27 (maintenance, partial requirements, short-term firm) , point of
28 receipt and/or delivery, associated losses, etc. Except for
29 Redding' s internal generation, each transaction within each
30 category above shall be separately identified. At 2400 hours
31 (midnight ) , the submitted pre-schedule will become schedule of
32 the active day .
33)
34 4 . 3 . Schedule Changes for Western Power. If Redding' s resource
35 and/or load circumstances necessitate a modification to the
36 schedule during the active day, Redding shall, prior to 0900
37 hours ( 9 a.m. ) , be allowed to resubmit its schedule of Western
38 Power for the remainder of the active day. Such resubmitted
Page 3 of 5
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EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
DEVIATION ACCOUNTING BETWEEN METERED AND SCHEDULED ENERGY
1 . This Exhibit G, made this day of 1993 ,
4 to be effective under and as part of the Primary Contract, shall
become effective on the date hereof and shall remain in effect
6 until superseded by another Exhibit G to the Primary Contract.
7
8 2 . Chanqes in Deviation Accounting . It is recognized that the
9 Parties may desire to change these deviation accounting
f
10 procedures from time to time and that appropriate modification
11 may be required in this Exhibit G. Accordingly, the Parties will
12 consider a revision to this Exhibit G at the request of either
13 Party, and, if required, such revision shall be implemented by
14 mutual agreement in writing by the Operating Committee.
15
16 3 . Deviation Allowance Band The deviation amount in any given
17 hourly period shall be the difference between the energy metered
18 to Redding and the energy scheduled to Redding at the scheduling
19 point. The Deviation Allowance Band sets forth MW amounts within
20 which hourly deviations at the scheduling point are considered
I
31 acceptable. Redding shall collect meter information at the end
?? of each hourly scheduling period at the scheduling point (s )
,3 listed in Section 3 of Exhibit F . The Deviation Allowance Band
'4 is established as follows :
2)5
Page 1 of 7
EXHIBIT F
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
I at which time the Parties ' dispatchers will
attempt to resolve any scheduling conflicts .
3
4 - 4 . 3 . 7 . Except for the conditions specified in Paragraphs
5 4 . 3 . 6 . and 4 . 4 . of this Exhibit F, no after-the-
6 fact schedule change by either Party shall be
7 allowed after the schedules have been confirmed.
s
9 4 . 4 . Curtailments . When notified or when Redding has knowledge
10 of a curtailment or forced outage affecting Redding' s schedule,
11 Redding shall take appropriate actions to respond, such as
12 increasing or decreasing generation and/or adjusting schedules
13 with Western and/or third parties . Within ten minutes of the
14 later of notification by Western or knowledge by Redding, Redding
15 shall submit to Western the revised transactions, if any, that
16 Redding will schedule for the current and subsequent affected
17 hours . For energy accounting purposes, the amount of energy
18 delivered prior to the curtailment or forced outage shall be
19 integrated over the hour in which the curtailment or forced
-0 outage occurred.
Page 5 of 5
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EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 5 . Deviations Outside the Deviation Allowance Band.
5 . 1 . For between 1 through 6 ( inclusive ) deviation events per
3 calendar year which are outside the hourly Deviation Allowance
4 Band as set forth in Paragraph 3 of this Exhibit G, Western shall
allow Redding to correct such deviations as provided in Paragraph
6 4 of this Exhibit G, except that under conditions whereby
7 Redding' s schedule of Western Power plus deviation is greater
8 than 116 MW, Section 6 . 1 of this Exhibit G shall apply .
9 i
i
10 5 . 2 . For more than 6 deviation eventser calendar
P year which are �
11 outside the hourly Deviation Allowance Band as set forth in
12 Paragraph 3 of this Exhibit G, the following shall apply:
13
14 5 . 2 . 1 . Negative Deviations If the deviation is negative
15 ( resulting in net energy to Western) , then the energy deviation
16 outside the Deviation Allowance Band is lost to Western' s system
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17 and Western shall have no obligation to pay for or return such
18 energy. Redding shall not be obligated to Western for any
19 further penalties for this condition.
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20
21 5 . 2 . 2 . Positive Deviations If the deviation is positive
22 ( resulting in net energy from Western) , then Paragraph 6 of this
23 Exhibit G shall apply .
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EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 Deviation Allowance Band
3 For Schedules Deviation Allowance Band (MW)
4 of Western Power Year 1 Year 2 Year 3 Year 4+
5 116 MW +0, -6 +0, -5 +0, -4 +0, -3
6 115 MW +1, -6 +1 , -5 +1,, -4 +1, -3
7 114 MW +2, -o +2 , -5 +2, -4 +2, -3
3 113 MW and below (Yr. 4+) +3, +3, -5 +3, -4 ± 3
9 112 MW and below (Yr. 3) -4 , -6 +4 , -5 + 4
10 '_11 MW and below (Yr. 2) +5, -6 ± 5
11 110 MW and below (Yr. 1 ) ± 6
12
13 As shown in the above table, a ± 6 MW Deviation Allowance Band
14 will apply for the first year, decreasing over the second and
15 third years to a ± 3 MW band for year four and thereafter through
16 the remaining term of this Contract Amendment.
17
18 4 . Deviations Within The Deviation Allowance Band.
19 For hourly deviations within the Deviation Allowance Band,
20 Redding shall either adjust its schedule to correct any
21 accumulated energy deviation during the next like-load period,
22 or, at the discretion of the Western dispatcher, accumulate the
23 hour' s deviation to be returned to Western at a time and in an
24 amount as mutually agreed by the dispatchers At the end of a
25 month, any residual energy deviation that has not been offset
26 shall, at the discretion of Western, either be carried forward
27 and adjustments made as soon as possible in the following month
28 or purchased by Redding from Western in the next month as part of
29 Redding' s Energy Entitlement .
30
Page 2 of 7
EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
I 6 . 3 . Except for unauthorized overruns as provided in Paragraph
6 . 1 of this Exhibit G, Redding shall pay a deviation charge for
3 the amount in each hour that the deviation exceeded the Deviation
4 Allowances , as illustrated in Table G6 . 1 and in accordance with
the rates provided for under Exhibit J to this Contract
6 Amendment.
7
8 6 . 4 . Table G6 . 1 presents examples of deviation cases that could
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9 arise under this Exhibit G. Table G6 . 1 shall be used as an
10 example for determining remedies for future deviations :
11
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EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 6 . Positive Deviations Outside the Deviation Allowance Band
6 . 1 . Under conditions whereby Redding' s schedule of Western
3 Power plus deviation is greater than 116 . 0 MW, at any time, such
4 condition shall be considered an unauthorized overrun of the
contractual obligation for capacity and energy, and Redding shall
6 pay Western for such unauthorized overrun on the amount of
7 capacity and energy for that scheduling period that exceeds 116. 0
8 MW, as illustrated in Table G6 . 1 and addressed in Section 2 . 4 of
9 Exhibit J. Redding shall not be obligated to return any capacity
10 or energy which is so deemed to be an unauthorized overrun, or
11 adjust Redding' s Energy Entitlement, or pay any other charges or
12 rates for such Power.
13
14 6 . 2. Except to the extent Paragraph 6 . 1 applies, Redding shall
15 either adjust its schedule to correct any accumulated excess
16 energy deviation during the next like-load period as illustrated
17 in Table G6 . 1 or, at the discretion of the Western dispatcher,
18 accumulate the hour' s deviation to be returned to Western at a
19 time and in an amount as mutually agreed by the dispatchers . At
20 the end of a month, any residual energy deviation that cannot be
21 offset shall, at the discretion of Western, either be carried
22 forward and adjustments made as soon as possible in the following
23 month or purchased by Redding as energy from Western.
24
Page 4 of 7
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EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 7 . Regulation Service
Redding shall purchase Regulation Service from Western. The
3 Regulation Service charge shall be as specified in Exhibit J.
4
S 8 . Deviation Monitoring Redding shall monitor and record its
6 daily like-hour deviations. The daily reports shall be provided
7 to Western upon request under the reporting provisions of Exhibit
8 H. For purposes of deviation monitoring and accounting,
9 deviation( s ) shall be measured to the nearest MW, except under
10 conditions whereby Redding' s schedule of Western Power plus
11 deviations exceed 116 . 0 MW, under which conditions deviation(s)
12 shall be measured to the nearest kW.
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EXHIBIT G
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 Table G6. 1 - EXAMPLES OF DEVIATION CASES
(All cases assume + or - 3 MW bandwidth)
3
4 Negative Deviation• Scheduled 110 MW Actual 106 MW
5
6 First 6 Events:
7 - schedule back 4 MWh to Redding ( 110-106)
8 - counts as one of 6 "bad marks"
9
10 After 6 Events :
11 - schedule back 3 MWh to Redding ( 109-106)
12 - lose 1 MWh to Western ( 110-109 )
13
14 Positive Deviation Below 116 MW• Scheduled 100 MW Actual 104 MW
15
16 First 6 Events :
17 - schedule back 4 MWh to Western ( 104-100 )
18 counts as one of 6 "bad marks"
19
20 7-10 Events :
21 - schedule back 4 MWh to Western ( 104-100 ) (energy)
22 - buy 1 MW capacity from Western ( 104-103 ) at the Deviation
23 Rate (Exhibit G, Section 6 . 3 ) and as specified in
24 Exhibit J.
25
26 After 10 Events:
27 - schedule back 4 MWh to Western ( 104-100 ) (energy)
28 - buy 1 MW capacity from Western ( 104-103 ) at the Deviation
29 Rate (Exhibit G, Section 6 . 3 ) and as specified in
30 Exhibit J.
31
32 Positive Deviation Around 116 MW: Scheduled 112 MW Actual 117 MW
33
34 First 6 Events:
35 - schedule back 4 MWh to Western ( 116-112)
36 - pay 1 MW unauthorized overrun charge ( 117-116) (capacity
37 and energy) (Exhibit G, Section 6 . 1 )
38 - counts as one of 6 "bad marks"
39
40 7-10 Events:
41 - schedule back 4 MWh to Western ( 116-112) ( energy)
42 - buy 1 MW capacity from Western ( 104-103 ) at the Deviation
43 Rate (Exhibit G, Section 6 . 3 ) and as specified in
44 Exhibit J.
45
46 After 10 Events :
47 - schedule back 4 MWh to Western ( 104-100 ) ( energy)
48 - buy 1 MW capacity from Western ( 104-103) at the Deviation
49 Rate ( Exhibit G, Section 6 . 3 ) and as specified in
50 Exhibit J.
Page 6 of 7
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EXHIBIT H
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 4 . Redding shall provide Western with the following energy
accounting information for each month within five days after the
3 last day of the month;
4
5 4 . 1 . Monthly reports of confirmed daily schedules of all
6 transactions .
7 4 . 2 . Monthly reports of all data necessary to calculate payments.
8 4 . 3 . Monthly reports of like-hour energy deviation adjustments. !
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9 4 . 4 . Report on residual energy deviations which Redding was
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10 unable to reschedule in like-load periods during that billing
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11 month.
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12 4 . 5 . Monthly reports of deferred energy return under the Services
13 Contract, if applicable.
14
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15 The above information shall be used in the determination of !
16 billing demand, spinning reserves, maintenance, emergency, and I
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17 other types of Power services which Redding may have purchased
18 from Western and others. Such information shall be subject
7 to
19 Imeter verification.
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EXHIBIT H
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 FORECASTS AND REPORTS
2
3 1 . This Exhibit H, made this day of 1993,
4 to be effective under and as part of the Primary Contract shall
5 become effective on the date hereof and shall remain in effect
6 until superseded by another Exhibit H to the Primary Contract.
7
8 2 . It is recognized that Parties may desire to change their
9 electric service arrangements from time-to-time and that
10 appropriate modification may be required in this Exhibit H.
11 Accordingly, the Parties will consider a revision to this
12 Exhibit H if and when either Party desires to change its
13 arrangements; and, if required, such revision shall be
14 implemented by mutual agreement.
15
16 3 . Redding shall provide to Western the following forecasts for
17 each month five days prior to the beginning of the month:
18
19 3 . 1 . Monthly sum of generation (MWh) of Redding resources.
20 3 . 2 . Maximum capability of Redding resources.
21 3 . 3 . Proposed capacity and energy transactions with third
22 parties.
23 3 . 4 . Overall operation strategy regarding the operation of each
24 Redding resource .
25 13 . 5 . Redding' s forecasted peak System Load.
26
Page 1 of 2
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EXHIBIT J
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 charge shall be $254 . 60/MW-day, multiplied by the maximum MW ( in
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2 increments divisible by 0 . 5 MW) by which the Deviation Allowance
3 was exceeded in a given hour; Provided that, this charge shall
4 apply only to positive deviations . These charges shall be summed
5 to determine total deviation charges for a billing period. The l
6 above charge is based upon the following formula:
7
8 Deviation Charge = ( (CVP Capacity Rate) * ( 1 , 000 ) 1 /30 . 4
9
10 2 . 3 For the 11th deviation and all subsequent deviations
11 outside the Deviation Allowance Band in each calendar year, the
12 deviation charge shall be $509 . 20/MW-day, multiplied by the
13 maximum MW ( in increments divisible by 0 . 5 MW) by which the
14 Deviation Allowance was exceeded in a given hour; Provided that,
15 this charge shall apply only to positive deviations . All such
16 charges shall be summed to determine total deviation charges for
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17 a billing period. The above charge is based upon the following
18 formula:
19
20 Deviation Charge = [ (CVP Capacity Rate) * ( 2. 0 ) . * ( 1 , 000) 1 /30. 4
21
22 2 . 4 Under conditions whereby Redding' s schedule of Western
23 Power plus deviation is greater than 116 . 0 MW, at any time,
24 Redding shall pay Western' s unauthorized overrun charge on the
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25 amount of capacity and energy for that scheduling period which
26 exceeds 116. 0 MW. Such unauthorized overrun charge shall be as
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Page 2 of 4
EXHIBIT J
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 RATES FOR ELECTRIC SERVICE
2
3 1 . This Exhibit J, made this day of
4 1993 , to be effective under and as part of the Primary Contract,
5 shall become effective on the date hereof and shall remain in
6 effect until superseded by another Exhibit J to the Primary
7 Contract.
8
9 The rates and charges set forth herein are effective from the
10 date of execution and shall remain in effect until superseded,
11 leither by revised rates and charges set forth in another Exhibit
12 J or applicable Rate Schedule.
13
14 2. Deviation Charge: Redding shall pay a deviation charge as
15 provided for in Exhibit G of this Contract Amendment and as
16 follows:
17
18 2. 1 For up to 6 deviations outside the Deviation Allowance
19 Band per calendar year, there shall be no deviation charge,
20 Provided that Redding under conditions whereby Redding' s schedule
21 of western Power plus deviation is greater than 116. 0 MW, at any
22 time, Redding shall pay in accordance with Section 2 . 4 of this
23 Exhibit J.
24
25 2.2 For the 7th through the 10th deviation outside the
26 Deviation Allowance Band in each calendar year, the deviation
Page 1 of 4
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EXHIBIT J
Amendment No. 3 to
Contract No. DE-MS65-83WP59008
1 5 . Annual Review of Rates : The rates and charges provided for
2 in this Exhibit J shall be reviewed annually and revised as
3 appropriate.
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