Loading...
HomeMy WebLinkAboutReso. 1989-019 - Approving amendment no. 1 dated jan 17, 1989 RESOLUTION NO. gcr-pci A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AMENDMENT NO. 1 DATED JANUARY 17 , 1989 , TO THE AGREEMENT FOR SALE OF ELECTRIC CAPACITY AND ENERGY BY PACIFIC GAS AND ELECTRIC COMPANY TO THE CITY OF REDDING DATED MAY 19 , 1980 . i 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 Amendment No. 1 dated January 17, 1989 , to the Agreement for Sale of Electric Capacity and Energy by Pacific Gas and Electric Company to the City of Redding dated May 19 , 1980 , a true copy of which is attached hereto and incorporated herein by reference. 2 . The Mayor of the City of Redding is hereby authorized and directed to sign said Amendment No. 1 on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to attest to the signature of the Mayor and to impress the • official seal of the City of Redding on the aforesaid Amendment No. 1 when appropriate. 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 17th day of January, 1989 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Buffum, Dahl , Fulton, & Johannessen NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Carter ABSTAIN: COUNCIL MEMBERS : None 1)//2 //i K. `.M�AURICE JOHANNESSEN, Mayor City of Redding ATTEST: FARM :=!'•ROVED: ETHEL A. NICHOLS , City Clerk RANIALL A. HAYS , Ci y Attorney dQ 4 AMENDMENT NO. 1 TO AGREEMENT FOR SALE OF ELECTRIC CAPACITY AND ENERGY BY PACIFIC GAS AND ELECTRIC COMPANY TO CITY OF REDDING ail , This Amendment No. 1 to the Agreement for Sale of Electric Capacity and Energy, dated May 19, 1980 and on file with the Federal Energy Regulatory Commission (FERC) as FERC Rate Schedule No. R-1 (Agreement) , is made and entered into on this 17th day of January , 1989 by Pacific Gas and Electric Company (PG&E) and the City of Redding (Redding) , hereinafter referred to collectively as the Parties. The Parties intend and agree that this Amendment No. 1 shall amend, and that specific provisions of this Amendment No. 1 shall supersede expressly identified provisions of, the Agreement. Except as expressly provided herein, however, this Amendment No. 1 shall not be deemed to modify or change any rights or obligations of either Party under the Agreement, as the Agreement otherwise has been or may be amended or modified by written and executed Agreement between the Parties. NOW, THEREFORE, the Parties hereby agree that: 1. Recital B of the Agreement shall be amended to read as follows: "B. The present Contract Rate of Delivery is 116, 000 kilowatts. " 2 . Recital D of the Agreement shall be amended to read as follows: "D. Direct power purchases by Redding from Department are presently delivered and metered at 115 kV at Keswick Switchyard j and will also be delivered and metered at 115 kV at the Airport Substation when 411 411 that substation is operational." 3 . Section I of the Agreement shall be amended to read as follows: ' I "PG&E shall sell and deliver to Redding and Redding shall purchase and receive from PG&E, all Power required by Redding in excess of the Contract Rate of Delivery from time to time in effect under the terms and conditions dl herein contained, except as provided in Section II; provided, that these obligations are conditioned on the ability of the Parties to make the metering and transmission arrangements with the Department which are referred to in Sections IV and V. " 4 . Section III of the Agreement shall be amended to read as follows: "All Power delivered hereunder by PG&E shall be supplied in accordance with the applicable rates, terms and conditions set forth in PG&E's Electric Tariff Original Volume No. 2 in effect from time to time and on file with FERC, and such rates, terms and conditionsare here incorporated by refer- ence. "All deliveries of Power to Redding hereunder shall be three phase, alternating current with a nominal frequency of 60 Hertz, subject to reasonable variations in frequency and delivered at 230 kv. Deliveries will be deemed received by Redding at the point where PG&E's electric conductors connect to Department's electric conductors at the interconnection point with PG&E's system near Tracy, California, which point is the con- tractual delivery point between Department and PG&E (Tracy Interconnection) provided in Contract No. 14-06-200-2948A between Department and PG&E. The total monthly quantities of power delivered to Redding by Department at the Keswick Switchyard and Airport Substation, as registered on Department's revenue metering equipment, shall first be reduced to account for monthly Power deliveries to Redding by Department, which amounts sold to Redding by Department shall not exceed the effective Contract Rate of Delivery and proportional energy, as -2- .V I. 1 . 1 • I,I � provided in Article 14 (c) (2) of Contract No. 14-06-200-2948A between Department and PG&E, and the remaining quantities shall be increased by 4 .5 percent for line and transformer losses to the Tracy Interconnection. Such adjusted monthly quantities shall be deemed to be the monthly power deliveries to Redding by PG&E and shall be used for billing purposes. " 5. Section IV of the Agreement shall be amended to read as follows: "PG&E shall make the necessary arrange- ments with Department for a pro rata utili- zation of Department's revenue metering equipment at the Keswick Switchyard and the Airport Substation delivery points for Red- ding and for furnishing to PG&E monthly meter reading data for power supplied to Redding by PG&E. " 6. Section V of the Agreement shall be amended to read as follows: "Redding shall maintain a power factor for its total load of not less than that required in its electric contract with the Department. Redding shall arrange with the Department for the necessary transmission I' ' service from the Tracy Interconnection to the Keswick Switchyard and the Airport Substation delivery points for the Department's direct service deliveries to Redding. A copy of the contract between Redding and Department for such transmission service shall be furnished i ' to PG&E by Redding. " 7 . Section VII of the Agreement shall be amended to read as follows: "PG&E shall not be obligated under this Agreement to provide supplemental power ser- vice to Redding, which, when added to the Department's deliveries to Redding, shall exceed the electric delivery capability from time to time available to Redding at the Keswick Switchyard, which is currently 160,000 kVA as provided in Article 10(a) of Amendment No. 6 to Contract No. 14-06-200-887A between Redding and the Department, super- '' seded by Contract No. DE-MS65-83WP59008 and -3- I I • supplements thereto. The Parties anticipate that the construction of the Airport Substation will increase the firm electric delivery capability available to Redding to a combined total of 275 MVA or 261 MW at 95 percent power factor, as provided in Article 25(a) Contract No. DE-MI65-86WP59059 dated December 23, 1986, between Redding and i. the Department. 'I ! "PG&E agrees voluntarily to increase its obligation to serve Redding to a maximum of 275 MVA or 261 MW at 95 percent power factor, less the Department's Contract Rate of Delivery, to coincide with the increased combined limits of firm electric delivery capability. This increase will become effective coincident with the operational date of the Airport Substation. Ii "If, at any time while this Agreement is in effect, Redding exceeds the maximum sup- plemental power service available to Redding in accordance with the terms of this Agree- ment, as amended from time to time, Redding shall be obligated to pay to PG&E, as an unauthorized power flow charge, compensation at the rate of 282 mills per kilowatt hour for each kilowatt hour of unauthorized power 1 flow. The unauthorized power flow charge will be effective as of the effective date of this Amendment No. 1 (see, Section 11, below) . PG&E, however, agrees not to enforce the unauthorized power flow charge until the earlier of: (1) the date the Airport Substation becomes operational ; or (2) two years from the date of execution of this Amendment No. 1 by the City of Redding. For the duration of this grace period, PG&E shall charge Redding the current R-1 rates (including all applicable adjustments under the Agreement, as amended) for any and all unauthorized power flow deliveries. "Additionally, PG&E shall not be required to contribute to the cost of any reinforce- ments or additions to the Department's facilities, either at the Keswick Switchyard, Airport Substation, or extending between the Tracy Interconnection and the Keswick Swit- chyard, Airport Substation, or elsewhere. " -4- i I 8. Neither this Amendment No. 1 nor the Agreement shall be further amended, changed, modified, abrogated, or superseded by a subsequent agreement unless such subsequent agreement shall be in the form of a written instrument signed by the Parties. 9. Failure by either Party hereto to enforce any right or obligation to any matter arising in connection with this Amend- ment No. 1 shall not be construed as a waiver as to that matter or any other matter. 10. This Amendment No. 1 is the result of negotiation and both Parties' respective counsel have reviewed this Amendment 11 No. 1. Accordingly, the normal rules of construction to the effect that any ambiguity shall be resolved against the drafting 1; Party shall not be employed in the interpretation of this Amendment No. 1. i ' 11. This Amendment No. 1 shall become effective on the date it is permitted to become effective by FERC; provided, that this ji Amendment No. 1 is expressly conditioned upon FERC's acceptance of all provisions hereof, without change or condition unacceptable to either Party, and shall not become effective i ! unless so accepted. If FERC enters into a hearing to determine whether this Amendment No. 1 is just and reasonable, this Amendment No. 1 shall not become effective until the date when an order, no longer subject to judicial review, is issued by FERC determining this Amendment No. 1 to be just and reasonable without changes or conditions unacceptable to either Party. 1, 12 . This Amendment No. 1 is intended by the Parties to become a part of the Agreement and, as such, shall be subject to the term and termination provisions of Section XI of the Agreement. Also, all terms and conditions of the Agreement, except those provisions expressly superseded by this Amendment No. 1, shall apply to this Amendment No. 1. I f I'. U -5- i • , • IN WITNESS WHEREOF, the Parties have caused this Amendment No. 1 to the Agreement to be executed the day and year first above written. � f Ij Agreed as to Form I l By Title City of Redding H By Attestation Title I, By Date Title Pacific Gas and Electric Company � I P By Title By Date Title ; I II� I, -6- II!