Loading...
HomeMy WebLinkAboutReso. 1988-266 - Approving contract no. 88-sao-40001 for transmission service between the united states of america, acting by and through the administrator f A RESOLUTION NO. 82..11..6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING CONTRACT NO. 88-SAO-40001 FOR TRANSMISSION SERVICES BETWEEN THE UNITED STATES OF AMERICA, ACTING BY AND THROUGH THE ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION, DEPARTMENT OF ENERGY, AND THE CITY OF REDDING, AND AUTHORIZING THE MAYOR TO SIGN THE SAME. WHEREAS, the United States of America, acting by and through the Administrator, Western Area Power Administration, Department of Energy, hereinafter called Western, operates an electric power system including transmission facilities as part of the Central Valley Project (CVP) ; and WHEREAS , the City of Redding, hereinafter called City, operates an electric power system including generation, transmission, and distribution facilities; and WHEREAS, Western and City executed a Letter Agreement dated May 1 , 1986 (Redding LOA-3) , pursuant to which City and Western agreed to negotiate and enter into the attached Contract for Transmission Services to implement certain of the concepts of said Letter Agreement; and WHEREAS , City is a preference customer of the CVP and receives direct service from Western' s transmission system; and WHEREAS, the Electric Utility Commission and the Electric Department believe that this new Transmission Contract is a vital step toward allowing Redding to continue development of its Resource Plan; that it provides for (1) Redding' s access to the California-Oregon Transmission Project, (2) future north-to-south transmission paths over Western' s system, and (3) provision for new points of delivery and/or receipt of power from Western' s system. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: II „ 41. 4 , 4 ,1 41) 1 . That all of the above recitals are true and correct. 2 . That the City Council hereby approves the Contract for Transmission Services numbered 88-SAO-40001 between the United States of America, acting by and through the Administrator, Western Area Power Administration, Department of Energy, and the City of Redding, a true copy of which is attached hereto and incorporated herein. 3 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Agreement 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 on said Amendment. 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 2nd day of August , 1988 , 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 K/ MAUR'ICE JOHANNESSEN, Mayor City of Redding ATTEST: FO%� F PROVED: e6etea,07,cz.4_,' &.,4,4r ETHEL A. NICHOLS, City Clerk RA DALL A. HAYS , City Attorney -2- 41, .•••- • . • * • 1 Contract No. 88-SAO-40001 2 3 4 5 6 7 8 9 UNITED STATES 10 DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION 11 CENTRAL VALLEY PROJECT, CALIFORNIA AND 12 THE CITY OF REDDING, CALIFORNIA 13 CONTRACT FOR TRANSMISSION SERVICE 14 15 16 17 18 19 20 21 22 23 24 -25 . , S . 4110 _40 1 Contract No. 88-SAO-40001 2 UNITED STATES DEPARTMENT OF ENERGY 3 WESTERN AREA POWER ADMINISTRATION 4 CENTRAL VALLEY PROJECT, CALIFORNIA AND THE CITY OF REDDING, CALIFORNIA 5 CONTRACT FOR TRANSMISSION SERVICE 6 Table of Contents 7 Article Page 8 1 Preamble 1 9 2-4 Explanatory Recitals 2 10 5 Term of Contract 2-3 11 6 Definition of Terms 3-6 12 7 Transmission Service Provided to Contractor by Western 6-15 13 8 Transmission Service Rates 15-16 14 9 Exhibits Made Part of Contract 16-17 15 10 Interpretation 17 16 11 _ Severability 17 17 12 Authorized Representatives of the Parties 18 18 13 General Power Contract Provisions 18 19 Exhibit A - Designation of Point(s) of Receipt and 20 Point(s) of Delivery, Transmission Losses, and Transmission Rate of Delivery 21 Schedule CV-FT1 22 Schedule CV-NFT1 23 Resolution 24 '25 1 • S . • 1 Contract No. 88-SAO-40001 2 3 UNITED STATES 4 DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION 5 CENTRAL VALLEY PROJECT, CALIFORNIA 6 AND 7 THE CITY OF REDDING, CALIFORNIA 8 AGREEMENT FOR TRANSMISSION SERVICE 9 10 - 1. PREAMBLE: This Contract is made this day of , 1988, 11 pursuant to the Acts of Congress approved June 17, 1902 (32 Stat. 388), 12 August 26, 1937 (50 Stat. 844, 850), August 4, 1939 (53 Stat. 1187), August 13 12, 1955 (69 Stat. 719), October 23, 1962 (76. Stat. 1173, 1191), August 4, 14 1977 (91 Stat. 565), and Acts amendatory or supplementary to the foregoing 15 Acts, between THE UNITED STATES OF AMERICA, acting by and through 16 the Administrator, Western Area Power Administration, Department of 17 Energy, hereinafter called Western, represented by the officer executing 18 - this Contract or a duly appointed successor, hereinafter called the Contract- 19 ing Officer; and the CITY OF REDDING, CALIFORNIA, a municipal corp- 20 oration organized under the laws of the State of California, hereinafter _ 21 called the Contractor, its successors or assigns; each sometimes hereinafter 22 individually called Party, and both sometimes hereinafter called the Parties. 23 24 -25 1 • 1 WITNESSETH: 2 3 2. WHEREAS, Western operates an electric power system including trans- , 4 mission facilities as part of the Central Valley Project (CVP), hereinafter 5 referred to as Western's transmission system, and the Contractor operates 6 an electric power system including generation, transmission, and distribution 7 facilities, hereinafter referred to as Contractor's system; and 8 9 3. WHEREAS, the Contractor and Western have executed a Letter Agreement 10 _ dated May 1, 1986, (Redding LOA-3) pursuant to which the Contractor and 11 Western agreed to negotiate and enter into this Contract to implement 12 certain of the concepts of the Letter Agreement; and 13 14 4. WHEREAS, the Contractor is a preference customer of the CVP and 15 receives direct service from Western's transmission system; and 16 17 NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the 18 Parties hereto agree as follows: 19 20 5. TERM OF CONTRACT 21 22 5.1 This Contract shall become effective thirty (30) days after receipt of 23 written notification to Western by the Contractor, to begin trans- 24 mission service pursuant to Section 7 herein, and at such time -25 Supplement No. 2 to the Contract No. DE-MS65-83WP59008 will 2 • S 1 terminate. This Contract shall remain in effect for forty (40) years 2 from the date of execution. 3 4 5.2 In the event this Contract terminates prior to the term of the COTP 5 Participation Agreement, the Parties shall, in good faith, negotiate a 6 transmission contract to carry out the provisions of Sections 7.2 and 7 7.3 hereof. All obligations incurred under this Contract during the 8 term hereof shall be preserved until satisfied. 9 10 6. DEFINITION OF TERMS 11 12 6.1 "Contract" means this written agreement including attached trans- 13 mission rate schedules and exhibit. 14 15 6.2 "California-Oregon Transmission Project" or "COTP" is a proposed 16 third 500-kV alternating current transmission line from southern 17 Oregon to Tesla, California. The designed transfer capability of the 18 line is approximately 1600 MW. - 19 20 6.3 "COTP Agreements" are the several contracts as may be amended or 21 superseded from time to time among electric utilities in California, 22 including Western, and the Contractor, through its participation in 23 the Transmission Agency of Northern California, which provide for 24 the construction and operation of the COTP. -25 3 • • 1 6.4 "Point(s) of Delivery" means the point(s), specified in Exhibit A, at 2 which Western can deliver power directly to the Contractor. 3 4 6.5 "Point(s) of Receipt" means the point(s), specified in Exhibit A, at 5 which Western can receive power from the Contractor. 6 7 6.6 "Prudent Utility Practice" means at a particular time any of the 8 practices, methods and acts which, in the exercise of reasonable 9 judgment in the light of the facts, including but not limited to the 10 practices, methods and acts engaged in or approved by a significant 11 portion of the electrical utility industry prior thereto; known at the 12 time the decision was made, would have been expected to accomplish 13 the desired result at the lowest reasonable cost consistent with 14 reliability, safety and expedition. In applying the standard of Prudent 15 - Utility Practice to any-matter under this Contract, equitable consid- 1 16 eration should be given to the circumstances, requirements and 17 obligations of each of the Parties. It is recognized that Prudent 18 Utility Practice is not intended- to be limited to the optimum 19 practice, method or act to the exclusion of all others, but rather is a 20 spectrum of possible practices, methods or acts which could have 21 been expected to accomplish the desired result at the lowest reason- 22 able cost consistent with reliability, safety and expedition. Prudent 23 Utility Practice includes due regard for manufacturers' warranties 24 and the requirements of governmental agencies having jurisdiction. -25 4 1 6.7 "Transmission Rate of Delivery" means that quantity of transmission 2 capacity (excluding transmission capacity associated with Whiskey- 3 town Power as provided under Contract No. DE-MP65-83WP59079) to 4 be made available, monthly, on a firm or nonfirm basis by Western to 5 the Contractor on Western's transmission system. Said Transmission • 6 Rate of Delivery shall be set forth in Exhibit A attached hereto and 7 that quantity may be modified in accordance with the provisions of 8 Section 7. 9 10 6.8 "Firm Transmission Service" means the service available to the 11 Contractor pursuant to Section 7.6 and during the period(s) and in the 12 amounts as specified in Exhibit A, subject to reduction and/or cur- 13 tailment as provided in Section 7.6.2. 14 15 6.9 "Nonfirm Transmission Service" means the service is available if the 16 transmission capacity exists pursuant to Section 7.7. 17 - 18 7. TRANSMISSION SERVICE PROVIDED TO CONTRACTOR BY WESTERN 19 - 20 Bidirectional Service between Northern and Central California. 21 22 7.1 Western will provide south-to-north and/or north-to-south 23 transmission service on Western's transmission system, as determined 24 conclusively by the Contracting Officer, in quantities not to exceed 25 the Transmission Rate of Delivery, on a firm or nonfirm basis, to the 5 • 1111 1 Contractor, between the Point(s) of Receipt and the Point(s) of 2 Delivery, at the voltage levels, for the time periods, and subject to 3 the loss adjustments as specified in Exhibit A of this Contract. 4 5 Bidirectional Service in Northern California 6 7 7.2 Upon the inservice date of the COTP, as specified in Exhibit A, 8 Western will designate the Olinda Substation 230-kV bus as a Point of 9 Receipt and Point of Delivery of power for the Contractor; and 10 11 7.2.1 Western will provide up to 90 MW of Firm Transmission 12 Service, to the Contractor, from the Olinda Substation to the 13 Keswick and/or the Airport Substations for the term of the 14 COTP Participation Agreement. 15 16 7.2.1.1 The transmission capacity in Section 7.2.1 is avail- 17 able for the Contractor's use, at the voltage levels 18 as Specified in Exhibit A of this Contract. 19 20 7.2.2 Western will provide up to 90 MW of Firm Transmission 21 Service, to the Contractor, from the the Keswick and/or the 22 Airport Substations to the Olinda Substation for five (5) 23 years, beginning on the inservice date of the COTP. 24 -25 6 • • 1 7.2.2.1 The transmission capacity in Section 7.2.2 is avail- 2 able for the Contractor's use, at the voltage levels 3 as specified in Exhibit A of this Contract. 4 5 7.2.2.2 In accordance with Section 7.4.4, after the five 6 year period, Western may reduce the amount of 7 Firm Transmission Service provided from the 8 Keswick and/or the Airport Substations to the 9 Olinda Substation, to the level Western determines 10 is available. 11 12 7.2.2.3 In the event that the Contractor desires more Firm 13 Transmission Service under Section 7.2.2 than is 14 determined available by Western, then Western will 15 permit the upgrade of or the construction of new 16 - Western facilities subject to applicable Federal and 17 state laws, as required- to continue the level of 18 Firm Transmission Service required by the Con- 19 tractor, pursuant to Section 7.8. 20 21 7.2.3 In the event that the Olinda Substation is out of service, 22 Western will make a good faith effort to schedule the 23 Contractor's power transfers over Western's 230-kV system 24 between the Tracy Substation and the Redding area or other _2S Point(s) of Receipt or Point(s) of Delivery as mutually agreed 7 I. • • 1 by the Parties, until such time as the Olinda Substation 2 service is restored. 3 4 7.2.4 For the purpose of assessing losses, the schedule to the Olinda 5 Substation from the Keswick and/or the Airport Substations 6 in each half-hour scheduling period will be netted against the 7 schedule from the Olinda Substation to the Keswick and/or 8 the Airport Substations in the same scheduling period and 9 losses will apply to the net schedule. Loss factors are speci- 10 fied in Exhibit A and will be redetermined in accordance with 11 Section 7.4.4. 12 13 7.3 Should the COTP and the Olinda Substation not be completed as 14 provided for in the COTP Agreements, and should a subsequent 15 transmission project -develop that would provide both Parties 16 additional transmission capacity, Western agrees to provide to the 17 Contractor, to the extent practicable, up"to 90 MW of bidirectional 18 Firm Transmission Service over Western's 230-kV transmission system 19 between.,the Keswick and/or the Airport Substations and intercon- 20 necting Western's substations under terms and conditions equivalent 21 to Article 7.2 of this Contract. 22 23 7.4 The following provisions shall apply to the setting and redetermin- 24 ation of Transmission Rate(s) of Delivery, Point(s) of -25 8 • • 1 Delivery, Point(s) of Receipt, and losses in accordance with Sections 2 7.1, 7.2, and 7.3 above: 3 4 7.4.1 For Western's long term planning purposes; on or before 5 November 1 of each year, the Contractor shall submit a 6 written request for the maximum Transmission Rate of 7 Delivery expressed in kilowatts and the type of transmission 8 service as specified in Sections 7.1, 7.2, and 7.3 above, at the 9 Point(s) of Delivery and Point(s) of Receipt for the next three 10 (3) years (January 1 through December 31) beginning on 11 January 1 following the aforesaid November 1 and ending on 12 December 31 three (3) years later. To the extent that 13 Western determines that the amount and type of transmission 14 capacity is available for the Contractor's use in accordance 15 with the Sections 7.1, 7.2, and 7.3 above, Western shall 16 modify Exhibit A to reflect the annual updated request or 17 such other requests for additional Transmission Rate of 18 Delivery which the Contractor may make from time-to-- 19 ime-to-19 time. The Contracting Officer will make reasonable efforts 20 to act upon each such request within ninety (90) days after 21 receiving such request and approval of each such request shall 22 be signified by incorporation of the request in a modification 23 of Exhibit A. Failure of the Contracting Officer to act upon 24 such request by January 30 of each year shall constitute a _25 denial of the request for Transmission Rate of Delivery. 9 • • 1 7.4.2 Upon written request by the Contractor, a reduction in Tran- 2 smission Rate of Delivery at the Point(s) of Delivery for 3 future operating years shall be automatically approved and 4 Exhibit A shall be modified to reflect such reduction. 5 6 7.4.3 If at any time the Contractor requires a Transmission Rate of 7 Delivery greater than that specified in Exhibit A, the Con- 8 tracting Officer may, at the Contracting Officer's sole dis- 9 cretion, either deny the request for such additional deliveries, 10 subject to the provisions of Section 7.2 above, or provide 11 Nonfirm or Firm Transmission Service for a period 12 determined by the Contracting Officer, but not to exceed one 13 (1) year. If the request is denied, then the Contractor must 14 either find transmission paths and power from another source, 15 reduce their laud to comply with the Transmission Rate of 16 Delivery, or if the Contractor exceeds the Transmission Rate 17 of Delivery, be subject, at Western's discretion, to either a 18 twelve (12) month ratchet, beginning in the month that the 19 Transmission Rate of Delivery was exceeded, or the overrun 20 charge as may be specified in the applicable rate schedule. 21 The modified Transmission Rate of Delivery shall be 22 evidenced by a revision to Exhibit A, which may be effective 23 retroactively, to the beginning of the first month during 24 which such change in service was provided. '25 10 • 1 7.4.4 Western will advise the Contractor, not less than three (3) 2 years in advance, of any contemplated changes in its 3 transmission system(s), including changes in reliability or 4 power flow, which will affect the ability of the Contractor to 5 receive power from Western's system(s) or which will require 6 changes in the Contractor's substation facilities or changes or 7 reductions of the Transmission Rate of Delivery, Point(s) of 8 Delivery, Point(s) of Receipt, and/or applicable losses. 9 Western will modify Exhibit A to reflect available 10 transmission capacity, as determined conclusively by 11 Western, pursuant to this Section. The Contractor shall have 12 the option of either accepting a reduction in Transmission 13 Rate of Delivery or upgrading or constructing new Western 14 facilities as required and pursuant to Section 7.8. 15 16 7.5 Prior to the establishment of a Point of Delivery, which is an addition 17 to the point(s) contained in Exhibit A hereto, the Contractor shall 18 provide, at its sole expense, facilities not- provided by Western but 19 determined by Western to be necessary for the establishment of said 20 delivery point. 21 22 7.6 When Western is providing Firm Transmission Service to the 23 Contractor: 24 25 11 1 7.6.1 In accordance with Prudent Utility Practice, the Western 2 transmission system shall normally be operated and main- 3 tained to minimize interruptions of service. 4 5 7.6.2 The Parties recognize that Firm Transmission Service may be 6 interrupted due to causes specified in Provision 28 of the 7 General Power Contract Provisions (Provision 28), or, for 8 example, but not limited to, the construction of the COTP. 9 Firm Transmission Service shall be continuously available 10 except for (1) interruptions or reductions due to uncontrol- 11 lable forces, as defined in Provision 28, (2) interruptions or 12 reductions due to operation of devices installed for power 13 system protection, (3) temporary interruptions or reductions 14 which, in the opinion of the Contracting Officer are neces- 15 - sary or desirable for the purpose of maintenance, repairs, 16 replacements, installation of equipment, or investigation and 17 inspection, and (4) for construction of additions to existing 18 facilities. The Parties shall coordinate scheduled outages 19 under (3) and (4), above. The Contracting Officer, except in 20 the case of emergency as determined by the Contracting 21 Officer, will give the Contractor reasonable advance notice 22 of such temporary interruptions or reductions and will remove 23 the cause thereof with diligence. 24 -25 12 • • 1 7.7 When Western is providing Nonfirm Transmission Service to the 2 Contractor: 3 4 7.7.1 The Contractor's dispatchers shall schedule energy at the 5 Point(s) of Receipt to account for losses as specified in 6 Exhibit A. 7 8 7.7.2 Western shall have the sole discretion to interrupt or curtail 9 Nonfirm Transmission Service at any time and for any reason 10 upon oral notice given by Western's dispatcher to the Con- 11 tractor's dispatcher; however, in cases of emergency, inter- 12 ruption or curtailment may occur without prior notice given 13 to the Contractor. 14 15 7.8 To meet the Contractor's requirements for transmission service, 16 Western may require the.Contractor to advance its share of funds to 17 Western for construction or reinforcement of interconnection or 18 other facilities related to the transmission- service request from the 19 Contractor, pursuant to a separate contract to be negotiated between 20 Western and the Contractor. 21 22 7.8.1 If the Contracting Officer determines that it is necessary to 23 study whether reinforcements or additional facilities will be 24 required, the Contracting Officer may request the Contractor 25 to advance its share of funds for the costs of the study. 13 • •• • 1 Before any studies are performed, the Contracting Officer 2 will provide the Contractor with an itemized cost statement 3 and the amount of funds required. The Contracting Officer 4 will not begin studies until the Contractor has paid the 5 amount specified. Western will use best efforts to perform 6 such studies in a timely manner. 7 8 7.8.2 If studies lead to changes in the facilities of Western that 9 result in a benefit to Western or others, the Contractor shall 10 be repaid by Western or others for their proportionate share 11 of the funds advanced by the Contractor to perform such 12 studies. The method of repayment and the allotment of study 13 costs between the parties will be agreed upon by the Parties. 14 15 8. TRANSMISSION SERVICE RATES 16 17 8.1 When the Contractor is receiving Firm Transmission Service here- 18 under, Western shall charge the Contractor and the Contractor shall 19 pay for Firm Transmission Service in accordance with the "Schedule 20 of Rates for Firm Transmission Service, CV-FT1 (Firm Transmission 21 Schedule)", or a successor rate schedule which shall be attached 22 hereto and made a part hereof. Such-rates will be applied as speci- 23 fied in the Firm Transmission Schedule or a successor rate schedule. 24 25 14 f • • / • • 1 8.2 When the Contractor is receiving Nonfirm Transmission Service 2 hereunder, Western shall charge the Contractor and the Contractor 3 shall pay for Nonfirm Transmission Service in accordance with the 4 "Schedule of Rates for Nonfirm Transmission Service, CV-NFT1 5 (Nonfirm Transmission Schedule)", or a successor rate schedule which 6 shall be attached hereto and made a part hereof. Such rates will be 7 applied as specified in the Nonfirm Transmission Schedule, or a 8 successor rate schedule. 9 10 9. EXHIBITS MADE PART OF CONTRACT 11 12 Inasmuch as the designation of Point(s) of Receipt, Point(s) of Delivery, 13 Voltages, Transmission Loss Percentage(s), and Transmission Rate of Del- 14 ivery may vary during the term of this Contract, said terms and amounts 15 will be set forth in Exhibit A. The initial exhibit is attached hereto, and 16 shall be in force and effect in accordance with its terms until respectively 17 superseded by a subsequent exhibit. The schedule of rates for Firm Trans- - 18 mission Service and Nonfirm Transmission Service, CV-FT1 and CV-NFT1 19 respectively, are attached hereto and shall be in force and effect in accord- 20 ance with their terms until respectively superseded by a subsequent rate • 21 schedule. 22 23 24 -25 15 1 10. INTERPRETATION 2 3 Western and the Contractor agree that this contract shall not prejudice any 4 rights or claims of the Contractor or Western in the civil lawsuit, City of 5 Santa Clara v. Herrington, et al., (No. 85-2899), nor shall this contract be 6 used in any manner to interpret the contractual rights of the Contractor or 7 Western which are in dispute in said lawsuit. 8 9 11. SEVERABILITY 10 11 It is the intention of the Parties that the provisions of this Contract be 12 severable in the event that any of such provisions, or portions thereof, are 13 held to be illegal, invalid or unenforceable by a court or competent juris- 14 diction. In any legal proceeding, the Parties shall act in good faith to defend 15 the enforceability of all provisions of this Contract. 16 17 12. AUTHORIZED REPRESENTATIVES OF THE PARTIES 18 - - 19 Each Party, by written notice to the other, shall designate the represent- 20 ative who is authorized to act in its behalf with respect to those matters 21 contained herein which are the functions and responsibilities of its authoriz- 22 ed representatives of the Parties. Either Party may change the designation 23 of its authorized representative upon oral notice given to the other, 24 confirmed promptly by written notice. -25 16 • r • • 1 13. GENERAL POWER CONTRACT PROVISIONS 2 3 The General Power Contract Provisions, effective July 15, 1985, as revised 4 April 25, 1987, attached hereto, are hereby made a part of this Contract the 5 same as if they had been expressly set forth herein; Provided, That Provision 6 5 shall not be applicable hereunder. 7 8 IN WITNESS WHEREOF, the parties have caused this contract to be executed the 9 day and year first above written. 10 11 12 13 14 WESTERN AREA POWER ADMINISTRATION 15 -By 16 Title Area Manager 17 Address 1825 Bell Street, Suite 105 18 - Sacramento, CA 95825 19 20 AGREED AS TO FORM: CITY OF REDDING 21 By City Attorney 22 Title Mayor 23 ATTEST: Address 760 Parkview Avenue 24 Redding, CA 96001 City Clerk -25 17 " SP' ' Contract No. 88-SAO-40001 EXHIBIT A DESIGNATION OF POINT(S) OF DELIVERY, POINT(S) OF RECEIPT, TRANSMISSION LOSSES, VOLTAGE LEVELS, AND TRANSMISSION RATE OF DELIVERY 1. This Exhibit A shall become effective , 1988, and shall remain in effect until superseded by another Exhibit A. 2. Western will accept and deliver capacity and/or energy, less losses, for the account of the Contractor, in order to provide transmission service in accordance with the terms of the Contract, for the type and amount of Transmission Rate of Delivery, from the Point(s) of Receipt to the Point(s) of Delivery, as stated below. Point(s) Point(s) of Delivery Transmission of Receipt Type of and Voltage Rate of and Voltage Transmission Level (kV) Delivery (MW) Level (kV)(MW) Losses Start Date End Date Service Keswick 29.0 Tracy 30.31 4.5% 7-1-85 6-30-87 Firm (115) 35.0 (230) 36.58 4.5% 7-1-87 6-30-88 and/or 38.0 39.71 4.5% 7-1-88 6-30-89 Airport 45.0 47.03 4.5% 7-1-89 12-31-90 (230) Tracy 590 Keswick 52.25 4.5% 7-1-89 6-30-2029 Nonfirm (230) - (115) and/or Airport (230) Olinda 6/ Keswick 2/ 3/ 5/ Firm (230) (115) and/or - Airport (230) Keswick 6/ Olinda 2/ 3/ 4/ Firm (115) (230) and/or Airport (230) 1/ The Parties acknowledge that studies are currently underway which may determine the availability of firm transmission capacity on Western's system during and after con- struction of the California-Oregon Transmission Project (COTP). Western's obligation to transmit the full amount of transmission demand during and after construction of the COTP is limited to the type and quantity of Transmission Rate of Delivery to be determined by Western. • • 2/ Western is currently conducting studies to determine the losses. Losses will apply to the absolute value of the bidirectional net schedule between Olinda and Keswick or Airport pursuant to Section 7.2.4 of the Contract. 3/ The starting date shall be the inservice date of the COTP. 4/ The ending date shall be coincident with the termination of the Contract and as may be provided for pursuant to Section 5.2 of the Contract, unless Contractor desires a shorter duration. 5/ The ending date shall be five (5) years after the inservice date of the COTP, when Western designates the Olinda Substation 230-kV bus as a Point-of Receipt and Point of Delivery of power to the Contractor, or later as determined by Western. s/ To be determined pursuant to Section 7.4. WESTERN AREA POWER ADMINISTRATION By Title Area Manager Address 1825 Bell Street, Suite 105 Sacramento, CA 95825 AGREED AS TO FORM: CITY OF REDDING By City Attorney Title Mayor ATTEST: Address 760 Parkview Avenue Redding, CA 96001 City Clerk gt, • • 111 411 Schedule CV-FT1 (Supersedes Schedule CV-T1) UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Central Valley Project, California SCHEDULE OF RATES FOR FIRM TRANSMISSION SERVICE Effective: May 1, 1988. Available: In the area served by the Central Valley Project (CVP) . Applicable: To firm transmission service customers where power and energy are received into the CVP system at points of interconnection with other systems and transmitted and delivered, less losses, to points of delivery from the CVP system specified in the service contract. Character and Conditions of Service: Transmission service for three-phase alternating current at 60 hertz, delivered and metered at the voltages and points specified in the service contract. Monthly Rate: Transmission Service Charge: $0.481 per kilowatt of transmission capacity at the point of receipt into the CVP system, as specified in the applicable service contract, whether utilized or not. Adjustments: For reactive power: None. There shall be no entitlement to the transfer of reactive kilovolt-amperes at delivery points, except when such transfers may be mutually agreed upon by Contractor and Contracting Officer or their authorized representatives. For losses: Power and energy losses incurred in connection with the transmission and delivery of power and energy under this rate schedule shall be supplied by the customer in accordance with the service contract. %tot • • • r 4 fir JUL 1 9 1988 L LI