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HomeMy WebLinkAboutReso. 1986 - 326 - Approving the agreement between the city of redding and the united states of america acting through the administrator the western area power administration an agnecy of the department of energy 4 RESOLUTION NO. 3b-i021,, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE AGREEMENT BETWEEN THE CITY OF REDDING AND THE UNITED STATES OF AMERICA, ACTING THROUGH THE ADMINISTRATOR, THE WESTERN AREA POWER ADMINISTRATION, AN AGENCY OF THE DEPARTMENT OF ENERGY, FOR THE SECOND DIRECT INTERCONNECTION OF THE CITY OF REDDING ELECTRIC SYSTEM, AND AUTHORIZING THE MAYOR TO SIGN SAME. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows : 1 . That the City Council of the City of Redding hereby approves the Agreement for the Second Direct Interconnection of the City of Redding Electric System between the City of Redding and the United States of America, acting through the Administrator, the Western Area Power Administration, an Agency of the Department of Energy, a true copy of which is attached hereto and made a part hereof by reference; and 2. That the Mayor of the City of Redding is hereby authorized and directed to sign all necessary documents 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 the aforesaid documents, when appropriate. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of • 4 the City of Redding on the 15th day of December , 1986 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Carter, Gard, Johannessen, & Fulton NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: None X." 6/L2e-4182_ LEE D. FULTON, M.D. , Mayor City of Redding ATTEST: e40e TTTEESTT:e a r ETHEL A. NICHOLS, City Clerk FORM PROVED: RA DALL A. HAYS, ty Attorney -2- • Contract No. DE-MI65-86WP59059 1 2 3 4 5 6 UNITED STATES 7 DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION 8 CENTRAL VALLEY PROJECT, CALIFORNIA 9 Agreement for the Second Direct Interconnection of the City of Redding Electric System 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • 1111 w , Contract No. DE-MI65-86WP59059 1 UNITED STATES 2 DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION 3 CENTRAL VALLEY PROJECT, CALIFORNIA 4 Agreement for the Second Direct Interconnection of the City of Redding Electric System 5 Index 6 Article Page 7 1-11 Recitals 1 8 12 Definition of Terms 4 13 Term of Agreement 4 9 14 Termination of Prior Agreement 5 10 15 Environmental Assessment 5 11 16 Right-of-Way 6 17 Design and Materials 6 12 18 Construction of the Redding Second 13 Direct Interconnection 7 19 Licenses 8 14 20 Ownership, Operation, Maintenance, and 15 Replacement of the Redding Second Direct Interconnection 9 16 21 Power Factor 11 17 22 Power Measurement Responsibilities 11 23 Compensation to Western for Planning, 18 Design, and Construction 13 19 24 Compensation to Western for Operation, Maintenance, and Replacement 15 20 25 Capacity Reserved for Service to Redding 18 21 26 Authorized Representatives 19 27 Performance Obligations 20 22 28 Liability 20 23 29 General Power Contract Provisions 21 24 30 Exhibits Made Part of Contract 21 25 • • Exhibit A - Single Line Drawing 1 Exhibit B - Transformer Loss Adjustment 2 Exhibit C - Estimated Costs for Planning, Design, and 3 Construction Exhibit D - Construction and Cost Schedule 4 Exhibit E - Operations, Maintenance and 5 Replacement Budget Cost Estimate 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Contract No. DE-MI65-,86WP59059 I 2 UNITED STATES DEPARTMENT OF ENERGY 3 • WESTERN AREA POWER ADMINISTRATION CENTRAL VALLEY PROJECT, CALIFORNIA 4 Agreement 6 for the Second Direct Interconnection of the City of Redding Electric System 7 . 8 9 1. THIS AGREEMEIff, made this .. day of , 10 1986, be pursuant to the Act of Congress approved June 17, 1902 (32 IT Stat. 388) , the Act of Congress approved August 26, 1937 (50 Stat. 844, 12 850) , the Act of Congress approved August 4, 1939 (53 Stat. 1187), the 13 Act of Congress approved August 12, 1955 (69 Stat. 719), the Act of 14 Congress approved October 23, 1962 (76 Stat. 1173, 1191) , the Act of 15 Congress approved August 4, 1977 (91 Stat. 565) , and acts amendatory or 16 supplementary to the forgoing acts, between THE UNITED STATES OF AMERICA 17 (United States) , acting through the Administrator, Western Area Power 18 Administration, an agency of the Department of Energy, hereinafter 19 called Western, represented by the officer executing this contract, a 20 duly appointed successor, or a duly authorized representative, 21 hereinafter called the Contracting Officer, and the CITY O -REDDIAG, 22 California, a municipal corporation, hereinafter called Redding, 23 represented by the officer executing this contract, a duly appointed 24 successor, or a duly authorized representative; 25 I • S . WITNESSETH: 1 2 2. WHEREAS, Western operates an electric power system including 3 generation and transmission facilities as part of the Central Valley 4 Project (CVP) ; and 5 6 3. WHEREAS, Redding operates an electric power system including 7 generation, transmission and distribution facilities serving the City of 8 Redding, California, hereinafter referred to as Redding's System; and 9 10 4. WHEREAS, Redding is a preference customer of the CVP and 11 receives direct service from the Federal CVP system at Western's Keswick 12 Substation under the provisions of Contract No. DE-MS65-83WP59008 13 (Primary Contract) dated January 16, 1984, as amended and supplemented; 14 and 15 16 5. WHEREAS, Redding and Western have determined that a second 17 point of direct interconnection of Redding's System to Western's CVP 18 transmission system would be mutually beneficial ; and 19 20 6. WHEREAS, Redding's System reliability would be improved by a 21 second point of direct interconnection; and 22 23 7. WHEREAS, Western and Redding, under the terms of a Letter 24 Agreement dated January 16, 1986, agreed that Redding would pay certain 25 2 i • costs associated with the evaluation, design, and construction of the 1 facilities necessary to provide a second point of direct interconnection 2 of Redding' s and Western's systems; and 3 4 8. WHEREAS, Western will own and have responsibility for the 5 operation, maintenance and replacement of the 230-kV transmission line 6 required for the second direct interconnection; and 7 8 9. WHEREAS, Redding will have responsibility for the operation, 9 maintenance and replacement of the 230/115-kV substation facilities 10 required for the second direct interconnection until such time that 11 Redding' s total customer load exceeds 160 MVA or 152 MW at 95 percent 12 power factor; and 13 14 10. WHEREAS, Redding shall own and have the operation, 15 maintenance, and replacement responsibility for the 230/115-kV power 16 transformers, the 115-kV substation facilities and transmission line to 17 Redding' s system; and 18 19 11. WHEREAS, after such time as Redding' s total customer load 20 exceeds 160 MVA or 152 MW at 95 percent power factor, Western will have 21 responsibility for the operation, maintenance, and replacement of the 22 230-kV side of the substation facilities; and 23 24 25 3 • • NOW THEREFORE, in consideration of the mutual covenants herein set 1 forth, the parties hereto agree as follows: 2 3 DEFINITION OF TERMS 4 5 12. (a) Redding Second Direct Interconnection: The 230-kV 6 physical modifications or additions made to the CVP transmission system 7 and the 230/115-kV substation facilities associated with the second 8 point of direct interconnection of such system to the Redding System, as 9 described by Article 18 herein. 10 11 (b) Completion Date: The date when the 230-kV transmission 12 line and the 230/115-KV substation constructed for the Second Direct 13 Interconnection are energized, all equipment has been tested and found 14 to be in satisfactory working order, all site work is complete and post- 15 construction cleanup is complete. 16 17 TERM OF AGREEMENT 18 19 13. (a) This Agreement shall become effective on the date of 20 execution as contained herein, and shall remain in effect for forty 21 years unless otherwise terminated as provided herein; provided that any 22 obligations incurred hereunder shall remain in effect until satisfied. 23 24 25 4 • • (b) Redding shall have the right to renew and extend this 1 Agreement for successive forty (40) year terms; provided that, at the 2 time of such renewal and subsequent extensions, this Agreement shall be 3 replaced or amended to conform with all applicable general 4 interconnection requirements of Western. 5 6 (c) Redding shall have the right to terminate this agreement 7 upon two (2) years' written notice to Western, provided that any 8 obligations incurred hereunder shall remain in effect until satisfied. 9 10 TERMINATION OF PRIOR AGREEMENT 11 12 14. Upon the execution of this Agreement, the Letter of Agreement 13 signed by the parties on January -16, 1986 is terminated, and all 14 outstanding obligations incurred under such Letter of Agreement shall 15 become part of this Agreement as if expressly set forth herein. 16 17 ENVIRONMENTAL ASSESSMENT 18 19 15. (a) Western shall be responsible for obtaining the necessary 20 National Environmental Policy Act (NEPA) and Department of Energy (DOE) 21 environmental clearances for the construction of the Redding Second 22 Direct Interconnection. No construction will begin until Western has 23 obtained such clearances. 24 25 5 • (b) Redding, or its designated agent, shall be responsible 1 for obtaining any necessary state and local environmental permits and 2 local certification to the extent such permits and certifications are 3 necessary and not otherwise satisfied by the Federal clearances 4 referenced above. 5 6 RIGHT-OF-WAY 7 8 16. (a) Western will obtain and retain ownership of all necessary 9 rights-of-way and easements for the construction, operation and 10 maintenance of the Redding Second Direct Interconnection facilities and 11 transmission lines, exclusive of the 230/115-kV substation site. 12 13 (b) Redding shall retain ownership of the land and rights-of- 14 way on which the 230/115-kV substation and associated facilities will be 15 constructed. 16 17 DESIGN AND MATERIALS 18 19 17. (a) Western will develop the detailed final design for the 20 Redding Second Direct Interconnection facilities and transmission line 21 as described in Article 18 below and based on plans and criteria 22 established in the Design Data Report, and by mutual agreement of 23 Redding and Western. Western and Redding, as agreed, will obtain any 24 necessary materials based on such final design. 25 6 • • 1 (b) The Redding Second Direct Interconnection's final design 2 shall comply with applicable reliability and operational criteria, 3 including the Western System Coordination Council (WSCC) reliability and 4 operating criteria. 5 6 (c) Exhibit A, Single Line Drawing, shall contain the Redding 7 Second Direct Interconnection final design single line drawing and shall 8 be replaced at the time of project completion with an as-built single 9 line drawing. 10 11 CONSTRUCTION OF THE REDDING SECOND' DIRECT INTERCONNECTION 12 13 18. (a) After obtaining the required environmental clearances and 14 necessary rights-of-way, Western will be responsible for the 15 construction and installation of the Redding Second Direct 16 Interconnection as follows: 17 18 (1) The construction of a 230/115-kV substation north of and 19 adjacent to Redding's existing 115/12.5-kV Airport 20 Distribution Substation; the installation of two 60/80/100 MVA 21 230/115-kV transformers, circuit breakers, switches, control 22 building, and associated equipment. 23 24 25 7 • S • (2) Subsequent to, or in parallel with (1) above, Western 1 shall construct a new double-circuit 230-kV transmission line 2 from Western's 230-kV Keswick-Cottonwood #3 Transmission Line 3 to the new 230/115-kV substation referenced above. 4 5 (3) Subsequent to, or in parallel with (1) and (2) above, 6 Western shall obtain line clearances to construct the 7 structure or structures necessary to connect the new 230-kV 8 transmission line to Western's Keswick-Cottonwood #3 9 Transmission Line. Western shall make the final connection of 10 equipment to Western's system. 11 12 (b) Redding shall construct the necessary 115-kV transmission 13 ties to the Redding System. The Redding construction shall terminate on 14 the 115-kV dead-end structures within the 230/115-kV substation. 15 16 LICENSES 17 18 19. (a) Redding grants Western license to enter onto the City's 19 property to construct the 230/115-kV substation as described herein. .20 Such license to Western is granted subject to Article 29 of the General 21 Power Contract Provisions referenced in Article 29 of this Contract. 22 23 (b) Western and Redding hereby grant licenses to the 24 authorized agents and employees of the other party to enter their 25 8 • respective rights-of-way at all reasonable times, provided that proper 1 advance arrangements are made with Western or Redding as appropriate. 2 All activities of the parties, their employees, or agents, under this 3 license, shall be performed so as not to interfere in any manner with 4 the operation and maintenance of the respective facilities of. the 5 parties. 6 7 (c) Western hereby grants to Redding a license for a second 8 interconnection with the transmission system of the United States on the 9 Keswick-Cottonwood #3 230-kV line at a specific point approved by 10 Western, in the vicinity of Redding's Airport Substation; provided that 11 Redding hereby agrees that it will not, without the prior written 12 approval of Western, make any significant system changes that could 13 adversely affect the operation of Western's system. 14 15 (d) Western shall review with Redding any changes or 16 additions which need to be made to the Western transmission system as a 17 result of the Second Direct Interconnection to maintain the reliability 18 or control of Western's transmission system. The agreed upon costs or a 19 proportionate share of the costs of the agreed changes or addition as 20 determined by Western and Redding will be paid by Redding. 21 22 (e) Within thirty (30) days after termination of this 23 Agreement, Redding shall disconnect its facilities from the 230-kV side 24 of the 230/115-kV power transformers. Western, upon termination of this 25 9 • • Agreement, shall remove its equipment from the 230/115-kV substation 1 site within a reasonable amount of time. 2 3 OWNERSHIP, OPERATION, MAINTENANCE, AND 4 REPLACEMENT OF THE REDDING SECOND DIRECT INTERCONNECTION 5 6 20. (a) (1) Western shall retain ownership of the 230-kV 7 transmission and 230-kV substation facilities and common facilities (as 8 specified below) , exclusive of the substation site, constructed pursuant 9 to Article 18. Western shall be responsible for the cost of operation, 10 maintenance, and replacement of the 230-kV transmission line. Redding 11 shall be responsible for the cost of all necessary operations, 12 maintenance, and replacement of the 230-kV substation facilities until 13 the first time that Redding's customer load exceeds 160 MVA or 152 MW at 14 95 percent power factor. In the first month after such occurrence, 15 Western shall assume the cost of operations and maintenance and the 16 replacement responsibility of the 230-kV substation facilities including 17 common facilities such as, but not limited to, the control house, yard 18 lights, fencing, site access, battery system, and station service. 19 20 (2) Western shall perform, at Redding's expense, the 21 operation, maintenance and replacement of the 230-kV substation 22 facilities for the time period specified in (a) (1) above. 23 24 25 10 • (b) (1) Redding shall own and be responsible for the cost of 1 operation, maintenance, and replacement of the 115-kV substation 2 facilities, including the 230/115-kV power transformers. 3 4 (2) Western shall perform, at Redding's expense, the 5 operation, maintenance, and replacement of the 115-kV substation 6 facilities, including the 230/115-kV power transformers. 7 8 (c) Redding shall retain ownership of any new 115-kV rights- 9 of-way and easements for the Redding Second Direct Interconnection 10 transmission line and substation site. Western shall retain ownership 11 of any new rights-of-way and easements associated with structures 12 installed in the Keswick-Cottonwood #3 Transmission line and with the 13 new 230-kV double-circuit transmission line required as part of the 14 Redding Second Direct Interconnection. 15 16 (d) Redding shall have the right to perform routine operation 17 and maintenance of the substation facilities. Such routine operation 18 and maintenance will only be performed when it is cost effective to do 19 so and with advance notice given to Western. Redding shall also have 20 the right to perform operation and maintenance of the substation under 21 emergency conditions after obtaining clearance from Western. 22 23 24 25 11 POWER FACTOR 1 2 21. Redding shall maintain a power factor at the Redding Second 3 Direct Interconnection with the CVP Transmission System greater than or 4 equal to 95 percent, lagging or leading. If Redding fails to commence 5 action to meet this requirement, then, after six months written notice, 6 Western may install equipment at the expense of Redding, as necessary to 7 correct the power factor to within the designated limits. 8 9 POWER MEASUREMENT RESPONSIBILITIES 10 11 22. (a) Western will install and own any revenue metering 12 equipment at the Redding Second Direct Interconnection. The parties 13 agree that revenue metering may be installed on the 115-kV side of the 14 230/115-kV transformers. If 115-kV metering is installed, a transformer 15 loss adjustment based on actual transformer losses derived from 16 transformer test data will be applied to calculate the amount of power 17 delivered to Redding. This transformer loss adjustment shall be 18 specified in Exhibit B, Transformer Loss Adjustment. Western or its 19 designated representative will be responsible for reading, maintaining, 20 and repairing all revenue metering equipment including instrument 21 transformers necessary for capacity, energy, and reactive power 22 measurement. 23 24 25 12 • • (b) Upon written request, Redding will be provided with a 1 copy of the readings by Western or its agent. 2 3 (c) Western shall provide Redding, or its designated 4 representative, digital information from revenue metering equipment as 5 available. Analog information or access to Western's instrument 6 transformer secondaries will be provided at Western's discretion. Even 7 though this information is provided to Redding, Western's revenue 8 metering equipment will be the sole determination of Redding' s ,energy 9 and capacity usage. Instrument transformer secondary circuits will be 10 used only for revenue metering purposes and not for other purposes 11 except at the sole determination of Western. 12 13 (d) The Second Direct Interconnection and the Keswick 14 Substation shall be treated as a common (combined) point of delivery or 15 receipt for purpose of power billing and power scheduling. 16 17 (e) In the substation control house, Western will provide 18 space for the installation of data acquisition equipment by Redding. 19 The data acquisition equipment which will consist of a remote terminal 20 unit (RTU) , will be owned, operated, and maintained by Redding. The 21 equipment shall be contained in a wall mounted cabinet with approximate 22 dimensions of 4' x 6' x 2' . Western will retain ownership of and will 23 install , at Redding' s expense, meter isolation relays, transducers, 125 24 VDC power cables, telephone protective equipment and intercabinet 25 13 • • wiring. Redding will be responsible for the final connections of all 1 control wiring and power cables to the RTU. The demarcation point 2 between Redding' s and Western's equipment will be the terminal blocks in 3 the RTU. 4 5 COMPENSATION TO WESTERN FOR PLANNING, DESIGN, AND CONSTRUCTION 6 7 23. (a) Redding shall pay Western in advance, in accordance with 8 subarticle 23(d) , for the agreed upon costs of labor, and materials, 9 including then effective overhead costs, associated with development of 10 the Redding Second Direct Interconnection as provided by this 11 Agreement. Such payment may include, but may not be limited to, 12 compensation to Western for engineering, contract development, design 13 and planning; and, acquiring necessary rights-of-way and easements, 14 environmental clearances or permits; and, constructing or installing the 15 facilities referenced in Article 18 herein. 16 17 (b) The total cost to be paid by Redding to Western in 18 consideration for work to be performed by Western pursuant to this 19 Agreement shall not exceed the amount established in Exhibit C, 20 Estimated Costs for Planning, Design, and Construction. Exhibit C of 21 this- Agreement will originally contain a detailed breakdown of the total 22 estimated cost of the work to be performed by Western, and may be 23 revised as necessary by mutual agreement between Redding and Western to 24 reflect the actual cost of the Redding Second Direct Interconnection. 25 14 • Western will provide Redding with an itemized statement of the actual 1 total cost within 60 days of the completion of the Redding Second Direct 2 Interconnection. Any funds advanced by Redding pursuant to this 3 Agreement in excess of the actual total cost incurred by Western will be 4 returned to Redding as soon as practicable after completion of the 5 Redding Second Direct Interconnection; provided that, if Western 6 determines that it is feasible to carry any advance funds provided by 7 Redding in interest bearing accounts, then any accrued interest shall be 8 paid Redding by the institution carrying such account, and under the 9 terms and conditions associated with the account by such institution. 10 11 (c) Exhibit D, Construction and Cost Schedule, contains the 12 estimated schedule of tasks and associated costs for the development of 13 the Redding Second Direct Interconnection. This schedule may be amended 14 and replaced from time to time as mutually determined by Western and 15 Redding according to the progress of the Redding Second Direct 16 Interconnection's design, materials acquisition, and construction. 17 18 (d) In the event that Western performs the construction and 19 installation of facilities pursuant to this Agreement, Western shall 20 bill Redding for the amount of funds to be advanced to meet the schedule 21 included in Exhibit D. Redding will pay Western such advance payment 22 within 30 working days of billing. This initial advance payment will be 23 entered by Western into a trust fund account on behalf of Redding, and 24 from time to time at the sole discretion of Western, and as determined 25 15 • necessary to fulfill its obligations under this Agreement, Western shall 1 bill Redding in amounts sufficient to maintain an appropriate balance in 2 the trust fund account. Before funds can be billed by Western to 3 Redding in excess of the estimated total cost referenced in Exhibit C, 4 Redding and Western must mutually agree to such expenditures in writing 5 and Exhibit C shall be modified accordingly. Western shall not be 6 obligated to perform any work, or make any expenditures, pursuant to 7 this Agreement without advance payment of funds by Redding. 8 9 (e) In consideration of Redding' s budgetary planning process, 10 Western shall provide Redding with an estimate of the expected amount to 11 be billed to Redding and the expected schedule of such bills for 12 Redding's forthcoming fiscal year by March 1 of each year. Western 13 shall notify Redding in writing of any changes to these expected advance 14 billing schedules as soon as practicable. 15 16 (f)' Western shall bill Redding for the actual cost of 17 materials, labor, and the applicable administrative and overhead rates . 18 19 COMPENSATION TO WESTERN FOR 20 OPERATION, MAINTENANCE, AND REPLACEMENT 21 22 24. (a) Redding agrees to pay Western for the costs of labor and 23 materials including overhead costs associated with operation, 24 25 16 • • maintenance, and replacement of major items of equipment in the Redding 1 Second Direct Interconnection as provided in Article 20. 2 3 (b) Not later than thirty (30) days prior to the estimated 4 date on which the Second Direct Interconnection is to be placed in 5 regular and continuous operation, Redding shall advance to Western the 6 amount estimated by Western to be the total of the cost per Article 7 24(a) for the period ending at the end of the quarter in which such. 8 operation begins. Redding shall , on the first day of each subsequent 9 quarter, make further quarterly advances to Western in amounts requested 10 by Western based on Western's latest estimate of the above costs. 11 12 All amounts so advanced by Redding shall be collectively 13 called "Operation, Maintenance and Replacement Trust Fund" and shall be 14 held by Western in trust to defray the expense and cost to Western of 15 performing Redding's share of the work specified in Article 20 hereof. 16 If , at any time hereafter, Western estimates that the amount in the 17 trust fund during any quarter is insufficient to pay Redding's share of 18 the expense and cost of performing such duties, Redding will promptly 19 advance to Western, on receipt of Western' s request, such additional 20 monies as Western estimates will be required for that quarter. If at 21 the end of any quarter, Western determines that payments to the 22 Operations, Maintenance and Replacement Trust Fund have exceeded 23 Redding's share of costs and expenses specified in Section 24(a) , such 24 25 17 • 4 excess shall be credited against and shall reduce payment for the 1 succeeding quarter to be made by Redding. 2 3 (c) (1) On or before March 1 of each year, Western shall 4 submit to Redding a proposed budget, Exhibit E, Operations, Maintenance, 5 and Replacement Cost Estimate for Redding's next fiscal year. The 6 budget will contain such detail as Redding requests and Western will 7 review and discuss the proposed budget and revisions with Redding. 8 9 (2) Either party shall have the right to terminate 10 Western' s performance of the operations, maintenance, and replacement of 11 the facilities as specified in Article 20 (b) (2) , upon one year's 12 written notice. All obligations as provided for in this article, up to 13 the termination effective date specified in the notice, shall be 14 preserved until satisfied. Any funds remaining in the trust fund after 15 all obligations are satisfied shall be returned to Redding, with no 16 interest whatsoever. 17 18 CAPACITY RESERVED FOR SERVICE TO REDDING 19 20 25. (a) The total interconnected capacity (at Keswick and Airport 21 Substations, on a combined basis) normally available to Redding shall be 22 350 MVA. However, CVP operating conditions may, under certain 23 circumstances, limit this level to 275 MVA. 24 25 18 Upon the request of either Party, analysis of these CVP 1 operating condition limitations will be jointly prepared and reviewed by 2 Redding and Western to determine whether increased substation capacity 3 levels can be instituted. The interconnected substation capacity levels 4 described in the paragraph (a) will be increased by 30 MVA if the Shasta 5 Dam Area Public Utility District (SDAPUD) 115-kV transmission system 6 becomes interconnected with Redding' s 115-kV transmission system and 7 disconnected from Western's Keswick Substation. 8 9 (b) Redding shall normally operate its 115-kV transmission 10 system in such a configuration which will not cause overload conditions 11 to occur on the Western 230-kV transmission system. Redding recognizes 12 that the Second Direct Interconnection delivery capacity may be limited 13 if Redding operates its 115-kV system in a sectionalized manner. Should 14 Redding choose to operate its 115-kV transmission system in parallel 15 with the Western 230-kV transmission system, no operating limitations 16 will be imposed under normal conditions. 17 18 (c) In the event of an outage on both circuits of the 19 proposed 230-kV Airport-interconnection line, Redding shall have the 20 right to any capability not being utilized by Western or the SDAPUD, at 21 Western's 230/115-kV Keswick Substation, insofar as Redding's existing 22 transmission lines from Keswick can accommodate the increased load. 23 24 25 19 • • (d) In the event of an outage of the Keswick to Airport or 1 Airport to Cottonwood lines, or a segment or single terminus of the 2 Keswick-Cottonwood #3 line, Redding shall continue to receive firm 3 transmission service through the remaining energized segments, pursuant 4 to the transmission service agreement in effect at the time, Provided 5 that, effective repair/restoration is not impaired. Should this prove 6 operationally infeasible, Redding shall have rights as in (c) above to 7 utilize capacity at Keswick. 8 9 AUTHORIZED REPRESENTATIVES 10 11 26. Each party, by written notice to the other, shall designate 12 the representative who is authorized to act in its behalf with respect 13 to those matters contained herein which are the functions and 14 responsibilities of the authorized representatives of the parties. Each 15 party may change the designation of its authorized representative upon 16 written notice to the other. 17 18 PERFORMANCE OBLIGATIONS 19 20 27. Neither party shall be liable for failure to complete 21 cons-truction of and to place in operation any facility to be completed 22 pursuant to the provisions of this contract by the estimated completion 23 date specified for such facility, if such party shall have used its 24 25 20 • • utmost efforts and shall have diligently endeavored to place such 1 facility in operation by such estimated completion date. 2 3 LIABILITY 4 5 28. (a) Redding, its officials, agents, and employees, or any of 6 them, shall not be liable for any claims , demands, cost, losses, cause 7 of action, damages, or liability of whatsoever kind of nature arising 8 out of or resulting from the construction, operation and maintenance by 9 Western of the existing facilities and facilities built by Western under 10 this contract. Western, its officers, agents, and employees, or any of 11 them, shall not be liable for any claims, demands, costs, losses, causes 12 of action, damages, or liability of whatsoever kind of nature, arising 13 out of or resulting from the construction, operation and maintenance by 14 Redding of the facilities of Redding under this contract. 15 16 (b) Nothing in this contract shall be construed to create any 17 duty to, any standard or care with reference to or any liability to any 18 person not a party hereto. 19 20 GENERAL POWER CONTRACT PROVISIONS 21 22 29. The General Power Contract Provisions effective July 15, 1985, 23 except for Article 5, are hereby made a part of this contract the same 24 as if they had been expressly set forth herein. 25 21 4111 III/ EXHIBITS MADE PART OF CONTRACT 1 2 30. The Single Line Drawing, Transformer Loss Adjustment, 3 Estimated Costs for Planning Design and Construction, Construction and 4 Cost Schedule, and the Operation, Maintenance, and Replacement Cost 5 Estimate are set forth in Exhibits A, B, C, D, and E respectively. Each 6 of said exhibits shall become a part of this Contract during the term 7 fixed by its provisions. The initial Exhibits A, B, C, D, and E are 8 attached hereto, and each shall be in force and effect in accordance 9 with its terms until respectively superseded by a subsequent exhibit . 10 11 IN WITNESS WHEREOF, the parties hereto have caused this contract to be 12 duly executed the day and year first written above. 13 14 WESTERN AREA POWER ADMINISTRATION 15 16 17 David G. Coleman Area Manager 18 Sacramento Area Office Agreed as to Form 19 By 20 Title 21 22 CITY OF REDDING Attestation By 23 By Title 24 Title Date 25 FORM APPROVE) 22 ®f i, ,iG - r / CITY LEGAL DEPT.,` • • Contract No. DE-MI65-86WP59059 EXHIBIT A SINGLE LINE DRAWING 1. This Exhibit A, made this day of , 1986, to be effective under and as a part of Contract No. DE-MI65-86WP59059, dated , 1986 (hereinafter called the Contract), shall become effective on the first day of , and shall remain in effect until superseded by another Exhibit A; Provided, That this Exhibit A or any superseding Exhibit A shall be terminated by the termination of the Contract. 2. The Single Line Drawing for the Second Direct Interconnection is attached hereto as page 2. WESTERN AREA POWER ADMINISTRATION By Title AREA MANAGER Address 1825 Bell Street Sacramento, Ca 95825 CITY OF REDDING, CALIFORNIA By ATTEST: Title MAYOR Address 760 Parkview Avenue Redding, CA 96001 City Clerk APPROVED AS TO FORM 1 y 'ttorne EXHIBIT A Page 2 of 2 titi �•:•:.ti:.:....._ti.:r:...:•.ti:.... .._:.ti:.r2.:r..;.:.xa.:fit.'.-z....-s:._...... .:r....._ 1 Redding 115kV Redding 115kV S T 1 . �J LLLI +---- . 0 1 C: E W E • j j ° > • f is e in CO 1::1 o : '' N • : :; • i. s To Keswick To Cottonwood • • • City of Redding ff -, Conceptual W650UAC6 DIRECT INTERCONNECTION NTEANATIONAL Substation Design PROJECT INC. •••••s.............::ttt1K•:;:•.;;htY.V1fY:Y17r{r tttiLti171:':'L'11.'GC'ytiYC;r:i:17CG9:YC'1?Y.sw.• ... - :R'Q:•:•i`:• •a1�::1;';i 1. • • Contract No. DE-MI65-86WP59059 EXHIBIT B TRANSFORMER LOSS ADJUSTMENT 1. This Exhibit B, made this day of , 1986, to be effective under and as a part of Contract No. DE-MI65-86WP59059, dated , 1986 (hereinafter called the Contract) , shall become effective on the first day of , and shall remain in effect until superseded by another Exhibit B; Provided, That this Exhibit B or any superseding Exhibit B shall be terminated by the termination of the Contract. 2. In the event that revenue metering is installed on the 115-kV side of the 230/115-kV transformers, the Transformer Loss Adjustment to calculate the amount of power delivered to Redding, in accordance with Article 22(a) of the Contract, shall be * percent. WESTERN AREA POWER ADMINISTRATION By Title AREA MANAGER Address 1825 Bell Street Sacramento, Ca 95825 CITY OF REDDING, CALIFORNIA By ATTEST: Title MAYOR Address 760 Parkview Avenue Redding, CA 96001 City Clerk APPROVED AS TO FORM AOF - a�y ity attorney � *Transformer Loss Adjustment to be based on forthcoming transformer test data. • • Contract No. DE-MI65-86WP59059 EXHIBIT C ESTIMATED COSTS FOR PLANNING, DESIGN, AND CONSTRUCTION 1. This Exhibit C, made this day of , 1986, to be effective under and as a part of Contract No. DE-MI65-86WP59059, dated , 1986 (hereinafter called the Contract), shall become effective on the first day of , and shall remain in effect until superseded by another Exhibit C; Provided, That this Exhibit C or any superseding Exhibit C shall be terminated by the termination of the Contract. 2. The Estimated Costs for Planning, Design, and Construction is attached hereto as pages 2, 3, and 4. WESTERN AREA POWER ADMINISTRATION By Title AREA MANAGER Address 1825 Bell Street Sacramento, Ca 95825 CITY OF REDDING, CALIFORNIA By ATTEST: Title MAYOR Address 760 Parkview Avenue Redding, CA 96001 City Clerk - APPROVED AS TO FORM her y .ttorn•y EXHIBIT C • • Page 2 of 4 CITY OF REDDING DIRECT INTERCONNECTION PROJECT PROPOSED PROJECT COST ESTIMATES I . Transmission A. 230-kV Double Circuit Take-off Structure (1985 cost base) Steel $25 , 000 Foundations 15,000 Misc. and erection 20, 000 $60, 000 B. 230-kV Double Circuit, Single Pole, Assume 5 Tangent Structures (1985 cost base) Poles: 5 units at $6,000/unit $30,000 Foundations : 5 units at $10, 000/unit 50, 000 Insulators: 30 units at $800/unit 24,000 Conductors: 16, 000 ft, 1, 272 kcmil ACSR 26 , 000 Conductor attachments and accessories 5,000 Assembly, erection, conductor installation 100, 000 $235, 000 C. Total Direct Transmission Costs $295,000 (1985 cost base) D. 1988 Estimated Direct Transmission Cost $340, 000 (Based upon 5% annual escalation) EXHIBIT C 411 • Page 3 of 4 E. Total Transmission Construction Cost Budget (1988 costs) Planning $5, 000 Environmental 10,000 Field Data 12, 000 Land and Rights 10,000 Design and Specifications 40, 000 Principal Contracts 340,000 Construction Supervision 20, 000 Administration and Overhead 65,000 Total $500, 000 II . Substation A. 230-kV Facilities (1980 cost basis ) Site Preparation - grounding, fence $400,000 Control House, batteries , etc. 140, 000 230-kV Power Circuit Breakers - 4 units 460,000 230-kV Airbreak Switches - 8 units 120 , 000 230-kV Control and Buswork - 4 units 350,000 230-kV Steel and Footings - 4 units 250, 000 XFMR - 60/80/100 MVA Auto - 2 units 1, 500,000 115-kV Power Circuit Breakers - 6 units 480, 000 115-kV Airbreak Switches - 12 units 120,000 115-kV Control and Busworks - 6 units 450, 000 115-kV Steel and Footings - 6 units 210,000 Total Direct Costs (1985 Cost Base) $4, 480, 000 B. Escalated Direct Costs (1988 at 5 percent per year) $5, 200, 000 EXHIBIT C • • Page 4 of 4 C. Total Substation Construction Budget (1988 costs) Planning $ 30, 000 Environmental 30,000 Field Data 70, 000 Land and Rights* -- Design and Specifications 600, 000 Principal Contracts 5,200,000 Construction Supervision 400, 000 Administration, General 780,000 Other Contracts 150, 000 $7, 260, 000 II . Total Proposed Project (1988 cost base) Transmission $ 500, 000 Substation 7, 260,000 $7, 760, 000 *Proposed site is owned by the City. • • Contract No. DE-MI65-86WP59059 EXHIBIT D CONSTRUCTION AND COST SCHEDULE 1. This Exhibit D, made this day of , 1986, to be effective under and as a part of Contract No. DE-MI65-86WP59059, dated , 1986 (hereinafter called the Contract), shall become effective on the first day of , and shall remain in effect until superseded by another Exhibit D; Provided, That this Exhibit D or any superseding Exhibit D shall be terminated by the termination of the Contract. 2. The Construction and Cost Schedule is attached hereto as page 2. WESTERN AREA POWER ADMINISTRATION By Title AREA MANAGER Address 1825 Bell Street Sacramento, Ca 95825 CITY OF REDDING, CALIFORNIA By ATTEST: Title MAYOR Address 760 Parkview Avenue Redding, CA 96001 City Clerk APPROVED AS TO FORM it. attorney c, , . . ' • . • OD ,r 4 4...). • m & c cfr .4 . CO L.I.i ,--r 4.01- c\I Z cD ti- CO 'c cp 0 OD CL 1-4 •r-CV I-4 'N r-c _C) E—I -II 0 49- •,-- Q) CC '<n) C) 1 & < 0 X MS LI-1 CI- r.Z1 1.1- Cr: Z 0 MI (24 Z •-.1 0 CL# 4. 1....4 u-) ti Z N. Ns I Ls.) <Q4 0 t '• I CV' E4 ri co 07-1 ILL/ .4 4-1 7 1 1 Z n M 0 101- C.) Mb Z Ct-: 00 > - IN 0 Ln •ip• J7 &-44 A ••re.• • a '4 . I. -. U.- 04 LC) op cs) ... .. —4 ci -- ,, 4.1 .4 .. .. CO Q " -• . Nx t.....) Z I—I • 0 0 0 0 0 crl 0 r0 49- . Z .......,=, c.0 rr r_ Z LI M U-1 r•-. I— A 1-4 i-T-I 0 ld c:C r•-• M-Eel- I-- P a cc v) •• ›. 5 < 0 Cr LJJ __I 1-- < > (r) z • z c) 1— z i z 0 o •a- o w < 0 p 5Pzuj 0 m I- E2 < En < 0 0 0 j Iii 0 La 5 zz 0 4i Eo a z t Li) re • Z W 0 I 0 a 0 a 5 --Juiziii w --2 z -JZ LAJ CC < W Cl_ < 0 0 0- 4.1E 0- -JCI (/ M CJC-) 'c- • 0 f • • • Contract No. DE-MI65-86WP59O59 EXHIBIT E OPERATION, MAINTENANCE, AND REPLACEMENT ANNUAL COST ESTIMATE 1. This Exhibit E, made this day of , 1986, to be effective under and as a part of Contract No. DE-MI65-86WP59O59, dated , 1986 (hereinafter called the Contract) , shall become effective on the first day of , and shall remain in effect until superseded by another Exhibit E; Provided, That this Exhibit E or any superseding Exhibit E shall be terminated by the termination of the Contract. 2. The Operation, Maintenance, and Replacement Annual Cost estimate is as follows: a. 115-kV facilities $ 38,000 b. 230/115-kV power transformers 7,000 c. 230-kV facilities and common facilities 25,000 Total Estimated Annual Cost $ 70,000 3. The Total Estimated Annual Cost shall be due and payable in accordance with Article 24(b) of the Contract. WESTERN AREA POWER ADMINISTRATION By Title AREA MANAGER Address 1825 Bell Street Sacramento, Ca 95825 CITY OF REDDING, CALIFORNIA By ATTEST: Title MAYOR Address 760 Parkview Avenue Redding, CA 96001 City Clerk APPROVED AS TO FORM / ,: Ci y Attorn-y