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HomeMy WebLinkAboutReso. 1980 - 106 - Approving supplemental power contract with PG&E • • ., ' • • • • • RESOLUTION NO. S6, -/.04 • A 'RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE SUPPLEMENTAL POWER -CONTRACT WITH P. G. & E. • AND AUTHORIZING THE MAYOR AND CITY CLERK TO SIGN SAME ON BEHALF OF THE CITY. WHEREAS, The City of Redding has an agreement with the • • Western Area Power Administration for a fixed allocation of 116 • • • megawatts of power -through the year 2004 , and ' • WHEREAS, in planning -for the ` future, it is in the best interests of the City of Redding and its citizens to have avail- able to them a ..power -.supply which will provide power at such time • as a demand greater than 116 megawatts is in • • curred;,; rand WHEREAS, it has been determined that this, matter is categorically exempt from` the-.-provisions of :CEQA, • NOW, THEREFORE, ,BE. IT, RESOLVED; by ,thea City Council of the •City of 'Redding that the Supplemental Power Contract, hereto attached as "Exhibit A" , providing for the supplying of electrical energy , to the City of Redding by P. G. & 'E. at -such• time as the City 'of Redding experiences a demand for electricity in an. amount • greater than 116_ :megawatts, is hereby approved, and the Mayor and City Clerk are hereby. authorized to' execute same on behalf of the City. of Redding. I_ HEREBY. CERTIFY that the foregoing Resolution was intro- • duced and read at a regular meeting of the City .Council of the City of Redding on the 19th day of May' , 1980, and was duly adopted at said meeting by the following vote: • • • -1- . ' • • AYES: COUNCILMEN: Demsher, Gard, Kirkpatrick, and Pugh NOES: COUNCILMEN: None ABSENT: COUNCILMEN: Fulton RCHER/ -01`6 Mayo�'' t e 'City of Redding ATT ST: / M L RE- BRAYTO , ty Clerk FORM APPROVED: -----4i,„44// RANDALL A. HAYS, City Attorney -2 • • • AGREEMENT FOR SALE OF ELECTRIC CAPACITY AND ENERGY BY PACIFIC GAS AND ELECTRIC COMPANY TO CITY OF REDDING • • THIS AGREEMENT is entered into by and between the CITY OF REDDING, a California municipal corporation (Redding) and PACIFIC GAS AND ELECTRIC COMPANY, a California corporation (PGandE) (collectively, Parties) . RECITALS A. Redding owns and operates an electric distribution system for the distribution and sale of electric capacity and energy (Power) . Redding now purchases Power directly from the United States of America, Department of Energy (Department) , under a contract between Department and Redding dated April 28, 1964, as amended, which provides for changes, from time to time, in the maximum amount of Power to be available thereunder (Contract Rate of Delivery) , and which provides for partial reductions in such maximum amount. B. The present Contract Rate of Delivery is 98,500 kilowatts. C. Redding anticipates that its Power requirements from time to time may exceed the Contract Rate of Delivery then in effect. D. Direct power purchases by Redding from Department are presently delivered and metered at 115 kv at Department's Keswick Switchyard. E. Redding has requested that PGandE furnish Redding with such amounts of Power as may be required by Redding in excess of the Contract Rate of Delivery from time to time in effect. F. PGandE is willing to comply with Redding's request subject to the terms and conditions herein set forth. NOW, THEREFORE, the parties hereto mutually promise, agree and covenant as follows: I PGandE shall sell and deliver to Redding and Redding shall purchase and receive from PGandE, Power required by Redding in excess of the Contract Rate of Delivery from time to time in effect under the terms and conditions herein contained, except as provided in Section II; provided, these • • • obligations are conditioned on the ability of the Parties to make the meter- ing and transmission arrangements with the Department which are referred to in Sections IV and V. II It is expressly understood and agreed that this Agreement shall not prevent Redding from obtaining Power from sources other than Department and PGandE. It is further understood and agreed that if and when another source becomes available to Redding, such as but not limited to generation owned by Redding, or by a joint powers agency of which Redding is a member (Agency), nothing in this agreement shall prevent Redding from accepting such Power. If Redding acquires such other source and also desires that some Power deliveries from PGandE continue to be available to Redding, at Redding's request PGandE will promptly enter into negotiations with Redding for a new agreement to establish just and reasonable rates, terms and conditions for such deliveries when this agreement terminates as provided in Section XI. The parties shall use their best efforts to complete such negotiations prior to such termination. Any disagreement in such negotiations shall be referred to and reviewed by the Federal Energy Regulatory Commission (FERC) or other regulatory body having jurisdiction. III All Power delivered hereunder by PGandE shall be supplied in accordance with the applicable rates, terms and conditions set forth in PGandE's Electric Tariff Original Volume No. 2 in effect from time to time and on file with FERC and such rates, terms and conditions are here incor- porated by reference. All deliveries of Power to Redding hereunder shall be three phase, alternating current with a nominal frequency of 60 Hertz, subject to reason- able variations in frequency and delivered at 230 kv. Deliveries will be deemed received by Redding at the point where PGandE's electric conductors -2- • . • connect to Department's electric conductors at the interconnection point with PGandE's system near Tracy, California, which point is the contractual delivery point between Department and PGandE (Tracy Interconnection) pro- vided in Contract No. 14-06-200-2948A between Department and PGandE. The total monthly quantities of power delivered to Redding by Department at the Keswick Switchyard, as registered on Department's revenue metering equipment, shall first be reduced to account for monthly Power deliveries to Redding by Department, which shall not exceed the effective Contract Rate of Delivery and proportional energy, as provided in Article 14(c) (2) of Contract No. 14-06-200-2948A between Department and PGandE, and the remaining quantities shall be increased by six 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 PGandE, and shall be used for billing purposes. IV PGandE shall make the necessary arrangements with Department for a pro rata utilization of Department's revenue metering equipment at the Keswick Switchyard delivery point for Redding and for furnishing to PGandE monthly meter reading data for power supplied to Redding by PGandE. V Redding shall maintain a power factor for its total load of not less than that required in its electric contract with Department. Redding shall arrange with Department for the necessary transmission service from the Tracy Interconnection to the Keswick Switchyard delivery point to Department's direct service deliveries to Redding. A copy of the contract between Redding and Department for such transmission service shall be fur- nished to PGandE by Redding. -3- • VI In the event Redding requests PGandE to make Power Deliveries at locations and voltages other than as specified herein, PGandE shall attempt to comply with such requests based on reasonable engineering and financial considerations. VII PGandE shall not be obligated under this agreement to provide supplemental power service to Redding, which when added to 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 Department. Additionally, PGandE shall not be required to contribute to the cost of any reinforcements or additions to the Department's facilities, either at the Keswick Switchyard or extending between the Tracy Interconnection and the Keswick Switchyard or F elsewhere. VIII Nothing contained herein shall be construed as affecting in any way the right of PGandE unilaterally to make application to FERC for a change in rates under Section 205 of the Federal Power Act and pursuant to FERC's Rules and Regulationspromulgated thereunder. Nothing contained herein shall be construed as affecting in any way the right of PGandE to put into effect any change in rates, or as preventing in any way a change in rate from becoming effective, on an interim basis or otherwise, under said Section and pursuant to said Rules and Regulations. Redding shall have the right, at its discretion, to protest the reasonableness of any such changes, new rates or new rate schedules. As used herein, "change in rates" includes but is not limited to change in rates, charges, classifications or service, rules, regulations, and contract terms and conditions relating thereto. -4- : * 111 • Neither Party shall be considered to be in default in respect to any obligation hereunder, other than for the payment of money, if prevented from fulfilling such obligation by reason of an uncontrollable force. For the purpose of this contract the tern "uncontrollable force" means any cause beyond the control of the Party affected, including, but not limited to, failure of facilities, flood, earthquake, storm, lighting, fire, epidemic, war, riot, civil disturbance, labor disturbance, sabotage, vandalism and restraint by court or public authority, which by exercise of due diligence and foresight, such party could not reasonably have been expected to avoid. Either Party rendered unable to fulfill any obligation by reason of an uncontrollable force shall exercise due diligence to remove such inability with all reasonable dispatch. X This Agreement shall, at all times, be subject to such changes or modifications as FERC may, from time to time, direct. XI This Agreement shall be effective on the date it is accepted for filing by FERC and shall remain in effect until terminated by either Party on 12 months advance written notice; provided, that in the event PGandE and Agency enter into an agreement for the sale of Power by PGandE to Agency for delivery to Redding, either alone or in conjunction with power deliveries to any of Agency's other members, or in the event Redding obtains a source of its own electric generation, this Agreement shall terminate automatically on the date of either (1) the initial delivery of Power by or for Agency or, (2) the delivery of Power to Redding from Redding's own electric generation; provided further, that Redding shall not be relieved of any obligation accrued hereunder prior to such termination or of any charges that may be applicable upon such termination. -5- . ., ... . 1111 III Any notice, demand, or request required or authorized by this Agreement shall be deemed properly given if mailed, postage prepaid, to either "Manager Commercial Department, Pacific Gas and Electric Company, 77 Beale Street, San Francisco, California" or to Redding directed to "City Manager, City Hall, Redding, California" as appropriate. The designation of the person to be notified or the address to which the notice is to be mailed may be changed at any time by similar notice. Executed this /9 day of J`/( , 1980. CITY OF REDDING.,,,-,?e,*:" By r - Archer F. Pugh Its Mayor Attest: 4,6 City Clerk FV' M APPROVED 4. i 4, /g7 ii ' . - i ' ' PACIFIC GA$ AND ELECTRIC COMPANY CITY LEGAL. DEPT, A /; a ', By `ry / L: 'Manager, Commercial Department c-7 t�, „7and by . a�ZiandE AttorneyA-7..tfrp. retary .AaBistant -6-