HomeMy WebLinkAbout_ 4.5(b)--Approve Contract No. 23-SNR-02969 - Electric Interconnected OperationsREPORT TO THE CITY COUNCIL
MEETING DATE:
March 19, 2024
FROM: Nick Zettel, Director of
ITEM NO.
4.5(b)
Redding Electric Utility
***APPROVED
BY***
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nzettel@cityofredding.org
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[SUBJECT: 4.5(b) --Approve
Contract No. 23 -SNR -02969 for Electric Interconnected
O erations
Recommendation
Authorize the City Manager, or designee, to execute Contract No. 23 -SNR -02969
"Interconnected Operations Agreement" between the City of Redding and the United States
Department of Energy Western Area Power Administration (WAPA) Sierra Nevada Region for
delivery of Redding's WAPA Base Resource energy allocation from the Keswick and Airport
substations.
Fiscal Impact
Under the current contract for Interconnection Operations, Contract No. 04 -SNR -00847, City of
Redding Electric Utility (REU) paid approximately $1.1M in fiscal year 2023. The Fiscal Year
2023-25 approved Biennial Budget reflects the costs that will occur for the balance of the current
contract through December 31, 2024, and for any new contract that will be in place for these
services.
Alternative Action
The City Council (Council) could choose not to approve Contract No. 23 -SNR -02969,
"Interconnected Operations Agreement," between Western Area Power Administration (WAPA)
and the City of Redding (City). If the Council chooses to decline, the City would not retain the
ability to operate its power system within WAPA's Sub -Balancing Authority Area and would be
required to seek out other options to meet its Balancing Area obligations. The process of seeking
out an alternative option to the interconnection with WAPA would require the City to transition
into another Balancing Authority Area or form its own Balancing Authority, involving a
substantial investment of time from personnel and may entail significant expenses to execute.
Additionally, sustained operational expenditures are anticipated to surpass those linked to the
WAPA interconnection if an alternative option is secured.
Report to Redding City Council March 14, 2024
Re: 4.5(b) --Approve Contract No. 23 -SNR -02969 - Electric Interconnected Operations Page 2
Background/Analysis
WAPA is a power marketing administration of the Department of Energy that has established a
contract -based Sub -Balancing Authority Area within the Balancing Authority of Northern
California (BANC). The Western interconnect for electricity facilitates the transfer of power
between various balancing areas to ensure reliability and stability in the electric grid. WAPA's
interconnect to the larger BANC Balancing Area allows electricity exchange between these two
regions. The interconnection between BANC and the WAPA Sub -Balancing Area enables the
transfer of power between these regions based on supply -demand dynamics, market conditions,
and operational needs. This exchange of electricity helps optimize resource utilization, support
reliability, and facilitate economic benefits for both balancing areas.
Redding's electric system is operated with physical ties to the WAPA Sub -Balancing Authority
Area at the Keswick and Airport substations under current Contract No. 04 -SNR -00847, which
reaches the end of the contract term on December 31, 2024. These physical connections to the
WAPA Sub -Balancing Authority Area allow for the delivery of Redding's WAPA Base
Resource energy allocation, delivery of external power purchase contracts, and facilitate access
to the wholesale energy market within the BANC and wider Western Electricity Coordinating
Council regions including the City's access to its share of transmission rights held on the
California Oregon Transmission Project.
Contract No. 23 -SNR -02969, with an effective date of January 1, 2025, was developed to replace
the expiring Contract No. 04 -SNR -00847. This new Contract No. 23 -SNR -02969 between
WAPA and the City will allow both parties to continue their current contractual relationship
through December 31, 2034, establishes the operational rights and obligations of both WAPA
and the City, identifies the services that are to be provided under the contract, and facilitates
compensation for those services that are provided for under this contract.
Lastly, a departmental review of the new contract found no material differences between the two
contracts.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Priorities/City Manager Goals
• Government of the 21st Century — "Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Attachments
Western Contract 23 -SNR -02969 Interconnected Operations Agreement
Contract 23 -SNR -02969
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
931 77e,1,IzLT%l 7_\ Vxtl[*10
INTERCONNECTED OPERATIONS AGREEMENT
WITH
Contract 23 -SNR -02969
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
INTERCONNECTED OPERATIONS AGREEMENT
WITH
CITY OF REDDING
Section Table of Contents Paqe
1. Preamble ................................................................................................................. 1
2. Explanatory Recitals ............................................................................................... 1
3. Agreement ............................................................................................................... 3
4. Effective Date, Term, And Termination ................................................................... 3
5. Definitions ............................................................................................................... 4
6.
Sub -Balancing Authority Standard ........................................................................
13
7.
Interconnection ......................................................................................................
13
8.
Significant Regulatory or Operational Change ......................................................
13
9.
Planning Standard .................................................................................................
16
10.
Operations .............................................................................................................
16
11.
Metering ................................................................................................................
29
12.
Billing And Payment ..............................................................................................
32
13.
Severability ............................................................................................................
35
14.
Modification of This Contract .................................................................................
35
15.
Exhibits ..................................................................................................................
35
16.
Records And Audits ..............................................................................................
36
17.
Relationship of the Parties ....................................................................................
36
18.
Non -Dedication of Facilities ...................................................................................
36
19.
Governing Law ......................................................................................................
37
20.
Default ...................................................................................................................
37
21.
Notices ..................................................................................................................
37
22.
Dispute Resolution ................................................................................................
37
23.
General Power Contract Provisions ......................................................................
39
24.
Authority To Execute .............................................................................................
39
25.
Execution by Counterparts ....................................................................................
39
26.
Electronic Signatures ............................................................................................
39
Contract
23 -SNR -02969 i
Contract 23 -SNR -02969
Signature Clause
Exhibit A —
City of Redding Net Interchange Determination
Exhibit B —
Scheduling Procedures
Exhibit C
— Reserve Obligations
Exhibit D
— Maximum Deviation Band Calculation
Exhibit E —
Notices
General Power Contract Provisions
Schedule of Rate for Regulation and Frequency Response Service, CV-RFS4
Schedule of Rate for Energy Imbalance Service, CV-EID5
Schedule of Rate for Generator Imbalance Service, CV-GID2
Schedule of Rate for Energy Imbalance Market Energy Imbalance Service, CV-EIM4S
Schedule of Rate for Energy Imbalance Market Generator Imbalance Service, CV-
EIM9S
Contract 23 -SNR -02969
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Contract 23 -SNR -02969
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
INTERCONNECTED OPERATIONS AGREEMENT
WITH
1. PREAMBLE:
This Contract, made this pursuant to the Acts of Congress approved
June 17, 1902 (32 Stat. 388); August 4, 1977 (91 Stat. 565); and Acts amendatory or
supplementary to the foregoing Acts; between the UNITED STATES OF AMERICA,
acting by and through the Administrator, Western Area Power Administration,
Department of Energy, hereinafter called WAPA, represented by the officer executing
this Contract or a duly appointed successor, hereinafter called the Contracting Officer,
and City of Redding, a general law city, organized and existing under the laws of the
State of California, hereinafter called Redding, its successors and assigns; each
sometimes individually called Party, and all sometimes collectively called Parties.
2. EXPLANATORY RECITALS:
2.1. WAPA is a power marketing administration of the Department of Energy
that has established a contract based Sub -Balancing Authority Area within the
Balancing Authority of Northern California (BANC).
2.2. Redding operates an Electric Power System in northern California.
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2.3. Redding operates an Electric Power System with physical ties to WAPA's
Sub -Balancing Authority Area, schedules deliveries of power from WAPA, and
imports to and exports from WAPA's Sub -Balancing Authority Area.
2.4. As a result of Redding's Electric Power System being located within
WAPA's Sub -Balancing Authority Area, WAPA may, by default or otherwise,
perform certain services for Redding.
2.5. On April 3, 2019, BANC, as the Energy Imbalance Market (EIM) Entity,
and Sacramento Municipal Utility District (SMUD), as an EIM Participating
Resource, commenced operating in the California Independent System
Operator's (CAISO) EIM; and on March 25, 2021, the Modesto Irrigation District
(MID), the City of Redding (Redding), and the City of Roseville (Roseville), along
with WAPA began to participate in EIM.
2.6. MID, Redding, Roseville and City of Shasta Lake are herein after
collectively called the "IOA Customers".
2.7. The Parties are currently operating under the terms and conditions of
Contract 04 -SNR -00847, which terminates on December 31, 2024.
2.8. The Parties wish to continue their contractual relationship and provide the
vehicle to establish the operational rights and obligations of the Parties, identify
the services provided, and provide for compensation for the services rendered
under the terms and conditions contained in this Contract.
2.9. Redding has executed a Transmission Service Agreement and/or a
Contract for Interconnection.
Contract 23 -SNR -02969
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3. AGREEMENT:
The Parties agree to the terms and conditions set forth herein.
4. EFFECTIVE DATE TERM AND TERMINATION:
This Contract shall be effective January 1, 2025, and, subject to prior termination
pursuant to Sections 4.1 through and including 4.4 hereof, shall remain in effect through
December 31, 2034.
4.1. Redding may terminate this Contract upon one (1) year advance written
notice given to WAPA. Such notice shall include the identity of the Balancing
Authority Area into which Redding will move or a statement that Redding will
become a Western Electricity Coordinating Council (WECC) recognized
Balancing Authority, the proposed actions that are necessary to accomplish the
movement or to become a Balancing Authority, and the proposed timetable for
such actions. If Redding's proposed actions require WAPA to reprogram its
internal systems, Redding would be responsible for WAPA's costs to perform
these actions.
4.2. WAPA may terminate this Contract upon one (1) year advance written
notice given to Redding if WAPA determines that it cannot reasonably continue
to provide the services covered by this Contract.
4.3. Either Party may terminate this Contract if the other Party defaults
pursuant to Section 20.
4.4. In the event of termination, Redding, at its own expense, shall make
arrangements for and move into another Balancing Authority Area or form its own
Balancing Authority.
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If Redding fails to make such arrangements, WAPA, at its election, may require
Redding to take service under the terms and conditions of the applicable tariffs
developed by WAPA through a public process.
5. DEFINITIONS:
The following terms, whether in the singular or the plural, when initially capitalized and
used in this Contract shall have the meanings specified:
5.1. "Adverse Impact" means an impact on a Party's Electric Power System
resulting from a Modification or new facility addition to the other Party's Electric
Power System that: (1) materially degrades reliability of a Party's Electric Power
System; or (2) materially reduces the Party's ability to conduct power transfers
into or out of its Electric Power System.
5.2. "Automatic Generation Control" means equipment which automatically
adjusts generation from a central location to maintain an entity's system
interchange schedule, plus frequency bias obligation, if any.
5.3. "Balancing Authority (BA)" means the responsible entity that integrates
resource plans ahead of time, maintains demand and resource balance within a
Balancing Authority Area, and supports the frequency of the interconnection in
real time.
5.4. "Balancing Authority Area" means the collection of generation,
transmission, and loads within the metered boundaries of the Balancing
Authority.
5.5. "Balancing Authority Operator" means the entity responsible for operating
a Balancing Authority that performs all duties for such an entity as specified by
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applicable North American Electric Reliability Corporation (NERC) and Western
Electricity Coordinating Council (WECC) documents.
5.6. "Business Day" means any day other than Saturday, Sunday, or a legal
public holiday as designated in Section 6103 of Title 5, U.S. Code or by
Executive Order or federal statute or any WECC designated holidays.
5.7. "Contract" means this Contract for interconnected operations between
WAPA and Redding.
5.8. "Contract for Interconnection" means Contract 23 -SNR -02969 or its
successor, between WAPA and Redding for interconnection of the Parties'
Electric Power Systems.
5.9. "Dispatch Instruction" means an instruction by the Market Operator (MO)
for an action with respect to a specific resource participating in EIM for increasing
or decreasing its energy supply or demand.
5.10. "Dispatch Operating Target (DOT)" means the expected operating point, in
megawatts (MW), of a resource participating in EIM that has received a Dispatch
Instruction from the MO. The Dispatch Operating Target means the MW output
of a resource participating in EIM due to an EIM bid being accepted and the
participating resource receiving a Dispatch Instruction.
5.11. "Electric Power System" means all properties and assets that are owned
by either Party, including any interests in jointly -owned facilities, such as the
California -Oregon Transmission Project, and that are used for or pertain to the
generation, transmission, transformation, control, or distribution of electric power,
Contract 23 -SNR -02969
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including all additions, replacements, extensions, expansions, improvements,
and betterments thereto, and equipment associated therewith. Communication
systems and equipment associated with the operation of the Electric Power
System shall be included as part of the Electric Power System. To the extent
that either Party is not the sole owner of an asset or property, only that Party's
ownership or entitlement interest in such asset or property shall be considered
part of its Electric Power System.
5.12. "Emergency" means any abnormal system condition that requires
automatic or immediate manual action to prevent or limit the failure of
transmission facilities or generation supply that could adversely affect the
reliability of the Bulk Electric System. Insufficient prime mover energy, fossil fuel,
or other shortages of prime -mover energy shall not be considered an Emergency
unless such insufficiency or shortage is the result of an Uncontrollable Force.
Drought shall not be considered an Emergency. In addition, losses or
interruptions resulting from the following events shall not be considered an
Emergency: (1) Dispatchable or non-dispatchable generating resources having
recurring or chronic operational, maintenance, or contractual problems,
(2) failures of dispatchable generating resources to start up on demand,
(3) failures of non-dispatchable generating resources to produce power to meet
their scheduled output, (4) pre -scheduled curtailments or pre -scheduled
interruptions of power or transmission service, (5) curtailments or interruptions of
power or transmission service that occur with advance notice of at least one
hour, or (6) curtailments or interruptions of power or transmission service that
occur without notice where such curtailment or interruption can reasonably be
expected and should be planned for consistent with Good Utility Practice. In
determining whether a Party has suffered a bona -fide Emergency, especially
regarding whether a particular curtailment or interruption of service could
Contract 23 -SNR -02969
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reasonably have been anticipated by that Party, the other Party shall give due
consideration to the standards applicable to planning for contingencies in keeping
with Good Utility Practice and the standard set forth in Section 9 hereof.
5.13. "Energy Imbalance Market (EIM) Entity" means a Balancing Authority that
enters into the MO's EIM Entity Agreement to enable the EIM to occur in its
Balancing Authority Area. BANC is the EIM Entity for the BANC EIM Entity
Balancing Authority Area. For the purpose of this IOA, the EIM Entity is the
BANC EIM Entity or the entity selected by the BANC EIM Entity who is certified
by the MO. WAPA and Redding participate in the CAISO EIM under the BANC
EIM Entity.
5.14. "FERC" means the Federal Energy Regulatory Commission or its
1."1014M ON
5.15. "Forced Outage" means any full or partial unplanned outage of a Party's
generating resources and/or transmission/sub-transmission facilities.
5.16. "Good Utility Practice" means any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility industry
during the relevant time period, or any of the practices, methods and acts which,
in the exercise of reasonable judgment in light of the facts known at the time the
decision was made, could have been expected to accomplish the desired result
at a reasonable cost consistent with good business practices, reliability, safety
and expedition. Good Utility Practice is not intended to be limited to the optimum
practice, method, or act to the exclusion of all others, but rather to be acceptable
practices, methods, or acts generally accepted in the region.
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5.17. "Interconnection Facilities" means each Point of Interconnection and the
facilities and equipment supporting it as determined consistent with Good Utility
Practice (e.g., circuit breakers, protective devices, relays, and metering).
5.18. "Interruptible Energy" means Energy which is subject to curtailment for
any reason with or without advance notification by the supplier/receiver.
5.19. "Locational Marginal Pricing (LMP)" means the CAISO calculated marginal
cost ($/MWh) of serving the next increment of demand at that Pricing Node
consistent with existing transmission constraints and the performance
characteristics of resources.
5.20. "Market Operator (MO)" means the entity responsible for operation,
administration, settlement, and oversight of the EIM. The CAISO is the current
MO of EIM.
5.21. "Maximum Deviation Band" means the maximum megawatt, averaged
over each five (5) minute interval, deviation of metered energy relative to EIM
DOTs allowed, both positive (over generation) and negative (under generation),
within which deviations are accounted for, as specified in Section 10.6.4 hereof.
5.22. "Most Severe Single Contingency (MSSC)" means the generating capacity
equal to the greater of: (1) the largest, single on-line generating resource; (2) the
sum of a utility's on-line generating resources or purchases of firm power served
by a single transmission circuit; or (3) the loss of a credible single or multiple
system element(s) consistent with WECC practices.
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5.23. "NERC" means the North American Electric Reliability Council or
successor agency.
5.24. "Points of Interconnection (POI)" means those places on the transmission
system where facilities are established to connect the Electric Power System of
WAPA with the Electric Power System of Redding and the Electric Power
Systems of Third Parties to the Electric Power System of Redding. The Points of
Interconnection are made up of Points of Receipt (POR) and Points of Delivery
(POD) as typically recognized by NERC in the Transmission System Information
Networks (TSIN) Registry.
5.25. "Pricing Node (PNode)" means a single network node or subset of network
nodes where a physical injection or withdrawal is modeled by the CAISO and for
which the CAISO calculates an LMP that is used for financial settlements by the
CAISO and the EIM Entity.
5.26. "Redding Electric Dispatch Center" means Redding's primary dispatch
center. If this facility is not manned 24 hours per day, Redding will be
responsible for designating the after -hour's point -of -contact.
5.27. "Redding Net Interchange" means the calculations as set forth in
Exhibit A.
5.28. "Redding System Load" means the summation of all Redding's net internal
metered generation minus the total net power flows at all Points of
Interconnection where power flow into Redding's Electric Power System are a
negative value and power flow out of Redding's Electric Power System are a
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positive value. Net power flows will include dynamic schedules and pseudo ties.
5.29 "Reserves"
5.29.1 "California -Oregon Intertie (COI) Mitigation Reserves" means
generation (synchronized or capable of being synchronized to the system)
that is fully available to serve load within the disturbance recovery period
following the contingency event.
5.29.2 "Contingency Reserves" means the provision of capacity that may
be deployed by the Balancing Authority to respond to a Balancing
Contingency Event and other contingency requirements (such as Energy
Emergency Alerts as specified in the associated EOP standard). A
Balancing Authority may include in its restoration of Contingency Reserve
readiness to reduce Firm Demand and include it if, and only if, the
Balancing Authority:
5.29.2.1 Is experiencing a Reliability Coordinator declared
Energy Emergency Alert level and is utilizing its Contingency
Reserve to mitigate an operating emergency in accordance with its
emergency Operating Plan.
5.29.2.2 Is utilizing its Contingency Reserve to mitigate an
operating emergency in accordance with its emergency Operating
Plan.
5.29.3 "Frequency Response Reserves" means Spinning Reserve
that responds automatically to frequency deviations, due to the unit's
governor, within thirty (30) seconds of the event and sustains response for
at least one (1) minute.
5.29.4 "Spinning Reserve" means unloaded generation which is
synchronized to the system and ready to serve additional demand.
Frequency Response Reserves fall under this category.
Contract 23 -SNR -02969
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5.30 "Scheduled Maintenance" means an outage for overhaul, repair, or
maintenance of a Party's generating units or Transmission Facilities or Sub -
Transmission Facilities that are coordinated and scheduled in advance.
5.31 "Significant Operational Change" means any operational change proposed
by a Party that could reasonably be expected to significantly affect the other
Party's Electric Power System or Balancing Authority. Actions taken by the
Balancing Authority operator which may cause a significant change in the way a
Party operates or must operate its Electric Power System or Balancing Authority
or the Points of Interconnection between the Parties. Significant Operational
Changes include but are not limited to the following:
5.31.1 The connections of a generator or group of generators with
capacity of greater than 25 MW on Redding's Electric System;
5.31.2 Load connections greater than 25 MW on Redding's Electric
System;
5.31.3 Transmission line construction, re -enforcements, upgrades,
downgrades at voltages greater than 70 kV on Redding's Electric System;
or
5.31.4 Modifications to WAPA's Electric System that would limit or
prevent WAPA from providing service to Redding under the terms of this
agreement.
5.32 "Significant Regulatory Change" means any course of action ordered by
Congress, the President of the United States, or by a Federal Executive Branch
Agency, including the Department of Energy, directive or State of California
directive that significantly affects the ability of either Party to fulfill its obligations
under this Contract.
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5.33 "Sub -Balancing Authority" means an Electric Power System operating
within a host Balancing Authority that is bounded by meters and is responsible for
Balancing Authority -like performance of generation, load, and transmission.
5.34 "Sub -Transmission Facility" means an interconnected group of lines and
associated equipment for the movement or transfer of electric energy between
points of supply and points at which it is transformed for delivery to customers or
is delivered to other electric systems at voltages generally between 33 kV and up
to 100 W.
5.35 "System Operations Center (SOC)" means WAPA's dispatch center
located in Folsom, California. May also be referred to as Folsom Dispatch Office
(FDO).
5.36 "Third Party" means a person or entity other than WAPA or Redding.
5.37 "Transmission Facility" means an interconnected group of lines and
associated equipment for the movement or transfer of electric energy between
points of supply and points at which it is transformed for delivery to customers or
is delivered to other electric systems at voltages generally above 100 -kV.
5.38 "Uncontrollable Force" means any cause beyond the control of the Party
affected including, but not restricted to, failure of or threat of failure of facilities,
flood, earthquake, storm, fire, lightning, epidemic, pandemic, war, riot, civil
disturbance or disobedience, labor dispute, labor or material shortage, sabotage,
restraint by court order or public authority and action or non -action by, or failure to
obtain the necessary authorizations or approvals from, any government agency or
authority, which by exercise of due diligence such Party could not reasonably
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have been expected to avoid and which by exercise of due diligence it shall be
unable to overcome.
5.39 "Uninstructed Imbalance Energy (UIE)" means settlement charges
incurred by Redding due to uninstructed deviations of supply or demand as
settled by the EIM Entity or MO.
5.40 "WECC" means the Western Electricity Coordinating Council or its
successor agency.
6. SUB -BALANCING AUTHORITY STANDARD:
If the Balancing Authority Operator implements FERC, NERC or WECC standards
and/or requirements in a manner that results in charges paid by WAPA, the Parties shall
meet and confer on any allocation of increased responsibilities and/or costs to Redding.
WAPA will charge Redding its share of additional charges, as determined by WAPA in a
public process, and Redding shall pay such charges, to the extent such charges are not
covered in an existing rate schedule.
7. INTERCONNECTION:
The Electric Power Systems of the Parties shall be interconnected at the Points of
Interconnection as provided for in the Contract for Interconnection.
8. SIGNIFICANT REGULATORY OR OPERATIONAL CHANGE:
8.1. Notice: If, at any time during the term of this Contract, either Party
becomes aware of a Significant Regulatory Change or Significant Operational
Change that impacts a provision of this Contract, such Party shall provide notice
to the other Party no later than one month after becoming aware of such
Significant Regulatory Change or Significant Operational Change. The notice
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Contract 23 -SNR -02969
shall contain a description of the Significant Regulatory Change or Significant
Operational Change, including expected time schedules and studies, in
accordance with Section 8 hereof. If the Party giving notice believes that it will
be necessary to amend this Contract to address the anticipated change, then the
notice to the other Party may include a proposal that the Parties meet in order to
negotiate an appropriate amendment to this Contract.
8.2. Significant Operational Change:
8.2.1. Studies of Significant Operational Change: If, in accordance with
Section 8.1, a Party receiving notice from the other Party of a Significant
Operational Change believes that the proposed change may reasonably
be expected to affect the operation of its Electric Power System materially,
it may request a study of any such Significant Operational Change to
determine the potential for any Adverse Impact and any potential
avoidance or mitigation measures thereto. The Parties shall cooperate in
providing information necessary to conduct such study. If WAPA
determines that, in addition, a system planning study is required, WAPA
shall perform such study within 120 days of notice of the Significant
Operational Change. The study costs shall be the responsibility of the
Party whose proposal will cause the Significant Operational Change, or
will be shared by the Parties if; (1) the Balancing Authority Operator is an
entity other than WAPA and is the one who causes or will cause the
Significant Operational Change; or (2) the Significant Operational Change
is a proposal of a Third Party; provided, that such costs may be paid by a
responsible Third Party. The study shall identify options for mitigation
measures, if any. Upon completion of the necessary studies, the Parties
will each review the study results and discuss any recommendations for
avoidance and/or mitigation of Adverse Impacts.
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8.2.2. Mitigation and Costs: Unless otherwise agreed by the Parties, the
Party whose proposal or action causes the Significant Operational Change
(modifying Party) shall be responsible for compensating the other Party
(affected Party) for the reasonable cost, if any, of mitigating any Adverse
Impact on the affected Party's Electric Power System caused by the
change; provided, that such costs may alternatively be paid by a
responsible Third Party. Any reasonable cost incurred by the affected
Party, in its cooperation with the modifying Party, shall be reimbursed by
the modifying Party. All avoidance or mitigation measures shall be
completed and any compensation due to the affected Party shall be
agreed upon before the Significant Operational Change is made; provided
that if the Significant Operational Change is caused by a Third Party, the
allocation of costs of any Adverse Impacts shall be agreed upon by the
Parties.
8.2.3. A Party exercising its contractual or legal rights to terminate the
Contract will not cause a Significant Operational Change.
8.3. Significant Regulatory Changes: If, in accordance with Section 8.1, a
Party receiving notice from the other Party of a Significant Regulatory Change
believes that the proposed change may reasonably be expected to affect its
performance under this Contract, either Party may propose modifications to this
Contract. However, the modifications cannot be any broader than the scope that
is reasonably necessary to address the issues raised by the Significant
Regulatory Change. After receiving notice of a proposed Significant Regulatory
Change, the Parties shall promptly meet and attempt to negotiate any necessary
modifications. If the Parties are unable to negotiate any modifications, WAPA
may take the necessary steps to implement the actions necessitated as a result
of the Significant Regulatory Change. In the event WAPA incurs any costs
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associated with a Significant Regulatory Change or the implementation thereof,
WAPA will charge Redding its share of such additional costs, as determined by
WAPA, after consultation with Redding, and Redding shall pay such charges to
the extent not covered by a then -current rate schedule.
9. PLANNING STANDARD:
Each Party shall plan independently to meet its own load, reserves, and contingencies
through advance resource and transmission planning, construction of generating
resources and transmission resources, and power purchases. In so planning, the
Parties shall be obligated under this Contract to utilize a planning standard at least
equal to NERC reliability standards and WECC regional criteria, as may be revised,
amended, or superseded from time to time.
10. OPERATIONS:
WAPA complies with the operating standards, including the reliability standards, of
FERC, NERC and WECC for the registered functions associated with its transmission
system. WAPA also complies with NERC and WECC standards associated to a
Balancing Authority, under contract with the host Balancing Authority Operator, as a
Sub -Balancing Authority. Redding, as an independent interconnected utility operating
within WAPA's Sub -Balancing Authority Area, agrees and shall be obligated to abide by
the operating standards and requirements of FERC, NERC and WECC, or WAPA acting
as the Sub -Balancing Authority Operator, and the requirements set forth expressly in
this Section 10, as these standards and requirements may be modified from time to
time, and to provide the necessary information to ensure that WAPA can carry out its
responsibilities as Sub -Balancing Authority Operator. WAPA will similarly be obligated
to provide Redding the information necessary to ensure that Redding can maintain
compliance with applicable reliability standards.
Contract 23 -SNR -02969
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10.1. Redding shall maintain or otherwise provide for Reserves at all times
equal to Redding's share of Contingency Reserves required and calculated in
accordance with Exhibit C, made a part hereof.
10.1.1. All Reserves required to be provided by Redding to meet the
requirements of Exhibit C hereof shall be scheduled by Redding with
WAPA, in accordance with Exhibit B hereto. WAPA will include Redding's
scheduled Reserves in calculating the Reserves available for the Sub -
Balancing Authority Area. WAPA may call on Operating Reserves carried
by Redding to respond to Emergency situations as determined by WAPA
dispatchers.
10.1.2. In addition to the ability to purchase Reserves under the WAPA
Open Access Transmission Tariff, Redding may purchase and import
Frequency Response Reserve/Spinning Reserve and Non -Spinning
Reserve from any entity within the BANC Balancing Authority Area or from
a Balancing Authority Area adjacent to the BANC Balancing Authority
Area to meet its Operating Reserve requirement. Redding will be
responsible for the acquisition of transmission service either from WAPA
or a Third Party sufficient to ensure the availability and delivery of
Reserves. If Redding purchases Reserves from any other entity on its
behalf, Redding is responsible for scheduling and communicating such
arrangement with WAPA. Redding may also import Reserves from
Balancing Authorities not adjacent to the BANC Balancing Authority if the
practices of the BANC Balancing Authority allow for Reserve purchase
and import from other non -adjacent Balancing Authorities.
10.1.3. If, at anytime, the Reserves provided by Redding fall below
Redding's Operating Reserve requirement and has not been dispatched to
cover an urgent situation, Redding shall take immediate action to restore
its Operating Reserve within ten (10) minutes to meet the Operating
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Reserve requirement. In the event Redding takes such action and,
despite its best efforts, is unable to eliminate the deficiency in its
Operating Reserve, such deficiency shall be deemed to have been
supplied and purchased as Operating Reserve from WAPA. Such
purchase shall be made for all hourly scheduling periods and portions
thereof in which the deficiency in either Frequency Response Reserves,
Spinning Reserve or Non -Spinning Reserve occurred. For example, if
such deficiency occurs within an hourly scheduling period and is restored
within the next hourly scheduling period, the purchase will be deemed to
be made for two hourly scheduling periods. Redding shall pay for its
deficiency in accordance with the rates, calculated for hourly periods, set
forth in the Schedules of Rates posted by WAPA on WAPA's OASIS.
10.1.4. If (1) WAPA's obligations change for providing Operating Reserve
for the Sub -Balancing Authority because of actions taken by the host
Balancing Authority, FERC, WECC or NERC, and (2) such changed
obligations justify a revision to the Operating Reserve requirement or
requirement for additional Operating Reserves, WAPA shall revise the
Parties' obligations pursuant to Exhibit C, so as to maintain Redding's
share of the changed obligations. WAPA shall notify Redding of any such
revisions and the Parties shall have an opportunity to discuss the revisions
before implementing them.
10.2. The Parties shall coordinate Scheduled Maintenance as required by this
Section 10.2.
10.2.1. The Parties agree that each Party will make best efforts to
schedule maintenance on generating units for times of the year when the
units are not necessary to meet that Party's Electric Power System load
and firm power sales. Redding will submit outages in accordance with
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Contract 23 -SNR -02969
WAPA's operating procedures in advance of the date specified for the
particular maintenance outage to WAPA and shall notify WAPA of any
schedule adjustments when they become known.
10.2.2. Each Party shall (1) notify the other Party based on the outage
coordination timeline cited in WAPA Operating Procedure before
beginning any Scheduled Maintenance of its facilities that may materially
affect the other Party's Electric Power System, and (2) notify the other
Party and obtain that Party's concurrence based on the outage
coordination timeline cited in WAPA Operating Procedure, before
beginning any Scheduled Maintenance of its facilities that are directly
interconnected with the other Party's Electric Power System; provided,
however, that a Party may withhold concurrence only to the extent that
Party is experiencing unusual operating conditions on its Electric Power
System and, in that event, that Party will agree on an appropriate date and
time to reschedule such Scheduled Maintenance.
10.3. Redding shall schedule its resources to meet its load, including sales to
Third Parties, on a real-time basis, in accordance with the requirements and
procedures described in Exhibit B hereto. WAPA may modify these procedures
at any time and shall notify Redding of the changed procedure at least thirty (30)
days in advance of their scheduled implementation; provided, however, that any
such modification(s) shall be nondiscriminatory, and consistent with Good Utility
Practice. For purposes of this Section 10.3, the term "procedures" shall include,
but shall not be limited to, the time for submitting pre -schedules and the date of
the monthly forecast. For accounting purposes under this Contract, the hourly
metered amounts shall be the algebraic sum (net) of the hourly metered amounts
at each POI between Redding and WAPA and Redding and Third Parties.
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10.4. WAPA requires specific operating data pertinent to operation of the Sub -
Balancing Authority Area. Redding shall, at its own expense, provide such data
to WAPA by owning, installing, and maintaining telemetering equipment at its
generation resources and Points of Interconnection with WAPA and Third Parties
to measure power and reactive flows between Redding's Electric Power System
and WAPA and between Redding's Electric Power System and Third Parties,
and such other data as may be agreed upon. Redding shall telemeter data from
these resources and points to WAPA's SOC, unless otherwise agreed. Further,
if Redding owns such meters at the time meters are tested, WAPA shall be
notified of the time and place for such test and shall be afforded the opportunity
to witness such test. Redding shall provide documentation that its telemetering
equipment is accurate within one quarter (1/4) of one (1) percent.
10.5. Each Party shall take immediate action to relieve or remedy an
Emergency. Each Party shall notify the other Party's schedulers or dispatchers
immediately following an Emergency or Forced Outage of key facilities in
accordance with the following:
10.5.1. Key facilities are generating resources that are considered
important to interconnected operations by the Electric Power System that
owns the facilities. Key facilities generally include:
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Contract 23 -SNR -02969
10.5.1.1. An interconnection between Balancing Authorities.
10.5.1.2. Transmission operated at 100 kV and higher that can
significantly affect inter- and intra -Balancing Authority operation.
10.5.1.3. Transmission from generating resources.
10.5.1.4. Generating equipment greater than Redding's
deviation band.
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10.5.2. Redding shall notify WAPA's SOC immediately, but in no case
later than ten (10) minutes, following an Emergency or Forced Outage on
a Redding key facility. WAPA shall notify Redding's point of contact within
ten (10) minutes following a Forced Outage on a WAPA key facility that
WAPA determines, in its sole judgment, will materially affect Redding's
Electric Power System. Such notification of an Emergency or Forced
Outage of a key facility shall include information regarding generator name
or line terminal names, outage starting time, expected outage duration and
reason for the outage. Forced Outages of equipment associated with key
transmission circuits (capacitors, reactors, transformers, etc.) shall be
reported in the same manner as key transmission circuits, if the outage
significantly and materially affects the operation of the key transmission
circuit.
10.5.3. If Redding experiences an Emergency or Forced Outage,
Redding shall, at the time of notification to WAPA, use its best efforts to
adjust its resources as necessary to balance loads and resources within
the current hour. In addition, Redding shall continually keep the SOC
appraised of the status of the Emergency and of corrective actions taken
and planned.
10.5.4. Each Party shall promptly report to the other Party's dispatchers
or schedulers significant operating events that may materially affect the
other Party's Electric Power System or its operations. Significant
operating events to be reported shall include, but not be limited to, any of
the following events that may materially affect the other Party's Electric
Power System or operations:
Contract 23 -SNR -02969
10.5.4.1. Paralleling or separating the Parties' Electric Power
Systems;
10.5.4.2. Paralleling or separating a Party's generating unit;
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10.5.4.3. Failure of a Party's generating unit to start;
10.5.4.4. Scheduled or unscheduled shutdown or equipment
clearance on transmission switches, breakers, transformers or
any other electrical equipment associated with a key facility; and
10.5.4.5. Opening of connections between Redding's
substations. Each Party shall keep the other Party's dispatchers
or schedulers apprised of the status of the significant operating
event and of the corrective actions taken and planned, if
applicable.
10.5.5. Redding shall notify WAPA's SOC as soon as Redding
determines a limitation of its resources available to meet load. Redding's
notification shall include the duration and nature of such limitation.
Redding shall continually keep WAPA's SOC appraised of the status of
the resource limitation and of the corrective actions taken and planned.
10.6. The goal of each Party is to minimize deviations between its own loads
and resources. In keeping with this goal, Redding shall have an affirmative
obligation to follow its DOT within each five (5) minute interval to minimize
deviations within each five (5) minute interval. Redding's net deviations within
each five (5) minute interval, including Redding's EIM participation, shall be
accounted for in accordance with this Section 10.6.
10.6.1. During periods when WAPA and Redding are participating in
EIM, deviations will be calculated in five (5) minute intervals. The method
for determining Redding's net deviation per five (5) minute interval is as
follows:
Contract 23 -SNR -02969
10.6.1.1. Redding's deviation is calculated for each five (5)
minute interval as the algebraic sum of the delta between the
EIM load forecast and metered load, and the delta between the
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generation DOTs and metered generation. The formula method
for determining Redding's net deviation over each five (5) minute
interval shall be as follows:
DEVIATIONS -minute (MW) _ (LFEiM minus F -LA) plus
(7 -Gena minus DOT)
Where:
- LFEiM is EIM Load Forecast value for the 5 -minute
interval;
- 7LA is the average actual load for the 5 -minute
interval;
- ZGena is the average actual total generation for the
5 -minute interval; and,
- MOT is the sum of Redding's DOTs for the 5 -
minute interval.
In the above calculation, a negative value indicates
under -generation by Redding's Electric Power
System, and a positive value indicates over -
generation by Redding's Electric Power System.
10.6.1.2. When EIM is not providing imbalance services,
deviations occur over the scheduling hour when the net of
Redding's schedules at Redding's POls with WAPA's system do
not match the net of Redding's power flows at Redding's POls
for the same hour. When EIM is not providing imbalance
services, the formula method for determining Redding's net
deviation over an integrated one-hour scheduling period shall be
as follows:
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DEVIATION (MWh) = (F-POIA) minus (7POls)
Where:
- 7-POIA is the net of all POI actual metered
inflows plus actual metered outflows for the hour;
and,
- 7POIs is the net of all POI scheduled imports
plus scheduled exports for the hour.
- In the above calculation, a negative value
indicates under -generation by Redding's Electric
Power System, and a positive value indicates
over -generation by Redding's Electric Power
System.
10.6.2. Redding's Maximum Deviation Band shall, unless otherwise
agreed, be calculated according to Exhibit D and shall apply to each five
(5) minute interval when EIM is providing imbalance services and over
each integrated hour when EIM is not providing imbalance services.
Redding shall pay for the Maximum Deviation Band elected under
WAPA's then -effective Schedule of Rate for Regulation and Frequency
Response Service and such purchase shall fulfill Redding's regulation
requirements.
10.6.2.1. If, for any applicable interval, Redding's deviation is
positive (over -generation) or negative (under -generation) and
exceeds the Maximum Deviation Band, Redding shall take steps
to reduce the deviation to an amount within the Maximum
Deviation Band as soon as possible by ensuring generation is
following the DOT(s) and by taking steps to correct EIM load
forecast errors, as applicable.
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10.6.3. After the fact, WAPA shall calculate and provide the data used to
calculate the deviations to Redding for each five (5) minute interval of the
10.6.4. For hours when EIM is providing imbalance services, Redding
and WAPA agree to settle deviations financially as follows:
10.6.4.1. For deviations within the Maximum Deviation Band,
both positive and negative, there will be no financial settlement
between WAPA and Redding. Redding agrees to settle the
energy with MO or EIM Entity for EIM UIE.
10.6.4.2. For positive deviations above the Maximum Deviation
Band (over -generation), Redding agrees to settle the energy with
MO for EIM UIE.
10.6.4.3. For negative deviations below the Maximum
Deviation Band (under -generation), Redding agrees the amount
of negative deviation energy in excess of the Maximum Deviation
Band shall be subject to a penalty payable to WAPA equal to fifty
(50) percent of the greater of the Central Valley Project (CVP)
generation actual cost or the Day -Ahead LMP of CVP generation
pursuant to the CAISO/WAPA Market Efficiency Enhancement
Agreement Day -Ahead LMP or the Day -Ahead LMP at the CVP
generation aggregated Pnode after MESA expires for the
deviation energy that exceeds the Maximum Deviation Band as
provided for in the then -active Schedule of Rate for Energy
Imbalance Market Energy Imbalance Service and Schedule of
Rate for Energy Imbalance Market Generator Imbalance Service.
10.6.5. For hours when EIM is not providing imbalance services, WAPA
and Redding agree to settle the energy for all deviations financially in
accordance with the then -effective Schedule of Rate for Energy Imbalance
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Service and Schedule of Rate for Generator Imbalance Service, or any
superseding rate schedules.
10.6.5.1. For negative deviations below the Maximum Deviation
Band (under -generation), Redding agrees the amount of
negative deviation energy in excess of the Maximum Deviation
Band shall be subject to a penalty payable to WAPA equal to 50
percent of the greater of the CVP generation actual cost or the
Day -Ahead LMP of CVP generation per CAISO/WAPA Market
Efficiency Enhancement Agreement or the Day -Ahead LMP at
CVP generation aggregated Pnode after MESA expires for the
deviation energy that exceeds the Maximum Deviation Band.
10.6.6. If Redding experiences an Emergency or unexpected loss or
interruption of generating or transmission facilities that results in a net
negative (under -generation) deviation in excess of the Maximum Deviation
Band, Redding shall, within ten (10) minutes of that loss or interruption,
notify WAPA regarding necessary changes to Redding's schedules.
Redding will not be subject to the under -generation deviation penalty such
as that cited in Paragraphs 10.6.4.3 or 10.6.5.1 or similarly in the
applicable Schedule of Rate, if the Emergency or unexpected loss is
reported within ten (10) minutes.
10.7. Each Party shall use its best efforts to minimize the net reactive power
flow between the Parties' Electric Power Systems measured at the POI, unless
otherwise agreed. To meet this obligation, each Party shall install and operate
the necessary facilities on its own Electric Power System at its own expense to
monitor and control its reactive power flow. Redding shall use best efforts to
follow the area voltage schedules implemented by WAPA specific to each POI,
as those schedules may be revised from time to time by WAPA.
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10.8. Programs for manual load shedding and rotating interruptions of Redding
load are essential for reliable utility operation. The requirements and standards
contained in this Section 10.8 represent Good Utility Practice, are required by
FERC, NERC and WECC standards, and are mutual for both Parties.
10.8.1. Redding shall cooperate with WAPA to develop and implement,
as necessary, plans for manual load shedding, voluntary and mandatory,
consistent with both of the following: (1) plans for load shedding observed
in the Balancing Authority; and (2) regulations and orders of regulatory or
other agencies having jurisdiction over such matters. Such plans shall
include provisions for cases of sudden emergency loss of an energy
resource of sufficient size or capacity to require interruption of service to
non -interruptible utility customers such as failure of certain generation or
transmission facilities.
10.8.2. If, at any time, the load requirements of WAPA's Sub -Balancing
Authority exceed the power sources available to the Sub -Balancing
Authority to meet such load requirements and the Balancing Authority is
unable to help the situation, the Parties shall implement load shedding, so
as to maintain bulk electric system reliability, as far as practicable, with
due consideration for the requirements of public health and safety. Load
shedding amounts will be based upon annually calculated load shed share
calculated using each entity's previous year's peak load and documented
in WAPA operating procedures, unless required otherwise by
circumstances beyond the control of the Parties. When manual load
shedding or rotating interruptions are necessary, WAPA's SOC shall notify
Redding's dispatchers of the required action in the form of an Operating
Instruction, and Redding shall comply immediately. WAPA shall not
initiate load shedding for economic reasons or for lack of sufficient energy
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supply by another customer of WAPA to meet the load of such other
customer of WAPA.
10.9. WAPA may temporarily separate all or any part of the facilities of its
Electric Power System from all or any part of Redding's Electric Power System if
WAPA determines at any time that the following conditions exist or that the
described action is necessary: (1) in case of an Emergency that directly affects
WAPA's ability to provide power to Redding; (2) to prevent a hazard to life or
property; or (3) when the operation of WAPA's Electric Power System is
suspended, interrupted or interfered with as a result of an Uncontrollable Force.
In that event, WAPA's SOC shall notify Redding's dispatchers or schedulers if
Redding's action is required, and Redding shall comply immediately. Service so
interrupted or interfered with shall be restored as soon as practicable. WAPA
shall contact Redding's schedulers or dispatchers to review changes to
Redding's schedules and coordinate plans to restore service or parallel facilities.
10.10. All interruptions of service or separation of the Electric Power Systems of
the Parties, other than those expressly described in Sections 10.8 and 10.9
hereof, shall be made as mutually scheduled by the Parties.
10.11. The Parties have installed automatic devices to assist in maintaining the
integrity and reliability of their respective Electric Power Systems and to protect
their customers from damage, injury, or prolonged outages. Service under this
Contract is subject to interruption in the event of the operation of such devices.
Service interrupted or reduced as a result of the operation of such devices shall
be restored at the earliest possible time. If (1) automatic protective devices on
WAPA's Electric Power System operate, (2) Redding's service from WAPA is
reduced as a result of that operation, and (3) Redding provides energy to WAPA
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at that time, the following shall apply:
10.11.1. Redding shall be obligated to adjust its operations during the
hourly scheduling period in which the event occurred to prevent energy
deliveries to WAPA, unless WAPA requests such energy from Redding;
Me!
10.11.2. If so requested by WAPA, the energy delivered by Redding to
WAPA within that first hourly scheduling period in excess of Redding's
Maximum Deviation Band shall, at Redding's option, either be paid for by
WAPA under a separate agreement, or returned by WAPA during a like
time period or at a time mutually acceptable to the Parties.
10.12. In the event WAPA incurs additional charges for the performance of this
Contract, WAPA shall meet and confer with Redding to determine the allocation
of such charges. WAPA will charge Redding its reasonable share, as
determined by WAPA, and Redding shall pay such charges, to the extent such
charges are not covered in an existing rate schedule.
11. METERING:
Power delivered to Redding through its interconnections with WAPA and Third Parties
shall be measured by suitable electric meters installed at the Points of Interconnection
and at Redding's generating resources directly connected or proposed to be directly
connected to WAPA's Electric Power System in accordance with the provisions of the
Contract for Interconnection and the terms herein.
11.1. Except for meters owned by WAPA and Third Parties, Redding shall
provide, install, own, operate, and maintain meters, backup meters and
associated equipment at each Point of Interconnection and generating resource,
unless otherwise agreed.
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11.2. Metering equipment located at Points of Interconnection shall measure
and record real and reactive power flow in both directions.
11.3. Redding's metering equipment for its generating resources shall measure
and record both net real and reactive power generated.
11.4. Such "in" and "out" meters specified under Section 11.2 and 11.3 hereof
shall be designed to prevent reverse registration and measure and record
continuously deliveries of kilowatts, kilovars, and, if required, line loss.
11.5. Redding shall provide written notice to WAPA and other interconnected
parties if it intends to have the meters specified in this Section 11 replaced,
except in the case of equipment failure. In the case of equipment failure, when
mutually agreed, oral notification may be deemed to fulfill the notification
requirements.
11.6. All meters shall be sealed and the seals shall be broken only upon
occasions when the meters are to be inspected, tested, or adjusted.
11.7. Measurement of power deliveries at Points of Interconnection and
generating resources shall be made at the high voltage bus (net of station uses),
unless otherwise agreed by the Parties.
11.8. Solid state meters shall be inspected and tested by the owner at least
once every thirty (30) months, all other meters shall be inspected and tested at
least once each year, and at any reasonable time upon request of the other
Party. Representatives of the other Party shall be afforded the opportunity to be
present on such occasions.
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11.9. Any metering equipment found to be defective or inaccurate shall be
repaired, adjusted, or replaced. Should any meter fail to register, the demand
created and energy delivered hereunder during such period of failure to register
shall be replaced with those recorded by the backup meters in the corresponding
period, or if the backup meters also fail to register, demand created and energy
delivered should be estimated by the Parties and appropriate Third Parties from
the best information available.
11.10. Meters found to be inaccurate by one (1) percent or more shall be
immediately repaired, adjusted, or replaced. Adjustment shall be made to
compensate for the effect of the inaccuracy. Such adjustment shall be made to
correct all measurement made by the inaccurate meter for: (1) the actual period
during which inaccurate measurements were made, if that period can be
determined; or if not, (2) the period immediately preceding the test from the date
of the last previous test of the meter, unless provided differently in other written
contracts and agreements between the Parties.
11.11. Corrections in billing resulting from inaccurate meters shall be made as
soon as possible. Such correction, when made, shall constitute full adjustment of
any claim between the Parties arising out of such inaccuracy of meters.
11.12. Representatives present at the meter tests shall use best efforts to
estimate the amount of capacity and energy created during the meter test.
Demand and energy so created shall be adjusted from the meter registration
accordingly.
11.13. The owner of the meters shall be responsible for the reading of the
meters, which shall be done on the first Business Day of each calendar month,
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and at such other times as may be required to carry out the provision of this
Contract.
11.14. WAPA assumes no liabilities for any claims, demands, cost, losses,
causes of action, damages, or liability of whatsoever kind associated with or
arising out of or resulting from Redding's use of WAPA meter data obtained
either directly from the meter (Remote Interrogation via Meter Data Management
System) or indirectly by downloading such data via Secured File Transfer
Protocol. Redding agrees to indemnify and hold harmless WAPA, its employees
or agents, from any claims, demands, costs, losses, causes of action, damages,
or liability of whatsoever kind associated with or arising out of or resulting from
Redding's use of WAPA meter data.
12. BILLING AND PAYMENT:
WAPA may collect in advance, by billing on or before the fifteenth (15th) day of the
preceding month, for charges associated with the Maximum Deviation Band for the
following month. Charges for other services rendered or costs incurred during the
preceding month shall be billed to Redding on or after the last day of each month.
Charges shall be separately itemized. Sufficient supporting information and
documentation to establish the basis for and appropriateness of each charge in the bill
shall accompany each bill submitted. Any claim by Redding that WAPA has not
provided sufficient information and documentation shall not relieve Redding of its
obligations under this Contract.
12.1. If charges cannot be determined accurately for preparing a bill under this
Contract, WAPA may use its best estimates in preparing the bill. All estimated
charges shall be labeled as such, and WAPA shall document the basis for the
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estimate used. Estimated billings shall be prepared and paid in the same
manner as other billings under this Contract.
12.2. When final and complete billing information becomes available and
charges can be determined accurately, WAPA will prepare and submit an
adjusted bill to Redding. Additional payments by Redding shall be made in
accordance with the payment provisions of this Section 12. At WAPA's
discretion, refunds by WAPA may be a payment to Redding or appear as a credit
on the next monthly bill(s) to Redding.
12.3. All payments for services provided pursuant to this Contract shall be made
directly to WAPA unless otherwise agreed to and arranged for by the Parties.
Redding's payments of its obligations arising under this Contract are not subject
to any reduction, whether by offset, payments into escrow, or otherwise as a
result of: (1) a dispute between Redding and WAPA; (2) a dispute between
Redding and a Third Party, or (3) the rights and obligations of WAPA and
Redding under any separate agreement between them.
12.4. Payments of any bills to WAPA are due and payable by Redding before
the close of business ten (10) calendar days after the date of issuance of each
bill or the next Business Day thereafter if said day is not a Business Day.
Payments should be sent by Redding to WAPA at the address contained in
Exhibit E.
12.5. Bills or portions of bills that are not paid in full on or before the payment
due date shall thereafter accrue a late charge calculated in accordance with
WAPA's General Power Contract Provisions then in effect.
Contract 23 -SNR -02969
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12.6. If any portion of a bill is disputed, Redding shall pay the full amount and,
on or before the payment due date notify WAPA in writing of the amount in
dispute and the specific basis for the dispute. Within thirty (30) days of WAPA's
receipt of Redding's notice of a dispute (or such extended period as the Parties
may agree upon), the Parties shall attempt to agree on any adjustments that may
be appropriate to the disputed portion of the bill, including any refund.
12.7. Redding shall pay for the service furnished hereunder in accordance with
the rates, charges, and conditions set forth in the CVP Schedule of Rate for
Regulation and Frequency Response Service, Schedule of Rate for Energy
Imbalance Service, Schedule of Rate for Generator Imbalance Service, Schedule
of Rate for Energy Imbalance Market Energy Imbalance Service, and/or
Schedule of Rate for Energy Imbalance Market Generator Imbalance Service,
effective October 1, 2024, or any superseding rate schedule.
12.8. Redding shall be obligated to pay any costs incurred by WAPA under EIM
due to Redding's operations that are not otherwise settled by Redding directly
with MO or EIM Entity.
12.9. The Parties expect each IOA Customer will settle, with the MO or EIM
Entity, all imbalance charges associated with its loads and resources within
WAPA's Sub -Balancing Authority Area. If WAPA is assigned any imbalance
charges (including penalties) associated with any IOA Customer's loads or
resources, WAPA will pass through such charges to the responsible IOA
Customer. WAPA will pass through the charges in the same manner as such
charges are assigned to WAPA. If WAPA is unable to determine how to pass
through such charges, the Parties will meet in an attempt to determine a fair
allocation of such charges between the IOA Customers. If the Parties are unable
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to reach a resolution, after considering the IOA Customers' input, WAPA will
decide the allocation. After a decision is made by WAPA staff, if Redding is not
satisfied with the decision, Redding shall have fifteen (15) days from the date of
WAPA's decision to appeal the change to WAPA's Senior Vice President and
Sierra Nevada Regional Manager. WAPA should not incur any costs due to
Redding's participation in EIM or due to Redding's use of the Deviation Band.
13. SEVERABILITY:
In the event that any material term, covenant, or condition of this Contract, or the
application of such material term, covenant or condition, shall be held invalid as to any
person or circumstance by any court having jurisdiction, the Parties shall have ninety
(90) days, or such other time as agreed by the Parties, to negotiate provisions which
restore the benefits and burdens of this Contract between the Parties. If the Parties fail
to agree on such provisions, this Contract shall terminate and be of no further force or
effect; except that obligations to pay for service rendered hereunder shall remain until
satisfied.
14. MODIFICATION OF THIS CONTRACT:
Except as provided herein, neither this Contract nor any term, covenant, or condition
hereof may be terminated, amended, supplemented, waived, or modified except by an
instrument in writing, mutually agreed to and executed by each Party.
15. EXHIBITS:
The initial Exhibits A, B, C, D, and E are attached hereto, made a part hereof and shall
be in full force and effect in accordance with their respective terms until superseded by
a subsequent Exhibit(s). The Exhibit(s) may be modified from time to time, in
accordance with this Contract.
Contract 23 -SNR -02969
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16. RECORDS AND AUDITS:
Each Party shall maintain appropriate records and supporting documentation applicable
to the provisions of this Contract. Such records and supporting documentation shall be
retained for at least three (3) years after the close of the calendar year. Upon written
request and reasonable notice, each Party agrees to provide to the other Party access
to such records and supporting documentation for review and inspection. The records
and supporting documentation may be inspected and copied, at the requesting Party's
expense, any time during regular office hours. Any exceptions noted in any audit
process will be forwarded to the audited Party for review and response. The audited
Party agrees to respond within sixty (60) days after receipt of any such exception. Any
adjustments to records and supporting documentation as a result of an agreed audit
exception shall be made for the period to which such exception applies.
17. RELATIONSHIP OF THE PARTIES:
Except to the extent otherwise provided herein, the covenants, obligations and liabilities
of the Parties are intended to be several and not joint or collective, and nothing herein
contained shall ever be construed to create an association, joint venture, trust or
partnership, or to impose a trust or partnership covenant, obligation or liability on or with
regard to any one or more of the Parties. Each Party shall be responsible for its own
covenants, obligations and liabilities as herein provided. No Party shall be under the
control of or shall be deemed to control the other Party. No Party shall be the agent of
or have a right or power to bind the other Party without its express written consent,
except as expressly provided in this Contract. Except as provided herein, no provision
of this Contract is intended to, or shall be for the benefit of, or construed to create rights
in, or grant remedies to, any person or entity not a Party hereto.
The Parties do not intend to dedicate and nothing in this Contract shall be construed as
Contract 23 -SNR -02969
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constituting a dedication by either Party of its properties or facilities, or any part thereof,
to the other Party or to the customers of either Party.
19. GOVERNING LAW:
This Contract shall be interpreted, governed by and construed under the laws of the
State of California or the laws of the United States, as applicable, as if executed and to
be performed wholly within the State of California.
20. DEFAULT:
The failure of either Party to perform any of its material obligations under this Contract
shall constitute a default under this Contract. If either Party defaults under this
Contract, the other Party may terminate this Contract; provided that prior to such
termination the other Party must provide the defaulting Party with written notice stating:
1) the Party's intent to terminate; 2) the date of such intended termination; 3) the
specific grounds for termination; 4) specific actions which the defaulting Party must take
to cure the default, if any; and 5) a reasonable period of time, which shall not be less
than sixty (60) calendar days, within which the defaulting Party may take action to cure
the default and avoid termination, provided there is any action which can be taken to
cure the default.
21. NOTICES:
Any notice, demand, or request required by this Contract to be given in writing to either
Party shall be considered properly given when delivered in person, or sent by either
registered or certified mail, postage prepaid, or prepaid telegram addressed to the
person and the address set forth in Exhibit E attached hereto. Any Party may change
the designation of the person or the address to which such notices are to be sent by
notice in writing to the other Party given in accordance with the foregoing provisions.
Contract 23 -SNR -02969
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22. DISPUTE RESOLUTION:
Any dispute arising between the Parties regarding their rights or the performance of
their obligations under this Contract shall be resolved according to the following
procedures. This section does not create any rights to modify or amend this Contract.
22.1. Informal Settlement Procedure. The Parties shall attempt in good faith to
resolve any dispute arising out of or relating to this Contract promptly by
negotiations between Redding's General Manager or his or her designated
representative and an executive of similar authority of WAPA. Either Party may
give the other Party written notice of any dispute and, within twenty (20) calendar
days after delivery of such notice, the executives shall meet at a mutually
acceptable time and place and thereafter as often as they reasonably deem
necessary, but at least weekly, to exchange information and to attempt to resolve
the dispute. If the matter has not been resolved within sixty (60) calendar days of
the first meeting, either Party may initiate a mediation of the controversy or may
initiate formal dispute resolution under Section 22.2.
22.2. Formal Settlement Procedure. In the absence of a voluntary resolution
reached in accordance with Section 22.1, either Party may seek to resolve a
dispute by seeking judicial relief. The Party, with the written consent of the other
Party, in the alternative may submit the dispute to non-binding arbitration which
shall be conducted using any procedures agreed to by the Parties. No litigation
or arbitration shall be commenced until not less than twenty (20) calendar days
after notice of the initiation of proceedings has been provided to both Parties;
Provided, however, that the preceding requirement shall not preclude a Party
from initiating litigation or arbitration to secure any legal right which may
otherwise be forfeited due to limitation or requirements imposed by rule or
statute.
III
Contract 23 -SNR -02969
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Contract 23 -SNR -02969
23. GENERAL POWER CONTRACT PROVISIONS:
The General Power Contract Provisions (GPCP), dated September 1, 2007, as they
may apply, are attached hereto, and are hereby made a part of this Contract the same
as if they had been expressly set forth herein; Provided that Provisions 5, 6, 7, 8, 9, 12,
15, 16, 17, 18, 19, 20, 21, and 22 shall not apply to this Contract.
24. AUTHORITY TO EXECUTE:
Each individual signing this Contract certifies that the Party represented has duly
authorized such individual to execute this Contract which binds and obligates the Party.
25. EXECUTION BY COUNTERPARTS:
Contract may be executed in any number of counterparts and, upon execution and
delivery by each Party, the executed and delivered counterparts together shall have the
same force and effect as an original instrument as if all Parties had signed the same
instrument. Any signature page of this Contract may be detached from any counterpart
of this Contract without impairing the legal effect of any signatures thereon and may be
attached to another counterpart of this Contract identical in form hereto, by having
attached to it one or more signature pages.
26. ELECTRONIC SIGNATURES:
The Parties agree that this Contract may be executed by handwritten signature or
digitally signed using Adobe Sign or DocuSign. An electronic or digital signature is the
same as a handwritten signature and shall be considered valid and acceptable.
III
Contract 23 -SNR -02969
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IN WITNESS WHEREOF, WAPA and Redding have caused this Contract to be
executed as of the date first written above.
(Attest)
By:
Title:
Contract 23 -SNR -02969
By:
Bryan W. Griess
Title: Vice President and Manager
Of Operations for Sierra Nevada Region
For Sierra Nevada Region
Address:— 114 Parkshore Drive
Folsom. CA 95630
CITY OF REDDING
By:
Name:
Title:
Address
go]
City of Redding
Exhibit A to
Contract 23 -SNR -02969
EXHIBIT A
Redding Net Interchange Determination
1. This Exhibit A, to be effective under and as a part of Contract 23 -SNR -02969
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit A or termination of the Contract.
2. This Exhibit A applies to net interchange accounting required to calculate Redding's
deviations in accordance with this Contract. This Exhibit A may be changed by
agreement of the Parties to reflect Redding's Electric Power System changes, addition
or deletion of Points of Interconnection, metering changes, or such other modifications
to Redding or WAPA Electric Power Systems that require a modification to this Exhibit
A. To determine Redding's System Net Interchange, including both demand and
energy, it is necessary to add algebraically the various metered inflows of power to and
outflows of power from Redding's Points of Interconnection.
3. Hourly Net Interchange Determination:
Redding's Net Interchange shall be determined for any hour by algebraically summing
the following metered deliveries to and from Redding, adjusted for losses using the
applicable loss factors from Section 5, net of adjustments in Section 4. Net Interchange
demand and energy for any hour shall be the algebraic sum of the following metered
Points of Interconnection:
• Airport -East Redding #1
• Airport -East Redding #2
• Airport -Airport Redding 11 5k line
• Beltline-Keswick
• Keswick -Eureka
• Whiskeytown
The Net Interchange energy for any month shall be the sum of the hourly measured
quantities so determined from the Points of Interconnection.
4. Adiustments to Reddina Net Interchanae:
Redding Net Interchange as determined in Section 3 shall be adjusted to reflect
Redding's power deliveries to Redding's customers outside of its system. Presently,
these customers are:
• Redding has no such customers.
City of Redding
Exhibit A to
Contract 23 -SNR -02969
Loss factors from Section 5 of this Exhibit A shall be applied to the above customer
loads to reflect losses from Redding's system to the loads.
5. Loss Factors:
Loss and transmission adjustment factors to be multiplied by Redding scheduled
quantities at Points of Interconnection and for load specified in Section 4 are as follows:
• Base Resource Allocation Delivery Loss Factor = 0%
• Redding Imports/Exports over CVP Transmission = 1.6%
• Transformation Losses, if any
Losses shall be settled with WAPA in accordance with its business practices.
6. Existing Meters:
The table below provides a list of the meters currently in place to monitor Redding's Net
Interchange and implement the net interchange accounting specified in this Exhibit A.
WAPA shall revise Table A -I to correspond with any additions or deletions to the list of
meters pursuant to this Contract.
Listing of Meters Used to Determine Net Interchange
Airport E Redding Line 1
Airport E Redding Line 2
Airport -Airport
Keswick-Beltline
Keswick -Eureka
Whiskeytown
City of Redding
Exhibit B to
Contract 23 -SNR -02969
EXHIBIT B
Scheduling Procedures
1. This Exhibit B, to be effective under and as a part of Contract 23 -SNR -02969
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit B or termination of the Contract.
2. General:
Redding shall separately schedule power deliveries to its Electric Power System, to
loads outside Redding's Electric Power System but within WAPA's Sub -Balancing
Authority Area, and to loads outside WAPA's Sub -Balancing Authority Area. Redding
shall schedule generation from each of its generating resources with WAPA in a form
and format to be agreed upon. Redding may change its generating resources as
necessary to meet its load. Redding's hourly schedules at the Points of Interconnection
and to loads outside of Redding's Electric Power System shall be in whole megawatts
and be transmitted by NERC E -tag and any changes confirmed by voice communication
to WAPA's Energy Control Center. In the event of a failure of the data link, Redding
shall send data to WAPA by electronic mail or use any other agreed upon method of
data transfers. All losses shall be accounted for pursuant to Exhibit A hereto; provided,
however, that separate loss factors may be specified for services provided under
separate agreements but scheduled in accordance with this Contract. In that event,
such separate loss factors shall apply to those specific services scheduled under this
Contract.
2.1 WAPA and Redding are participants in the California Independent System
Operator's (CAISO) Western Energy Imbalance Market (EIM) which transfers
energy dynamically during the scheduling hour. Prior to the operating hour,
Redding will create and update electronic tags in accordance with the EIM
Entity business practices and Section B.5 of this Exhibit B.
3. Monthly Forecast:
Five (5) Business Days before the end of each month, Redding shall provide WAPA
with a non-binding daily forecast for the following month including on -peak and off-peak
information specifying: (1) generation from each of Redding's generating resources, (2)
daily purchase of WAPA energy, (3) Non -Interruptible and Interruptible Third Party
capacity and energy purchases (imports), (4) Non -Interruptible and Interruptible Third
Party capacity and energy sales (exports), (5) purchases of any other power services
from WAPA or Third Parties, (6) Contingency Reserves provided by Redding, (7)
monthly total schedules for items 1-6 (8) forecasted monthly peak, and (9) other
information as agreed. Such information shall be provided by Redding in a typical
weekday, Saturday and Sunday format.
City of Redding
Exhibit B to
Contract 23 -SNR -02969
4. Daily Preschedule:
WAPA and Redding agree to use the WECC Preschedule Calendar as a basis for
developing the prescheduling dates.
4.1 For schedules outside of WAPA's Sub -Balancing Authority Area, Redding shall
notify WAPA no later than 10:00 a.m. on each Business Day, or as otherwise
agreed by the Parties, of its preschedules for each following day, up to and
including the following Business Day. Such preschedules shall include suppliers
and purchasers, type of transaction, (e.g., Unit Contingent or Interruptible or Non -
Interruptible) hourly amounts, and daily totals. In addition, Redding shall notify
WAPA of the type of transmission arrangements made with intervening Balancing
Authority Areas to affect the transactions. A properly completed NERC E -tag meets
this requirement.
4.2 By 2:00 p.m. of each Business Day, Redding shall transmit to WAPA the
hourly preschedules, containing the information listed in Section 11 of this Exhibit B,
in a format agreed upon by the Parties. Redding may update the preschedules
before midnight as more current information becomes available, so that the
preschedules can reflect Redding's most current Electric Power System conditions.
5. At Midnight:
The preschedule becomes the schedule of the day. Redding shall make any changes
to the schedule in accordance with timeframes and communication protocols outlined in
the Business Practices of the Market Operator. Redding shall also contact the SOC by
voice communication no later than twenty (20) minutes before the hour to verify
Redding's net schedules. The Parties dispatchers may mutually agree to verify several
hours of schedules before implementation but must confirm any changes. After this
twenty (20) minute lock out period, no additional changes to the schedule shall be
accepted, except when Redding, WAPA, or the Balancing Authority Area suffers an
Emergency or when schedules into WAPA's Sub -Balancing Authority Area are curtailed
or modified because of Unscheduled Flow or abnormal operating conditions. In that
event, the Parties shall agree to schedule changes after the twenty (20) minute lockout
period; after the scheduling hour has passed, the schedule, so changed, becomes the
final schedule of the hour and Redding may no longer change the final schedule.
5.1 If the scheduling data link between WAPA and Redding fails, Redding shall
affect the schedule changes by voice communication, confirmed by electronic mail
transmittal; the time of the schedule change shall be the time of the voice
communication or as agreed by the Parties. Changes received after the lockout
time shall not be accepted, unless otherwise agreed.
City of Redding
Exhibit B to
Contract 23 -SNR -02969
6. EIM:
6.1 Dynamically scheduled energy as a result of EIM dispatch is permitted as
necessary for participation in EIM which transfers energy dynamically during the
scheduling hour. There are two EIM dynamic E -tags created for each day with no
energy profile and maximum expected transmission profile — one created by
WAPA's Merchant and one created by the Customer, both of which can only be
updated by the entity that created them [outside of the automated dynamic E -tag
hourly updates performed by the EIM Entity (SMUD/BANC)]. After each hour,
SMUD/BANC's automated system will enter the net energy transferred due to EIM
dispatches during the hour into the appropriate EIM dynamic E -tag.
6.2 If the EIM dynamic E -tag automated value is incorrect due to WAPA or
Customer issues (bad forecast data, technical issues, etc.) WASN and the
Customer will work to resolve the issue and may adjust the appropriate EIM
dynamic E -tag with the new agreed upon values within NERC guidelines (currently
within 168 hours or one week).
6.3 If the EIM dynamic E -tag automated value is incorrect due to CAISO issues
((bad forecast data, technical issues, etc.) resolution will be via the CAISO issue
resolution process (currently CIDI tickets).
7. Deviation Energy:
7.1 During normal operations (EIM is balancing Sub -Balancing Authority Area real
time loads), WAPA EMS will calculate deviations for each five (5) minute interval.
The data points used in the calculations will be shared with Redding for their
tracking of deviations.
7.2 During periods that EIM is unavailable, after each scheduling hour, when the
actual integrated hourly Redding Net Interchange is available, WAPA shall calculate
the amount of deviation for each hour based on the calculation described in Section
10.6.1.2 of the Contract. Redding and WAPA will check out on deviations after
each hour.
8. Final Schedules:
At the end of each day (midnight), the final hourly schedules, including Redding's actual
generation from its generating resources, after verification by Redding and WAPA, shall
become the schedule of that day subject to the conditions stated above in B.S.
City of Redding
Exhibit B to
Contract 23 -SNR -02969
9. Emergency:
If during the current scheduling hour, Redding suffers an Emergency, including, but not
limited to, a Forced Outage of transmission or interruption of scheduled firm power
supply, Redding shall notify WAPA of the interruption. Redding shall inform WAPA
regarding the necessary adjustments to the schedules for the scheduling hour by voice
communication within the first ten (10) minutes after the Emergency occurs. If the
Emergency extends beyond the current scheduling hour, Redding shall adjust
subsequent hourly schedules to reflect Redding's then -current Electric Power System
conditions.
10. Reports:
Unless otherwise agreed by the Parties, Redding shall provide WAPA with daily reports
transmitted in a mutually agreed upon manner at least twice a week throughout the
month, and monthly reports, within five (5) Business Days after the end of each
calendar month, in a format agreed upon by both Parties consisting of:
10.1 Actual daily and hourly final scheduled transactions with daily totals.
10.2 Actual daily and hourly generation of Redding's generating resources.
10.3 Actual daily and hourly Redding System load.
10.4 Monthly summary of the final schedules for items 1-4.
10.5 Operating Reserves for each hour.
11. Reconciliation of Actual and Scheduled Data:
Except as otherwise provided in this Contract, or unless otherwise agreed by the
Parties:
11.1 When EIM is available, the integrated 5 -minute interval telemetered data shall
serve as the normal basis for deviation accounting within the Maximum Deviation
Band as set forth in Exhibit D. Each 5 -minute interval will be settled separately, and
11.2 When EIM is not available, the integrated hourly telemetered data shall serve
as the normal basis for deviation accounting within the Maximum Deviation Band as
set forth in Exhibit D.
WAPA shall use the actual revenue meter register data to calculate charges for
deviation outside the Maximum Deviation Band.
City of Redding
Exhibit B to
Contract 23 -SNR -02969
12. Information to be Scheduled by Redding:
The hourly preschedules and schedules shall include the following quantities pursuant
to Exhibit A of this Contract:
12.1 Redding Electric Power System load,
12.2 Generation from each generation resource,
12.3 Total generation from generating resources,
12.4 Schedules at Points of Interconnection:
12.4.1 Firm power purchases from each Third Party
12.4.2 Firm power sales to each Third Party
12.4.3 Interruptible Energy purchases from each Third Party
12.4.4 Interruptible Energy sales to each Third Party
12.4.5 Energy purchased from WAPA
12.4.6 Energy sold to WAPA
12.4.7 Contingency Reserves self -provided and purchased by source
12.4.8 Redding -owned generation wheeled across WAPA's system,
12.5 Amount of limitation on Redding's generating resources,
12.6 Dynamic Schedules for energy received or delivered via EIM,
12.7 Other information, as agreed from time to time.
13. Electronic Tagging
The Balancing Authority Area and WAPA require all energy transactions crossing the
host Balancing Authority Area boundary, WAPA's Sub -Balancing Authority Area
boundary, or those wheeled entirely within the WAPA Sub -Balancing Authority Area or
host Balancing Authority Area to be tagged with a NERC E -tag.
City of Redding
Exhibit C to
Contract 23 -SNR -02969
EXHIBIT C
Reserve Obligations
1. This Exhibit C, to be effective under and as a part of Contract 23 -SNR -02969
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit C or termination of the Contract.
2. Determination of Redding Reserve Quantities:
2.1 WAPA is responsible for assuring that adequate Operating Reserves are
available to cover WAPA's share of the Balancing Authority Area's contingency
reserve requirement, as determined on an hourly basis by the Balancing Authority
Operator. Redding will have the responsibility for covering Redding's Load Ratio
Share (LRS) of Contingency Reserves as part of such Operating Reserve
requirements, plus any additional Contingency Reserves required for Redding's use
of Interruptible Energy. WAPA shall promptly notify Redding of any change to the
Contingency Reserve requirements.
2.2 The purpose of this Exhibit C is to define the Contingency Reserve
requirements of the WAPA Sub -Balancing Authority and to specify the method of
calculating the apportionment thereof among WAPA and each interconnected utility
or load resident within the WAPA Sub -Balancing Authority Area that has a
contractual obligation for an apportionment of the Sub Balancing Authority
Contingency Reserves. All Contingency Reserve requirement calculations derived
herein shall be rounded up to the next whole megawatt.
2.3 This Exhibit C has been developed for the purpose of sharing Contingency
Reserves based on the annual non -coincident peak load of each interconnected
utility or load resident within the WAPA Sub -Balancing Authority that has a
contractual obligation for an apportionment of the Sub -Balancing Authority
Contingency Reserves. Any Reserve requirements necessary to meet NERC and
WECC standards for interruptible imports, and on -demand contracts are the
responsibility of Redding.
2.4 For the purpose of this Exhibit C, Redding's Annual Peak Load shall mean
the annual maximum non -coincident peak demand (in whole MWs) of Redding's
Electric Power System during the period from November 1 st of the prior year
through October 31St of the current year.
2.5 In December of each year, Redding's Annual Peak Load Obligation shall be
determined by calculating the difference between Redding's Annual Peak Load and
City of Redding
Exhibit C to
Contract 23 -SNR -02969
the product of WAPA's Annual Peak Load obligation (maximum base resource
scheduled in current year) multiplied by Redding's Base Resource allocated
percentage.
2.6 In December of each year, WAPA shall determine its Annual Peak Load
Obligation, which is defined as WAPA's annual peak Base Resource delivery
(expressed in MWs) during the period from November 1 st of the prior year through
October 31 st of the current year.
3. WAPA may change the Reserves requirements as necessary to reflect any
changes under the Balancing Authority Area agreement with the Balancing Authority
Operator.
4. The LRS for Redding is determined as follows:
Redding LRS = (Redding Annual Peak Load Obligation) divided by (Redding
Annual Peak Load Obligation + WAPA Annual Peak Load Obligation + Third Party
Annual Peak Load Obligation)
Where:
• Redding's Annual Peak Load Obligation = Redding's annual maximum non -
coincident peak load obligation as set forth in Section 2.5.
• WAPA Annual Peak Load Obligation = WAPA's annual peak load obligation
as set forth in Section 2.6.
• Third Party Annual Peak Load Obligation = Annual maximum non -
coincident peak load of all Third Party Electric Power Systems resident
within the WAPA Sub -Balancing Authority Area that have a contractual
obligation to provide Sub -Balancing Authority Contingency Reserves to
WAPA.
• The LRS for Redding will be calculated using the equation in this Section,
based on data provided by Redding to WAPA, on November 1St of each
year to establish Redding's Annual Peak Load Obligation for the period
November 1 st of the prior year through October 31 st of the current year.
Using Redding's Annual Peak Load Obligation provided by Redding to
WAPA on November 1St, WAPA shall calculate Redding's updated LRS
becoming effective on January 1St each year.
City of Redding
Exhibit C to
Contract 23 -SNR -02969
5. The quantity of Contingency Reserves to be provided by Redding under this
Contract in any hour shall be calculated by WAPA:
Redding Contingency Reserve Obligation = (Redding's LRS) x (Sub -Balancing
Authority share of Contingency Reserves)
Where:
• Sub -Balancing Authority (SBA) share of Contingency Reserves = Sub -
Balancing Authority Area share of the Balancing Authority Area Contingency
Reserves as calculated by SMUD as the BANC operator.
6. Each Party is responsible for supplying its Frequency Response Reserves,
Contingency Reserves and COI Mitigation Reserves. Any Reserves activated due to
the occurrence of any event shall be restored by the affected Party in as short a period
of time as possible. If Redding self -provides or purchases its LRS of Reserves from a
Third Party, WAPA shall periodically test the availability of such Reserves, as set forth
in Section 9 hereof.
7. At the end of each hour, WAPA shall compare the actual amount of Reserves
carried by Redding to Redding's Reserve requirement. Redding will be deficient in
Reserves if the actual amount of Reserves carried by Redding is less than Redding's
obligation.
8. Penalties imposed by NERC or WECC on the BANC Balancing Authority Area that
are assessed by SMUD on the WAPA Sub -Balancing Authority Area for failure to carry
required Reserves shall be applied only to the Party(ies) that caused the Reserve
deficiency in proportion to which such Party(ies) contributed to the Reserve deficiency.
In the event it cannot be determined who caused the Reserve deficiency such costs
shall be borne by the Parties in accordance with their respective LRS calculated
pursuant to Section 4 hereof.
9. Activation of Reserves:
9.1 If Redding experiences a loss of resource, Redding shall immediately notify
WAPA that they have lost a resource and need assistance. Redding will
immediately begin actions to replace the lost resource, communicating with WAPA
regularly.
9.2 If WAPA or a Third Party resident within the WAPA Sub -Balancing Authority
Area experiences a loss of a resource, WAPA may direct Redding to activate
Redding's total LRS of Reserves or a portion thereof.
City of Redding
Exhibit C to
Contract 23 -SNR -02969
10. Supplying or Receiving Reserve Energy:
10.1 Redding shall be required to activate its LRS of Reserves called upon within
ten (10) minutes from the time notified by WAPA. Redding has no obligation to
supply more than its LRS of Reserve energy, nor beyond a period of sixty (60)
minutes from the time notified by WAPA.
10.2 Settlement for Supplying Reserve Energy will be consistent with current
business practice.
11. California -Oregon Intertie Overload Mitigation:
In the operation of the COI, WAPA, as the Sub Balancing Authority Operator, has
agreed to curtail schedules, as directed by BANC, and deploy COI Mitigation Energy to
alleviate overloading on the COI. The deployment of COI Mitigation Energy is pursuant
to WASN Business Practice COI Mitigation Procedure, BP -019. Updates to this BP will
be coordinated with all affected parties prior to approval.
11.1 Schedule Curtailments: Redding's share of the schedule curtailment will
be determined in proportion to Redding's schedules on COI. BANC will direct
curtailment of the Sub -Balancing Authority Area's COI schedules.
11.2 COI Mitigation Energy: Redding's share of COI Mitigation Energy will be
determined by multiplying the SBA's total mitigation requirement (as determined by
BANC) by Redding's LRS. Redding may self -provide its COI Mitigation Energy with
any resource that can provide the required energy within 30 minutes.
12. Penalties imposed by NERC and WECC on the BANC Balancing Authority that are
assessed by BANC to WAPA for failure to recover from a disturbance shall be applied
only to the Party(ies) that caused such failure.
13. All billings and payments associated with this Exhibit C shall be made in
accordance with the Contract.
City of Redding
Exhibit D to
Contract 23 -SNR -02969
EXHIBIT D
U,9xintin - •i = i. •i
1. This Exhibit D, to be effective under and as a part of Contract 23 -SNR -02969
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit D or termination of the Contract.
2. Redding's Maximum Deviation Band will be determined as follows:
Redding's Maximum Deviation Band = +I- (0.05LD+5) MW
Where:
• LD = Largest load change in any two consecutive hours during the last
calendar year
WAPA and Redding have agreed upon a Maximum Deviation Band, effective
upon the effective date of this Contract, of plus or minus 6 MW deviation from
Redding's net scheduled interchange value for each hour. Redding may request
a change to this value, but not more often than once every year. If WAPA
approves such change, it will become effective upon the first day of a month. A
revised Exhibit D will be sent to Redding upon approval and will contain the
effective date of such change.
City of Redding
Exhibit E to
Contract 23 -SNR -02969
EXHIBIT E
Notices
1. This Exhibit E, to be effective under and as a part of Contract 23 -SNR -02969
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit E or termination of the Contract.
2. The following Mailing Addresses are to be used to provide Notice in accordance
with Section 21 of the Contract:
Western Area Power Administration
Vice President and Manager
of Power Operations
For Sierra Nevada Region
114 Parkshore Drive
Folsom, CA 95630-4710
Redding Electric Utility
City of Redding
Electric Utility Director
3611 Avtech Parkway
Redding, CA 96002
3. Each Party to the Contract, by written notice to the authorized representatives of the
other Party, shall keep all participants informed of any changes of address, as they
occur. These written notices shall take effect and remain in effect until another Exhibit
E is drafted.
Effective September 1, 2007
WESTERN AREA POWER ADMINISTRATION
GENERAL POWER CONTRACT PROVISIONS Paye
I. APPLICABILITY.
1. Applicability.............................................................................................................................................1
II. DELIVERY OF SERVICE PROVISIONS.
2. Character of Service...................................................................................................................................... 1
3. Use of Capacity or Energy in Excess of Contract Obligation....................................................................... 1
4. Continuity of Service.................................................................................................................................... 1
5. Multiple Points of Delivery........................................................................................................................... 2
6. Metering........................................................................................................................................................2
7. Existence of Transmission Service Contract................................................................................................. 3
8. Conditions of Transmission Service............................................................................................................. 3
9. Multiple Points of Delivery Involving Direct and Indirect Deliveries.......................................................... 3
10, Construction, Operation, and Maintenance of Contractor's Power System ............................................... 3-4
IILRATES, BILLING, AND PAYMENT PROVISIONS.
11.
Change of Rates............................................................................................................................................ 4
12.
Minimum Seasonal or Annual Capacity Charge...........................................................................................
4
13.
Billing and Payment...................................................................................................................................4-5
7
14.
Nonpayment of Bills in Full. When Due.......................................................................................................
5
15.
Adjustments for Fractional. Billing Period....................................................................................................
5
16.
Adjustments for Curtailments to Firm Service..........................................................................................
5-6
IV. POWER SALES PROVISIONS.
17. Resale of Firm Electric Service (Wholesale Sales for Resale)...................................................................... 6
18. Distribution Principles.................................................................................................................................. 6
19. Contract Subject to Colorado River Compact............................................................................................... 6
V. FACILITIES PROVISIONS.
Authorized Representatives of the Parties.................................................................................................... 9
20.
Design Approval........................................................................................................................................
6-7
21.
Inspection and Acceptance............................................................................................................................
7
22.
As -Built Drawings........................................................................................................................................
7
23.
Equipment Ownership Markers....................................................................................................................
7
24.
Third -Party Use of Facilities.........................................................................................................................
7
25.
Changes to Western Control Facilities.......................................................................................................
7-8
26.
Modification of Western Facilities................................................................................................................
8
27.
Transmission Rights......................................................................................................................................
8
28.
Construction and Safety Procedures..........................................................................................................
8-9
29.
Environmental Compliance...........................................................................................................................
9
30.
Responsibility for Regulated Materials.........................................................................................................
9
VI. OTHER PROVISIONS.
31.
Authorized Representatives of the Parties.................................................................................................... 9
32.
Effect of Section Headings.........................................................................................................................
10
33.
Operating Guidelines and Procedures.........................................................................................................
10
34.
Uncontrollable Forces.................................................................................................................................
10
35.
Liability.......................................................................................................................................................10
36.
Cooperation of Contracting Parties........................................................................................................10-11
37.
Transfer of Interest in the Contract or Change in Preference Status...........................................................
11
38.
Choice of Law and Forum..........................................................................................................................
12
39.
Waivers......................................................................................................................................................
12
40.
Notices........................................................................................................................................................
12
41.
Contingent Upon Appropriations and Authorization..................................................................................
12
42.
Covenant Against Contingent Fees.............................................................................................................
12
* 43.
Contract Work Hours and Safety Standards...............................................................................................
13
44.
Equal Opportunity Employment Practices..................................................................................................
1.3
45.
Use of Convict Labor..................................................................................................................................
13
*Legal Citation Revised September 1, 2007
WESTERN AREA POWER ADMINISTRATION
GENERAL POWER CONTRACT PROVISIONS
1. APPLICABILITY.
1. Applicability.
Effective September 1, 2007
1.1 These General Power Contract Provisions (Provisions) shall be a part of the contract to
which they are attached. In the event these Provisions differ from requirements of the contract, specific terms
set forth in the contract shall prevail.
1.2 If the Contractor has member utilities which are either directly or indirectly receiving
benefits from the contract, then the Contractor shall require such members to comply with Provisions 10, 17,
18, 19, 29, 30, 36, 43, 44, and 45 of these General Power Contract Provisions.
II. DELIVERY OF SERVICE PROVISIONS.
2. Character of Service.
Electric energy supplied or transmitted under the contract will be three-phase, alternating current,
at a nominal frequency of sixty (60) hertz (cycles per second).
3. Use of Capacity or Energy in Excess of Contract Obligation.
The Contractor is not entitled to use Federal power, energy, or capacity in amounts greater than
the Western contract delivery obligation in effect for each type of service provided for in the contract except
with the approval of Western. Unauthorized overruns of contract delivery obligations shall be subject to
charges specified in the contract or the applicable rate schedules. Overruns shall not establish any continuing
right thereto and the Contractor shall cease any overruns when requested by Western, or in the case of
authorized overruns, when the approval expires, whichever occurs first. Nothing in the contract shall obligate
Western to increase any delivery obligation. If additional power, energy, or capacity is not available from
Western, the responsibility for securing additional power, energy, or capacity shall rest wholly with the
Contractor.
4. Continuity of Service.
Electric service will be supplied or transmitted continuously except for: (1) fluctuations,
interruptions, or reductions due to uncontrollable forces, as defined in Provision 34 (Uncontrollable Forces)
herein, (2) fluctuations, interruptions, or reductions due to operation of devices installed for power system
protection; and (3) temporary fluctuations, interruptions, or reductions, which, in the opinion of the party
supplying the service, are necessary or desirable for the purposes of maintenance, repairs, replacements,
installation of equipment, or investigation and inspection. The party supplying service, except in case of
emergency, will give the party to whom service is being provided reasonable advance notice of such
temporary interruptions or reductions and will remove the cause thereof with diligence.
1
Effective September 1, 2007
Multiple Points of Delivery.
When electric service is supplied at or transmitted to two or more points of delivery under the same
rate schedule, said rate schedule shall apply separately to the service supplied at or transmitted to each point of
delivery; Provided, That where the meter readings are considered separately, and during abnormal conditions, the
Contractor's system is interconnected between points of delivery such that duplication of metered power is
possible, the meter readings at each affected point of delivery will be adjusted to compensate for duplication of
power demand recorded by meters at alternate points of delivery due to abnormal conditions which are beyond the
Contractor's control or temporary conditions caused by scheduled outages.
6. Metering.
6.1 The total electric power and energy supplied or transmitted under the contract will be
measured by metering equipment to be furnished and maintained by Western, a designated representative of
Western, or where situations deem it appropriate as determined by Western, by the Contractor or its agent(s). In
the event metering equipment is furnished and maintained by the Contractor or its agent(s) and the equipment is
used for billing and other accounting purposes by Western, the Contractor shall ensure that the metering equipment
complies with applicable metering policies established by Western.
6.2 Meters shall be secured by appropriate security measures and meters shall not be accessed
except when the meters are to be inspected, tested, adjusted, or repaired. Representatives of affected parties shall
be afforded reasonable opportunity to be present upon such occasions. Metering equipment shall be inspected and
tested each year by the party responsible for meter maintenance, unless a different test interval is determined in
accordance with good utility practices by an applicable regional metering policy, or as agreed upon by the parties.
Meters shall also be tested at any reasonable time upon request by a party hereto, or by an affected supplemental
power supplier, transmission agent, or control area operator. Any metering equipment found to be damaged,
defective, or inaccurate shall be repaired and readjusted or replaced by the party responsible for meter maintenance
as soon as practicable. Meters found with security breaches shall be tested for tampering and, if appropriate, meter
readings shall be adjusted by Western pursuant to Provision 6.3 below.
6.3 Except as otherwise provided in Provision 6.4 hereof, should any meter that is used by
Western for billing or other accounting purposes fail to register accurately, the electric power and energy supplied
or transmitted during the period of failure to register accurately, shall, for billing purposes, be estimated by
Western from the best available information.
6.4 If inspections and tests of a meter used by Western for billing or other accounting purposes
disclose an error exceeding 2 percent, or a lesser range in error as agreed upon by the parties, then a correction
based upon the inaccuracy found shall be made to the service records for the period of inaccuracy as determined by
Western. If the period of inaccuracy cannot be determined, the inaccuracy shall be assumed to have existed during
the entire monthly billing period immediately preceding the billing period in which the inspection or test was made
and the resulting correction shall be made accordingly.
6.5 Any correction in billing or other accounting information that results from a correction in
meter records shall be made in a subsequent monthly bill rendered by Western to the Contractor. Payment of such
bill shall constitute full adjustment of any claim between the parties arising out of inaccurate metering equipment.
Effective September 1, 2007
7. Existence of Transmission Service Contract.
If the contract provides for Western to furnish services using the facilities of a third party, the
obligation of Western shall be subject to and contingent upon the existence of a transmission service contract
granting Western rights to use such facilities. If Western acquires or constructs facilities which would enable it to
furnish direct service to the Contractor, Western, at its option, may furnish service over its own facilities.
8. Conditions of Transmission Service.
8.1 When the electric service under the contract is furnished by Western over the facilities of
others by virtue of a transmission service arrangement, the power and energy will be furnished at the voltage
available and under the conditions which exist from time to time on the transmission system over which the
service is supplied.
8.2 Unless otherwise provided in the contract or applicable rate schedule, the Contractor shall
maintain a power factor at each point of delivery from Western's transmission agent as required by the
transmission agent.
8.3 Western will endeavor to inform the Contractor from time to time of any changes planned or
proposed on the system over which the service is supplied, but the costs of any changes made necessary in the
Contractor's system, because of changes or conditions on the system over which the service is supplied, shall not
be a charge against or a liability of Western.
8.4 If the Contractor, because of changes or conditions on the system over which service under
the contract is supplied, is required to make changes on its system at its own expense in order to continue receiving
service under the contract, then the Contractor may terminate service under the contract upon not less than sixty
(60) days written notice given to Western prior to making such changes, but not thereafter.
8.5 If Western notifies the Contractor that electric service provided for under the contract cannot
be delivered to the Contractor because of an insufficiency of capacity available to Western in the facilities of
others over which service under the contract is supplied, then the Contractor may terminate service under the
contract upon not less than sixty (60) days written notice given to Western prior to the date on which said capacity
ceases to be available to Western, but not thereafter.
9. Multiple Points of Delivery Involving Direct and Indirect Deliveries.
When Western has provided line and substation capacity under the contract for the purpose of
delivering electric service directly to the Contractor at specified direct points of delivery and also has agreed to
absorb transmission service allowance or discounts for deliveries of energy over other system(s) to indirect points
of delivery and the Contractor shifts any of its load served under the contract from direct delivery to indirect
delivery, Western will not absorb the transmission service costs on such shifted load until the unused capacity, as
determined solely by Western, available at the direct delivery points affected is fully utilized.
10. Construction, Operation, and Maintenance of Contractor's Power System.
The Contractor shall, and, if applicable, shall require each of its members or transmission agents to
construct, operate, and maintain its power system in a manner which, as determined by Western, will not interfere
with the operation of the system of Western or its transmission agents over which electric services are furnished to
the Contractor under the contract, and in a manner which will coordinate with the protective relaying and other
protective arrangements of the system(s) of Western or Western's transmission agents. Western may reduce or
Effective September 1, 2007
discontinue furnishing services to the Contractor if, after notice by Western, the Contractor fails or refuses to make
such changes as may be necessary to eliminate an unsatisfactory condition on the Contractor's power system
which is determined by Western to interfere significantly under current or probable conditions with any service
supplied from the power system of Western or from the power system of a transmission agent of Western. Such a
reduction or discontinuance of service will not relieve the Contractor of liability for any minimum charges
provided for in the contract during the time said services are reduced or discontinued. Nothing in this Provision
shall be construed to render Western liable in any manner for any claims, demands, costs, losses, causes of action,
damages, or liability of any kind or nature arising out of or resulting from the construction, operation, or
maintenance of the Contractor's power system.
III. RATES, BILLING, AND PAYMENT PROVISIONS.
11. Change of Rates.
Rates applicable under the contract shall be subject to change by Western in accordance with
appropriate rate adjustment procedures. If at any time the United States promulgates a rate changing a rate then in
effect under the contract, it will promptly notify the Contractor thereof. Rates shall become effective as to the
contract as of the effective date of such rate. The Contractor, by written notice to Western within ninety (90) days
after the effective date of a rate change, may elect to terminate the service billed by Western under the new rate.
Said termination shall be effective on the last day of the billing period requested by the Contractor not later than
two (2) years after the effective date of the new rate. Service provided by Western shall be paid for at the new rate
regardless of whether the Contractor exercises the option to terminate service.
1.2. Minimum Seasonal or Annual Capacity Charge.
When the rate in effect under the contract provides for a minimum seasonal or annual capacity
charge, a statement of the minimum capacity charge due, if any, shall be included in the bill rendered for service
for the last billing period of the service season or contract year as appropriate, adjusted for increases or decreases
in the contract rate of delivery and for the number of billing periods during the year or season in which service is
not provided. Where multiple points of delivery are involved and the contract rate of delivery is stated to be a
maximum aggregate rate of delivery for all points, in determining the minimum seasonal or annual capacity charge
due, if any, the monthly capacity charges at the individual points of delivery shall be added together.
13. Billing and Pant.
13.1 Western will normally issue bills to the Contractor for services furnished during the
preceding month within ten (1.0) days after the end of the billing period.
13.2 If Western is unable to issue timely monthly bill(s), Western may elect to render estimated
bill(s). Such estimated bill(s) shall be subject to the same payment provisions as final bill(s), and any applicable
adjustments will be shown on a subsequent monthly bill.
13.3 Payments of bills issued by Western are due and payable by the Contractor before the close
of business on the twentieth (20th) calendar day after the date of issuance of each bill or the next business day
thereafter if said day is a Saturday, Sunday, or Federal holiday. Bills shall be considered paid when payment is
received by Western. Bills will be paid electronically or via the Automated Clearing House method of payment
unless a written request to make payments by mail is submitted by the Contractor and approved by Western.
Should Western agree to accept payments by mail, these payments will be accepted as timely and without
assessment of the charge provided for in Provision 14 (Nonpayment of Bills in Full When Due) if a United States
C!
Effective September 1, 2007
Post Office first class mail postmark indicates the payment was mailed at least three (3) calendar days before the
due date.
13.4 The parties agree that net billing procedures will be used for payments due Western by the
Contractor and for payments due the Contractor by Western for the sale or exchange of electric power and energy,
use of transmission facilities, operation and maintenance of electric facilities, and other services. Payments due
one party in any month shall be offset against payments due the other party in such month, and the resulting net
balance shall be paid to the party in whose favor such balance exists. The parties shall exchange such reports and
information that either party requires for billing purposes. Net billing shall not be used for any amounts due which
are in dispute.
14. Nonpayment of Bills in Full When Due.
14.1 Bills not paid in full by the Contractor by the due date specified in Provision 1.3 (Billing and
Payment) hereof shall bear a charge of five hundredths percent (0.05%) of the principal sum unpaid for each day
payment is delinquent, to be added until the amount due is paid in full. Western will also assess a fee of twenty-
five dollars ($25.00) for processing a late payment. Payments received will first be applied to the charges for late
payment assessed on the principal and then to payment of the principal.
14.2 Western shall have the right, upon not less than fifteen (15) days advance written notice, to
discontinue furnishing the services specified in the contract for nonpayment of bills in full when due, and to refuse
to resume such services so long as any part of the amount due remains unpaid. Such a discontinuance of service
will not relieve the Contractor of liability for minimum charges during the time service is so discontinued. The
rights reserved to Western herein shall be in addition to all other remedies available to Western either by law or in
equity, for the breach of any of the terms hereof.
15. Adjustments for Fractional Billing Period.
The demand or capacity charge and minimum charges shall each be proportionately adjusted when
fractional billing periods are applicable under this contract. A fractional billing period can occur: 1) at the
beginning or end of electric service; 2) at the beginning or end of irrigation pumping service each year; 3) for a
fractional billing period under a new rate schedule; or 4) for fractional periods due to withdrawals of electric
services. The adjustment will be made based on the ratio of the number of hours that electric service is available
to the Contractor in such fractional billing period, to the total number of hours in the billing period involved.
Energy billing shall not be affected by fractional billing periods.
16. Adjustments for Curtailments to Firm Service.
16.1 Billing adjustments will be made if firm electric service is interrupted or reduced because of
conditions on the power system of the United States for periods of one (1) hour or longer in duration each. Billing
adjustments will not be made when such curtailment of electric service is due to a request by the Contractor or a
discontinuance of electric service by Western pursuant to Provision 14 (Nonpayment of Bills In Full When Due).
For purposes of billing adjustments under this Provision, the term power system of the United States shall include
transmission facilities used under contract but not owned by the United States.
16.2 The total number of hours of curtailed firm electric service in any billing period shall be
determined by adding: (1) the sum of the number of hours of interrupted electric service to (2) the product, of each
reduction, of: the number of hours reduced electric service and the percentage by which electric service was
reduced below the delivery obligation of Western at the time of each said reduction of electric service. The
demand or capacity charge and applicable minimum charges shall each be proportionately adjusted in the ratio that
Effective September 1, 2007
the total number of hours of electric service determined to have been curtailed bears to the total number of hours in
the billing period involved.
16.3 The Contractor shall make written claim within thirty (30) days after receiving the monthly
bill, for adjustment on account of any curtailment of firm electric service, for periods of one (1) hour or longer in
duration each, alleged to have occurred that is not reflected in said bill. Failure to make such written claim, within
said thirty -day (30 -day) period, shall constitute a waiver of said claim. All curtailments of electric service, which
are due to conditions on the power system of the United States, shall be subject to the terms of this Provision;
Provided, That withdrawal of power and energy under the contract shall not be considered a curtailment of electric
service.
IV. POWER SALES PROVISIONS.
1.7. Resale of Firm Electric Service (Wholesale Sales for Resale).
The Contractor shall not sell any firm electric power or energy supplied under the contract to any
electric utility customer of the Contractor for resale by that utility customer; Provided, That the Contractor may
sell the electric power and energy supplied under the contract to its members on condition that said members not
sell any of said power and energy to any customer of the member for resale by that customer.
18. Distribution Principles.
The Contractor agrees that the benefits of firm electric power or energy supplied under the contract
shall be made available to its consumers at rates that are established at the lowest possible level consistent with
sound business principles, and that these rates will be established in an open and public manner. The Contractor
further agrees that it will identify the costs of firm electric power or energy supplied under the contract and power
from other sources to its consumers upon request. The Contractor will demonstrate compliance with the
requirements of this Provision to Western upon request.
19. Contract Subject to Colorado River Compact.
Where the energy sold under the contract is generated from waters of the Colorado River system, the
contract is made upon the express condition and with the express covenant that all rights under the contract shall.
be subject to and controlled by the Colorado River Compact approved by Section 13 (a) of the Boulder Canyon
Project Act of December 21, 1928, 43 U.S.C. §§ 617a -e, and the parties to the contract shall observe and be
subject to and controlled by said Colorado River Compact in the construction, management, and operation of the
dams, reservoirs, and powerplants from which electrical energy is to be furnished by Western to the Contractor
under the contract, and in the storage, diversion, delivery, and use of water for the generation of electrical energy
to be delivered by Western to the Contractor under the contract.
V. FACILITIES PROVISIONS.
20. Design Approval.
All facilities, construction, and installation by the Contractor pursuant to the contract shall be subject
to the approval of Western. Facilities interconnections shall normally conform to Western's current "General
Requirements for Interconnection," in effect upon the signing of the contract document providing for each
interconnection, copies of which are available from Western. At least ninety (90) days, unless otherwise agreed,
Effective September 1, 2007
prior to the date the Contractor proposes to commence construction or to incur an obligation to purchase facilities
to be installed pursuant to the contract, whichever date is the earlier, the Contractor shall submit, for the approval
of Western, detailed designs, drawings, and specifications of the facilities the Contractor proposes to purchase,
construct, and install. The Contractor assumes all risks for construction commenced or obligations to purchase
facilities incurred prior to receipt of approval from Western. Western review and approval of designs and
construction work in no way implies that Western is certifying that the designs meet the Contractor's needs.
21. Inspection and Acceptance.
Western shall have the right to inspect the materials and work furnished by the Contractor, its agents,
employees, and subcontractors pursuant to the contract. Such inspections shall be at reasonable times at the work
site. Any materials or work that Western determines is defective or not in accordance with designs, drawings, and
specifications, as approved by Western, shall be replaced or modified, as directed by Western, at the sole expense
of the Contractor before the new facilities are energized.
22. As -Built Drawings.
Within a reasonable time, as determined by Western, after the completion of construction and
installation of facilities pursuant to the contract, the Contractor shall submit to Western marked as -built prints of
all Western drawings affected by changes made pursuant to the contract and reproducible drawings the Contractor
has prepared showing facilities of Western. The Contractor's drawings of Western facilities shall use drawing title
blocks, drawing numbers, and shall be prepared in accordance with drafting standards all as approved by Western.
Western may prepare, revise, or complete said drawings and bill the Contractor if the Contractor fails to provide
such drawings to Western within a reasonable time as determined by Western.
23. Equipment Ownership Markers.
23.1 The Contractor shall identify all movable equipment and, to the extent agreed upon by the
parties, all other salvageable facilities constructed or installed on the United States right-of-way or in Western
substations pursuant to the contract which are owned by the Contractor, by permanently affixing thereto suitable
markers clearly identifying the Contractor as the owner of said equipment and facilities.
23.2 If requested by the Contractor, Western shall identify all movable equipment and, to the
extent agreed upon by the parties, all other salvageable facilities constructed or installed on the Contractor's
right-of-way or in the Contractor's substations pursuant to the contract which are owned by the United States, by
permanently affixing thereto suitable markers clearly identifying the United States as the owner of said equipment
and facilities.
24. Third -Party Use of Facilities.
The Contractor shall notify Western of any proposed system change relating to the facilities governed
by the contract or allowing third -party use of the facilities governed by the contract. If Western notifies the
Contractor that said system change will, as solely determined by Western, adversely affect the operation of
Western's system the Contractor shall, at no cost to Western, provide a solution to said adverse effect acceptable to
Western.
25. Changes to Western Control Facilities.
If at any time during the term of the contract, Western determines that changes or additions to control,
relay, or communications facilities are necessary to maintain the reliability or control of Western's transmission
V1
Effective September 1, 2007
system, and said changes or additions are entirely or partially required because of the Contractor's equipment
installed under the contract, such changes or additions shall, after consultation with the Contractor, be made by
Western with all costs or a proportionate share of all costs, as determined by Western, to the be paid by the
Contractor. Western shall notify the Contractor in writing of the necessary changes or additions and the estimated
costs to be paid by the Contractor. If the Contractor fails to pay its share of said estimated costs, Western shall
have the right, after giving sixty (60) days' written notice to the Contractor, to terminate the applicable facility
installation provisions to the contract and require the removal of the Contractor's facilities.
26. Modification of Western Facilities.
Western reserves the right, at any time, to modify its facilities. Western shall keep the Contractor
informed of all planned modifications to Western facilities which impact the facilities installation pursuant to the
contract. Western shall permit the Contractor to change or modify its facilities, in a manner satisfactory to and at
no cost or expense to Western, to retain the facilities interconnection pursuant to the contract. At the Contractor's
option, Western shall cooperate with the Contractor in planning alternate arrangements for service which shall be
implemented at no cost or expense to Western. The Contractor and Western shall modify the contract, as
necessary, to conform to the new facilities arrangements.
27. Transmission Rights.
If the contract involves an installation which sectionalizes a Western transmission line, the Contractor
hereby agrees to provide a transmission path to Western across such sectionalizing facilities at no cost or expense
to Western. Said transmission path shall be at least equal, in terms of capacity and reliability, to the path in the
Western transmission line prior to the installation pursuant to the contract.
28. Construction and Safety Procedures.
28.1 The Contractor hereby acknowledges that it is aware of the hazards inherent in high-voltage
electric lines and substations, and hereby assumes full responsibility at all times for the adoption and use of
necessary safety measures required to prevent accidental harm to personnel engaged in the construction,
inspection, testing, operation, maintenance, replacement, or removal activities of the Contractor pursuant to the
contract. The Contractor and the authorized employees, agents, and subcontractors of the Contractor shall comply
with all applicable safety laws and building and construction codes, including the provisions of Chapter 1 of the
Power System Operations Manual, entitled Power System Switching Procedure, and the Occupational Safety and
Health Administration regulations, Title 29 C.F.R. §§ 1910.and 1926, as amended or supplemented. In addition to
the safety program required herein, upon request of the United States, the Contractor shall provide sufficient
information to demonstrate that the Contractor's safety program is satisfactory to the United States.
28.2 The Contractor and its authorized employees, agents, and subcontractors shall familiarize
themselves with the location and character of all the transmission facilities of Western and interconnections of
others relating to the work performed by the Contractor under the contract. Prior to starting any construction,
installation, or removal work, the Contractor shall submit a plan of procedure to Western which shall indicate the
sequence and method of performing the work in a safe manner. No work shall be performed by the Contractor, its
employees, agents, or subcontractors until written authorization to proceed is obtained from Western.
28.3 At all times when the Contractor, its employees, agents, or subcontractors are performing
activities of any type pursuant to the contract, such activities shall be under supervision of a qualified employee,
agent, or subcontractor of the Contractor who shall be authorized to represent the Contractor in all matters
pertaining to the activity being performed. The Contractor and Western will keep each other informed of the
names of their designated representatives at the site.
Effective September 1, 2007
28.4 Upon completion of its work, the Contractor shall remove from the vicinity of the right-of-
way of the United States all buildings, rubbish, used materials, concrete forms, and other like material belonging to
the Contractor or used under the Contractor's direction, and in the event of failure to do so the same may be
removed by Western at the expense of the Contractor.
28.5 In the event the Contractor, its employees, agents, or subcontractors fail to comply with any
requirement of this Provision, or Provision 21 (Inspection and Acceptance) herein, Western or an authorized
representative may issue an order to stop all or any part of the work until such time as the Contractor demonstrates
compliance with the provision at issue. The Contractor, its employees, agents, or subcontractors shall make no
claim for compensation or damages resulting from such work stoppage.
29. Environmental Compliance.
Facilities installed under the contract by any parry shall be constructed, operated, maintained,
replaced, transported, and removed subject to compliance with all applicable laws, including but not limited to the
National Historic Preservation Act of 1966, 16 U.S.C. §§ 470x-6, the National Environmental Policy Act of 1969,
42 U.S.C. §§ 4321-4347, the Endangered Species Act of 1973, 16 U.S.C. §§ 1531-1544, and the Archaeological
Resources Protection Act of 1979, 16 U.S.C. §§ 470aa-470mm, and the regulations and executive orders
implementing these laws, as they may be amended or supplemented, as well as any other existing or subsequent
applicable laws, regulations, and executive orders.
30. Responsibility for Regulated Materials.
When either party owns equipment containing regulated material located on the other party's
substation, switchyard, right-of-way, or other property, the equipment owner shall be responsible for all activities
related to regulated materials in such equipment that are necessary to meet the requirements of the Toxic
Substances Control Act, 15 U.S.C. §§ 2601-2692, the Resource Conservation and Recovery Act, 42 U.S.C. §§
6901-6992k, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§
9601-9675, the Oil Pollution Act of 1990, 33 U.S.C. §§ 2702-2761, the Clean Water Act, 33 U.S.C. §§ 1251-1387,
the Safe Drinking Water Act, 42 U.S.C. §§ 300f j26, and the regulations and executive orders implementing these
laws, as they may be amended or supplemented, and any other existing or subsequent applicable laws, regulations,
and executive orders. Each party shall label its equipment containing regulated material in accordance with
appropriate laws and regulations. If the party owning the equipment does not perform activities required under
appropriate laws and regulations within the time frame specified therein, the other parry may perform or cause to
be performed the required activities after notice to and at the sole expense of the party owning the equipment.
VI. OTHER PROVISIONS.
31. Authorized Representatives of the Parties.
Each party to the contract, by written notice to the other, shall designate the representative(s) who is
(are) authorized to act in its behalf with respect to those matters contained in the contract which are the functions
and responsibilities of the authorized representatives of the parties. Each party may change the designation of its
authorized representative(s) upon oral notice given to the other, confirmed promptly by written notice.
Effective September 1, 2007
32. Effect of Section Headings.
Section headings or Provision titles appearing in the contract or these General Power Contract
Provisions are inserted for convenience only and shall not be construed as interpretations of text.
33. Operating Guidelines and Procedures.
The parties to the contract may agree upon and put into effect from time to time, such other written
guidelines and procedures as may be required in order to establish the methods of operation of the power system to
be followed in the performance of the contract.
34. Uncontrollable Forces.
Neither party to the contract shall be considered to be in default in performance of any of its
obligations under the contract, except to make payment as specified in Provision 13 (Billing and Payment) herein,
when a failure of performance shall be due to an uncontrollable force. The term "uncontrollable force" means any
cause beyond the control of the party affected, including but not restricted to, failure of or threat of failure of
facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor
dispute, labor or material shortage, sabotage, restraint by court order or public authority and action or nonaction
by, or failure to obtain the necessary authorizations or approvals from, any governmental agency or authority,
which by exercise of due diligence such parry could not reasonably have been expected to avoid and which by
exercise of due diligence it shall be unable to overcome. Nothing contained herein shall be construed to require a
party to settle any strike or labor dispute in which it may be involved. Either party rendered unable to fulfill any of
its obligations under the contract by reason of an uncontrollable force shall give prompt written notice of such fact
to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch.
35. Liability.
35.1 The Contractor hereby agrees to indemnify and hold harmless the United States, its
employees, agents, or contractors from any loss or damage and from any liability on account of personal injury,
death, or property damage, or claims for personal injury, death, or property damage of any nature whatsoever and
by whomsoever made arising out of the Contractors', its employees', agents', or subcontractors' construction,
operation, maintenance, or replacement activities under the contract.
35.2 The United States is liable only for negligence on the part of its officers and employees in
accordance with the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b), 1346(c), 2401(b), 2402, 2671, 2672, 2674-
2680, as amended or supplemented.
36. Cooperation of Contracting Parties.
If, in the operation and maintenance of their respective power systems or electrical equipment and the
utilization thereof for the purposes of the contract, it becomes necessary by reason of any emergency or
extraordinary condition for either party to request the other to furnish personnel, materials, tools, and equipment
for the accomplishment thereof, the party so requested shall cooperate with the other and render such assistance as
the party so requested may determine to be available. The party making such request, upon receipt of properly
itemized bills from the other party, shall reimburse the party rendering such assistance for all costs properly and
reasonably incurred by it in such performance, including administrative and general expenses, such costs to be
determined on the basis of current charges or rates used in its own operations by the party rendering assistance.
Issuance and payment of bills for services provided by Western shall be in accordance with Provisions 13 (Billing
10
Effective September 1, 2007
and Payment) and 14 (Nonpayment of Bills in Full When Due) herein. Western shall pay bills issued by the
Contractor for services provided as soon as the necessary vouchers can be prepared which shall normally be within
twenty (20) days.
37. Transfer of Interest in Contract or Change in Preference Status.
37.1. No voluntary transfer of the contract or of the rights of the Contractor under the contract shall
be made without the prior written approval of the Administrator of Western. Any voluntary transfer of the contract
or of the rights of the Contractor under the contract made without the prior written approval of the Administrator
of Western may result in the termination of the contract; Provided, That the written approval of the Administrator
shall not be unreasonably withheld; Provided further, That if the Contractor operates a project financed in whole or
in part by the Rural Utilities Service, the Contractor may transfer or assign its interest in the contract to the Rural
Utilities Service or any other department or agency of the Federal Government without such prior written
approval; Provided further, That any successor to or assignee of the rights of the Contractor, whether by voluntary
transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the provisions and conditions of the
contract to the same extent as though such successor or assignee were the original Contractor under the contract;
and, Provided further, That the execution of a mortgage or trust deed, or judicial or foreclosure sales made
thereunder, shall not be deemed voluntary transfers within the meaning of this Provision.
37.2 The Contractor shall maintain its status as an entity eligible for preference in Western's sale
of Federal power pursuant to Reclamation law, as amended and supplemented.
37.3 Western shall give the Contractor written notice of Western's proposed determination that the
Contractor has violated Provision 37.1 and Western's proposed action in response to the violation.
37.4 The Contractor shall have 120 days after receipt of Western's notice provided under
Provision 37.3 to submit a written response to Western. The Contractor may also make an oral presentation to the
Administrator during this 120 -day period.
37.5 At any time during this process, the Contractor and Western may agree upon corrective
action to resolve Western's proposed determination that the Contractor is in violation of Provision 37.1..
37.6 Within 30 days of receipt of the Contractor's written response provided under Provision 37.4,
Western will notify the Contractor in writing of its final decision. The Administrator's written notice will include
the intended action, the effective date thereof, and the reasons for taking the intended action. Implementation of
the Administrator's action shall take place no earlier than 60 days from the Contractor's receipt of such notice.
37.7 Any successor to Western shall be subject to all the provisions and conditions of the contract
to the same extent as though such successor were an original signatory to the contract.
37.8 Nothing in this Provision shall preclude any right to judicial review available to the
Contractor under Federal law.
11
Effective September 1, 2007
38. Choice of Law and Forum.
Federal law shall control the obligations and procedures established by this contract and the
performance and enforcement thereof. The forum for litigation arising from this contract shall exclusively be
a Federal court of the United States, unless the parties agree to pursue alternative dispute resolution.
39. Waivers.
Any waivers at any time by either party to the contract of its rights with respect to a default or any
other matter arising under or in connection with the contract shall not be deemed a waiver with respect to any
subsequent default or matter.
40. Notices.
Any notice, demand, or request specifically required by the contract or these Provisions to be in
writing shall be considered properly given when delivered in person or sent by postage prepaid registered or
certified mail, commercial delivery service, facsimile, electronic, prepaid telegram, or by other means with prior
agreement of the parties, to each party's authorized representative at the principal offices of the party. The
designation of the person to be notified may be changed at any time by similar notice. Where facsimile or
electronic means are utilized for any communication covered by this Provision, the sending party shall keep a
contemporaneous record of such communications and shall verify receipt by the other party.
41. Contingent Upon Appropriations and Authorization.
41.1 Where activities provided for in the contract extend beyond the current fiscal year, continued
expenditures by the United States are contingent upon Congress making the necessary appropriations required for
the continued performance of the United States' obligations under the contract. In case such appropriation is not
made, the Contractor hereby releases the United States from its contractual obligations and from all liability due to
the failure of Congress to make such appropriation.
41.2 In order to receive and expend funds advanced from the Contractor necessary for the
continued performance of the obligations of the United States under the contract, additional authorization may be
required. In case such authorization is not received, the Contractor hereby releases the United States from those
contractual obligations and from all liability due to the lack of such authorization.
42. Covenant Against Contingent Fees.
The Contractor warrants that no person or selling agency has been employed or retained to solicit or
secure the contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent
fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the
Contractor for the purpose of securing business. For breach or violation of this warranty, Western shall have the
right to annul the contract without liability or in its discretion to deduct from the contract price or consideration the
full amount of such commission, percentage, brokerage, or contingent fee.
12
Effective September 1, 2007
43. Contract Work Hours and Safety Standards.
The contract, to the extent that it is of a character specified in Section 103 of the Contract Work
Hours and Safety Standards Act (Act), 40 U.S.C. § 3701, as amended or supplemented, is subject to the provisions
of the Act, 40 U.S.C. §§ 3701-3708, as amended or supplemented, and to regulations promulgated by the Secretary
of Labor pursuant to the Act.
44. Equal Opportunity Employment Practices.
Section 202 of Executive Order No. 11246, 30 Fed. Reg. 12319 (1965), as amended by Executive
Order No. 12086, 43 Fed. Reg. 46501 (1978), as amended or supplemented, which provides, among other things,
that the Contractor will not discriminate against any employee or applicant for employment because of race, color,
religion, sex, or national origin, is incorporated herein by reference the same as if the specific language had been
written into the contract, except that Indian Tribes and tribal organizations may apply Indian preference to the
extent permitted by Federal law.
45. Use of Convict Labor.
The Contractor agrees not to employ any person undergoing sentence of imprisonment in performing
the contract except as provided by 18 U.S.C. § 3622(c), as amended or supplemented, and Executive Order No.
11755, 39 Fed. Reg. 779 (1973), as amended or supplemented.
13
Rate Schedule CV-RFS4
(Supersedes Schedule CV-RFS3)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
SCHEDULE OF RATE FOR REGULATION AND FREQUENCY RESPONSE SERVICE
Effective:
October 1, 2011, through September 30, 2019. [Note: This rate schedule was extended by
Rate Order No. WAPA-185 through September 30, 2024.]
Available:
Within the marketing area served by the Western Area Power Administration (Western),
Sierra Nevada Customer Service Region.
Applicable:
To customers receiving Regulation and Frequency Response Service (regulation).
Character and Conditions of Service:
Regulation is necessary to provide for the continuous balancing of resources and
interchange with load and for maintaining scheduled interconnection frequency at 60 -cycles per
second.
Formula Rate:
The formula rate for regulation includes three components:
Component 1:
Annual Revenue Requirement Annual Regulating Capacity (Kilowatt(kW))
The annual revenue requirement includes: (1) the Central Valley Project generation costs
associated with providing regulation, and (2) the non -facility costs allocated to regulation.
The annual regulating capacity is one-half of the total regulating capacity bandwidths
provided by Western under the Interconnected Operations Agreements with Sub -Balancing
Authority (SBA) members.
The penalty for non-performance by an SBA customer who has committed to self -provision
for their regulating capacity requirement will be the greater of 150 percent of Western's actual
costs or 150 percent of the market price.
Western will revise the formula rate resulting from Component 1 based on either of the
following two conditions: (1) updated financial data available in March of each year; or (2) a
change in the numerator or denominator that results in a rate change of at least $0.25 per kW
month.
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory
Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.
The FERC's or other regulatory bodies' accepted or approved charges or credits apply to the
service to which this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC's or other regulatory bodies' accepted or approved
charges or credits in the same manner Western is charged or credited. If FERC's or other
regulatory bodies' accepted or approved charges or credits cannot be passed through directly to
the relevant customer in the same manner Western is charged or credited, the charges or credits
will be passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the Host Balancing Authority (HBA) applied to Western for
providing this service will be passed through directly to the relevant customer in the same
manner Western is charged or credited to the extent possible. If the HBA's costs or credits
cannot be passed through to the relevant customer in the same manner Western is charged or
credited, the charges or credits will be passed through using Component I of the formula rate.
Billing:
The formula rate above will be applied to the regulating capacity bandwidth contained in
the service agreement. Billing will occur monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply to the formula rate under this rate schedule will be
evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash
flow management.
Rate Schedule CV-EID5
(Supersedes Schedule CV-EID4)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
SCHEDULE OF RATE FOR ENERGY IMBALANCE SERVICE
Effective.
The first day of the first full billing period after March 25, 2021, through December 31,
2024.
Available:
Within the marketing area served by the Western Area Power Administration (WAPA),
Sierra Nevada Customer Service Region (SN).
Applicable:
To customers receiving Energy Imbalance (EI) Service.
Character and Conditions of Service:
EI Service is provided when a difference occurs between the scheduled and the actual
delivery of energy to a load within the Sub -Balancing Authority (SBA) over an hour or in
accordance with approved policies and procedures. The deviation, in megawatts, is the net
scheduled amount of energy minus the net metered (actual delivered) amount.
EI Service uses the deviation bandwidth that is established in the service agreement or
Interconnected Operations Agreements.
Formula Rate:
The formula rate for EI Service includes three components:
Component l:
El Service is applied to deviations as follows unless otherwise dictated by contract or
policy: (1) deviations within the bandwidth will be tracked and settled financially, at the greater
of the California Independent System Operator (CAISO) market price, or WAPA-SN's actual
cost; (2) negative deviations (under -delivery), outside the deviation bandwidth, will be charged
the greater of 150 -percent of the CAISO market price or 1.50 -percent of WAPA-SN's actual cost;
and (3) positive deviations (over -delivery), outside the deviation bandwidth, will be lost to the
system, except for any hour when WAPA-SN incurs a cost to dispose of the energy, in which
event the responsible party will bear that cost.
Deviations that occur as a result of actions taken to support reliability will be resolved in
accordance with existing contractual requirements. Such actions include reserve activations or
uncontrolled event responses as directed by the responsible reliability authority such as SBA,
Host Balancing Authority (HBA), Reliability Coordinator, or Transmission Operator.
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory
Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.
FERC's or other regulatory bodies' accepted or approved charges or credits apply to the service
to which this rate methodology applies. When possible, WAPA-SN will pass through directly
to the relevant customer FERC's or other regulatory bodies' accepted or approved charges or
credits in the same manner WAPA-SN is charged or credited. If FERC's or other regulatory
bodies' accepted or approved charges or credits cannot be passed through directly to the relevant
customer in the same manner WAPA-SN is charged or credited, the charges or credits will be
passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the HBA applied to WAPA-SN for providing this service will
be passed through directly to the relevant customer in the same manner WAPA-SN is charged or
credited to the extent possible. If the RBA's charges or credits cannot be passed through to the
relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits
will be passed through using Component 1 of the formula rate.
Billing:
Billing for negative deviations outside the bandwidth, or as otherwise required, will occur
monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply to the formula rate under this rate schedule will be
evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash
flow management.
Rate Schedule CV-GID2
(Supersedes Schedule CV -GID I)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
SCHEDULE OF RATE FOR GENERATOR IMBALANCE SERVICE
Effective.
The first day of the first full billing period after March 25, 2021, through December 31,
2024.
Available:
Within the marketing area served by the Western Area Power Administration (WAPA),
Sierra Nevada Customer Service Region (SN).
Applicable:
To generators receiving Generator Imbalance (GI) Service.
Character and Conditions of Service:
GI Service is provided when a difference occurs between the scheduled and actual delivery
of energy from an eligible generation resource within the Sub -Balancing Authority (SBA), over
an hour, or in accordance with approved policies. The deviation in megawatts is the net
scheduled amount of generation minus the net metered output from the generator's (actual
generation) amount.
GI Service is subject to the deviation bandwidth established in the service agreement or
Interconnected Operations Agreements.
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The formula rate for the GI Service has three components:
Component 1:
GI Service is applied to deviations as follows unless otherwise dictated by contract or
policy: (1) deviations within the bandwidth will be tracked and settled financially at the greater
of the California Independent System Operator (CAISO) market price or WAPA-SN's actual.
cost; (2) negative deviations (under -delivery), outside the deviation bandwidth, will be charged
the greater of 150 -percent of the CAISO market price or 150 -percent of WAPA-SN's actual cost;
and (3) positive deviations (over -delivery), outside the deviation bandwidth, will be lost to the
system, except for any hour when WAPA-SN incurs a cost to dispose of the energy, in which
event the responsible party will bear that cost.
Deviations that occur as a result of actions taken to support reliability will be resolved in
accordance with existing contractual requirements. Such actions include reserve activations or
uncontrolled event responses as directed by the responsible reliability authority such as SBA,
Host Balancing Authority (HBA), Reliability Coordinator, or Transmission Operator.
To the extent that an entity incorporates intermittent resources, deviations will be charged as
follows unless otherwise dictated by contract or policy: (1) deviations within the bandwidth
will be tracked and settled financially at the greater of the CAISO market price or WAPA-SN's
actual cost; (2) negative deviations (under -delivery), outside the deviation bandwidth, will be
charged the greater of market price or actual cost (no penalty); and (3) positive deviations
(over -delivery), outside the deviation bandwidth, will be lost to the system, except for any hour
where WAPA-SN incurs a cost, then that cost will be borne by the responsible party.
Intermittent generators serving load outside of WAPA-SN's SBA will be required to
dynamically schedule or dynamically meter their generation to another Balancing Authority.
An intermittent resource, for the limited purpose of these rate schedules, is an electric generator
that is not dispatchable and cannot store its output, and therefore, cannot respond to changes in
demand or respond to transmission security constraints.
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory
Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.
FERC's or other regulatory bodies' accepted or approved charges or credits apply to the service
to which this rate methodology applies. When possible, WAPA-SN will pass through directly
to the relevant customer FERC's or other regulatory bodies' accepted or approved charges or
credits in the same manner WAPA-SN is charged or credited. If FERC's or other regulatory
bodies' accepted or approved charges or credits cannot be passed through directly to the relevant
customer in the same manner WAPA-SN is charged or credited, the charges or credits will be
passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the HBA applied to WAPA-SN for providing this service will
be passed through directly to the relevant customer in the same manner WAPA-SN is charged or
credited to the extent possible. If the RBA's charges or credits cannot be passed through to the
relevant customer in the same manner WAPA-SN is charged or credited, the charges or credits
will be passed through using Component 1 of the formula rate.
Billing:
Billing for negative deviations outside the bandwidth will occur monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply to the formula rate under this rate schedule will be
evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash
flow management.
Rate Schedule CV-EIM4S
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
SCHEDULE OF RATE FOR ENERGY IMBALANCE MARKET
ENERGY IMBALANCE SERVICE
Fffective.
March 25, 2021, through December 31, 2024.
F -M P. 1 191 r_z
Within the marketing area served by the Western Area Power Administration (WAPA),
Sierra Nevada Customer Service Region (SN).
Applicable:
This rate applies to WAPA-SN customers receiving Energy Imbalance (EI) Service when
WAPA-SN, as Transmission Provider, is participating in Energy Imbalance Market (EIM) and
when EIM has not been suspended. To the extent WAPA-SN incurs EIM El Service -related
charges from the EIM Entity during periods of market suspension or contingency, this schedule
will also apply to ensure that WAPA-SN, as Transmission Provider, remains -revenue neutral for
its participation in EIM.
Character and Conditions of Service:
El Service is provided when a difference occurs between the scheduled and the actual
delivery of energy to a load located within the WAPA-SN Sub -Balancing Authority Area
(Sub -BAA). WAPA-SN offers this service when transmission service is used to serve load
within the WAPA-SN Sub -BAA.
Unless subsequently imposed by California Independent System Operator (CAISO) as the
Market Operator (MO) as part of the MO Tariff and promulgated by WAPA through rate
proceedings, there shall be no incremental transmission charge assessed for transmission use
related to the EIM. Transmission Customers must have transmission service rights, as set forth
in Attachment S of WAPA's Tariff.
Formula Rate:
The formula rate for El Service includes three components:
Component 1:
El Service is the deviation of the Transmission Customer's metered load compared to the
load component of the Transmission Customer Base Schedule settled as Uninstructed Imbalance
Energy (UIE) for the period of the deviation at the applicable Load Aggregation Point (LAP)
price where the load is located.
Unless such charges are allocated to the Transmission Customer directly by Balancing
Authority of Northern California (BANC) as the EIM Entity, a Transmission Customer will be
responsible for any pass-through charges and/or credits associated with applicable El Service
charges allocated to WAPA-SN, as Transmission Provider, for its participation in the EIM, in
accordance with this rate schedule. WAPA-SN will sub -allocate load charges based on a
Transmission Customer's load ratio share.
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory
Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.
FERC's or other regulatory bodies' accepted or approved charges or credits apply to the service
to which this rate methodology applies. When possible, WAPA-SN will pass through directly
to the relevant customer FERC's or other regulatory bodies' accepted or approved charges or
credits in the same manner WAPA-SN is charged or credited. If FERC's or other regulatory
bodies' accepted or approved charges or credits cannot be passed through directly to the relevant
customer in the same manner WAPA-SN is charged or credited, the charges or credits will be
passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the Host Balancing Authority (HBA) applied to WAPA-SN for
providing this service will be passed through directly to the relevant customer in the same
manner WAPA-SN is charged or credited to the extent possible. If the RBA's charges or credits
cannot be passed through to the relevant customer in the same manner WAPA-SN is charged or
credited, the charges or credits will be passed through using Component I of the formula rate.
Billing:
Billing will occur monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply to the formula rate under this rate schedule will be
evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash
flow management.
Rate Schedule CV-EIM9S
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
SCHEDULE OF RATE FOR ENERGY IMBALANCE MARKET
GENERATOR IMBALANCE SERVICE
Effective.
March 25, 2021, through December 31, 2024.
Available:
Within the marketing area served by the Western Area Power Administration (WAPA),
Sierra Nevada Customer Service Region (SN).
Applicable:
This rate applies to WAPA-SN customers receiving Generator Imbalance (GI) Service
when WAPA-SN, as Transmission Provider, is participating in Energy Imbalance Market (EIM)
and when EIM has not been suspended. To the extent WAPA-SN incurs EIM GI
Service -related charges from the EIM Entity during periods of market suspension or
contingency, this schedule will also apply to ensure WAPA-SN, as Transmission Provider,
remains revenue -neutral for its participation in EIM.
Character and Conditions of Service:
GI Service is provided when a difference occurs between the output of EIM
Non -Participating Resource located in the WAPA-SN Sub -Balancing Authority (Sub -BAA), as
reflected in the resource component of the Transmission Customer Base Schedule, and the
delivery schedule from that generator to (1) another BAA, (2) the Balancing Authority of
Northern California (BANC) BAA, or (3) a load within the WAPA-SN Sub -BAA.
Unless subsequently imposed by California Independent System Operator (CAISO) as the
Market Operator (MO) as part of the MO Tariff and promulgated by WAPA through rate
proceedings, there shall be no incremental transmission charge assessed for transmission use
related to the EIM. Transmission Customers must have transmission service rights, as set forth
in Attachment S of WAPA's Tariff.
Formula Rate:
The formula rate for GI Service includes three components:
Component 1:
Unless such charges are allocated to the Transmission Customer directly by BANC as the
EIM Entity, a Transmission Customer shall be responsible for any pass-through charges and/or
credits associated with applicable GI Service charges allocated to WAPA-SN, as Transmission
Provider, for its participation in EIM, in accordance with this rate schedule. Such charges will
be included due to operational adjustments of any affected Interchange. WAPA-SN will
directly assign charges and/or sub -allocate charges based on the Transmission Customer's load
ratio share.
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory
Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.
FERC's or other regulatory bodies' accepted or approved charges or credits apply to the service
to which this rate methodology applies. When possible, WAPA-SN will pass through directly
to the relevant customer FERC's or other regulatory bodies' accepted or approved charges or
credits in the same manner WAPA-SN is charged or credited. If FERC's or other regulatory
bodies' accepted or approved charges or credits cannot be passed through directly to the relevant
customer in the same manner WAPA-SN is charged or credited, the charges or credits will be
passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the Host Balancing Authority (HBA) applied to WAPA-SN for
providing this service will be passed through directly to the relevant customer in the same
manner WAPA-SN is charged or credited to the extent possible. If the RBA's charges or credits
cannot be passed through to the relevant customer in the same manner WAPA-SN is charged or
credited, the charges or credits will be passed through using Component 1 of the formula rate.
Billing:
Billing will occur monthly.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply to the formula rate under this rate schedule will be
evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash
flow management.