HomeMy WebLinkAboutAgenda Report - October 7, 1992 (60)4�
CIW OF-
LODI COUNCIL COMMUNICATION
AGENDA TITLE: Agreement for Renewal of the Electric Supply Contract
with Western Area Power Administration
NIEH'43 DATE: October 7, 1992
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve execution of the Agreement
for Renewal of the Electric Supply Contract with Western
Area Power Administration (Agreement) on file in the
office of the City Clerk.
BACKGROUND Il`4q3RMAJON Western Area Power Administration (Western) is a power
marketing agency within the Department of Energy which
controls and administers all Central Valley Project power
transactions including sale of power and energy to the
City of Lodi pursuant to Contract No. DE-MS65-82WP59015, dated February 24, 1982, as
amended or supplemented. Contract No. DE-MS65-82WP59015 is subject to termination
June 30, 1994 unless renewed in appropriate manner.
Western has submitted an Agreement
for Renewal
of the
Electric
Supply Contract
(Agreement) pursuant to a Federal Register Notice which
provides
for renewal of
existing Western allocations in like
amounts to
existing
customers
through 2004.
Approval of the Agreement of renewal
will ensure
proper execution
of the necessary
documents to assure continued access
by the City
to this
valuable,
low-cost source
of power and energy.
This Agreement for renewal shall become effective on the date of execution and,
subject to prior termination as provided therein, shall remain in effect until
midnight of December 31, 2004. Contract No. DE-MS65-82WP59015, dated February 24,
1982, between the City of Lodi and Western, as amended or supplemented, shall
terminate upon the effective date of this Agreement.
FUNDING: lib applicable.
c: City Attorney
APPROVED
Henry J. Rice
Electric Utility Director
THOMAS A. P€TEF
City Manager
CC -1
CCWAPA. 1/ CO. COM
RESOLUTION NO. 92-168
APPROVE EXECUTION OF THE AGREEMENT
FOR RENEWAL OF THE ELECTRIC SUPPLY CONTRACT WITH
WESTERN AREA POWER ADMINISTRATION
WHEREAS, Western Area Power Administration (western) is a
power marketing agency within the Department of Energy which controls
and administers all Central Valley Project power transactions including
sale of power and energy to the City of Lodi pursuant to Contract No.
DE-MS65-82WP59015, dated February 24, 1382, as amended or supplemented;
and
WHEREAS, Contract No. DE-MS65-82WPS901S is subject to
termination June 30, 1994 unless renewed in appropriate manner; and
WHEREAS, Western has submitted an Agreement for Renewal cf
the Electric Supply Contract (Agreement) pursuant to a Federal Register
Notice which provides for renewal of existing Western allocations in
like amounts to existing customers through 2004; and
WHEREAS. this Agreement for renewal shall become effective on
the date of execution and, subject to prior termination as provided
therein. shall remain in effect until midnight of December 31, 2004; and
WHEREAS, Contract No. D8-MS65-82WP59015, dated February 24,
1982, between the City of Lodi and Western, as amended or supplemented,
shall terminate upon the effective date of this Agreement; and
WHEREAS, approval of the Agreement of renewal will ensure
proper execution of the necessary documents to assure continued access
by the City to this valuable, low-cost source of power and energy.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby
authorizes renewal of the Contract for Electric Service between the
City of Lodi and Western pursuant to the Agreement.
BB IT FURTHER RESOLVED that the City Manager is authorized to
execute the Agreement.
Dated: October 7. 1992
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I hereby certify that Resolution No. 92-168 was passed and
adopted by the Lodi City Council in a regular meeting held October 7,
1992 by the following vote:
Ayes: Council Members - Hinchman, Pennino, Sieglock,
Snider and Pinkerton (Mayor)
Noes= Council Members - None
Absent: Council Members - Non
Alice M. Reimche
City Clerk
92-168
RES92168/TXTA.02J
Contract No. 92 -SAO -20056
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE TO
CITY OF LODI
Contract No. 92 -SAO -20056
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE TO THE
CITY OF LODI
Section Page
1.
PREAMBLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2,
EXPLANATORY RECITALS . . . . . . . . . . . . . . . . . . . . . . .
1
3.
AGREEMENT.. . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
4,
TERMINATION OF EXISTING CONTRACT . . . . . . . . . . . . . . . .
. 3
5,
TERMOFCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . .
4
6,
DEFINITION OF TERMS . . . . . . . . . . . . . . . . . . . . . . . .
4
7,
ELECTRIC SERVICE TO BE FURNISHED . . . . . . . . . . . . . . . .
. 5
8,
WITHDRAWAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . .
7
9,
RESALE OF ELECTRIC SERVICE . . . . . . . . . . . . . . . . . . .
9
10.
AUXILIARY POWER SERVICE . . . . . . . . . . . . . . . . . . . . . .
10
11.
ENERGY MANAGEMENT PROGRAM . . . . . . . . . . . . . . . . . . . . .
II
12,
SCHEWLEOFRATES.. . . . . . . . . . . . . . . . . . . . . . . .
12
13.
POWER AND ENERGY DELIVERIES . . . . . . . . . . . . . . . . . . . .
12
14.
ENFORCEABILITY . . . . . . . . . . . . . . . . . . . . . . . . . .
13
15.
GENERAL POWER CONTRACT PROVISIONS . . . . . . . . . . . . . . . .
. 13
16.
EXHIBITS MADE PART OF CONTRACT . . . . . . . . . . . . . . . . .
. 13
RESOLUTION
SCHEDULE FOR RATES FOR COMMERCIAL FIRM POUER SERVICE
RATE SCHEDULE FOR THIRD PARTY TRANSMISSION
GENERAL POWER CONTRACT PROVISIONS (JANUARY 3, 1989)
EXHIBIT A (CONTRACT RATE OF DELIVERY)
EXHIBIT B (OPERATING AGREEMENT INCLUDING QUANTITATIVE DETERMINATIONS)
EXHIBIT C (TRANSMISSION, DELIVERY, AND MEASUREMENT CONDITIONS)
i
I Contract No. 92 -SAO -20056
2
3 UNITED STATES
DEPARTMENT OF ENERGY
4 WESTERN AREA POWER ADMINISTRATION
5 CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE TO
6
CITY OF LODI
7
8
9 1. PREAMBLE: This Contract is made this 7th day of (k-t•ntxer ,
10 19_9Z, pursuant to the Acts of Congress approved June 17, 1902, (32 Stat. 388);
11 August 26, 1937, (50 Stat. 844); August 4, 1939, (53 Stat. 1187); August 12,
12 1955, (69 Stat. 719); October 23, 1962, (76 Stat. 1173); and August 4, 1977,
13 (91 Stat. 565); and Acts amendatory or supplementary to the foregoing Acts;
14 between the UNITED STATES OF AMERICA (United States), acting by and through
15 the Administrator, Western Area Power Administration, Department of Energy,
16 hereinafter called Western, represented by the officer executing this
17 Contract, or a duly appointed successor, hereinafter called the Contracting
18 Officer; and the CITY OF LODI, a municipal corporation, organized and existing
under the laws of the State of California, hereinafter called the Contractor
19
zo or Lodi, its successors and assigns; each sometimes hereinafter individually
n called the Party, and both sometimes hereinafter collectively called the
Parties.
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2. EXPLANATORY RECITALS:
24
2.1 Western operates an electric power system including transmission
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facilities as a part of the Central Valley Project (CVP) and Western
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owns, and has entitlements to, portions of the Pacific Northwest -Pacific
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Southwest AC Intertie and the Cal fornia-Oregon Transmission Project
(COTP) .
2.2 The Contractor operates an electric power distribution system
hereinafter referred to as the Contractor's system.
2.3 Western has entered into Contract No. 14-06-200-2948A
(Contract 2948A) dated July 31, 1967, as amended, with Pacific Gas and
Electric Company (PG&E), which provides for certain firming services for
Western's preference customers and said Contract 2958A provides for,
among other things, a license to Western to furnish electric power to
the Contractor over the transmission system of PG&E.
2.4 Withdrawal of Power may be necessary to meet preference customer
requirements in Trinity, Tuolumne, and Calaveras Counties, California;
to meet project use requirements of the CVP including those of the
Federal San Luis Unit; for load -level limitations; for increased use of
Power by Westland Water District; and due to termination of Contract
2948A.
2.5 Western, in its settlement of the lawsuit entitled The City of
Santa Clara v. Andrus, has had electric power made available to serve
the Contractor according to the terms of the Memorandum of Understanding
dated February 8, 1980, between the parties to said lawsuit, hereinafter
referred to as the Memorandum of Understanding.
4
1 2.6 Under Appendix E [Letter Agreement Real -Time Scheduling) dated
2 July 22, 1983, as supplemented, of the Northern California Power Agency -
3 Pacific Gas and Electric Company Interconnection Agreement dated
4 November 26, 1991, Western and the Northern California Power Agency
5 (NCPA) have developed procedures to schedule the Contractor's CVP Power
6 on a real-time basis.
7
8 2.7 Western and the Contractor have agreed that the Contractor will
9 continue to receive 0.600 MU of additional CRD through June 30, 1994,
1C pursuant to the settlement agreement set forth in Amendment No. 3 to
11 Contract No. DE-MS65-82WP59015 between Western and the Contractor.
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1: 2.8 Western has arranged for the purchase of power from various
14 suppliers to supplement CVP generation to meet Western's obligations to
1`. its customers, including the Contractor, and may enter into other
lE similar agreements in the future.
1;
11 3. AGREEMENT:
1! The Parties agree to the terms and conditions set forth herein.
21
2: 4. TERMWICN CF EXISTING CONTRACT:
2, Contract No. DE-MS65-82WP59015, dated February 24, 1982, between the
2 Contractor and Western, as amended or supplemented, shal terminate upon tie
24 effective date of this Contract.
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1 5. TERM OF CONTRACT:
2 This Contract shall become effective on the date of execution and, subject to
3 prior termination as otherwise provided for herein, shall remain in effect
4 until midnight of December 31, 2004.
5
6 6. DEFINITION OF TERMS:
7 As used herein, the following terms have the following meanings when used with
8 initial capitalization, whether singular or plural:
9
10 6.1 "Associated Energy" means that energy supplied at the Contractor's
11 system load factor or as supplied under the terms and conditions of any
12 applicable scheduling agreement.
1-
14 6.2 "Contract Rate of Delivery" (CRD) means that amount of CVP
1! capacity Western has contractually obligated to the Contractor, which
1E may be increased or decreased pursuant to the terms and conditions of
IJ this Contract.
It
1! 6.3 "Final Withdrawal Procedures" means the procedures for withdrawing
21 the Contractor's CRD adopted pursuant to rulemaking proceedings and
2' outlined in the "Sacramento Area Office; Central Valley Project; Final
2: Withdrawal Procedures; Notice" published in the Federal Register dated
2: March 5, 1986, (51 FR 7702) as they may be amended or superseded.
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6.4 "Fiscal Year" means each period during the term of this Contract
beginning at 0000 hour on ictober 1 and ending at 2400 hours on the
following September 30.
6.5 "Long -Term Firm Power" means firm power allocated by Western and
subject to withdrawal pursuant to the terms and conditions specified in
this Contract.
6.6 "Power" means capacity and Associated Energy.
6.7 "Westlands Withdrawable Power" means Long -Term Firm Power which is
withdrawable to meet the load requirements of Westlands Water District
pursuant to the terms and conditions of this Contract and as specified
in the Final Withdrawal Procedures.
7. ELECTRIC SERVICE 10 BE FURNISHEDD:
7.1 Western, under the terms and conditions stipulated herein, will
furnish, deliver, and measure Power to the Contractor under the delivery
conditions and at the point(s) and voltage(s) specified in Exhibit C.
Said electric service will be furnished over Western's facilities or
facilities of PG&E under the terms and conditions provided in Contract
2948A, as amended, supplemented, or superseded, or under the terms and
conditions of transmission contracts arranged by the Contractor. In the
event PG&E refuses to serve the Contractor on or after the date of
initial service under the terms of Contract 2948A or such supplemental
wheeling or other contracts as may be necessary, the Contractor hereby
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relieves Western of any obligation to provide electric service hereunder
and any liability for failing to provide such electric service; and
Western hereby relieves the Contractor of its obligations hereunder. If
the period of time which PG&E may legally refuse such service is
determined by a final order of a court or regulatory agency having
jurisdiction, then the Parties are so relieved under this section only
for that period of time. The Parties recognize that if Contract 2948A
is terminated, Western may not have the ability to provide the same
services or level of service or provide services at the same or similar
rates as are specified in this Contract. Western agrees to make good
faith efforts, as determined by Western, to continue to provide power
and services in the same amounts as specified in this Contract in the
event that Contract 2948A is terminated. Subject to the determinations
in Exhibit B, Power will be delivered in amounts which the Contractor
may from time to time require up to the CRD. The CRD shall be specified
in Exhibit A herein.
7.2 Western and the Contractor agree and understand that Western will
deliver an additional CRD of 0.600 MW to the Contractor through June 30,
1994, as provided in the settlement agreement set forth in Amendment
No. 3 to Contract No. DE-MS65-82WP59015 between Western and the
Contractor. The additional CRD shall be set forth in Exhibit A and
shall be subject to the provisions of this Contract.
7.3 At times, the power requirements under this and similar agreements
of Western with other preference customers for electric service will be
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I Px, s of the Power available from the CVP powerplants. Such
requirements will be supplied by Western through purchases and in
accordance with Contract 2948A, up to such amounts as are regtired to
bring the Power deliveries under said preference customer contracts in
any month or year up to the respective maximum amounts of firming Power
that PG&E is obligated to supply pursuant to Contract 2948A. Western
shall not be obligated to furnish Power hereunder in amounts which,
together with amounts to be furnished under other preference customer
contracts, are in excess of the limitations stipulated in
Contract 2948A.
8. WITHDRAWAL PROVISIONS
8.1 The Parties agree and understand it 1, of Power may be
necessary to meet preference t raquirements in the initY
[uo i and Calaveras 11 :1 i in c ii th the
requirements of i Law, and nursuant to the III thdrawal
Procedures In of to supply ow to the a ne preference
customers, Western, upon a minimum of 90 days advance an notice to
the Cant may i all or a part of the Contractor's CRD as
specified in Exhibit A herein.
8.2 The Parties agree and understand that withdrawal of Power may be
necessary to meet project use requirements of the CVP, including
operation of the Federal San Luis Unit. In order to meet Oroject use
requirements of the CVP, Western, upon a minimum of 90 days advance
7
1 written notice to the Contractor, may withdraw all or part of the
2 Contractor's CRD as specified in Exhibit A.
3
4 8.3 Availability of Power to Western in an amount adequate to meet the
5 Contractor's CRD under this Contract is dependent upon provisions under
6 Contract 2948A. Western may withdraw all or part of the Contractor's
7 CRD hereunder to maintain load limitations specified in Contract 2948A
8 pursuant to the Final Withdrawal Procedures. Western may also withdraw
9 all or part of the Contractor's CRD hereunder effective on the
10 termination of Contract 2948A. Western shall give written notice of the
11 withdrawal of CRD to the Contractor 90 days in advance of the effective
12 date of the withdrawal. Upon receipt of notice of withdrawal of the
13 Contractor's CRD pursuant to this section, the Contractor may terminate
14 this Contract by giving written notice of termination to Western within
15 30 days after receipt of such withdrawal notice, but not thereafter.
16
17 8.4 The Parties agree and understand that Westlands Withdrawable Power
iF may be withdrawn pursuant to the Final Withdrawal Procedures. In order
i5 to supply Uestlands Withdrawable Power requirements, Western may, upon
2( 90 days advance written notice, reduce the Contractor's then -effective
21 CRD in accordance with the Final Withdrawal Procedures; Provide ,
2e however, that accumulated reductions in such CRD shall not exceed that
2 portion attributable to Westlands Withdrawable Power as specified in
24 Exhibit A.
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9. RESALE OF ELECTRIC SERVICE:
9.1 The Contractor understands and agrees that, upon execution of this
Contract:
9.1.1 The benefits of Federal power shall be made available to
its consumers at rates that are established at the lowest possible
level, consistent with sound business principles, in an open and
public manner, and the Contractor will so demonstrate to Western
upon request.
9.1.2 Consumers receiving the benefits of Federal power will be
supplied with information such that they can separately identify
the composite energy and capacity costs, stated in mills per kWh,
of Federal power and non -Federal power -
9.2 The Contractor may demonstrate compliance with this Resale Section
by making available to its customers by February 1 of each year, a
statement which separately identifies the Contractor's unit costs for
Federal power and for non -Federal power, and the magnitude and type of
other costs charged to the Contractor's customers during the previous
year. The Contractor may make this information available to its
customers by including the informational statement with the customer's
power bill, by publishing the information in a newspaper of general
circulation in the area served by the Contractor, or by any other method
mutually agreed upon between Western and the Contractor. A copy of each
statement shall also be provided to Western. Upon request the
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Contractor will provide the supporting information far its statement to
Western.
9.3 The Contractor will furnish to Western, for the information of the
United States, a copy of each schedule of resale rates in effect on the
date of execution of this Contract and, upon adoptio-t, a copy of each
schedule of rates thereafter adopted.
9.4 The Contractor will, to the extent that different rules are not
prescribed by State laws or by State or Federal agencies, maintain
proper books of account in accordance with the Uniform System of
Accounts prescribed for public utilities and licensees by the Federal
Energy Regulatory Commission.
9.5 Failure to comply with the provisions of this Resale Section may
result in the loss of all or a part of the resources committed to the
Contractor under this Contract, as conclusively determined by Western's
Administrator. The Contractor will be given written notice of
noncompliance with this Resale Section and will be given opportunity to
comment prior to any final action by Western.
10. AUXILIARY POWER SERVICE:
10.1 Notwithstanding any provision of the exhibits attached hereto, the
Contractor may satisfy its Power needs, which are in excess of its CRD,
from other sources; Provided, That such auxiliary power service shall be
10
I in accordance with the terms and procedures specified in this section
2 and as may be specified in Exhibit B.
3
4 10.2 Prior to the utilization of any such auxiliary power service or
5 supply, the Contractor shall enter into an operating agreement with
6 Western defining the procedures by which the amount of Power supplied by
7 Western will be determined. The Contractor assumes all responsibility
E for obtaining such auxiliary power supply as the Contractor determines
S to be necessary to its operations.
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11 11. ENERGY MANAGEMENT PROGRAM:
li 11.1 The Contractor shall have an on-going energy management program in
L accordance with requirements published by Western in the Federal
11 Resister following an appropriate public process, or any subsequent
1! amendments thereto.
11
1: 31.2 The Contractor shall develop an energy management program suitable
l� for its own size, type, resource needs, and geographic area. Submittal,
1! approval, review, verification, and reporting regarding the energy
21 management program shall take place in accordance with requirements
2 published by Western in the Federal Resister.
2:
2: 11.3 Failure to comply with Western's energy management program will
2' result in penalties as specified in the published program requirements.
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11.4 If requested, and if within its capabilities, Western will provide
guidance and assistance for an energy management program.
12. SCHEDULE OF RATES:
12.1 The Contractor shall pay for the electric service furnished
hereunder in accordance with the rates, charges nd conditions set out
in the Schedule for Rates for Commercial Firm Power Service (CV -F6),
attached hereto and made a part hereof. Such rate schedule may be
modified from time to time in accordance with the General Power Contract
Provisions (GPCP) which are attached hereto and made a part hereof.
12.2 The Contractor shall pay for the transmission service furnished
hereunder in accordance with rates, charges, and conditions set out in
the Schedule of Rates for Third Party Transmission (CV-TPT2), attached
hereto and made a part hereof. Said rate schedule may be modified from
time to time in accordance with the GPCP which are attached hereto and
made a part hereof.
13. POWER AND ENERGY DELIVERIES:
All deliveries of Power by Western to the Contractor shall be in accordance
with procedures set forth in the Contract for Scheduling Service To The
Northern California Howe: Agency Contract No. DE-M065-85WP59098 WA
Contract), as it may be modified or superseded by mutual agreement. For the
purpose of this Contract, NCPA shall be the duly authorized scheduling agent
for the Contractor. If the NCPA Contract 1 s terminated, deliveries of Power
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shall be billed in accordance with Exhibit B on an estimated basis until such
time that arrangements to bill on metered quantities can be instituted.
14. ENFORCEABILITY:
It is not the intent of the Parties that this Contract confer any rights on
third parties to enforce the provisions of the Contract. This Contract can
only be enforced by Western or the Contractor, or their successors or
assigns.
15. GENERAL P0WER CONTRACT PROVISIONS:
The General Power Contract Provisions, effective January 3, 1989, attached
hereto, are hereby made a part of this Contract, the same as if they had been
expressly set forth herein.
16. EXHIBITS MADE PART OF CONTRACT:
Inasmuch as the Contract Rate of Delivery, Operating Agreement, and Delivery
Conditions existing under this Contract may vary during the term hereof, they
will be set forth in Exhibits A, B, and C, respectively. Each of said
exhibits shall become a part of this Contract during the term fixed by its
provisions. Exhibits A, B, and C are attached hereto, and each shall be in
force and effect in accordance with its terms until respectively superseded by
a subsequent exhibit.
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the day and year first above written.
(Seal)
Attest:
.By: � �
cfh i
"" • ice Rt hnche
Title: rit:m rj,rk
WESTERN AREA POWER ADMINISTRATION
By :
Title: Area NLmaaw
Address: 1825 Bell Street, Suite 105
Sacramento, California 95825
CITY OF LODI
iY3bsnas A. Peterson
Titley City Manager
Address: P.Q. Box 3006
Lodi CA 95241-1910
Approvveed� as to fonn:
Bobby W. McNatt
Clay' Attorney
14
Contract No. 92 -SAO -20056
RESOLUTION N0.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
The is authorized, on behalf of the
to execute this Contract with Western Area
Power Administration titled Contract No. 92 -SAO -20056.
Adopted:
Exhibit A
Cit p of Lodi
Contract No. 92 -SAO -20056
EXHIBIT A
(Contract Rate of Delivery)
1. This Exhibit A, made this da of 19_,
art
to be effective under and as a pof ontract No. 92 -SAO -20056, dated
19 19_, (hereinafter called the Contract), shall become
effective on the date of execution of the Contract, and shall remain in effect
until superseded by another Exhibit A; Provided, That this Exhibit A or any
superseding Exhibit A shall be terminated by the termination of the Contract.
4
2.1 On or after the effective date of this Exhibit A through June 30,
1994, the Contract Rate of Delivery shall be 13.836 MU of Long -Term Firm
Power, which includes 0.600 MW of additional CRD as provided in
Subsection 7.2 of this Contract and 8.053 MW of Westlands Withdrawable
Power.
2.2 Beginning on July 1, 1994, the Contract Rate of Delivery shall be
13.236 MW of Long -Term Firm Power, which includes 8.063 MW of Westlands
Withdrawable Power.
3. The original allocation referred to in the Final 1994 Power Marketing
Plan, Central Valley Project, California; as published in the Federal Re4ister
on or about October 5, 1992, shall be 13.236 MW of Long -Term Firm Power, which
includes 1.751 MU of Westlands Withdrawable Power.
Exhibit B
City of Lodi
Contract No. 92 -SAO -20056
EXHIBIT B
(Operating Agreement Including Quantitative Determinations)
1. This Exhibit B, made this day of , 19 ,
to be effective under and as a part of Contract No. 92 -SAO -20056, dated
'19 , (hereinafter called the Contract), shall become
effective on date of execution of the Contract, and shall remain in effect
until superseded by another Exhibit B; Provided, That;
a. This Exhibit B or any superseding Exhibit B shall be terminated by
the termination of the Contract.
b. Section I of this Exhibit B shall terminate upon the termination of
Contract No. DE-M065-85WP59098 between Western and the Northern
California Power Agency (NCPA). Upon the date of termination of said
Contract, Section III of this Exhibit B shall become effective and
binding until a new Exhibit B is executed.
c. It is recognized that the Contractor may desire to change its
electric sc-vice arrangements from time to time and that appropriate
modifications may be required in this Exhibit B. Accordingly, the
Parties will consider a revision to the exhibit if and when the
Contractor desires to change its arrangements. Western reserves
specifically the right to terminate this Exhibit B and require the
substitution of a new exhibit in the event that the electric service
arrangements of the Contractor are altered so that this exhibit no
longer is in accordance with the altered arrangements or the principles
set forth in the Contract.
Contractor's Svstem Requirements
2. The System Definitions and Billing Determinations set forth in this
Operating Agreement are based upon the understanding of the Parties that the
Contractor's electric service arrangements are such that its system
requirements are being supplied from the following sources only:
a. Firm power service from Western.
h Additional power service from other suppliers.
c. Power service from the Contractor's own sources.
1of3
F
b
Exhibit B
City of Lodi
Contract No. 92 -SAO -20056
SECTION I
System Definitions - Schedulinq Service
3. a. The maximum demand for billing purposes shall be the maximum
scheduled half hour delivery of energy to the Contractor by NCPA during
the billing period, not to exceed the Contract Rate of Deliver as set
forth in Exhibit A, and adjusted in accordance with Rate Schedule CV-
TPT2, or its successor.
b. The total energy for billing purposes shall be the absolute half
hour sum of the amounts of energy scheduled to the Contractor by NCPA
during the hilling period, adjusted in accordance with Rate Schedule
CV-TPT2, or its successor.
Billing Determinations - Schedul ino Service
4. a. The Contractor shall pay for all power and energy scheduled
hereunder to its system during such period at the rates provided for in
Section 12 of this Contract.
h The billing period shall be from 0000 on the fir,,* day of the month
to 2400 on the last day of the month. The schedules I 'hourly
energy to the Contractor by NCPA shall be based upon data provided to
the Contracting Officer prior to the fifth working day each month. NCPA
shall provide Western with a complete half-hourly breakdown of its past
month's schedules showing deliveries of Power from Western to the
Contractor.
SECTION II
(To be implemented if Contract No. OE-M065-85WP59098 is terminated
without a successor agreement.)
System Definitions - Metered Service
5. a. The Contractor's System Demand for any billing period shall be the
sum, for the 30 -minute interval in which the sum is largest, of the 30 -
minute integrated demands established during the billing period at the
point(s) of delivery as measured and adjusted if necessary in accordance
with Exhibit C, and of the 30 -minute integrated demands established
during the billing period at any point(s) of delivery at other than
those where Uestern makes deliveries.
2of3
Exhibit B
City of Lodi
Contract No. 92 -SAO -20056
b. The Contractor's System Energy Requirements for any billing period
shall be the sum total of energy delivered during the billing period at
the point(s) of delivery, as measured and adjusted if necessary in
accordance with Exhibit C, and at the point(s) of delivery at other than
those where Western makes deliveries.
Billinq Delerminations - Metered Service
6. a. The billing demand and energy billed for power service in any
billing period in which the Contractor's System Demand is equal to or
less than the Contract Rate of Delivery as set forth in Exhibit A, the
Contractor shall pay for all capacity and energy delivered hereunder to
its system during such period at the rates provided for in Section 12 of
the Contract.
b. (1) The billing demand for firm power service in any billing period
in which the Contractors System Demand is larger than the Conract
Rate of Delivery as set forth in Exhibit A, the Contractor shall pay
for electric service at the rate provided for in Section 12 of the
Contract using the effective Contract Rate of Delivery set forth in
Exhibit A, as the billing demand.
(2) The energy billed for firm power service in any billingperiod
in which the Contractor's Demand is larger than the ContracRate of
Delivery as set forth in Exhibit A, shall be determined by the
following formula:
Energy Billed = B X C
Where: A = The maximum Contract Rate of Delivery for firm power service as
established by Exhibit A of the Contract.
B = Contractor's System Demand as determined pursuant to
Paragraph 5a, Section II.
C - Contractor's System Energy Requirements as determined pursuant
to Paragraph 5b, Section II.
3 of 3
;P
Exhibit C
City of Lodi
Contract No. 92 -SAO -20056
LXKtSI't�
(Transmission, Delivery and Measurement Conditions)
1. This Exhibit C, made this day of 19
to be effective under and as a part of Contract No. 92 -SAO -20056, dated
19 (hereinafter called the Contract), shali
become effective on the date of execution of the Contract, and shall remain in
;r effect until superseded by another Exhibit C; Provided, That;
a. This Exhibit C or any superseding Exhibit C shall be terminated by
the termination of the Contract; and
b. The Contracting Officer reserves the right to terminate this
r Exhibit C and require the substitutios of a new exhibit at such time as
new delivery points or conditinns may be established for additional
electric service.
x
Point of Delivery
2. The Contracting Officer, under terms and conditions stipulated in the
Contract will furnish electric service to the Contractor, from and after the
date of initial service as defined in the Cnn.tract at the points at which the
GO -kV circuits of the Contractor are attached to the 60 -kV circuits of the
Pacific Gas and Electric Company at or near the City of Lodi, California.
3. Capacity and energy furnished hereunder will be delivered to the
Contractor at a nominal delivery voltage of 60 kV.
Amended Schedule CV46
[Supersedes Schedule CV 4 5)
UNITED STATES
DEPARTHCNT OF ENERGY
ULSTERN AREA PONR ADMINISTRATION
Central Valley Project, California
SCHEDULE FOR RATES FOR COMMERCIAL FIRM POwZA SERVICE
Effecti q:
Hay 1, 1988.
Avail able
In the area served by the Central Valley Project (CVP).
491 icable :
Tc, commercial firm power customers for general power service supplied through
one meter', at one point of delivery, unless otherwise provided by contract.
character and Conditions of Service:
Alternating current, 60 hertz, three-phase, delivered and metered at the
voltages and points established by contract.
Honthlv Rate:
Demand Chmarge: The rates listed below shall be the charge per kilowatt of
billing demand. The billing demand is the highest 30-minlite integrated demand
established during the month up to, but not in excess of, the delivery
obligation under the power sales contract.
Effective Dates Demand Rate
May 1, 1988, through September
30, 1989
$6.86
per kilowatt -month
October I, 1989, through September 30, 1991
$7.49
per kilowatt -month
October 1, 1991, through April
30, 1993
$7.74
per kilowatt -month
Energy Charge: For all energy
use up to, but
not in excess of, the maximum
kiloMatthour obligation of the
United States
during the month as established
under the power sales contract,
the rates shall
be:
Effective Dates
Energy Rate
Hay 1, 1988, through September
30, 1989
14.43
mills per kWh
October 1, 1989, through September 30, 1991
15.76
mills per kWh
October 1, 1991, through April
30, 1993
!6.30
mills per kWh
I
Bill ina for Unauthorized Overruns:
For each billing period in which there is a contract violation involving an
unauthorized overrun of the contractual obligation for capacity and/or energy,
such overrun shall be billed at 10 times the applicable rates above.
Transformer loss Adjustment:
If delivery is made at transmission voltage but metered on the low voltage
side of the substation, the meter readings will be increased 2 percent to
compensate for transformer losses, unless otherwise provided for by contract.
Power Factor Adjustment Clause:
(a) A surcharge of 0.25 percent (0.0025) will be assessed against the total
monthly capacity and energy charges at each Point of Delivery (POO), for
each percent or mayor portion thereof (0.5 percent or greater), that a
customer's power factor at such POD is below 95 percent lagging or 95
percent leading.
(b) Power factor will be measured based on the average power factor recorded
over the 30 -minute interval in which the customer's maximum monthly peak
demand at such POD occurs. In the event of multiple occurrences of the
same maximum monthly peaks, the individual peak period with the worst
power factor will be used for billing purposes.
(e) This provision will not apply to points of measurement without
continuous volt-amperes reactive metering .
(d) The Contracting Officer may waive the power factor adjustment for good
cause in whole or in part.
(e) Nopower factor surcharges will be assessed prior to the billing month
of June 1989 to allow CVP customers time to implement power factor
improvement programs.
Revenue Adjustment Clause:
There are two components to the Revenue Adjustment Clause (RAC): the basic
RAC provision and the Contract Dependable Capacity (CDC) charge adjustment
provision.
(a) Basic RAC Provision,
(i) 8y each November I and Hay 1, Western shall calculate net
differences for the previous 6 -month period (April 1 throu h
September 30, and October 1 through March 31, respectively,
between the estimated CVP power sales revenues and CVP purchased
power expenses used to establish the CVP power rates, as compared
to the actual incurred CVPower sales revenues and purchased
power expenses. The net differences for each 6-montheriod shall
be calculated based on the formula in subparagraph (a)(v). If the
2
net difference is a positive value, then it shall be credited to
CVP comnercial power customers. If the net difference is a
negative value, then it shall be surcharged to the CVP commercial
power customers.
(ii) All credits or surcharges under this provision (a)
shall occur
over the 6 -month period beginning I month after the
period for
which the net difference was calculated. The credit or surcharge
shall be equally distributed over the 6 monthly bitting periods
and be specifically noted on each power billing statement.
(iii) The net difference used as the basis for any surcharge or credit
for a 6 -month adjustment period shall not exceed the absolute
value of $15,000,000.
(iv) The net surcharge or credit shall be allocated to each CVP
commercial power customer based on the proportion that such
customer's billed obligation to Western for CVP capacity and
energy represented, compared to the total billed obligation for
all CVP cormercial power customers for CVP capacity and energy, in
the period in which the net surcharge or credit was incurred.
(v) The basic RAC adjustment provision formula is as follows:
(R act - R est) - (E act - E est) • net surplus or deficit.
Uhere:
tact Actual Revenue received from sale of capacity and
energy to CVP commercial power customers. This figure
will be based on actual CVP preference customer
Invoices to the extent available and estimated bills
otherwi se.
Rist Estimated Revenue expected to be realized from
capacity and energy sales to CVP preference customers.
This figure is recorded in Table I.
E -..act - Actual purchased power obligations incurred by Western
in support of CVP load level and surplus sales to the
Pacific Gas and Electric Company (PG&E) bank accounts.
This figure will be based on actual invoices to the
extent available.
E est Estimated purchased power expenses. This figure is
recorded in Table L
3
(b; CDC Capacity Charge Adjustment Provision.
(i) For each megawatt for CDC credit received by Western pursuant
to Western's 'Sale, Interchange, and Transmission Contract
No. 14-06-200-2448A' with PG&E, the CVP capacity charge component
shall be reduced by the applicable incremental value shown on
Table II.
(ii) Similarly, for each megawatt of COC credit rescinded or otherwise
lost by Western, the CVP capacity charge shalt be increased by the
applicable incremental value shown on Table II.
S
(vi) Effective Hay 1, 1992, the net surcharge or credit shall be
allocated to each CVP coRmerc i al power customer only after the net
revenue impact on repayment has been considered as follows:
Scenario 1: if the RAC calculation results in a surcharge (RAC
Surcharge), the RAC Surcharge would be allocated.
Scenario 2: If the RAC calculation results in a credit (RAC
Credit) and there is a deficit balance in the last
annual power repayment study (Annual PRS), the RAC
Credit would not be allocated.
Scenario 3: If the RAC calculation results in a RAC Credit and
there is not a deficit balance in the Annual PRS,
the PAC Cred, t would be allocated.
April - September RAC Period (After Annual PRS Completed):
Scenario 1: If the RAC calculation results in a RAC Surcharge
and the actual net revenue from the Annual PRS is
less than the sum of any deficit from the Annual
PRS and projected net revenue in the 1988 Rate -Case
Power Repayment Study (Rate PRS) (this figure is
recorded in fable III). the RAC Surcharge would be
allocated.
Scenario 2: If the RAC calculation results in a RAC Surcharge
and the actual net revenue frcm the Annual PRS is
greater than tho sum of any deficft in the Annual
PRS and projected net revenue in the Rate PRS (this
figure is recorded in Table IN), the RAC Surcharge
would not be allocated.
Scenario 3: If the RAC calculation results in a RAC Credit and
the actual net revenue from the Annual PRS is
greater than the sum of the RAC Credit, any deficit
in the Annual PRS and projected net revenue in the
Rate PRS (this figure is recorded in Table III ),
the RAC Credit would be allocated.
Scenario 4 ; If the RAC calculation results in a RAC Credit and
the actual net revenue from the Annual PRS is less
than the sun of the RAC Credit, any deficit in the
Annual PRS and projected net revenue from the Rate
PRS (this figure is recorded in Table M), the RAC
Credit would not be allocated.
4
TABLE I1
VALUE OF ONE MEGAWATT OF CAPACITY CREDIT TO CUSTOMERS
Inctemental'
' Please note that once capacity credit 1s received, the capacity
charge component must be adjusted at each time period indicated
above to be consistent with the changing 'Incremental
Adjustment' values shown in the last column.
7
Capacity
Id ustments
Value of
Sales
to CVP
Capacity
Months
MW Credit
During
Capacity
Credit
of
for Period
Period
Charge
FY
Time Period
kW -t
Period
$_,
(kW -Ho)
(S/kW-Mol
88
Hay
88 - Sep 88
14.960
5
74,800
6,631,286
0.011280
89
Oct
88 - Mat 89
15.335
6
92,010
7,508, 602
0.02 2254
89
Apr
89 - Sep 89
15.710
6
94,260
7,973,052
0.011822
90
Oct
89 - Mar 90
15.846
6
95,076
7,533,588
0.012620
90
Apr
90 - Sep 90
16.500
6
99,000
7,999,584
0.012376
91
Oct
90 - Mar 91
16.814
6
100,884
7,590,270
0.013291
91
Apr
91 - Sep 91
17.330
6
103,980
8,059 J71
0.012901
92
Oct
91 - Mat 92
17.733
6
106,398
7,608,737
0.01 3984
92
Apr
92 - Sep 92
18.190
6
109,140
8,079,380
0.01 3508
93
Oct
92 - Mar 93
18.616
6
111,696
7,629,042
0.014641
93
Apt 93
19.100
1
19.100
1,305,589
0.01 4629
60
1,006,344
71,918,901
0.012915
' Please note that once capacity credit 1s received, the capacity
charge component must be adjusted at each time period indicated
above to be consistent with the changing 'Incremental
Adjustment' values shown in the last column.
7
(c) RAC Tables
TABLE
REVENUE AND
EXPENSE TARGET
LEVELS,
FOR THE REVENUE AOJUSTHENT
CLAUSE
Estimated
Estimated
Fiscal
Revenue2
Expense'
Year
Months
(Sl
iS1
1988
Hay 88 - Sep 88
84,301 ,400
73,714,400
1989
Oct 88 - Har 89
105,824,600
88,690,200
1989
Apr 89 - Sep 89
104,969,200
89,498,800
1990
Oct 89 - Har 90
115,852,506
104,323,000
1990
Apr 90 - Sep 90
114,920,600
96,866,000
1991
Oct 90 - Har 91
116,570,500
107 ,571,000
1991
Apr 91 - Sep 91
115 ,634,100
91,255,000
1992
Oct 91 - Mar 92
120,795,100
112,843,900
1992
Apr 92 - Sep 92
119,827,300
98,288,100
1993
Oct 92 - liar 93
121,034,000
112,998,100
1993
Apr 93
20,462,300
14,066,000
Please note that these
figures will be
adjusted to recognize any
capacity rate adjustment implemented
in response to Western's
receipt or loss of CDC
credits.
2
Projected revenues are
the estimated
revenues Western will receive
from the sale of capacity and energy
to CVP preference customers.
s
Projected expenses consist of the following
purchased power costs:
the delivered costs of
capacity and energy
purchased from PG&E,
Pacific Northwest, power imports, and
in-state power purchases.
6
TABLE If
NET REVENUE AVAILABLE FOR REPAYMENT
TARGET LEVELS FOR THE REVENUE ADJUSTMENT CLAUSE
Fiscal Year -
1988 46,821,577
1989 10,829,623
1990 8,489,074
1991 11,436,600
1992 8,945,554
1993 10,026,150
1.1
Scneau'e Cr-TPT2
(Supersedes Scnecule Cr-T?T1!
uNITEO STATES
OEPARTMEsT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Project. California
RATE SCHEDULE FOR THIRD PARTY TRANSMISSION
Effective:
May 1, 1488.
Available:
In the area served by the Central Valley Praject (CVP) .
Applicable:
To customers of the CVP who require transmission service to receive
power and energy sold by Western.
Character and Conditions of Service:
Transmission service for three-phase alternating current at 60 hertz.
delivered and metered at the voltages and points specified in the
sery ice contract.
Monthly Rate:
N m the United States utilizes transmission facilities. other than
its own, in providing service under a Customer's power sales Contract,
and Costs are incurred By the United States for the use of such
facilities, the customer shall pay all costs, including transmission
losses, incurred in the delivery of such power (including secondary
and dump energy).
The transmission losses chargeable to the customer shall be those
losses which are in excess of the "at or aoove 44 -kV" transmission
tosses specified by Contract Nb. 14-06-200-2948A. For billing
purposes, transmission losses will be added to the meter readings of
the power and energy delivered to the customer under the customer's
power sales contract with the United States.
III . RATES, BI11 r, AM PAYKM PEOVISIOQS.
11.
Effectivre January
3, 1.989
12.
WESTERN AREA POWER ADMINIS_.,ATION
6
13.
GENERAL POWER C NIRACT PRDVISIONS
6-7
14.
Nonpayment of B i 11 s in Full men Due ..........................
PNZ
I. APPLICABILITY.
Adjustments for Fractional Billing Period .....................
7
I.
Applicability.................................................
2
II , DELIVERY OF SERVICE plCyISIOIS .
Cooperation of Contracting Parties ............................
2.
Character of Service ...........................................
2
3.
4.
Use of Capacity or Energy in Excess of Contract Obligation ....
Continuity of Service
2
2-3
V. FACIIATPIES PAOVISIC S .
.........................................
19.
5.
laltiple points of Celivary...................................
3
6.
MetP, ing......................................................
3-4
7.
Existence of Transmission Service Contract ....................
4
■ 8.
conditions of Transmission Service ............................
4-5
9.
tLltiple points of Delivery Involving Direct and Transmitted
24.
ChancM to Western Control F a c i l i t i e s .........................
Deliveries....................................................
5
10.
Construction. Operation, and Maintenance of Contract-or's
26.
Trans%tssion Rights ...........................................
Power System ..................................................
5
III . RATES, BI11 r, AM PAYKM PEOVISIOQS.
11.
Change of Rates ...............................................
6
12.
minim= Seasonal or Annual Capacity charge ....................
6
13.
Billing and Payment ...........................................
6-7
14.
Nonpayment of B i 11 s in Full men Due ..........................
7
15.
Adjustments for Fractional Billing Period .....................
7
16.
Adjustments for Curtailments to Finn Service ..................
7-8
IV. POWER SALES PR(MSIONS .
Cooperation of Contracting Parties ............................
17.
Resale of Finn Electric Service ...............................
8
18.
Contract Subject to Colorado River conpact ....................
8
V. FACIIATPIES PAOVISIC S .
37.
19.
Design Approval ...............................................
9
20.
Inspection and Acceptance .....................................
9
21.
As -Built Drawings .............................................
9
22.
Equipment 04 arship Maricers...................................
9-10
23.
Third- Party Use of Facilities .................................
10
24.
ChancM to Western Control F a c i l i t i e s .........................
10
25.
Modification of Western. Facilities ............................
10
26.
Trans%tssion Rights ...........................................
li
• 27.
Construction and Safety Procedures ............................
11-12
VI. OMM PROVISIONS.
• 28.
Authorized Representatives of the Parties .....................
12
29.
Effect of Section Headings ....................................
12
30.
Operating Guidelines and Procedures ...........................
12
31.
Uncontrollable Forces .........................................
12-13
32.
Liability.....................................................
13
• 33.
Environmental Ocnpliance......................................
13
34.
Cooperation of Contracting Parties ............................
13
35.
Transfer of Interest in Contract by Contractor ................
14
36.
Waivers.......................................................
14
37.
Notices.......................................................
14
38.
Contingent Upon Appropriations ................................
14
39.
Officials Not to Benefit ......................................
14
40.
Covenant Against Contingent Fees ..............................
15
* 41.
Contract "pork Hours and Safety Standards ......................
15
* 42.
Equal Opportunity Errployrrent Practices ........................
15
43.
Use of Convict Labor ..........................................
15
• Revised January 3. 1989.
E,_ective January 3, 1989
is"10,11 .14110
I. APPLI(:ABIIaIRY.
1. Amlicability.
1.1. These General power Contract Provisions shall be a part of
the contract to which they are attached. These provisions set forth general
conditions applicable to the contract. Specific teems set forth in the
contract have precedence over any provision herein.
1.2. If the Contractor has neuber utilities which are either
directly or indirectly receiving benefits frim the contract, then the
Contractor shall require such mer,bers to damply with the General Fc4�,er
Contract Provisions, Articles 10, 17, 18, 33, 34, 41, 42, and 43.
II . DELIVERY GF SERVICE Pi OVISICNS.
2. Owacter of Service.
Electric energy supplied or transmitted under the contract will
be three-phase, alt—ting current, at a rx=L al frequency Of sixty (60)
hertz (cycles per second).
3. Use of Cavacity or Enerav in Excess of Contract Oblication.
The Contractor is not entitled to use Federal power, energy, or
capacity in an:kmts greater than the Western contract delivery obligation in
effect for each type of service provided for in the contract except w it h the
approval of the Contracting Officer. Unauthorized overruns of contract
delivery obligations shall be subject to charges specified in the contract
or the applicable rate scbeiules . Overruns shall not establish any
continuing right thereto and the Contractor shall cease ar+y overruns when
requested by the OOntractinq Officer, or in the case of authorized overruns,
when the approval expires, . whichever azure f i r s t. Nothing in the =ntrac t
shall obligate western to increase any delivery obligation. If additional
power,ener(M, cr capacity is not available from Western, the responsibility
for securing additional power, energy, or opacity shall rest wholly with
the Contractor.
4. Contimity of Service.
Electric service will be supplied or t ransr vu tied cont inuais ly
except for: (1) fluctuations, interruptions, or redhsctions due to
uncontrollable forces, as defined in Article 31 herein, (2) fluctuations,
interruptions, or reductions due to operation of devices installed for power
system protection; arld (3) tenTorary fluctuations, interruptions, or
reductions, which, in the opinion of the party supplying the service, are
necessary or desirable for the purposes of maintenance, repairs,
replacarents, installation of equiprent, or investigation and inspection.
The party supplying service, e=ept in case of emergency, will give the
party to wti m service is being provided reasonable advance notice of such
teaporary interruptions or reductions and will remove the cause thereof with
diligence.
5. Miltir)le Points of Delivery.
When electric service is supplied at or transmitted to two or
more points of delivery urzier 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 betoeen points of delivery such that duplication of metered
pier is p�� the meter � at each of f point of delivery
will be jad ustedeto compensate for duplication of power demand recorded by
meters at alternate pints of delivery due to abnormal conditions which are
beyond the Contractor's control or temporary conditions caused by scheduled
outages.
6. Meterina.
6.1. The total electric power and energy supplied or transmitted
under the contract will he measured by metering equi.prent to be furnished
and maintained by Western or byp the Contractor acting as the designated
representative of western. Tfie Contractor shall ensure that metering
equipment furnished and maintained Yrr the Contractor or another power
supplier, as provided in the contract, meets the metering standards of
Western if- such metering equipment will be used for billing or other
accounting purposes by Western.
6.2. Meters shall be sealed and the seals shall be broken only
upon occasions when the meters are to be inspected, tested, or adjusted, and
representatives of the interested parties shall be afforded reasonable
opportunity to be present upon such occasions. MeterLrq equipwt shall be
inspected and tested at least once each year by the party responsible for
reter maintenance and at ar ze&sorcable tisre upon requast by either party
hereto, a supplemental power supplier, transmission agent, or control area
operator. Any metering equipment found to be daragEd, defective, or
inaccurate shall be repaired and readjusted or replaced by the party
responsible for meter m&intenanr-e. Meters found with broken seals shall be
tested for tampering arid, if appropriate, meter readings- shall be adjusted
by Western pursuant to Article 6.3 below.
6.3. Except as otherwise provided in Article 6.4 hereof, should
any meter that is needed by Western for billing or other accounting purposes
fail to register accurately, the electric power and energy supplied or
transmitted during suo;h period of failure to register accurately, shall, for
billing purposes, be estimated by the Contracting Officer from the best
available info=ration.
6.4. If acceptable inspections and tests of a meter needed by
Western for billing or other accounting purposes disclose an error exceeding
V-00 Percent (2'?, , then correction based upon the inaccuracy found shall be
made- of the records of sen ices furnished during the period that such
inaccuracy has existed as de terrtiir�_3 by the Contracting Officer; Prov i dei ,
That i f such period of inaccuracy cannot be dete=% ned , correction shall be
made for the period beginning with the rronthly billing period i:.:nediately
preceding the billing period during which the test was made.
6.5. Any correction in billing resulting fram correction in
meter records shall noanally be made in the next monthly bill rendered by
Western to the Contractor. Payment of such bill shall constitute full
adjustment cf any claim between the parties hereto arising out of inaccuracy
of metering equiprent.
7. Existence of Transmission Service Contract.
If the contract provides for Wester 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 Westem 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.
.1. • •.�. .•1 _ - r -
6.1. When the electric service under the contract is furnished
by Western over the facilities of others by virtue of a tra r smis s i on service
arrangement, the power and energy will be furnished at the voltage available
and under the conditions which exist frc n time to time on the transmission
system over which the service is supplied.
• 8.2. Unless otherwise provided in the contract or attached rate
schedule, the Contractor shall maintain a paler 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 fran time to
time of any changes contemplated on the system over which the service is
supplied, but the costs of any charges 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 cf Western.
8.4. If the Contractor, because of changes or conditions on the
system over which service unc+�.- time contract is supplied, is required to
make changes on its system at rexpense in order to continue receiving
service under the =ttract, the contractor may teaninate service under
the contract upon not less than sixty (6 0) days' written notice given to the
Contracting Officer prior to making such changes, but not thereafter.
0 Revised January 3, 1989.
8.5. If Western notifipS. the Contractor that electric service
provided for under the contract cannot be delivered to the contractor-
because
ontractorbecause of an insufficiency of capacity available to 4-est.ern in the
facilities of others over which service under the contract is supplied, then
the Contractor may te=%-rate service under tYe contract up --n not less than
s Lxty (60) days' written notice given to the contracting Officer prior to
the date on which said capacity ceases to be available to western, but rct
thereafter.
Wh'an 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 alla,arxe or discounts for deliveries of energy
over other systems) to indirect pints of delivery and the Contractor
shifts any of its leads ser,-�d cinder the contract f ran direct delivery to
indirect delivery, w starn will rat absorb the transmission sezvice costs on
such shifted load until the unu`ed capacity, as determined solely by the
contracting Officer, available at the direct delivery points affected is
fully utilized.
10. CAnstruction, Operation, and Halms -- e of Contractor's
Pp—;,xr Systern.
The Contractor shall and, if applicable, shall require each of
its mrte rs or transmission agents to cors true t, operate, and maintain its
p e r system in a meter which, as determined by the contracting Officer,
will not interfere with the operatlon of rrQ systam of Western or its
transmission agents over which electric services are furnished to the
Contractor under the contract, and in a mslver wtdch will coordinate with
ur protective relaying and other protective arrests of the system(S)
of Wes em or 4es to n' s t ranwi.s s ion agents. Western may reduce or
disccntinL*e furnishing serricss to the Contractor if, after notice by the
Contracting Officer, the Contractor fails or refuses to make Fx:h changes as
may to necessary to eliminate an unsatisfactory corctition on the
Contractor's power syst-em which is determined by the Contracting Officer to
interfere significantly under current or pxttnble carditios with any
service supplied frcm the �-r system Of Western or fznm the power system
of a tr&r=dssion acct of Western. Such a rs3Li-tion or of
service will not relieve the Contractor of liability for any minim.an chart, s
provided for in the contract during the time said services are reduced or
discontinued. tbthing in this article shall be construed to render Western
liable in any manner for any claim, demands, costs, losses, causes of
actions damages, or liability of any kind or nature arising out of or
resulting ff= the ca-xst.nx-tion, operation, or rrdint rarLe of the
Contractor's power system.
II I . PAZ, BILLnc, ADD PAYm Nr PPCNISIm.
a 10 Mme..,.- . -
Rates applicable urxier the contract shall be subject to change by
western in accordance with appropriate rate adjustment procedures. If at
any time the United States prcaulgates a rate changing a rate then in effect
under the contract, it will promptly notify the Contractor thereof. Rates
shall become effectiveas to the contract as of the effective date of such
rate. The Contractor, by written notice to the Contractinq Officer within
ninety (90) days after the effectivedate of a rate change, may elect to
terminate the service billed by was tern under the nein 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.
12. Kinimm— Seasonal or Annual Carec i ty Chi .
When the rate in effect tinder the contract provides for a minim n
seasonal or annual capacity charge, a staterent of the mininum 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 pints, in detenrdxUng the minirmmi
seasonal or annual capacity charge due, if any, the monthly Capacity charges
at the individual pints of delivery shall be added together.
13. $ i l l incr and Pavme—n t .
13.1. Western will issue bills to the Contractor for service
furnished during the preceding month within ten (10) days after the end cf
the billing period.
13.2. If Western is Linable to issue a timely monthly bill, it
may elect to render an estimated bill for that mnth to be followed by the
final bill . Such estimated bill shall be subject to the same payment
provisions as a final bill.
13.3. Payments are due and payable by the Contractor before the
cicse 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; =i , That payments received by mail
will be accepted as timely and without assessment of the charge provided for
in Article 14 if a United States Post Office first class mail postmark
indicates the payment was mailed at least three (3) calendar days before the
due date.
6
13.4. Whenever tl�e parties agree, �,rrrents dve 'rt�sn by the
Contractor m y be off setagainst payments due the Contra -tor by western for
the sale or exchange of ele,-t_ric power and energy, use of transmission
facilities, coxation and maintenance of electric facilities, and ot}er
services. For services included in net b i 11 ing procedures, par r en r s due one
party in any rronth shall be offset against pay7ents due t.'e other party in
such month, and the resulting ret balance shall be paid to the party in
w.rhose favor such balarce exists. The parties shall exchange such resorts
and infooration that eit3oex party rsyufres for billing purposes. Net
billing shall not be used for any amounts die which are in dis pi is
14. Nonpayment of Bills in Full WM CLe
14.1. Bills not paid in full by the Contractor by the due date
specified in Article 13 hereof shall bear an initial charge of two percent
(2%) of the archins unpaid. Each clay thereafter, a char of five h-Lr�thz
percent (0 . M %) cf the principal sum unpaid s ha , i be added until the amount
due, including the two percent (2%) initial charge, is paid in full.
Payments received will first be applied to the charges for late payment
assessed on the principal and then to ,rayrent of the principal.
14-2. Western shall have the right, upon not less than fifteen
(15) days advance written notice, to discontinue furnishing t.}* 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 ttr* amount due remains
unpaid. Such a di-: cont iru-�ance of service will not relieve the Czntrac-�r of
liability for minim= charges during the time serrice is so di -scorn tirox3-i
The rights reserved to �,*s tam herein shall be in edition to all other
remedies available to western either by law or in equity, for the preach of
any of the t -e=. hereof.
For a f ract iona i part of a billing �P-r io3 at t -e beginnirq or a -d
of electric service, at the beginning or end of irrigation pmp irrq service
each year, a fractional billing period ur6p_r a naw rate schedule, and for
fractional periods due to withdrawals of electric services, the demand or
capacity charge and mirumyn charges shall each be proportionately ad jus ted
in the ratio that the number cf hours that electric sA-rvice is available to
the Contractor in such fsact.iorssl billing pexicd beats to the total number
of hours in the billing period involved,
16.1. Billing adjustments ments will be made if firm electric service
is interrupted or r ,ed because of conditions an the -r srstt of the
United States for periods of 1 hour or longer in duration each. Billing
ad j us tin is will rot cs made when such curtaibnent of electric service is
due to a request by the Contractor or a di noon t it of electric service
by Was tarn pursuant to Article 14 (f�onpa rn en t of RU Is In Rill 'rfien We),
For - of billing adjustments under this article, tje ta= power
systen. 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 fizm electric
service in any billing period shall to detenTined by adding: (1) the sum of
the number of hours of intertupt---d electric service to (2) the product, for
each reduction, of: the number of tours of reduced electric service atd Ul*
cant3 by which electric service was reduced below the delivery
obligation of �Aastern at the time of each said reduction of electric
service. Tfi,e deTa-rd or capacity charge and applicable minim n charges shat l
each be proportionately adjusted in the ratio that the total %amber cE hours
of electric ser/ice dereun-Lr*d to have been CQr ailed bears to the total
number of hours in the billing period irnrolved.
16.3. The Contractor shall make written claim w it h i n thirty (3 0)
days after receiving the monthly bill, for adjustment on account cf any
curtailment of firm electric service, for periods of I hour or longer in
duration each, alleged to have ccc%u-n d that is not reflected in said bill.
Failure to nide such written claim, within said thirty -day (30 -day) period,
shall constitute a waiver of said claim. All curtailments of electric
service, wch are due to conditions on the power system of the United
States, shall t subject to the pt-trrisions of this section; , That
witrdrawa1 of power and energy under the contract shall not be con idared a
curtaiDrent of electric service.
N. PGWER SAUM PROVISIONS.
17. Asa l e cf F.ixm Electric -,e ry i ce (wholesale Sa l� for Resa l a) .
Tr Contractor shall not sell any fixm electric power or energy
supplied under the contract to any electric utility cvstcrer of the
Contractor for resale by that utility custamer; E, That the
contractor may sell the electric pr.er and energy vu;glied urder 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. contract Subiect to Colorado River Compact.
Where the energy sold under the contract is generated from waters
of the Colorado River system, the contract is made upn the express
condition and with the express covenant that all rights ur6ar the contract
shall be subject tD and controlled by the Colorado River Compact approved by
Section 13(a) of the Boulder Canyon Project Act of December 21, 1928, (45
Stat. 1057) and thM parties to the contract shall and be subject to
and controlled by said Colorado Rives' Compact in tre construction,
mvragaTent, 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.
8
19. Desian AoorovaI.
All facilities, construction, and installation by the Contractor
Pursuant to t?` contract shall be subject to the approval of western.
Facilities interconnections shall rronrally confoxrn to Western's current
"General Re u it nus for Interconnection,- in effect u{xsn tre signing of
the contract document providing for each int -e connection, copies of wtuch
are available fm ninety n the Contracting Officer. At least (90) day-,
unless otherwise agreed, prior to the date the Contractor proposes to
- =e construction or to incur an obligation to parchase facilities to be
irstalIed pursuant to the contract, whichever date is the earlier, the
contractor shall subnit, for tie appra�al of Western, detailed designs,
drawings, and specifications of the facilities the contractor proposes tD
parcha-Se, construct, and install. 2fie contractor assumes all risks for
construction commenced or obligations to purchase facilities incurred prior
to receipt of approval f rrsn western. western ne-/ iea and approval of designs
and construction *ark xi ro ,ay implies that Western is certifyingthat the
designs meet the (:c n frac to r Is needs.
20. Inssction and Acceatance.
Western shall have the right to inspect tYe ma t-_er i a 1 s and s*a r k
furnished by the contractor, its agents, srployees, and subcontractors
Pars'J'Ant to the contract. Such inspections shall be at tunes at
the '+.orksitel, Any rrraterials or vDrk that the Contracting Officer det.etmires
is defective or rot in with designs, drew rM, and
specifications, as approved by western, shall be replac-d or mcdi f ied, as
directed by western, at the sole expense of the Contractor before the new
facilities are energized.
Within a reasonable time, as detenTired by the Contracting
Officer, after the carp l e t ion o t cors trA-tion and installation of facilities
pirsua n t to the contract, the C tractor shall sub t tD t aZM mar ked
as -built prints of all western drawings affected by changes rxVae pursuant to
the cOntrwt and reproducible dra•.r qs t; -e Contractor has prepared showing
facilities cf Western. Tt e Contractor's dra'rir3gs of western facilities
shall use dra*tN title blocks, dra� mmbers, and shall be prepared in
accordance with drafting stardom all as approved by the Oontracting
Officer. Western may prepare, revise, or complete said dravIngs and bill
the contractor if the Contractor fails to provide such drawings tD Western
within a rea-sorable tare as deteuained by the Contract1rq Officer.
22.1. The Contractor shall identify all movable equigrent and,
to the extent agreed upon by the parties, all othpz salvageable facilities
constructed or installed on United States right-of--ey or in Western
substations pursuant to the contract .,tach are owned by the Contractor, by
permanently affixing thereto suitable markers clearly identifying tre
Contractor as the owner of said equipment a.rd facilities.
22.2. If requested by ttre contractor, 'r�t8rn wall identify all
m:rvable equuigrent 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 parsuant to the contract-
which
ontractwhich are owned by the G'n.it.e3 states, by penran ntly affixing thereto
suitable markers clearly identifying the United States as the owner of said
equigrent and facilities.
2.3. Third -Party Use of Facilities.
The CAntxac-tor shall notify western cif any pry system change
relating to the facilities gayk-� by the contract or ailcwiN third -party
use of the facilities governed by t}e contract. It western notifies the
Contractor that said system change will, as solely deter•r [ spy the
Contracting Officer, advess2ly affect ttre og?-ration of ice"' „ system the
Contractor shall, at no cost to Western, provide a solution to said adverse
effect acceptable to4�srern.
24. Chanes to western Ccn tz o 1 Fac i l ,i t i e -s ,
If at any time during the tecm of the contract, the contracting
Officer d'_-�tazTdPes t.�at chan<�s or additions to control, relay, or
camiaucations facilities are necessary to maintain the reliability or
control of Western's transaission s� tam, and said changes or additions are
entirely or partia'ly required because of the Ccntrector's equ.igrent
installed under the contract, such changes or additions shall, after
consultation with the Contractor, be made by `mss tarn with all costs or a
prr�-ort iona to share of all costs, as determined by .the contracting Officer,
to tl� paid by the Contractor. The Contract-. ufficer shall rx3t i fy the
Contractor in writing cE 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, the Contracting Officer shall have
the right, after giving sixty (60) days' written notice to the Contractor,
to te=inate the applicable facility installation provisions of the contract
and require the ramva l of the Contractor's facilities.
25. Mod.if lcaticn of 4--,steri Facilities.
Western r---are--�:s the right, at any time, to moth t'y its
facilities. Western shall )seep the contractor in i o aced of all p 1 anrx�d
m:d.if ications to Western facilities which inVact the facilities installation
parsuant to the contract. Western shall permit the Contractor to change or
m:di fy its facilities,in a manner satisfactory to vd at rc cost or errs:--
to Western, to retain the facilities intesccmr tion p.usuart to the
contract. At the Contractor's option, Western shall cooperate with the
Contractor in planning alternate arrangements for seriica which shall be
implemented at rc cost or experns- to western. The Contractor and western
shall modify the contract, as necessary, to confoam to the row facilities
arrangements.
10
26. 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 teens of capacity and reliability, to the path in the Western
transmission lime prior to the installation pursuant to the contract.
27. C-onstruction and Safetv Proced . S.
• 27.1• 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
neCesnary safety measures required to prevent accidental harm to personnel
engaged in the construction, inspection, testing, operation, nlinterarce,
replacement, or removal activities of the Contractor pursuant to the
contract. The Contractor and the authorized employees, agents, and
subcontractors of the Contractor shall cerrply with all applicable safety
laws and building and construction codes, including the provisions of
Western's current "Power System safety Manual," "Construction, Safety, and
dBalth Standards," and "Power System Clearance Procedures" in effect upon
the signing of the contract; EwceDt, That, in lieu of the safety program
required b i n , the Contractor may provide sufficient inf orrna t ion to
demonstrate that the Contractor's safety program is satisfactory to the
united states.
27.2. The Contractor and its authorized mployees, agents, and
subcontractors shall familiarize tharselves with the location and character
of all the transnission 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 ramal 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 errployees, agents, or subcontractors
until written authorization to proceed is obtained from the Contracting
Officer.
27.3. At all times when the Contractor, its employees, agents,or
subcontractors are performing activities of any type parsuant to t h e
contract, such activities shall be under supervision of a qualified
employee, agent, or subcontractor cf the Contractor who shall be authorized
to represent the Contractor in all matters pertaining to the activity being
perfomed. The contractor and Western will keep each other info='ed of the
names of their designated representatives at the site.
27.4. Upon carpletion of its work, the Contractor shall remDve
frau the vicinity of the right-of-way of the united states all buildings,
rubbish, used materials, concrete faans, and other like material belonging
to the Contractor or used under the Contractor's direction, and in the event
of f a i 1 u r e to do so the same may be removed by western at the expense cf the
Contractor.
• Revised January 3, 1989.
11
27.5. In t1 -P- event the Contractor, its employs, agents, or
subcontractors fail to carpIy with amf provision of this article, or A-tis1e
20 (Inspection and Acceptance) herein, the Contracting Officer or an
authorized representative mdy issue an order to stop all or any part cif the
,-crk until such time as the Contractor rorUtrat s cel farce with the
provision at issue. Tre Contractor, its enployees, agents, or
subcontractors shall rc&�,e no claim for carpej).sation or daracn=a resulting
frau such work stoppage.
Each party to the contract, by written notice to tt' other, shall
designate the representatives) who is (are) authorized to act in its behalf
with respfct to those matters contained in the contract which are tre
functions and responsibilities of the authorized representatives cf the
parties. Each party may change the designation of its authorized
representotive(s) upon oral notice given to the other, conffared prarpt1y by
written notice.
section headings or article titles a ppeer Lng in the contract or
these General Power Contract provisions are inserted for only
and shall ret he construed as interpretations cE text.
3 0. sera t; na 01 i de 1 Lnev and Procedures .
The parties to the contract may agree upon and put into effect
f rcm time to titre, such other written guidelines and procedures as xray by
required in order to establish the rreticds of operation of the power system
to be followed in the perfoanance of the contract.
1L•i•11 _ i• U-1:-) ' ASR-72
111
Neither party to the a:ntract shall be consider:d to be in
default in perfoanance of any of its obligations urdzr t.;* contract, except
to make payment as specified in Article 13 (Billing and Payment) herein,
when a failure of pprfoararce shall be due to an urcontrolIable force. The
tin 'urcantrollable force" means any cause beyond the control of the party
affected, including brt rct restricted to, failure of or threat of failure
of facilities, flood, earthquake, storm, fire, lightning, epidemic, war,
riot, civil di.sturb&r�� or disobedience, labor dispute, labor or material
shortage, UbO e, restraint by court order or public authority arca action
or ronac-tion by, or failure to obtain the recss -y aut orizations or
approvals frcm, any governmental agency or authority, which by of
due diligence such party could not reasonably hae been expected to avoid
and which by sxexc ism of due diligence it shall be urable tz) aYSXI:re .
Nothing contained herein shall be construed to require a party to settle any
• P.—;ised January 3, 1989.
12
I
strike or labor dispute in which it m y be involved. Either party rsrde-red
unable to fulfill any of its obligations under the contract by reason of an
uncontrollable tore shall give prurpt written notice of such fact to the
other Paxty and shall exQrcLse due diligence to rern)ve such inability vith
all ra.�,-,Disable dispatch.
32. Liabilitv,
32.1 The Contractor hereby agrees to ii6aTn2fy and hold harmless
the United States, its erployees, agents, or contractors, Lunn any loss or
damage Md frcm any liability on account of personal injury, death, or
Property age, or c lad rs for persona I injury, death, or property damags- of
any nature whatsoever and by +,rrre r trate arising cut of the
Contractor's, its wployees', agents', or subcontractors', construction,
operation, or replacement activities under the contract.
32.2 The United states is liable only for negligence on the part
of its officers and erployees in accordance w it h the Feral Tort Claims
Act, as amended.
• 33. Erwirow- ental Ccm71 iarce .
Facilities installed under the contract by any party shall be
constructed, operated, maintained, replaced, and removed subject to
carp 1 i aroe with 1 a5.s , executive orders, and requ 1 a t ions applicable to that
party, including the t4a t i onal Errs irornen to 1 Policy Act of 1969, as amended,
36 CFR 800, and the Archeological Resources Frogtion Act of 1979.
.� _
If, in tri operation and maintenance of their respective power
sfstars or electrical equipment and the utilization t- f for the purposes
cif the contract, it becomes necessary by reason of any emergency or
extraordinary condition for either party to request the other to furnish
pea rsonre 1, rra tear is l s , tco 1 s , and eau i pren t for the accampl ishment thereof,
the party so requested shall cooperate with the o-ti`er 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 f ran the
other party, shall re..mburse the party rer6:.rirq such assistance for all
costs -Qrccerly and reasonably irc+u-rsd by it in such perfortuuxe , including
administrative and general expenses, such costs to bee 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 ac=r'carc-,�- with Articles 13 (Billing and Payment) and
14 (Nonpayment cf Bills in Full M -,--n Due) herein. Western shall pay bills
issued by the Contractor for services pzwided as soon as the necessary
vouchers can be prepared which shall normally be within twenty (20) days.
35. Transfer of Interest in Contract b....Y Contractor.
�4D voluntary transEer of the contract or of the rights of the
Contractor under tte contract shall be made without the written approval of
the Administrator of western; Provided, That if tse Contractor operates a
project financed in wt -ole or in part by tl Ahad Ele--trification
kkninistration, the Contractor may transfer or assign its interest in the
contract to the Penal Electrification Adrinistration or arry other department
or agency of the Federal Ca=r -_=en t without such written approval; E37—g ided
puri_ ,e5, That any successor to or assignee cf the rights of t. je Contractor,
whether by voluntary transfer, judicial sale, foreclosure sale, or
otherwise, shall be subject to all ttre provisions and corditions of the
contract to the sere extent as though such successor or assignee were the
original Contractor under the contract; and, Provided , That the
execution of a mortgage or trust deed, or judicial or foreclosure sales made
the�6-- r, shall not be d 3 voluntary trans f ers w i t h i n the cE
this article.
36. Waivers.
Any waivers at any time by either party to the cont act of its
rights with respect to a default or any other mattar arising under or in
connection with the contract shall not be deemed a maiver with respect to
any subsequent c'.e f aul t or matter.
37. t'ces,
Any notice, deme, . or request required by the contract or the
provisions of these article- -:o be in writing shall Ice xrsidered properly
given when delivered in per -.a, or sent by either registered or certified
mail, stage prepaid, or prepaid telegram a1: --ed to each party's
authorized representative at the prireipa1 offices cf rhe party. 'n -,e
designation of the person to ce notified may ce changed at any time by
similar notice.
3° Cot tiroent Upon Ayy=iations.
'4'ere activities provided for in the contract extend beyond the
Current fiscal year, contlmAd expenditures by the united States are
contingent upon Congress making the necessary appropriations required for
the continued perfonr&)ce of the Urdted states obligations under the
contract. In case such appropriation is not made, the Contractor hex y
releases the united States frau its contractual oblig,=atiow and fxcm all
liability due to the failure of Congress to make such appropriation.
39. Officials Not to Benefit.
No member of or delegate to Congress or P�ident Crntnisslorier
shall be admitted to any share or part of thq contract or to any benefit
that nuf have arisen f rcm the contract, bit t, Lls restriction shall not be
construed to extend to the contract if mads with a corporation or caT arrf
for its general benefit.
14
The Contractor warrants that no person ox 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 p 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 frass the
contract price or consideration the full amount of such carmission,
percentage, brokerage, or contingent fee.
* 41. 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 Eburs and Safety Standards Act (Act),
40 U.S.C.A. {329 (1986), is subject to the provisions of the Act, 40
U.S.C.A. (1327-333 (1986), and to regulations pzcmulgated by the Secretary
Of 1 pursuant to the An.
!1. _= ���� i f.. 1 Ali• ��lll'.�i * --!�
Section 202 of Executive Order No. 11246, 43 Fed. Reg. 46501
(1978) , 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 by reference
in the contract.
43. Use of Convict Labor.
The Contractor agrees not to employ any person undergoing
sentence of imprisorment in perfomnning the contract except as provided by 18
U.S.C. 4082(c)(2) and Executive Order 11755, December 29, 1973.
* Revised January 3, 1989.
15