HomeMy WebLinkAboutAgenda Report - May 18, 1988 (57)C 0 U .4 C I L C O M M U N I C A T, J N
TO = THE CITY COUNCIL
FROM: THE CITY MANAGER'S OFFICE
COUNCIL MEETING DATE:
MAY 18, 1988
SUBJECT: ADOPT RESOLUTION CONCURRING WITH THE EXECUTION OF AGREEMENT WITH BONMEVILLE
POWER ADMINISTRATION FOR POWER PURCHASES FOR 1988-89
On My 28, 1987 the Northern California Power Agency, by NCPA Commission adoption of
Resolution No. 87-23, approved an Agreement with the Bonneville Power Administration (See
Exhibit A attached). This Agreement provides for the purchase and sale of surplus firm
power.
The term of this Agreement is June I, 1988 through September 30, 1989 subject to earlier
termination by NCPA if NCPA, for reasons beyond its control, shall lose the assignment of
transmission capacity which it has received from the Sacramento Municipal Utility District.
RECOMMENDED ACTION: That the City Council adopt Resolution No. 88-67 (Exhibit B attached)
concurring with the City Manager's execution of Agreement with the
Bonneville Power Administration for power purchases for 1988-89 as
approved by the Northern California Power Agency.
A�) �- omek
Alice M. Reimche
City Clerk
AMR: JJ
COUNCOM9
TXTA.02D
M
Department of Energy
r-c�-.:;x Adrn::;istri ;ion
PO. 5;�):< 3621
?•::,end. C_Gcn 97208-3621
DEC 0 3 1:37
`:orthern California Power _y,
T;:a Cityof llr:caada, California
'-.,- City of
City of Lodi, California
The City Of Lompoc, California
The City Of Palo Alto, California
The City of Roseville, California
T
he City of Ukiah, California
Gentlemen:
Contract No. L'G-:1S79-S6?,P92322
.,__..Mlle, California
This letter constitutes an offer to contract between the United States of
A_^,.erica, Department of Energy, actin- by and through the Bonneville Power
Administration (Bonneville), and seven members (Members) of the tnirteen
rembers of the i:orthern California Power Agency (1:;PA)- The Members operate
systems within the control area of Pacific Gas and Electric Company, and act
through their agent, NCPA, a power agency organized and existing under the
laws of the State of California. This Agreement provides for the purchase and
sale of surplus firm power as specified below. Accordingly, Bonneville
proposes the following terns and conditions.
1. Parties
The Parties are Bonneville, NCPA and seven Members of NCPA: The City of
Alameda; The City of fieaidsburg; The City of Lodi; The City Of Lompoc; The
City Of Palo Alto; The City of Roseville; and The City of Ukiah. A 11
day-to-day functions under the Agreement shall be performed Eor its
Members by NCPA. These functions shall include, but shall not be limited
to, scheduling, accounting, billing, and receiving and paying power
bills. Each Member shall be individually liable pursuant to section 5 of
this Agreement.
2. Term
The term of this agreement is June 1, 1983, through September 30, 1939,
subject to earlier termination by NCPA if NCPA for reasons beyond its
control shall lose the assignment of transmission capacity which it has
2
rr-m t^n Carr,=;^^nt' "unlcica IJ L"i 1 `. ? C!' 2n -I
i'12 ucc_.n ref sUCtl loss. _s? cl,'cSLIICeS Ufi�?i icrl
is able LO retain lis lnter;l2 acc2ss by piyCme:,L.oT' a Su•CDiFsi.
r to S1 -UD under - article 9 ( d ) of t"e ,-2 em, -�ntL c f 1 29, 19(-,5, shall
not b2 cons de T -n -d as reasons be-cnd ':CP.i's control . (JCP=, steal } gi :?
�Onr1?/111e til? a;(i iUil (iOtiC? 1)OSSi;}ir_' Qi SUCa LOSS ar?d t?i'tllnaL, }�}1
obligations arising hereunder- prior to ter�lination shall be preserved
until SattsI IPd.
3. `libits
i i? i0l1o::ing e lilbltS _.:- atL C^° ?r' ;O acid .. �2 rL Ci L^iS ?.y'r'22,"C
Exhibit A - (ilho}esale Poi.er Rata Schedules and General Rate Sct,edule
Provisions), Exhibit 5 - (General Contract Provisions (Forst PSC S1•1-1)),
Exhibit C - (P.L. 88-552 as amender).
4. Polrer Sala
(a) This is a 25 11-1114 capacity sale ::ith associated energy in the sionths
June, July, august and Septe.,iber during the calendar years 1908 and
1939.
(b) During calendar year 1988 Bonneville shall make available and the
Members shall purchase, through their agent NCPA, a minimum of
4,500M1,11) in each of the months of June and September, and 10, 2130 1.11Jh
in each of the months of July and August.
(c) Our ing calendar year 1989 Bonneville shall make available and the
Members shall purchase, through their agent NCPA, a minimum of. -
10,230 *1h in each of the months of June, July, August and September.
(d) Bonneville shall make available monthly amounts exceeding the monthly
minimums specified in subsection 4(b) or 4(c), provided that NCPA
requests such power prior to the beginning of the month in which
deliveries are to be made; provided however, that the maximum rate of
delivery hereunder shall be 25 HH.
5. Payment
(a) Bonneville shall bill NCPA monthly. NCPA, on behalf of the Members
shall pay in accordance with the then current General Rate Schedule
Provisions and General Contract Provisions.
3
(�) [:. "CPA t::? i� to a ?il:.__ Jill in a "...:eiy ma:.:C',
OE ti;e I; •-:12ra1 ate Scl,c-d le Provisions
n C: C:1 .._.._i2r for • .:oS._ .:CC ...lt :)c---- a. -id :eta}' delivered
_hell _ �bl_at.:d <.nd liable to of 1;Ct;•�r and t.::er;;y ieli._:r-d
to NCTA on its behalf, incll:ding pro rata shares of any c!iarges
incurred. If NCPA Fails to -provide arl allocation as provided in
s� SeCti ..
Ws abo`.'c-
(1? t?e 'lembers ther:.selves sllall allocate any amounts of Do;;er
a: -..d e%-2r:;v aiid use tills as tr:e basis or pay:i?ent:, or shall
iIlocatt_ _uL1%, ti:'? 0-,,'v atnou: t- of the cuts tan d po`;ei" lDiII ,
ir.cludin any c[iarges for services provided, -or
(2) t%e '.'Te.^.hers shall accept an allocation provided by
Bonne%-ill2_ which will be based on Dre'.'icus allocations sent to
Bonneville by -%CP.. Each Member shall then pay its allocated
share of ti.e power bill including its allocation o` charges for
services provided.
(d) Ii hourly allocations are required for billing purposes and none are
supplied pursuant to subsections (b) and (c) above, Bonneville will
apply the allocation determined pursuant to subsections (b) or (c),
as applicable, for the Members to the hourly amounts delivered to
determine the hourly deliveries to each Member.
6. Rates
The rate shall be 30.0 mills/M%Ih.
7. Po,:er Scheduling Provisions
Submission of all schedules between the parties shall be subject to the
following provisions unless otherwise agreed upon by the parties'
respective schedulers or dispatchers:
(a) Preschedules shall be completed on each day which both parties
observe as a regular workday (14orkday). Preschedules shall be
effective for each hour of the following day or days through the nest -
14orkday.
(b) Prescheduled amounts shall be submitted by 0930 hours.
(c) By 1200 hours on any Wednesday, Bonneville may request estimates of
the amounts that NCPA anticipates that it will schedule from
Bonneville each day for the following 10 days. XCPA shall submit
such estimates to Bonneville by 1200 hours on the first 14orkday
following the request. Such estimates are for the purpose of
information only and shall not obligate either NCPA or Bonneville to
schedule such amounts.
S:-»2
This Agreex-er t shall be st:b;ect to the provisions of P.L. 88-552
(iS U.S.C. S31, 1934).
:pint of veli pry for energy del ivc ed n -:-scant to this :gree:-ent ;s
at Lhe Cal'_ (,rn.ia`Lrc:gon boi:der (CU'B), 011 the Pacific Northnest-Pacific
South est inl erti? in -which Sacramento ::1 n1C10a1 Utility District is a
participant and from ::hich \`CPA has contracted for transmission capacity.
10. Execution Pv Counteroart
This Agreement shall be executed in a munber of counterparts and shall be
dee.'Ved to constitute a single docwnent with the same force and effect as
if all parties hereto, having signed a single counterpart, had signed all
counterparts. Each party shall deliver an executed counterpart to
Bonneville, and Bonneville shall prepare a conformed copy of this
Agreement. and deliver it to each party. This Agreement shall become
effective at such time as it is executed by Bonneville, NCPA and any one
Member .
IE the foregoing terms are acceptable to NCPA and its Members, please sign and
return two copies of this -Agreement with a certified copy of an authorizing
resolution. The remaining two copies provide one copy for your files and one
for NCPA's files-.
IN WITcN'ESS THEREOF: The Parties have executed this agreement in
several counterparts.
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
B
A mi 0s. trr
NCPA CITY OF ALAMEDA
tyt
Not..cally s;cc:h
c:?.:inl ---s
Shall be submitted no later
!
'.:..'Jr:_
��:._ ....._.
for Which C:: r_ Ct?c!:?ems• 1S '_J
:t
..._...:tt,';i
at. _:C_:c:.
S:-»2
This Agreex-er t shall be st:b;ect to the provisions of P.L. 88-552
(iS U.S.C. S31, 1934).
:pint of veli pry for energy del ivc ed n -:-scant to this :gree:-ent ;s
at Lhe Cal'_ (,rn.ia`Lrc:gon boi:der (CU'B), 011 the Pacific Northnest-Pacific
South est inl erti? in -which Sacramento ::1 n1C10a1 Utility District is a
participant and from ::hich \`CPA has contracted for transmission capacity.
10. Execution Pv Counteroart
This Agreement shall be executed in a munber of counterparts and shall be
dee.'Ved to constitute a single docwnent with the same force and effect as
if all parties hereto, having signed a single counterpart, had signed all
counterparts. Each party shall deliver an executed counterpart to
Bonneville, and Bonneville shall prepare a conformed copy of this
Agreement. and deliver it to each party. This Agreement shall become
effective at such time as it is executed by Bonneville, NCPA and any one
Member .
IE the foregoing terms are acceptable to NCPA and its Members, please sign and
return two copies of this -Agreement with a certified copy of an authorizing
resolution. The remaining two copies provide one copy for your files and one
for NCPA's files-.
IN WITcN'ESS THEREOF: The Parties have executed this agreement in
several counterparts.
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
B
A mi 0s. trr
NCPA CITY OF ALAMEDA
1
PESOI.,UTIO:I 1:0. 37-23
NORT:ir R1 CALI O:`'NI A POWER AGENCY
P OWER PURCii ASEE FOR 1933 A14D 1989 - OPTION
WHEREAS, the interconnected ,:e- hers have a need for firm power
during 1933 and 1989 that is as yet unnet; and
1 HEREAS, these members obtained access to the North .est
through an assignment of SI•SUD's "Partial Assignment of Contract
Between California Companies and Sacramento Municipal Utility
District" for "Extra High Voltage Transmission and Exchange
Service" as approved in Resolution No. 86-17; and
WHEREAS, it can now be determined a risk' a d j u s t e d least-c,)st
-method of meeting unmet load.
NOW, THEREFORE, BE 1T RESOLVED BY THE COMMISSION OF THE
NORTHERN CALIFORNIA POWER AGENCY, as follows:
Section 1. The General Manager and staff are directed to
negotiate a change to the attached agreement with BPA which will
provide that neither NCPA nor its members shall be required to
purchase power from BPA which cannot be delivered to those members
due to the loss of their Intertie assignment. Such change shall be
approved by the NCPA General Manager and NCPA General Counsel.
Resolution NO. 8? -23
Page 2
Section 2. The General tanager is authorized to execute, on
behalf of this Agency, the attached Purchase Agreement with BPA. in
substantially the form presented and subject to Section 1. Any
changes in the form of this agreemnerr shall he subject to t h e
approval of the General manager and General. counsel.
Section 3. The General :•Tanager is authorized and directed :.to
transfer the completed agreenent to the appropriate members for
their approval.
Section 4. Power- received under this agreement shall be
allocated in the same proportions as the SAND Intertie Assignment.
Section 5. Staff is directed to cont nue negotiations with
DWR and others for the remaining 1.939 power needs of the
Interconnected Members. Any agreements res+ilting from those
negotiations shall be brought to the Commission for approval.
Section 6. Staff is
directed to negotiate,
with
PG&E, firm
delivery and receipt points
for purchases -from and
sales
to DWR. '
Resolution No. 87-23
Page 3
City of - Alameda
Biggs
Gridley
Healdsburg
Lodi
Lompoc
Palo Alto
Redding
Rosevi Ile
Santa Clara
Turlock
Ukiah
Vote Abstained
Plumas-Sierra 4.�L1
Absent
ADOPTED AND APPROVED this day of , 1986.
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ALA%J S_n057.G
DAVID BEATTY
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ALICE A. »Qo^v14R-1
POSERT R RU5.4
MICHAEL T FOGARTY
MICHAEL 3 EVANS
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PAUL S 9MMONS •. .. .
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ATTORNEYS
355 CAPITOL •r ALL. S-JITE 9SCI
S 4Caa�!E•v'O. Cs LIr O�vA 95914
(91e; -".4-3900
August 6, 1987
Mr. Matthew L. Foskett
Power Contracts Engineer
Northern California Power Agency - -
180 Cirby Way .
Roseville, CA 95675
Dear Matt:
Subject: proposed NCPA-BPA contract
�e A•a mar 9EAC. Ell C-
.
-C--. fto rLC.Aa]. S -TC .OI
n EA a]ar OCAC-.. CAL 92560
.T•<1 as- a]
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a. 0 SOK -S
A 3<509
.<.SI 5eY•G.y5
ALrR 0 E.MOLLA•r]
3RNCE F. ALLEN
... SC.%STEN
Or z1` • SCL
via telecooier - -
(corrected version)
_(corrrectedversion)
/$/if -
I have reviewed the signature draft of the above agreement transmitted
by BPA's letter ofjuly 31, which you telecopied me this morning, and
compared it with the version which the Commission approved by its
Resolution No. 87-23, adopted May 28, 1987.
The changes in the form of agreement approved by the resolution are
insubstantial except for those changes in Section 2, which were required by
the NCPA resolution.
The current draft has my approval as to form.
Sincerely yours,
Martin McDonough
Attorney
Department of Energy
d o
z �L Bonneville Power Administration
• P.O. Box 3621
JS7Vri:.* " `� Portland, Oregon 97208-3621
In repIv,el-to: PKL
Contract So. DE-i-IS79-86BP92322
Northern
California Power Agency, Roseville, California
The
City
of
Alameda, California
The
City
of
Healcisburg, California
The
City
of
Lodi, California
The
City
Of
Lompoc, California
The
City
Of
Palo Alto, California
The
City
of
Roseville, California
The
City
of
Ukiah, California
Gentlemen=
This letter constitutes an offer to contract between the United States of
America, Department of Energy, acting by and through the Eonneville Power
Administration (Bonneville), and seven members (Members) of the thirteen
members of the Northern California Power Agency (,%CPA). The Members operate
systems within the control area of Pacific Gas and Electric Company, and act
through their agent, NCPA, a power agency organized and existing under the
laws of the State of California. This Agreement provi.c_es for the purchase and
sale of surplus firm power as specified below. Accordingly, Bon.ieville
proposes the following terms and conditions.
1. Parties
The Parties ore Bonneville, NCPA and seven Hembers of NCPA: The City of
Alameda; The City of Healdsburg; The City of Lodi; The City Of Lompoc; The
City Of Palo Alto; The City of Roseville; an,l The City of Ukiah. All
day-to-day functions under the Agreement shall be performed for its
Members by NCPA. These functions shall include, but shall not be limited
to, scheduling, accounting, billing, and receiving and paying power
bills. Each Member shall be individually liable pursuant to section 5 of
this Agreement.
2. Term
The term of this agreement is June 1, 1953, through September 30, 1989,
subject to earlier termination by NCPA if NCPA For reasons beyond its
control shall lose the assignment of transmission capacity which it has
I
2
received from the Sacramento ,lunicipal utility District (SINUO), and
effective upon the date of such loss. Those circumstances under- which
NCPA is able to retain its intertie access by payment of a supplemental
fee to S,',IUD under Article 9 (d) of the Agreement of April 29, 1386, shall
not be considered as reasons beyond NCPA's con tY-ol. NCPA shall gide
Bonneville the maximum notice possible of such loss and termination. A 11
obligations al-ising hereunder prior to termination shall be preserved
unti 1 satisfied.
3. Exhibits
The following exhibits are attached hereto and made part of this Agreement.
Exhibit -A - (Wholesale Power Rate Schedules and General Rate Schedule
Provisions), Exhibit 6 - (General Contract Provisions (Form PSC S11.1-1)),
Exhibit C - (P.L. 88-552 as amended).
4. Power Sale
(a) This is a 25 Ml•1 capacity sale with associated energy in the months
June, July, August and September during the calendar years 1988 and
1989.
(b) During calendar year 1988 Bonneville shall make available and the
Hembers shall purchase, through their agent NCPA, a minimum of
4,500 Mtdh in each of the months of June and September. and 10,230 Mw''h
in each of the months of July and August.
(c) During calendar year 1939 Bonneville shall make available and the
Mlembers shall purchase, through their agent NCPA, a minimum of
10,230 MINh in each of the months of June, July, August and September.
(d) Bonneville shall make available monthly amounts exceeding the monthly
minimums specified in subsection (b) or 4(c), provided that NCPA
requests such power prior to the b:?ginning of the month in which
deliveries are to be made;rp ovid,d however, that the maximum rate of
delivery hereunder shall be 25 NW.
5. Pa yment
(a) Bonneville shall bill NCPA monthly. NCPA, on behalf of the Members
shall pay in accordance with the then current General Rate Schedule
Provisions and General Contract Provisions.
(b) NCPA shall send to Bonneville for each month, as soon as possible but
in no case later than 45 days after receiving the power bill for such
month from Bonneville, a report indicating the allocation of power
and energy, or power and energy charges, delivered by Bonneville to
NCPA among the Members for such month. These allocated amounts shall
be deemed to have been delivered to each Member and shall be the
amounts of power and energy for which each Member is liable and
responsible for payment.
I
3
(c) In the event that NC111A fails to pay a power bill in a timely manner,
under the terms of the then current General Rate Schedule Provisions,
then each 11erber for whose account power and energy was delivered
shall be obligated and liable to pay for power and energy delivered
to NIUA ov. its behalf, including pro rata shares of any charges
incurred. If NCPA fails to provide all allocation as provided in
subsection (b), above:
( 1 ) the Members themselves shall allocate any amounts of - ger
and energy and use this as the basis of payment, or shall
allocate fully the money amount of the outstanding power bill,
including any charges for services provided, or
(2) the I•}embers shall accept an allocation provided by
Bonneville which will be based on previous allocations sent to
Bonneville by NCPA. Each Member shall then pay its allocated
share of the power bill including its allocation of charges for
services provided.
(d) If hourly allocations are required for billing purposes and none are
supplied pursuant to subsections (b) and (c) above, Bonneville will
apply the allocation determined pursuant to subsections (b) or (c),
as applicable, for the •: embers to the hourly amounts delivered to
determine the hourly deliveries to each PIember.
6. Rates
The rate shall be 30.0 mills/kWh-
7. Power Scheduling Provis icns
Submission of all schedules between Ole parties shall be subject to the
following provisions unless otherwise agreed upon by the parties'
respective schedulers or dispatchers:
(a) Preschedules shall be completed on each clay which both parties
observe as a regular workday (Workday). Preschedules shall be
effective for each hour of the following day or days through the next
Workday.
(b) Prescheduled amounts shall be submitted by 0930 hours.
(c) By 1200 hours on any Wednesday, Bonneville may request estimates of
the amounts that NCPA anticipates that it will schedule from
Bonneville each day for the following 10 days. NCPA shall submit
such estimates to Bonneville by 120G hours on the first Workday
following the request. Such estimates are for the purpose of
information only and shall not obligate either NCPA or Bonneville to
schedule such amounts.
(d) The parties shall endeavor to avoid requesting changes in schedules.
Changes in prescheduled amounts for any hour shall be only as
RESOLUTION NO, 85-67
A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING THE CITY MANAGER'S
EXECUTION OF THAT CERTAIN AGREEMENT DATED SEPTEMBER 30, 1987 ON BEHALF
OF THE CITY, RELATING TO POWER PURCHASE BETWEEN BONNEVILLE POWER
ADMINISTRATION AND THE NORTHERN CALIFORNIA FOWER AGENCY
WHEREAS, based upon the past practice, poi icy and the advice of the
Bonneville Power Administration and the Northern California Power
Agency, the City Manager has executed on behalf of the City, an
Agreement dated September 30, 1987 providing for the purchase and sale
of surplus firm power; and
WHEREAS, it was the belief of the parties thereto that it was
unnecessary for the City Council of Lodi to authorize such execution by
resolution; and
WHEREAS, the other parties to the aforesaid Agreement have naw
expressed a desire to have the City Council of todi affirmatively act
to authorize such Agreement;
NOW, THEREFORE, BE IT RESGLVED by the City Council of the City of Lodi
that rhe Council hereby ratifies and approves the Agreement between the
City of Lodi and the Bonneville Power Administration, executed by
City Manager Thomas A. Peterson on September 30, 1987.
Dated: Ray 18, 1988
I hereby certify that Resolution No. 88-67 was passed and adopted
by the City Council of the City of Lodi in a regular meeting held
May 18, 1988 by the following vote:
Ayes : Council Members - Hinchman, Olson, Reid, Snider and
Pinkerton (Mayor)
Noes : Council Members - None
Absent: Council Members - None
Alice M. Reimche
City Clerk