HomeMy WebLinkAboutAgenda Report - February 17, 1982 (38)Council was apprised that:
The allocation of 12MW of power to the City of
Lodi has received final approval and has been
published in the Federal Register. On February
10, 1982, Mr. Curry and City Manager Glaves met
with the WAPA staff to review a draft of the
contract which we anticipate will be in final form
by the March. 17 meeting of the City Council.
WAPA staff does not expect any substantive changes
in the preliminary draft, but until it is final,
there is always some possibility. The final
draft will contain information specific to the
City of Lodi such as delivery voltage and points of
delivery.
The time table is extremely compressed now. WAPA
needs the executed contracts returned to them by
February 26, 1982. It is their intention to start
delivery on March 1, 1982. In addition to the
WAPA contract, it will be necessary to adjust our
----- 1•nereiore, WAPA'•3s meeting with PG&E to iron out
any questions regarding their contracts and the
City of Lodi's responsibility is merely to arrange the
modification to our PG&E contract, similar to the
action to provide for delivery of the Northwest Power.
A summary of the WAPA contract prepared by Mr.
Curry and Mr. Stein was presented for Council's
Perusal.
CONTRACT FOR WAPA Following Cca ncil discussion, on motion of
ALLOCATIONS Councilman Katnich, Hughes second, Council adopted
APPROVED Resolution No. 8.2-17 a —r; th
CENTRAL VALLEY PROJECT (CVP) POWER ALLOCATION
The official announcement of Lod's 12 megawatt (12,000 kilowatt)
allocation of CVP power was published in the January 28, 1982 issue
of the Federal Register. Unofficially, this power is expected to be
available starting next month.
RESOLUTION -NO. 82-17
BE IT RESOLVED by the City Council of the City of
Lodi, California
that the Mayor, and City Clerk be and they are hereby authorized
to execute for and on behalf of the City of Lodi, California,
the attached Contract for Electric Service with the UNITED
STATES OF AMERICA, which Contract was duly presented to the
City Council, and which Contract is hereby approved.
State of California }
ss
County of San Joaquin )
I, Alice M. Reimche, the duly appointed and qualified
Clerk of the City of Lodi, California, do hereby certify
that the foregoing is a true, accurate and complete copy
of a resolution duly passed and adopted at a regular
meeting of the City Council of the City of Lodi,
California, held on February 17, 1982.
Date: February 17, 1982 by 1W W -
Alice M. ReimcZe
City Clerk
41 "UNCIL COA'iMUNICATT t
TO- THE CITY COUNCIL
FROM: THE CITY MANAGER'S OFFICE
SUBJECT:
POWER ALLOCATION FROM WESTERN AREA POWER ADMINISTRATION
M
The allocation .of 12 MW of power to the City of Lodi has received
final approval and has been published in the Federal Regie.ter.
On February 10, 1982, Mr. Curry and I met with the WAPA staff
to review a draft of the contract which we anticipate will be
in final form by the March 17 meeting of the City Council.
WAPA staff does not expect any substantive changes in the preli-
minary draft, but until it is final, there is always some possi-
bility. The final draft will contain information specific to
the City of Lodi such as delivery voltage and points of delivery.
The time table is extremely compressed now. WAPA needs the
executed contracts returned to them by February 26, 1982. It
is their intention to start delivery on March 1, 19SZ. In addition
to the WAPA contract, it will be necessary to adjust our PG&E
contract to recognize the delivery and billing of WAPA power.
The attorney representing the five new city customers (Ukiah,.
Healdsburg, Lompoc, Alameda and Lodi) has prepared a draft and
submitted it to PG&E for execution on behalf of all of the
cities under one cover letter. We hope this can be accomplished
without unnecessary delay.
PG&E and the Federal Government have a contract in place (commonly
known as 2948A) which provides for delivery of the WAPA power to
preference customers. At present, the "wheeling charges" are
covered in the contract and paid by WAPA and passed through to
the City customers within the WAPA rates. As part of the settle-
ment of the Santa Clara case, PG&E recognized and agreed to
support the allocation of the 102 MW by WAPA. Therefore, WAPA
is meeting with PG&E to iron out any questions regarding their
contracts and the City of Lodi's responsibility is merely to
arrange the modification to our PG&E contract, similar to the
action to provide for delivery of the Northwest Power.
A summary of the WAPA contract prepared by Mr. Curry and Mr. Stein
is attached.
Unless we hear word to the contrary from the WAPA office before
meeting time, I think the contract is ready for approval.
X64 Q - " �
HENRY A. GLAVES
City Manager
HG: dg
101
C
WESTERN AREA POWER ADMINISTRATION MIP
CONTRACT FOR ELECTRIC SERVICE TO LODI
SUHMARY
Article 1
Specification of parties to this contract (United States of America and
City of Lodi, California) as well as contract effective date.
Articles 2 -_8 (Recitals)
The U. S. government, which operates the Central Valley Project (CVP),
has made an allocation of power to the City of Lodi. The availability of this
power results from the settlement of a lawsuit between it and the City of Santa
Clara (February, 1980). This power is partly long -terve firm and partly short-
term firm (withdrawable by Westlands Water District), and Lodi would receive a
proportionate share of each. The U.S. has a contract with Pacific Gas & Electric
Company (P.G.&E.) covering P.G.&E. transmission of CVP power to customers such
as Lodi.
Under Reclamation Law, 'preference' customers in Trinity, Calaveras and
Tuolumne Counties, California have certain 'first rights' to a portion of this
power/energy. Further, a portion may be necessary to meet certain CVP project
requirements.
a
Article 9
Term of contract;. March 1, 1982 (date of initial service) to June 30, 1994,
unless otherwise terminated, per contract provisions.
-1-
Article 10
U.S. agrees to provide electric service to the City of Lodi at 60,000 volts,
over P.G.&E. transmission facilities. Energy to be delivered to Lodi's Killelea
Substation, up to the. contract rate �;f 12,000 kilowatts, subject to withdrawal
per contract provisions. Contract rate of delivery (CRD) may be reduced, pro rata
among customers with similar such allocations, to supply Westlands Water District
requirements, provided U.S, gives 90 days advance notice.
Under Reclamation Law, 'preference' customers in Trinity, Calaveras and
Tuolumne Counties, California may also request CVP power. The City's CRD may be
reduced to supply power/energy to these customers, provided U.S. gives 90 days
advance notice. CRD's may be reduced (pro rata among all customers) to supply
CVP project use requirements, provided U.S. gives 90 days notice. Within 30 days
of receiving CRD reduction notice (due to any of the above), Lodi may terminate
this contract.
Contract energy requirements in excess of those available from CVP power
plants will be supplied by P.G.&E., under contract with U.S. All CRD's will be
curtailed if insufficient power/energy is available to serve CVP customers.
CRD's may be reduced if P.G.&E. contract is terminated, provided U.S. gives 90
days advance notice. City may then terminate this contract within 30 days.
Article 11
City may have additional sources of power and energy other than CVP. Methoda
for determining U.S. supplied portion are specified. Specifically, the fraction
of total City energy to be supplied by U.S. (in any month) is 12,000: maximum
monthly demand -kilowatts.
Article 12
Operation of the City's electric system to coordinate with, and not
interfere with, the operation of utility system supplying Lodi with CVP power/
energy (i.e. P.G.&E. system).
Article 13
The current rate for CVP contracted service, including transmission, is
approximately $0.01 per kilowatt-hour. Rate schedules may be modified from time
to time. City agrees to pay current and future rates, except that it may
terminate contract within 180 days if notified that transmission charges are to
be increased.
Article 14
Scheduling (by City and U.S.) of delivery of CVP energy may be required.
Article 15
Other rules/ regulations may be required from time to time. They will be
implemented as required, when mutually agreed upon.
Article 16
City agrees that:
a. Benefits of lower-cost CVP power will be made available at fair/
reasonable terms to all customers (lowest rates consistent with
sound business principles).
b. Proper utility accounting methods will be followed.
c. Copies of retail rate schedules (present and future) will be
furnished to the U.S. Contracting Officer.
-3-
C'
d. An annual statement that charges to customers are consistent with
Article 16 a. (above)will be furnished to the U.S. Contracting
Officer.
e. it will publish annually a report of utility operating and
financial data in a local general -circulation newspaper.
Article 17
City agrees to implement a locally appropriate conservation and renewable
energy program in accordance With Federal guidelines. Program will be reviewed
within -12 months and subject to review thereafter every 36 months. CRD could be
reduced 10% in -'the unlikely event that the City's program is judged continually
deficient by the U.S. Contracting officer.
Article 18
Exhibits A-E; which specify further. detail, are made a part of this contract.
Article 19
The General Power Contract Provisions, effective April 1, 1979, are made a
part of this contract.
-4-
r717A
�vvContract No.
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Project, California
CONTRACT FOR ELECTRIC SERVICE
Westlands Withdrawable/Firm Allocation
Below 44kV
Contract No.
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Pro3ect, California
CONTRACT FOR ELECTR`I'C SERVICE
Westlands Withdrawable/Firm Allocation
Above 44kV
Article
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2-6
9
10
11
12
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14
15
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17
18
19
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POKIER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE TO
Preamble
Explanatory Recitals
Term of Contract
Firm Electric Service to be Furnished
Auxiliary Power Service
Construction, Operation, and Main-
tenance of Contractor's Power System
Schedule of Rates
Power and Energy Deliveries
Other Rules and Regulations
Resale of Electric Energy
Conservation and Renewable Fnergy Program
Exhibits Made Part of Contract
General Power Contract Provisions
Exhibit A (Electric Service to be Furnished)
Exhibit B (Contract Rate of Delivery)
Exhibit C (Operating Agreement Including
Quantitative Determinations)
Exhibit D (Rate Schedule)
Exhibit E (Transmission Rate Schedule)
Resolution
Contract No.
Page
1
1-3
3
3-6
7
7-8
8-9
9
9
10-11
1.1.-12
12
13
Contract No.
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE TO
1. This contract made this . day of , 19 in pur-
suance of the Act of Congress approved June 17, 1902 (32 Stat. 388),
the Act of Congress approved August 26, 1937 (50 Stat. 844, 850), the Act of
Congress approved August 4, 1939 (53 Stat. 1187), the Act of Congress approved
August 12, 1955 (69 Stat. 719), the Act of Congress approved October 23, 1962
(76 Stat. 1173, 1191), and the Act of Congress approved August 4, 1977 (91
Stat. 565), and acts amendatory thereof or supplementary thereto, between the
UNITED STATES OF AMERICA, hereinafter called United States, represented by the
officer executing this contract, a duly appointed successor or a duly author-
ized representative, hereinafter called the Contracting Officer, and the
- hereinafter called the Con-
tractor, its successors and assigns,
WITNESSETH;
2. WHEREAS, the United States operates an electric power system includ-
ing generation and transmission facilities as a part of the Central Valley
Project; and the Contractor operates an electric power distribution system
hereinafter referred to as the Contractor's system; and
3. WHEREAS, in settlement of the lawsuit entitled The City of Santa
Clara v. Duncan et. al. the United States has had Electric power made avail-
able to serve the Contractor according to the terms of the Memorandum of
J
K
N
Understanding dated February 8, 1980, between the parties to said lawsuit,
hereinafter referred to as the Memorandum of Understanding; and
4. WHEREAS, the Contracting Officer has agreed to market on a long -terra
basis twenty-six (26) megawatts of firm power- and energy which is now
available as a result of the Memorandum of Understanding; and
5. WHEREAS, the Contracting Officer has agreed to market on a short-
term basis firm power from the previously allocated but currently unused
allocation of Westlands Water District, hereinafter called Westlands
Withdrawable;.and
6. WHEREAS, under Reclamation Law which authorized construction of the
Trinity River Division, and the New Melones Project, first preference to the
extent of 25 per centum of the additional energy available must be given,
under certain conditions, to preference customers in Trinity County, Calaveras
and Tuolumne Counties, California; and
7. WHEREAS, withdrawal of power may be necessary to meet project use
requirements of the Central Valley Project including those of the Federal San
Luis Unit; and
8. WHEREAS_, the United States has entered into that certain Contract
No. 14-06-200-2948A dated July 31, 1967, as amended, with the Pacific Gas and
Electric Company (PG&E), hereinafter called the PG&E Contract, and said PG&E
Contract provides.for, among other things, a license to the United States to
2
`furnish electric power and energy to the Contractor from the transmission
system of PG&E;
NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the
parties hereto agree as follows:
TERM OF CONTRACT
9. (a) This contract shall become effective on the first day of the
first full billing period following the date of its execution and, subject to
prior termination as otherwise provided for herein, shall remain in effect
until midnight of June 30, 1994;
ELECTRIC SERVICE TO BE FURNISHED
10. (a) The United States under the terms and conditions stipulated
herein, wil-1 furnish, deliver and measure electric service to the Contractor,
from and after the date of initial service as herein defined, at the point(s)
and voltage(s) and under the delivery conditions specified in Exhibit A. Said
electric service will be furnished over the United States' facilities or
facilities of PG&E under the terms and conditions provided in. the PG&E
Contract (copies of which are on file in the Sacramento Area Office of the
Western Area Power Administration in Sacramento, California), or under said
contractus it may be amended or supplemented from time to time, or under the
3
(b..)
The
date of initial service hereunder .is defined as the
effective date
of
this contract.
ELECTRIC SERVICE TO BE FURNISHED
10. (a) The United States under the terms and conditions stipulated
herein, wil-1 furnish, deliver and measure electric service to the Contractor,
from and after the date of initial service as herein defined, at the point(s)
and voltage(s) and under the delivery conditions specified in Exhibit A. Said
electric service will be furnished over the United States' facilities or
facilities of PG&E under the terms and conditions provided in. the PG&E
Contract (copies of which are on file in the Sacramento Area Office of the
Western Area Power Administration in Sacramento, California), or under said
contractus it may be amended or supplemented from time to time, or under the
3
terms and conditions of any contract that may supersede or succeed said
contract.
(b) Firm electric energy, subject to determinations in Exhibit A,
will be delivered in amounts which the Contractor may from time to time
require up to a maximum rate of delivery, hereinafter called the contract rate
of delivery for firm power, which shall be subject to withdrawal as provided
herein, and shall be specified in Exhibit B.
(c) The United States may, at the sole discretion of the Contract-
ing Officer, reduce the Contractor's contract rate of delivery for electric
power hereunder by any amount necessary to supply the Westlands Water District
use requirements. For this purpose, and to the extent possible, the Con-
tractor's contract rate of delivery shall be reduced pro rata among all pref-
erence customers which have a portion of the forty-six (46) megawatts of
Westlands Withdrawable Power and a portion of the twenty-six (26) megawatts of
firm power allocations; Provided, That the Contractor's contract rate of
delivery shallnot be less than one-half (h) megawatt; and, Provided further,
That the United States shall give written notice to the Contractor ninety (90)
days in advance of the effective date of such reduction in the contract rate
of delivery.
(d) In order to supply electric power and energy to preference cus-
tomers in Trinity County, California, in accordance with the requirements of
Reclamation Law, the Contracting Officer may, upon ninety (90) days advance
written notice to the Contractor, withdraw electric power and energy from the
Contractor. 4
(e) In order to supply electric power and energy to preference cus-
tomers
us-
tomers in Tuolumne and Calaveras Counties, California, in accordance with the
requirements of Reclamation Law, the Contracting Officer, upon ninety (90)
days advance written notice to the Contractor, may withdraw electric power and
energy from the Contractor.
(f) The United States may, at the sole discretion of the Contract-
ing Officer, reduce the Contractor's contract rate of delivery for electric
power hereunder by any amount necessary to supply the project use
requirements, including operation of the Federal San Luis Unit of the Central
Valley Project. For this purpose, and to the extent possible, Contractor's
contract rate of delivery shall be reduced pro rata among all preference
customers of the Central Valley Project; Provided, That the United States
shall have given written notice to the Contractor ninety (90) days in advance
of the effective date of such reduction in the contract rate of delivery.
(g) Upon receipt of notice of reduction in the contract rate of
delivery for firm power pursuant to subarticles (c), (d)' (e) or (f) above,
the Contractor may terminate this contract within thirty (30) days after
receipt of such notice by notifying the Contracting Officer in writing prior
to the desired termination date.
(h) At times the electric energy requirements under this and simi-
lar contracts of the United States with other preference customers for the
supply of firm power will be in excess of the energy available for firm load
from the Central Valley Project powerplants. Such excess will be supplied by
..� 5
a
C.
the United States through purchases and in accordance with the PG&E Contract
or under terms and conditions of any contract that may supersede or succeed
said contract, up to such amounts as are required to bring the total energy
deliveries under said preference customer contracts in any month or year up to
the respective maximum amounts of firming energy that the PG&E Contract is
obligated to supply. Under said PG&E Contract, anything to the contrary in
this contract notwithstanding, the United States shall not be obligated to
furnish energy hereunder in amounts which, together with amounts to be
furnished under said other preference customer contracts, are in excess of the
limitations stipulated in said PG&E Contract or the terms and conditions of
any contract that may supersede or succeed said contract. In the event,
however, that the power and energy available to serve the total firm load of
all preference agencies contracting for power and energy is not sufficient,
Contractor's contract rate of delivery shall be curtailed so as not to exceed
a pro rata share of the total power and energy that is available.
(i) Availability of electric power and energy to the United States
in an amount adequate to meet the contract rates of delivery and electric
energy requirements under this and other contracts with preference customers
is dependent upon arrangements made in the PG&E Contract. The United States
may reduce to any mount the contract rate*of delivery for power hereunder
effective on the termination or cancellation of said PG&E Contract; Provided,
That the United States shall have given written notice to the contractor
ninety (90>) days in advance of the effective date of reduction in contract
rate of delivery for power. The Contractor may terminate this contract at any
time within thirty (30) days after receipt fo such notice, but not thereafter.
1.1
F
AUXILIARY POWER SERVICE
11. (a) Notwithstanding any provision of the exhibits attached hereto,
power supplies in addition to the power supply hereunder may be used by the
Contractor in conjunction with such electric service provided for herein as
may be necessary to meet its requirements in excess of the power service made
available pursuant to this contract; Provided, That such auxiliary power ser-
vice shall be in accordance with the terms and procedures specified in this
article and as may be specified in Exhibit A and Exhibit C.
(b) Prior to the utilization of any such auxiliary service or
supply, the Contractor shall enter into an agreement with the United States
defining the procedures by which the amount of power and energy supplied by
the United States will be determined. The Contractor assumes all reponsi
bility for obtaining such auxiliary power supply as the Contractor determines
to be necessary to its operations.
CONSTRUCTION, OPERATION, AND MAINTENANCE
OF CONTRACTOR'S POWER SYSTEM
12. The Contractor shall construct, operate, and maintain its power sys-
tem in a manner which will not interfere with the operation of the system from
which electric service is supplied to the Contractor hereunder, and which will
coordinate with the protective relaying and other protective arrangements on
said system. The United States may discontinue furnishing electric service to
the Contractor if, after reasonable notice by the Contracting Officer of an
7
r Q
unsatisfactory condition on the Contractor's power system which interferes or
may interfere with any service supplied from the power system of the United
States, or from the power system of its transmission agent, the Contractor
fails or refuses to make such changes as may be necessary to eliminate such
unsatisfactory conditions. Such a discontinuance of electric service will not
relieve the Contractor of liablility for the minimum charge provided for
herein during the time said electric service is discontinued. Nothing in this
article contained shall be construed to render the United Sates liable for any
claims, demands, costs, losses, causes of action, damages, or liability of
whatsoever kind or nature, arising out of or resulting from the construction,
operation, or maintenance of the Contractor's power system.
SCHEDULE OF RATES
13. (a) The Contractor shall pay for the electric service furnished
hereunder in accordance with the rates, charges, and conditions set out in the
rate schedule, attached hereto as Exhibit D and made a part hereof.
(b) In addition to the charges payable under the rate schedule,
specified in subarticle (a), when the United States utilizes transmission
facilities other than its own in providing service under this contract, the
Contractor shall pay to the United States for the use of such facilities under
the rate schedule, attached hereto as Exhibit E and made a part of this con-
tract. Said rate schedule is designed to recover all or part of the cost,
(including transmission losses), to the United States for the use of'such
facilities. Such rate schedule may be modified from time to time in
8
P.E�CIF'IC C�Ai3 AND ELECTRIC CODt2PANY°
RONCRTo"LeACH
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CNAR616 T. VAN DRUOUN
PHILIP A. CRANI. JR.
HEMtlV J. 6a PLANT!
JOHN s. OIsso"
ARTHUR L. HILLMAN. JR.
CHAwtss W. THIsscLL
DANIIEL t. OlssoN
JACK P. PALLIN. JA.
JOsl"H I. Kl LIV
"ON -1 441.41006 cL••taa
77 BEALE STREET, SAN FRANCISCO. CALIFORNIA 94106 TELEPHONE (415) 781-4211
P.O. BOA 7442. SAN FRANCISCO. CALIFORNIA 94120 TELECOPIER (415) 543.7813
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January 27, 1982
Kenneth F. Plumb, Secretary
Federal Energy Regulatory Commission
825 North Capitol Street, N.E.
Washington, D.C. 20426
Re: FERC Docket No. ER81-679
Dear Mr. Plumb:
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Pursuant to Section 1.11 of the Commission's Rules
of Practice and Procedure and Section 35.11 of the Commission's
Regulations under the Federal Power Act, Pacific Gas and
Electric Company (PGandE) hereby requests permission to
reduce from $19.8 million to a level of $9.6 million the
March 12, 1982 Phase II increase authorized by the Commission
in its October 23, 1981 order in the abovementioned docket.
In support of this proposed adjustment, PGandE has enclosed
for filing six revised copies of Volumes 2, 3, 4, 5, 6 and
7, originally filed with the Commission on August 12, 1981.
As explained below, the proposed adjustments result from
recent changes in the estimated commercial operation dates
for PGandE's Diablo Canyon Nuclear units and Helms Pumped
Storage units and the deletion of costs associated with the
Cool Water Coal Gasification Program. In addition, certain
adjustments have been made in accordance with. the provisions
of the Economic Recovery Tax Act of 1981.
On October 23, 19811, the Commission issued an
order in the abovementioned docket accepting for filing and
suspending PGandEls proposed, two phase changes in resale
rate Schedules R-1, R-2 and FPC No. 8. Pursuant to the
terms of an Offer of Partial Settlement filed by PGandE and
adopted by the Commission in its October 23 order, the
y �
Kenneth F. Plumb,
Secretary -2- January 27, 1982
effective date for Phase I of the proposed increase, which
amounts to $24 million, was suspended until January 1, 1982.
Phase II of the proposed increase, representing the balance
of the $46.3 million overall increase or $22.3 million, was
suspended until March 12, 1982. Both the Phase I and Phase
II increases were allowed to become effective subject to
refund.
The Commission in its October 23 order also
directed PGandE to revise its filing to eliminate the effects
associated with PGandE's proposed use of incremental depreciation
in developing its cost -of -service. On November 23, 1981; in
compliance with this portion of the Commission's order,
PGandE filed revised versions of Volumes 2, 3, 6 and 7 of
its original August 12, 1981 filing. As pointed out in the
cover letter accompanying these revised volumes, the net
effect of eliminating the use of the incremental depreciation
methodology was a $2.5 million reduction in PGandE's revenue
requirement for the test period. As a result, the March 12,
1982 Phase II increase of $22.3 million, authorized by the
Commission subject to refund, was reduced to $19.8 million.
In light of recent changes in the anticipated
dates of commercial operation for PGandE's Diablo Canyon
Nuclear units and Helms Pumped Storage units and significant
changes in the Federal tax law, PGandE hereby proposes to
further reduce the March 12, 1982 Phase II increase from the
presently authorized level of $19.8 million to $9.6 million.
In its August 12, 1981 filing under this docket,
PGandE based its calculations, in part, on its estimates of
January 1, 1982 and September 1, 1982 commercial operation
dates for Diablo Canyon Nuclear Unit Nos. 1 and 2, respectively.
PGandE now estimates, for purposes of this filing, that
Diablo Canyon Unit No. 1 will achieve commercial operation
on August 1, 1982 and that Unit No 2 will probably not come
on line during the test year. Exclusion of Unit No. 2 from
the test year, inclusion of five rather than twelve months
of commercial operation for Unit No. 1 and updating the
associated maintenance and operating expenses. and capitol
costs has the effect of reducing PGandE's revenue requirement
for the test period (and the Phase II increase) by approximately
$8.6 million.
The originally estimated commercial operation
dates for Helms Pumped Storage Unit Nos. 1, 2 and 3 of
August, September and October, 1982, respectively, have also
/"t
0.
Kenneth F. Plumb,
Secretary -3- January 27, 1982
been revised. Helms Unit No. 3 is no longer expected to
come on line during the test period. Helms Unit Nos. 1 and
2 are now expected to achieve commercial operation on
October 1, 1982 and December 1, 1982, respectively. Exclusion
of Helms Unit No. 3 from the test year, reduction in the
number of months of anticipated commercial operation for
Helms Unit Nos. 1 and 2 and updating the associated capital
costs has the effect of further reducing PGandE's revenue
requirement for the test period by approximately $0.8 million.
The revenue requirement for the test period has
been further reduced by $0.6 million to reflect deletion
of the costs associated with the Cool Water Coal Gasification
Program in which PGandE has decided not to participate
at the present time.
In its August 12, 1981 filing, PGandE normalized
all book to tax timing differences. Under the Economic
Recovery Tax Act of 1981 (ERTA) quicker deduction of capital
is permitted. This accelerated recovery of capital is
reflected in the proposed revision as a reduction in current
tax expense. Consequently, deferred income taxes increased
for the test period in an amount equal to the decrease
in tax expense. The accumulated deferred tax reserve is
increased, and this increase, in turn, reduces rate base
for Period II resulting in a revenue requirement reduction.
In addition to the above-mentioned adjustments,
investment tax credit for the test period was increased due
to the deletion of the repair allowance under ERTA.
The effect of the adjustments made pursuant to
ERTA as described above, have the effect of reducting PGandE's
revenue requirement for the test period by approximately
$0.2 million.
The enclosed versions of Volume Nos. 2 through 7
of PGandE's August 12, 1981 filing under this docket have
been revised in keeping with the adjustments discussed
above. In addition, the November 23, 1981 revisions
excluding marginal depreciation have also been incorporated.
Tariff sheets for the Phase I rates now in effect and the
revised Phase II rates proposed to become effective on March 12,
1982 are included under revised Volume No. 2, Statement BL.
The following table sets forth the projected net
bills of the affected customers under Schedules R-11 R-2 and
FPC No. 8 customers for the test year on the basis of the
Phase I rates now in effect and on the basis of the reduced
Phase II rates proposed herein.
Schedule R-1
M
(000 Omitted)
Phase I
Existing Rates
Rates (as of
(ER80-214) 1/1/82)
Alameda
16,376
Healdsburg
2,522
Lodi
10,599
Lompoc
3,497
Santa Clara
20,876
Ukiah
4,260
S/T
58,130
Schedule R-2
Chester
.1,136
Weaverville
1,121
Westwood
5,699
Bay Point Light
34.4
Power
297
Shasta Dam Area PUD
34
S/T (R-2)
8,287
Sierra.Pacific 24,964
TOTAL 91,381
20,628
3,183
13,624
4,409
26,121
5,474
73,439
1,435
1,534
26.3
35.0
1,406
1,507
25.4
34.4
7,036
7,624
23.5
t
Phase II
410
t
Rates
Phase I
Phase 14
(proposed)
8
10,308
22,357
26.0
36.5
3,444
26.2
36.6
14,563
28.5
37.4
4,762
26.1
36.2
28,377
25.1
35-.9
5,873
28.5
37.9
79,376
26.3
36.5
1,435
1,534
26.3
35.0
1,406
1,507
25.4
34.4
7,036
7,624
23.5
33.8
387
410
30.3
38.0
44
46
29.4
35.3
10,308
11,121
24.4
34.2
31,635
34,474
26.7
38.1
115t382
124,971
26.3
36.8
The following table provides a comparison of rates
o prior to January 1, 1982 with Phase I rates and proposed
Phase II rates.
Present Phase I Phase 2I
Schedule R-1 (ER80-214) ($24 million) + ($9.6 million)
Customer Charge
Demand Charge
Energy Charge
Transmission
Volt. Disc.
Schedule R-2
$820.00 per month $1,492.00 per month $1,640.00 per month
$ 4.61 per kW $ 8.39 per kW $ 7.384 per kW
$ 0.00572 per kWh $ 0.01041 per kWh $ 0.01718 per kWh
$ 0.29 per kW $ 0.53 per kW $ 0.59 per kW
Customer Charge
$375.00 per month
$
682.00 per month
$
615.00 per month
Demand Charge
$ 4.04 per kW
$
7..35 per kW
$
6.595 per kW
Energy Charge
$ 0.00573 per kWh
$
0.01041 per kWh
$
0.01643 per kWh
Transmission
$ 0.29 per kW
$
0.53 per kW
$
0.59 per kW
Sthedule.FPC No. 8
Customer Charge
$21,750.00
per
month
$39,571.00
per
month
$34,000.00 per month
Demand Charge
$ 3.81
per
kW
$ 6.93
per
kW
$ 6.225 per kW
Energy Charge
$ 0.00560
per
kWh
$ 0.01019
per
kW
$ 0.01724 per kWh
9
Kenneth F. Plumb,
Secretary
C
-4- January 27, 1982
Pursuant to established Commission practice and
procedure the adjustments proposed above would normally be
achieved through the refund mechanism, following hearings,
if appropriate, and a Commission decision on the merits of
PGandE's August 12, 1981 filing, as revised on November 23,
1,981 pursuant to Commission order. However, under this
scenario, staff and intervenors would not have the benefit
of the revisions discussed above for use in preparing their
respective analyses. One consequence of such circumstances
would be to limit the usefulness of staff and intervenor
analyses in the Commission decision making process.
If, alternatively, the adjustments described above
were introduced, for the first time, at the hearing stage of
the proceedings under this docket, substantial delay and
additional expense might result from staff and intervenors'
need to revise their respective analyses before either
cross-examining PGandE's presentation or making their own
direct presentation.
In order to avoid the potential delays discussed
above and in the interest of providing the Commission with
as complete and accurate a record as possible, PGandE is
requesting permission to make the revisions to its original
filing described above. However, if the Commission declines
to adopt the amendments proposed by PGandE, the Company
respectfully requests that the Commission deem the request
to amend contained herein to be withdrawn.
To the extent that waiver of the 60 day notice
period or waiver of some other provision of the Commission's
rules proves to be a prerequisite to the granting of the
relief requested herein, PGandE respectfully requests that
the Commission grant such waiver or waivers as may be necessary.
Respectfully submitted,
DANIEL E. GIBSON
JACK F. FALLIN, JR.
HARRY W. LONG, JR.
By jJ .
HAMVY__W.__LOXG# SiG
HWL,Jr./ddt
K
CERTIFICATE OF SERVICE
N
I hereby certify that I have this day served the foregoing
document by mailing copies by first class mail properly addressed
to the following:
L. Jorn Dakin,
Commission Staff Counsel
Federal Energy Regulatory Commission
825 North Capitol Street, N.E.
Washington, D.C. 20426
Frederick T. Searls
Debevoise 6 Liberman
1200 Seventeenth Street, N.W.
Washington, D.C. 20036
Thomas R. Sheets,
Senior Attorney
Sierra Pacific Power Company
100 East Moana Lane
Post Office Box 10100
Reno, Nevada 89510
Arnold Fieldman
Paul H. Harrington
Goldberg, Fieldman i Letham, P.C.
1700 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
Wayne L. Emergy, Esquire
Kenneth R. Pepperney, Esquire
for United States Steel Corporation
Room 1569
600 Grant Street
Pittsburgh, Pennsylvania 15230
Ernest Geddes, General Manager
Turlock Irrigation District
Post Office Box 979
333 East Canal Drive
Turlock, California 95380
Donald R. Allen, Esquire
David P. Yaffe, Esquire
Duncan, Allen and Mitchell
1575 Eye Street, N.W.
Washington, D.C. 20005
Bay Point Light and Power Company
118 Sussex -Clyde
Concord, California 94520
N
David R. Straus, Esquire
Robert C. McDiarmid, Esquire
Thomas C. Trauger, Esquire
Speigel & McDiarmid
2600 Virginia Avenue, N.W.
Washington, D.C. 20037
J. R. Shepard
General Manager and Chief Engineer
Bureau of Electricity
Post Office Drawer H
Alameda, California 94501
Robert Grimshaw, General Manager
Northern California Power Agency
8421 Auburn Boulevard
Citrus Heights, California 95610
Honorable Archer F. Pugh
City Hall
126 Matheson Street
Healdsburg, California 95448
Honorable Joe Valencia
City Hall
100 Civic Center Plaza
Lompoc, California 93438
Honorable Hays Hickey
City Hall
203 South School Street
Ukiah, California 94582
Martin McDonough, General Counsel
Northern California Power Agency
555 Capitol Mail
Sacramento, California 95814
Honorable Richard L. Hughes
City Hall
221 West Pine Street
Lodi, California 95240
D. R. Von Raesfeld, City Manager
City Hall
1500 Warburton Avenue
Santa Clara, California 95050
Mr. Fred R. Saffer
R. W. Beck & Associates
1510 East Colonial Drive
Post Office Box 6817
Orlando, Florida 32803
Mr. Norman A. Hill
R. W. Beck i Associates
1851 Heritage Lane
Sacramento, California 95815
Stanley P. Hebert, Port Attorney
Thomas D. Clark, Deputy Port Attorney
Port of Oakland
66 Jack London Square
Oakland, California 94607-3798
Carl W. Ulrich, Esquire
Chapman, Duff and Paul
1730 Pennsylvania.Avenue, N.W.
Washington, D.C. 20005
Richard Jarrett
CP National Corporation
Post Office Box 4032
Concord, California 94524
Marvin S. Litt
Vice President and General Counsel
CP National Corporation
120 Montgomery Street, Suite 1800
San Francisco, California 94104
Executed at San Francisco, California this 27th day
of January, 1982.
AL� W.,&� -14
•
HARRY WI LONG* JR.
accordance with Article.F of the General Power Contract Provisions which are
made a part hereof by Article 19.
(c) If increases in the rate of charge for transmission service and
for transmission losses, either or both, are made during the term of this con-
tract and the Contracting Officer notifies the Contractor that an increase
will be made, the Contractor at any time not later than one hundred eighty
(180) days after the effective date of any such increase, but not thereafter,
may terminate this contract by written notice to the Contracting Officer, said
termination to be effective as of such subsequent date as the Contractor shall
therein designate.
POWER AND ENERGY DELIVERIES
14. All deliveries of power and energy by the United States to the Con-
tractor shall be in accordance with procedures agreed upon between the Con-
tractor and the Contracting Officer. The procedures shall provide schedules
necessary to meet the needs of the day-to-day operation.. Said procedures
shall also specify conditions for deliveries which may be greater or less than
scheduled that shall be adjusted in later deliveries.
OTHER RULES AND REGULATIONS
15. The Contracting Officer and the Contractor shall'mutually agree upon
and put into effect from time to time such other rules and regulations as may
be required in order to establish the methods of operation to be followed in
the performance of this contract.
9
RESALE OF ELECTRIC ENERGY
16. Distribution Principles. The parties hereto agree and understand
that the purpose of making low-cost, Federally -generated power available is to
encourage widespread use thereof, and the Contractor therefore agrees:
(a) That the benefits of Federally -generated power shall be made
available at fair and reasonable terms to all of its consumers at the lowest
possible rates consistent with sound business principles
(b) That it will, to the extent that different rules are not pre-
scribed by State laws or by State or Federal agencies, maintain proper books
of account in accordance with the system of accounts described for public
utilites, and licenses by the Federal Energy Regulatory Commission.
(c) That it will furnish for the information of the Contracting
Officer copies of schedules of resale rates in effect on the date of execution
of this contract, and will also furnish for the information of the Contracting
Officer schedules of resale rates hereafter adopted.
(d) That it will provide the Contracting Officer an annual state-
ment indicating that the charges to consumers are consistent with the prin-
ciples set forth in subarticle (a) hereof.
(e) That it will publish annually a report in a newspaper of gen-
eral circulation in the area served by the Contractor, and will include in
such report the operating and financial data of the Contractor's electric
distribution system, setting forth in detail the gross revenues and
disposition thereof. The first of such reports shall be published annually on
or before the first day of October. In lieu of the published annual report,
the Contractor may furnish such information by mailing copies of the annual
report to each of its consumers and a copy to the Contracting Officer.
CONSERVATION AND RENEWABLE ENERGY PROGRAM
17. (a) The Contractor and its members at the distribution level (as
determined bye s�' to be applicable) shall develop and implement a
conservation and renewable energy program. For the purposes of this Article,
the term "conservation and renewable energy program" means any program or
activity carried out by the Contractor to increase energy production by
renewable energy sources, increase the efficiency of energy use from existing
or planned facilities, or reduce energy consumption.
(b) To effect a conservation and renewable energy program, the
parties hereto agree as follows:
(1) the Contracting Officer will provide guidance and, if
requested, will assist the Contractor in development of a
conservation and renewable energy program. The 'Contracting Officer
has established formal guidelines and acceptance criteria which were
published in the Federal Register on November 13, 1981
(46 FR 56140).
11
C,
(2) The Contractor will develop a conservation and renewable
energy program suitable for its own geographic area and type of
utility operation and will submit said program to the Contracting
Officer for review and approval within 12 months of the effective
date of this contract. The program should include a description of
what the Contractor has done in the past and the plans for future
implementation. Credit will be given for past accomplishments.
Approval of the Contractor's program shall be in accordance with the
published guidelines and acceptance criteria. The approved
conservation and renewable energy program will be subject to review
by the Contracting Officer every 36 months.
(3) If the Contractor does not obtain the Contracting
Officer's approval of its program within 24 months of the effective
date of this contract or approval of the Contractor's program has
been revoked, the Contractor's firm power commitment, as set forth
in this contract,, may be reduced by 10 percent of the contract
rate(s) for firm power; Provided, That no such reduction shall be
made until 12 months after the Contracting Officer provides comments
to the Contractor outlining deficiencies of the Contractor's program
based on the guidelines and acceptance criteria referred to in
Section (1) above and unless the Contractor fails to obtain approval
by appropriate revision of its program.
EXHIBITS MADE PART OF CONTRACT
18. Inasmuch as the contract rate of delivery, operating agreement,
delivery conditions, electric service rate schedule, and transmission rate
12
schedule existing under this contract will vary during their term hereof, they
will be set forth in Exhibits A, B, C, D, and E respectively, and adjusted
from time to time as formulated between the parties hereto. Each of said
exhibits when executed by said parties shall became a part of this contract
during the term fixed by its provisions. The initial Exhibits A, B, C, D, and
E are attached hereto, and each shall be in force and effect in accordance
with its terms until respectively superseded by a subsequent exhibit.
GENERAL POWER CONTRACT PROVISIONS
19. The General Power Contract Provisions, effective April 1, 1979,
attached hereto-, are hereby made a part of this contract the same as if they
had been expressly set forth herein;
THE UNITED STATES OF AMERICA
By
Title
Address
By
Title
Address
13
N
Contract No.
EXHIBIT A
(ELECTRIC SEVICE-TO E FURNISHED)
1. This Exhibit A, made this day of 19 , to be
effective under and as a part of ContFact No. dated
19 (hereinafter called theContract), shall become
effective on the ate 77nitial service under the Contract and shall remain
in effect until superseded by another Exhibit A; Provided, That;
(a) This Exhibit A or any supersedi<ng Exhibit A shall be terminated
by the termination of the Contract; and
(b) The Contracting Officer reserves the right to terminate this
Exhibit A and require the substitution of a new exhibit at such
time as new delivery points or conditions may be established -
for additional firm power service.
Point of Delivery
2. The Contracting Officer, under terms and conditions stipulated in the Con-
tract will furnish electric service to the Contractor, from and after the date:
of initial service as defined in the Contract at the point at which the
circuits of the Contractor are attached to the ,
circuits of the Pacific Gas and Electric Company at or near
California.
3. Electric power and energy furnished hereunder will be delivered to the
Contractor at a nominal delivery voltage of
THE UNITED STATES OF AMERICA
By
Title
Address
By
Title
Address
Contract No.
EXHIBIT 6
(CONTRACT RATE OF DELIVERY)
1. This Exhibit B, made this day of 19 to
be effective under and as a part of Contract No. , dated ,
19 (hereinafter called the Contract), shall become effective on the
first day of 19 , and shall remain in effect until
superseded by another Exhibit B; Proms, That this Exhibit B or any
superseding Exhibit B shall be terminated by the termination of the Contract.
Contract Rate of Delivery for Firm Power
2. On and after the effective date of this Exhibit B the contract rate
of delivery for firm power shall be
THE UNITED STATES OF AMERICA
By
Title
Address
By .
Title
Address
W
t '
Contract No.
EXHIBIT C
(OPERATING AGREEMENT INCLUDING QUANTITATIVE DETERMINATIONS)
1. This
Exhibit C, made this
day of
19 , to be
effective
under and as a part
of ontract No.
, dated
, 19 ,
(hereinafter called the
Contract), shall become
effective
on the fiFit day of
the
billing period and
shall remain
in effect until
superseded y another x
i t C; Provided, That;
(a)
This Exhibit C or any
superseding Exhibit C
shall be terminated by
the termination of
the Contract; and
(b) It is recongized that the Contactor may desire to change its elec-
tric service arrangements from time to time and that appropriate
modifications may be required in the Exhibit C accordingly; and the
parties will consider a revision to the exhibit if and when the Con-
tractor desires to change its arrangements, the United States re-
serving specifically the right to terminate this Exhibit C 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 arrange-
ments or the principles set forth in the contract.
Contractor's System. Requirements
2. The System Definitions and Billing Determinations set forth in this Operat-
ing Agreement are based upon the understanding of the parties that the Con-
tractor's electric service arrangements are such that its system requirements
are being supplied from the following sources only:
(a) Firm power service from the United States.
(b) Additional power service from a co -suppliers own sources.
System Definitions
3. (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 interated demands established during the billing period
at the point(s}g of delivery as measured and adjusted if necessary in
accordance with Exhibit A, and of the 30 -minute interated demands
established during the billing period at any points? of delivery at
other than those where the United States makes deliveries.
Billing Determinations
4. (a) The billing demand and energy billed for power service in ary bil-
ling period in which the Contractor's System Demand is equal to or
less than the contract rate of delivery as set forth in Exhibit B,
the Contractor shall pay for all power and energy delivered here-
under to its system during such period at the rate provided for in
Article 13.
a o L
(b) (1) The billing demand for firm power service in any billing period
JOIN in which the Contractor's System Demand is larger than the con-
tract rate of delivery as set forth in Exhibit B, the
Contractor shall pay for electric service at the rate provided
for in Article 13 using the effective contract rate of delivery
set forth in Exhibit B, as the billing demand:
(2) The energy billed for firm power service in any billing period
in which the Contractor's System Demand is larger than the con-
tract rate of delivery, as set forth in Exhibit B, shall be
determined by the following formula:
Energy Billed = � x C
Where: A = The maximum rate of delivery for firm power service as
established by Exhibit B of the contract.
B = Contractor's System Demand as determined pursuant to sec-
tion (a) of paragraph 3.
C = Contractor's System Energy Requirements as determined
pursuant to section (b) of paragraph 3.
THE UNITED STATES OF AMERICA
By
Title
Address
By.
Title
Address.
C-2
K
EXHIBIT E
(TRANSMISSION RAT SCHEDULE)
(Above 44W
1
Contract No.
1. This Exhibit E, made this day of 19 , to
be effective under and as a part o-FContract No. gated
19 (hereinafter called the Contract), shall become
effective on the date oM n tial service under the Contract and shall remain
in effect until superseded by another Exhibit E; Provided, That:
(a) This Exhibit E or any superseding Exhibit E shall be terminated
by the termination of the Contract; and
(b) The Contracting Officer reserves the right to terminate this
Exhibit E and require the substitution of a new exhibit at such
time as new rates, charges or conditions may be established for
firm power service as provided for in Article 13 of the
Contract.
2. When the United States utilizes transmission facilities other than its own
in providing service under this contract, and costs are incurred by the United
States for the use of such facilities, the Contractor:
(a) Shall pay that portion of such costs, including transmission
losses, which are 'in excess of one mill per kilowatt-hour
transmission charge and in excess of five percent (5%) trans-
mission losses incurred in the delivery of,
(i)al'1 power up to the number of kilowatts on which the
demand or capacity applies; and
(ii) all energy up to the amount equal to the number of kilo-
watt-hours on which the energy charge applies; and
(b) Shall pay all such costs, including transmission energy losses,
incurred in the delivery of all energy (including secondary and
dump energy) in excess of the amount stated in subsection 2(a)
of this article. '
3. The transmission losses chargeable to the Contractor shall, for billing
purposes, be added to the meter readings of the power and energy delivered to
the Contractor. The total current transmission costs under the PG&E Contract
for electric service as contemplated herein are: 1 mill per kilowatt-hour
e
delivered in addition to five percent (5%) of power and energy delivered, to
compensate for transmission losses. The minimum charge for transmission
of energy under terms of this contract shall not be less than twenty-five (25)
cents per kilowatt times the maximum 30 -minute integrated demand each month.
THE UNITED STATES OF AMERICA
By.
Title
Address
By
Title
Address
E-2
Contract No.
EXHIBIT E
(TRANSMISSTUT SCHEDULE)
(Below 44kV)
1. This Exhibit E, made this day of 19 , to
be effective under and as a part of Contract No. dated
19 , (hereinafter calledthe Contract), s all become
effective on the date ostial service under the Contract and shall remain
in effect until superseded by another Exhibit E; Provided, That:
(a) This Exhibit E or any superseding Exhibit E shall be terminated
by the termination of the Contract; and
(b) The Contracting Officer reserves the right to terminate this
Exhibit E and require the substitution of a new exhibit at such
time as new rates, charges or conditions may be established for
firm power service as provided for in Article 13 of the
Contract.
2. When the United States utilizes transmission facilities other than its own
in providing service under this contract, and costs are incurred by the United
States for the use of such facilities, the Contractor:
(a) Shall pay that portion of such costs, including transmission
losses, which are in excess of one mill per kilowatt-hour
transmission charge and in excess of five percent (5%) trans-
mission losses incurred in the delivery of,
(i) all power up to the number of kilowatts on which the
demand or capacity applies; and
(ii) all energy up to the amount equal to the number of kilo-
watt-hours on which the energy charge applies; and
(b) Shall pay all such costs, including transmission energy losses,
incurred -in the delivery of all energy (including secondary and
dump energy) in excess of the amount stated in subsection 2(a)
of this article.
3. The transmission losses chargeable to the Contractor shall, for billing
purposes, be added to the meter readings of the power and energy delivered to
the Contractor. The total current transmission costs under the PG&E Contract
for electric service as contemplated herein are: 1 mill per kilowatt-hour
Q)
delivered in addition to five percent (5%) of power and energy delivered, to
compensate for transmission losses. The minimum charge for transmission
of energy under terms of this contract shall not be less than twenty-five (25)
e:-cents.per kilowatt times the maximum 30 -minute integrated demand each month.
In addition to the charges payable under this Article, the Contractor shalt
pay, in compensation for low voltage power, twenty-two cents (50.22) per
kilowatt of monthly maximum demand, plus three percent (3%) for all power and
energy delivered both as measured at the point of delivery.
THE UNITED STATES OF AMERICA
By
Title
Address
By.
Title
Address
E-2