HomeMy WebLinkAboutAgenda Report - September 7, 1983 (33)y� Lwu� �atu
�
�T !, Mz�4i��
77
� �►SEPTEMRR i
ACHF'111W M On motion of Mayor P -.-o Ten pre Snider, Reid second, Count I
OalIRAC,T FOR a-Iopted Resolution No. 83-99 approving Amendatory Agreement
F. J3=IC SERVICE between the City of Loci and the United States Department of
WM-i WAPA Energy, Western Power Administration - (Electric Service
Arrangement for Cogeneration and P.Pnewable Resource Projects
RES. NO. 83-99 NCPA 2) and authorized the City Manager and City Clerk to
execute the Agreement on behalf of the City. The motion
carried by the following vote:
Ayes: Counc i I Mmbers - Nlurp`ty, , Reid, Snider, arxl
Olson (Mavor)
Noes: Counc i l Nienbe rs - None
Abser.t : Counci I Mmbers - None
Abstain: Council Members - Pinkerton
LI
2
I
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER AJMINISTRATION
Central Valley Project
AMENDATORY AGREEMENT WITH THE CITY OF LODI
(Electric, Service Arrangement for
Cogeneration and Renewable Resource Projects - NC?A 2)
Section
1
2-8.
9
10
11
12
13
14
15
16
OP` Amendment No. 1 to
Contract No. DE-M;65-82WP -59015
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Project
AMENDATORY AGREEMENT WITH THE CITY OF LODI
(Electric: Service Arrangement for
Cogeneration and Renewable Resource
Projects - NCPA 2)
Title
Preamble
Explanatory Recitals
Term of Agreement
Definition and Explanation
of Terms
Renewable Resource Allocation
Energy Deliveries by the City
Energy Scheduling Procedures
Energy Accounting
Payment
Other Agreement.
Signature Clause
Resolution
Page
1
1-3
3-4
4-6
6-7
7-10
11
11-13
14-15
15
'.. -. r. ::: ,a :•-q, a..,.r n.,*.=;s .i91r ,.:.• :�>, r �.WA i :'i' _ .. -
t -
Amendment No _ 1 to
%tract No. DE-MS65-82WP-59015
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION ..�
Central Valley Project
AMENDATORY AGREEMENT WI13 THE CITY OF LODI
(Electric Service Arrongement for
Cogeneration and Renewable Resource Projects-NCPA 2)
1. THIS AMENDATORY AGREEMENT, made this day of
1983, in pursuance of the Act of Conqress approved June
17, 1902 (32 Stat. 388), the Act of Congress approved ALgust 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, Department of Energy, Western Area Power
Administration (the United States) acting by and through the officer
executing this contract, a duly appointed successor or a duly authorized
representative, and the CITY OF LODI (City or Contractor), a municipal
corporation organized and existing under the laws of the State of
California,
WITNESSETH,
0
2. WHEREAS, the United States operates an electric power system
including generation and transmission facilities to serve- preference
customers of the Central Valley Projct (CVP); and
3. WHEREAS, the City operates an electric utility system,
including transmission and generation, and is a preference customer of
the United States under the provisions of Contract No. DE-MS65-82WP-
59015, effective March 1, 1982, which as such agreement may be amended
or ti•eplaced shall hereinafter be called the Original Agreement; and
4. WHEREAS, the United States has entered into Contract No. 14-
. 06-200-2948A, dated July 31, 1967, as amended, supplemented or
superseded, with Pacific Gas and Electric Company, (PGardE), which
provides for, among other things, a right of the United States to use
PGandE's transmission system for the transmission of power and energy
from the CVP to preference customers of the CVP, including the City; and
5. WHEREAS, in settlement of the lawsuit entitled The City of
Santa Clara vs. Duncan et. al., the United States and other parties to
the lawsuit entered into a memorandum of understanding dated February 8,
1980, hereinafter called the Santa Clara Settlement, which provides for
PGandE to support an increase of 102 MW in the customer load level of
the CVP, enabling the United States to market additional power and
energy to CVP preference customers; and
6. WHEREAS, the Uni':ed States declared its intent in its 1981 rVP
Final Power Marketing Plan *o support renewable resources and
2
cogeneratio ojects through the marketing ` 30 MW of its increased
CVP customer load level to preference entities which are willing to make
available to the United States electric Anergy; and
7. WHEREAS, the City is a member of the Northern California Power
Agency (NCPA), a joint powers agency of the State of California, and has
an entitlement to 14.560 percent of the output of the NCPA Geothermal
Project No. 2 which will have an installed capacity of 110 MW; and
8. WHEREAS, the United States is willing to allocate 1.5 MW of
its increased CVP customer load level and associated energy to the City
in exchange for an equivalent amount of energy from the Powerplant or
from other sources available to the City;
NOW, THEREFORE, the parties hereto orutually agree as follows:
w
TERM OF AGREEMENT
9. a) This Amendatory Agreement shall be effective on the date
of execution, and shall terminate at 2400 hours on June 30, 1994.
b) In addition to termination provisions specified in the
Original Agreement, this Amendatory Agreement may :,e terminated at the -
end of any Contract Year by the City on one year notice of termination
to the United States.
".1f�Firy\'�'t�.:�.5i1..�`i.�i��i"����.._'�i�^,�;.;'e"rl,!•..,i,��..:z�"d..: F'^'�?7!;Li`��i:"SR A{�R�;�:k,'.ni,,'��.a`��'i�{Q?i;�Fi�"'SYY44... ,.. ^ f'.- ., �.,n tY: �. . ,. T�'p�r.�•±„1FF."�n':.�:
c)0 Upon termination of this Amrstory Agreement, benefits
conferred upon the parties and obligations incurred hereunder shall be
preserved until satisfied.
DEFINITION AND EXPLANATIOA OF TERMS
10. a) "Contract Rate of Delivery" means City's maximum rate
of delivery of firm electric energy from the CVP pursuant to the
Original Agreement and the POandc Contract.
b) "Contract Year" means the period beginning on January 1
and ending on the following December 31; the first Contract Year shall
begin at 0000 hour on the first day of the first month following
execution of
this
Amendatory
Agreement and the last Contract Year shall
end �t 2400
hours
on June 30?
1994.
c) "Energy Deficit Account" means the energy account kept by
the United States to record the amount of energy owed by the City to the
United States under article 14 herein.
d) "Energy Surplus Account" means the energy account kept by
the United States to record the amours of energy owed by the United
States to the City under article 14 herein.
(e) "Interconnection Agreement" means the agreement between
4
NCPA and PG a E, as such agreement may here fter be amended,
supplemented or superseded, providing for the interconnection and trans-
mission of resources owned by the City.
f)
"Off -Peak Hours" means
those
hours between
10.00 p.m.
and 7:00 a.m.
Monday through Saturday,
those
hours between
10:00 p.m►. _on
Saturday and
7:00 a.m.'on Monday, and
those
hour: between
7:00 a.m. and
10:00 p.m. on holidays.
g) "PGandE Contract" means Contractt- No. 14-06-200-2948A
dated July 31, 1967 between the United States and PGandE, as such
Contract may hereinafter be amended, supplemented or superseded, prol-
viding for, among other things, a right of the United States to use
PGandE's transmission system for the transmission of power and energy
from the CVP to preference customers of the CVP, including the City.
h) "Point of Receipt" means the point at PGandE's Fulton or
Lakeville Substation near the Powerplant where energy is delivered by
the City to PGandE for service to CVP loads, or such other locations as
may be agreed to by the United States and the City.
i) "Power Sill" means the statement of charges issued to
meet the obligations .of the United States and the City under the
Original Agreement.
"L'9'*`hr�?n',".y�O.",.��`..�. Yr >'_!-'4��+a.'+°�.,�3+-�e.�"ymi�p�+..faym°.ti'^47r�;'.,'?Cr �-3�itYra�''yr'i1�1�i$`Kt "T?.?.K?>'�'�'>y'gv,•,^'§�:s .. ''.'^Ct.� _ .- �w'Y7v4 .: � .. -
j) "Powerplant" means the NCPA Geothermal Project Number 2
of which the City has an entitlement to 14.560 percent of the output and
which will have an installed capacity of 110 MW.
Q "Powerplant Capability" means, the City's share of the _
average amount of power available from the Powerplant over any Contract
Year under Powerplant conditions existing during such Contract Year.
1) "Projected Powerplant Capability" means the Powerplant
Capability from the City's ownership share of the Powerplant projected
to be available during a Contract Year determined by the City in
accordance with generally accepted utility practice two months in
advance of each Contract Year.
m) "Renewable Resource Allocation" means the 1.5 MW portion
of the City's Contract Rate of Delivery made available to the City by
the United States pursuant to article 11 here -ander, and energy
associated with such portion.
RENEWABLE RESOURCE ALLOCATION
11. a) Effective at 0000 hour on the first day of the first
month following execution of this Amendatory Agreement, the City's
Contract Rate of Delivery shall be increased by 1.5 MW. Such portion of
the City's Contract Rate of Delivery shall hereinafter be referred to as
the City's Renewable Rescurce Allocation.
b) All rights and obligations of the City and the United
States with respect to the City's Renewable Resource Allocation shall be
consistent with the Original Agreement and the PGandE Contract.
ENERGY DELIVERIES BY THE CITY
12. a) . The City shall be obligated to sell to the United States,
in exchange for the Renewable Resource Allocation, an amount of energy
equal to the amount of energy associated with the Renewable Resource
Allocation subject to the provisions described below.
(b) Each Contract Year the City shall use its best efforts to
deliver c,r arrange to have delivered to the United States at the Point
of Receipt an amount of energy equal to the amount of energy associated
with its Renewable Resource Allocation for such Contract Year. The
United States shall use its best efforts to schedule energy supplied
from other sources in a manner which enables it to accept energy
delivered by the City hereunder.
c) At any time other than Off -Peak Hours from April 15 to
June 30, the obligation of the City to deliver energy to the United
States pursuant to subarticie (a) above shall, at the option of the
City, be reduced to the extent the United States refuses delivery of
7
such energy due to:
(i) Curtailments by PGandE of CVP power generation or
purchases due to low load conditions in the PGandE service area;
(ii) Purchases of energy by the United States in amounts,
which are in excess of that which the United States is able to use
in its loads or store in accounts with PGandE or others;
(iii) Uncontrollable forces., as described in article E of
the General Power Contract Provisions attached to the Original
Agreement, on the system of the United States or PGandE when and to
the extent such uncontrollable force continues for a period of over
30 days;
(iv) For any other reason causing curtailment by the
United States of energy scheduled by the City hereunder if
preschedules of such energy were submitted by the City on or after
the previous workday and were accepted by the United States; or
(v) For arty other condition causing curtailment of
energy deliveries hereunder by the United States, when and only to
the extent such condition continues for a period of over 30 days.
d) The rate of delivery for energy delivered by the City to
8
the United g1tes hereunder shall be deternlI.-d by the City and
designated in preschedules submitted by the City; rrovided, however;
reductions in the City's obligation for those conditions described in
subarticle (c) above shall be limited to energy scheduled up to, but not
greater than twice the Renewable Resource Allocation.
e) The obligation of the City 'to deliver energy to the
United States hereunder may be reduced at any time upon agreement
between the parties.
f) During Contract Years when the City is unable to deliver
to the United States the amount of energy specified in subarticle (a)
above as reduced pursuant to this article, and such inalbility is
partially or wholly attributable to an unanticipated failure of the
Powerplant Capability for the Contract Year to meet the Projected Power -
plant Capability for such Contract Year, the deficit in the City's
obligation due to such failure shall be entered into the Energy Deficit
Account pursuant to subarticle (h) and article 14 hereunder.-
9)
ereunder:
g) To the extent the City is unable to deliver or have
delivered to the United States the amount of energy specified in sub -
article (a) above as reduced pursuant to this article, without affecting.
its capacity credit for the Powerplant under the Interconnection Agree-
ment, the deficit in the City's obligation shall be entered into the
h) 'fo the extent the City is un"A to deliver or have
delivered to the Uni-,ed States the amount of energy specified in
subarticle (a) above as reduced pursuant to this article, the deficit in
the City's obligation due to such inability shall be entered into the
Energy Deficit Account pursuant to article 14.
i) (i) Unless otherwise agreed, at the end of a Contract
Year in which the City has failed to satisfy
substantially all of its energy obligation described in
subarticle (a) above as reduced pursuant to this article,
and less the balance in the Energy Surplus Account, and
such failure is not attributable to conditions described
in subarticles (f) and (g) above or forces beyond the
City's control, the United States may reduce or revoke
the City's Renewable Resource Allocation upon one year's
notice.
(ii) Upon such notice, the City shall have one year in
which to make up its energy obligation under arrangements
acceptable to the United States and upon satisfaction of
such obligation within one year, shall be entitled to
retain its Renewable Resource Allocation under the terms
hereof.
10
KP eh
ENERGY SCHEDULING PWCEDURES
13. All deliveries of energy by the City to the United States
hereunder shall be in accordance with procedures agreed upon between the
City and the United States and attached inereto. Such procedures shall
be developed for the period prior to the development of independe^t NCPA
dispatching ability and for the period subsequent to the development of
such ability, and shall include the following:
a) Written notice by the City to the United States two
months in advance of each Contract Year except for the first Contract
Yea;-, indicating the amount of Energy which the City expects to make
available to the United States during such Contract Year on a monthly
basis and the Projected Powerplant Capability for each month of such
year; '
b) Prescheduling by the City in advance of each month of
hourly or half-hourly amounts of energy for each month; and
c) Procedures for adjustment of daily and hourly or half-
hourly schedules.
ENERGY ACCOUNTING
14. a) During any Contract Ye,:�r, the amounts of energy whicA the
11
P
City is unae to deliver to the United States, as provided in
subarticles 12(f), 12(g), and 12(h) shall be entered into an Energy
Deficit Account. If, during any Contract Year, the City is able to
deliver to the United States an amount of energy in excess of the amount
associated with its Renewable Resource Allocation for the Contract Year,
the United States shall enter the excess in an Energy Surplus Account,
provided that the United States shall not be obligated to accept such
energy to the extent the City's obligation to deliver energy to the
United States pursuant to article 12 has been met for the Contract Year.
b) The amount remaining in the Energy Deficit Account or
Energy Surplus Account at the end of the Contract Year, if not settled
pursuant to this article, shall be carried over to be netted against the
amount remaining in the next year's Energy Surplus Account or Energy
Deficit Account, respectively.
c) The City may reduce the balance in the Energy Deficit
Account by delivering energy to the United States at any time agreed
upon. Energy delivered to reduce the Energy Deficit Account shall be
delivered pursuant to the provisions contained in articles 12 and 13.
d) The City shall use its best efforts to settle each year's
Energy Deficit Account as soon as practicable, but shall have one,
Contract Year in which to settle such account without interest. If the
City is unable to settle the Energy Deficit Account within one year of
12
q)
the last day of the Contract Year in which the deficit was incurred, the
amount remaining in the Energy Deficit Account shall accrue interest in
additional energy at 5 percent per annum, which amount shall be included
as part of the total Energy Deficit Account to be netted in subsequent
years.
e) The United States may settle the Energy Surplus Account
by reducing the amount of energy which the City is obligated to deliver
hereunder at times and in amounts necessary to balance the account.
f) The parties shall use their best efforts to bring the
energy account balances to sero prior to termination of this Amendatory
Agreement. If there is a balance in the Energy Deficit Account upon
termination of this Amendatory Agreement, the City shall deliver energy
in an amount sufficient to balance the account within one year, unless
otherwise agreed by the parties.
g) If either party fails to satisfy its respective
obligations within one year after termination of this Amendatory
Agreement, it shall pay an amount in dollars determined as the amount of
energy owed times the payment described under subarticle 15(a). Such
payment shall include a 10 percent per annum interest penalty, unless
otherwise agreed, for each 30 day period in which such obligation is not
fulfilled.
13
4) 1)
PAYMENT
15. a) For energy delivered to the United States at the Point of
Receipt to satisfy the City's obligation hereunder, the United States
shall pay the City at a rate commencing at $.035/kWh. Such rate shall.
be increased at the beginning of each Contract Year by the percentage of
increases in operation and maintenance costs and geothermal steam costs
associated with the Powerplant which take effect during the previous
Contract Year, up to $.05/kWh. If such rate, the CVP composite rate for
capacity and energy and the rate for energy from the United States' Batik
Account No.2 with PGandE exceed $.05/kWh then the rate shall be same as
the lesser of the CVP composite rate + $.005/kWh or the rate for energy
from Bank Account No. 2.
b) The City shall provide to the United States a monthly
statement of charges for energy delivered during the preceding month_
c) The United States may credit monthly amounts due the City
for energy made available hereunder against the Power Bill for such
month. In the event the amount due by the City under the Power Bill is
less than the amount owed by the United States under this Amendatory
Agreement, the United States shall pay the difference to the City as
soon as the necessary vouchers can be prepared, ordinarily by the last
day of the month following the month in which the statement of charges
was delivered to the United States.
14
d) - The City shall pay the Unite, States for its Renewable
Resource Allocation at established CVP rates for firra power and energy-
OTHER
nergy_
OTHER AGREEMENTS
16. a) Where conflicts exist between any of the terms of this
Amendatory Agreement with the terms of the PGandE Contract, the terms of
the PGandE Contract shall control. This provision shall not consititut e
a waiver of claims which the City might otherwise have against the
United States or PGandE, and which do not affect interpretation of the
terms of this Amendatory Agreement.
b) This Amendatory Agreement shall be in addition to and
shall supplement the Original Agreement. Termination of this Amendatory
Anreement or breach of any of the terms of this Amendatory Agreement
shall not constititute termination of the Original Agreement or breach
of any of the terms of the Original Agreement.
IN WITNESS WAEOF, the parties hereto have executed this agreement.
Attest
Title
UNITED STAPES OF AMERICA
Department of Energy
By
Title
Address Western Area Power Administration
2800 Cottage Way
_ Sacramento, CA 95825
CITY OF LODI, CALIFORNIA
By
Title
Title
Address
RESOLUTION
BE IT RESOLVED by the City Council of the City of Lodi, California,
that the Mayor and City Manager be and they are hereby authorized to execute
for and on behalf of the City of Lodi, California, the attached Contract for
Eleztric Service vrith the UNITED STATES OF AMERICA, which Contract was duly
presented to the (,'ity Council, and which Contract is hereby approved.
State of California
Date:
(SEAL)
) ss
, the duly appointed and
qualified clerk of the City of Lodi, 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 v 19 0
By
Title
Contract No. DE-MS65-82WP59015
EXHIBIT B
(CONTRACT RATE OF DELIVERY)
J
1. This revised Exhibit B, made this day of -
19 , to be effective under and as a part oT-Tontract No. -M -
daYec February 24, 1982, (hereinafter called the Contract), shall become
effective on the first day of , 19 , and shall remain in
effect until superseded by anot e- xhibit rovideaf That this Exhibit B or
any superseding Exhibit B shall be terminated by the termination of the
Contract.
Contract Rate of Delivery (CRD)
2. (a) On and after the effective date of this Exhibit B the CRD for
firm power shall be 8,277 kilowatts of Westlands Withdrawable power and 3.673
kilowatts of the 26 megawatts of firm power and 1,500 kilowatts pursuant to
Amendment No. 1, to this agreement, which provides for the City's renewable
resource allocation, for a total CRD of 13,450 kilowatts.
(b) The City's renewable resource allocation will be terminated on
the date of termination of Amendment No. 1.
3. The original allocation referred to in Article 10(c) of this
contract shall be 8,327 kilowatts of Westlands Withdrawable power and 3,673
kilowatts of the 26 megawatts of firm power for a total of 12,000 kilowatts.
THE UNITED STATES OF AMERICA
By. I
Title Area Manager
Address Western ,Area Power Administration
.2800 Cottage Way
Sacramento, CA 95825
CITY OF LODI
By.
Title City Manager
Address City of Lodi _
221 W. Pine Street
Lodi, CA 95240