HomeMy WebLinkAboutResolutions - No. 83-47RESOLUTION NO. 83-47
RESOLUTION AUTHORIZING LEGISLATIVE
APPROPRIATION TO VARIOUS RESERVES
BE IT RESOLVED that the City Council of the City of Lodi does hereby direct
that appropriations be made to the following reasonable and proper
accounts:
Electric Utility Hand Operating Reserve $2,554,090.00
Sewer Utility Fund Operating Reserve $ 104,550.00
Water Utility Fund Operating Reserve $ 110,065.00
General Find Operating Reserve $ 176,440.00
PL and PD Reserve $ 347,830.00
Dated: June 1, 1983
I hereby certify that Resolution No. 83-47 was passed and
adopted by the City Council of the City of Lodi in a regular
meeting held June 1, 1983 by the following vote:
Ayes: Council Mmbers - Pinkerton, Snider, Murphy,
and Olson (Mayor)
Noes: Council Members - None
Absent: Council Members - Reid &
Alice M. Re
City Clerk
83-47
Ahftckn.a,, �O
Res. S3 -if-)
NORTHERN CALIFORNIA POWER AGENCY
BE IT RESOLVED BY THE COMMISISON OF THE NORTHERN CALIFORNIA POWER AGENCY,
as follows:
Section 1. The form of Interconnection Agreement attached hereto is
hereby approved, and the General Manager is authorized to execute the same
on behalf of this Agency.
Section 2. The Secretary of this Agency is directed to send a copy of this
resolution to each of the members of this Agency, except the cities of Redding
and Santa Clara, with the request that each such member authorize and execute
such agreement on or before July 11, 1983.
Section 3. The cities of Redding and Santa Clara have determined not to
sign the attached agreement, and they will therefore not be bound by it.
15
Vote
Abstained
Absent
City of - Alameda
Biggs
Gridley
Heal dsburg
Lodi
Lompoc
Palo Alto
Redding
x
Roseville
e,.
Santa Clara
_
X
Ukiah_
Plumas-Sierra
el -2-1311
APPROVED
`` `
day �L.�
1983.
ADOPTED AND this
of
f�1`� _
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INTERCONNECTION AGREEMENT
BETWEEN
PACIFIC GAS AND ELECTRIC COMPANY
AND
NORTHERN CALIFORNIA POWER AGENCY,
CITY OF ALAMEDA, CITY OF BIGGS,
CITY OF GRIDLEY, CITY OF HEALDSBURG,
CITY OF LODI, CITY OF LOMPOC,
CITY OF PALO ALTO, CITY OF ROSEVILLE
CITY OF UKIAH
AND PLUMAS SIERRA RURAL ELECTRIC COOPERATIVE
TABLE OF CONTENTS
Page
1
Definitions
3
1.1
Capacity Rating
4
1.2
Capacity Reserve
4
1.3
CEC
4
1.4
Control Area
.4
1.5
Costs
4
1.6
Committee
5
1.7
Delivery Points
5
1.8
Demand
5
1.9
Effective Date
5
1.10
Emergency Power
5
1.11
FERC
5
1.12
Firm Power
5
1.13
Firm Transmission Service
5
1.14
Forced Outages
6
1.15
Forecasted Operation Date
6
1.16
Good Utility Practice
6
1.17
Inadvertent Energy
6
1.18
Initial Operation Date
6
1.19
Interconnection
6
1.20
Interruptible Load
6
1.21
Interruptible Transmission Service
7
i
TABLE OF CONTENTS
(continued)
rt
Page
1.22
Maintenance Power
7
1.23
Management Committee
7
1.24
March 1 Forecast
7
1.25
NCPA Additional Projects
7
1.26
NCPA Annual Peak Load
7
1.27
NCPA Annual Peak Load Responsibility
8
1.28
NCPA Average Spinning Reserve
8
1.29
NCPA Capacity Reserve
8
-- 1.30
NCPA Continuous Spinning Reserve
8
1.31
NCPA Initial Project
8
1.32
NCPA Member Customers
8
1.33
NCPA Projects
9
1.34
NCPA Units
9
1.35
Neighboring Distribution System
9
1.36
Neighboring Entity
9
1.37
Northwest Energy
9
1.38
Pacific Governing Reserve Percentage
10
1.39
Pacific Northwest
lol.
1.40
Pacific Spinning Reserve Percentage
10
1.41
Partial Requirements Power
10
1.42
Point of Connection
10
ii
TABLE OF CONTENTS
(continued)
1.43
Points of Receipt
1.44
Scheduled Maintenance Outages
1.45
Service Area
1.46
Short -Term Firm Power
1.47
Spinning Reserves
1.48
Stanislaus Commitments
1.49
The Geysers
1.50
Third Parties
1.51
Transmission Area
1.52
Western
1.53
Year
2
NCPA Projects
2.1
Construction and Operation
2.2
NCPA Projects Located Outside Pacific
Control Area
2.3
Initial Operation Date
2.4
Capacity Rating of NCPA Units
3
NCPA Reserves
3.1
NCPA Capacity Reserve
3.2
NCPA Spinning Reserve
4
NCPA Power Sales to Pacific
4.1
Surplus Power Sales from NCPA Projects
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TABLE OF CONTENTS
(continued)
4.2
Emergency Power
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Power Sales to NCPA
5.1
General
5.2
Partial Requirements Power
5.3
Short -Term Firm Power
5.4
Emergency Power
5.5
Reserve Capacity
5.6
Power Provided During Curtailment Due to
Transmission Construction Delays
5.7
Maintenance Power
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Transmission Service Provided by Pacific
to NCPA
6.1
Transmission Service Generally
6.2
Firm Transmission Service
6.3
Interruptible Transmission Service
6.4
Transmission Service Requirements
6.5
Transmission Losses
6.6
Delivery Conditions
6.7
Commencement of Charges for Transmission
Service
6.8
Cancellation Charges
7
Coordinated Operation
7.1
Interconnection
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TABLE OF CONTENTS
(continued)
Page
7.2
Operation Schedule and Records
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7.3
Coordinated Maintenance
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7.4
NCPA Project Schedule
49
7.5
Planning Data
49
7.6
Designation of Each Additional NCPA Project
or NCPA Unit
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7.7
Reactive Power Requirements and Power Factor
Correction-
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7.8
Interruptible Load
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8
Rates and Charges
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8.1
Pacific's Rates
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8.2
Unrestricted Right to File Unilateral Rate .
Changes
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9
General Provisions
54
9.1
Notices
54
9.2
Load Shedding
55
9.3
Agreement Effective Date
57
9.4
Term
57
9.5
Liability
58
9.6
Indemnification
68
9.7
Effect on Other Contracts
69
9.8
Uncontrollable Forces
69
v
TABLE OF CONTENTS
(continued)
i w<
Page ,
9.9
No Dedication of Facilities
70
9.10
Titles
70
9.11
Regulatory Authority
70
9.12
Billing and Payment
71
9.13
Engineering and Operating.Committee
74
9.14
Settlement of Disputes and Arbitration
77
9.15
Appendices
79
9.16
Assignment
79
9.17
New NCPA Member Customers
79
9.18
Non -Waiver
79
9.19
Execution by Counterpart
80
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APPENDICES
vii
Page
Appendix
A
Rate Appendix
Appendix
B
Relay Setting for Automatic Load
Shedding
Appendix
C
Continuing Arrangements from NCPA
Retail Contracts
Appendix
D
Metering Specifics
Appendix
E
Letter Agreement RE: Real Time
Scheduling
Appendix
F
NCPA Responsibility to Construct,
or Cause to be Constructed, a Third
230 kV Transmission Line Out of The
Geysers
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INTERCONNECTION AGREEMENT
BETWEEN
PACIFIC GAS AND ELECTRIC COMPANY
NORTHERN CALIFORNIA POWER AGENCY,
CITY OF ALAMEDA, CITY OF BIGGS,
CITY OF GRIDLEY, CITY OF HEALDSBURG,
CITY OF LODI, CITY OF LOMPOC,
CITY OF PALO ALTO, CITY OF ROSEVILLE
CITY OF UKIAH
AND PLUMAS SIERRA ELECTRIC COOPERATIVE
This Agreement, is made as of this day of
1983, by and between PACIFIC GAS AND ELECTRIC COMPANY,
hereinafter referred to as "Pacific", and the NORTHERN
CALIFORNIA POWER AGENCY, hereinafter referred to as "NCPA",
and City of Alameda, City of Biggs, City of Gridley, City of
Healdsburg, City of Lodi, City of Lompoc, City of Palo Alto,
City of Roseville, City of Ukiah and Plumas Sierra Rural
Electric Cooperative, collectively referred to as "NCPA
Member Customers", any or all of which is or are hereinafter
referred to individually 'as "Party" or collectively as
"Parties".
WITNESSETH:
RECITALS
WHEREAS: Pacific, a corporation organized under
California law, is engaged, among other things, in the
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business of generating, transmitting, and distributing
electric capacity and energy in northern and central
California;
WHEREAS: NCPA is a public agency created, for the
primary purpose of generating and transmitting electric
capacity and energy, by a joint powers agreement dated
July 19, 1968, as amended, entered into pursuant to
Chapter 5, Division 7, Title 1 of the California Government
Code commencing with Section 6500 by the Cities of Alameda,
Biggs, Gridley, Healdsburg, Lodi, Lompoc, Palo Alto,
Redding, Roseville, Santa Clara, and Ukiah, and by the
Plumas-Sierra Rural Electric Cooperative, an associate
member of NCPA;
WHEREAS: NCPA Member Customers are all municipal or
non-profit corporations, organized under California law,
which engage in the generation and/or distribution and sale
of electric capacity and energy in their respective service
areas in northern and central California, and are members or
associates of NCPA;
WHEREAS: The Western Area Power Administration of the
United States Department of _Energy, hereinafter referred to
as "Western", and Pacific at present supply either
separately or collectively the Firm Power electrical load
requirements of NCPA Member Customers;
WHEREAS: NCPA has constructed geothermal generating
resources at The Geysers;
WHEREAS: NCPA states that it and NCPA Member Customers
intend to continue NCPA's power supply program by
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constructing additional resources or acquiring, by purchase,
exchange or otherwise, resources to meet all or a
substantial portion of the electric capacity and energy
requirements of NCPA Member Customers;
WHEREAS: NCPA, NCPA Member'Customers and Pacific wish
to establish contractual arrangements for the
interconnection of these resources and for transmission from
them;
WHEREAS: NCPA wishes to purchase and Pacific. is
willing to sell capacity and energy to meet all ora portion
of the remainder of NCPA Member Customers' load requirements
which is not supplied by resources NCPA or NCPA Member
Customers develop or otherwise acquire;
WHEREAS: NCPA states that it intends to enter into
power supply agreements with NCPA Member Customers to supply
capacity and energy;
WHEREAS: NCPA and NCPA Member Customers represent and
warrant that NCPA has been authorized by its Commissioners
and NCPA Member Customers to enter into this Agreement in
substitution for the power supply contracts they may have
with Pacific;
WHEREAS: NCPA Member Customers represent and warrant
that each has been authorized by its respective City Council
or Board of Directors to enter into this Agreement; and
NOW, THEREFORE in consideration of the mutual covenants
herein set forth, the Parties agree as follows:
1 DEFINITIONS - Whenever used in this Agreement,
Appendices and Exhibits hereto, these terms shall have the
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following meanings as applicable. The singular of a term
2 shall include the plural and the plural shall include the
3 singular.
4 1.1 "Capacity Rating" - The gross output an NCPA
5 Project is capable of producing in kilowatts, less station
6 use and less step-up transformation losses to the high
7 voltage bus at the generator site, as. determined in
8 accordance with Section 2.4.
9 1.2 "Capacity Reserve" - Installed or purchased
10 capacity dedicated to be available to NCPA, in amount and
11 quality as provided in Section 3.1.
12 1.3 "CEC" - The California Energy Resources Conserva-
13 tion and Development Commission or its regulatory successor.
14 1.4 "Control Area" - All or part of a party's
15 electrical generation resources, transmission facilities,
16 and distribution facilities, or a combination thereof with
17 those of Third Parties, to which a common automatic
18 generation control scheme is applied.
19 1.5 "Costs" - All capital expenditures, expenses of
20 operation, maintenance, administrative and general, taxes,
21 and depreciation as determined in accordance with the FERC
22 Uniform System' of Accounts as such may be amended or
23 superseded from time to time, and costs of capital. The
24 appropriate components of costs, as defined herein, shall be
25 applied for the particular service or transaction performed.
26 Pacific's cost of capital rate except as it applies to rates
27 in Article 8 and the rates set forth in Appendix A of this
28 Agreement shall be equal to the rate of return on investment
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I base as most recently allowed by the California Public
2 Utilities Commission.
3 1.6* "Committee" - The Engineering and Operating Corn -
4 mittee established pursuant to Section 9.13.
5 1.7 "Delivery Points" - Those Interconnections on
6 Pacific's system, as shown in Exhibit A-4 of Appendix A,
7 together with any changes to such points or addition of
8 other points as made -in accordance with this Agreement and
9 Appendices.
10 1.8 "Demand" - Maximum average power in kilowatts as
11 determined in accordance with Appendix A.
12 1.9 "Effective Date" The date on which this
13 Agreement shall become effective pursuant to Section 9.3.
14 1.10 "Emergency Power" - Electric capacity and
15 associated energy supplied by a Party as described in
16 Sections 4.2 and 5.4.
17 1.11 "FERC" - The Federal Energy Regulatory Commission
18 or its regulatory successor.
19 1.12 "Firm Power" - That electric capacity and
20 associated energy which is intended to be available to a
21 customer at the times, and at the capacity factors specified
22 by the supplier and for which, in order to achieve that
23 degree of availability, adequate capacity and Spinning
24 Reserves and prime -mover energy and sufficient transmission
25 are provided to move such power to a point where it can be
26 utilized consistent with Good Utility Practice.
27 1.13 "Firm Transmission Service" - That transmission
28 service provided in Sections 6.2 except as provided in
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1 Paragraph 6.2.7b.
2 1.14 "Forced Outages" - Any outages of NCPA Units or
3 NCPA Projects, except for Scheduled Maintenance Outages.
4 1.15 "Forecasted Operation Date" - The estimated
5 operation date of an NCPA Unit or NCPA Project established
6 as set forth in Section 7.4.
7 1.16 "Good Utility Practice" - Those practices,
8 methods and equipment, including levels of reserves and pro-
9 visions for contingencies, as modified from time to time,
10 that are at least as good as those commonly used in the
11 Service Area to operate, reliably and safely, electric
12 power facilities to serve a utility's own customers depend-
13 ably and economically, with due regard for the conservation
14 of natural resources and the protection of the environment
15 of the Service Area; provided, that such practices, methods
16 and .equipment are not unreasonably restrictive.
17 1.17 "Inadvertent Energy" - That energy, which is in
18 excess of the NCPA load plus its firm and interruptible
19 energy sales and the energy deviation determined in
20 accordance with Appendix A.
21 1.18 "Initial Operation Date" - The date or dates
22 established pursuant to Section 2.3.
23 1.19 "Interconnection" - The physical connection of
24 the electric facilities of one system and the electric
25 facilities of another system.
26 1.20 "Interruptible Load" - Load that is interruptible
27 by NCPA immediately upon request of Pacific's system
28 dispatcher and which meets the criteria provided in
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Section 7.8.
1.21 "Interruptible Transmission Service" - Freely
curtailable transmission service provided in Section 6.3 and
in part in Paragraph 6.2.7.
1.22 "Maintenance Power" - Electric capacity and
energy supplied to NCPA pursuant to Section 5.7.
1.23 "Management Committee" - A committee comprised of
equal numbers of members from each Party authorized to
settle issues pursuant to Section 9.14.
1.24 "March 1 Forecast" - The submission of forecasts
and planning data which NCPA and Pacific must make to each
other pursuant to Section 7.5 not later than March 1 of each
Year.
1.25 "NCPA Additional Projects" - NCPA's proposed NCPA
Geothermal Project No. 3 consisting of two 55 megawatts
electric generating units located at The Geysers steam
field, the amount of power dedicated to NCPA which is
generated at the proposed hydroelectric generating project
which is the subject of FERC License No. 2409, and other
generating resources mutually agreed to by the Parties, and
moreover, in accordance with the Stanislaus Commitments,
such agreement shall not be unreasonably withheld provided,
that NCPA must be able to dispatch itself, schedule or
contractually control the electrical output of any such
unit, project or resource, including those resources
delivered into the Service Area.
1.26 "NCPA Annual Peak Load" - The maximum coincident
Demand of all NCPA Member Customers measured during a Year
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I at the Delivery Points plus the coincident net output
2 adjusted to the Delivery Point of any generation internal to
3 the electrical systems of NCPA Member Customers.
4 1.27 "NCPA Annual Peak Load Responsibility" - For any
5 Year, the number of megawatts equal to the forecasted NCPA
6 Annual Peak Load plus any forecasted Firm Power sales by
7 NCPA other than to NCPA Member Customers less Interruptible
8 Loads and less that portion of the NCPA Annual Peak Load
9 which it or NCPA Member Customers plan to meet through
10 purchases of Firm Power_
11 1.28 "NCPA Average Spinning Reserve" - The monthly
12 minimum average amount of Spinning Reserve which NCPA must
13 provide at the time of its daily peak loads during any month
14 pursuant to Subsection 3.2.3.
15 1.29 "NCPA Capacity Reserve" - The amount of installed
16 capacity reserve in megawatts which NCPA is responsible for
17 providing each month pursuant to Section 3.1.
18 1.30 "NCPA Continuous Spinning Reserve" - The minimum
19 amount of Spinning Reserve which NCPA must provide at all
29 times pursuant to Subsection 3.2.4.
21 1.31 "NCPA Initial Project" - Those geothermal
22 electric generating facilities located in Sonoma County and
23 known as NCPA Project No. 2 constructed, owned and operated
24 by or for NCPA, consisting of two units, each with a
25 nameplate rating of 55 megawatts, in accordance with the
26 CEC's Final Order, revised, in its Docket No. 79 -AFC -2.
27 1.32 "NCPA Member Customers" - The NCPA members and
28 associates who are or become Parties to this Agreement.
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1.33 "NCPA Projects" - NCPA Initial Project, and NCPA
Additional Projects.
1.34 "NCPA Units" - Any prime movers, electric
generators and associated equipment, of an NCPA Project.
1.35 "Neighboring Distribution System" - A financially
responsible private or public entity which engages, or in
good faith proposes to engage, in the distribution of
electric power at retail and which meets each of the
criteria numbered (1), (2) and (4) in Section 1.36.
1.36 "Neighboring Entity" - A financially responsible
private or public entity or lawful, association thereof
owning, contractually controlling or operating, or in good
faith proposing to own, to contractually control or to
operate facilities for the generation, or transmission at 60
kilovolts or above, of electric power which meets each of
the- following criteria: (1) its existing or proposed
facilities are, or will be, technically feasible of direct
Interconnection with those of Pacific; (2) all or part of
its existing or proposed facilities are, or will be, located
within the Service Area; (3) its primary purpose for owning,
contractually controlling, or operating all generation and
transmission facilities is to sell in the Service Area the
power generated; and (4) it is, or upon commencement of
operations will be, a public utility regulated under
applicable state law or the Federal Power Act, or exempted
from regulation by virtue of the fact that it is a federal,
state, municipal or other public entity.
1.37 "Northwest Energy" - Energy originating in the
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1 Pacific Northwest which is purchased by NCPA or NCPA Member
2 Customers and delivered for the account of NCPA or NCPA
3 Member Customers to Pacific at the Point of Connection for
4 transmission for NCPA under this Agreement.
5 1.38 "Pacific Governing Reserve Percentage" -
6 Pacific's planning reserve percentage for a Year, determined
7 as provided in Subsection 3.1.4.
8 1.39 "Pacific Northwest" - The states of Oregon,
9 Washington, Idaho and Montana, and Canada, west of the
10 Continental Divide.
11 1.40 "Pacific Spinning Reserve Percentage" - Pacific's
12 average annual Spinning Reserve margin for a Year determined
13 as provided in Subsection 3.2.3. :
14 .1.41 "Partial Requirements Power" Firm electric
15 capacity and energy supplied to NCPA by Pacific pursuant to
16 Section 5.2.
17 1.42 "Point of Connection" - The established Point of
18 Receipt on the existing 500 kV transmission lines at or near
19 the Oregon -California border at which Northwest Energy is
20 delivered to Pacific for transmission for NCPA under this
21 Agreement.
22 1.43 "Points of Receipt" - Those points of
23 Interconnection as listed in Appendix A at which Pacific may
24 receive capacity or energy for the account of NCPA. NCPA
25 may identify additional points of Interconnection for Firm
26 Transmission Service with less than the required notice
27 pursuant to Subsection 6.2.3.
28 1.44 "Scheduled Maintenance Outages" - Any scheduled
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outages of NCPA Projects coordinated pursuant to Section
7.3.
1.45 "Service Area" - That area within the exterior
geographic boundaries of the several areas electrically
served at retail, now or in the future, by Pacific, and
those areas in northern and central California adjacent
thereto.
1.46 "Short -Term Firm Power" - Capacity and energy
provided to NCPA by Pacific at Delivery Points and at
Pacific's Interconnection with NCPA Projects during Forced
Outages, or unscheduled outages of transmission facilities or
of a contracted Firm Power supply, which exceed 48 hours
duration.
1.47 "Spinning Reserve" - Available unloaded capacity
resources that are operating, on-line, and synchronized to
Pacific's system and able instantaneously to take load on
demand.
1.48 "Stanislaus Commitments" - That statement of
commitments by Pacific submitted to the United States
Department of Justice by Pacific on April 30, 1976.
1.49 "The Geysers" - The area now designated as The
Geysers Known Geothermal Resources Area (KGRA) by the U.S.
Geological Survey which encompasses portions of Sonoma,
Mendocino, and Lake counties, all located in the State of
California.
1.50 "Third Parties".- Parties other than NCPA, NCPA
Member Customers or Pacific.
1.51 "Transmission Area" - That area within the
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exterior geographic boundaries of the several areas
electrically served at retail now or in the future by
Pacific.
1.52 "Western" - The Western Area Power
Administration.
1.53 "Year" - A calendar year.
2 NCPA PROJECTS
2.1 Construction and Operation. NCPA shall provide,
operate and maintain equipment in NCPA Projects located
within Pacific's Control Area, and make changes in that
equipment as requested by Pacific, in accordance with Good
Utility Practice; provided, that Pacific shall give
reasonable advance notice to NCPA of such requested changes.
All Costs associated with such equipment, operation and
maintenance and changes required by this Section shall be
borne by NCPA. NCPA's obligations under this Section shall
include but not be limited to the following:
2.1.1 NCPA Project controls and alarms shall
contain such communications equipment, telemetering
equipment and remote supervisory controls as required for
interconnected operation with Pacific's system.
2.1.2 Connection to Pacific's transmission
system shall be through adequately sized facilities provided
and installed by NCPA. NCPA shall provide and maintain in
service protective devices for its Interconnection equipment
and associated systems which are capable of coordination
with Pacific's system. NCPA shall have such facilities in
service at the time of start-up of each NCPA Unit and shall
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maintain them so that they are in coordination with
Pacific's system at all times.
2.1.3 To ensure protection for the electrical
facilities of the Parties, NCPA shall be responsible for
carrying out a coordinated program for protection of NCPA
Projects including but not limited to the following:
a. NCPA shall provide and maintain in-
service high speed digital underfrequency protective relays
for each NCPA Unit. Such underfrequency relays shall be set
to operate at the frequency levels and time delays that are
used by Pacific in the service Area as specified in
Paragraph 2 of Appendix B. Pacific may amend that Appendix
from time to time in order that it will be in agreement with
current practice. Any such revised Appendix B shall become
a part of this Agreement, and the Agreement shall be amended
thereby, when a copy of the revised Appendix B is delivered
to NCPA in accordance with Subsection 9.1.1. NCPA Unit
power generation equipment and auxiliary equipment shall be
designed to operate at full load at the frequency levels and
for the time periods specified in the underfrequency
protective relaying schedule provided in Paragraph 2 of
Appendix B as it may be amended.
b. NCPA shall provide, install and
maintain such protection equipment as necessary to protect
each NCPA Unit from power system disturbances. To prevent
the NCPA Units from creating unnecessary system disturbances
NCPA shall install, set and maintain automatic protective
devices on all NCPA Units to provide for separation of such
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units from Pacific's transmission system under emergency or
fault conditions.
c. Transmission line relaying shall be
provided, installed and maintained by NCPA, and shall be
capable of coordination with that portion of Pacific's
protection system affected by the Interconnection.
d. The settings and adjustments of all
protective relays shall be reviewed and changed as necessary
to maintain required performance and coordination with that
portion of Pacific's system affected by the Interconnection.
e. In the event Pacific makes modifi-
cations or additions to its protection equipment which would
affect NCPA's electrical facilities, Pacific shall notify
NCPA of such changes. NCPA at its own cost shall make such
modifications and additions to NCPA Project protection
equipment as are required to remain fully coordinated and
compatible with Pacific.-
2.1.4
acific.
2.1.4 In the event NCPA proposes to make
modifications or additions to its protection equipment which
would affect Pacific's electrical facilities, NCPA shall
notify Pacific of such changes and assume Costs, if any,
pursuant to Subsection 6.6.1.
2.1.5 NCPA shall provide a power system
stabilizer, with excitation equipment, for each NCPA Unit if
Pacific determines this is necessary in order to maintain
stable interconnected system operation.
2.1.6 Good Utility Practice shall govern
performance by the Parties under this Section 2.1. .
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1 2.1.7 If to resolve an urgent situation,
2 Pacific maintains that Good Utility Practice requires NCPA
3 to install, construct, or modify any facilities or equipment
4 on NCPA's system, NCPA shall perform such installation,
5 construction or modification by a completion date reasonably
6 specified by Pacific. NCPA may dispute. the need, and
7 subsequent cost, for' such installation, construction, or
8 modification. Resolution of the dispute in accordance with
9 the procedures of section 9.14 shall determine whether and
10 to what extent Pacific will reimburse NCPA for the Cost of
11 such installation, construction, or modification.
12 2.2 NCPA Projects Located Outside Pacific's Control
13 Area. In the event NCPA proposes acquiring a
14 resource for its own use which is in the Control Area of
15 another utility, NCPA shall notify Pacific that the proposed
16 protection equipment or procedures meets the standards of
17 the Control Area in which the resource is located, provided
18 that if 'the resource is to be interconnected directly with
19 Pacific, Section 2.1 shall govern the requirements for
20 interconnecting such resource..
21 2.3 Initial Operation Date. The Initial Operation
22 Date for each NCPA Unit shall be 0001 hours on the day
23 following the day during which all features and equipment of
24 such NCPA Unit have reached such a degree of completion that
25 they are capable of operating simultaneously to deliver
26 power reliably into Pacific's system, or a system
27 interconnected with Pacific's system, in accordance with
28 Good Utility Practice.
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2.4 Capacity Rating of NCPA Units.
2.4.1 The Capacity Rating of each NCPA Project
shall be determined in accordance with Good Utility Practice
by NCPA with written notice of such rating provided by NCPA
to Pacific; provided, that the Capacity Rating of the
proposed hydroelectric project which is the subject of FERC
License #2409, shall be determined using the dry -year
criteria. A Capacity Rating shall be provided to Pacific by
NCPA as early as practicable prior to the Initial Operation
Date; provided, that such initial Capacity Rating shall not
be greater than the nameplate rating less station use and
transformation losses.
2.4.2 Either NCPA or Pacific may request, when
it reasonably appears that the Capacity Rating of any NCPA
Project may have been incorrectly determined or may have
changed for any reason, that a new Capacity Rating be
determined. A new Capacity Rating will be promptly
established when requested, based upon acceptable testing
methods consistent with Good Utility Practice.
2.4.3 The Capacity Rating of an NCPA Project
shall not exceed the amount of Firm Transmission Service
available to NCPA by contract for power generated by that
project, except to the extent that sufficient dedicated
transmission service is available from entities other than
Pacific.
3 NCPA RESERVES
3.1 NCPA Capacity Reserve.
3.1.1 NCPA shall establish and use its best
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I efforts to maintain the NCPA Capacity Reserve determined
2 pursuant to this Section.
3 3.1.2 NCPA recognizes that as part of its best
4 effort to maintain the NCPA _Capacity Reserve, and as a
5 matter of Good Utility Practice, when NCPA is providing its
g own reserves from NCPA Projects, or purchases from Third
7 Parties, NCPA will plan and endeavor to provide greater than
8 minimum installed reserve capacity.
9 3.1.3 NCPA Capacity Reserve shall be
10 determined in accordance with the following:
11 a. In 1983, 1984, and 1985 NCPA
12 Capacity Reserve shall be at least equal to 0.178, 0.212,
13 and 0.213 respectively, multiplied by NCPA Annual Peak Load
14 Responsibility for that respective Year as forecasted by
15 NCPA in NCPA's initial forecast pursuant to Section 7.5
16 provided by NCPA to Pacific.
17 b. Thereafter NCPA Capacity Reserve
18 responsibility shall be equal to Pacific Governing Reserve
19 Percentage, as determined pursuant to Subsection 3.1.4 and
20 designated by Pacific to NCPA in Pacific's March 1 Forecast
2) submitted in even Years for the second and third following
22 Years, multiplied by the NCPA Annual Peak Load
23 Responsibility in those following Years as submitted by NCPA
24 to Pacific in NCPA's March 1 Forecast submitted in even
25 Years for the second and third following Years.
26) C. The Parties recognize that such
27 notice requirements are dependent upon regulatory procedures
28 and Pacific reserves the right to amend such notice
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requirements to conform to changes in regulatory procedures.
3.1.4 The Pacific Governing Reserve Percentage
for any subject Year shall be equal to the megawatt margin
amount required by Pacific's applicable planning criterion
during Pacific's planning area peak load month divided by
the planning area peak load converted to a percentage. The
applicable planning criterion as shown in Appendix A is that
which requires the highest levels of reserves during
Pacific's planning area annual peak load month.
3.1.5 If the total capacity reserves Pacific
must provide to maintain system reliability equal to that
existing without the Interconnections provided by this
Agreement are increased by reason of this Agreement, then
NCPA shall, at Pacific's request, install or provide
additional Capacity Reserves in the full amount of such
increase.
3.1.6 Pacific may change its reserve planning
criteria or modify the application of existing reserve
planning criteria as it believes is appropriate to maintain
an adequate level of reliability for area planning
consistent with Good Utility Practice. If Pacific exercises
such right it will notify NCPA and, if requested, discuss
such changes or modifications in the Committee before filing
the change.
3.1.7 NCPA may provide its NCPA Capacity _
Reserve required by this Section 3.1 by making available to
the Service Area Capacity Reserve from NCPA Projects or by
purchasing such reserves from Pacific or Third Parties.
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NCPA shall advise Pacific no later than 120 days after the
Parties' March 1 Forecast submitted pursuant to Subsection
3.1.3 for the second and third following Years as to the
manner in which it plans to satisfy its NCPA Capacity
Reserve requirement in the subject Year, including but not
limited to sources and specific amounts of Capacity Reserves
provided from such sources, and the amount of Capacity
Reserves NCPA will purchase from Pacific; provided, that
NCPA shall advise Pacific of the sources of NCPA Capacity
Reserve determined in accordance with Paragraph 3.1.3a
within 30 days of the initial planning data forecast
provided by NCPA to Pacific in accordance with Section 7.5.
Resources provided by NCPA for NCPA Capacity Reserves shall
be equivalent in reliability and availability to the average
of resources within Pacific's Service Area and include
sufficient transmission capacity to deliver such reserves
into the integrated grid.
3.2 NCPA Spinning Reserve.
3.2.1 NCPA shall provide Spinning Reserve in
amounts necessary to meet NCPA Average Spinning Reserve and
NCPA Continuous Spinning Reserve requirements set forth
hereunder.
3.2.2 For the purposes of this Section 3.2:
a. Spinning Reserve shall be expressed
as a percentage of daily peak Demand.
b. NCPA's.daily peak Demand shall be
the daily coincident peak Demand of NCPA Member Customers.
C. NCPA need not provide Spinning-
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Reserve for the Demand portion of its load which it meets
through purchases of Firm Power.
d. NCPA shall provide Spinning Reserve
equal to the full amount of the energy portion of its load
which it meets through purchases of interruptible power
imported from outside the Service Area, provided; that when
Pacific curtails such interruptible power due to system load
conditions NCPA Continuous Spinning Reserve Requirement,
pursuant to this Paragraph 3.2.2(d) shall be reduced by the
amount NCPA is curtailed, provided further; NCPA shall
maintain its minimum Spinning Reserve pursuant to
Subsection 3.2.4.
3.2.3 NCPA shall each month provide,a minimum
average Spinning Reserve in an amount at least equal �to
Pacific Spinning Reserve Percentage for that Year, as the
latter percentage is determined below in this Subsection.
Beginning on the Effective Date of'this Agreement, Pacific
Spinning Reserve Percentage shall be deemed to be nine
percent. This percentage will be reviewed and determined
annually in advance by Pacific and Pacific shall advise NCPA
each Year, in Pacific's March 1 Forecast, of Pacific
Spinning Reserve Percentage for the following Year.
3.2.4 NCPA at all times shall maintain a
Spinning Reserve of not less than seven percent of its daily
coincident peak load. If at any time NCPA Continuous
Spinning Reserve falls below seven percent, NCPA shall take
immediate action to obtain or restore its Spinning Reserve
to the NCPA Continuous Spinning Reserve percentage of seven
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I percent. In the event NCPA takes such action and despite
2 its best efforts is unable to restore its Spinning Reserve
3 to such NCPA Continuous Spinning Reserve percentage within
4 10 minutes, Pacific shall furnish such Spinning Reserve on
5 an as -available basis.
6 3.2.5 Promptly after each month, NCPA shall
7 make and submit to Pacific a reasonable and adequate written
8 demonstration of the amounts of Spinning Reserve provided by
9 NCPA during each day of that month. If NCPA is unable or
10 fails to make and submit such a demonstration, Pacific may
11 make its own demonstration from records and information it
12 has on NCPA's operations. If NCPA has not met NCPA Average
13 Spinning Reserve requirements or NCPA Continuous Spinning
14 Reserve requirements during that month, the Spinning Reserve
15 needed to meet such NCPA requirements shall be deemed
16 provided by Pacific to the extent Pacific had the capacity
17 available. NCPA shall be charged for such Spinning Reserve
18 in accordance with Article 8 and the appropriate rate
19 schedule described in Appendix A.
20 3.2.6 If the total Spinning Reserve Pacific
21 must provide to maintain system reliability equal to that
22 existing without the Interconnections provided by this
23 Agreement is increased by reason of this Agreement, then
24 NCPA shall, at Pacific's request, provide additional
25 Spinning Reserve in the full amount of such increase.
26 4 NCPA POWER SALES TO PACIFIC
27 4.1 Surplus Power Sales from NCPA Projects. NCPA
28 shall inform Pacific of the availability of surplus power
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from NCPA Projects located in Pacific's Service Area,
including but not limited to the quantities of surplus power
and the time that such power will be available. NCPA shall
give Pacific the same opportunity to bid and purchase such
power as other potential purchasers.
4.2 Emergency Power. NCPA shall make Emergency Power
available to Pacific on terms and conditions similar to
those associated with the sale of Emergency Power by Pacific
to NCPA described in Section 5.4 of this Agreement.
5 POWER SALES TO NCPA
5.1 General. Consistent with Good Utility Practice,
Pacific shall sell, and deliver to NCPA, power and services
as requested by NCPA under the terms and conditions of this
Agreement and at rates provided in Appendix A.
5.2 Partial Requirements Power.
5.2.1 Pacific shall provide to NCPA and NCPA
shall purchase from Pacific Partial Requirements Power to
meet any portion of the NCPA Member Customers load
requirements which cannot be met by capacity and energy from
NCPA Projects or purchases from Third Parties; provided,
that the requirements set forth in this Agreement which are
applicable to such service have been satisfied. The amount
of Partial Requirements Power Pacific is required to supply
and NCPA is required to pay for shall be the amount
forecasted by NCPA in its March 1 Forecast submitted in even
Years for the second and third following Years except as
otherwise provided for in Appendix A; provided, that NCPA
may adjust such forecast of Partial Requirements Power no
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I later than October 1 of the Year in -which it submits such
2 forecast. (Example: NCPA's 3/1/84 forecast will obligate
3 it to the Partial Requirements Power level forecasted for
4 Years 1986 and 1987 subject to adjustment no later than
5 10/1/84.) Prior to 1986, Pacific shall provide and NCPA
6 shall pay for Partial Requirements Power in the amounts
7 listed in Exhibit A-1 of Appendix A. The Parties recognize
8 that such notice requirements are dependent upon regulatory
9 procedures and Pacific reserves the right to amend such
10 notice requirements to conform to changes in regulatory
11 procedures.
12 5.2.2 Pacific shall provide Partial Require -
13 ments Power to NCPA in addition to the amount of such power
14 provided pursuant to Subsection 5.2.1 on an as -available
15 basis. NCPA shall be charged for such additional Partial
16 Requirements Power at a rate provided for in Appendix A
17 pursuant to Article 8 of this Agreement.
18 5.2.3 In the event NCPA purchases or otherwise
19 acquires an additional source of capacity and energy, NCPA
20 may decrease the amount of Partial Requirements Power shown
21 in its most recent March 1 Forecast by an amount up to the
22 projected amount of such resource or purchase; provided,
23 that Pacific shall not be obligated or required to make such
24 adjustment on less than 39 months advance notice. If less
25 than 39 months advance notice is given the Parties shall
26 jointly consider such a decrease.
27 5.2.4 In the event the Initial Operation Date
28 of an NCPA Project occurs later than the Forecasted
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Operation Date, Pacific will use best efforts to provide
additional Partial Requirements Power to NCPA on a
month -by -month basis, which shall apply only to sales in
excess of NCPA's then requested Partial Requirements Power,
up to the amount of the forecasted Capacity Rating of the
late resource. In the event Pacific is required to purchase
capacity and energy to meet NCPA's requirements at Costs
higher than provided in filed rate schedules applicable to
NCPA, and informs NCPA of such a requirement, NCPA shall pay
the additional Cost for such capacity and incremental energy
if NCPA agrees to accept such power.
5.2.5 In the event the Initial Operation Date
of an NCPA Project occurs prior to the Forecasted Operation
Date, Pacific at NCPA's request shall offer to purchase
capacity and energy from NCPA's resource pursuant to Section
4.1, if Pacific determines it is able economically and
beneficially to use such capacity and energy within the
Service Area. Unless otherwise agreed, the price for that
capacity and energy shall not exceed Pacific's filed rates
for Partial Requirements Power provided in Appendix A. If
Pacific determines it is not able to use such capacity and
energy, it shall, at NCPA''s request, transmit such power
pursuant to Article 6.
5.2.6 Except as provided in Article 4 and
Article 6, NCPA may resell or otherwise dispose of any
Partial Requirements Power purchased to meet NCPA Member
Customers loads which prove to be surplus to their
requirements.
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5.3 Short -Term Firm Power. Pacific shall provide
Short -Term Firm Power to NCPA upon NCPA's request at rates
listed in Appendix A; provided, that Pacific has capacity
and energy for such transactions available from its own
generating resources or which may be obtained by Pacific
from other sources, but only to the extent that it can do so
without impairing service to Pacific's retail or wholesale
power customers or impairing its ability to fulfill prior
commitments. NCPA shall use due diligence to correct the
condition associated with its need for such Short -Term Firm
Power at the earliest possible time.
5.4 Emergency Power.
5.4.1 Pacific shall provide Emergency Power to
NCPA at Delivery Points and at Pacific's Interconnection
with NCPA Projects during Forced Outages or unscheduled
outages of transmission facilities or of a contracted Firm
Power supply for periods not to exceed 48 hours at rates
provided in Appendix A; provided, that NCPA otherwise has
made a good faith effort to maintain the minimum level of
reserves specified in Article 3; provided further, that no
later than 48 hours after NCPA has requested Emergency Power
to be provided by Pacific, NCPA shall replace such Emergency
Power by purchasing capacity and energy from Third Parties
or purchasing Short -Term Firm Power from Pacific.
5.4.2 The capacity component of such Emergency
Power provided by Pacific to NCPA during such periods shall
be an amount scheduled by NCPA, but shall not be more than
an amount equal to that portion of the Forced Outage or
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1 outage of transmission facilities or loss of contracted Firm
2 Power. supply, adjusted for losses, which is the excess of
3 any capacity available to NCPA from other NCPA Projects,
4 Third Parties or Pacific, as scheduled as Partial
5 Requirements Power by NCPA.
6 5.5 Reserve Capacity. At NCPA's request, Pacific
7 shall offer to sell Capacity Reserve or Spinning Reserve to
8 satisfy NCPA's obligation under this Agreement; provided,
9 that adequate notice is given and such capacity is neither
10 needed to meet Pacific's own system reserve requirement nor
11 contractually committed to others at the time NCPA makes
12 such request; provided further, that NCPA is willing to
13 offer to sell, on reasonable terms and conditions, its own
14 such capacity to Pacific. In the case of Capacity Reserves,
15 NCPA shall notify Pacific in its March 1 Forecast provided
16 in even Years for the second and third following Years in
17 which NCPA wishes to purchase such reserves from Pacific as
18 to the amount of reserves to be purchased; provided, that
19 NCPA may adjust such forecast of Capacity Reserves no later
20 than October 1 of the- Year in Which it submits such
21 forecast. (Example: NCPA's 3/1/84 forecast will obligate
22 it to purchases of Capacity Reserves forecasted for Years
23 1986 and 1987 subject to adjustment no later than 10/1/84.)
24 NCPA shall be obligated to purchase Capacity Reserves in the
25 amount requested; provided, that at the time of
26 notification, Pacific determines that it will have such
27 reserves available for sale. NCPA Capacity Reserves to be
28 provided by Pacific prior to 1986 shall be as listed in
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Appendix A. In the event Pacific purchases capacity and
energy to meet NCPA's requirements at Costs higher than
provided in filed rate schedules applicable to NCPA, and
informs NCPA of such a requirement, NCPA shall pay the
additional Costs for such capacity and energy provided NCPA
.agrees to accept such reserves.
5.6 Power Provided During Curtailments -Due to
Transmission Construction Delays.
At NCPA's request, Pacific shall provide limited
term Firm Power to NCPA on a limited as available basis for
the purpose of replacing NCPA Project generation
curtailments resulting from transmission system limitations
due to construction delays of transmission facilities beyond
the control of the Parties; provided, that the notice
provisions of Subsection 6.2.2 have been met;
provided further, that Pacific shall not be obligated to
provide such power beyond the term of NCPA's. most recent
Partial Requirements Power forecast pursuant to
Subsection 5.2.1. Such power shall be scheduled by NCPA in
accordance with operating procedures being utilized by the
Parties at the time the power is requested. NCPA shall.pay
for such power at a rate -in accordance with Appendix A.
5.7 Maintenance Power. At NCPA's request and if NCPA
coordinates its Scheduled Maintenance Outages with Pacific
in accordance with Section 7.3, Pacific shall sell
Maintenance Power to NCPA, during periods when any NCPA
Project or unit located within the Transmission Area is
unavailable due to a Scheduled Maintenance Outage or
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I scheduled transmission outage. The amount of Maintenance
2 Power provided shall not be greater than the Capacity Rating
3 of the NCPA Projects or units on Scheduled Maintenance
4 Outages. In the event Pacific determines it is necessary to
5 purchase capacity and energy to meet NCPA's forecasted
6 Maintenance Power requirement at the time NCPA coordinates
7 its Scheduled Maintenance Outages pursuant 'to Section 7.3,
8 or supply Maintenance Power for an extension of NCPA's
9 Scheduled Maintenance Outage, at Costs higher than provided
10 in filed rate schedules applicable to NCPA, and informs NCPA
11 of such a requirement and NCPA agrees to accept such power,
12 NCPA shall be required to pay the additional Costs for such
13 capacity and incremental energy.
14 6 TRANSMISSION SERVICE PROVIDED BY PACIFIC TO NCPA
15 6.1 Transmission Service Generally. Pacific shall
16 provide to NCPA Firm Transmission Service and Interruptible
17 Transmission Service on the terms and under the conditions
18 set forth in this Article 6, as follows:
19 a. from NCPA Projects to Pacific's
20 Interconnections with the California State Department of
21 Water Resources, any Neighboring Entity or Neighboring
22 Distribution System including NCPA Member Customers and any
23 electric system engaging in bulk electric power supply
24 outside the Service Area;
25 b. to each NCPA Member Customer from
26 Pacific's Interconnections with the California State
27 Department of Water Resources, any Neighboring Entity
28 including NCPA Member Customers and any electric system
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I engaging in bulk electric power. supply outside the Service
2 Area.
3 6.2 Firm Transmission Service.
4 6.2.1 Pacific shall provide Firm Transmission
5 service to Delivery Points and from Points of Receipt
6 necessary to meet NCPA's initial transmission requirements
7 as listed in Exhibit A-4 of Appendix A. To meet such
8 initial transmission requirements, Pacific may require NCPA
9 pursuant to Subsection 9.12.4 to advance capital to Pacific
10 for construction or reinforcement of facilities listed in
11 Exhibit A-4 of Appendix A.
12 6.2.2 Unless otherwise agreed and except as
13 provided in Subsection 6.2.1, NCPA shall give Pacific no
14 less than 72 months advance written notice of new
15 requirements for or other changes in Firm Transmission
16 Service. This notice shall include the following
17 information:
18 a. Source of power and planned
19 Interconnection facilities, if any.
20 b. Initial date and termination date of
21 transmission service.
22 C. Amount of capacity and amount and rate
23 of energy deliveries to each Interconnection, expected
24 monthly and annual capacity factors and other applicable
25 information deemed necessary by Pacific to determine the
26 availability of the requested transmission service and the
27 conditions under which it can be provided.
28 6.2.3 Pacific shall provide NCPA Firm
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Transmission Service described in this Section 6.2 with less
than 72 months advance notice when the requested service is
available. Pacific shall be the sole judge in determining
the amount of transmission capacity which can be provided
and the period of time that such service will be available.
Pacific shall determine and advise NCPA promptly of the
amount of transmission capacity which can be provided and
the period of time that such service will be available and
any limitations and qualifications concerning such service;
provided, Pacific shall make its determination without
unreasonable discrimination and in accordance with Good
Utility Practice.
6.2.4 If Pacific determines that it is
necessary to study whether it can render any requested Firm
Transmission Service and whether reinforcements or
additional transmission facilities will be required for such
service, it may require NCPA to compensate it for the Costs
of any such study. If NCPA compensates Pacific for such
Costs or if Pacific determines no compensation is required,
Pacific shall within 12 months after receipt of sufficient
information from NCPA provide NCPA with a written notice of
its determination of the extent of its ability to provide
the requested service pursuant to this Section 6.2. The
notice shall specify when and for how long the service can
be made available and any limitations or qualifications
concerning the service. If additions or modifications to
Pacific's facilities are necessary to provide such service
to NCPA, and Pacific will require payment of Costs for such
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additions or modifications from NCPA, a preliminary
assessment of what is required and the amount and timing of
these estimated Costs will be given to NCPA. Thereafter, if
NCPA determines it still requires the requested service, -on
NCPA's request and agreement to pay Pacific for all
additional Costs reasonably necessary to plan for NCPA's
request and all Costs of such work Pacific shall include
such service in its planning and construction programs in
order that such service may be made available to NCPA
pursuant to this Section 6.2.
NCPA shall receive all data reasonably
necessary to analyze results pertaining to NCPA's proposed
requested service except for information proprietary to
Pacific;• provided, that if such studies referred to in this
subsection involve use of information proprietary to
Pacific, Pacific shall notify NCPA prior to NCPA's
authorization of the study and NCPA shall have only the
right to examine the studies for analysis purposes but not
to receive or make copies of them, and shall treat any
proprietary information in them as confidential.
6.2.5 Where transmission capacity will be
increased or additional transmission facilities will be
installed to provide or maintain the requested service, at
its option Pacific may require, in addition to a rate for
transmission service, the payment in the manner provided in
Subsection 9.12.4 by NCPA of Costs associated with the
increased capacity or additional facilities in accordance .
with and in advance of NCPA's respective use of the new
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capacity or facilities. Pacific shall use due diligence to
complete such additional transmission facilities so they
will be available when needed; provided, that nothing herein
shall diminish the rights of any Party under Section 9.8.
Pacific shall not be required to construct transmission
facilities in order to comply with an NCPA request made with
less than 60 months advance notice from the time NCPA-
requests such plans to be included in Pacific's planning and
construction programs.
6.2.6a. The amount of Firm Transmission Service
for which NCPA must pay in any Year (subject Year) except as
provided in Appendix A shall be the amount of its
transmission service requirements specified in NCPA's
March 1 Forecast submitted to Pacific in even Years for the
second and third following subject Years together with any
Firm Transmission Service provided to NCPA by Pacific in
that subject Year in accordance with Subsection 6.2.3;
provided, that NCPA may adjust its specified Firm
Transmission Service requirement no later than October 1 of
the Year in which it submits such requirements.
b. If any decrease by NCPA in its
transmission service requirements reduces or eliminates the
need for installation by Pacific of transmission facilities
necessary to provide such service, where Pacific has at its
own Cost reinforced or constructed to provide Firm
Transmission Service requested by NCPA under this Section
6.2, NCPA shall pay cancellation charges in accordance with
Section 6.8.
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1 5.2.7 The Parties recognize that present
2 transmission facilities extending from The Geysers are not
3 adequate for the transmission of all energy which may be
4 generated by geothermal generating units which are existing,
5 under construction, or planned. Until such time as
6 Pacific's proposed Geysers -Lakeville and-Lakeville-Sobrante
7 230 kV transmission lines can be constructed and put into
8 full operation, Pacific will provide transmission service
9 from The Geysers only as provided by this Subsection 5.2.7.
10 a. Pacific. shall provide NCPA transmission
it service from NCPA's generating resources at The Geysers to
.12 Pacific's Fulton Substation in an amount not exceeding
13 110 Mw less Santa Clara's share when finally determined at
14 the Point of Receipt; provided, that if sufficient
15 transmission capability as determined by Pacific is not
16 available to transmit all energy which can be generated by
17 the geothermal plants which use the same transmission
18 facilities, NCPA shall curtail, at Pacific's request, NCPA's
19 scheduled deliveries from NCPA's generating resources at The
20 Geysers (i) to permit Pacific to transmit energy owned by
21 Pacific and which is generated by Pacific's power plants or
22 by plants from which Pacific is obligated by law to purchase
23 energy or from power plants Pacific is contractually
24 obligated to purchase energy from before the Effective Date
25 as those contracts may be amended; and (ii) as otherwise
26 required to share the remaining transmission capability on a
27 pro -rata basis with other entities.
28 b. In order to facilitate the' use of NCPA's
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I generating resources at The Geysers during the period prior
2 to the completion of the Geysers -Lakeville and
3 Lakeville-Sobrante transmission lines, NCPA shall receive
4 full capacity credit for the power generated by NCPA Initial
5 Project regardless of curtailment; provided, that when
6 Pacific requests that NCPA curtail its Geysers generation,
7 NCPA shall to the extent it requires capacity in addition to
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8 the remaining generation and purchases from Pacific and
9 others to meet its load purchase additional capacity and
10 energy from Pacific not exceeding the amount of the
II curtailment at rates and conditions pursuant to Appendix A.
12 C. NCPA also recognizes the need for
13 additional transmission capacity out of The Geysers after
14 the completion of the Geysers -Lakeville and Lakeville -So -
15 brante transmission lines. NCPA will undertake to construct
16 or cause to be constructed a new 230 kV line from The
17 Geysers to an appropriate 230 kV substation in order to.
18 alleviate transmission shortages which may, by 1987,
19 develop. NCPA will take the responsibility to meet certain
20 progress benchmarks, as shown in Appendix F subject to
21 uncontrollable forces as stated in Section 9.8. If NCPA
22 meets such benchmarks - in accordance with this
23 Paragraph 6.2.7c, Pacific shall transmit generation from
24 NCPA's Geothermal Project Shell. No. 3 and determine
25 capacity credit for such project in the same manner provided
26 for NCPA Initial Project pursuant to Paragraph'6.2.7b;
27 provided, that if such benchmarks are not met transmission
28 from NCPA Geothermal Project No. 3 shall be provided only as
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I Interruptible Transmission Service.
2 6.2.8a. NCPA may elect to participate as a ten
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3 ant -in -common owner in up to 110 MW less Santa Clara's share
4 when finally determined of the Geysers -Lakeville 230 kV
5 transmission line; provided, that NCPA must make this
6 election and so notify Pacific within 90 days after the
7 execution of this Agreement. The Parties shall enter into a
8 separate agreement, in accordance with the principles set
9 forth in Paragraphs b and c below for sharing the use and
10 Costs of the Geysers -Lakeville transmission line.
11 b. Unless otherwise agreed, Pacific shall
12 operate and maintain the Geysers -Lakeville transmission line
13 and NCPA shall pay Pacific for NCPA's share of the operation
14 and maintenance Costs of such lines.
15 C. All taxes or assessments which are
16 ascribable to a Party's ownership interest in such
17 transmission lines shall be the sole responsibility of that
18 Party even if those taxes or assessments are levied against
19 the other Party.
20 6.3 Interruptible Transmission Service.
21 6.3.1 In addition to Firm Transmission Service
22 provided for in Section 6.2 and except as otherwise provided
23 herein, Pacific shall provide Interruptible Transmission
24 Service for NCPA on an as -available, interruptible, basis
25 for energy to or from the points specified in Section 6.1;
26 provided, that the notice and other requirements set forth
27 in this Agreement which are applicable to this service have
28 been satisfied.
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6.3.2 The amount of Interruptible Transmission
Service which Pacific agrees to provide shall be the lesser
of (1) the amount requested by NCPA in its notice provided
pursuant to Subsection 6.3.3, or (2) such other amount
Pacific determines and advises NCPA that is available if
NCPA agrees to accept that amount.
6.3.3 NCPA shall give reasonable advance
notice to Pacific of its Interruptible Transmission Service
requirements. Such notice shall be given orally if agreed
to by Pacific. NCPA shall include with its notice
requesting Interruptible Transmission service the following
information:
a. Source of energy and proposed point of
delivery into the Pacific system.
b. Initial date and termination date of
transmission service.
C. Amount and rate of energy deliveries to
Point. of Receipt including hourly variations and other
applicable information which Pacific deems necessary in
order to determine the availablity of Interruptible
Transmission Service.
6.3.4- Pacific . shall provide non-firm
transmission service on an as -available, interruptible,
basis for Northwest Energy purchased by NCPA or by NCPA
Member Customers, from the Point of Connection to NCPA
Member Customers as follows:
a. Pacific shall in its sole judgment
determine whether necessary transmission capacity is
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available on the Pacific Northwest -Southwest intertie and
elsewhere on its system.
b. Transmission service shall be subject to
automatic interruption or curtailment when Pacific
determines such curtailment to be necessary. Normally,
Pacific will endeavor to give NCPA reasonable advance notice
of any planned curtailment; provided, that. Pacific reserves
the right to interrupt said service without notice. If
Pacific notifies NCPA, pursuant to Paragraph a, that
transmission capacity is available for Northwest Energy, but
then determines, after receiving the request of NCPA and
others requesting transmission for such energy,. that there
is insufficient transmission capacity for both NCPA and
others requesting transmission service for Northwest Energy,
Pacific shall so notify NCPA of the identity of such others,
the total transmission capacity that has been requested, and
the capacity that is available that Pacific may provide.
NCPA shall use its best efforts to agree with such others
upon a method of allocating such available transmission
capacity. If agreement cannot be reached within 60 minutes
after Pacific's notice hereunder, Pacific may allocate such
transmission capacity in any manner it determines, including
a determination not to allocate any transmission capacity to
NCPA, in order to accommodate the requests of the others so
as to be consistent with Good Utility Practice.
C. Pacific shall not be required by this
Agreement to transmit Northwest Energy if'such transmission
would cause any spilling of water past any hydroelectric
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generating facilities within the Service Area or when this
may, in Pacific's sole judgment, interfere with Pacific's
ability to operate its electric system under minimum load
conditions or to perform its then existing contracts or
obligations to purchase electric power from others or where
the transmission is for Northwest Energy purchased by NCPA
at a price equal to or lower than the price Pacific would
have offered or offered to pay for that energy.
d. By 2:00 p.m., or as soon thereafter as
possible, of each day next preceding the day for which
transmission service may be provided by Pacific, Pacific
shall make best efforts to inform NCPA of the transmission
line capacity expected to be available on Pacific.'s system
to transmit Northwest Energy to NCPA Member Customers during
each hour of the following day. NCPA shall, as soon as
possible after receiving such notice, but not later than 30
minutes thereafter, inform Pacific of the amount of
Northwest Energy that each seller will deliver to Pacific at
the Point of Connection during each hour of the following
day and the total of the hourly amounts of such energy to be
transmitted. Pacific may alter such scheduling procedures
including times and dates -from time to time as it deems
appropriate by written notice given to NCPA.
e. Pacific may reduce the amount of
Interruptible Transmission Service to NCPA Member Customers
at any time prior to or during the hour of delivery if
necessary, in Pacific's sole opinion, because of system
conditions, intertie curtailments or outages or changes in
1 intertie conditions.
2 f. The amounts of Northwest Energy
3 scheduled to Pacific at the Oregon -California border by each
4 Northwest seller for NCPA in each hour, as shown on
5 Pacific's final schedule for that day, shall be deemed
6 delivered by each Northwest seller. NCPA shall be solely
7 responsible for payment to each Northwest seller for such
8 amounts.
9 6.3.5 NCPA shall schedule on an hourly basis
.10 energy to be transmitted by Pacific pursuant to this
it Section 6.3.
12 6.3.6 Pacific shall not be required to provide
13 Interruptible Transmission Service for NCPA which is not
14 specified in the notice provided under Subsection 6.3.3 or
15 6.3.4 to the extent the transmission facilities required for
16 such service are committed to be loaded from time to time
17 during the period for which such service is requested.
18 Pacific shall be the sole judge whether or not there is
19 sufficient transmission capacity to provide the
20 Interruptible Transmission Service requested by NCPA.
21 Pacific shall not be required to construct transmission
22 facilities in order to comply_ with NCPA's request for
23 Interruptible Transmission Service.
24 6.3.7 The Interruptible Transmission service
25 shall be subject to interruption when Pacific, in its sole
26 judgment, determines such interruption to be necessary.
27 Normally, Pacific will endeavor to give NCPA reasonable
28 advance notice of any planned interruption; provided, that
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Pacific reserves the right to interrupt said service without
notice when necessary.
6.4 Transmission Service Requirements.
6.4.1 Pacific shall not be required by this
Agreement to provide Firm Transmission Service or
Interruptible Transmission Service if the proposed
transaction would be inconsistent with Good utility Practice
or if the necessary transmission facilities are committed at
the time of the request to be fully loaded during the period
for which service is requested or have been previously
reserved by Pacific for emergency purposes, loop flow, or
other uses consistent with Good Utility Practice; provided,
that with respect to the Pacific Northwest -Southwest
Intertie, Pacific shall not be required by this Agreement to
provide the requested transmission service if it would
impair Pacific's own use of this facility consistent with
the Bonneville Project Act (50 Stat. 731, August 20, 1937),
Pacific Northwest Power Marketing Act (78 Stat.- 756,
August 31, 1964), and the Public Works Appropriation Act,
1965 (78 Stat. 682, August 30, 1964).
6.4.2 Nothing contained within thisAgreement
shall require Pacific (1) to construct additional transmis-
sion facilities if the construction of such facilities is
inconsistent with Good Utility Practice or if such
facilities could be constructed without duplicating any
portion of Pacific's transmission system, (2) to provide
transmission service to a retail customer, or (3) to
construct transmission facilities outside the Transmission
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Area.
6.4.3. Pacific shall not be required by this
Agreement to transmit power for NCPA to any electric system
located outside the Service Area if, subsequent to NCPA
giving reasonable notice, any other Neighboring Entity,
Neighboring Distribution System or Pacific wishes to
purchase such power at an equivalent bid for use within the
Service Area.
6.4.4 Pacific shall not be required by this
Agreement to transmit power from a hydroelectric facility
the ownership of which has been involuntarily transferred
from Pacific. However, it is understood that NCPA does not
forfeit any future rights which it may have with respect to
the transmission of power from such a hydroelectric
facility.
6.4.5 Under transmission. outage- conditions,
Firm Transmission service provided under this Agreement
shall be continued by Pacific, to the extent possible
consistent with Good Utility Practice. In the event that
the full amount of Firm Transmission Service cannot be
maintained as a result of such outage, NCPA shall be
curtailed in proportion to its use of the affected
transmission facilities; provided, that at any time
continuity of service to customers within Pacific's
Transmission Area is being jeopardized, as determined by
Pacific, Pacific may curtail without unreasonable
discrimination the Firm Transmission service being made
available by it to NCPA to the extent necessary to avoid
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such jeopardy.
6.4.6 Pacific shall provide NCPA with Firm
Transmission Service from entities other than as herein
specified to NCPA Member Customers to the extent required
and as provided by law or by the Stanislaus Commitments.
6.5 Transmission Losses. All transmission deliveries
under this Agreement shall be reduced for transmission
losses as described in Appendix A. Pacific may revise
Appendix A, from time to time, as appropriate and shall
prepare and submit to NCPA an analysis supporting such
revisions. Any such revised Appendix A shall become a part
of this Agreement and the Agreement shall be amended
thereby, when a copy of the revision is delivered to NCPA in
accordance with Subsection 9.1.1 and accepted for filing•by
FERC.
6.6 Delivery Conditions.
6.6.1 In the event changes in transmission
delivery voltages, relocation of facilities serving
Interconnections and Delivery Points or other changes in
transmission. facilities are necessary on Pacific's side of
any connection with NCPA or NCPA Member Customers because of
changes on Pacific's transmission system as a result of Good
Utility Practice, these changes shall be made by Pacific at
its expense. Such changes on NCPA's side of the connection
point shall be at-NCPA's expense unless the change is made
for Pacific's benefit and at Pacific's sole discretion or.as
otherwise agreed. Such change made at Pacific's sole
discretion shall be submitted to the Committee to determine
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the respective long-term benefits of such changes. The
Committee shall allocate the Cost of such changes based on
the projected net long-term benefits to each Party. Changes
required on Pacific's side of any connection due to changes
made by NCPA on its side of the connection shall be made at
NCPA's expense.
6.6.2 In the event that NCPA requests Pacific
to make changes in delivery location and voltage other than
changes provided for in Subsection 6.6.1, Pacific shall
endeavor to comply with such requests upon mutually agreed
terms ,and conditions including but not limited to
compensation to Pacific.
6.7 Commencement of Charges for Transmission Service.
Charges to NCPA for services provided in this
Article 6 shall be in accordance with Article 8 and shall
commence as follows:
6.7.1 For Firm Transmission Service from NCPA
Initial Project, on the Effective Date.
6.7.2 For Firm Transmission service other than
from NCPA Initial Project, charges shall commence at 0001
hours on the first day of the month in which service is
first used, unless otherwise agreed: Charges for Firm
Transmission Service commencing on a date other than the
first day of the month shall be prorated to reflect the
number of days' for which transmission service was provided.
6.7.3 For all other transmission service, on
the date the Parties agree such service will begin_
6.8 Cancellation Charges.
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6.8.1 In the event that all or a portion of
the transmission facilities, including, but not limited to,
communication and control facilities, and any facilities
used to provide transmission service to NCPA, reinforced or
constructed by Pacific for the purpose of providing NCPA
with Firm Transmission Service under this Agreement become
idle because of termination of this Agreement by NCPA prior
to December 31, 2012, or because of NCPA's request for
reduction of maximum rates of Firm Transmission Service or
deletion of a Point of Receipt or a Delivery Point for Firm
Transmission Service as provided in Subsection 6.2.6, NCPA
shall pay to Pacific cancellation charges. - Cancellation
charges shall take into account the following items as
appropriate: (i) the undepreciated portion of Costs
incurred by Pacific, other than those Costs which were paid
by NCPA pursuant to Subsection 9.12.4, in the installation
of such transmission facilities or portion thereof which are
not necessary in serving other customers of Pacific,
(ii) the removal Cost less the value of any of such
transmission facilities which are proposed to be removed, if
any facilities are to be removed, and (iii) the actual Cost
of Pacific owning any of the transmission facilities which
Pacific proposes to retain in place, until December 31,
2012, reduced to reflect any revenues Pacific will receive
until that date from other customers using such facilities.
6.8.2 Pacific shall bill NCPA for such
cancellation charges after the effective date of termination
of this Agreement by NCPA or after the effective date of
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1 reduction in maximum rates of Firm Transmission Service or
2 deletion of a Point of Receipt or Delivery Point for Firm
ID
Transmission Service. NCPA shall pay such bills in
accordance with Article 9 notwithstanding any termination,
5 unless otherwise agreed by the Parties.
6 6.8.3 If after payment of the cancellation
7 charges, but not later than December 31, 2012, a portion of
8 those transmission facilities referred to in this Section
9 6.8 is retained in place and later used by Pacific in
10 serving other customers, a just and reasonable adjustment
11 shall be made in the calculation of the applicable
12 cancellation charges and a refund paid by Pacific to NCPA.
13 7 COORDINATED OPERATION
14 7.1 Interconnection.
15 7.1.1 NCPA shall give Pacific adequate advance
16 written notice of any proposed additional Interconnection
17 with Pacific or the electric system of anyone other than
18 Pacific, including, but not limited to, additional Intercon-
19 nections required as a result of new NCPA Member Customers.
20 The advance notice shall provide adequate lead time
21 necessary .to accomplish the Interconnection, including but
22 not limited to, such time as may be necessary for
23 (1) studies and design, (2) review by regulatory agencies,
24 (3) obtaining required approvals, permits and licenses,
25 (4) construction, and (5) establishing any contractual
26 arrangements between the Parties and Third Parties that may
27 be necessary.
28 7.1.2 Upon the giving of such notice, NCPA and
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Pacific will jointly consider and endeavor to agree upon
additional contractual provisions, measures, or equipment,
required by Good Utility Practice as a result of the
proposed additional Interconnection arrangement.
7.1.3 Pacific shall not be required to provide
any services to a new NCPA member or affiliate or to NCPA on
that entity's behalf until this Agreement has been amended
to include the new member or .affiliate as an NCPA Member
Customer and a Party.
7.1.4 Pacific or NCPA may terminate this
Agreement when, in the sole judgment of either Party, the
reliability of its system or service to its customers would
be adversely affected by either Party's additional
Interconnection arrangement and after review and discussion
the Committee cannot agree pursuant to Paragraph 9.13.6a on
the manner for removing such adverse effects.
7.1.5 All Interconnections and Delivery Points
shall be consistent with Good Utility Practice.
7.1.6 All Interconnections with Pacific shall
be at one point with each NCPA Member Customer unless
otherwise provided in Appendix A or otherwise agreed by the
Parties. Such Interconnections shall not be limited to
lower voltages when higher voltages are preferable from the
standpoint of Good Utility Practice and are available from
Pacific.
7.1.7 Facilities or control equipment at
existing and proposed Interconnection and Delivery Points
shall be provided, operated, and maintained in a manner to
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I ensure the safe and reliable operation of the respective
2 Partiessystems and in accordance with Good Utility
3 Practice.
4 7.1.8 The Costs of additional facilities
5 required to provide service at an Interconnection shall be
6 allocated on the basis of the projected economic benefits
7 for each Party from the Interconnection after consideration
8 of the various transactions for which the Interconnection
9' facilities are to be used. The Parties will reach such
10 agreement prior to establishing any such Delivery Point._
11 7.1.9 Pacific and several NCPA Member
12 Customers have in their respective resale contracts certain
13 interconnection arrangements which the Parties wish to
14 continue in effect even though these resale contracts will
15 be terminated. These continuing arrangements are specified
16 in Appendix C.
17 7.2 Operation Schedule and Records
18 7.2.1 Not less than five days before the end
19 of each month NCPA shall provide Pacific an operating
20 schedule for the following month specifying hourly amounts
21 of energy to be generated by NCPA Projects, any firm or
22 non-firm energy or capacity purchases, and any spinning
23 Reserve to be provided by NCPA from inside or outside the
24 Service Area. NCPA shall promptly inform Pacific of.any
25 changes in such schedule before such changes are executed.
26 Any changes in such schedule, coordinated with Pacific and
27 otherwise in accordance with this Agreement and Good Utility
28 Practice, shall be recorded as a revised schedule.
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-7.2.2 NCPA shall provide Pacific such
operation records as requested by Pacific which may be
necessary for the interconnected operation of the Parties'
systems. Such records shall include but not be limited to
daily and hourly generation of NCPA Projects, power
purchases by NCPA other than from Pacific, line loadings,
voltages and reactive power.
7.2.3 It is the intent of the Parties that
after 18 months from the Effective Date, for billing '
purposes NCPA shall receive ,credit for the capacity and
energy. from NCPA Projects and from its power acquisitions
from Third Parties based only upon advance schedules except
as otherwise provided in Appendix A. Such schedules shall
be on an hourly basis except that NCPA may change such
schedules in advance within the hour for resources located
within the area to the extent appropriate as a result of
changes in the load, provided that schedule changes for
resources outside Pacific's Control Area shall be made
consistent with tie line operating procedures. Except as -'so
provided, Pacific sha11 not be required to afford NCPA
billing credit for NCPA power on a retroactively accounted
for basis or otherwise to exchange, bank or shape such power
with or for NCPA. Credit for capacity and energy from NCPA
Projects and from its power acquisitions from Pacific and
from Third Parties prior to 18 months after the Effective
Date, shall be in accordance with Appendix A.
7.2.4 NCPA's operation schedule submitted to
Pacific and revised in accordance with this Section 7.2, and
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NCPA's operation records submitted to Pacific in accordance
with Subsection 7.2.1, shall form the basis of billing
pursuant to Appendix A.
7.2.5 This Agreement does not provide for the
payment or return to NCPA of any Inadvertant Energy
delivered to Pacific except as provided in the Appendices.
7.3 Coordinated Maintenance. NCPA shall coordinate
its Scheduled Maintenance Outages with Pacific on or before
November 1 of each Year for each NCPA Unit for the
subsequent Year. NCPA shall use due diligence to complete
such Scheduled Maintenance Outage on schedule. Such
Scheduled Maintenance Outage may be subsequently rescheduled
upon mutual agreement of the Parties.
7.4 NCPA Project Schedule. NCPA shall notify Pacific
of the start of construction of each NCPA Project and of the
Forecasted Operation Date of the 'project within 60 days
after such start. Not less than 60 days prior to the
initial Operation Date of each NCPA Project or NCPA Unit
thereof except for NCPA's Initial Project and on or before
November 1 of each Year thereafter, NCPA shall furnish
Pacific a monthly schedule of the estimated output from each
NCPA Project for the succeeding Year and shall promptly
advise Pacific of any proposed changes thereto.
7.5 Planning Data. Not more than 30 days after the
Effective Date, and thereafter once each Year not later than
March 1 of each Year, NCPA and Pacific shall exchange
forecasts and other planning information including but not
limited to the following:. (1) loads and resources for the
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current Year and the nine succeeding Years, (2) the amount
of Partial Requirements Power to be supplied by Pacific for
the current Year and for the nine succeeding Years,
specifying the monthly peak capacity requirements and
monthly total energy requirements, (3) Pacific Governing
Reserve Percentage for the current Year and nine succeeding
Years and Pacific Spinning Reserve Percentage for the
following Year, (4) the amounts and sources of NCPA Capacity
Reserve for the current Year and the nine succeeding Years,
the amounts and sources of Spinning Reserve which NCPA will.
provide during the following Year, and how much of each such
reserve will be obtained or purchased from each such source
including but not limited to purchases from Pacific, and
(5) NCPA's requirements for Firm Transmission Service for
the current Year and nine succeeding Years. Nothing in this
Section shall require NCPA . or Pacific to disclose
information which it considers proprietary or where it
believes the disclosure could impair competitive relations
between them. Either Party may meet any portion of the
requirements of this Section by referring to its filings of
public record with regulatory agencies where those filings
contain the necessary information and the other Party has or
is furnished a copy of those filings.
1
7.6 Designation of Each Additional NCPA Project or
NCPA Unit. In addition to exchanging load and resource data
pursuant to Section 7.5, NCPA shall designate in writing to
Pacific each NCPA Additional Project. Such designation
shall be made not later than 60 days after filing the
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2 successor agency of such NCPA Project; provided, that if an
3 NCPA Additional Project does not require approval of the
4 CEC, NCPA shall provide such designation to Pacific within
5 60 days after such NCPA Additional Project can be identified
6 as such.
7 7.7 Reactive Power Requirements and Power Factor
g Correction.
9 7.7.1 NCPA shall, at its expense, provide and
10 maintain proper voltage control equipment on each NCPA
11 Project to supply, under all loading conditions including
12 no-load, the "leading" or "lagging" reactive power as
13 required for its share of the Service Area load and
14 transmission needs. NCPA shall operate such facilities and
15 devices in accordance with Pacific's requests, made in
t6 accordance with Good Utility Practice, at any time, for
i7 reactive support and voltage control; provided, that NCPA
18 Projects shall not be required to operate in a manner
19 substantially different from Pacific's other resources
20 similarly connected to that portion of the Service Area. In
21 order to supply such reactive power, each NCPA Project shall
22 be designed to provide the leading and lagging reactive
23 capability for its portion of Service Area needs and load.
24 7.7.2 NCPA shall provide sufficient, hour by
25 hour, power factor correction to satisfy its share of the
26 requirements of the Service Area. NCPA shall assure and
27 each NCPA Member- Customer hereby agrees that each NCPA
28 Member Customer will maintain its load power factor at a
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level comparable to the power factor level maintained by
Pacific in the same geographic area. NCPA shall assure that
and each NCPA Member Customer hereby agrees to use control
methods comparable to the methods used by Pacific to achieve
this objective. Each Year Pacific shall determine and give
written notice to NCPA of each NCPA Member Customer's power
factor requirement necessary to meet the objective specified
in this Subsection. NCPA shall assure and each NCPA Member
Customer hereby agrees that each NCPA Member Customer shall
install any equipment necessary to meet such requirements
within 270 days of such notice. If any NCPA Member Customer
fails, within 90 days after such written notice by Pacific
to NCPA, to develop an engineering plan to achieve and
maintain such power factor level as required herein,
Pacific or NCPA may, subsequent to 180 days following the
written notice, install, operate, and maintain the necessary
power factor correcting equipment on their respective sides
of the Interconnection. If Pacific installs such equipment,
NCPA shall reimburse Pacific for all Costs necessary for
such power factor correcting equipment. As an alternative
to installing such equipment, Pacific may charge a rate for
such power factor correction pursuant to Appendix A.
7.8 Interruptible Load. Interruptible Load shall be
load interruptible by NCPA immediately upon request of
Pacific's system dispatcher or interruptible by
underfrequency relay, and capable of remaining curtailed on
the same basis as interruptions and curtailments by Pacific
in accordance with rate schedules filed by Pacific with the
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2 Underfrequency relay settings for Interruptible Load shall
3 be set at a mutually agreed upon frequency level higher than
4 that for shedding of firm loads. Interruptible Load shall
5 be identified for planning purposes five years in advance.
6 The total amount of NCPA Interruptible Load shall be
7 reasonable, taking into account the effect on system
8 reliability, appropriate measures for interrupting service,
9 the total load served by NCPA, Spinning Reserve available
IO from NCPA, the amount of Interruptible Loads served in the
11 area system and other relevant factors affecting the
12 operation of the systems of the Parties under this
13 Agreement.
14 8 RATES AND CHARGES
15 8.1 Pacific's Rates. Pacific's rates for services
16 referred to in this Agreement shall be specified in rate
17 schedules attached hereto as Appendix A, as those schedules
18 may be superseded or changed from time to time pursuant to
19 Section 8.2. Such rate schedules shall include rates and
20 charges for:
21 8.1.1 Firm Transmission Service and
22 Interruptible Transmission Service over Pacific's
23 transmission system pursuant to Article 6.
24 8.1.2 Power sales to NCPA which include
25 Partial Requirements Power, Emergency Power, Maintenance
26 Power, Short -Term Firm Power, Curtailment Power, Capacity
27 Reserve and Spinning Reserve provided pursuant to Article 5,
28 and power factor correction provided pursuant to Subsection
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7.7.2.
8.2 Unrestricted Right to File Unilateral
Rate Changes. Except as specified in Appendix A, nothing
contained herein shall be construed as affecting in any way
the right of the party furnishing service under this rate
schedule to unilaterally make application to the Federal
Energy Regulatory- Commission or its regulatory successor,
for a change in rates under Section 205 of the Federal Power
Act and pursuant to the Commission's rules and regulations
promulgated thereunder. For purposes of this Paragraph 8.2,
the term "rates" shall be deemed to include any and all
rates, charges, classifications, rate principles, rate
methodology and other rate matters specified in Appendix A,
or its successor(s), if any. Either party may also
unilaterally apply to the Federal Energy Regulatory
commission for changes in terms and conditions of service or
other matters not addressed or specified in Appendix A under
Section 206 of the Federal Power Act and pursuant to the
commission's rules and regulations promulgated thereunder.
9 GENERAL PROVISIONS
9.1 Notices.
9.1.1 Any notice, demand, information, report
or item otherwise required, authorized or provided for in
this Agreement, other than dispatching and billing, shall be
deemed properly given if delivered in person or sent by
United States Mail, postage prepaid, to the persons
specified below:
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(1) To Pacific:
Vice President, Electric Operations
Pacific Gas and Electric Company
77 Beale Street
San Francisco, California 94106
(2) To NCPA and NCPA Member Customers:
General Manager
Northern California Power Agency
8421 Auburn Blvd., Suite 160
Citrus Heights, California 95610
Either Party may, by written notice to the other Party at
any time, change the designation of the person to be
notified or the address of such person.
9.1.2 The Parties shall respond in a timely
and adequate manner to written requests provided for in this
Agreement.
9.2 Load Shedding.
9.2.1 The Parties recognize that Good Utility
Practice requires automatic load shedding by-underfrequency
relay be provided in the event the Service Area or
interconnected system load requirements exceed power sources
instantaneously availableto meet such requirements. In
consonance with this concept, NCPA shall at its expense
require each NCPA Member Customer to provide, operate and
maintain in service high speed digital underfrequency load
shedding equipment in a manner consistent with that observed
in the Service Area. Each NCPA Member Customer shall meet
this requirement. Such load shedding equipment shall be
designed to operate at levels compatible and coordinated
with Pacific's load shedding system and shall be set for the
amount of load to be shed, with frequency steps and tripping
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times as shown in Appendix B. Appendix B shall be revised
by Pacific, from time to time, so that the loads of NCPA
Member Customers will be reduced by the same percentage, and
at the same frequencies, as Pacific reduces the loads of its
firm customers in the same area to the extent consistent
with Subsection 9.2.2. In the event of revisions made to
Pacific's system, NCPA at its expense shall require NCPA
Member Customers to provide, operate and maintain necessary
equipment and make such setting changes required to remain
fully coordinated with Pacific. Each NCPA Member Customer -
shall meet this requirement.
9.2.2 If at any time, the Service Area load
requirements exceed power sources available to the Service
Area to meet such requirements, thereby requiring either
automatic or manual load shedding, or both, load shedding
shall be such as to maintain as far as practicable, with due
consideration for the requirements of public health and
safety, the relative size of load serviced by each Party in
the same proportion as existed before such load shedding
unless directed otherwise by lawful authority or occasioned
by circumstances beyond Pacific's control.
9.2.3 The Parties shall cooperate to develop
and enforce, as necessary, plans for voluntary and mandatory
load curtailment consistent with those observed in the
Service Area. Such plans will include: (1) cases of sudden
emergency loss of an energy resource of sufficient size or
capacity to require interruption of service to non -interrup-
tible utility customers (e.g., failure of generation, trans-
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mission and/or distribution facilities); or .(2) loss or
reduction of energy supply or production facilities of
sufficient magnitude or for such duration as to cause an
intermittent or continuing reduction in the availability of
service to non -interruptible utility customers (e.g., that -
resulting from reinstitution of the oil embargo, substantial
curtailment of fuel deliveries to Pacific or excessive delay
in constructing and making operational a major generating
plant).
9.3 Agreement Effective Date. This Agreement shall
become effective on the date it is permitted to become
effective as a rate schedule by FERC; provided, that this
Agreement is expressly conditioned upon FERC's acceptance of
it for filing, without change including charges made for
sales or service as set forth in Appendix A, and the terms
and conditions of those sales or services (unless any such
change is agreed upon by the Parties), and shall not become
effective unless so accepted.
9.4 Term. The term of this Agreement shall be 30
years from its Effective Date unless terminated by either
Pacific or NCPA giving the other not less than three years
advance written notice of termination. such termination
shall also automatically terminate any tariffs or rate
schedules which in whole or in part result from or
incorporate this Agreement and no regulatory filings shall
be required to effectuate such termination. After such
termination, all rights to services provided under this
Agreement or any such tariff or rate schedule shall cease.
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The Parties agree that any such termination shall not affect
any rights NCPA may have under the Stanislaus Commitments
and that it is the intent of the Parties that in the event
of such termination, to the extent that such services are
required by the Stanislaus Commitments, and to the extent
they are requested by NCPA, such services will be provided
in accordance with the terms and conditions of said
Stanislaus Commitments. Any right to payment of money for
transactions occurring prior to the termination shall
continue.
9.5 Liability.
9.5.1 Nothing in this Agreement shall be
construed to create any duty to, any standard of care with
reference to, or any liability to any person not a Party.
9.5.2 A Party, its directors, commissioners,
councilmen, officers, agents and employees, shall not be
liable to the other Party for damage to the system of such
other Party caused by an electric disturbance on the first
Party's system, or on the system of another, whether or not
such electric disturbance results from negligence of the
first Party.
9.5.3 a. NCPA shall be fully responsible and
liable to Pacific for payment for all of NCPA's obligations
arising under this Agreement, including but not limited to
the sale of goods and provision of services by Pacific,
-notwithstanding that some or all of these goods and services
are allocated by NCPA for the account of NCPA Member
Customers. As used in this Agreement, the term "goods"
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shall have the same meaning as and be defined by the term
"goods" in the Uniform Commercial Code of the State of
California as of the date of execution of this Agreement.
The term "service" shall mean all of Pacific's obligations
under this Agreement, including but not limited to the
transmission of energy and/or the sale of or provision for
the availability of energy, capacity and reserves. Such
service may be comprised of various classes of capacity and
energy provision, sales and/or transmission services.
"Service" shall include the utilization of facilities owned
or operated by Pacific to effect any of the foregoing sales
or services whether by leasing or other arrangements. As
defined herein, the term "service" is used without regard to
the form of payment .or compensation - for the sales or
services rendered whether by purchase and sale, interchange,
exchange, wheeling charge, facilities charge, rental or
otherwise. Any NCPA Member Customer to whom goods and
services are allocated by NCPA shall be jointly and
severally liable along with NCPA to the full extent of such
allocated goods and services. NCPA shall unconditionally
and fully perform each and every obligation under this
Agreement, including but not limited to liability for
payment to Pacific notwithstanding any failure or refusal by
any NCPA Member Customer to pay NCPA for goods and services
allocated by NCPA to such NCPA Member Customer; provided,
that this shall not restrict any right NCPA may otherwise
have to pledge any of its revenues in order to finance
projects which NCPA may lawfully undertake. In the event of
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any such pledge of NCPA revenues, Pacific's status as a
creditor of NCPA shall not be subordinate to the interest of
any creditor other than pledgees in any such pledge and no
such pledge shall include any of NCPA's revenues obtained
pursuant to Paragraph b of this Subsection.
b. (i) NCPA shall fix charges to and
promptly bill NCPA Member Customers in amounts necessary to
pay in accordance with Subsection 9.12.2 in timely manner
within 30 days 100 percent of the total charges by Pacific
to NCPA for goods and services provided by Pacific under
this Agreement, as needed to discharge NCPA's obligations
under this Agreement, and as needed to establish and
maintain a reasonable reserve for contingencies. NCPA shall
receive and deposit such moneys in trust for payment to
Pacific only. NCPA shall diligently pursue all necessary
collection efforts in the event its charges, including
interest charges, to NCPA Member Customers are not paid in a
timely manner.
(ii) NCPA shall furnish Pacific
copies of its bills to each NCPA Member Customer within
three working days after such bills are presented by NCPA to
NCPA Member Customers.
C. Without prejudice to its claim
against NCPA, Pacific may proceed at its option directly
against each NCPA Member Customer and each NCPA Member
Customer shall be responsible and liable to Pacific for
paying a portion of Pacific's charges to NCPA for all goods
or services provided under this Agreement and for
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2 Agreement as follows:
3 (i) If NCPA fails to pay
4 unconditionally any part of any debt, liability or
5 obligation incurred by NCPA or any NCPA Member Customer
6 under this Agreement within 30 days after receipt of
7 Pacific's bill to NCPA, such nonpayment shall constitute a
8 default by NCPA and such NCPA Member Customer. If any part
9 of such debt, liability or obligation is not so paid, then
10 NCPA shall furnish to Pacific within 5 days after such 30
11 day period an apportionment statement describing
12 (a) the date, and total amount of Pacific's bill to. NCPA;
13 (b) the amount paid on such bill;
14 (c) the total amount in default; and
15 (d) allocation of the total amount in default to each
16 defaulting NCPA Member Customer, which total must equal
17 100 percent of the default.
18 Any failure by NCPA to provide an
19 apportionment statement shall not prevent Pacific from
20 pursuing any remedies provided herein or by law.
21 (ii) In the event of a default by
22 NCPA or any NCPA Member Customer upon any debt, liability or
23 obligation to Pacific, Pacific shall give written notice
24 thereof to NCPA and to each defaulting NCPA Member Customer.
25 Such default by NCPA shall also constitute a default of each
26 NCPA Member Customer for whose account the debt, liability
27 or obligation was incurred.
28 NCPA and each NCPA Member Customer
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hereby waive, and agree not to assert any defense or
objection based upon failure to present any claim which may
be required by the Government Code insofar as the asserted
liability is based upon this Agreement.
d. In the event of default by NCPA or
any NCPA Member Customer, which default is not cured within
15 days after service of notice of default, Pacific may
immediately avail itself of any of the following remedies at
its option:
(i) Pacific may by written notice
to NCPA and such NCPA Member Customer terminate this
Agreement as to such NCPA Member Customer, which termination
shall not impair any claim which has accrued to Pacific
against NCPA or such NCPA Member Customer prior to the
termination, except that Pacific will not terminate this
Agreement under this paragraph so long as the provisions of
Subsections 9.12.2 and 9.12.3 have been fully complied with
by NCPA and each NCPA Member Customer.
(ii) Pacific may discharge .the
default and satisfy NCPA's indebtedness from a security
interest (as that term is used in the Uniform Commercial
Codes of the State of California) to be provided by NCPA
under this Agreement as follows ("NCPA additional
security"):
(a) NCPA shall furnish NCPA
Additional Security before the Effective Date of this
Agreement, for the term of the Agreement, except as provided
in subparagraph (e).
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(b) NCPA's Additional
Security shall consist of one of the following:
- A $25 million performance bond, executed by a
consortium of corporate sureties satisfactory to
Pacific.
A $12.5 million cash pledge. The pledge will be
deposited by NCPA with a mutually satisfactory
independent escrow agent. Pacific and NCPA will agree
upon appropriate investments; provided, that no
investment will have a maturity date of more than 60
days. All interest earned, less costs of administering
the escrow account, will be paid to NCPA. In the event
that Pacific notifies the escrow agent that NCPA or any
NCPA Member Customer has defaulted and that such
default has not been cured as specified by this
Section 9.5, the escrow agent shall liquidate the
investments to the extent necessary to satisfy such
default up to and including the total amount of the
Additional Security.
- A security interest in collateral to consist of a $12.5
million pledge of publicly traded negotiable securities
with a Standard and Poor's A rating and/or United
States Government Securities. The collateral will at
all times be in the possession of Pacific and the
security interest will be governed by Division IX of
the Uniform Commercial Code of the State of California.
(c) NCPA's Additional Secu-
rity must be satisfactory to Pacific in both form and
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substance. The parties may mutually agree to substitute one
form of NCPA Additional Security for another. NCPA
Additional Security shall be furnished at all times during
the term of this Agreement, except as provided in
subparagraph (e).
(d) Pacific shall not
discharge the default or satisfy the debt from NCPA
Additional Security to the extent that and so long as the
provisions of Subsections 9.-12.2 and 9.12.3 have been fully
complied with by NCPA and each NCPA Member Customer.
(e) NCPA and each NCPA Member
Customer hereby waive, and shall not exercise any rights
they might otherwise have .to apply to the FERC pursuant to
Section 206 of the Federal Power Act to seek termination of
this NCPA Additional Security requirement until the
expiration of five years after the Effective Date of this
Agreement. If NCPA then seeks termination of the NCPA
Additional Security requirement, Pacific shall be entitled,
within 30 days of NCPA's filing, to file a request for
further change which will preserve for each party the
balance of benefits established by the Interconnection
Agreement. Pacific shall- be entitled to oppose any
application by NCPA or its Member Customers for termination
of NCPA Additional Security and NCPA shall be entitled to
oppose any application by Pacific for further change.
Neither party shall be barred by the Sierra -Mobile doctrine.
Both parties shall request that the FERC determine in a
single proceeding the justness and reasonableness of the
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2 determination in effect pursuant to the provisions of
3 Section 206 of the Federal Power Act.
4 (f) Pacific may avail itself
5 of any other remedies provided herein or by law with respect
6 to any unsatisfied portion of the debt.
7 (iii) Pacific may bring a civil
8 action in any court of competent jurisdiction against NCPA
9 and/or any NCPA Member Customer in default.
10 e. The obligations of this Subsection
11 9.5.3 are incurred by NCPA and each NCPA Member Customer for
12 the benefit of Pacific as security for payment of amounts
13 due it under this Agreement, and shall commence and continue
14 to exist and be honored by NCPA Member Customers to the same
15 extent that NCPA is obligated under this Agreement.
16 f. Each NCPA Member Customer shall
17 make payments under this Agreement from the Revenues (as
18 defined below) of, and as an operating expense of, its
19 Electric System (as defined below). Such payments shall be
20 made in full notwithstanding the suspension, interruption,
21 interference, reduction or curtailment of any NCPA Project
22 output, or the services contracted for in whole or in part,
23 for any reason whatsoever, except to extent that such
24 suspension, interruption, interference, reduction or
25 curtailment is due solely to Pacific's gross negligence.
26 Such payments are not subject to any reduction, whether by
27 offset or otherwise, and are not conditioned. upon
28 performance by NCPA or by any other Member Customer under
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this Agreement,
or upon performance by
NCPA,
any
NCPA Member
Customer or by
any third party under
any
other
agreement.
Nothing herein shall be construed as prohibiting an NCPA
Member Customer from using any other funds and revenues for
purposes of satisfying any provisions of this Agreement.
"Electric System" means all properties
and assets, real and personal, tangible and intangible, of
an NCPA Member Customer now or hereafter existing, used or
pertaining to the generation, transmission, transformation,
distribution and sale of electric power and energy,
including all additions, extensions, expansions,
improvements and betterments thereto and equippings thereof;
provided, that to the extent an NCPA Member Customer is not
the sole owner of an asset or property, only that Customer's
ownership interest in such asset or property shall be
considered to be part of its Electric System. Further, as
used herein "Revenues" means all income, rents, rates, fees,
charges, and other moneys derived by an NCPA Member Customer
from the ownership or operation of its Electric System,
including, without limiting the generality of the foregoing,
(i) all income, rents, rates, fees, charges, or other moneys
derived from the sale, furnishing, and supplying of the
electric power and energy and other services, facilities,
and commodities sold, furnished, or supplied through the
facilities of the Electric system, (ii) the earnings on and
income derived from the investment of such income, rents,
rates, fees, charges or other moneys to the extent that the
use of such earnings and income is not limited by or
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pursuant to law to the Electric System, and (iii) the
proceeds derived by the NCPA Member Customer directly or
indirectly from the sale, lease or other disposition of a
part of the Electric System as permitted hereby, but the
term "Revenues" shall not include customers' deposits or any
other deposits subject to refund until such deposits have
become the property of the NCPA Member Customer.
g. No NCPA Member Customer shall. be
liable under this Agreement for the debts of any other NCPA
Member Customer, except if and to the extent that any NCPA
Member Customer's financial obligations to NCPA and/or
NCPA's Additional Security furnished under this paragraph
may be construed to provide for such liability.
h. Each NCPA Member Customer covenants
and agrees to establish and collect fees and charges for
electric power furnished through facilities of its Electric
System sufficient to provide Revenues adequate to meet its
obligation under this Agreement and to pay any and all other
amounts payable from or constituting a charge and lien upon
any or all such Revenues. Each NCPA Member Customer
covenants and agrees that it shall, at all times, operate
the properties of its Electric System and the business in
connection therewith in an efficient manner and at
reasonable cost and shall maintain its Electric System in
good repair, working order, and condition.
i. NCPA and each NCPA Member Customer
covenants and agrees that it will do nothing, including, but
not limited to, amending, modifying or otherwise changing,
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or rescinding any agreement to which it is a party if that
would jeopardize or make more difficult to enforce Pacific's
rights against NCPA and NCPA Member Customers for payment of
any debt, liability or obligation to Pacific under this
Agreement.
j. Each NCPA Member Customer covenants
and agrees that it will perform as required of it by this
Agreement and by the Member Agreement and any other
agreement between it and NCPA insofar as any such agreements
affect NCPA's ability promptly to pay Pacific amounts due
under this Agreement or otherwise perform its obligations
under this Agreement.
k. Pacific shall be deemed an express
third party beneficiary of and shall have the right to
initiate and maintain suit to enforce this Agreement and
other contracts between NCPA and NCPA Member Customers to
the extent that the obligations of NCPA Member Customers to
NCPA affecting Pacific's rights under this Agreement are not
performed.
9.6 Indemnification.
9.6.1 Each Party as indemnitor shall hold
harmless and indemnify the. other Parties and the directors,
councilmen, officers, agents and employees of such other
Parties against and from any and all liability for damages
for injuries to persons or damage to property, except. as
provided in Subsection 9.5.2, resulting from or arising outJ
of the engineering, design, construction, maintenance or
operation of or the making of replacements, additions or
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2 indemnity and hold harmless provisions set forth in this
3 paragraph shall apply to injuries or damage arising from the
4 sole negligence or willful misconduct of the indemnitee, or
5 the indemnitee's directors, commissioners, councilmen,
6 officers, employees, agents, or independent contractors who
7 are directly responsible to said indemnitee.
8 9.6.2 Each Party as indemnitor shall hold
9 harmless and indemnify the other Parties and the directors,
10 commissioners, councilmen, officers, agents, employees and
11 independent contractors of such other Parties from all
12 claims by, or liability to, any resale or ultimate consumer
13 of the indemnifying Party, for any loss, injury or damage
t4 occurring within the boundaries of the service Area of the
.15 indemnifying Party resulting from an electric disturbance on
16 such other Party's system, whether or not such electric
17 disturbance results from negligence of such other Party. As
18 used herein, the term "ultimate consumer" means an electric
19 customer to which power is delivered for use and not for
20 resale.
21 9.7 Effect on Other Contracts. This Agreement shall,
22 on its Effective Date, supersede any other transmission or
23 power sale contract between Pacific and NCPA.
24 9.8 Uncontrollable Forces. Except as herein
25 designated, neither Party shall be liable to the other for
26 failure to perform its obligations hereunder, except for the
27 obligation to make payment of money, if such failure is due
28 to strikes, lockouts, labor disturbances, revocations of.
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land rights, riots, war, acts of God, or the public enemy,
unavoidable accidents or other matters beyond reasonable
control of the Party so obligated, whether similar to the
matters herein enumerated or not. Nothing in this Agreement
shall require a Party to settle any strike or labor dispute
or to accept any term or condition of financing arrangements
or regulatory authority approvals which that Party deems
unreasonable or burdensome.
9.9 No Dedication of Facilities. Any undertaking by
one Party to another Party,. under any provision of this
Agreement shall not constitute the dedication of that
Party's system, or any portion thereof, to the other Party
or to the public, nor affect the status of any Party as an
independent electric system. With respect to dedication of
facilities, any service by one Party to another is rendered
strictly as an accommodation.
9.10 Titles. All indexes, titles, subject headings,
section titles and similar items are provided for the
purpose of convenience and are not intended to be inclusive,
definitive, or affect the meaning of the contents of this
Agreement or the scope thereof.
9.11 Regulatory Authority. This Agreement is subject
to the jurisdiction of those regulatory authorities having
jurisdiction over the Parties and this Agreement. Pacific
recognizes its responsibility to file this Agreement with
FERC as a rate schedule in a timely manner, to prosecute
proceedings thereon diligently, and similarly to file
amendments, including revisions to Appendices, as they are
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I made. The Parties hereto shall take all reasonable action
2 necessaryto secure approval by FERC of this Agreement in
3 its entirety and without change; provided, that except as
4 provided in section 9.3 NCPA is not precluded hereby from
5 challenging the charges made for sales or services as set
6 forth in Appendix A.
7 9.12 Billing and Payment.
8 9.12.1 All billing statements and compensation
9 as required by this Agreement, shall reflect the period from
10 0001 hours on the first day of each calendar month until
11 2400 hours on the last day of that calendar month.
12 9.12.2 Payment by any Party for all services
13 and products specified herein. shall be made in accordance
14 with the general terms and conditions of the appropriate
15 rate schedule or applicable portion of this Agreement. Each
16 Party shall pay all bills submitted by the other Party
17 pursuant to this Agreement within 30 days of receipt of such
18 bills unless contested. If a bill is contested, the Party
19 billed will pay the uncontested portion within 30 days of
20 receipt of the bill and shall advise the other Party of the
21 amount and basis for the contested portion. A dispute
22 between an NCPA Member Customer and Pacific, an NCPA Member
23 Customer and a Third Party, an NCPA Member Customer and
24 NCPA, a customer of Pacific and NCPA, a customer of Pacific
25 and a Third Party, and a customer of Pacific and Pacific
26 shall not be a proper basis for contesting a billing. Any
27 contested portion of a bill which is not resolved within 60
28 days shall be paid by the contesting party or deposited in a
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mutually satisfactory escrow company_ The Parties agree
that the payee shall have the right to manage any such
escrow account.
9.12.3 Unless otherwise mutually agreed, any
bills not paid in full or not deposited into an escrow
account pursuant to Subsection 9.12.2. by. the due date will
thereafter be adjusted to bear an interest charge. The
interest charge will be compounded monthly on the unpaid
amount of the bill based upon an interest rate equal to:
(i) the first of the month prime rate of the Bank of America
N.T.and S.A. corresponding to the period of adjustment, or
(ii) the maximum rate permitted by law, whichever is less.
The monthly interest rate will be prorated by days from the
payment due date until the date the payment is received.
9.12.4 NCPA shall pay Pacific the Costs of
constructing or reinforcing facilities, if so required by
Pacific, as follows:
a. At least 60 days prior to the date
on which Pacific will be required to commence payment of any
Costs due to construction or reinforcement of facilities
Pacific shall send NCPA:
i. its estimates of all Costs,
broken down by major activities, which it will incur; and
ii. a schedule indicating the
approximate dates when Pacific expects to pay such Costs for
each major activity included in the estimate.
b. NCPA shall pay each amount
specified in the estimate described in Paragraph 9.12.4a for
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each major activity not less than 30 days before the date on
2 which Pacific expects to pay each such amount.
3 C. Pacific shall provide NCPA a final
4 accounting of the Cost of constructing such reinforcements
5 within a reasonable time after the completion of facilities
6 being constructed or reinforced. As part of such final
7 accounting, Pacific shall adjust the Cost estimate provided
8 in this subsection 9.12.4 as necessary to reflect any
9 difference between the estimated and actual Costs of making �-
10 such reinforcements. Any payment or refund shall be made as
11 soon as practicable in accordance with this Section.
12 d. NCPA shall have the right to review
13 the supporting documents upon which the Costs specified in
14 Paragraph 9.12.4c are determined up to two years after
16 receipt of the final accounting. If NCPA believes there are
16 any errors in the determination of such Costs, NCPA shall
17 pay the full amount of such Costs and NCPA and Pacific shall
18 meet to review the supporting documents and agree on the
19 adjustments that may be appropriate.
20 e. NCPA may elect to specify, in
21 advance of its first payment of the Costs of constructing or
22 reinforcing facilities, the basis on which the payments will
20 be made as to any transaction. The options available to
24 NCPA are: refundable advance, non-refundable advance,
2.5 ownership with leaseback,, or any other method mutually
26 agreed to by the Parties. Specific terms and conditions
27 including ,associated compensation to NCPA for the basis
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any transaction. In the event NCPA elects a basis other
than a non-refundable advance, the Parties recognize that
uncertainties in tax treatment of the payments are such that
undesirable tax consequences to Pacific could occur, and
NCPA therefore will indemnify and hold Pacific harmless for
all tax liability, as determined pursuant to applicable tax
law at time of election, arising as a* result of such
payments as provided in this Section 9.12.
9.13 Engineering and Operating Committee.
9.13.1 NCPA and Pacific shall establish an
"Engineering and Operating Committee." The Committee shall
consist of two representatives designated in writing by each
such Party. Each such Party shall also designate an
alternate who may act instead of a representative at the
option of that Party. Either such Party may at any time
change its representatives or alternate on the Committee and
shall promptly notify the other such Party of any change in
designation. Any representative, by written notice to the
other Party, may authorize his alternate to act temporarily
in his place. Each member of the Committee may invite other
members of his organization or others, as his advisors, to
attend meetings of the Committee. The Committee shall elect
a chairman each Year that shall alternate between the
Parties.
9.13.2 The expenses of the members of the
Committee, their alternates and advisors shall be borne by
the Party they represent. Expenses incurred by the
Committee in addition to those herein above mentioned shall
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be shared in a just and reasonable manner agreed to by the
Parties. The sharing of such expenses shall be agreed to
prior to the time that such. additional expenses are
incurred.
9.13.3 Each Year following Pacific's review of
NCPA's planning forecast submitted pursuant to Section 7.5
or upon the call of either Party, the Committee shall meet
in cooperation with Pacific's transmission planning staff to
discuss the availability of transmission service requested
by NCPA. Such matters shall include but not be limited to
the following:
a. The Committee shall examine
potential alternatives to provide NCPA's requested
transmission service.
b. The Committee shall determine the
necessary studies that need to be performed and the manner
in which the Cost of such studies shall be allocated.
C. In the event studies are required
as a result of an NCPA request for transmission service,
NCPA may elect to make the studies in coordination with
Pacific and the Parties will mutually agree on the
parameters for the studies.
d. For studies conducted by Pacific
for which NCPA provides compensation, Pacific and NCPA will
agree initially on the scope. of such studies, study
parameters, and the compensation required from NCPA.
Pacific agrees to provide NCPA with written monthly progress
reports, unless agreed otherwise. Subsequent changes to the
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study scope will be agreed to by NCPA.
9.13.4 The Committee shall meet when such
studies are completed and based on these studies, agree upon
a plan for providing NCPA's requested Firm Transmission
Service. The criteria for selecting such a plan shall be
Good Utility Practice.
9.13.5 The Committee shall meet upon the call
of either Party.
9.13.6 From time to time, to meet changing
conditions, the Committee shall be responsible for reviewing
and recommending operating procedures, standard practices
and other matters affecting the interconnected operation of
the Parties' respective systems. Such matters shall include
but not be limited to the following:
a. Examine and make recommendations on
future Interconnections in order to- 1) ensure that the
proposed Interconnection will be consistent with Good
Utility Practice, 2) determine necessary additions or
modifications to equipment or operating procedures to ensure
that Pacific's system reliability and service to its
customers will not be adversely affected, and 3) determine
the allocation of Costs associated with the above additions
or modifications.
b. Review and recommend arrangements
for metering, communication, scheduling, and dispatching
which may be necessary for the interconnected operation of
the Parties' respective systems.
C. Establish administrative and
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billing procedures which may be necessary for implementing
various provisions of this Agreement.
9.13.7 The Committee shall have no authority to
modify any of the provisions of this Agreement. All
actions, recommendations and reports shall become effective
when signed, or otherwise approved, by all members of the
Committee. Each Party' s. representatives shall be afforded
ample time to review relevant details prior to finalization
of any action, recommendation. or report and may. request up
to 30 days to review the material to be finalized.
9.14 Settlement of Disputes and Arbitration. The
Parties agree to make best efforts to settle all disputes
between the Parties connected with this Agreement as a
matter of normal business under this Agreement.
Notwithstanding any other provision in this Agreement, the
Parties hereby agree to the following procedure for recourse
in the event any such disputes exclusive of rate matters are
not settled.
9.14.1 All such disputes will be submitted to
the Committee. If all Parties cannot agree, either Party
may refer the dispute to the Management Committee for
settlement. All disputes referred to the Management
Committee shall be settled by the Management Committee as
soon as possible but in no case later than 45 days after
submission of the dispute to the Management Committee,
unless agreed to by both Parties. Before the end of the
required time period, the Parties agree to prepare offers of
settlement for consideration by the Management Committee,
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and in the event that a dispute is not settled within the
required time period, or at any time upon mutual agreement,
the Parties shall submit a final written offer to binding
arbitration.
9.14.2 A single arbitrator with. an acceptable
understanding of the utility industry will be selected by
the American Arbitration Association within 15. days after
the two final offers are available. within 30 days after
selection, unless upon application of the arbitrator an
extension is granted by both Parties, the arbitrator will
accept one of the two offers, and the Parties hereby agree
to be bound by that decision. After the decision by the
arbitrator, both Parties shall immediately take whatever
action is required to comply with the accepted offer.. Any
and all costs associated with the arbitration shall be borne
by -the Party sponsoring the rejected offer.
9.14.3 In the event of a dispute over proper
application. of Good Utility Practice, the Arbitrator shall
determine which Party's final offer more reasonably
represents Good Utility Practice. If the disputed matter
does not clearly involve the application of Good Utility
Practice, the Arbitrator shall determine which Party's final
offer more reasonably applies the standards of this
Agreement or, absent standards, which Party's final offer
was more reasonable. The Arbitrator shall specifically
consider all factors relevant to the reasonableness of the
Parties' final offers, including, but not limited to the
facts known to the party at the time of action complained
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of, the amount of time available in which to act or decide,
the urgency or emergency nature of the act, existing
contractual arrangements and the nature and extent of the
Party's perceived risks to the reliability, and safety of
its electrical system, and other factors relevant under the
circumstances. Nothing contained herein shall permit the
Arbitrator to waive, or change any of the provisions of this
Agreement, including this Section 9.14.
9.15 Appendices. Appendices A through F attached
hereto and as modified from time to time by the Parties are
made an express part of this Agreement.
9.16 Assignment. No assignment of all or any part of
this 'Agreement shall be effective by any Party without the
written consent of the other Parties_
9.17 New NCPA Member Customers. In the event an entity
wishes to become an NCPA Member Customer and NCPA wishes to
extend to that entity services available to NCPA under this
Agreement, NCPA shall so advise Pacific and 'request that
this Agreement be amended to achieve this and to make that
entity a Party. The Parties will thereafter consider any
special terms which may appear appropriate to such an
amendment, and upon mutual agreement with such special terms
Pacific will proceed promptly to make such an amendment and
amend the list of Delivery Points 'in Appendix A to
accommodate such changes in NCPA membership. Agreement to
make any such amendments, if required, to this Agreement
shall not be unreasonably withheld by any Party.
9.18 Non -waiver. Failure to enforce any right or
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obligation by either Party with respect to any matter
arising in connection with this Agreement shall not
constitute a waiver as to that matter or any other matter.
9.19 Execution By Counterpart. This Agreement may be
executed by each Party signing a counterpart. All
counterparts shall be sent to Pacific, in the manner
provided for giving of notices, and the Agreement shall be
deemed executed as of the day Pacific has received all
counterpart copies. Thereupon Pacific will enter that date
on the first page of this Agreement and forward to each
Party a fully conformed copy of the Agreement.
IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed the day and Year first above
written.
NORTHERN CALIFORNIA OWER AGENCY
fattest] By\ --
A IV cT
Gen ral Manager
PACIFIC GAS AND ELECTRIC COMPANY
[attest] By
President
CITY OF ALAMEDA
[attest) By
Authorized Representative
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CITY OF BIGGS
[attest] By
Authorized Representative
CITY OF GRIDLEY
[attest] By
Authorized Representative
[attest]
[attest]
nJ
I I'ht VL
City Clerk
CITY OF HEALDSBURG
By
Authorized Representative
CITY OF LODI
By
Authoseized Representative
CITY OF LOMPOC
[attest] By
Authorized Representative
CITY OF PALO ALTO
[attest] By
Authorized Representative
CITY OF ROSEVILLE
[attest] By
Authorized Representative
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CITY OF UKIAH
[attest) By
Authorized Representative
PLUNIAS SIERRA RURAL ELECTRIC
COOPERATIVE
[attest] By
Authorized Representative
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Part I.
The Parties hereby agree that the services set out below and
described more fully in the attached Interconnection Agreement
shall be provided to NCPA by Pacific at the rates and pursuant
to the terms and conditions specified below. However, the
Parties agree that this Appendix A shall not be deemed to amend,
modify, or define any of the terms or conditions of the
Interconnection Agreement. Should any of the provisions of this
Appendix A be in conflict or inconsistent with the terms or
conditions of the Interconnection Agreement, the terms and
conditions of the Interconnection Agreement shall control.
The rates, rate formulas and rate principles specified in this
Appendix A have been developed through detailed negotiations
between the Parties. In recognition of this effort and its
successful conclusion, the Parties hereby agree that rates, and
rate formulas specified in this Appendix A are not subject to
challenge by either Party. The rate and accounting principles
specified in this Appendix A shall be deemed to underlie the
-1-
various rates specified or established pursuant to this AppendiL -
A. Such rate and accounting principles shall be subject to
challenge prospectively only, as of the effective date of a rate
increase from the rate levels for 1985 specified in this
Appendix A. The Parties agree to make every effort to ensure
acceptance by the FERC of the Interconnection Agreement and this
Appendix A as proposed.
The rate agreement reached by the Parties consists of five
elements. First, the Parties hereby agree on initial rates to be
effective as of the Effective Date of the Interconnection
Agreement for the following new services to be provided by
Pacific to NCPA: Partial Requirements Power Service (Schedule
A); Emergency Power Service (Schedule B), Maintenance Power
-- Service (Schedule C); Short -Term Firm Power Service (Schedule
D); Geysers Curtailment Power Service (Schedule E); Firm
Transmission Service (Schedule G); Interruptible Transmission
Service (Schedule H); and Reserve Service (Schedule I). In
addition, the Parties have agreed that Pacific will make
available to NCPA the following services pursuant to the
appropriate terms and conditions in the Interconnection
Agreement: Curtailment Power Service (Schedule F); Station Use
Service for NCPA Projects (Schedule J); and Power Factor
Correction Service (Schedule R).
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Second, the Parties have agreed on a formula and a mechanism
which will yield an increase in the initial rate level of Rate
Schedules A through I and R to be effective as of January 1,
1984, or such other date as the California Public Utilities
Commission (CPUC) may set for the general increase of Pacific
retail rates pursuant to CPUC Application No. 82 12 48 (1984
test year).
Third, the Parties have agreed to a formula and a mechanism
which will yield a further increase in the rate level of rate
Schedules A through I and R to be effective as of January 1,
1985, or such other date as the CPUC may set for a 1985 revenue
enhancement adjustment to Pacific's retail rates.
Fourth, the Parties have agreed to formulas and mechanisms for
adjusting the rate level of Rate Schedules A through I and R
reflect all retail base rate adjustments authorized by the CPUC
including but not limited to recognition of the Costs associated
with the Diablo Canyon and Helms Creek generating units, as of
the dates that Pacific's retail rates are adjusted by the CPUC
to reflect such Costs, should the CPUC act prior to January 1,
1986.
Fifth, the Parties have agreed to a fuel cost adjustment
mechanism (FCA) to be filed with the FERC.
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Part II.
RATE SCHEDULES - 1983
The Parties hereby agree to the following initial rates for the
services described. It is further understood and agreed that
the following initial rates shall be effective as of the
Effective Date of the Interconnection Agreement and shall remain
in effect,'except as provided in Part V, below, until January 1,
1984 or such other date as the CPUC may set for the general
increase of Pacific's retail rates pursuant to CPUC Application
No. 82 12 48 (1984 test year).
1. Partial Requirements Power Service - Rate Schedule A
Rate Schedule A is applicable to sales by Pacific to NCPA of
Partial Requirements Power to meet any portion of the NCPA
Member Customers' load requirements which cannot be met by
capacity and energy from NCPA Projects or purchases from Third
Parties as described in Section 5.2 of the Interconnection
Agreement. This schedule is also applicable for Partial
Requirements Power service provided to NCPA pursuant to
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Paragraph 5(F) and 5(G) of Exhibit 1 of Appendix E. The initial
rates for this service are:
Customer Charge
to NCPA: $85,250/month
Billing Demand
Charge: $5.955/kW-mo
Energy Charge: First 510 kWh per kW 50.00387/kWh + FCA
Over 510 kWh per kW 110% ($0.00387 + FCA)/kWh
1.1 In the event Pacific is required to purchase capacity
and energy pursuant to Subsection 5.2.4 of the
Interconnection Agreement to meet NCPA's requirements
under this Appendix A at Costs higher than provided in
filed rate schedules applicable to NCPA, and informs
- NCPA of such a requirement, NCPA shall pay the Cost for
such capacity and energy if.NCPA agrees to accept such
power.
1.2 The customer charge is based on customer related Costs
and the fixed Costs associated with NCPA's exclusive
and/or allocated use of Pacific's distribution and
transmission facilities utilized to serve the Delivery
Points for Alameda, Healdsburg, Lodi, Lompoc, and
Ukiah. Any change or addition to these Delivery Points
may result, at Pacific's option, in Pacific's
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application under Section 205 of the Federal Power Act -
for new customer charge to reflect any corresponding
change in facilities.
1.3 Prior to January 1, 1984, the billing Demand shall be
NCPA's adjusted actual Demand as defined in Paragraph
VII.1..1.2 below.
1.4 For application of this Partial Requirements Power
rate, the energy sold in any month is allocated to one
of two energy blocks; the first is the amount of energy
up to and including 510 kWh per kW of billing Demand,
and the second is the energy in excess of 510 kWh per
kW of billing Demand.
1.5 The minimum charge per month for the services provided
by this Partial Requirements Power Rate Schedule shall
be the sum of: the customer charge plus the product of
the billing Demand charge and billing Demand as
determined according to Paragraph VII.1.1 plus the
product of energy charges and the energy amount
supplied by Pacific as determined according to
Subsection VII.1.2 below.
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2. Emer4encv Power Service - Rate ,Schedule B
Rate Schedule B is applicable to sales by Pacific to
NCPA of Emergency Power at Delivery Points and at
Pacific's Interconnection with NCPA Projects during
Forced Outages or unscheduled outages of transmission
facilities or of a contracted Firm Power supply for
periods not to exceed 48 hours as provided in Section
5.4 of the Interconnection Agreement. Emergency Power
is not available for station use at NCPA Projects. The
initial rate for this service is:
Energy Charge: Incremental Fuel Cost
Demand Charge: None
Transmission
Charge If applicable, according to
Subsection II.2.1 below.
2.1 Emergency Power service is available beginning with
each outage for the shorter of the following periods of
time: 1) duration of the outage; or 2) 48 consecutive
hours. The amount of Emergency Power available to NCPA
is limited by Subsection 5.4.2 of the Interconnection
Agreement. NCPA shall only receive Emergency Power
that has been scheduled by NCPA within 10 minutes after
an outage has occurred except as provided in Subsection
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VII.3.3 of this Appendix A. NCPA shall be able to
modify such schedule according to Appendix E.
2.2 The incremental fuel Cost shall equal 110 percent of
Pacific's total expenses per kWh including, if
incurred: 1) the cost of starting up, bringing on line
and operating its most economical thermal generating
unit which is available to the system but is not, at
the time of the NCPA outage, being utilized to meet
Pacific's system load and contractual obligations; or
2) the Cost of energy and capacity purchased by Pacific
to supply NCPA's emergency needs, as determined by
Pacific's system dispatcher.
2.3 A transmission charge associated with Emergency Power
Service, as determined and described below, may be
added to the energy charge to reflect the additional
transmission service provided by Pacific in delivering
Emergency Power to the Delivery Points. The existence
and magnitude --of such transmission charge depends on
the resource for which the Emergency Power is purchased
and the Firm Transmission Service functions for which
NCPA has contracted in connection with each such
resource pursuant to Section 6.2 of the Interconnection
Agreement.
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The rates for transmission service provided in
conjunction with Emergency Power Service shall be as
follows:
a. For resources where area, backbone and generation
tie Firm Transmission Service functions are
contracted for:
Transmission Charge: $0.00000/kWh
b. For resource where area and backbone Firm
Transmission Service functions are contracted
for.
Transmission Charge: $0.00124/kWh
C. For resource where only area Firm Transmission
Service function is contracted for:
Transmission Charge: 50.00258/kWh
d. For resource where no Firm Transmission Service
function is contracted for (such as generation
internal to NCPA Member Customer's load):
Transmission Charge: 50.00482/kWh
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3. Maintenance PowerService - RateSchedule
Rate Schedule C is applicable to sales by Pacific to NCPA of
Maintenance Power provided during periods when the output of any
NCPA Project or NCPA Unit located within the Transmission Area
is unavailable due to a Scheduled Maintenance Outage or
scheduled transmission outage as described in Section 5.7 of the
Interconnection Agreement. The amount of Maintenance Power
provided shall not be greater than the Capacity Rating of the
NCPA projects or NCPA Units on Scheduled Maintenance Outages.
NCPA shall schedule such Maintenance Power in accordance with
Appendix E, except as provided in Subsection VII.3.3. The initial
rate for this service is:
Demand Charge:
Energy Charge:
Transmission
Charge
50.196/kW-day
First 16.8 kWh per kW -day
Over 16.8 kWh per kW -day
50.00387/kWh + FCA
110% ($0.00387 + FCA)/kWh
If applicable, according to Subsection II.3.1
below.
3.1 A transmission charge associated with Maintenance Power
Service, as determined and described below, may be
added to the Demand charge to reflect the additional
transmission service provided by Pacific in delivering
Maintenance Power to the Delivery Points. The
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existence and magnitude of such transmission charge
depends on the resource for which the Maintenance Power
is purchased and the Firm Transmission Service
functions for which NCPA has contracted in connection
with each such resource pursuant to Section 6.2 of the
Interconnection Agreement.
The rates for transmission service provided in
conjunction with Maintenance Power Service shall be as
follows:
a: For resources where area, backbone and generation
tie Firm Transmission Service functions are
contracted for:
Transmission Charge: $0.00000/kW-day
b. For resource where area and backbone Firm
Transmission Service functions are contracted
for:
Transmission Charge: $0.0131/kW-day
C. For resource where only area Firm Transmission
Service function is contracted for:
Transmission Charge: 50.0355/kWh-day
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d. For resource where no Firm Transmission Service
function is contracted for (such as generation
internal to NCPA Member Customer's load):
Transmission Charge: $0.0692/kW-day
3.2 In the event Pacific determines it is necessary to
purchase capacity and energy to meet NCPA's forecasted
Maintenance Power requirement under this Appendix A at
the time NCPA coordinates its Scheduled Maintenance
Outages pursuant to Section 7.3, or supply Maintenance
Power for an extension of NCPA's Scheduled Maintenance
Outage, at Costs higher than provided in filed rate
schedules applicable to NCPA, and informs NCPA of such.
a requirement and NCPA agrees to accept such power,
NCPA shall be required to pay the Costs for such
capacity and energy.
3.3. NCPA shall schedule Maintenance Power in accordance
with Appendix E, except as provided by Subsection
VII.3.3 of this Appendix A.
4. Short -Term Firm Power Service - Rate schedule D
Rate Schedule D is applicable to sales by Pacific to NCPA of
capacity and energy for resale to NCPA Member Customers where
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the need for such capacity and energy is caused by a Forced
Outage of NCPA generation, transmission facilities or a
contracted Firm Power supply and to the extent that such outage
exceeds 48 hours of continuous duration as described in Section
5.3 of the Interconnection Agreement. The initial rates for
this service are:
Demand Charge 50.196/kW-day
Energy Charge 110% ($0.00387 + FCA)/kWh
Transmission Charge: If applicable, according to
Subsection II.4.1 below.
4.1 A transmission charge associated with Short -Term Firm
Power service, as determined and described below, may
be added to the Demand charge to reflect the additional
transmission -service provided by Pacific in delivering
Short -Term Firm Power to the Delivery Points. The
existence and magnitude of such transmission charge
depends on the resource for which the Short -Term Firm
Power is purchased and the Firm Transmission Service
functions for which NCPA has contracted in connection
with each such resource pursuant to Section 6.2 of the
Interconnection Agreement.
The rates for transmission service provided in
conjunction with Short -Term Firm Power Service shall be
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as follows:
a. For resources where area, backbone and generation
tie Firm Transmission Service functions are
contracted for:
Transmission Charge: 50.0000/kw-day
b. For resource where area and backbone Firm
Transmission Service functions are contracted
for:
Transmission Charge: 50.0131/kW-day
C. For resource where only area Firm Transmission
Service function is contracted for:
Transmission Charge: $0.0355/kw-day
d. For resource where no Firm Transmission Service
function is contracted for (such as generation
internal to NCPA Member Customer's load):
Transmission Charge: $0.0592/kW-day
4.2 Pursuant to Section 5.3 of the Interconnection
Agreement, in the event Pacific purchases capacity and
energy to meet NCPA's requirements under this Appendix
A at Costs higher than provided in filed rate schedules
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applicable to NCPA, and informs NCPA of such•a
requirement, NCPA agrees to pay the Costs for such
capacity and energy provided NCPA agrees to accept such
power.
4.3 The amount of Short -Term Firm Power cannot exceed the
amount of the then available capacity and energy
capability lost as a result of the outage, and shall be
available only for the duration of that outage. NCPA
shall schedule such Short -Term Firm Power purchases in
accordance with Appendix E except as provided in
Subsection VII.3.3 of this Appendix A.
5. Geysers Curtailment Power Service - Rate'Schgdule E
Rate Schedule E is applicable to sales by Pacific to NCPA of
additional capacity and energy when Pacific requests that NCPA
curtail its NCPA Initial Project generation due to transmission
shortages on Pacific's Geysers -Fulton transmission line and
shall be available only until completion of the
Geysers -Lakeville and Lakeville-Sobrante transmission lines, as
described in Section 6.2.7 of the Interconnection Agreement.
The amount of Geysers Curtailment Power shall not exceed the
amount of the transmission curtailment. NCPA shall schedule
such Geysers Curtailment Power in accordance with Appendix E
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except as provided by Subsection VII.3.3 of this Appendix A.
The initial rates for this service are:
Demand Charge: $0.196/kW-day
Energy Charge: 110% ($0.00387 + FCA)/kWh
6. Curtailment Power Service - Rate Schedule F
Rate Schedule F is applicable to sales by Pacific to NCPA of
as -available, limited term, firm power for the purpose of
replacing NCPA Project generation curtailments resulting from
transmission limitations beyond the control of the Parties,
as described in Section 5.6 of the Interconnection Agreement.
This service is not currently available and will be made
available upon request but subject to the 72 months advance
written notice provided in Subsection 6.2.2 of the
Interconnection Agreement. Should such notice be given by
NCPA, the Parties agree that Pacific shall file a rate
schedule for this service. Pacific may elect to file such
rate as an initial rate within the meaning of Sections 2.4,
35.1 and 35.12 of the FERC`.s Regulations. NCPA may elect to
challenge such rate and to object to its proposed acceptance
by the FERC as an initial rate schedule. However, in
initiating or pursuing such challenge, NCPA shall strictly
limit its arguments to the circumstances surrounding its or
its members relationship, or
-16-
1"ack thereof, to Pacific prior to the Effective Date of the
Interconnection Agreement. Service to NCPA by Pacific under any
of the rate schedules made effective as of the Effective Date of
the Interconnection Agreement shall not be considered, for
precedential purposes, in determining whether Rate Schedule F
shall be considered an initial rate schedule within the meaning
of the FERC's Regulations. The Parties shall assume that Rate
Schedule F is effective as of the Effective Date of the
Interconnection Agreement for purposes of argument with regard
to Rate Schedule F's status as an initial rate schedule within
the meaning of the FERC's Regulations.
7. Firm Transmission Service - Rate Schedule G
Rate Schedule G is applicable to NCPA's forecasted and
contracted Firm Transmission Service provided by Pacific to
Delivery Points from Points of Receipt as described in Section
6.2 of the Interconnection Agreement. The initial.rates for
this service are:
Generation Tie: $0.399/kW-mo
Backbone $0.682/kW-mo
Area $1.026/kW-mo
7.1 Firm Transmission Service is provided for the
contract amount of Firm Power dedicated to NCPA Member
-17-
Customers from NCPA Projects, purchases from Third
Parties except Western, contract amount for Firm Power
sales to Third Parties, and the amount forecasted with
the Partial Requirements Power from Pacific from the
Points of Receipt to the Delivery Points as shown in
Exhibit A-4 of this Appendix A.
7.2 NCPA will be billed for each of the generation tie,
backbone and area transmission functions for the sum of
the following amounts adjusted for losses to the input
level of the appropriate transmission functions: 1) the
contract amount of Firm Power dedicated to NCPA Member
Customers from NCPA Projects plus 2) the contract
amount of transmission for Firm Power purchases from
Third Parties except Western plus 3) the billing Demand
of NCPA's Partial Requirements Power, plus 4) the
contract amount of transmission for Firm Power sales to
Third Parties as determined in Subsection VII.1.1
below. The loss factor for each transmission function
is shown in Exhibit A-2 of this Appendix A.
8. Interruptible Transmission Service - Rate schedule H
U
Rate Schedule H is applicable to NCPA's forecasted and
contracted Interruptible Transmission Service on an as -available
-18-
interruptible basis, as described in Section 6.3 of the
Interconnection Agreement. The initial rates for this service
are:
System Interconnection: $0.00016/kWh
Backbone $0.00134/kWh
Area $0.00224/kWh
Generation Tie 50.00108/kWh
8.1 Interruptible Transmission Service shall be provided
pursuant to Section 6.3 of the Interconnection
Agreement on a scheduled kWh basis.
8.2 NCPA will be billed for the hourly scheduled amount of
service from Pacific, as adjusted for losses as
provided in Exhibit A-2 of this Appendix A to the input
of the appropriate transmission function.
9. Reserves Service - Rate Schedule --I
Rate Schedule I is applicable to sales by Pacific to NCPA of
contracted for Capacity Reserve and/or Spinning Reserve and any
other Spinning Reserve provided by Pacific for NCPA's generation
resources or energy purchases from Third Parties as described in
Section 3.2 of the Interconnection Agreement. The initial rates
-19-
for these services are:
Capacity Reserve: 54.000/kW-mo
Spinning Reserve: $0.0658/kW-day
9.1 For Capacity Reserve, NCPA will be billed on the
contract amount from Pacific as shown in Exhibit A-1 of
this Appendix A.
9.2 The monthly billing for Spinning Reserve as required
in Section 3.2 of the Interconnection Agreement is
determined as follows:
9.2.1. For the portion of the daily peak Demand of
NCPA Member Customers supplied by NCPA's own
resources within Pacific's Control Area, NCPA
is required to provide or purchase from
Pacific the amount of Spinning Reserve equal
to nine percent of the daily peak provided by
these resources. The monthly billing for this
portion of the Spinning Reserve, if purchased
from Pacific is:
n
A= 0.09 x Cx- Pi
i = 1
-20-
where:
A is the monthly billing in dollars;
C is the Spinning Reserve rate;
n is the number of days in the billing month;
and
Pi is the portion of NCPA's daily peak Demand
responsibility for which NCPA's Spinning
Reserve is purchased from Pacific pursuant to
Section 3.2 of the Interconnection Agreement.
9.2.2. For interruptible power purchased by NCPA
the monthly billing for this portion of the
Spinning Reserve, if purchased from. Pacific
is:
2
B = C x Qi x Fi
24 i=1
where:
-21-
B is the monthly billing in dollars;
C is the Spinning Reserve rate; and
Q1,2 is the amount of interruptible energy
scheduled from within and/or outside the
Service Area respectively for the billing
month.
F1 = 0.09 for interruptible energy purchased
from within the Service Area for that portion
of Spinning Reserves not being provided
pursuant to Paragraph 9.2.1.
F2 = 1.0 for interruptible energy purchased
from outside the Service Area.
10. Station Use Service for NCPA Projects — Rate Schedule J
Rate Schedule J is applicable to sales by Pacific to NCPA for
use at NCPA Projects in the event that such power cannot be
supplied by those facilities. The rate for this service shall
be the S1 rate schedule and applicable tariff on file with the
CPUC, as superseded or amended from time to time. (See Exhibit
A-8 attached hereto). This service shall be made available upon
-22-
request by NCPA once the appropriate contract for such service
has been executed.
11. Power Factor Correction Service - Rate ScheduleK
Rate Schedule R is applicable to Pacific's sale to NCPA of
reactive power for purposes of power factor correction as
described in Section 7.7 of the Interconnection Agreement. This
service will be available pursuant to the terms and conditions
of Section 7.7. Should provision of such service be necessary,
Pacific, at its sole election, may either require NCPA to
reimburse Pacific for all Costs necessary for power factor
correction or may file a rate schedule for this service. Pacific
may elect to file such rates as an initial rate, within the
meaning of Sections 2.4, 35.1 and 35.12 of the FERC's
Regulations. NCPA may elect to challenge such rate and to
object.to its proposed acceptance by the FERC as an initial rate
schedule. However, in initiating or pursuing such challenge,
NCPA shall strictly limit its arguments to the circumstances
surrounding its or its members' relationship, or lack thereof,
to Pacific prior to the Effective Date of the Interconnection
Agreement. Service to NCPA by Pacific under any of the rate
schedules made effective as of the Effective Date of the
Interconnection Agreement shall not be considered for
precedential purposes, in determining whether Rate Schedule R
-23-
shall be considered an initial rate schedule within the meaning
of the FERC's Regulations. The Parties shall assume that Rate
Schedule R is effective as of the Effective Date of the
Interconnection Agreement for purposes of argument with regard
to Rate Schedule R's status as an initial rate schedule within
the meaning of the F£RC's Regulations.
-24-
Part ITT_
RATE SCHEDULES — 1984
Excluding the FCA base fuel cost included in the base energy
components of Rate Schedules A, C, D and E, the -Parties hereby
agree that the level of rates charged under Rate Schedules A
through I and R shall be increased as described below as of
January 1, 1984, or such other date as the CPUC may designate
for the general increase of Pacific's retail base rates pursuant
to Application No. 82 12 48 (1984 test year). The increase in
rate level under Rate Schedules A through I and R contemplated
pursuant to this part of Appendix A shall be derived by
increasing each rate component of Rate Schedules A through I and
R excluding the base fuel cost included in base energy component
by the percentage increase in Existing Retail Base Rate
Revenues, as defined below, authorized by the CPUC for 1984
pursuant to CPUC Application No. 82 12 48 (1984 test period).
Each of the then effective rate components of Rate Schedules A
through I and R shall be adjusted as follows. Existing Retail•
Base Rate Revenues shall be the Base Revenue Amount as specified
-25-
in the then effective Preliminary Statement, Part E, No. 4 of
Pacific's Tariff Schedules on file with the CPUC. As of June 1,
1983, the Base Revenue Amount is $2,195,255,000 as authorized by
the CPUC in Decision No. 82-12-112. Adjusted Retail Base Rate
Revenues shall be the new Base Revenue Amount authorized by the
CPUC. The factor determined by dividing the Adjusted Retail
Base Rate Revenues by the Existing Retail Base Rate Revenues
shall be used to multiply each of the then existing rate
components of Rate Schedules A through I and R to determine the
new rate levels of Rate Schedules A through I and K.
As used in this agreement an "Abbreviated Notice of Rate Change"
shall be deemed to refer to a filing with the FERC made pursuant
to Section 35.13 of the Commission's Regulations under the.
-� Federal Power Act. The undersigned agree that such Abbreviated
Notice of Rate Change shall consist of: a) a filing letter
containing any necessary calculations; b) the underlying CPUC
order or Pacific application to the CPUC upon the adjustment in
question is based; and c) such other limited data as the FERC or
its staff may require. The Parties agree to request that the
FERC waive the requirements of Section 35.13 to the extent that
such requirements are not satisfied by the format described
above.
The rate adjustments provided for pursuant to this Part III
-26-
shall be accomplished by means of an Abbreviated'Notfce of Rate
Change to be filed with the FERC by Pacific. The effective date
for 1984 Rate Schedules A through I and K increases will
coincide with the date the CPUC allows the increase in retail
base rates for 1984 to become effective regardless of any
dispute or requirement for additional data that may arise in
connection with the level of the increase at issue.
NCPA will actively support either no suspension of the effective
date of the increases contemplated under this Part III or, at
most, a one -day suspension. However, should NCPA elect to
request a one -day suspension of this 1984 increase, it is hereby
agreed that the proposed effective date of this increase will be
deemed to be December 31, 1983 or one day prior to the date that
retail base rates are adjusted by the CPUC, if such date should
differ from January 1, 1984.
The Parties hereby agree to actively support any requests for
waiver of Commission Regulations necessary to implement the
increases contemplated under this Part III no later than January
11 1984, or as of the date that retail base rates are adjusted
by the CPUC, if such date should differ from January 1, 1984.
By definition, the revised rates contemplated under this Part
III cannot be specified until the CPUC has issued its order
-27-
establishing Pacific's retail rates for 1984. This CPUC order
is expected on or about December 31, 1983. The filing of the
Abbreviated Notice of Rate Change contemplated under this Part
III will, of necessity, occur after the effective date for the
adjustments under this Part III agreed to by the Parties. The
Parties, therefore, agree that the increase in revenues
contemplated under this Part III may be collected, if necessary,
by Pacific as a separately identified surcharge, retroactively
to the effective date specified in this Part III.
-28-
Part TV.
RATE SCHEDULES - 1985
Excluding the FCA base fuel cost included in the base energy
component of Rate Schedules A, C, D and E, the Parties hereby
agree that the level of rates charged under Rate Schedules A
through I and R shall be increased as described below as of
January 1, 1985, or such other date as the CPUC may designate
for a 1985 revenue enhancement increase of Pacific's retail base
rates pursuant to Application No. 82 12 48 (1984 test year).
The increase in rate level under Rate Schedules A through I and
R contemplated pursuant to this part of Appendix A shall be
derived by increasing each rate component of Rate Schedules A
through I and R by the percentage increase in retail base rate
revenues, established pursuant to Part III and V of this
Appendix A.
Each of the then effective rate components of Rate Schedules A
through I and R shall be adjusted as follows. Existing Retail
Base Rate Revenues shall be the Base Revenue Amount as specified
in the then effective Preliminary Statement, Part E, No. 4 of
-29-
Pacific's Tariff Schedules on file with the CPUC. Adjusted
Retail Base Rate Revenues for 1985 shall be the new Base Revenue
Amount authorized by the CPUC for 1985. The factor, determined
by dividing the Adjusted Retail Base Rate Revenues by the
Existing Retail Base Rate Revenues shall be used to multiply
each of the then existing rate components of Rate Schedules A
through I and R to determine the new rate levels of Fate
Schedules A through I and K.
The rate adjustments provided for pursuant to this Part IV shall
be accomplished by means of an Abbreviated Notice of Rate Change
to be filed with the FERC by Pacific. The effective date for
the 1985 Rate Schedules A through I and K increases will
coincide with the date the CPUC allows the attrition increase in
retail base rates for 1985 to become effective regardless of any
dispute or requirement for additional data that may arise in
connection with the level of the increase at issue.
NCPA will actively support either no suspension of the effective
date of the increases contemplated under this Part IV or, at
most, a one -day suspension. However, should NCPA elect to
request a one -day suspension of.this 1985 increase, it is hereby
agreed that the proposed effective date of this increase will be
deemed to be December 31, 1984 or one day prior to the date that
retail base rates are adjusted by the CPUC, if such date should
-30-
•differ from January 1, 1985.
The Parties hereby agree to actively support any requests for
waiver of Commission Regulations necessary to implement the
increases contemplated under this Part IV no later than January
1, 1985, or as of the date that retail base rates are adjusted
by the CPUC, if such date should differ from January 1, 1985.
By definition, the revised rates contemplated under this Part IV
cannot be specified until the CPUC has issued its order
establishing Pacific's retail rates for 1985. This CPUC order
is expected on or about December 31, 1984. The filing of the
Abbreviated Notice of Rate Change contemplated under this Part
IV will, of necessity, occur after the effective date for the
adjustments under this Part IV agreed to by the Parties. The
Parties, therefore, agree that the increase in revenues
contemplated under this Part IV may be collected, if necessary,
by Pacific as a separately identified surcharge, retroactively
to the effective date specified in this Part IV.
-31-
PartV.
OTHER RATE SCHEDULE ADJUSTMENTS
Excluding the FCA base fuel cost included in the base energy
components of Rate Schedules A, C, D and E, the.Parties hereby
agree that the rates charged under Rate Schedules A through I
and R will change as described below as of the dates that retail
rates are initially adjusted by the CPUC to reflect the
commercial operation of any of the Diablo Canyon and Helms Creek
generation units should such initial adjustment by the CPUC
occur prior to January 1, 1986. It is further agreed that any
subsequent adjustment in retail base rates by the CPUC
attributable to the Diablo Canyon or Helms Creek units will, to
the extent that such subsequent adjustments reflect Costs
incurred prior to January 1, 1986, also be reflected in Rate
Schedules A through I and R rates as of the date of the retail
rate adjustment.
Each of the then effective rate components of Rate Schedules A
through I and R will be adjusted as follows. Existing Retail
Base Rate Revenues shall be the Base Revenue Amount as specified
-32-
in the then effective Preliminary Statement, Part E, No. 4 of
the Pacific's Tariff Schedules on file with the CPUC. As of
June 1, 1983, the Base Revenue Amount is $2,195,255,000 as
authorized by the CPUC in Decision No. 82-12-112. Adjusted
Retail Base Rate Revenues shall be the new Base Revenue Amount
authorized by the CPUC. The factor determined by dividing the
Adjusted Retail Base Rate Revenues by the Existing Retail Base
Rate Revenues shall be used to multiply each of the then
existing rate components of Rate Schedules A through I and R to
determine the new rate levels of Rate Schedules A through I and
R.
If, in conjunction with authorizing the Base Revenue Amount
changes, the CPUC also orders a modification to the Energy Cost.
Adjustment Clause or any other mechanism to allow Pacific to
recover expenses incurred in owning and operating the Diablo
Canyon and/or Helms Creek generation units, the Parties agree to
implement consistent and concurrent modifications'to NCPA's FCA,
base or other rates to preserve the intention of the Parties to
allow rate increases which occur in the CPUC jurisdiction to be
proportionately reflected in the rate levels of Rate Schedules A
through I and R.
Should, prior to January 1, 1986, the CPUC authorize Pacific to
adjust retail base rates to reflect past over or under recovery
-33-
of authorized Diablo Canyon or Helms Creek related Costs, the
Parties agree that the proportionate share of the adjustment for
any such past over or under collection in base rates will be
reflected in the Rate Schedules A through I and R rates until
fully amortized. The Parties agree that any under or over
collection remaining unamortized as of January 1, 1986, will be
amortized for a period beyond January 1, 1986 such that the
total amortization period extends for 12 months from the date
that the amortization commenced unless the Parties agree to a
different amortization period.
If, after December 31, 1985, the CPUC authorizes Pacific to
adjust retail rates to reflect over or under recovery of
authorized costs associated with the Diablo Canyon Nuclear Units
1 and 2 or the Helms'Creek Units 1, 2 and 3 incurred by Pacific
prior to January 1, 1986, the Parties agree that the amount of
over or under collection associated with operations prior to
January 1, 1986, allocated to Rate Schedules A through I and R
will be amortized as a separately identified surcharge to Rate
Schedules A through I and R rates over a twelve-month period
commencing with the effective date of the change in retail rates
unless the Parties agree to a different amortization period.
In addition, the Parties hereby agree to reflect in Rate
Schedules A through I and R the net effect of: 1) any change in
-34-
retail rates authorized by the CPUC to become effective prior to
January 1, 1984 in connection with the Kerckhoff No. 2
Hydroelectric Power Plant; and 2) any other charge in the Base
Revenue Amount as specified in the currently effective
Preliminary Statement, Part E, No. 4 of Pacific's Tariff
Schedules on file with the CPUC as authorized by the CPUC prior
to January 1, 1986.
All of the adjustments contemplated under this section of the
agreement will be accomplished through the filing of Abbreviated
Notices of Rate Change pursuant to Section 35.13 of the FERC's
Regulations under the Federal Power Act.
NCPA will actively support either no suspension of the effective
date of the adjustments contemplated under this Part V or, at
most, a one -day suspension. However, should NCPA elect to
request a one -day suspension of the effective date of any of the
adjustments attributable to either Diablo Canyon, Helms Creek or
other adjustments described above, it is hereby agreed that the
proposed effective date of such adjustment will be deemed to be
one day prior to the date that retail base rates are adjusted by
the CPUC for Diablo Canyon, Helms Creek or other adjustments
described above.
-35-
Part VI.
FUEL COST ADJUSTMENT
The Parties hereby agree that the fuel cost adjustment mechanism
(FCA) which shall be used in'calculating the energy charge for
the Partial Requirements Power (Schedule A), Maintenance Power
(Schedule C), Short -Term Firm Power (Schedule D) and Geysers
Curtailment Power (Schedule E) Schedules shall be the same fuel
cost adjustment provision currently on file with the FERC and
attached hereto as Exhibit A-7, except as provided below.
Since the amounts of energy purchased by NCPA under Rate
Schedules A, C, D and E are being accounted for at the backbone
transmission output, and since the fuel cost adjustment
provision currently on file with the FERC contains the
juridiction loss multiplier reflecting the accounting of the
overall jurisdictional sales at area transmission output, the
Parties hereby agree to multiply the FCA rate determined by the
fuel cost adjustment provision currently on file with the FERC
by 0.9862. The resulting adjusted FCA rate as determined above
shall be the FCA rate applicable to Rate Schedules A, C, D and E.
-36-
Beginning with the first month that Rate Schedules A, C, D and E
base rates are increased to reflect the commercial operation of
Diablo Canyon Unit No. 1, an estimated twelve months of Diablo
Canyon Unit No. 1 generation will be included in the calculation
of the FCA rate for that month, and other fossil fueled
generation and associated fuel costs will be reduced
accordingly. In each succeeding month, one month of recorded
(actual) nuclear generation will be added to the calculation and
one month of estimated nuclear generation will be subtracted
until twelve months of recorded nuclear generation are reflected
in the FCA rates. Corresponding adjustments to the calculation
of the FCA rate will be made to reflect the commercial operation
of Diablo Canyon Unit No. 2.* The record period shall be the
recorded twelve calendar month period, as modified above, ending
at the end of the second month prior to the month in which the
revision rate occurs.
It is agreed that interest on balancing account over or under
collections under the FCA will be computed in the same manner as
the FERC refund rate calculation specified in Title 18
Conservation of Power and Water.Resources, Chapter 1, paragraph
35.19a subparagraph Viii)(A). If the FERC should modify this
section of Title 18, then the interest calculation in this fuel
cost adjustment provision shall be modified accordingly.
-37-
The amount of over or under collection accumulated in the FCA
balancing account will be limited. The limitation will result
in increases in the balancing rate portion of the FCA rate when
the balance in the balancing account exceeds ten percent of the
product of the most recent offset rate and the most recent
twelve months resale kWh sales. If this occurs, the balancing
rate, as calculated in accordance with paragraph 10 of the FCA,
will be increased by 25 percent, and such adjustment will
continue until such time as the balancing account is five
percent or less of the product of the then most recent offset
rate and twelve months resale kWh sales.
The Parties hereby agree that any unamortized balance (either
positive or negative) in the Electric Energy Cost Adjustment
Account which is due to (or owed by) the Cities of Alameda,
Healdsburg, Lodi, Lompoc and Ukiah as of the Effective Date of
this Interconnection Agreement shall be assigned to NCPA.
The undersigned further.agree that any balance in the Electric
Energy Cost adjustment account of the current FCA which exists
at the time a successor FCA becomes effective will be carried
forward and fully amortized pursuant to the terms of the
. successor FCA provision contemplated under this Settlement
Agreement. In addition, the undersigned agree that the
-38-
successor FCA contemplated under this agreement will provide for
the amortization of any balances existing at the time any
further amended or successor FCA provision is made effective.
Finally, it is agreed that the unit costs used in calculating
the FCA offset shall be those available at the time such offset
rate is calculated.
-39-
F�;�
RATE AND ACCOUNTING PRINCIPLES
The Parties hereby expressly agree that the rate and accounting
principles set out below and in Part II above shall remain in
effect until December 31, 1985, except as expressly provided
below.
1. Partial Requirements Dower Service - Rate Schedule A
1.1 Billinct Demand
After December 31, 1983, the billing Demand for which NCPA shall
pay in any month is the greater of a) 94 percent of the contract
Demand for the Year as determined by Paragraph VII.1.1.1 of this
Rate Appendix A -for the months of June through September and 66
percent of such contract Demand for the months of October
through May or b) the adjusted actual Demand as determined by
Paragraph VII.1.1.2 of this Appendix A.
-40-
1.1.1 Contract Demand
The contract Demand for any Year is the maximum monthly amount
of capacity forecasted by NCPA in accordance with Section 5.2 of
the Interconnection Agreement subject to the following
adjustment: If the adjusted actual Demand, minus the amount of
Partial Requirements Power provided pursuant to.Subsection 5.2.4
of the Interconnection Agreement, exceeds the contract Demand by
more than six percent in any billing month, the portion that
exceeds six percent shall be added to the contract Demands which
Mould otherwise be applied for the following 11 months. This
amounts) shall be the new contract Demand(s) for the following
11 months.
1.1.2 Adjusted Actual Demand
Adjusted actual Demand of NCPA for any month shall be.the
maximum half-hourly Demand created by NCPA upon Pacific
determined by the following procedure:
a. The half-hourly metered load of each NCPA member Customer
shall be adjusted for losses between the Delivery Point
and the backbone transmission output as provided in
Exhibit A-2 of this Appendix A.
-41-
b. The adjusted half-hourly loads of each NCPA Member
Customer shall be combined to determine a coincident
NCPA half-hourly load.
C. Each NCPA source of capacity shall be adjusted to the
backbone transmission output in accordance with Exhibit
A-2 of this Appendix A: From the coincident NCPA
half-hourly load 1) the Western allocation scheduled by
NCPA in accordance with Appendix E shall be subtracted;
2) the actual amount of capacity, supplied to NCPA
Member Customers from NCPA Projects except as provided
by Subparagraph VII.1.1.3.b below shall be subtracted;
3) NCPA`s scheduled firm capacity purchases from Third
Parties shall be subtracted; 4) Scheduled Emergency
Power, Maintenance Power, Short -Term Firm Power and
Curtailment Power purchases from Pacific shall be
subtracted; and 5) NCPA's scheduled firm capacity sales
to Third Parties shall be added.
1.1.3 Special Interim Conditions
a. Until January 1, 1984 billing Demand shall be
determined using only adjusted actual Demand; provided
that NCPA shall not receive capacity credit for any
source of Firm Power other than from Pacific, Western
-42-
or NCPA Initial Project.
b. During the 13 months following the Effective
Date, the determination of capacity credit from NCPA
Initial Project dedicated to NCPA Member Customers may
be adjusted by NCPA within 21 days after NCPA receives
the metering information necessary to determine NCPA's
adjusted actual Demand from Pacific. Such adjustment
shall be restricted to reallocation of capacity from.
NCPA Initial Project between NCPA and Santa Clara;
provided, at Pacific's option, that Pacific and Santa
Clara have an executed interconnection agreement which
has been permitted to become effective by FERC;
provided further, that the total amount of capacity
claimed by NCPA and Santa Clara together shall not
exceed in any half-hour period the total metered amount
from the NCPA Initial Project in the corresponding half
hour.
C. During the eighteen months following the Effective
Date, the Western allocation subtracted in accordance
with Paragraph VII.1.1.2 above shall be the capacity
allocated by Western to each individual NCPA Member
Customer in any half hour period.
-43-
1.2 Energy Billing
The amount of energy for Which NCPA shall pay shall be the sum
of the half-hourly amounts of energy scheduled in any month by
NCPA from Pacific in accordance with Appendix E added to the
energy deviation amount determined in Paragraph VII.1.2.3
below.
1.2.1 Actual Energy Delivery
The amount of energy NCPA shall have actually received from
Pacific is the sum of the half-hourly energy amounts supplied by
Pacific during the billing period determined from the following
procedure:
a. The half-hourly metered load of each NCPA Member
Customer shall be adjusted for losses between the
Delivery Points and the backbone transmission output as
provided in Exhibit A-2 of this Appendix A.
b. The adjusted half-hourly loads of each NCPA
Member Customer shall be combined to determine a
coincident NCPA half-hourly load.
C. The energy supplied by Pacific in any half
-44-
hour shall be determined after adjusting each NCPA
source of energy to the backbone transmission output in
accordance with Exhibit A-2 of Appendix A by the
following procedure: From the coincident NCPA
half-hourly load 1) Western's energy allocation to NCPA
scheduled by NCPA in accordance with Appendix E shall
be subtracted; 2) the actual amount of -energy supplied
to NCPA Member Customers from NCPA Projects shall be
subtracted; 3) NCPA's scheduled energy purchases from
Third Parties shall be subtracted; 4) scheduled
Emergency Power, Maintenance Power, Short -Term Firm
Power, and Curtailment Power purchases from Pacific
shall be subtracted; and 5) NCPA energy sales to Third
Parties shall be added.
1.2.2 Energy Deviation
a. Pacific shall establish an energy deviation band, the
magnitude of which shall be determined pursuant to
Appendix E, to account for energy delivered by Pacific
in excess of, or less than the energy scheduled by NCPA
from Pacific.
b. If the energy scheduled by NCPA from Pacific exceeds
the energy delivered by Pacific to NCPA in any half
-45-
hour period, then to the extent that such excess is
within the energy deviation band, it is not
Inadvertent Energy and such deviation shall be
corrected by NCPA pursuant to Paragraph VII.1.2.2d.
If such excess is outside the energy deviation band,
the portion outside the deviation band is
Inadvertent Energy not subject to payment or return
by Pacific; and shall not be credited to•NCPA.
C. If the energy delivered by Pacific to NCPA exceeds
the energy scheduled by NCPA from Pacific in any
half hour period, then to the extent such excess is
within the energy deviation band, such excess shall
not be considered as energy purchased by NCPA from
- Pacific, and such deviation shall be corrected by
NCPA pursuant to Paragraph VII.1.2.2d. If such
excess is outside the energy deviation band, the
portion outside the deviation band is Partial
Requirements Power purchased by NCPA from Pacific.
d. Pursuant to Appendix E, NCPA shall correct any
energy deviation within the band by adjusting its
schedules in the next like load period or as soon
as possible thereafter.
-46-
e. No capacity shall be associated with this energy
deviation band.
1.2.3 Energy Deviation Amount
The energy deviation amount in any half hour period shall be
determined by the following procedure: a) subtract the energy
scheduled by NCPA from Pacific from the actual energy delivery
determined in Paragraph VII.1.2.1, b) from this amount subtract
one-half of the magnitude of the energy deviation band
determined in accordance with Appendix E. If the resultant is a
positive amount, that amount shall be added to the amount
scheduled by NCPA from Pacific in the corresponding half hour
for billing purposes.
1.2.4 Special Interim Conditions
During the 18 months following the Effective Date:
a. The amount of energy credited to NCPA from NCPA
Initial Project shall be the energy associated with the
capacity credit in any.half-hour period from such
project determined pursuant to Subparagraph VII.1.1.3.b
of this Appendix A.
-47-
b. The Western allocation subtracted in accordance with
Subparagraph VII.1.2.1.c above shall be the energy
allocated by Western to each individual NCPA Member
Customer in any half hour period.
C. The energy for which NCPA shall be billed shall be the
Partial Requirements Power energy charge pursuant to
Rate Schedule A multiplied by the actual energy
delivery determined in accordance with Paragraph
VII.1.2.1.
For the 18 months following the Effective Date of this
Agreement, the treatment of energy in excess of NCPA's
coincident load (excess energy) delivered by NCPA shall be as
follows:
a. If in any half-hour period in which NCPA is not
purchasing energy from a Third Party other than
Western, the net energy supplied by Western and the
NCPA Initial Project, adjusted for losses to the
backbone transmission output is greater than the
coincident NCPA metered load plus sales to Third
Parties adjusted for losses to the backbone
-48-
transmission output, the excess energy shall be
considered as Inadvertent Energy delivered into
Pacific's system not subject to return or payment by.
Pacific.
b. If the total energy available to NCPA including Third
Party and Western transactions and adjusted for losses
to the backbone transmission output, in any half-hour
period is greater than the NCPA coincident load
calculated in accordance with Subsection VII.1.2 of
this Rate Schedule A for that same half-hour period,
and if that excess is equal to or less than 10 MW or
the amount of energy purchased from Third Parties
whichever is less, Pacific shall purchase such excess
at NCPA's cost for energy scheduled from Third Parties.
Any excess energy greater than such amount in any half
hour shall be considered Inadvertent Energy delivered
into Pacific's system, not subject to.return or payment
by Pacific.
2. Rate Principles
2.1 Partial Requirements
-49-
2.1.1 ' Demand Charge,
Demand related Costs will be allocated on the basis of contract
Demand ("CD"). The CD will be the highest monthly Demand
forecasted by NCPA in any Year pursuant to Section 5.2. The
twelve monthly kilowatt amounts to be used for allocation will
be one month at 100 percent of CD, three months at 94 percent of
CD and eight months at 66 percent of CD. The monthly kilowatt
amount to be used f or.rate design will be the same as used for
the above allocation adjusted as appropriate for losses. For
rate design purposes the system interconnection transmission
expenses will be included with the billing Demand charge.
2.1.2 Energy Charge
The energy charge shall consist of two rate blocks. The first
block of the Partial Requirements Power energy charge shall be
based upon average system energy Costs (base energy charge plus
FCA). The second block of this energy charge shall be priced at
110 percent of the unit charge used for the first energy block.
2.1.3 Customer Charge
The customer charge shall include customer related Costs and the
fixed Costs associated with NCPA's exclusive and/or allocated
-50-
use of Pacific's facilities (e.g., specific distribution plant,
meter, etc.).
2.2 Firm Transmission Service
Firm Transmission Service will be provided over four
sub -functions of the transmission system; generation tie, system
interconnection, backbone and area as described in Exhibit A-5
of this Appendix A.
Transmission related Costs will be allocated on the basis of the
contract amount of NCPA Firm Power purchases from Third Parties
plus the contractually designated output from NCPA resources
plus the forecasted monthly coincident peak loads of Partial
Requirements Power. The contract amount of NCPA Firm Power
purchases from Third Parties and the contractually designated
output of NCPA resource shall be the highest monthly designated
contract amount for the Year. This designated contract amount
shall be multiplied by twelve for Cost allocation purposes. The
Demands to be used for transmission rate design shall be the sum
of: 1) the Demands used for Partial Requirements Power rate
design plus 2) the contract amount of NCPA Firm Power purchases
from Third Parties plus 3) the contractually designated output
of NCPA resources.
-51-
For Firm Transmission Service associated with sales of Partial•
Requirements Power the billing Demand will be the same as the
Partial Requirements Power billing Demand.
Maintenance Power Demand Charge: The Maintenance Power Demand
charge shall be equal to the Partial Requirements billing Demand
charge divided by 30.42.
Energy Charae: The Maintenance Power energy charge shall
consist of two energy blocks. The first energy block of 16.8
kWh per kW -day will be billed at the same rate as the first
block of the Partial Requirements Power energy charge. All
additional kWh per kW day will be billed at the same rate as the
second energy block of the Partial Requirements Power energy
charge.
2.4 - ,Short -Term Firm Power
The Short -Term Firm Power Demand charge shall be the same as the
Maintenance Power Demand charge. The Short -Term Firm energy
charge shall be equal to the second block of the Partial
Requirements Power energy charge.
-52-
2.5 Emergency Power Service
There shall be no Demand charge for Emergency Power sales. All
Emergency Power energy will be billed at the incremental fuel
Cost pursuant to Rate Schedule B of this Appendix A.
2.6 22591rve
The Capacity Reserve charge shall be determined by multiplying
the Partial Requirements Power billing Demand charge (excluding
the system interconnection transmission component and the
component due to the base energy charge shifted as agreed by
both Parties in designing the 1983 rate) by I1 - capacity
reserve percentage for the Year.as listed in Section 3.1.3 of
the Interconnection Agreement or Exhibit A-1 of this Appendix
AJ .
3. Billing Procedure for Rate Schedules A through G
3.1 NCPA shall provide Pacific with the following
information within five working days after the last day
of the billing month and a record of all communications
between NCPA and Pacific dispatchers, either voice or
electronic, as requested for resolution of disputes:
-53-
3.1.1. monthly reports of actual schedules of all
transactions;
3.1.2. monthly reports of all data necessary to calculate
payments;
3.1.3. monthly reports of like hour energy deviation
scheduling pursuant to Rate Schedule A; and
3.1.4 report on residual energy deviations which NCPA
was unable to reschedule in like load periods during
that billing month.
3.2 Pacific shall use the information above, subject to
meter verification, to calculate the bills for Partial
Requirements Power, Spinning Reserves, Maintenance
Power, Short -Term Firm Power, Geysers Curtailment
Power, Curtailment Power, Firm Transmission Service,
Interruptible Transmission Service and Emergency
Power.
Pacific shall determine such amounts and bill NCPA
within 14 days after Pacific receives the information
contained above from NCPA.
-54-
3.3 ,Special Interim Conditions
During the 18 months following the Effective Date of this
Interconnection Agreement, the following procedure shall be used
for billing purposes:
3.3.1 Within 7 days after the last day of the month, Pacific
shall send NCPA the monthly metering information from
the Delivery Points of NCPA Member Customers and from
NCPA Initial Project, and a partial billing which shall
include billing for Capacity Reserves, Firm
Transmission Service (after January 1, 1984), and
Interruptible Transmission Service.
3.3.2 From this metering information, NCPA shall determine
the amount of Partial Requirements Power, Maintenance
Power, Emergency Power, Short -Term Power, Geysers
Curtailment Power, Spinning Reserves, Firm Transmission
Service (prior to January 1, 1984) and any additional
Firm Transmission Service associated with additional
purchases of Partial Requirements Power in excess of
Contract demand, purchased from Pacific. NCPA may use
its contracted Partial Requirements Power to the e::tent
such power is available or provide its Maintenance
Power, Emergency Power, Short -Term Firm Power, and
-55-
Geysers Curtailment Power subject to meter verification
by Pacific.
3.3.3 Within 21 days after NCPA receives the metering
information from Pacific, NCPA shall make its
determination pursuant to Subsection VII 3.3.2 above
and make payment to Pacific for all services provided
under this Interconnection Agreement.
-56-
Rart VI.IT-
The -provisions of this Appendix A are subject in every
particular to the conditions set forth herein, including
acceptance of both the Interconnection Agreement and this
Appendix A in their entirety and without change or condition
unsatisfactory to any Party by FERC, and also with the
understanding that each term of this Appendix A is in
consideration and support of every other term, and of the
Interconnection Agreement itself. Should FERC modify any
provision of the Interconnection Agreement or this Appendix A in
a manner unsatisfactory to any Party, neither Appendix A nor the
Interconnection Agreement shall become effective. This Appendix
A is submitted on the condition that, in the event the FERC does
not by order accept it and the Interconnection Agreement in
their entirety, this Appendix A and the Interconnection
Agreement shall be deemed withdrawn and shall not constitute any
part of the record in any FERC proceeding or be used for any
other purposes, whether between.the Parties or between any Party
and Third Parties. However, in the event that the FERC action
with respect to Appendix A results in the withdrawal of these
agreements, Pacific shall refile the Interconnection Agreement
-57-
and all necessary rates within 53 days of that FERC action, and
may elect to file such rates as Initial Rates within the meaning
of Sections 2.4, 35.1 and 35.12 of the FERC's Regulations. NCPA
shall thereafter be free to challenge such rates and object to
their proposed acceptance by the FERC as Initial Rates within
the meaning of Sections 2.4, 35.1 and 35.12 of the Commission's
Regulations without restriction by this Agreement or any other.
It is hereby agreed by the Parties that no Party shall initiate
or pursue any action, whether judicial, administrative, or
otherwise, based upon claims that the rates established pursuant
to this Appendix A are unjust, unreasonable, or otherwise
illegal. The rate and accounting principles specified in this
Appendix A are subject to challenge by the Parties only with
regard to the period subsequent to December 31, 1985 and then
only in connection with rate levels not established pursuant to
Parts II through V of this Appendix A.
Nothing contained herein shall be construed as affecting in any
way the right of Pacific under this rate schedule to
unilaterally make application to the Federal Energy Regulatory
Commission for a change in rates under Section 205 of the
Federal Power Act and pursuant to the Commission's Rules and
Regulations promulgated thereunder, with one exception. The
Rate Schedules A through R rates will not be subject to change
-58-
by Pacific, except pursuant to this agreement, as amended, prior
to January 1, 1986.
However, the Parties agree that Pacific may, at its election,
file another general rate increase under Section 205 of the
Federal Power Act consisting of two phases affecting Rate
Schedules A through I and R rates on or after August 1, 1985,
with a proposed effective date no earlier than October 1, 1985.
It is further agreed that any such general rate increase filing
by Pacific will contain Pacific's consent to a January 1, 1986
effective date for Phase I of the proposed increase and a March
1, 1986 effective date for Phase II of the proposed increase.
NCPA agrees to actively support the January 1, 1986 and March 1,
1986 effective dates for Phases I and Ii of the proposed
increase, respectively, so long as these effective dates
encompass at least a one -day suspension of the proposed rates
and an initial 60 -day notice period for the Phase I rates.
Should Section 205 of the Federal Power Act and/or Section 35.13
of the FERC Regulations or any successor law or regulation be
unavailable as a means of changing these rates established
pursuant to this Appendix A, Pacific reserves the right, at its
election, to change rates under the Appendix A pursuant to
Section 206 of the Federal Power Act or any successor law or
laws or pursuant to any other applicable law.
-59-
This Rate Agreement is entered into this day of
, 1983, by the undersigned Parties (who are
fully authorized to do,so) on behalf of the Parties indicated:
The Northern California Power Agency and
The Cities of Alameda, Healdsburg,
Lodi, Lompoc, Ukiah, Biggs,
Gridley, Palo Alto, Roseville and
Plumas Sierra Electric Rural Cooperative
R. E. Grimshaw
General Manager
Northern California Power
Agency
W. M. Gallavan
Vice President - Rate and
Economic Analysis
Pacific Gas and Electric Company
-60-
EXHIBIT A-1
Contract Demand Forecast
1983 1984 1985
98 MW 109 MW 122 MW
Capacity Reserve Forecast
1983 1984 1985
8,535 kW/mo 10,165 kW/mo 10,213 kW/mo
1
EXHIBIT A-2
Functionalized Transmission Losses
Transmission Function
System Interconnection
Generation Tie
Backbone
Area
Distribution
Other
Loss Factorl
(Applied to
Transmission
Output)
Demand Energy
1.0004 1.0005
Loss Factor'
(Applied to
Transmission
Input)
Demand Energy
0.9996 0.9995
1.0024
1.0037
0.9976
0.9963
1.0217
1.0174
0.9787
0.9829
1.0158
1.0140
0.9845
0.9862
1.0238
1.0092
0.9768
0.9909
(To be determined
on a case-by-case
basis for
direct
service
facilities
not covered by the
above Transmission
Functions)
1 Loss factors applied to delivery of capacity and energy _
utilizing the applicable transmission facilities listed above.
Transmission losses for applicable transmission facilities
shall be added to determine the total losses between Delivery
Point and Point of Receipt.
2
EXIMIT A -2-A
EMPLE OF
APPLIED FUNciONALIZED TRANSMISSI0N
LOSS FACTORS
Example: NCPA has 55 MW (300 GW11) of Geysers Generation & 45 MW (200 GUM) of Third Party purchases received at the backbone.
How much supplemental power, after transmission loss adjustments, does NCPA need at the backbone output to meet
100 MW/500 GWH of NCPA load delivered in equal amounts to the four cities as shown? it
Geysers Generation
At Generation Tie Output
(Equal to Backbone Input)
Third Party Purchases
at Backbone Input
Geysers Generation &
Purchases at Backbone
Output
Redding's load at
Backbone Output
Alameda's load at
Backbone Output
Roseville's load
at Backbone Output
Lompoc's load
at Backbone Output
CAPACITY (MW)
55 x .99761/ = 54.8680
45 x 1.0
NCPA's load at Backbone Output
Load at Backbone Output
Power Source at Backbone Output
= 45.0000
99.8680 x .9787/ = 97.7408
= 25.000
25 x (1.0238)(1.0158)3/ = 25.9994
Supplemental Power at Backbone Output
25 x 1.01584/ = 25.3950
25 x 1.01584/ = 25.3950
i/ Loss factor for Generation Tie Input (demand)
2/ Loss factor for Backbone Input (demand)
3/ Loss factor for Area -Distribution Output (demand)
4/ Loss factor for Area Output (demand)
-3-
101.7894
101.7894
97.7408
4.0486
Energy (GW11)
300 x .99635] = 298.890
200.000
498.890 x. 9820/ = 490.359
= 130.000
130 x (1.0092)(1.0140)1/ = 133.033
130 x 1.01408/ = 131.820
130 x 1.01408/ = 131.820
526.673
526.673
490.359
36.314
5/ Loss factor for Generation Tie Input (energy)
6/ Loss factor for Backbone Input (energy)
lj Loss factor for Area -Distribution Output (energy)
8j Loss factor for Area Output (energy)
EXHIBIT A-3
On -Peak, Off -Peak Periods
On -Peak:
° 7:00 a.m. to 10:00 p.m. Monday through Friday, except holidays
Off -Peak:
10:00 p.m. to 7:00 a.m. Monday through Friday, except
holidays
° All day Saturday, Sunday and holidays
4
EXHIBIT" A48
Year 1983
Transmission Between Point of
Backbone
Transmission Between Backbone
Receipt and Backbone
Transmission
and Delivery
Points
Maximum
Maximum.
(MW)
Contract
(MW)
Rate of
Coincident Rate
Rate of
Point of Receipt
Delivery
of Delivery (MW)
Delivery Points9
Delivery
NCPA Shell #2
Alameda
59
Point of Inter-
49.91
connection
Gridley
0
Midway Substation
2
147.9
Healdsburg
11
Bellota Substation
3
Lodi4
67
Partial Require-
Lompoc
13
ments7 Power from
98
PGandE
Plumas Sierra
0
Rosevilles
0
Ukiahs
18
Palo Alto,
0
Biggs
0
Tracy
50
5
Transmission Between Point of
Receipt and Backbone
Maximum
(MW)
Rate of
Point of Receipt Delivery
NCPA Shell #2
Point of Inter- 49.91
connection
Midway Substation 2
Bellota Subs.tation 3
Partial Require-
ments? Power from 109
PGandE
EXHIBIT A-48
(Year 1984)
Backbone
Transmission Between Backbone
Transmission
and Delivery
Points
Maximum
Contract
(MW)
Coincident Rate
Rate of
of Delivery (MW)
Delivery Points9
Delivery
Alameda
65
Gridley
0
158.9
Healdsburg
12
Lodi4
69
Lompoc
14
Plumas Sierra
0
Roseville5
2
Ukiah6
19
Palo Alto
2
Biggs
1
Tracy
50
R
Transmission Between Point of
Receipt and Backbone
Maximum
(MW)
Rate of
Point of Receipt Delivery
NCPA Shell #2
Point of Inter-
connection
Midway Substation
Bellota Substation
Partial Require-
ments? Power from
PGandE
49.91
2
3
122
EXHIBIT A-4$
(Year 1985)
Backbone
Transmission
Transmission Between Backbone
and Delivery Points
Maximum
Contract
(MW)
Coincident Rate
Rate of
of Delivery (MW)
Delivery Pointss
Delivery
Alameda
(7
Gridley
0
171.9
Healdsburg
12
Lodi4
71
Lompoc
14
Plumas Sierra
0
Roseville5
8
Ukiahs
20
Palo Alto
4
Biggs
1
Tracy
50
rl
EXHIBIT A-48
(Year 1986)
Transmission Between Point of Backbone
Receipt and Backbone Transmission
Maximum
(MW) Contract
Rate of Coincident Rate
Point of Receipt Delivery of Delivery (MW)
NCPA Shell #2
Point of Inter-
49.91
connection
(MW)
Midway Substation
2
Bellota Substation
a
Partial Require-
71
ments? Power from
0
PGandE
13
Transmission Between Backbone
and Delivery Points
* To be supplied by NCPA within 30 days after the Effective Date.
n
Maximum
(MW)
Rate of
Delivery Points9
Delivery
Alameda
71
Gridley
0
Healdsburg
13
Lodi4
73
Lompoc
15
Plumas Sierra
0
Roseville5
15
Ukiahs
21
Palo Alto
5
Biggs
1
Tracy
100
* To be supplied by NCPA within 30 days after the Effective Date.
n
Transmission Between Point of
Receipt and Backbone
Maximum
(MW)
Rate of
Point of Receipt Delivery
NCPA Shell #2
Transmission Between Backbone
Point of Inter-
49.91
connection
Midway Substation
2
Bellota Substation
3
Partial Require-
Coincident Rate
ments7 Power from
Rate of
PGandE
Delivery Pointss
* (ibid from E-8)
EXHIBIT A-48
(Year 1987)
Backbone
Transmission Between Backbone
Transmission
and Delivery
Points
Maximum
Contract
(MW)
Coincident Rate
Rate of
of Delivery (MW)
Delivery Pointss
Delivery
Alameda
73
Gridley
0
*
Mealdsburg
13
Lodi4
75
Lompoc
16
Plumas Sierra
1
Rosevilles
22
Ukiahs
22
Palo Alto
7
Biggs
1
Tracy
100
9
EXHIBIT A-48
(Year 1988)
Transmission Between Point of
Backbone
Transmission Between Backbone
Receipt and Backbone
Transmission
and Delivery
Points
Maximum
Maximum
(MW)
Contract
(MW)
Rate of
Coincident Rate
Rate of
Point of Receipt
Delivery
of Delivery (MW)
Delivery Points9
Delivery
NCPA Shell #2
Alameda
78
Point of Inter-
49.91
connection
Gridley
0
Midway Substation
2
*
Healdsburg
14
Bellota Substation
3
Lodi4
77
Partial Require-
Lompoc
17
ments7 Power from
PGandE
Plumas Sierra
1
Roseville5
31
ukiah6
22
Palo Alto
10
Biggs
1
Tracy
100
* (ibid from E-8)
EXHIBIT A-4 FOOTNOTES
Preliminary studies by Pacific have indicated that the following
reinforcements need to be constructed in order for Pacific to
provide the transmission service requested by NCPA as footnoted
in this Exhibit A-4. The Parties recognize that if requested by
Pacific NCPA shall be responsible for payment of a proportional
share of such reinforcements in accordance with Subsection
9.12.4. However, the Parties agree that these footnotes
represent preliminary studies and as listed in this Exhibit do
not bind either Party. The identification of specific
transmission problems and the resolution of those problems shall
be dealt with by the Engineering and Operating Committee pursuant
to Section 9.13.
1 110 Mw less Santa Clara's share of Geysers transmission is
Interim Transmission Service subject to transmission
curtailments pursuant to Section 6.2 prior to completion of
the Geysers -Lakeville and Lakeville-Sobrante transmission
lines. NCPA may participate as a tenant-in-common in the
Geysers -Lakeville line pursuant to Section 6.3.
2 No Firm Transmission Service is available for energy
delivered at Midway Substation at this time.
3 In order to provide requested Firm Transmission Service two
230 kV circuits would have to be constructed between Bellota
and Tesla substations.
4 In .order to provide requested Firm Transmission Service
Lockeford-Lodi No. 4 60 kV transmission line must be
constructed in 1986.
S In order to provide the requested Firm Transmission Service
1) a 230 kV circuit between Rio Oso and Altantic substations
must be constructed in 1985, and 2) a 230/115/60 kV
transmission bank must be added at Altantic Substation in
1988.
6 In order to provide the requested Firm Transmission Service
the 115 kV Eagle Rock -Mendocino transmission line must be
constructed.
7 Firm Transmission Service for Generation tie and system
interconnection is applicable only to Partial Requirements
Power provided to NCPA by Pacific.
8 Amounts shown in this table must be adjusted for transmis-
sion losses. Billing for Firm Transmission Service shall be
based on transmission input to applicable functions.
9 Substation Delivery Points and Voltages shown in
Exhibit A -4A.
11
EXHIBIT A -4A
Substation Delivery Points, NCPA Member Customers
12
Physical Description
Member Customer
Voltage
of Delivery Point(s)
Alameda
12,000
V
Four delivery points:
at Alameda's Atlantic,
Webster, Central and
Fernside Substations
Biggs
12,000
V
At Biggs' substation
Gridley
60,000
V
At Gridley's substation
Healdsburg
60,000
V
At Healdsbury'g sub-
station in the vicinity
of Mash Drive and
South Fitch Mountain
Road
Lodi
60,000
V
At Lodi's Killelea
substation
Lompoc
70,000
V
At Lompoc's 70/12 kV
substation at D Street
and North Avenue
Palo Alto
115,000
V
At Palo Alto's 115 kV
substation
Plumas Sierra REC
60,000
V
At Plumas Sierra's
Quincy substation
Roseville
60,000
V
At Pacific's Atlantic
Substation
Ukiah
12,000
V
At Pacific's metering
station in the vicinity
of the Gobbi Street
overcrossing of High-
way 101
12
EXHIBIT A-5
Transmission Functions - Definitions
13
EXHIBIT A-5
Transmission Functions - Definitions
The following definitions were designed to provide a systematic
basis for assigning Pacific transmission facilities to functional
groups. In order to maintain a basic level of simplicity only
five functional groups have been delineated; however, because a
great number of relatively complex transmission arrangements must
be put into these five groups, the definitions are necessarily
broad in scope. To realize the objective of broadness, the
definitions, in their application, have been carefully augmented
with engineering judgement.
The definitions were designed to be applied to the transmission
system at the time of its greatest overall stress; i.e., at the
time of the system annual coincident peak. This corresponds to
the starting point for system planning and design if the
hydrologic conditions, system dispatch, load growth, new
construction and switching conditions are all accounted for.
Various contingency conditions, such as line and generator
outages, have not been factored in since the probability of
transmission and resource outages is typically very low, and the
duration of most outages is relatively short on an annual basis.
14
Therefore, they would have a relatively small effect on the
'normal' function of any given transmission line.
A radial tap as used herein is a transmission line tying to the
transmission grid at a single point, the other end of Which is
connected either to a generator or load (or both). A closed loop
tap is a variation of the radial tap and consists of two or more
transmission lines trying to a common point on the transmission
grid and to each other at their extremities; loads and/or
generators can be connected at any point along either lire as
long as no other connections to the transmission grid exist
except back to the common point directly.
The term transmission shall be used for line and substation
facilities Whose nominal operating voltage is 50,000 volts or
greater. This corresponds to the accounting distinction
maintained by Pacific. The legend below applies to examples
given for the various transmission functions.
Backbone Transmission
s
Transmission facilities which serve to integrate major system
resources, directly or through generation ties., and system
interconnections, with each other and together, shall be called
backbone facilities.
The backbone system is analogous to a single transmission supply
bus or node to which are connected all the system
interconnections and resources as well as the majority of all the
system loads.
Transmission facilities which physically parallel the backbone
system but are not necessary to integrate additional system
interconnections or major resources shall be called backbone only
if there exists in these facilities a significant and obvious
parallel power flow under the defined conditions_
Generation Ties
Transmission facilities whose primary purpose is to provide
electrical paths between generating facilities and the integrated
transmission network, at either the backbone or area levels,
shall be called generation ties. The definitions for two
possible types of generation ties are outlined below.
CASE. 1: Generation ties Will consist of radial taps, or closed
loops iron the point of generation to either:- a) the first point
of interconnection with the network; i.e., the point beyond Which
the origin of the power flog becomes. indeterminate, or b) the
point beyond Which the power flowing toward the integrated
network becomes less than 54 percent of the net generation due to
local loads.
Example: D -1(A)
CASE 2: when the generating facility is located on lines
embedd-ed in the integrated transmission network, the lines
emanating from the generator bus shall be called generation ties
if and only if the power flow out on each of the lines is within
*50 percent of the bean power flow out of all the lines,
otherwise they all Will be either backbone or area transmission_
Example: D -1(D)
System Interconnection
Transmission facilities Which are used exclusively to link the
Pacific backbone system to transmission facilities belonging to
other utilities for the purpose of sharing generation reserves or
for the interchange of power, or both, shall be called system
interconnections. The extent of these interconnections shall be
from the common boundaries betweeen utilities to the first point
of connection with the Pacific backbone system.
�N
Exclusive Use
Transmission facilites Which are directly related to the service
of specific, single customers, on either radial taps or closed
loop taps, shall be called exclusive use transmission.
Example: D-3
Area Transmission
Transmission facilities whose primary purpose is to supply bulk
poker to the distribution system shall be called area
transmission.
Area transmission falls into two basic conceptual configurations.
The first are the radial type of lines as shown below.
Example• D -4(A)
The second, and, perhaps less definitive, group of facilities are
those=which physically parallel the backbone and other facilities
but whose primary power flow is not through the line but rather
to distribution stations (loads) located along the lines. In
some instances judgement is involved in deciding when parallel
flow-through power becomes significant enough to make a line
backbone in place of area.
In deciding whether or not one of these facilities (or sometimes
an entire subnetwork) is backbone or area the question of their
existence absent the substations served can be asked. If the
lines would have been built even if the load substations were not
expected to be located there, then the lines would be backbone;
_._ however, if the lines would only exist to serve the load
substations then. they would be area even with some flow through
power apparently paralleling the backbone system.
23
EXHIBIT A-6
Reserve Planning Criteria
Pacific is currently using four reserve planning criteria. The
applicable planning criterion for each time period (e.g., month)
is the one that produces the highest required reserve capacity.
The four reserve planning criteria are:
1. Reliability Criterion: This criterion requires that random
outages of capacity resources are not expected to exceed the
planned reserve capacity (taking into account scheduled
maintenance) more often than one day in ten years. The
calculation is performed with a loss -of -load probability
(LOLP) computer program assuming dry hydroelectric
conditions. The calculation includes 600 MW of "perfect
capacity" in reserve support from Southern California
Edison. Previous LOLP analyses included 90 MW of "perfect
capacity" to reflect the two combustion turbines owned by
the Modesto Irrigation District. Future LOLP analyses will
not include the 90 MW because future. area load forecasts
will reflect MID's operation of those turbines.
25
2. Contingency Criterion: This criterion requires that the
planned reserve capacity be equal to or greater than the
combined capacity of the two largest generating units or
transmission risks in the system.
3. Percentage Criterion: This criterion requires that planned
reserve capacity each month be equal to or greater than 12%
of the estimated firm peak load for that month.
4. Energy Criterion: This criterion requires that the energy
capability of all units not scheduled for maintenance exceed
the forecasted monthly energy load by at least one-half of
the energy capability of the largest unit that is not
scheduled for maintenance.
These four criterion reflect standard utility practice in the
United States. However, they do not relate directly to the
economic tradeoff between the cost of new generating capacity and
the value of that capacity to the consumer in ensuring reliable
service. studies within and outside PGandE may result in the
development and adoption of new reliability criteria that more
directly address this economic tradeoff.
9
X47
EXHIBIT A-7
PACIFIC GAS AND ELECTRIC COMPANY SHEET NO.
FERC ELECTRIC TARIFF
FUEL COST ADJUSTMENT
1. Applicability
This fuel cost adjustment provision applies to bills for service under
FERC Electric Tariff Original Volumes Nos. I and II.
2. Billing Amount
The amount hereunder to be added to or subtracted from each bill
determined at the Base Rates shall be the product of the total kilowatt
hours for which the bill is rendered multiplied by the Adjustment Rate.
3. Base Rates
The Base Rates are the rates for service under FERC Electric Tariff
Volumes Nos. I and II effective as of January 1, 1982 and as adjusted
pursuant to the Settlement Agreement dated
May 5, 1982
4. Base Weighted Average Cost of Thermal and Economy Energy
- - The base weighted average cost of thermal and economy energy is $0.00233
per kilowatt hour of jurisdictional sales. Thermal energy -is electric
energy where the source of energy for the prime mover is heat. Economy
energy is electric energy produced from a source outside the Company
system and substituted for energy that could have been produced by a less
economical source in the Company system.
5. Record Period
The volumes of thermal and economy energy, fuel related thereto, and
electric sales consumed, purchased, and sold, as the case may be, shall
be those recorded during the twelve calendar month period ending at the
end of the second month prior to the month in which the Revision Date
occurs.
S. Revision Dates
The Revision Dates are the first day of each calendar month. On such
dates, the Utility shall, in accordance with the provisions hereof, place
into effect an increase or decrease in the Adjustment Rate then in effect
to reflect changes in the average cost of thermal and economy energy.
7. Adjustment Rate
(a) The Adjustment Rate, to become effective for meter readings on and
after each Revision Date and continuing thereafter until the next
Adjustment Rate becomes effective in accordance herewith, shall be
the arithmetic sum of an Offset Rate and a Balancing Rate, each
multiplied by 1.0022 (to adjust for franchise expense) and carried
to the nearest $0.00001 per kilowatt hour.
PACIFIC GAS AND ELECTRIC COMPANY
FERC ELECTRIC TARIFF
SHEET NO.
(b) The Offset Rate shall be the difference, as set forth in Section 8
below, between the current weighted average thermal and economy
energy cost per kilowatt hour of jurisdictional sales and the Base
Weighted Average Cost of Thermal and Economy Energy.
(c) The Balancing Rate shall be an amount per kilowatt hour of juris-
dictional sales necessary to amortize the accumulated balance in the
Electric Energy Cost Adjustment Account -FERC, FERC Accounts Nos. 186
and 253. If the accumulated balance in that account, whether debit
or credit, is ten percent or more of the annual offset revenue,
calculated by utilizing the most current effective offset rate and
the Record Period sales, the balancing rate, as set forth in
Section 10 below will be increased by twenty-five percent and such
adjustment will continue until such time as the balancing account is
five percent or less of the product of the most recent offset rate
and Record Period sales. The procedures for maintaining the
Electric Energy Cost Adjustment Account -FERC and for determining the
Balancing Rate are set forth in Sections 10 and 11 below.
8. Offset Rate
The Offset Rate shall be determined by dividing (1) the amount of the
Current Cost. of Thermal and Economy Energy determined as specified below,
by (2) the Record Period kilowatt hours of applicable jurisdictional
sales, and (3) subtracting the Base Weighted Average Cost of Thermal and
Economy Energy.
9. Current Cost of Thermal and Economy Energy
The current cost of thermal and economy energy shall be: (1) the volumes
of gas and of each type of oil and coal fuel used for electric generation
in the Record Period*, expressed in millions of Btu, and the volumes of
geothermal production and of nuclear energy production**, expressed in
kilowatt hours, multiplied by the current price of each set forth below;
plus (2) the volumes of purchased thermal and economy energy in the Record
Period multiplied by the actual average energy rates for such purchases
in the latest available month in the Record Period; multiplied by (3) the
ratio of applicable jurisdictional sales to total system sales***, and
further multiplied by (4) 0.959 to reflect the estimated difference
between system and jurisdictional losses.
The current price of gas fuel shall be the latest known applicable rate
under California Public Utilities Commission Schedule No. G-55 expressed
in dollars per million Btu, in effect on or before the Revision Date,
weighted by the quantity of gas used under such gas rate schedule during
the Record Period. The current price of oil and coal fuel shall be the
average cost in dollars per million Btu of each type from inventory (FERC
Account No. 151) in the second month prior to the month in which the
(Footnotes on Sheet No. .)
PACIFIC GAS AND ELECTRIC COMPANY
FERC ELECTRIC TARIFF
SHEET NO.
Revision Date occurs. The current price of geothermal steam shall be the
price per kilowatt hour of geothermal plant output (including payments for
effluent disposal) of steam producers effective for production in the
second month prior to the month in which the Revision Date occurs. The
current price of nuclear fuel shall be the weighted average unit rate of
amortization expressed in dollars per kilowatt hour, of nuclear fuel assem-
blies in -core including an allowance for lease charges, transportation,
and storage of spent fuel assemblies, in the second month prior to the
month in which the Revision Date occurs.
10. Balancing Rate
The Balancing Rate per kilowatt hour sold shall be determined by dividing
(1) the balance in the Electric Energy Cost Adjustment Account -FERC at the
end of the latest month at the time of the computation being made under
the provisions hereof, by (2) the Record Period kilowatt hours of applicable
jurisdictional sales.
11. Electric Energy Cost Adjustment Account -FERC
Effective January 2, 1976, the Company shall maintain an Electric Energy
Cost Adjustment Account -FERC. Entries shall be made to this account at the
end of each month as follows:
(a) A debit entry, if positive (credit entry, if negative) equal to:
(1) the jurisdictional recorded expense for thermal energy and
for purchased thermal and economy energy during the month,
less
(2) the amount of revenue billed during the month under the Offset
Rate (not including the associated adjustment for franchise
expense), less
(3) the amount of revenue billed from energy sales during the month
to the California Department of Water Resources, less
(4) an amount equal to the jurisdictional energy sold to which the
Adjustment Rate is applicable multiplied by the Base Weighted
Average Cost of Thermal and Economy Energy, less
(5) the amount of total revenue billed during the month for the
energy component of inter -system transactions allocated to
applicable jurisdictional sales as set forth in item (e) below,
less
(6) the jurisdictional portion of total recorded fuel expense
associated with fuel receipts in payment for electric service,
but not to exceed the expense for fuel actually used to provide
such service.
PACIFIC GAS AND ELECTRIC COMPANY
FERC ELECTRIC TARIFF
SHEET NO.
(b) A credit entry, if positive (debit entry, if negative) equal to the
amount of revenue billed during the month under the Balancing Rate
(not including the associated adjustment for franchise expense).
(c) If the Company received from any of its gas or geothermal or purchased
thermal and economy energy suppliers, cash refunds including any
associated interest, on and after the date this Fuel Cost Adjustment
provision becomes effective, the amount thereof associated with juris-
dictional sales of electricity shall be recorded as a credit to the
Utility's Electric Energy Cost Adjustment Account FERC -except that in
the event the non -jurisdictional portion of any refund or refunds is
passed through directly to other ratepayers, the portion of such
refund or refunds attributable to applicable wholesale customers
shall be passed through to such customers as a credit to bills, and
the Utility shall not record such refund in this account. Cash
refunds associated with purchases of coal, oil, or nuclear fuel
shall be recorded as a credit to the appropriate inventory account.
(d) A debit entry, if positive (credit entry, if negative), for interest
is to be computed at an average prime rate.for each calendar
quarter. The applicable average prime rate for each calendar
quarter shall be the arithmetic mean, to the nearest one-hundredth
of one percent, of the prime rate values published in the Federal
Reserve Bulletin, or in the Federal Reserve's "Selected Interest
Rates" (Statistical Release G. 13) or the successors thereto, for
the fourth, third, and second months preceeding the first month of
the calendar quarter. The preceeding interest calcuation is the same
as the FERC refund rate calculation specified in Title 18
Conservation of Power Water Resources, Chapter 1, paragraph 35.19a
subparagraph 2(iii)(A). If the FERC should modify this section of
Title 18, then the interest calculation in this fuel cost adjustment
provision shall be modified accordingly.
The interest rate will then be applied to the average of the balance
in this account at the beginning of the.month and the balance in
this account after entries (a), (b), and (c) above.
(e) Items (a) (1), (4) and (5), and item (c), above in any month shall
be determined by multiplying the Utility's total expense or revenue
associated with such items by the ratio of applicable jurisdictional
energy sales to total system sales***, and further multiplying by
0.959 to reflect the estimated difference between -system and juris-
dictional losses.
APPENDIX B
Relay Settings for Automatic Load Shedding
rind Underfrecruency Protective Relaying
1_ Pacific Gas and Electric Company Underfrequency Load
Shedding and Tie Tripping Schedule
A-18 Interruptible
Customers
1st 5% Block of Load
2nd 5% Block of Load
3rd 5% Block of Load
4th 5% Block of Load
5th 5% Block of Load
6th 5% Block of Load
7t1i 5% Block of Load
8th 5% Block of Load
9th 5% Block of Load
10th 5A Block of Load
Round Mountain Tie
Lines
Midway Tie Lines
Separate Thermal
Plants
Time
Frequency Delay Frequency
Hz Cycles Hz
59.75 6 Manual
59.10
6
59.90
59.10
6
59.85
58.90
6
59.80
58.90
6
59.70
58.70
6
59.65
58.70
6
59.60
58.50
6
59.55
58.50
6
59.50
58.30
20
59.40
58.30
26
59.40
58.20
60
Manual
58.20
6
Manual
55.00 30
cycles
57.00 1 minute
58.00 3 minutes
B-1
Applicable
Reclosing Footnotes
(g) (a) (c) (s)
Automatic
Automatic
Automatic
Automatic
Automatic
Automatic
Automatic
Automatic
Automatic
Automatic
By System
Dispatcher
By System
Dispatcher
Manual
(b) (d)
(a)(b)(d)
(a)(b)(d)
(a)(b)(d)
(a)(b)(d)
(a)(b)(d)
(a) (b)
(a) (b)
(e)(d)
(e)(d)
(a)
PACIFIC GAS AND ELECTRIC COMPANY
FERC ELECTRIC TARIFF
SHEET NO.
(f) If this fuel cost adjustment provision is amended or superseded in
whole or in part by a successor fuel cost adjustment provision, any
balance in the Electric Energy Cost Adjustment Account - FERC at the
time such successor fuel cost adjustment provision becomes effective
shall be carried forward and fully amortized as specified in such
successor fuel cost adjustment provision.
7
*Excluding fuel receipts in payment for electric service.
**Starting the first full month that Diablo Canyon Nuclear unit I and/or II
is includable in Base Rates a full year of nuclear fuel volume will be
reflected in the Record Period and the other sources of fuel, where
applicable will be adjusted accordingly.
***Excluding sales in the Record Period associated with inter -system transactions
based on incremental or replacement' energy cost, California Department of
Water Resources sales and sales in the Record Period for which payment is
made in fuel.
2.
Underfrequency Protective Relaying for NCPA Units:
Maximum
Tripping
Frequency
58.0 Hertz
57.0 Hertz
55.0 Hertz
Footnotes
Minimum Relay
Tripping Time
Delay
(a) Digital frequency relay required.
3 minutes
1 minutes
h second
(b) Set by California Power Pool Board of Control.
(c) Requires a communication circuit to the Switching Center.
(Current is used for alarm only.)
(d) Reclo'sing will be automatic when .automatic reclosing of
switches is provided and load is tripped by relay. At
attended stations when underfrequency relay trip circuits
are not equipped for automatic reclosing, the. substation
operator will manually. reclose the circuits when the
frequency returns to the reset frequency.
(e) Deep Load Shedding --requires two frequency relays for
installation. Also, to be equipped with manual load
shedding control switch which will cut out the automatic
reclosing feature (Design Standard 462044): Manual
reclosing will be upon approval of the System Dispatcher.
(f) A three set point digital frequency relay with external time
delay is used for separation of thermal plants.
(g) Upon - restoration of normal system frequency with the
approval of the System Dispatcher.
B-2
APPENDIX C
Continuing Arrangements from NCPA Retail Contracts
As an accommodation to NCPA and NCPA Member Customers, the
following arrangements have been carried over from the NCPA
cities resale contracts and are herein subject to the terms and
conditions of. this Interconnection Agreement between Pacific and
NCPA:
1. City of Alameda - Pacific and NCPA recognize that the
letters of agreement, dated November 4, 1982 and
November 24, 1983 between J. M. Stearns of Pacific and J. R.
Shepard of the City of Alameda correctly define the division
of Cost responsibilities regarding the City's 115 kV upgrade
from the City of Alameda to Pacific's Stations "C" and "J".
2. City of Lodi - Pacific shall as an accommodation, deliver to
NCPA electric power to the city of Lodi's:
(a) Pumping Plant No. 10, located one-half mile east of
Wells Lane and one-half mile north of Victor Road (near
Guild Winery),
C-1
(b) Pumping Plant No. 11, located on the east side of the
right of way of Central California Traction Company
between Victor Road and East Pine Street,
(d) White Slough Sewage Treatment Plant located one-half
mile west of Thornton Road, approximately three miles
south of Highway 12, outside the continuous corporate
limits of the City.
Electric power so delivered shall be metered and the
quantities of electric power so measured shall be adjusted
to backbone in accordance with Appendix A. These facilities
shall be considered NCPA Delivery Points and to the extent
necessary for NCPA to operate in accordance with Appendix A
and in accordance with "NCPA Operating Procedures Under
Real -Time Scheduling", NCPA shall meter and schedule for
load at such Delivery Points on a real-time basis.
3. City of Palo Alto - Except to the extent that NCPA requests
changes in delivery conditions at Palo Alto, pursuant to
Section 6.6, Pacific agrees to make changes and additions to
Pacific's transmission system, at Pacific's expense, which
shall provide transmission, including that transmission
provided for Western deliveries, from Pacific's Ravenwood
Substation to Palo Alto's 115 kV substation at 115 kV up to
approximately 500 MW.
C-2
4. City of Ukiah - Pacific shall deliver to City of Ukiah
electricity for City's use in the operation of City's sewage
pumping plant located outside the continuous corporate
limits of the City, approximately 4,000 feet south of the
Ukiah Airport and east of the Northwestern Pacific Railroad
right of way, and such electricity shall be delivered and
metered and the quantities so measured shall be adjusted to
backbone in accordance with Appendix A. This facility shall
be considered an NCPA Delivery Point and to the extent
necessary for NCPA to operate in accordance with Appendix A
and in accordance with "NCPA Operating Procedures Under
Real -Time scheduling", NCPA shall meter and schedule for
load at such Delivery Point on a real-time basis.
. C-3
APPENDIX D
Metering -Specifics
Delivery Meters
For accounting purposes, all electric power delivered hereunder
shall be at the Delivery Points specified in Appendix A, but for
convenience*of the Parties may be metered at such locations on
NCPA's side of the Delivery Points as may be mutually agreed upon
and adjusted for line and transformer losses, if any, to the
Delivery Points. Unless otherwise agreed Pacific shall provide
all equipment for metering electric power delivered hereunder,
except for such metering equipment provided by Western, and NCPA
shall provide and maintain, at its expense, all facilities
required to accommodate Pacific's metering equipment and to
receive electric power at said Delivery Points and to utilize
same beyond that point.
Station Meters
NCPA shall provide and install "in" and "out" station meters for
the measurement of the amounts of power both real and reactive on
each NCPA Project for purposes including but not limited to
billing and payment. Unless otherwise agreed, all metering shall
D-1
Ij
be at transmission voltages at Pacific's Interconnection with an
NCPA Project. Such station meters shall be designed to prevent
rev:rse registration and to continuously measure and record
deliveries of kilowatts (integrated monthly thirty -minute
intervals), kilowatt hours, kilovars and kilovar hours.
NCPA shall be responsible for making arrangements to read all
meters on the last day of each billing period and at such other
times as may be required to carry out the provisions of this
contract.
Meter Testinq and Meter Errors
All meters shall be installed, tested, and maintained in
accordance with Good Utility Practice and shall be tested
periodically, at intervals of not less than once each year, and
at any other reasonable time upon request by Pacific or NCPA.
Meters shall be sealed and the seals shall be broken only upon
occasions when the meters are to be inspected, tested, or
adjusted, and representatives of both Parties shall be afforded
reasonable opportunity to be present upon such occasions.
Any metering equipment found to be defective or inaccurate shall
be immediately repaired or readajusted or replaced. In such
case, the energy delivered shall be estimated jointly by NCPA and
Pacific from the best information available for such period of
D-2
1 ••
failure, and for billing purposes_ If any meter test as made by
such Parties discloses that the error of a meter exceeds two
percent, correction based upon the inaccuracy found, shall be
made on the records or electric capacity and energy. delivered
since the meter test immediately preceding the test in which such
error was found; provided, that no correction shall be made for a
longer period than such inaccuracy may be determined by the
Parties to have existed. Any correction in billing resulting
from such correction in meter records shall be made in the next
regular transaction hereunder and such correction when made shall
constitute full adjustment of any claim between such Parties
arising out of such inaccuracy of such meter.
. D-3
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APPEhTDIX E
LETTER AGREEMENT RE: REAL-TIr4E SCHEDULING
In order that Northern California Power Agency
(NCPA) may schedule, on a real-time basis, the collective
Western Area Power Administration allocations of its Member
Customers, subject to the following conditions, the
undersigned parties hereby agree to the attached "NCPA
Operating Procedures Under Real -Time Scheduling," which
procedures are incorporated by reference herein as
Exhibit 1. These procedures will allow power from the
Western Area Power Administration (Western) to be
pre -scheduled by NCPA with Pacific Gas and Electric Company
(Pacific) in a manner similar to other resources which NCPA
will be required to pre -schedule with Pacific under
NCPA-Pacific Interconnection Agreement. NCPA and Pacific
agree that this Letter Agreement (LA) and Exhibits 1 and 2
shall supplement Paragraph 7.2.3 of their proposed
Interconnection Agreement and be deemed an integral and
material part of such Agreement.
The parties understand that Western and NCPA may
develop procedures for their own contracting and operating
purposes, but that this will not affect this LA and the
rights and obligations of Pacific.
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This LA is expressly subject to the following
conditions precedent:
1. The undersigned parties recognize that this
LA is but one element of a comprehensive, privileged
settlement package proposal in which Pacific and NCPA intend
to resolve their remaining differences with respect to an
Interconnection Agreement. Each element of the settlement
package proposal is interrelated with every other such
element, and is in consideration for every other such
element. Therefore, the undersigned parties agree that this
LA shall be null and void, and of no force or effect if, for
any reason whatsoever, any of the following events occur:
(a) Either Pacific or NCPA fails to implement within a
reasonable time thereafter the agreed settlement
package;
(b) NCPA, any NCPA Member Customer or any other NCPA
member whose approval is required in order for.
NCPA to be legally authorized to execute the
Interconnection Agreement fails to execute the
Agreement on or before July 11, 1983; or
(c) The Interconnection Agreement fails to become
effective in accordance with its terms after
filing with the FERC.
2. The undersigned parties agree that in order
to fully implement this LA, Contract No. 14-06-200-2948A,
between The United States of America and Pacific must be
IWAS
0
1 it amended. The United States of America, acting by and
2 through Western, and Pacific hereby agree to amend said
3 contract to the extent necessary to implement this LA in
4 accordance with the form attached hereto as Exhibit 2. The
5 undersigned parties agree to support acceptance of the
6 I amendment without change or condition by -any regulatory
i
7 agency having jurisdiction over said contract or the
8 amendment. This LA shall be null and void, and of no force
9 or effect if, for any reason whatsoever, such amendment is
10 not executed or, under applicable regulatory procedures,
11 I does not become effective without change or condition within
12 !� 18 months after the Effective Date of the Interconnection
13 I Agreement.
14 The undersigned parties recognize that this LA,
15 the settlement package proposal and the Interconnection
16 I Agreement which may result therefrom are, for a variety of
17 1 reasons, unique and are in the nature of settlement
I
18 ► agreements and that they shall not serve as precedents for
19 any future negotiations or agreements between the parties or
20 between a party and another person or entity.
21 The undersigned parties recognize that this LA is
22 itself a settlement and compromise and its existence, and
23 the existence of its terms and conditions constitute
24 evidence of no fact or circumstances save only the fact of
25 compromise and settlement.
26 The undersigned parties agree that the settlement
-3-
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package proposal and this LA are and will remain privileged
to the extent permitted by law unless and until an Intercon-
nection Agreement is filed with the FERC.
The undersigned parties agree that this LA is an
express written agreement satisfying the requirement of the
proposed amendment to Contract 2948A attached as Exhibit 2.
The signatories below represent and warrant that
they are fully authorized to execute this LA on behalf of
the party indicated.
AGREED TO AND ACCEPTED BY:
United States of America
Western Area Power Administration
By � [attest]
Authorized Represen ative
Northern California Power Agency
By [attest]
Robert E. Grims aw, as
General Manager
Pacific Gas and Electric Company
By [attest]
Nolan acnes, Vice President,
Planning and Research
-4-
1 EXHIBIT 1
2
3 NCPA OPERATING PROCEDURES UNDER REAL-TIME SCHEDULING
4
5 The following lists the principles under which
6 Northern California Power Agency (NCPA) agrees to real-time
7 schedule. NCPA, Western Area Power Agency (Western) and
8 Pacific Gas and Electric Company (Pacific) agree to begin
9 operation under these principles no later than 18 months
10 after the Effective Date of the NCPA-Pacific interconnection
11 Agreement.
12 1. NCPA shall schedule all transactions
13 (purchases and sales) on a one-hour basis (as used herein an
14 hour shall mean a clock hour). This schedule in preliminary
IS form will be provided to Pacific by 2:00 p.m. the day prior
16 to its intended utilization. For.changes in NCPA's load,
17 NCPA may have the opportunity to change its schedules
18 pursuant to Section 7.2. Western deliveries shall be
19 included in the following scheduled transactions.
20 (a) Changes in this schedule shall be transmitted to
21 Pacific dispatchers at least ten minutes before the
22 hour or half hour in which the schedule is to become
23 effective. All procedures for transmitting and
24 effectuating such changes in schedule shall be mutually
25 agreed upon.
26 ///
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(b) Prior to the earlier of May 1, 1989 or the commercial
operation date of an NCPA Unit with a Capacity Rating
of at least 50 megawatts which is capable of following
NCPA's load, NCPA shall have the opportunity, in
addition to schedule changes pursuant to (a) above, to
change half hourly schedules one time during the half
hour for the remainder of the half hour pursuant to the
procedures specified in (a) above. Western schedules
may be changed during this period one time during the
half hour for the remainder of the half hour upon
notice.
(c) Schedule changes shall be transmitted by telecopy from
the NCPA dispatch center to Pacific's San Francisco
dispatch center unless otherwise agreed.
In addition to the above hourly schedule, NCPA
shall also provide Pacific with the following estimates
five days prior to the beginning of each month:
(i) Monthly Mwh generation for each NCPA Unit or NCPA
Project.
(ii) Maximum and minimum loading for each NCPA Unit or
NCPA Project.
(iii) Overall operation strategy regarding the operation
of each NCPA resource.
2. Prior to 18 months after the Effective Date
of the Interconnection Agreement, Pacific and NCPA shall
agree on an acceptable energy deviation band between
-2-
1 scheduled flow and metered flow of energy in any half-hour
2 period_ The magnitude of such a deviation band shall be
3 based on NCPA's ability to, follow load but shall not
4 substantially differ from west coast utilities operating
5 procedures. Any such energy deviation within this band
6 shall be adjusted by the NCPA schedulers to eliminate any
7 energy deviation within the next hourly like load period or
8 as soon as possible thereafter during like load periods
9 (on -peak off-peak, as defined in Appendix A). Any residual
10 deviations within the band that cannot be adjusted as
11 described above during the month shall be carried forward
12 and adjustments made as soon as possible in the following
13 month during like load periods. Any positive energy
14 deviation in any half hour period outside the agreed-upon
15 band shall be considered inadvertent flow to the Pacific
16 system. Any negative deviation in any half hour period
17 outside the agreed-upon band shall be considered Partial
18 Requirements Power sold by Pacific to NCPA. No capacity
19, shall be associated with this energy deviation band.
20 3. NCPA shall provide Pacific with the following
21 information within five days after the last day of the
22 month.
23 (a) Monthly reports of actual schedules of all
24 transactions;
25 (b) Monthly reports of all data necessary to calculate
26 payments;
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(c)
Monthly reports of like hour energy deviation
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adjustments;
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(d)
Report on residual energy deviations which NCPA
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was unable to reschedule in like load periods
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during that billing month;
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(e)
A record of all communications where requested by
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Pacific between NCPA and Pacific dispatchers,
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either voice or electronic, as needed for
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resolution of disputes.
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4. The above schedules shall be used in the
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determination of billing Demand, Partial Requirements Power
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Energy,
spinning Reserves, Maintenance Power, Short -Term
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Firm Power, Curtailment Power and Emergency Power and other
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services
NCPA may purchase from Pacific. Such schedules
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shall be
subject to meter verification.
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5. NCPA's scheduling of power deliveries for its
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cities from Western will be as follows:
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(a)
Prior to the beginning of each month, NCPA and
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Western shall agree on a maximum coincident rate
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of delivery for Western power. such maximum rate
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of delivery shall be determined based upon the
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forecasted monthly peak of each Member Customer,
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its Contract Rate of Delivery (CRD) and
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agreed-upon coincidence factors.
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(b)
Additionally, NCPA and Western will agree upon a
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fixed amount of energy to be made available by
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Western for scheduling by NCPA. This amount of
energy shall be based upon the forecasts of month-
ly peaks, total energy requirements, and CRD's.
(c) NCPA shall schedule its delivery of power from
Western based upon (a) and (b) above. NCPA and
Western shall agree upon a minimum amount of
energy that must be scheduled by NCPA in any hour.
(d) Western will continue to bill individual NCPA
Member Customers on the same basis it presently
Utilizes.
(e) If at the end of any month the total amount of
energy for which Western bills the NCPA Member
Customers is different from the total energy
scheduled by NCPA, then such difference shall be
added or subtracted from the amount of energy
available to the NCPA for scheduling in the month
following the identifications of such deviation.
Monthly billing between Pacific and Western and
between Pacific and NCPA will be based on
scheduled amounts of energy.
(f) Real-time scheduling would be deferred for any
NCPA Member Customers which are full requirements
customers of Western only until that NCPA Member
Customer begins to take any service under the NCPA_
contract. Such an NCPA Member Customer would
begin real-time scheduling of all power, including
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Western power, upon the occurrence of the earliest
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of the following events:
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(1) on the date that NCPA Member Customer is
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forecasted by NCPA to exceed its Western
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allocation;
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(2) on the first day of the calendar month
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following the month in which such NCPA Member
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Customer actually exceeds its Western
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allocation or takes any electrical services
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from any person or entity, including Pacific,
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other than Western;
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(3) On the date upon which, at the Member
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Customer's option it begins scheduling its
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Western allocation on a real-time basis prior.
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to the occurrence of the earlier of
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(1) or (2).
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When an NCPA Member Customer exceeds its Western
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allocation pursuant to (2) above, the amount of
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capacity and energy by which that NCPA Member
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Customer exceeded its Western allocation shall be
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deemed to have been sold to NCPA by Pacific at the
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rates listed in Schedule A of Appendix A for
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Partial Requirements Power service. The amount of
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capacity sold to NCPA by Pacific due to an NCPA
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Member Customer's exceeding its Western allocation
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shall not be used in determining a new contract
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demand pursuant to Paragraph VII.1.1.1 of
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Appendix A. This procedure shall be used only in
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the one month that such NCPA Member Customer
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exceeds its Western allocation pursuant to (2)
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above. Thereafter that NCPA Member Customer's
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half-hourly loads shall be added to NCPA's half
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hourly load in determining all charges pursuant to
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the Appendix A.
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All other NCPA Member Customers' loads would
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be scheduled by NCPA on a real-time basis not
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later than 18 months after the Effective Date of
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the Interconnection Agreement, pursuant to
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Western's determination of the amount of energy
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available to NCPA and a maximum CRD.
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(g) Once an NCPA Member Customer begins to schedule on
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a real time basis, it shall continue to do so, and
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may not operate other than on a real time basis
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thereafter.
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EXHIBIT 2
AMENDMENT TO ARTICLE 14(c)(2)(i) OF CONTRACT 2948A
TO ALLOW FOR REAL-TIME SCHEDULING
(i) The United States shall serve each such Customer either
(a) at a rate up to but not exceeding such Customer's
then effective contract rate of delivery and
unless otherwise agreed among the Contracting
Officer, Contractor and such Customer, shall
supply that portion of the total energy delivery
to such Customer during any month which is equal
to the total energy delivery to such Customer from
all sources multiplied by the proportion between
such Customer's then effective contract rate of
delivery and such Customer's maximum Demand during
that month; or
(b) in the case of Customers who have utility
obligations to retail customers, by an express
written agreement among the Contracting Officer,
Contractor, and such Customer, at a pre -determined
schedule rate up to but not exceeding such
Customer's then effective contract rate of
delivery, and shall, at least five days prior to
the beginning of every calendar month, indicate
the maximum amount of energy to be scheduled to
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the Customer in the next month. Such scheduled
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energy shall not differ from that amount of energy
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which would otherwise have been delivered to such
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Customer under (a) above and the agreement
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providing for such scheduling shall specify
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scheduling adjustments to assure that such energy
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limit is not exceeded unless otherwise agreed.
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The agreement providing for such predetermined
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scheduling shall also set forth the power
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accounting mechanism, the term of the agreement,
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and other appropriate terms and conditions for the
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sale of the United States' and Contractor's
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capacity and energy to the Customer.
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A y�
NCPA's Responsibility to Construct, or Cause to be Constructed, a
Third 230 kV Transmission Line out of The Geysers
In accordance with Paragraph 6.2.7c of the Interconnection
Agreement, NCPA shall meet the following schedule for
constructing, or causing to be constructed, 230 kV transmission
line out of The Geysers.
Benchmark Date
1. File Complete License Application March 1, 1984
2. Obtain Construction Approval July 1, 1986
3. Complete Construction January 1, 1990
If NCPA fully completes each Benchmark no later than the date
shown, Pacific will transmit the generation dedicated to NCPA
Member Customers from NCPA's Geothermal Project Shell No. 3, and
determine capacity credit for that project in the same manner as
provided for NCPA Initial Project pursuant to Paragraph 6.2.7b of
the Agreement.
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If NCPA fails to fully complete any one of these benchmarks by
the date specified, subject only to Section 9.8, Pacific :hall
not be obligated or required to provide any Firm Transmission
Service for NCPA's Geothermal Project Shell No. 3. Transmission
service for such project shall be provided only as Interruptible
Transmission Service Dursuant to Section 6.3.
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