HomeMy WebLinkAboutAgenda Report - December 15, 1999 E-11MMUNICATION
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CITY OF LODI COUNCIL i - - - - - ____ --TA __ __ - - -
AGENDA TITLE: United States of America Department of Energy Western Area Power Administration Service
Agreement for Long -Term Firm Point -To -Point Transmission Service (Contract No. 99 -SNR -
00206)
MEETING DATE: December 15, 1999
PREPARED BY: Electric Utility Director
ACTION: That the City Council authorize the City Manager to execute the attached
contract with the Western Area Power Administration (Western).
BACKGROUND INFORMATION: The Lodi Transmission Project is designed to interconnect the City's electric
system with Western's transmission system in the vicinity of White Slough.
Prior to actual interconnection, the City must reserve transmission capacity
on Western's system. Execution of the attached contract by the parties, will reserve 16 megawatts of capacity, the
maximum amount currently available, for the City of Lodi Transmission Project.
Since Western does not have sufficient firm transmission capacity to grant the City's original request for 26
megawatts, the Department will be investigating the merits of filing a second application for 10 megawatts of non-firm
Western transmission at a later date.
FUNDING: Not applicable ($1,300 Processing Fee previously paid)
Alan N. Vallow
Electric Utility Director
PREPARED BY: Jack Stone, Manager, Business Planning and Marketing
Attachment
ANV/JSAst
C: City Attorney
APPROVED:
H. Dixon Flynn -
J
Sierra Nevada Region
City of Lodi
Contract No. 99 -SNR -00206
Service Agreement For Long -Term
Firm Point -To -Point Transmission Service
1.0 -This Service Agreement, dated as of , is
entered into by and between the Sierra Nevada Region of Western Area Power
Administration (Transmission Provider) and the City of Lodi Electric Utility
Department (Transmission Customer). The Transmission Provider may revise
charges or losses for Firm Point -to -Point Transmission Service provided under
this Service Agreement pursuant to applicable Federal Laws, regulations, and
policies, upon written notice to the Transmission Customer.
2.0 The Transmission Customer has been determined by the Transmission Provider
to have a Completed Application for Firm Point -To -Point Transmission Service
under the Tariff.
3.0 The Transmission Customer has provided to the Transmission Provider a
nonrefundable Application processing,fee in accordance with the provisions of
Section 17.3 of the Tariff.
4.0 Service under this agreement shall commence on the later of (1) the requested
Service Commencement Date, or (2) the date on which construction of any
Direct Assignment Facilities and/or Network Upgrades are completed, or (3) such
other date as is mutually agreed. Service under this agreement shall terminate
on May 31, 2006.
5.0 The Transmission Provider agrees to provide and the Transmission Customer
agrees to take and pay for Firm Point -To -Point Transmission Service in
accordance with the provisions of Part 11 of the Tariff, and this Service
Agreement.
6.0 Any notice or request made to or by either Party regarding this Service
Agreement shall be made to the representative of the other Parry as indicated
below:
Transmission Provider:
Fred LeBlanc
Power System Operations Manager
Western Area Power Administration
114 Parkshore Drive
Folsom, CA 95630-4710
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Sierra Nevada Region
City of Lodi
Contract No. 99 -SNR -00206
Transmission Customer:
Electric Utility Director
City of Lodi
Electric Department
1331 South Ham Lane
Lodi, CA 95242
7.0 The Tariff and the "Specifications For Long -Term Firm Point -To -Point
Transmission Service" as presently constituted or as they may be revised or
superseded are incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed
by their respective authorized officials.
WESTERN AREA POWER ADMINISTRATION
By:
Title: Power System Ooerations Manager
Address: 114 Parkshore Drive
Folsom, CA 95630-4710
Date:
CITY OF LODI, ELECTRIC UTILITY DEPARTMENT
By:
Title:
Address:
Date:
Attachments:
Open Access Transmission Service Tariff
Schedule of Rate for Firm Transmission Service (CV-FT3)
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Approved as to form
4eMtorney
Sierra Nevada Region
City of Lodi
Contract No. 99 -SNR -00206
Specifications For Long -Term Rrm'Point-To-Point
Transmission Service
For purposes of this Service Agreement, the Transmission Provider's Transmission
System consists of the facilities of the Sierra Nevada Region as described in Attachment K
of the Tariff.
1.0 Term of Transaction: June 1, 2001, through May 31, 2006
Start Date: June 1, 2001, 0000 hours
Termination Date: May 31, 2006, 2400 hours
2.0 Description of capacity and energy to be transmitted by Transmission Provider
including the electric Control Area in which the transaction originates:
Sixteen (16) megawatts (MW) of firm capacity and associated energy originating
within the California Independent System Operator (ISO) Control Area
3.0 Point of Receipt: 230 -kV bus at Western's Elverta Substation
Delivering Party: Northern California Power Agency
Capacity Reservation: 16 MW
4.0 Point of Delivery: 230 -kV bus at substation to be constructed on the Western's
Hurley/Tracy No. 1 230 -kV Line near Lodi, CA
Receiving Party: City of Lodi
Capacity Reservation: 16 MW
5.0 The Maximum amount of capacity and energy to be transmitted (Reserved
Capacity): 16 MW
6.0 Designation of parties subject to reciprocal service obligation: Not applicable
7.0 Name(s) of the Control Area from which capacity and energy will be delivered to the
Transmission Provider for Transmission Service: California ISO
Name of the Control Area to which capacity and energy will be delivered by the
Transmission Provider: California ISO
Name of any Intervening Systems providing transmission service: Not applicable
8.0 Service under this Service Agreement may be subject to some combination of the
charges detailed below. The appropriate charges for individual transactions will be
determined in accordance with the terms and conditions of the Tariff.
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City of Lodi
Contract No. 99 -SNR -00206
8.1 Transmission Charge: See Section 13.0 herein
8.2 System Impact and/or Facilities Study Charge(s): Not applicable
8.3 Direct Assignment Facilities Charge: To be specified in Interconnection
Agreement
8.4 Ancillary Services Charges: See Section 13.0 herein
8.5 Redispatch Charges: Not applicable
8.6 Network Upgrade Charges: Not applicable
9.0 Power Factor: The Transmission Customer will be required to maintain a power
factor between 95 percent lagging and 95 percent leading for all deliveries of
capacity and energy to and from the Transmission Provider's Transmission System.
10.0 Transmission Losses:
10.1 Loss Factors:
10.1.1 If, based on operating experience and technical studies,
theTransmission Provider determines that the transmission loss factor
on the Transmission Provider's Transmission System differs from the
loss factor set forth in this Service Agreement, the Transmission
Provider will notify the Transmission Customer of the revised loss factor
pursuant to Section 1.0 of this Service Agreement.
10. 1.2 Transmission Provider Transmission Loss Factor:
10.1.2.1 Central Vallev Proiect Transmission Loss Factor: Central
Valley Project (CVP) transmission losses shall be one and
six -tenths percent (1.6%) of the energy scheduled and
transmitted from a 230 -kV point of receipt to a 230 -kV point of
delivery on the CVP Transmission System.
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Sierra Nevada Region
City of Lodi
Contract No. 99 -SNR -00206
10.1.2.2 CVP Loss Adiustment Factors: For receipt or delivery at any
point on the CVP Transmission System which is other than
230 -kV, the appropriate losses will be applied by the
Transmission Provider's dispatchers, at the time of the
request, to the amount of power transmitted over the CVP
Transmission System.
10.2 Accounting for Losses: Upon agreement with the Transmission Provider's
dispatchers, the Transmission Customer may use one of the following three
options to account for losses when scheduling transmission service:
10.2.1 Loss Return Schedule: For Power scheduled under this Service
Agreement, the Transmission Customer shall also provide to the
Transmission Provider a return schedule of losses calculated as the product
of the amount of Power scheduled to the Point of Receipt on the CVP times
the applicable loss factor shown in this Section 10. Schedules for the loss
return energy shall be as agreed to between the Transmission Customer's
and the Transmission Provider's dispatchers.
10.2.2 Delivery Reduced for Losses: For Power scheduled under this Service
Agreement, the Transmission Provider will deliver to the Transmission
Customer at the Point of Delivery on the CVP Transmission System the
amount of Power scheduled by the Transmission Customer at the Point of
Receipt less losses, which are calculated as the product of the amount of
Power scheduled to the Point of Receipt on the CVP Transmission System
times the applicable loss factor shown in this Section 10.
10.2.3 Delivery Including Losses: The Transmission Provider will supply the
losses associated with the transmission service, which is calculated as the
product of the amount of power scheduled to the Point of Receipt times the
applicable loss factor shown in this Section 10, and charge the Transmission
Customer for such losses, and the Transmission Customer shall pay the
Transmission Provider for such losses at the applicable firm rate for energy as
set forth in the Schedule of Rates for Commercial Firm Power Service, or its
successor. If the Transmission Provider does not have power available to
supply losses, upon agreement of the Transmission Provider and the
Transmission Customer, the Transmission Provider may purchase power to
provide losses to supply to the Transmission Customer, and the Transmission
Customer will pay the Transmission Provider for the cost of such power.
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Sierra Nevada Region
City of Lodi
Contract No. 99 -SNR -00206
11.0 Ancillary Services:
11.1 Provided by Transmission Provider:
11.1.1 Scheduling, System Control, and Dispatch Service in accordance with
Schedule 1 of the Tariff
11.1.2 Reactive Supply and Voltage Control from Generation Sources Service
in accordance with Schedule 2 of the Tariff
11.2 Provided by either the Transmission Customer or the Control Area operator:
11.2.1 Regulation and Frequency Response Service in accordance with
Schedule 3 of the Tariff
11.2.2 Energy Imbalance Service in accordance with Schedule 4 of the Tariff
11.2.3 Operating Reserve — Spinning Reserve Service in accordance with
Schedule 5 of Operating the Tariff
11.2.4 Operating Reserve — Supplemental Reserve Service in accordance
with Schedule 6 of the Tariff
12.0 Net Billing and Bill Crediting Option: The Parties have agreed not to implement Net
Billing and Bill Crediting as set forth in Attachment J of the Tariff.
13.0 Charges for Service: Charges for Firm Point -to -Point Transmission Service and
associated Ancillary Services shall be calculated in accordance with Schedule of
Rate for Firm Transmission Service (CV-FT3) attached hereto and made a part of
this Service Agreement. The rates or rate methodology used to calculate the
charges for service under the schedule was promulgated and may be modified
pursuant to applicable Federal laws, regulations, and policies.
14.0 Independent System Operator: The Parties understand that the Transmission
Provider may join an independent system operator under the Federal Regulatory
Energy Commission (FERC) jurisdiction. In the event the Transmission Provider
either joins or is required to conform to protocols of the independent system ,
operator, the Parties agree that the Transmission Provider either may (1) make any
changes necessary to conform to the terms and conditions required by FERC
approval of the independent system operator, or (2) terminate this Service
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Contract No. 99 -SNR -00206
Agreement by providing a one-year written notice to the Transmission Customer.
15.0 Service under this Service Agreement can only be provided when the following
- conditions are met:
15.1 Execution of agreements for Under -Frequency and Under -Voltage Load
Shedding and Direct Load Tripping between City of Lodi and Western
15.2 Execution of an Interconnection Agreement between City of Lodi and Western
15.3 If losses are provided in accordance with Section 10.2.3, the capacity
reservation of the point of receipt will be increased to reflect the additional
delivery
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RESOLUTION NO. 99-200
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE
SERVICE AGREEMENT WITH THE WESTERN AREA
POWER ADMINISTRATION FOR LONG-TERM FIRM POINT-
TO-POINT TRANSMISSION SERVICE (CONTRACT NO.
99 -SNR -00206)
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager
to execute Service Agreement with the Western Area Power Administration for Long -Term
Point -to -Point Transmission Service (Contract No. 99 -SNR -00206).
Dated: December 15, 1999
I hereby certify that Resolution No. 99-200 was passed and adopted by the Lodi
City Council in a regular meeting held December 15, 1999 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Land, Nakanishi and Mann (Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Pennino
E IMCHE
ity Clerk
99-200