HomeMy WebLinkAboutAgenda Report - November 15, 2000 E-19A
'� tltl
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Approval of Contract No. 00 -SNR -00241: Advancement of Funds Contract for Central Valley
Project Purchase Power and Wheeling Among the United States Department of Energy
Western Area Power Administration and Certain Central Valley Project Firm Electric Service
Contractors
MEETING DATE: November 15, 2000
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize the City Manager to execute the above
contract.
BACKGROUND INFORMATION: The Western Area Power Administration (Western) is an important element of
the City of Lodi's electric power resource portfolio.
Advancing funds to Western for its purchased power and wheeling requirements assists Western in meeting its
contractual obligations to their suppliers and customers (such as the City of Lodi). The maximum advance amount
payable to Western in any month is the previous year's maximum monthly payment. All payments made under this
contract arrangement are credited against the following month's Western power bill. The City of Lodi has participated
in similar programs with Western in the past.
FUNDING: Not Applicable
n N. a low
Electric Utility Director
PREPARED BY: Jack Stone, Manager, Business Planning and Marketing
ANV/JSlist
C: City Attomey
APPROVED:
Dixon Flynn - City Manager
Contract 00 -SNR -00327
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE
BASE RESOURCE
WITH
CITY OF LODI
Contract 00 -SNR -00327
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE
BASE RESOURCE
WITH
CITY OF LODI
Section Table of Contents Page
1.
PREAMBLE..........................................................................................................1
2.
EXPLANATORY RECITALS................................................................................ 2
3.
AGREEMENT.......................................................................................................2
4.
TERMINATION OF AMENDMENT FOR RIGHT TO PURCHASE AFTER 2004.. 2
5.
EFFECTIVE DATE AND TERM OF CONTRACT ................................................. 3
6.
DEFINITION OF TERMS...................................................................................... 3
7.
BASE RESOURCE ESTIMATES AND AVAILABILITY FORECAST .................... 6
8.
ELECTRIC SERVICE FURNISHED BY WESTERN ............................................. 8
9.
DELIVERY ARRANGEMENTS..........................................................................
10
10.
SCHEDULING PROCEDURES AND PROTOCOLS ..........................................
11
11.
EXCHANGE PROGRAM....................................................................................
11
12.
INDEPENDENT SYSTEM OPERATOR OR REGIONAL TRANSMISSION
ORGANIZATION................................................................................................
12
13.
WESTERN RATES.............................................................................................
13
14.
INTEGRATED RESOURCE PLAN.....................................................................
13
15.
ADJUSTMENT OF BASE RESOURCE PERCENTAGE ....................................
13
16.
2015 RESOURCE POOL...................................................................................
15
17.
METERING AND POWER MEASUREMENT RESPONSIBILITIES ...................
15
18.
CHANGES IN ORGANIZATIONAL STATUS .....................................................
15
19.
BUSINESS PROTOCOLS..................................................................................
17
20.
ENFORCEABILITY.............................................................................................17
21.
GENERAL POWER CONTRACT PROVISIONS ................................................
18
22.
APPENDIX MADE PART OF CONTRACT.........................................................
18
23.
EXHIBITS MADE PART OF CONTRACT..........................................................
18
Contract 00 -SNR -00327
SIGNATURE CLAUSE
RESOLUTION/CERTIFICATE
SCHEDULE OF RATES
GENERAL POWER CONTRACT PROVISIONS
EXHIBIT A — BASE RESOURCE PERCENTAGE AND POINT(S) OF DELIVERY
EXHIBIT B — EXCHANGE PROGRAM
EXHIBIT C — SCHEDULING PROCEDURES AND PROTOCOLS
EXHIBIT D — REGULATION AND RESERVES
APPENDIX A — GREEN BOOK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Contract 00 -SNR -00327
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR ELECTRIC SERVICE
BASE RESOURCE
WITH
CITY OF LODI
1. PREAMBLE: This Contract is made this day of ,
2000, pursuant to the Acts of Congress approved June 17, 1902, (32 Stat. 388);
August 26, 1937, (50 Stat. 844); August 4, 1939, (53 Stat. 1187); and August 4, 1977,
(91 Stat. 565); and Acts amendatory or supplementary to the foregoing Acts; between
the UNITED STATES OF AMERICA (United States), acting by and through the
Administrator, Western Area Power Administration, Department of Energy, hereinafter
called Western, represented by the officer executing this Contract, or a duly appointed
successor, hereinafter called the Contracting Officer; and CITY OF LODI, a municipal
corporation, organized and existing under the laws of the State of California, hereinafter
called the Contractor or Lodi, its successors and assigns; each sometimes hereinafter
individually called the Party, and both sometimes hereinafter collectively called the
Parties.
ui
Contract 00 -SNR -00327
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
2. EXPLANATORY RECITALS:
2.1 Western markets the surplus generation from, and operates a high-voltage
transmission system as a part of, the Central Valley Project (CVP).
2.2 Western and the U.S. Department of the Interior, Bureau of Reclamation
(Reclamation), have agreed to work together to efficiently serve Project Use and
preference loads.
2.3 On June 25, 1999, Western's final 2004 Power Marketing Plan (Marketing
Plan) was published in the Federal Register (64 FR 34417). The Marketing Plan
sets forth how Western's Sierra Nevada Region will market the power generated
from the CVP and Washoe Project.
2.4 Western has an existing purchase power contract to supplement CVP and
Washoe Project generation.
2.5 Western is willing to provide and Lodi desires to purchase a percentage of
the Base Resource consistent with the Marketing Plan.
2.6 Under the Marketing Plan, Western requires that all Western power be
scheduled in accordance with the applicable control area operator requirements.
3. AGREEMENT:
The Parties agree to the terms and conditions set forth herein.
4. TERMINATION OF AMENDMENT FOR RIGHT TO PURCHASE AFTER 2004:
Amendment 2 to Contract 92 -SAO -20056, between Lodi and Western shall terminate
upon the effective date of this Contract.
Contract 00 -SNR -00327
2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
5. EFFECTIVE DATE AND TERM OF CONTRACT:
5.1 This Contract shall become effective on the date of execution and shall
remain in effect until midnight of December 31, 2024, subject to prior termination
as otherwise provided for herein.
5.2 The date of initial service under this Contract is January 1, 2005.
6. DEFINITION OF TERMS:
As used herein, the following terms whether singular or plural, or used with or without
initial capitalization, shall have the following meanings:
6.1 "Base Resource" means CVP and Washoe Project power output and any
purchases made under the Enron Contract, as determined by Western to be
available for marketing, after (1) meeting the requirements of Project Use and
First Preference Customers, and (2) any other adjustments required for
maintenance, regulation, reserves, transformation losses, and ancillary services.
6.2 "Base Resource Operating Capability" means that portion of the Maximum
Operating Capability that Western determines to be available to Customers in
any hour.
6.3 "Capacity" means the instantaneous electrical capability of a generator,
transformer, transmission circuit, or other equipment.
6.4 "Central Valley Project' means the multipurpose Federal water and power
project extending from the Cascade Range in northern California to the plains
along the Kern River, south of the City of Bakersfield.
Contract 00 -SNR -00327 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6.5 "Custom Product" means a combination of products and services,
excluding provisions for load growth, which may be made available by Western
per Customer request, using the Customer's Base Resource and supplemental
purchases made by Western.
6.6 "Customer" means an entity that is qualified under Reclamation law to
receive Western Power and has a Base Resource Contract with Western.
6.7 "Enron Contract" means Contract 87 -SAO -30002, as amended, which
provides for Western to purchase power from Enron Power Marketing, Inc., to
supplement CVP and Washoe Project generation. The Enron Contract
terminates December 31, 2014.
6.8 "Energy" means the actual electrical output of a generator over a specified
period of time; electric energy is usually measured in kilowatthours or
megawatthou rs.
6.9 "First Preference Customer" means a Customer wholly located in Trinity,
Calaveras, or Tuolumne Counties, California, as specified under the Trinity River
Division Act (69 Stat. 719) and the New Melones provisions of the Flood Control
Act of 1962 (76 Stat. 1173, 1191-1192).
6.10 "FERC" means the Federal Energy Regulatory Commission or its
successor.
6.11 "Hourly Base Resource Schedule" means that portion of the Base
Resource Operating Capability that Western declares as the final scheduled
Base Resource energy for Lodi for each hour of the operating day.
Contract 00 -SNR -00327
n
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6.12 "ISO" means the California Independent System Operator or its
successor.
6.13 "NERC" means the North American Electric Reliability Council or its
successor.
6.14 "Marketing Plan" means Western's final 2004 Power Marketing Plan for
the Sierra Nevada Region.
6.15 "Maximum Operating Capability" means the maximum electrical capability
from CVP generation and the Enron Contract available to produce energy and/or
provide ancillary services in any one or more hours.
6.16 "Minimum Base Resource" means the amount of Base Resource energy
generated each hour as a result of CVP minimum water release plus purchases
under the Enron Contract.
6.17 "Operating Reserves" means the combination of spinning and non -
spinning reserves required to meet WSCC, NERC, and the control area
operator's requirements for reliable operation of the power system.
6.18 "Primary Marketing Area" means the area which generally encompasses
northern and central California extending from the Cascade Range to the
Tehachapi Mountains, and west -central Nevada.
6.19 "Power" means electric capacity and energy.
Contract 00 -SNR -00327
5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6.20 "Project Use" means the power used to operate CVP or Washoe Project
facilities in accordance with authorized purposes and pursuant to Reclamation
law.
6.21 "RTO" means regional transmission organization, which is an organization
that meets the minimum characteristics and performs the minimum functions
specified in FERC Order 2000, as that order may be amended or superseded.
6.22 "Regulation" means the service provided by generating units equipped
and operating with automatic generation control which will enable such units to
respond to direct control signals in an upward or downward direction to match, on
a real time basis, demand and resources, consistent with WSCC, NERC, and the
control area operator's criteria.
6.23 "Scheduling Coordinator" means an entity that is responsible for providing
hourly load and resource schedules to the control area operator, in accordance
with a FERC -approved tariff.
6.24 "Washoe Project" means the Federal water project located in the
Lahontan Basin in west -central Nevada and east -central California, as described
in the Marketing Plan.
6.25 "WSCC" means the Western Systems Coordinating Council or its
successor.
7. BASE RESOURCE ESTIMATES AND AVAILABILITY FORECAST:
7.1 Appendix A describes the availability of the Base Resource in terms of
estimated energy and capacity production. Appendix A should be used for long -
Contract 00 -SNR -00327
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
term planning purposes only. It should not be considered representative of
actual operating conditions.
7.2 Beginning in 2004, on or before April 30th of each year, Western will
provide to Lodi a forecast of the availability of the Base Resource for the
applicable twelve-month period. The forecast will provide the following
information concerning the Base Resource:
7.2.1 A declaration of the anticipated water year type;
7.2.2 Estimates of Base Resource Operating Capability and energy, for
the period April 1St through September 30th of the current year, given the
Enron Contract, actual reservoir levels, snow pack, and estimated runoff
as of April 1St;
7.2.3 Estimates of the Base Resource Operating Capability and energy,
for the period October 1 St of the current year through March 31St of the
following year, based on historic weather patterns, projected weather
patterns, and existing conditions;
7.2.4 Maximum Operating Capability of the CVP for each month;
7.2.5 Purchases under the Enron Contract and generation from the CVP
and Washoe Project for each month;
7.2.6 Energy required for estimated Project Use loads, First Preference
Customers' loads, and any ancillary service requirements for each month.
The forecast will also include the estimated amount of Base Resource
energy not available due to scheduled maintenance.
Contract 00 -SNR -00327
7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
7.3 By the end of each month, Western will provide to Lodi a monthly Base
Resource forecast that will contain the amounts of Base Resource Operating
Capability and energy estimated to be available for each month on a rolling
twelve-month basis, based on 90, 50, and 10 percent exceedence levels. The
monthly forecast will contain the following information:
7.3.1 Maximum Operating Capability of the CVP for each month;
7.3.2 Energy required for estimated Project Use loads, First Preference
Customers' loads, and any ancillary service requirements. The forecast
will also include the estimated amount of Base Resource energy not
available due to scheduled maintenance.
7.4 By Friday of each week, Western will provide to Lodi a weekly Base
Resource forecast that will contain estimated amounts of Base Resource
Operating Capability and energy to be available for the next week based on the
Enron Contact and anticipated CVP operations. The weekly forecast will set
forth the energy required for estimated Project Use loads, First Preference
Customers' loads, and any ancillary services requirements. The forecast will
also include the estimated amount of Base Resource energy not available due to
scheduled maintenance.
7.5 Western shall make all reasonable efforts within its control to ensure that
the forecasted Base Resource will be available.
8. ELECTRIC SERVICE FURNISHED BY WESTERN:
8.1 Lodi will be entitled to receive a percentage of the Base Resource as set
forth in Exhibit A, attached hereto and made a part hereof.
Contract 00 -SNR -00327
E:3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
8.2 The estimated amount of energy available to Lodi during any given time
period shall be determined by multiplying its Base Resource percentage by the
total amount of Base Resource energy available during that period.
8.3 The minimum amount of energy Lodi will be required to schedule for each
hour shall be determined by multiplying its Base Resource percentage by the
Minimum Base Resource, unless otherwise agreed to by Western. However, if
Lodi does not have sufficient load to take its percentage of the Minimum Base
Resource, any excess energy shall be made available to Western for the hourly
exchange program as described later in this Contract under Section 11 and
Exhibit B.
8.4 The maximum amount of energy Lodi may schedule in any hour shall be
determined by multiplying its Base Resource percentage by the Base Resource
Operating Capability. However, Lodi may schedule energy in excess of this
maximum, if approved by Western, to accommodate purchases or exchanges
from the seasonal or hourly exchange program.
8.5 Lodi will be entitled to the benefit of available regulation and operating
reserves from the CVP in proportion to its Base Resource percentage. The
method in which the benefits of regulation and operating reserves will be
provided will be determined prior to the date of initial service and set forth in
Exhibit D attached hereto.
8.6 Western's obligation to provide Lodi's Base Resource is limited to the
actual CVP generation and imports under the Enron Contract available on a real-
time basis. Western shall have no obligation to replace any Base Resource that
is unavailable due to scheduled maintenance, system emergencies, forced
Contract 00 -SNR -00327
N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
outages, or other constraints. Any costs incurred by either Party as a result of
deviations between actual and scheduled Base Resource energy shall be the
responsibility of Lodi. Western will notify Lodi as soon as reasonably practicable
of any situation that will impact the availability of the Base Resource, and will
modify schedules accordingly, on a pro -rata basis.
8.7 Due to the variable nature of the Base Resource, Western may provide a
Custom Product upon Customer request. Any Custom Product will be the
subject of a separate contractual arrangement.
9. DELIVERY ARRANGEMENTS:
9.1 Western will make Lodi's Base Resource available at the generator bus or
such other point(s) as the Parties may mutually agree, as specified in Exhibit A.
If requested by Lodi, Western will deliver that portion of Lodi's Base Resource
energy from CVP generation that is directly connected to Western -owned
transmission facilities, to Lodi's facilities that are directly connected to Western -
owned transmission facilities. The rates and terms of this service shall be in
accordance with Western's then -current open access transmission tariff.
9.2 Lodi must provide written notification to Western by July 1, 2004,
demonstrating that it has arranged for delivery of its Base Resource energy to its
load. Such notification shall include both transmission and distribution level
arrangements, as applicable. Western shall have no obligation to make Base
Resource available to Lodi if delivery arrangements are not in effect. However,
Lodi shall not be relieved of its obligation to pay its percentage share of the Base
Resource during the time in which delivery arrangements are not in effect.
Contract 00 -SNR -00327 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
10. SCHEDULING PROCEDURES AND PROTOCOLS:
10.1 All energy furnished by Western to Lodi will be provided on a scheduled
basis. Lodi agrees to abide by the FERC -approved scheduling procedures and
protocols, as set forth in Exhibit C herein. The Parties recognize that the
scheduling procedures and protocols may require modification from time -to -time
to reflect updated operating procedures that may become applicable to the
Parties. In such event, the Parties shall mutually agree to make the appropriate
modifications to Exhibit C.
10.2 In the event that Lodi does not abide by the protocols and procedures
made effective by FERC and applicable to Western, and Western incurs costs as
a result, Lodi agrees to pay all such costs.
11. EXCHANGE PROGRAM:
11.1 Western will establish and manage an exchange program to allow all
Customers to fully and efficiently use their Base Resource percentage. The
exchange program is a mechanism to:
11.1.1 Make available to Western, for provision to other Customers, any
Base Resource energy a Customer cannot use on a pre -scheduled basis
due to insufficient load;
11.1.2 Help mitigate the costs incurred by a Customer for the power it is
obligated to pay for, but may not be able to use.
11.2 The exchange program will consist of a seasonal exchange program and
an hourly exchange program.
11.2.1 Under the seasonal exchange program, Lodi may elect to make
available to Western that portion of its Base Resource percentage that it is
Contract 00 -SNR -00327
11
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
unable to use due to insufficient load. Lodi, through Western, will be able
to exchange its unusable Base Resource percentage with other
Customers. Any Customer may submit a request to Western to exchange
or purchase energy through the seasonal exchange program.
11.2.2 Under the hourly exchange program, all Base Resource energy in
excess of a Customer's load will be retained by Western and offered by
Western for sale to other Customers. Any Customer may submit a
request to Western to purchase energy that is made available to the
hourly exchange program.
11.3 The exchange program procedures are set forth in Exhibit B, attached
hereto, and such procedures shall apply to all Customers that participate in the
exchange program.
11.4 Exchanges of the Base Resource between Lodi and others, outside of the
Western -managed exchange program, or other Western -managed program, is
prohibited.
12. INDEPENDENT SYSTEM OPERATOR OR REGIONAL TRANSMISSION
ORGANIZATION:
The Parties understand that Western may join the ISO or an RTO. In the event
Western either joins or is required to conform to the protocols of an ISO or RTO, the
Parties shall mutually agree to make any protocol changes to Exhibit C to this Contract
to conform to the terms and conditions required by an ISO or RTO and made effective
by FERC. In the event that Lodi does not abide by the protocols made effective by
FERC and applicable to Western, and Western incurs costs as a result, Lodi agrees to
pay all such costs.
Contract 00 -SNR -00327
12
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
13. WESTERN RATES:
13.1 The Base Resource will be provided on a take -or -pay basis. Lodi will be
obligated to pay its Base Resource percentage share of Western's costs,
whether or not it uses its full Base Resource percentage.
13.2 Lodi shall pay for the electric service furnished hereunder in accordance
with the rates, charges, and conditions set forth in the CVP schedule of rates
applicable to the Base Resource, effective January 1, 2005, or any superseding
rate schedule.
14. INTEGRATED RESOURCE PLAN:
In accordance with the Energy Policy Act of 1992, Lodi is required to meet the
requirements of Western's Energy Planning and Management Program (EPAMP). To
fulfill the requirements of EPAMP, Lodi must develop and submit an integrated resource
plan or alternative report, as applicable. Specific EPAMP requirements are set forth in
the Federal Register at (64 FR 62604) and may be found on Western's website.
Failure to comply with Western's EPAMP requirements may result in penalties as
specified therein. Lodi understands that Western may re-evaluate its EPAMP
requirements and change them from time -to -time as appropriate. Such changes will be
subject to a public process and publication in the Federal Register.
15. ADJUSTMENT OF BASE RESOURCE PERCENTAGE:
15.1 Prior to the date of initial service, Western may adjust Lodi's Base
Resource percentage, as set forth in Exhibit A herein, if Western determines that
Lodi's extension contract rate of delivery is greater than its actual usage, as
specified in the Marketing Plan.
JIJ
Contract 00 -SNR -00327
13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
15.2 After the date of initial service, Western may adjust Lodi's Base Resource
percentage under any of the following conditions:
15.2.1 Lodi sells energy associated with its Base Resource percentage
to another entity for resale by that entity;
15.2.2 Lodi uses the energy associated with its Base Resource
percentage to serve loads outside of the Sierra Nevada Region's Primary
Marketing Area;
15.2.3 Lodi's annual energy associated with its Base Resource
percentage, is ten percent greater than its actual annual energy usage.
15.3 If Western determines that Lodi has met any of the conditions in
Section 15.2 above, Western will take the following steps:
15.3.1 Notify Lodi of the nature of the concern;
15.3.2 Analyze Lodi's usage of the energy associated with its Base
Resource percentage and determine if an adjustment is necessary on a
case-by-case basis, with due consideration of any circumstance that may
have temporarily altered Lodi's energy usage;
15.3.3 Provide a 90 -day written notice of any adjustment, if an
adjustment is deemed necessary; and
15.3.4 Reduce or rescind Lodi's Base Resource percentage permanently
on the effective date specified in the notice.
Contract 00 -SNR -00327 14
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
16. 2015 RESOURCE POOL:
Western will reduce Lodi's Base Resource percentage to establish the 2015 Resource
Pool. Western will recalculate the percentages for all Customers pursuant to the
Marketing Plan. The new Base Resource percentage will be set forth in a revised
Exhibit A, effective January 1, 2015.
17. METERING AND POWER MEASUREMENT RESPONSIBILITIES:
Lodi shall be responsible for electric power metering equipment requirements and
power measurement data associated with the use of Western power under this Contract
as follows:
17.1 Unless previously furnished and installed by Western, Lodi shall furnish,
install, operate, maintain, and replace, meters and associated metering
equipment as required by the appropriate jurisdictional authority for deliveries of
Western power scheduled to each delivery point on the Western grid, the ISO
controlled grid, a utility distribution company grid, or other electrical system as
may be applicable.
17.2 Lodi shall measure power deliveries and provide certified settlement
quality metering data to Western as requested. It is generally contemplated that
Western will require this data on a monthly basis.
18. CHANGES IN ORGANIZATIONAL STATUS:
18.1 If Lodi changes its organizational status or otherwise changes its
obligation to supply electric power to preference loads, Western reserves the
right to adjust Western's power sales obligations under this Contract, as Western
deems appropriate. Changes in organizational status include but are not limited
to:
18.1.1 Merging with another entity;
Contract 00 -SNR -00327
15
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
18.1.2 Acquiring or being acquired by another entity;
18.1.3 Creating a new entity from an existing one;
18.1.4 Joining or withdrawing from a member -based power supply
organization; or
18.1.5 Adding or losing members from its membership organization.
18.2 For the purposes of this Section 18, a member is any preference entity
that is included in a membership, which has the responsibility of supplying power
to the end-use consumer or customer. Memberships include but are not limited
to:
18.2.1 Municipality;
18.2.2 Cooperative;
18.2.3 Joint powers authority; or
18.2.4 Governmental agency.
18.3 For purposes of this Section 18, participation in a State promulgated direct
access program shall not be deemed to be a change in a Customer's
organizational status or its obligation to supply electric power to preference
loads.
18.4 Prior to making an organizational change, Lodi may request an opinion
from Western as to whether Lodi's proposed organizational change will result in
Contract 00 -SNR -00327
16
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
an adjustment of Lodi's Base Resource percentage under this Section 18. Lodi
shall provide Western with all relevant documents and information regarding the
proposed organizational change. Based on the documents and information
furnished, Western will provide Lodi with an opinion.
18.5 In addition to the above, if the change in organizational status results in a
proposed transfer of the Contract, or any portion thereof, Section 37 of the
General Power Contract Provisions (GPCP), "Transfer of Interest in Contract,"
generally requires the Customer to obtain prior written approval from Western's
Administrator. Organizational changes that typically propose transfer of the
Contract, or a portion of the Contract, and require prior written approval from
Western include but are not limited to:
18.5.1 Merging with another entity;
18.5.2 Acquiring or being acquired by another entity;
18.5.3 Joining an entity; and
18.5.4 Creating a new entity.
19. BUSINESS PROTOCOLS:
Western reserves the right to make process or procedural improvements in the efficient
and effective administration of this Base Resource Contract as needed.
20. ENFORCEABILITY:
It is not the intent of the Parties that this Contract confer any rights on third parties to
enforce the provisions of this Contract except as required by law or express provision in
Contract 00 -SNR -00327
17
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
this Contract. Except as provided in this Section, this Contract may be enforced, or
caused to be enforced, only by Western or Lodi, or their successors or assigns.
21. GENERAL POWER CONTRACT PROVISIONS:
The GPCP, effective July 10, 1998, attached hereto, are hereby made a part of this
Contract, the same as if they had been expressly set forth herein; Provided, That, in the
event of a conflict between the GPCP and the provisions in the body of this Contract,
the Contract shall control. The usage of the term "Contractor" in the GPCP shall mean
Lodi. The usage of the term "firm" in Articles 17 and 18 of the GPCP shall be deemed
to be replaced with the words "Base Resource."
22. APPENDIX MADE PART OF CONTRACT:
A description of the CVP and its estimated output under certain hydrological conditions
are provided in Appendix A attached hereto. The information provided in Appendix A is
for planning purposes only. Western may revise Appendix A to reflect operational
changes, as necessary. Western will notify Lodi of any revisions to Appendix A as soon
as practicable.
23. EXHIBITS MADE PART OF CONTRACT:
Exhibit A (Base Resource Percentage and Point(s) of Delivery), Exhibit B (Exchange
Program), Exhibit C (Scheduling Procedures and Protocols), and Exhibit D (Regulation
and Reserves) existing under this Contract may vary during the term hereof. Each of
said exhibits shall become a part of this Contract during the term fixed by its provisions.
Exhibits A, B, C, and D are attached hereto, and each shall be in force and effect in
accordance with its terms until respectively superseded by a subsequent exhibit, as
allowed by the terms of each exhibit.
Contract 00 -SNR -00327
18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
IN WITNESS WHEROF, the Parties have caused this Contract to be executed the day
and year first above written.
(Attest)
By:
Title: rTTY CLERK
APPROVED AS TO FORM:
By:
Title: CITY ATTORNEY
Contract 00 -SNR -00327
WESTERN AREA POWER ADMINISTRATION
By:
Title: Power Marketing Manager
Address: 114 Parkshore Drive
Folsom, CA 95630-4710
CITY OF LODI
By:
Title: CITY MANAGER
Address: PO Box 3006
LODI CA 95241-1910
19
City of Lodi
Resolution No./CERTIFICATE
Contract 00 -SNR -00327
City of Lodi
Contract 00 -SNR -00327
Exhibit A
EXHIBIT A
(Base Resource Percentage and Point(s) of Delivery)
1. This Exhibit A, to be effective under and as part of Contract 00 -SNR -00327
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit A or termination of the Contract.
2. On the effective date of this Exhibit A, Lodi's percentage of the Base Resource is
0.34349%.
3. Lodi's Base Resource percentage may be adjusted by Western as specified in
the Contract.
4. Lodi's Base Resource percentage will be adjusted effective January 1, 2015, in
accordance with the Marketing Plan, to establish the 2015 Resource Pool for new
power allocations.
5. The point(s) of delivery for Lodi's Base Resource shall be
6. This Exhibit A shall be replaced by Western as necessary in accordance with
Sections 9, 15, 16, and 18 of the Contract.
Exhibit A to Contract 00 -SNR -00327 Page 1 of 1
City of Lodi
Contract 00 -SNR -00327
Exhibit B
EXHIBIT B
(Exchange Program)
1. This Exhibit B, to be effective under and as a part of Contract 00 -SNR -00327,
(Contract) shall become effective upon execution of the Contract; and, shall remain in
effect until superseded by another Exhibit B or termination of the Contract.
2. The Parties acknowledge that the exchange program procedures will change
between the date the Contract is executed and the date of initial service hereunder.
The Parties agree to work together collaboratively to develop exchange program
arrangements which will maximize the benefits of CVP.
3. Prior to the date of initial service, Western shall replace this Exhibit B with
Exhibit B, Revision 1. At such time as Western promulgates Revision 1 to this
Exhibit B, Lodi shall have a one-time option of (1) executing Revision 1 to this Exhibit B
within the time specified in the transmittal letter, or (2) terminating the Contract upon 30 -
days advance written notice. In the event Lodi fails to take either action within the
specified time frame, Exhibit B, Revision 1, shall be deemed to become effective.
4. Western shall make subsequent revisions to Exhibit B, after consultation with its
Customers.
5. Western will manage an exchange program to allow for Customers to fully and
efficiently use their Base Resource percentage energy. The program consists of the
following two elements:
5.1 Seasonal exchange: a mechanism that allows a Customer with seasonal
load variation to make that portion of its Base Resource percentage that it is
unable to use due to insufficient load, available to the seasonal exchange
program. In coordination with Western, Lodi will be able to exchange its
unusable Base Resource percentage, through Western, with other Customers.
5.2 Hourly exchange: a mechanism that provides for Western to retain all
Base Resource energy in excess of a Customer's load on an hourly basis.
6. General Principles:
6.1 Customers must take their percentage of the Base Resource.
6.2 If a Customer's total load in any hour, as established in its day ahead
schedule, is less than its Hourly Base Resource Schedule, then the energy in
excess of the schedule is made available to the Western exchange program.
6.3 Western shall establish an estimated pool energy "rate" for the purpose of
pool transaction settlements.
Exhibit B to Contract 00 -SNR -00327 Page 1 of 2
City of Lodi
Contract 00 -SNR -00327
Exhibit B
6.4 Customers with total load greater than their Base Resource percentage in
any hour may request pool energy from Western, if available.
6.5 Exchange program suppliers shall have first priority for purchases from the
pool, during hours when they are not depositing energy, up to the amount of
energy previously deposited.
6.6 Western will allocate pool energy to Customers that have requested pool
energy.
6.7 Pool takers are obligated to pay at the pool energy "rate."
6.8 Pool providers are credited funds at the pool energy "rate."
6.9 Western takes all remaining pool energy not taken by Customers and
provides it into the open market(s).
6.10 Revenues collected by Western from the open market(s) will first be
credited to the pool providers up to the pool energy "rate."
6.11 Any remaining revenue will be used to offset Western's overall costs.
Exhibit B to Contract 00 -SNR -00327 Page 2 of 2
City of Lodi
Contract 00 -SNR -00327
Exhibit C
EXHIBIT C
(Scheduling Procedures and Protocols)
1. This Exhibit C, to be effective under and as a part of Contract 00 -SNR -00327
(Contract), shall become effective upon execution of the Contract; and, shall remain in
effect until superseded by another Exhibit C or termination of the Contract.
2. Both Parties recognize that these scheduling procedures and protocols may
require modification from time -to -time. In such event, Western shall make the
appropriate modifications to this Exhibit C as mutually agreed to by the Parties. For
more information on changes to scheduling protocols and procedures, refer to
Sections 10 and 12 of this Contract.
3. Designation of Scheduling Coordinator (SC): Lodi shall notify Western of its
designated Scheduling Coordinator not less than 60 days prior to the date of initial
service. In the event that Lodi's Scheduling Coordinator arrangement changes, Lodi
shall notify Western in writing, not less than 30 days prior to the change, unless a
shorter notification period is agreed to by Western.
4. Scheduling Procedures:
4.1 Western will determine the Maximum Operating Capability, total
generation, and ramping rates for the Base Resource.
4.2 Not less than 24 hours prior to the active day, Western will notify Lodi of
its share of the Base Resource Operating Capability, Minimum Base Resource
and total energy available for that day. Based on these criteria, Lodi shall notify
Western of its preferred schedule for that day. Western will use a compilation of
all Customers' preferred schedules as a basis for determination of the optimal
generation schedule. Western will then notify Lodi of its Hourly Base Resource
Schedule for that day.
4.3 For weekdays, Lodi shall provide Western with a copy of its day ahead
load and resource schedule, including the information listed in Section 4.5 below,
by 9:00 a.m. of the business day prior to the day the schedule will be
implemented, or at least two (2) hours prior to the submission time required by
the ISO or control area operator, whichever is earlier. For weekends and
holidays, as defined by the WSCC, Lodi shall provide Western with its day -ahead
schedule by 9:00 a.m. of the business day, at least two days prior to the day the
schedule will be implemented, or at least two (2) hours prior to the submission
time required by the ISO or control area operator, whichever is earlier. The day -
ahead schedule shall include megawatt values for each hourly period of each
day and a megawatt -hour total for each day. The day -ahead schedule amounts
shall be to the nearest tenth of a megawatt, with the day -ahead schedule of
Western power not to exceed Lodi's percentage of the Base Resource Operating
Exhibit C to Contract 00 -SNR -00327 Page 1 of 2
City of Lodi
Contract 00 -SNR -00327
Exhibit C
Capability for any hour, as it may be adjusted to accommodate exchanges or
purchases under the Western exchange program.
4.4 In the event of curtailments or emergencies, Western shall notify Lodi as
soon as practicable so it may adjust its schedule in a timely manner.
4.5 The following information shall be included in the day ahead schedule:
4.5.1 Western power by hour;
4.5.2 Other power by hour [If Western is Lodi's SC];
4.5.3 Lodi's forecasted system load by hour [If Western is Lodi's SC].
4.6 Lodi's unscheduled Western power in any hour is not available to Lodi as
an operating reserve or to meet any ancillary service requirements of the ISO or
the control area operator for Lodi's load.
4.7 Schedules shall be transmitted by a communication link established
between Western and Lodi or as otherwise agreed to by the Parties. The
communication link shall be provided and paid for by Lodi. The data format shall
be acceptable to both Parties and shall be in conformance with established
WSCC protocol in effect at the time.
5. Schedule Changes:
5.1 Lodi may not adjust its Western power schedule after the final hour ahead
schedules have been accepted by the ISO or control area operator as applicable.
5.2 Daily schedules shall be confirmed by Lodi and Western's dispatchers at
the end of the active day, at which time Lodi and Western's dispatchers will
attempt to resolve any scheduling conflicts.
5.3 No after -the -fact schedule change by either Party shall be allowed.
Exhibit C to Contract 00 -SNR -00327 Page 2 of 2
City of Lodi
Contract 00 -SNR -0327
Exhibit D
EXHIBIT D
(Regulation and Reserves)
1. This Exhibit D to be effective under and as a part of Contract 00 -SNR -00327
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit D or termination of the Contract.
2. The Parties acknowledge that the protocols and procedures of the ISO relating to
regulation and operating reserves will change between the date the Contract is
executed and the date of initial service hereunder. The Parties agree to work together
collaboratively to develop arrangements which will maximize the benefits of operating
reserves and regulation capabilities of the CVP. The method in which Western provides
these services to Lodi may be physical, financial, or both.
3. Prior to the date of initial service, Western shall replace this Exhibit D with
Exhibit D, Revision 1. At such time as Western promulgates Revision 1 to this
Exhibit D, Lodi shall have a one-time option of (1) executing Revision 1 to this Exhibit D
within the time specified in the transmittal letter, or (2) terminating the Contract upon 30 -
days advance written notice. In the event Lodi fails to take either action within the
specified time frame, Exhibit D, Revision 1, shall be deemed to become effective.
4. Western shall make subsequent revisions to Exhibit D, after consultation with its
Customers.
Exhibit D to Contract 00 -SNR -00327 Page 1 of 1
RESOLUTION NO. 2000-196
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING CONTRACT
NO. 00 -SNR -00241, BETWEEN THE U. S. DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINSTRATION AND CERTAIN CENTRAL
VALLEY PROJECT, FIRM ELECTRIC SERVICE CONTRACTORS, WHICH
ADVANCES FUNDS FOR CENTRAL VALLEY PROJECT PURCHASE
POWER AND WHEELING COSTS, AND FURTHER AUTHORIZING THE
CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE
CITY OF LODI
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does
hereby approve Contract No. 00 -SNR -00241, between the U. S. Department of Energy
Western Area Power Administration and Certain Valley Project, Firm Electric Service
Contractors, which advances funds for Central Valley Project Purchase Power and Wheeling
costs; and
BE IT FURTHER RESOLVED, that the City Manager is authorized and directed to
execute the contract on behalf of the City of Lodi.
Dated: November 15, 2000
-----------------------------------------------------------------------
-----------------------------------------------------------------------
I hereby certify that Resolution No. 2000-196 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held November 15, 2000, by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Land, Nakanishi, Pennino and
Mayor Mann
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2000-196