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HomeMy WebLinkAboutAgenda Report - March 5, 2003 E-08CITY OF LODI ff"IFT AGENDA TITLE: Adopt a resolution authorizing the City Manager to execute the City of Lodi Letter of Agreement 03 -SNR -00553 (LOA) between Sierra Nevada Customer Service Rogion (SNR) of the Western Area Power Administration (Western) and the City of Lodi for SNR to provide Shasta Rewinds and daily excess capacity and associated energy to Lodi (EUD) MEETING DATE: March 5, 2003 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council authorize the City Manager to execute the United States Department of Energy Western Area Power Administration (Western) Letter Agreement 03 -SNR -00553 with the City of Lodi. BACKGROUND INFORMATION: This Letter Agreement continues the current relationship with Western providing cost effective power through the rewinding of turbines for a Western hydro project and excess capacity available on the Western System. The Cost of this power is substantially below market and other NCPA resources, below $30/mwh, FUNDING: No net impact'. Part of NCPA Budget Alan N. Vallow Electric Utility Director PREPARED BY: Boris Prokop, Power supply and Rates Manager ANWBPAst C: City Attorney APPROVED-. HDixon Flynn - C Mr. Alan N. Vallow Electric Utility Director C4 of Lodi 1331 South Ham Lane Lodi, CA 95242 Dear Mr. llow: . . . . . . . . . . . . . . . . . . . . associated energy to Lodi. Department of Energy Westem AFaa Power Administration 114 Parkshore Drive Folsom, California 95630-4710 11111 111 "ll I R 11 . . . . . .. . . . . . . . . SIN 2,13 On Thursday of eay»-d. by3:00. SNR will notify Lodi #f:the amount »a2zassociated energy available for the following (Monday2through Sud 22 Dail Excess Capacity (DEC): ia a.»*»: - DECdetermine»:- �w «� ,maw:. i >:� :a. ,. :�. ©» «: w «»# «»?r><�� � necessary,curtailments:will first _pplytDEC, thereto REC. SREG and DEC and asso ;asso delivered to yay»s, of»*»a designated aExhibit<Transmission » . : delivery rservice ��» ��» point #:»:»§b! . <w responsibility of Lodi. M Subject to Sections .:z :»»*: »?»»« DEC, �� . :.�,. sells. a a,� a and/or #22 w Lodi, . LodHor SR . and/or DEC based .y. va. . .on the ?<: » » 7 * a curtailsthat SNR ..� . . DEC, . . . . » » », and/or ? 2 Lodi l »:required to pay ronlyt�a .., DEC Exhibit . arnount .actually received, >? specifies ,'■r: REC and DEC provided hereunder. . .z..,.. - ..�.a� ..� , . . . . . .. . ��.c:. , » «s:#x�zx. ..x«»©v■«« : �.?«2 � 2 t *<� � a.:- «°■ -r.. x.« rg 112 SNR shall determine the amount ot Lodi's bill under this LOA to be�pald tc, power suppliers. Such amount shall be deducted from Lodi.'s.bill under this LOA - its bill under quantities.this LOA, based on scheduled or actual use I 1 .3 Any failure to pay a power supplier in the time period specified on Lodi's bill shall constitute nonpayment of a portion of Lodi's bill and shall be subject to the General Power Contract Provisions attached heretononpayment full when due. 12,1 Billing and payment for power provided pursuant to this LOA shall be in accordance with the Billing and Payment provisions (Article 13) of the General Power Contract Provisions attached hereto. Bills shall be sent to Lodi at the following address: City of :.ii; Electric Utility Accounts power1331 South Ham Lane Lodi, CA 95242 12.3 Lodi shall pay the designated -b 12.4 Lodi shall apayment period specified on its bill ke payments to the power suppliers by an electronic transfer of tunds or check, at the option of Lodi, unless otherwise agreed" and Lodi. Lodi shall send the documentation of payments sent to designated power suppliers to SNR as soon as practicable. iia Department of E no rgy File Sr 51687 Post Office Box 60000 San Francisco, CA 94160-1580 14. The Authorized Representatives, Posting, Response, and Confirmation Time Schedule; Point of Delivery; and the Rate for SREC and DEC with Associated Energy are set forth in Exhibits A, B, G, and D, respectively. Exhibits A, B, C and D are attached hereto, and each shall be in force and effect in accordance with its terms until superseded by a subsequent exhibit or termination of this LOA. 15, The General Power Contract Provisions dated July 10, 1998, attached hereto, are hereby made a part of this LOA the same as if they had been expressly set forth herein-, Lrovided, That Articly>~2»« s«» 0s allot apply. 16. Either Party may terminate this LOA upon a thirty -day written notice /vent the other Party, 9 above, if you are in agreement with the terms and conditions written your approval by signing and dating both originals of this LOA, and ret= one original to Gloria Davis (N6205). at this .. fir , leas contact J :. Haas at (916) 353-44,38, or Hiroshi Kashiwagi at (916) 353-4477. NMI Tale: c .Approved as to Farm. By: Title:— CITY ATTORNEY Paver Marketing Manager s CITY OF L1 By: Title® CITE UANAGE Address; 221 W. PINE STREET Date: LORI Off. 95240 N City of Lodi Exhibit A to AMA EXHIBI'r Alt (Authoriz�d -Representatives) 1 This Exhibit A, made to be effective under and as a part of Letter of Agreement 03 -$NR -00553 (LOA)�, shall remain in effect until superseded by another Exhibit A or upon termination of this LOA. 2SNR's authorized representative for scheduling transactions shall be its presched.ulers, who can be contacted by telephone at 216)353: or »26)3 4092, by fax at (916) 353-2210, or by electronic mail at presched0w2pa.gov. For real- time transactions, SNR's dispatchers are the authorized representatives, Lodi can contact SN:R's dispatchers at (916) 353-2200, mail at kovinm@ncpa.com. City. of Lodi Exhibit EXHIBIT S «a®\2227 . Response, . . �•. »° ��©°:»<°ft«l ::. Exhibit Smade to b . effective under:and as�? part # Letter of Agreement : - . »:. » .: until ...:.r :� . «f#«,»»_w .. .«b<»-: upon termination of this LOA, following2, The : outlines the normal sequenc f events, provided t : >:f I■II City O Exhibit C This Exhibit C, made. to be effective under and as a part of Letter of Agreemen) 03 -.SNR -00553 (LOA), shall remain in effect until superseded ` upon termination: of this LOA. 2. SNR, under terms and conditions stipulated A, will furnish excess capacity and associated energy to Lodi at the Tracy 230 -kV Substation at a delivery voltage of 230 M I Delivery of excess capacity and associated energy to the point indicated will be City t: Exhibit . D to :.I= s I This Exhibit D, made to k be effective under and as a part " r �upon termination of this LOA. production2.1 The estimated Pacific Gas & Electric Company's full thermal capacityrate (at the time of the excess sale) No, 2 transactions, currently 20.16 mills per kWh; 2.2 An administrative adder of 0.5 mills per kWh, 23 The Central Valley Project nonfirm transmission rate of 1.0 rills per kWh; and 2.4 Any additional purchase power or other costs incurred by SNA due to. decisions made to the benefit of the excess capacity will Assess this charge after the fact, once all costs are determined. 3SNR may change the rate for SREC and DEC with associated energy by giving NOW, THEREFORE, BE 11' RESOLVED that the Lodi City Council does hereby approve Letter Agreement No. 03 -SNR -00553 between the Sierra Nevada Customer Service Region of the Western Area Power Administration and the City of Lodi, which provides Shasta Rewinds and daily excess capacity and associated energy to Lodi; and BE IT FURTHER RESOLVED that the Lodi City Council hereby authorizes the City Manager to execute said Letter Agreement on behalf of the City of Lodi. Dated- March 5, 2003 I hereby certify that Resolution No. 2003-32 was passed and adopted by the Lodi City Council in a regular meeting held March 5, 2003 by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hansen, Howard, Land, and Mayor Hitchcock NOES: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk