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HomeMy WebLinkAbout84-21 i I i 2 RESOLUTION NO. 84-21 3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH j ' APPROVING AMENDATORY AGREEMENT FOR COGENERATION AND i 4 RENEWABLE RESOURSE PROJECT. S i 6 WHEREAS, the City has a percentage share of Geysers Geothermal I i 7 Project 2 and a Hydro Project at Lake Mendocino; and $ WHEREAS, these are renewable resources and Western Area Power i 9 Administration has through their marketing plan made an allocation 10 of 0.4 MW for Shell 2 Project and 2.5 MW for Lake Mendocino Project; 11 and 12 WHEREAS, this will provide lower cost energy to the City; 13 NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City 14 of Ukiah authorize the Mayor and Clerk to execute the amendatory i 15 agreement with Western Area Power Administration and the City of Ukiah 16 and authorize City Manager to sign Exhibit B which modifys the contract 17 rate of delivery. 18 PASSED AND ADOPTED this 7th day of Sentem ber 1983 by 19 the following roll call vote; i 20 AYES: Councilmembers Feibusch, Dickens, Hickey, Myers, Kelley 21 NOES: !done 22 ABSENT: 11one 23 - MAYOR 24 1 25 ATTEST: I i 26 27 _ f CITY CLERK 28 i 1 r I Contract No. DE-MS65-82WP59017 EXHIBIT B (CONTRACT RATE OF DELIVERY) 1. This revised Exhibit B, made this day of , 19 , to be effective under and as a part oTContract No. DE-MS65-8 WP5 , dale3 February 24, 1982, (hereinafter called the Contract) , shall become effective on the first day of , 19 , and shall remain in effect until superseded by another Exhibit rovided, That this Exhibit B or any superseding Exhibit B shall be terminated by the termination of the Contract. Contract Rate of Delivery (CRD) 2. (a) On and after the effective date of this Exhibit B the CRD for firm power shall be 3,959 kilowatts of Westlands Withdrawable power and 2,017 kilowatts of the 26 megawatts of firm power and 2,900 kilowatts pursuant to Amendment No.. 2, to this agreement which provides for the City's renewable resource allocation, for a total CRD of 8,876 kilowatts. (b) The City's renewable resource allocation will be terminated on the date of termination of Amendment No. 2. 3. The original allocation referred to in Article 10(c) of this contract shall be 3,983 kilowatts of Westlands Withdrawable power and 2,017 kilowatts of the 26 megawatts of firm power for a total of 6,000 kilowatts. THE UNITED STATES OF AMERICA By Title Area Manager Address Western Area Power Administration 2800 Cottage Way Sacramento, CA 95825 CITY OF UKIAH By --�= --- --'. Title City Manager Address City of Ukiah 203 S. School Ukiah, CA 95482 cDD '- ,-P - 21993 CITY OF UKIAH UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Central Valley Project AMENDATORY AGREEMENT WITH THE CITY OF UKIAH (Electric Service Arrangement for Cogeneration and Renewable Resource Projects - NCPA 2) Amendment No. 2 to Contract No. DE-""IS65-8en-WP-J7V17 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Central Valley Project AMENDATORY AGREEMENT WITH THE CITY OF UKIAH (Electric Service Arrangement for Cogeneration and Renewable Resource Projects - NCPA 2) Section Title page 1 Preamble 1 2-9 Explanatory Recitals 1-3 10 Term of Agreement 3-4 11 Definition and Explanation of Terms 4-7 12 Renewable Resource Allocation 7 13 Energy Deliveries by the City 7-11 14 Energy Scheduling Procedures 11-12 15 Energy Accounting 12-14 16 Payment 14-15 17 Other Agreements 15-16 Signature Clause Resolution customers of the Central Valley Project (CVP) ; and 3. WHEREAS, the City operates an electric utility system, including transmission and generation, and is a preference customer of the United States under the provisions of Contract No. DE-MS65-82WP- 59017, effective March 1, 1982, which as such agreement may be amended or replaced shall hereinafter be called the Original Agreement; and 4. WHEREAS, the United States has entered into Contract No. 14- 06-200-2948A, dated July 31, 1967, as amended, supplemented or superseded, with Pacific Gas and Electric Company, (PGandE) , which provides for, among other things, firming of CVP resources and resources purchased by the United States to supplement CVP resources; and 5. WHEREAS, CVP power and energy will be delivered to the City over the transmission system of PGandE under Contract No. DE-MS65- 83WP59055, dated August 2, 1983, as amended, supplemented, or superseded; and 6. WHEREAS, in settlement of the lawsuit entitled The City of Santa Clara vs. Duncan et. al . , the United States and other parties to the lawsuit entered into a memorandum of understanding dated February 8, 1980, hereinafter called the Santa Clara Settlement, which provides for PGandE to support an increase of 102 MW in the customer load level of the CVP, enabling the United States to market additional power and 2 b) In addition to termination provisions specified in the Original Agreement, this Amendatory Agreement may be terminated at the end of any Contract Year by the City on one year notice of termination to the United States. c) Upon termination of this Amendatory Agreement, benefits conferred upon the parties and obligations incurred hereunder shall be preserved until satisfied. DEFINITION AND EXPLANATION OF TERMS 11. a) "Contract Rate of Delivery" means the City's maximum rate of delivery of firm electric energy from the CVP pursuant to the Original Agreement and the PGandE Contract. b) "Contract Year" means the period beginning on January 1 and ending on the following December 31; the first Contract Year shall begin at 0000 hour on the first day of the first month following execution of this Amendatory Agreement and the last Contract Year shall end at 2400 hours on June 30, 1994. c) "Energy Deficit Account" means the energy account kept by the United States to record the amount of energy owed by the City to the United States under article 15 herein. 4 PGandE, which, as such contract may hereinafter be amended, supplemented or superseded, provides for transmission of power and energy from the CVP to the City. RENEWABLE RESOURCE ALLOCATION 12. a) Effective at 0000 hour on the first day of the first month following execution of this Amendatory Agreement, the Usty's Contract Rate of Delivery shall be increased by 2.9 MW. 5ucn portion of the City's Contract Rate of Delivery shall hereinafter be referred to as the City's Renewable Resource Allocation. Upon the effective date of Amendment No. 1 to the Original Agreement, rights and obligations of the parties herein with respect to 2.5 MW of the Renewable Resource Allocation shall terminate, except for benefits conferred and obligations incurred prior to such termination. b) All rights and obligations of the City and the United States with respect to the City's Renewable Resource Allocation snaii be consistent with the Original Agreement, the PGandE Contract, and the Transmission Services Contract. ENERGY DELIVERIES BY THE CITY 13. a) The City shall be obligated to sell to the United States, 7 in exchange for the Renewable Resource Allocation, an amount of energy equal to the amount of energy associated with the Renewable Resource Allocation, subject to the provisions described below. (b) Each Contract Year the City shall use its best efforts to deliver or arrange to have delivered to the United States at the Point of Receipt an amount of energy equal to the amount of energy associated with its Renewable Resource Allocation for such Contract Year. The United States shall use its best efforts to schedule energy supplied from other sources in a manner which enables it to accept energy delivered by the City hereunder. c) At any time other than off-peak hours from April 15 to June 30, the obligation of the City to deliver energy to the United States pursuant to subarticle (a) above shall , at the option of the City, be reduced to the extent the Unit.'�d States refuses delivery of such energy due to: (i ) Curtailments by PGandE of CVP power generation or purchases due to low load conditions in the PGandE service area; (ii ) Purchases of energy by the United States in amounts, which are in excess of that which the United States is able to use in its project or customer loads or store in accounts with PGandE or others; 8 f) During Contract Years when the City is unable to deliver to the United States the amount of energy specified in subarticle (a) above, as reduced pursuant to this article, and such inability is partially or wholly attributable to an unanticipated failure of the Powerplant Capability for the Contract Year to meet the Projected Powerplant Capability for such Contract Year, the City's obligation due to such failure shall be entered into the Energy Deficit Account pursuant to subarticle (h) below and article 15 hereunder. g) To the extent the City is unable to deliver or have delivered to the United States the amount of energy specified in subarticle (a) above, as reduced pursuant to this article, without affecting its capacity credit for the Powerplant under the Interconnection Agreement, the deficit in the City's obligation shall be entered into the Energy Deficit Account pursuant to subarticle (h) below and article 15. h) To the extent the City is unable to deliver or have delivered to the United States the amount of energy specified in subarticle (a) above, as reduced pursuant to this article, the deficit in the City's obligation due to such inability shall be entered into the Energy Deficit Account pursuant to Article 15. i ) (i ) Unless otherwise agreed, at the end of a Contract Year in which the City has failed to satisfy 10 a) Written .notice by the City to the United States two months in advance of each Contract Year, except for the first Contract Year, indicating the amount of energy which the City expects to make available to the United States during such Contract Year on a monthly basis and the Projected Powerplant Capability for each month of such year; b) Prescheduling by the City in advance of each month of hourly or half-hourly amounts of energy for such month; and (c) Procedures for adjustment of daily and hourly or half- hourly schedules. ENERGY ACCOUNTING 15. a) During any Contract Year, the amounts of energy which the City is unable to deliver to the United States, as provided in subarticles 13(f) , 13(g) , and 13(h) shall be entered into an Energy Deficit Account. If, during any Contract Year, the City is able to deliver to the United States an amount of energy in excess of the amount associated with its Renewable Resource Allocation for the Contract Year, the United States shall enter the excess in an Energy Surplus Account, provided that the United States shall not be obligated to accept such energy to the extent the City's obligation to deliver energy to the United States pursuant to article 13 has been met for the Contract Year. 12 f) The parties shall use their best efforts to bring the energy account balances to zero prior to termination of this Amendatory Agreement. If there is a balance in the Energy Deficit Account upon termination of this Amendatory Agreement, the City shall deliver energy in an amount sufficient to balance the account within one year, unless otherwise agreed by the parties. g) If either party fails to satisfy its respective obligations within one year after termination of this Amendatory Agreement, it shall pay an amount in dollars determined as the amount of energy owed times the payment described under subarticle 16(a) . Such payment shall include a 10 percent per annum interest penalty, unless otherwise agreed, for each 30 day period in which such obligation is not fulfilled. PAYMENT 16. a) For energy delivered to the United States at the Point of Receipt to satisfy the City's obligation hereunder, the United States shall pay the City at a rate commencing at $.035/kWh. Such rate shall be increased -at the beginning of each Contract Year by the percentage of increases in operation and maintenance costs and geothermal steam costs associated with the Powerplant which take effect during the previous Contract Year, up to $.05/kWh. If such rate, the CVP composite rate for capacity and energy, and the rate for energy from the United States ' 14 IN WITNESS WHEREOF, the parties hereto have executed this agreement. UNITED STATES OF AMERICA Department of Energy ' By Title Address Western Area Power Administration 2800 Cottage Way Sacramento, CA 95825 CITY OF UKIAH, CALIFORNIA BY Michael Kelley Title Mayor Address 203 S. School St. = - � 2 Ukiah, CA 95482 City Clerk Attest 17