HomeMy WebLinkAbout84-29 RESOLUTION NO. 84-29
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
1 AUTHORIZING THE TEMPORARY TRANSFER OF PROJECT NO. 2
POWER FROM OTHER NCPA MEMBERS TO THE CITY OF UKIAH j
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WHEREAS, the Cities of Roseville, Gridley, and the Plumas Sierra Rural
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` Electric Cooperative have determined that they have excess power that they
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want to temporarily transfer from the Shell No. 2 Project; and
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WHEREAS, the Shell Member Agreement allows for such transfers, and that
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such transfers must first be offered to other paticipating members; and
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$ WHEREAS, the NCPA Commission has approved the attached Agreement at
their regular meeting September 22, 1983 by Resolution No. 83-79; and
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WHEREAS, the City staff has determined that the transfer can be used in
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the City system; and
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WHEREAS, provisions are made in the contract that the City will not be j
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required to purchase any of this energy that is in excess of its needs, and
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that the cost of such power will not exceed the City's annual adjusted
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project costs for power from Project No. 2.
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NOW, THEREFORE, BE IT RESOLVED that the Mayor and Clerk be authorized to
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execute the attached Agreement in behalf of the City of Ukiah
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PASSED AND ADOPTED this 19th day of October 1983 by the
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following roll call vote:
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AYES:
20 Councilmembers Feibusch, Dickens , Hickey, Myers, Feibusch
'NOES: none
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ABSENT: None f
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24 Mayor
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25 ATTEST:
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'City Clerk
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9/23/83 #8548C
AGREEMENT FOR TEMPORARY
TRANSFER OF PROJECT NO. 2 POWER
THIS AGREEMENT, dated as of September 1, 1983, by and
among (A) NORTHERN CALIFORNIA POWER AGENCY, a joint powers
agency of the State of California, herein called "NCPA",
(B) the CITIES OF GRIDLEY AND ROSEVILLE, CALIFORNIA, munici-
pal corporations members of NCPA, and PLUMAS-SIERRA RURAL
ELECTRIC COOPERATIVE, a California nonprofit corporation,
an associate member of NCPA, herein called "Transferors" ,
and (C) the CITIES OF ALAMEDA, HEALDSBURG, LODI, LOMPOC,
SANTA CLARA AND UKIAH, municipal corporations and members
of NCPA, herein called "Transferees", .
WITNESSETH, that
WHEREAS, Transferors and Transferees are Purchasing
Participating Members under the "Amended and Restated Member
Agreement for Construction, Operation and Financing of NCPA
Geothermal Generating Unit #2 Project" made as of January 1,
1980, as amended and supplemented, herein called the "Shell
Member Agreement", in accordance with their respective Par-
ticipation Percentages from the Project provided for in
such Agreement, herein called Project No. 2; and
WHEREAS, the parties hereto, except the City of Santa
Clara, are also parties to that Interconnection Agreement
with Pacific Gas and Electric Company approved by NCPA
Resolution No. 83-47, and the City of Santa Clara is nego-
tiating with PG&E for an interconnection agreement, which -
agreements are herein referred to as the Interconnection
Agreements, and
WHEREAS, the Interconnection Agreements will provide
the necessary services to the parties hereto to make the
power from the Project firm and dependable as delivered
from the output of PG&E's backbone system, which power is
herein called Project Power; and
WHEREAS, Transferors wish to transfer all of their
respective Participating Percentages under the Shell Member
Agreement to Transferees, under the terms and conditions,
and for the period, hereinafter set out, the Transferees
desire to acquire additional Project Power for the use of
the customers of their electric systems; and
WHEREAS, the Shell Member Agreement authorizes NCPA,
upon request, to arrange such transfers of Project Power
among Purchasing Participating Members, and others, as Pur-
chasing Participating Members may request in accordance
with the Shell Member Agreement, and the transfers provided
for herein have been so arranged; and
WHEREAS, such transfers are authorized by the Shell
Member Agreement, and are to be made pursuant thereto;
NOW THEREFORE IT IS AGREED AS FOLLOWS:
Section 1. Transferors hereby transfer, assign, and
sell to Transferees their right to all of the Project Power
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to which Transferors are entitled under the Shell Member
Agreement, to each Transferee in the proportion shown in
Exhibit "A" of this agreement for the term of this agree-
ment, and Transferors and NCPA shall deliver such Project
Power to Transferees accordingly at the delivery points
provided in the Interconnection Agreements. Such transfer
shall not effect the voting power of Transferors under the
Shell Member agreement.
Section 2. (a) NCPA shall, on behalf of the Trans-
ferors, bill each Transferee monthly for NCPA's estimate of
Project Cost of the Project Power transferred, as provided
for in Section 6 (f) of the Shell Member Agreement and in
this agreement, and shall transmit the amount of such
billings that represents bond debt service and associated
reserves, when received, to the Transferors.
(b) At the end of each NCPA fiscal year after the
effective date of this agreement NCPA shall make an Annual
Adjustment to the billed amounts to reflect after the fact
actual Project Cost for the fiscal year, or portion thereof
when power was delivered, just ended. Such adjusted Project
Cost shall then be compared with the cost of power from
another source as provided in Section 6 (g) of the Member
Agreement, and the price for the Project Power transferred
fixed at the lesser of the actual project cost under Sec-
tion 6 (f) or the cost of another source under Section 6 (g) .
For purposes hereof the cost of power from another source
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is further defined as the calculated cost of capacity and
energy of equal usefulness and firmness available as partial
requirements under the Interconnection Agreements, for the
same period, and measured at the same point of delivery, as
the transferred power, or the cost of firm power of at least
equal capacity and energy from another source, for a similar
term, and measured at the same delivery point, whichever is
less. NCPA shall then bill the Transferors or Transferees,
as the case may be, for the account of the other, for the
overpayment or underpayment determined by the Annual Adjust-
ment, and pay or credit the payment received from the
billing to the account of those who are entitled to it.
(c) For the purpose of computing the estimated and
actual Project Cost to be paid for Project Power under Sec-
tion 6 (f) of the Shell Member Agreement, NCPA shall include
in the cost of such power to the Transferors the following
Project Costs:
(1) debt service, including required reserves
(2) geothermal steam
(3) operation and maintenance
(4) capacity reserves
(5) spinning reserves
(6) transmission to backbone output
(7) emergency power
(8) maintenance power
(9) short-term firm power
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(10) dispatch services
(11) administrative expenses
(12) transmission losses to backbone output.
(13) If this agreement is extended, the amount by
which actual Project Cost exceeded the cost
of power from another source during the pre-
ceding years as determined pursuant to sub-
division (b) above.
(d) The cost of power from another source referred to
in subdivision (b) of this section shall be determined at
the monthly load factor at which Project Power was deliv-
ered, including the use of reserves, maintenance power,
short term firm, etc.
Section 3. Nothing in this agreement shall impair the
obligations of any of the Transferors to any of the NCPA's
lenders for the project constructed under the Shell Member
Agreement, and such Transferors shall make payments for
bond debt service and associated reserves directly to the
Trustee for the bondholder.
Section 4. The effective date of this agreement shall
be the first day that Project No. 2 is in commercial opera-
tion under the Interconnection Agreement.
Section 5. This agreement shall terminate at 2400
hours December 31, 1983, except that the provisions of
Section 2 shall be complied with thereafter. *The parties
expect prior to that date to amend, supplement, or replace
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this agreement to provide long-term layoffs by transferors
to transferees. -
No such termination shall relieve any Transferor or
Transferee of the obligation of section 6 of the Shell
Member Agreement.
Section 6. The transfer herein provided shall be sub-
ject to all the provisions of the Shell Member Agreement,
and particularly sections 5 and 6 thereof, and shall be
administered by NCPA in accordance with the Interconnection
Agreements. Nothing herein shall compel any Transferee to
purchase any energy which is surplus to its needs.
Section 7. No further transfer of any rights trans-
ferred herein shall be made by any Transferee which will
cause violation of the terms of Section 6 (d) of the Shell
Member Agreement.
Section 8. This agreement shall be binding on the City
of Santa Clara only if and when it obtains an Interconnec-
tion Agreement with PGandE Co. and gives notice thereof at
least ten business days before the first day of any calendar
month, whereupon the Transferor' s layoffs will be appor-
tioned to it in the same manner as other Transferees for
such following month and during the term of this agreement.
Section 9. This agreement is not intended to be, and
shall not be construed as, a precedent for transfer of
rights to power from other NCPA projects.
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IN WITNESS WHEREOF each Transferor and Transferee, and
NCPA, have executed this agreement as of the year and date
first above noted.
NORTHER CALIFORNIA POWER AGENCY CITY OF HEALDSBURG
By By
and and
CITY OF ALAMEDA CITY OF LODI
By By
and and
CITY OF GRIDLEY CITY OF LOMPOC
By By
and and
CITY OF ROSEVILLE CITY OF SANTA CLARA
By By
and and
CITY OF UKIAH PLUMAS-SIERRA RURAL ELECTRIC
r COOPERATIVE
By
and,�j
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