Loading...
HomeMy WebLinkAbout93-65 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 28 RESOLUTION NO. 93-65 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE EXECUTION OF AN EXCHANGE AGREEMENT BETWEEN THE CITY OF UKIAH AND THE PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE Whereas, the City of Ukiah's electric resource plan shows that it would be economical to seasonally exchange capacity and energy with a Pacific Northwest Utility; and Whereas, the City of Ukiah has entered into a Capacity and Energy Exchange Agreement with Seattle City Light that operates a winter peaking electric utility system; and Whereas, the City of Ukiah could increase the economic benefits to its electric customers by acquiring additional transmission entitlement to the California-Oregon Transmission Project; and Whereas, Plumas-Sierra is willing to participate in a seasonal energy exchange with the City of Ukiah in exchange for their transmission entitlement of the California-Oregon Transmission Project. NOW, THEREFORE, BE IT RESOLVED that the Mayor of the City of Ukiah, Fred Schneiter, is hereby authorized to execute the Exchange Agreement between the City of Ukiah and the Plumas-Sierra Rural Electric Cooperative. PASSED AND ADOPTED this 21st day of April, 1993, by the following roll call vote: AYES: Councilmembers Mastin, Malone, Wattenburger, Shoemaker, and Mayor Schneiter. NOES: None. ABSENT: None. ^ E~/ , Odth~) M~/Kag, City/Clerk R:4/Res Plumas EXCHANGE AGREEMENT BETWEEN THE CITY OF UKIAH AND THE PLUMAS-SIERRA RUR~tL ET,~.CTRIC COOPERATI~-E PROVIDING FOR ANEXCHANGE OF ENTIT?.~MENT TO T~ CALIFORNIA-OREGON TRANSMISSION PROJECT FOR SURPLUS POWER This Exchange Agreement is made and entered into as of the day of , 1993 by and between the City of Ukiah (Ukiah) and the Plumas-Sierra Rural Electric Cooperative (Plumas-Sierra) . Whereas, Ukiah and Plumas-Sierra are participants in the COTP through their membership in the TANC; and Whereas, Ukiah has entitlement to 0.211 percent (currently estimated to be 2.6 MW) of TANC's entitlement in the COTP of which Ukiah plans to use 1.5 MW to import its share of the Washington Water Power Project purchase through the term of the agreement for that purchase; and Whereas, Ukiah desires entitlement to additional COTP transmission capacity in order to maximize the benefit of its participation in the Seattle City Light Third Phase Agreement; and Whereas, Ukiah expects to continue having capacity and energy that is surplus to its winter load; and Whereas, Plumas-Sierra has entitlement to 0.161 percent (currently estimated to be 2.0 MW) of TANC's entitlement in the COTP, which is in excess of its long term projected need for power in summer months; and Whereas, Plumas-Sierra desires access to capacity and energy at competitive prices in the winter months. Now, therefore, the parties agree as follows: 1. Whenever used in this Agreement, the following terms shall have the following meanings. The singular of any term shall include the plural and the plural shall include the singular. 1.1 Agreement: This agreement between Plumas-Sierra and Ukiah for the exchange of Plumas-Sierra's entitlement to the COTP for Ukiah's surplus power. 1.2 Binding Period: The period determined by the NCPA Commission as dfined in Section 1.2 of August 13, 1992 version of the draft Northern California Power Agency Pooling Agreement, as it now reads or as it may be revised or as it may read in the executed Pooling Agreement or any amendment to that Agreement. 1.3 COTP: The California-Oregon Transmission Project. 1.4 COTP Cost: All fixed and variable costs incurred by Plumas-Sierra pursuant to the Transmission Agency of Northern California Project Agreement No. 3 for the California-Oregon Transmission Project among the members of TANC. 1.5 Parties: Ukiah or Plumas-Sierra, collectively Parties. 1.6 TANC: Transmission Agency of Northern California. 2. This Agreement shall become effective upon the first day of the month in which capacity is first made available to NCPA by Seattle City Light pursuant to the Capacity and Energy Exchange Agreement between NCPA and Seattle City Light Capacity and Energy Exchange Third Phase Agreement, whichever date is earlier. 3. Plumas-Sierra hereby agrees to provide to Ukiah its 2.0 MW entitlement to the COTP transmission capacity. Commencing on the effective date of this Agreement, Ukiah will pay Plumas-Sierra for its COTP Costs, except as that obligation is modified pursuant to paragraph 7. 4. In consideration thereof, by March 1 of each year beginning in 2002, if this Agreement is still in effect, Ukiah will offer Plumas-Sierra 1.8 MW of firm capacity and associated energy at a monthly capacity factor not to exceed fifty (50) percent. Power shall be delivered by Ukiah during the winter period only, i.e., from November 1 through the last day of the following February, and shall be delivered at "backbone output". Such firm capacity and associated energy will be first made available in the Binding Period covering the year 2004. 5. Plumas-Sierra shall reimburse Ukiah for the cost of associated energy delivered pursuant to this Agreement. Plumas-Sierra shall not be obligated to reimburse Ukiah for the cost of any firm capacity or transmission service required to make the associated energy deliveries pursuant to this Agreement. 6. By May 15 of each even year beginning in 2002, Ptumas-Sierra shall notify Ukiah whether it will take all, part, or none of the firm capacity offered by Ukiah for the subsequent Binding Period. To the extent that Plumas-Sierra elects not to take, or fails to notify Ukiah that it will take, the firm capacity offered during the subsequent Binding Period, Ukiah's obligation to provide such firm capacity during the sebsequent Binding Period shall be reduced accordingly. 7. Ukiah's obligation to reimburse Plumas-$ierra's COTP Costs during a given Binding Period shall be reduced to the extent that Plumas-Sierra takes the 1.8 MW of firm capacity offered by Ukiah during such Binding Period. The formula for calculating the amount of COTP Cost reimbursement shall be as follows: 100 percent of the COTP Cost times one minus the ratio of the amount of firm capacity elected by Plumas-Sierra to 1.8 MW. 8. Payments made in consideration of services provided under this Agreement shall be paid by each party within 20 days of receipt of a bill for such services from the other Party. 9. In witness whereof, the Parties hereto have executed this Agreement by signature of the duly authorized representatives shown below. CITY OF UKIAH Ti~ Date PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE By. Title Date