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Home My WebLink About02-76 .~, . -. RESOLUTION NO. ;( - 7(:, A RESOLUTION of the city of Port Angeles approving Amendatory Agreement between the united States of America, Department of the Interior, and the City of Port Angeles, Washington, amending a Power Sales Contract between the parties as amended (Contract No. 14-03-59315). WHEREAS, the united States of America, Department of the Interior, acting by and through the Bonneville Power Administrato and the city of Port Angeles, Washington executed a Power Sales Contract, hereinafter referred to as "Power Sales Contract" on June 30, 1975, referred to as Contract No. 14-03-59315, providing for the sale and delivery of firm power and energy to the City of Port Angeles; and WHEREAS, it has become necessary to modify the provisions of Section 22 of the General Contract Provisions attached to the Power Sales Contract as set forth in the Amendatory Agreement No. a copy of which is attached to this resolution and made a part thereof by reference. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles as follows: Section 1: Amendatory Agreement No.1, a copy of which is attached to this resolution, amending the Power Sales Contract by the united States of America, Department of the Interior, and the City of Port Angeles, Washington, herein above referred to, be and the same is hereby approved. Section 2: The Mayor of the City of Port Angeles is herebl, authorized and directed to execute said Amendatory Agreement on behalf of the city of Port Angeles. il ....J it'\- . ,-~ c_, PASSED by the City Council of the City of Port Angeles and approved by its Mayor at a regular meeting of the Council held on . the:< (j ~ day of January, 1976. . C3~AY~~ Carleton B. Olson, Mayor ,. - I . ~ of ;....._":"',W..A....4....: .;- '," ... "."',,;- ATTEP"; "._:'" "\i- : ::. ..:_. -.If" ... 7J~~d.j~ Marian)2...>par~ish, City Clerk APPROVED AS T Stanley A. T~~J, ~ A:t~eY.( e e " . . Amenda tory Agreement No. 1 to Contract No. 14-03-59315 10-31-75 AHFlIDATORY AGREfl.1ENT ,', executed by the UNITED STATES OF AMERICA DEPARTMENl OF TIIE INfERIOR acting by and through the BONNEVILLE POWER AININISfRA.TOR and CIlY OF PORT AJ\1GELES, WASHINGTON This AME1\1DATORY AGREf1.1ENT, executed , 1975~ by the UNITED STATES OF ANERlCA (Govenunent), Department of the Interior, acting by and through the BONNEVILLE POlN'ER AmUNISTRATOR (Administrator), and CITY OF PORT ANGELES, WASHINGTON, (Purchaser), a municipal corporation organized a..'1d existing Wlder the laws of the State of Washington, WITNESSETH l~ the parties hereto, on June 30, 1975, executed a power sales contract (Contract No. 14-03-59315, as amended, hereinafter referred to as "PQ\ver Sales Contract") providing for the sale and deli very of finn power and energy to the Purchaser; ail.d ~HEREAS the Purchaser has requested modification of the provisions of section 22 of the General Contract Provisions attached to the Power Sales Contract; and e e . , l~REAS the Administrator is authori~ed pursuant to law to dispose of electric power and energy generated at various federal hydroelectric projects in the Pacific Northwest and to enter into related agreements; NOWt THEREFORE, the parties hereto mutually agree as follows: 1. Effective Date of Agreement. This amendatory agreement shall be effec- tive as of 2400 hours on the date of execution. 2. Amendment of Power Sales Contract. The General Contract Provisions attached to the Power Sales Contract are hereby amended as follows: (a) ~ection 2 is amended by adding the following: " (h) the words "Contract Year" means the l2-month period cOlTUTlencing each year at 2400 hours on June 30, except the last Contract Year shall end on the date of temination of this contract.' I (b) Section 22 is hereby deleted, and the following substituted therefore: "22. Insufficiency of Firm Energy and Firm Capacity. H(a) Insufficiency of Fim Energy. "(1) If the Administrat0r determines that for any Contract Year commencing July 1 he will have insufficient firm energy to supply in full (a) the Administrator's estimate of the firm energy requirements of public bodies, cooperatives, and Federal agencies in the Pacific Northwest served or to be served by the Administrator; and (b) firm corrnni tmeJ'.lts to other customers ,,,hose supply is not subj ect to , . curtailment in favor of public bodies, cooperatives, and Federal agencies, the Administrator's total obligation pursuant to all po~er sales contracts and the Hanford Exchange Agreement (Purchaser's Contracts) to supply finn energy to the Purchaser in such year and in each year during the remaining term of this contract (Energy Allocation) shall be the SlDTI of: 2 'Xi) the larger of (A) 25,000 average kilowatts of energy (219 million kilowatt-hours), or (B) the amount, for the Contract Year comnencing July 1, 1975 (Contract Year 1976), of ~le Purchascr1~ system firm energy load, less the assured energy capability of the Purchaser's resources, excluding from such assured energy e capability the energy supplied by the Administrator to the Pur- chaser's system under the Hanford Exchange Agreement and the Canadian Entitlement Exchange Agreement; provided, hm<lever, that if the Purchaser has available to it a hydroelectric resource which operated to supply a portion of its system loads in the Contract Year commencing July 1, 1974, the Purcllaser's allocation for each Contract Year commencing on or after July 1, 1983, shall be reduced by the amount, if any, by which the assured energy capability, as detennined by the Administrator, for such resource in such Contract Year exceeds the assured energy capability, as determined by the Administrator, for such resource in Contract Year 1976; It (ii) an amount of Firm Energy determined by multiplying 1881.8 average megawatts, the amount of Firm Energy determined to be available to the Administrator for each Contract Year from the Trojan Project and from Washington Public Power Supply System's I Nuclear Projects Nos. 1, 2 and 3 ("Thermal Plants"), by a fraction whose numerator is the difference beuveen the Purchaser's system firm energy load for the Contract Year prior to the effective e 3 , . , ' date of the notice of insufficiency, and for the Contract Year 1976, and whose denominator is the sum of the differences in system firm energy loads for such Contract Years for all of the Administrator's Northwest preference customers having power sales contracts with the Administrator which contain a provision e similar to,_,this provision; provided, however, that the deter- . . mination.of the Purchaser's system firm energy load for the Contract Year prior to the effective date of the notice of insuf- ficiency used in the above computation shall not exceed 103 . percent of the Purchaser's estimated system finn energy load for such'Contract Year specified in the Purchaser's estimate furnished the Administrator as of December 31, 1973; provided, further, that for applicable contract years the 1881.8 average megawatts specified above shall be either increased by the amount the Administrator determines is available to the Administrator through . additional Net Billing Agreements from other thermal projects, including Centralia and Boardman (Pebble Springs), or decreased by the amount the Administrator detennines is id thdrai'ffi from Trojan; and It (iU) an amoW1t of Firm Energy determined by subtracting the Purchaser's Canadian Entitlement energy, prior to any exchange made pursuant to section S(e) of the Canadian Entitlement Exchange Agreement, for such Contract Year beginning one year after the notice of insufficiency becomes effective, from the Purchaser's entitlement for Canadian Entitlement energy, prior to any exchange pursuant to section 5 (c) of the Canadian Entitlement E.xchange e 4' e Agreement, in the Contract Year which begins the date the notice of insufficiency becomes effective. "The Purchaser's allocation, detennined pursuant to subsection (a) (1), shall not be affected by the Purchaser's acquisition or reconstruction of electric power resources after June 30, 1976. H(2) In addition to the amounts allocated to preference customers, including the F-llrdlaser, pursuant to subparagraph (1) (i) above, the Adrndnistrat~r shall determine prior to July 1, 1978, the amount, if any, of finn energy load carrying capability available on the Federal System in the Contract Year 1976, which is available for allocation but which is not allocated to such customers pursuant to such paragraph (1) (i). The Purchaser's allocation for any Contract Year may be additionally increased by the Administrator, effective on written notice served not less than 90 days prior to such Contract Year, to reflect increases in Firm Energy that he determines can be made avail- able hereunder. At least 90 days prior to either such allocation th~. Administrator shall make available to the Purchaser, for timely comment, the criteria he intends to use to make such allocation. "(3) The Administrator shall give at least five years' prior written notice before invoking the provisions of this subsection; provided, hrnvever, that the provisions of this subsection limiting the Administrator's obligation to supply firm energy shall not be effec- tive prior to July 1, 1983. Such notice shall include the estimated allocation for each Contract Year for the Purchaser and other preference customers having contracts with provisions similar to this provision. e 5 e "(4) As soon as practicabl~ after giving notice under subpara- graph (3) above the Administrator shall offer to the Purchaser an appropriate amendment to this contract to implement the limitation on energy and to provide energy to meet all or a part of the Purchaser's unanticipated load growth. !l(b) Insufficiency of Finn Capacity. "(1) If the Administrator detennines that, for any Contract Year, he will not have sufficient capacity to supply the sum of (i) the capacity requirements, as estimated by w~e Administrator, of public bodies, cooperatives, and Federal agencies in the Pacific Northwest served or to be served by the Administrator, and (ii) capacity commit- ments to other ~ustomers whose supply is not subject to curtailment in favor of such public bodies, cooperatives, and Federal agencies, then the Administrator's total obligation pursuant to the Purchaser's Contracts to supply capacity in such Contract Year, and" in each remaining Contract Year (Purchaser's Capacity Allocation), shall be "the estimated firm capacity, as determined by the Administrator, to be supplied to the Purchaser's system under the Purchaser's Contracts and the Canadian Entitlement Exchange Agreement during such Contract Year, but not less than the capacity required to deliver the Purchaser's Energy Allocation to the Purchaser at its system load factor. "(2) In addition to the amounts of Finn Capacity specified in subparagraph (1) above, the Administrator shall increase the Purchaser's allocation of Firm Capacity for each Contract Year that this subsection is used to allocate Firm Capacity by an amount determined by subtract- ing the Purchaser's entitlement for Canadian Entitlement capacity e 6 , ' I e e .. prior to any exchange pursuant to section S(c) of the Canadian Entitle- ment Exchange Agreement in such Contract Year from the Purchaser's entitlement for Canadian Entitlement capacity prior to any exchange pursuant to section S(c) of the Canadian Entitlement Exchange Agreement in the first Contract Year that this subsection is used to allocate Finn Capacity. .... "(3) The Administrator shall give the Purchaser at least eight years' prior lvritten notice before invoking the provisions of this subsection. ~ "(4) As soon as practicable after giving notice under subpara- graph (3) above the Administrator shall offer to the Purchaser an appropriate amendment to this contract to implement the limitation on capacity and to provide capacity to meet all or a part of the Purchaser's unanticipated load growth. "(c) All final determinations and estimates to be made by the Admin- istrator lUlder this section shall be conclusive.lI IN WITNESS WHEREOF, the parties hereto have executed this amendatory agreement in several counterparts. UNITED STATES OF AMERICA Department of the Interior (SEAL) By Boruleville Power Administrator (SEAL) CITY OF PORT ANGELES, WASHINGTON C~d~-~, &~J~I Ti tIe /1 \.i-U-I/' L. L (j ATTEST: 4J // 0/ c., '1?/~i...J e..~ -~ By ~ '--"'<.-L#--a./ Title ~-z:./ #' 7