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HomeMy WebLinkAbout35-78 .. ~i \.. \'I ,,; RESOWTION NO. 55 - 78 A RESOLUTION of the City Council of the City of Port Angeles, Washington authorizing the execution of a Power Sales Contract for the purchase and resale of electric power and energy between the City of Port Angeles and ITI Rayonier, Incorporated. WHEREAS, THE United States G:Jverrurent, D=par1:Jrent of Energy, acting by and through the Bonneville Power Administrator and the City of Port Angeles, Washington executed a Power Sales Contract No. 14-03-59315 on June 30, 1975, which provides for the sale of firm power by the Administrator to the City; and WHEREAS, I'IT Rayonier prior to July 1, 1975 was purchasing electric power and energy from both the City and the Administrator; and WHEREAS, I'IT Rayonier at Port Angeles became solely the customer of the City on July 1,1975; and WHEREAS, the City has been selling and TIT Rayonier has been purchasing electric power and energy for operation of its Port Angeles mill without a fonnal agreement, and the parties desire to execute such an agreement; and WHEREAS, under the tenns of the Power Sales Contract No. 14-03-59315, between the City and Administrator, it is of mutual benefit to the City and I'IT Rayonier for TIT Rayonier to continue purchasing electric power and energy from the City; and WHEREAS, the region lS studying alternative methods of assuring the Pacific Northwest adequate electric ]:Ower supply and the City expects to execute a new Pcwer Sales Contract with the Administrator which will allow the City to continue providing electric power and energy to I'IT Rayonier. . . -, .~ NOW 'IHEREFDRE, BE IT RESOLVED by the City COlUlCil of the City of Port Angeles, that the City enter into the Power Sales Contract with IT!' Rayonier for the sale of electric p::lwer and energy and the Mayor and the Clerk of the City of Port Angeles are hereby authorized and directed to execute said contract on behalf of the City. PASSED by the City ColUlcil of the City of Port Angeles at a :regular meeting of the Conncil held on the 5th day of July, 1978. .... .-' -..... ..- ~. :- A'ITEST: -- ~/..;.:u tf..~ M3rian"C. Parrish, City Clerk APPROVED 7iJ'. t1,( ~ C. T. Walrath, City Attorney p~~ .!, l- ,! ._<~ _~-1t- - ........ .-~, ...... .- >... -- ..., ~- ill June 15, 1978 This POWER SALES CONTRACT, executed , 19___ by the CITY OF PORT ANGELES (City), a municipal corporation organized and existing under the laws of the State of Washington, and ITT RAYONIER INCORPORATED (Company), a corporation organized and existing un~er the laws of the State of Delaware, . WIT N E SSE T H WHEREAS the City is a municipal corporation distributing electric power and energy in the vicinity of Port Angeles, Clallam COllnty, Washington, and as such is an agency included under certain statues which require the United States of America (Government), Department of Energy, acting by and through the Bonneville Power Administrator (Administrator) to give preference and priority to public bodies and cooperatives in disposing of electric power and energy; and WHEREAS the City and Administrator, on June 30, 1975 executed a Power Sales Contract (Contract No. 14-03-59315, as amended, extended, or replaced) (Power Sales Contract) which provides for the sale of firm power hy the Administrator to the City; and WHEREAS the region is studying alternative methods of assuring the Pacific Northwest adequate electric power supply and the City expects to execute a new Power Sales Contract with the Administrator; and WHEREAS the Company and the Administrator on May 2, 1967, executed a Power Sales Contract (Contract No. 14-03-69319) which provided for the sale of electric power and energy by the Administrator to the Company; and WHEREAS the Company prior to July 1, 1975 was purchasing electric power and . energy from both the City and the Administrator; and .:,.:.--. 1 "" .--.." ..,. WHEREAS the Company at Port Angeles became solely the customer of the City on July 1, 1975; and WHEREAS the City has been selling and the Company has been purchasing electric power for operation of the Company's Port Angeles mill without a formal agreement, the parties desire to execute such an agreement; and . and WHEREAS consistent therewith the Company desires to continue to purchase electric power and energy for use at the Company's mill at Port Angeles, Washington solely from the City and the City expects to be able to furnish electric power and energy to the Company subject to the terms and conditions set forth herein; NOW THEREFORE, the parties hereto mutually agree as follows: 1. Term of Contract. This contract shall be effective at 2400 hours on . July 30, 1975, and shall continue until the earlier of 2400 hours on December 31, 1984, or the date of termination of the City's Power Sales Contract. 2. Exhibit. The City's Power Sales Contract attached hereto as Exhibiit A is incorporated herein as a part of this contract and any rights or obligations acquired by the City as a result of deliveries to the Company under the City's Power Sales Contract with the Administrator, or agreements with any other entities for the express purpose of meeting the electric power requirements of the City and Company, shall be preserved for or borne by the Company, and if any rights in addition to those preserved for the Company are earned by the City by virtue of combined City, Company, and Crown Zellerbach loads, such additional rights shall be allocated on an actual load growth basis. 3. Sale of Power and Amount Sold. Subject to other provisions of this contract and the applicable provisions of Exhibit A. the City shall make available electric power and energy to the Company at the point of delivery described in Section 5 and the Company shall purchase the same from the City at such point during each month in the term hereof. -2- ',li', -,. ;t --;-----:-~~~ _ ....rtl'_ ------ ._,,-~ ..,...; _.. -." _ .-B:..:.- ....-. __-.c. .____.........-,'...-.--.r ., ~ The City shall give the Company advance notice to the extent reasonably practicablet of any month for which the City and the Administrator estimates there is a reasonable probability that the energy available hereunder together with the ~ompany's resources will be inadequate to meet the Company's energy load in such . month. Under these circumstances the Company is obligated to reduce its load or to pay for any overrun payments or penalties applled to the City as a result of Rayonier's excess load in such month. 4. Payment for Power Sold. The Company shall pay the City for the firm power and energy delivered at the point of delivery hereunder at the rates specified in Exhibit A, plus 5.0 percent of said net sum; plus applicable state and federal taxes' or surcharges and in accordance with the terms thereof and of the general ra,te schedule provisions of Exhibit A. The Company shall have a period of six (6) months following the date of adoption of any changes in rates or charges made hereunder, in which to review such changes with the City. 5. Provisions Relating to Delivery. To the extend that electric power and energy is not interrupted or reduced by the Administrator, the City shall make electric power and energy available at the point of delivery described below at all times during the term hereof at the approximate voltage specified therefor. Amounts of electric energy, Integrated Demands therefor, and varhours delivered at such point during each month shall be determined from measurements made by meters installed at the location and in the circuit specified: PORT ANGELES POINT OF DELIVERY: Location: The point in the Government's Port Angeles substation where the 69 KV facilities are connected; Voltage: 69 KV; . Metering: In the Government's Port Angeles substation, in the 69 KV circuit over which such electric power and energy is delivered. -3- ~ ,; -~ ~ .. .... __' _0.-.......... ~._.........iII...... ....... - -- - .... 6. Load Estimates. Each year the Company shall. pursuant to guidelines established' by the Administrator. prepare and deliver to the City. a 20-year fore- cast of the Company's estimated firm capacity and energy loads. To the extent reasonably practicable. the City shall acquire resources to supPly the Company's ~ estimated load. The Company hereby agrees to compensate the' City fully for all losses incurred by the City as a direct result of the Company's load being less than forcasted and the City thereby incurs such losses because the City's resources are in excess of the' City's requirements; and the Company hereby agrees to compen- sate the City fully for all penalties incurred by the City as a direct result of the Company's load being greater than forcasted and the City thereby incurs such penalties because the City's resources are less than the City's requirements. 7. Ratification of Prior Agreement. The City delivered electric power and energy to the Company on an informal basis at the point of delivery listed in Section 5. during the period beginning at 2400 hours on June 30. 1975. The Company paid the City for such delivery. but provision for such payment was not evidenced by a formal agreement executed by the parties hereto. The parties hereto hereby ratify such delivery and payment for' such. period. IN WITNESS WHEREOF. the parties hereto have executed' this contract in several counterparts. . CITY OPPORT ANGELES. WASHINGTON ..........-- " ..- ..-'-""'..... ......" : -'"-~ I. -- :. -- ~ .... ....."" ~ tf.~~dud ~ (sEAt) ~ Title -," . lTT RAYONIER. INCORPORATED By (SEAL) Title -4-