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Home My WebLink AboutAgenda Packet 09/27/2006 ~ORTANGELES WAS H I N G TON. U. s. A. CITY COUNCIL SPECIAL MEETING I. CALL TO ORDER - SPECIAL MEETING: II. ROLL CALL: Members Present: Mayor Rogers Deputy Mayor Williams Councilmember Braun Councilmember Headrick Councilmember Munro Councilmember Petersen Councilmember Wharton Staff Present: Manager Madsen Attorney Bloor Clerk Upton G. Cutler D. McKeen T. Riepe Y. Ziomkowski ~ ,/ '" \/'" September 27, 2006 4a5. n.Yr\., I ~ Staff Present: ~ III. PLEDGE OF ALLEGIANCE: Led by: dill) 1\11~ QfY\t~D.A, ~.+?fh.Jt~Q. ^- ~ORTAN'GELES CITY COUNCIL SPECIAL MEETING Attendance Roster WAS H I N G TON. U, 5, A- DATE OF MEETING: September 27. 2006 LOCATION: City Council Chambers DATE: To: FROM: SUBJECT: ~. ,or "R"!7T'i~' y .N' 'G'" E.,'t. E.."S " ~: : 'f < "1':'''' ( ;_h ~ .... ! ..... .'.'..' .... /.m mm', ; . .. ... I ...........' ..' ..' ... . WAS H I N G TON, U. S. A. CITY COUNCIL MEMO September 27, 2006 CITY COUNCIL GLENN A. CUTLER, DIRECTOR OF PUBLIC WORKS & UTILITIES I>CA..V Service Agreement for Network Integration Transmission Service with BP A Summarv: The City's electrical transmission service agreement with the Bonneville Power Administration is expiring on September 30, 2006. The attached service agreement utilizes the City's reservation priority rights under the current Open Access Transmission Tariff (OA TT). This will give Port Angeles transmission rights over the BP A system for the next 30 years. Recommendation: Authorize the Mayor to sign the Service Agreement for Network Integration Transmission Service with the Bonneville Power Administration. Background / Analysis: At the City Council meeting on July 18, 2006, the Council approved the City's application for electric transmission service from the Bonneville Power Administration. The current agreement will expire on September 30, 2006. BPA adopted their Open Access Transmission Tariff (OATT) in 1998. This tariff defines the terms and conditions for Point-to-Point (PTP) and Network Integration Transmission (NT) services. This tariff was adopted by BP A after the Federal Energy Regulatory Commission (FERC) issued order 888 prescribing pro-forma, open access tariffs by all transmission providers to insure a level playing field for competitive power markets. This Transmission Service agreement is not a negotiated agreement, but rather implements the terms and conditions available under the tariff. The City, in its application for transmission service, exercised our Reservation Priority rights for Existing Firm Service Customers, pursuant to section 2.2 of the tariff. If this priority right should ever be removed from the tariff, the City would be required to compete with other transmission users for use of the transmission system. Selection of a 30 year term for this agreement will preserve our transmission rights for the maximum term allowed under the tariff. N:\CCOUNCIL\FINAL\BPA Transmission Service Agreement.doc Service Agreement for NT Service September 27, 2006 Page 2 The Transmission Service Agreement defines the technical issues involved in the tariff and the City's application for service, including the following: . Term (October 1,2006 through September 30,2036) . The City's network resources (BPA power contract and Morse Creek hydroelectric power) . Points of receipt on the system (Federal Columbia River Power System- FCRPS) . ControlAuea(BPA) . Points of Delivery (City of P A 69 kV and Nippon 069 kV) . Transmission charges (NT -06 rate or its successor rate) . Ancillary Service Charges (services provided by BP A transmission under ACS-06 rate or its successor rate) o Scheduling, system control, and dispatch o Reactive supply and voltage control o Regulation and frequency response o Energy imbalance o Operating reserves (spinning and supplemental) It is recommended that the City Council authorize the Mayor to sign the Service Agreement for Network Integration Transmission Service with the Bonneville Power Administration. N:\CCOUNCIL\FINAL\BPA Transmission Service Agreement.doc Service Agreement No. 06TX-12443 SERVICE AGREEMENT for NETWORK INTEGRATION TRANSMISSION SERVICE executed by the UNITED STATES OF AMERICA DEPARTMENT.OF ENERGY acting by and through the BONNEVILLE POWER ADMINISTRATION and THE CITY OF PORT ANGELES .1. This Service Agr~ement, dated as of ' is entered into by and between the Bonneville Power Administration Transmission Business Line (Transmission Provider) and the City of Port Angeles (Transmission Customer). 2. The Transmission Customer has been determined by the Transmission Provider. to have a Completed Application for Network Integration Transmission Service under the Transmission Provider's Open Access Transmission'Tariff(Tariff). 3. . The. Transmission Customer has provided to the Transmission Provider a deposit, unless such deposit has been waived by the Transmission Provider, for Transmission Service in accordance with the'provisions of Section 29.2 of the Tariff. 4. Service under this agreement shall commence on the later of (1) the requested Service Commencement Date, or (2) the date on which construction of any Direct Assignment Facilities andlor Network Upgrades are completed. Service under this agreement shall terminate on such date as mutually agreed upon by the parties. This Service Agreement No. 06TX-12443 supersedes the Network Integration . Service Agreement No. 96MS-96090. . 5. The Transmission Provider agrees to provide and the Transmission Customer agrees to pay for Network Integration Transmission Service' in accordance with the provisions of Part III of the Tariff and this Service Agreem.ent. 6. Any notice -Or request made to or by either Party regarding this Service Agreement shall be made to the representative of the other Party as indicated in Exhibit 'B. 7. The Tariff, Exhibit A (Specifications for Network Integration Transmission Service), Exhibit B (Notices), and Exhibit C (Network Operating Agreement) are incorporated herein and made a part hereof. Capitalized terms not defined in this agreement are defined in the Tariff. 8. This Service Agreement shan be-interpreted, construed, and enforced in accordance with Federal law. 9. This Service Agreement shall inure to the benefit of and be binding upon the Parties . and their respective successors. . .10. The Transmission Customer and the Transmission Provider .agree that provisions of Section 3201(i) of Public Law 104-134 (Bonneville Power Administration Refinancing Act) are incorporated in their entirety and hereby made a part of this Service Agreement. IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by tbeirrespective authorized officials. Date: UNITEDSTATESOFAMEIDCA Department of Energy Bonneville Power Administration By. -:lk~m~' Name: Thomas M. Noguchi (Print I Type) Senior Title: Transmission Account Executive Date: 09) 2- c/z. ,,, D 0 I THE CITY OF PORT ANGELES By: Name: (Print/Type) Title: W:TMC\ CT\Porl Angeles \ Contracts (FinaD\1244S.doc Service Agreement No. 06TX-12443 The City of Porl Angeles 2 r-- I EXHIBIT A SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE TABLE 1 REQUEST FOR TRANSMISSION SERVICES The OASIS Assignment Reference Number (ARet) is:. 1470701 1. TERM OF TRANSACTION Service Commencement Date: at 0000 hours' on October 1, 2006. Termination Date: at 0000 hours on October 1,2036. 2. NETWORK RESOURCES (a) Generation Owned by the Transmission Customer Capacity Capacity Designated Resource .(MW) as Network Resource 'Control Area Morse Creek 0.465 MW 0.465 MW BPAl (b) Power Purchased by the Transmission customer i... Source ' Capa~ity . 'Control Area (Contract No.) .' (MW) (Delivered From) BPA PBLl (Contract No. 00PB-12054 Net Requirements BPA 10/01101-10/01111) (c) Total Network Resources equals 2(a) + 2(b) . 3. POINT(S) OF RECEIPT Federal Generation Point(s) of Receipt Location: FCRPS;' Voltage: varies by facility; Metering: scheduled quantity; Transmission Demand: net ,requirements; Delivering Party: BP A; 1 Bonneville Power Administration (BPA). 1 Power Business Line (.PBL). 06TX.12443, The City of Port Angeles Exhibit A, Table 1 Specifications for Network Integration Transmission Service Page 10f5 Effective at 0000 houn; on October 1, 2006 Control Area: BPA; Exceptions: none. 4. POINT(S) OF DELIVERY (a) Description of Network Points of Delivery (1) Nippon 69 kV Point of Delivery Location: the point in the Transmission Provider's PoIt Angeles Substation, where the 69 kV facilities of the Transmission Provider . and the Transmission Customer are connected; Voltage: 69 kV; Mete~~in: t'he Transmission Provider's Port Angeles S~b~tation in the 69 kV CiTC.Ll~t o~~r which such electric pow~r flows; (2) Po~t Angel~s 69 kV Point of Delivery "', ...., '., Location: the point the Transmission Provider's Port Angeles Substation, wherei'the 69 kV facilities of the Transmission Provider. and the Transmission Customer are connected; Voltage: 69 kV; Metering: (A) in the Transmission Provider's Port Angeles Substation in the 69 kV circuits over which such electric power flows; (B) in the Transmission Customer's Morse Creek Hydroele~tric Generation Plant in the 0.48 kV circuit over which such' electric . power flows; Metering Loss Adjustment: the Transmission Provider will adjust for losses between the Transmission Customer's Point of Delivery and point of metering. Such adjustments shall be specified in wntten correspondence between the Transmission Provider and the Transmission Customer; Exception: revenue meters at metering point (B) are owned by the Transmission Customer. .. (b) Description of Transfer Points of Delivery Not applicable. See Section 4(a) of this Table 1. 06TX-12443, The City of Port Angeles Exhibit A, Table 1 Specifications for Network Integration Transmission Service Page 2 of5 Effective at 0000 hours on October I, 2006 5. NETWORK LOAD The Application provides the Transmission Customer's initial annual load and resoUrce information. Annual load and resource information updates shall be submitted to the Transmission Provider at the address specified in Exhibit B, by September 30 of each year, unless otherwise agreed to by the Transmission Provider and the Transmission Customer. . 6. DESIGNATION OF PARTY(IES) SUBJECT TO RECIPROCAL SERVICE OBLIGATION The City of Port Angeles 7. NAMES OF ANY INTERVENING SYSTEMS PROVIDING TRANSMISSION SERVICE None. . . 8. DECLARED CUSTOMER-SERVED LOAD (a) Declared Customer,..Served Load (CSL) is the monthly amount in megawatts of the Transmission Customer's Network Load that the Transmission Customer elects not to serve under this Service Agreement. . . (b) Where a Transmission .Customer's Network Load is served pursuant to a transmission agreement between the Transmission Provider and a third. . party, in orderfor such load to qualify as a declared CSL, such transmission agreement must be for Firm Transmission Service of at least one month to the Transmission Customer's system and must include a point of delivery at the Transmission Customer's system. The amount of such load, which will be treated as a declared CSL, is limited to the demand amounts at the point of delivery set forth in such transmission agreement. (c) Identify for all CSL: Not Applicable. 9. OTHER PROVISIONS SPECIFIC TO TInS SERVICE AGREEMENT Not Applicable.. 10. SERVICE AGREEMENT CHARGES Service under this Agreement will be subject to some combination of the charges detailed in Tables 1 and 2 of this exhibit. . (a) Transmission Charge NT-06 Rate Schedule and UFI'-06 Rate Schedule or successor rate schedules. . (b) System Impact and/or Facilities Study Cbarge(s) System Impact and/or Facilities Study Charges are not required at this time for service under this Service Agreement. . 06TX.-12443, The City of Port Angeles Exhibit A, Table 1 Specifications for Network Integration Transmission Service Page 3 of5 Effective at 0000 hours on October 1, 2006 11. DIRECT ASSIGNMENT AND USE-OF-FACILITIES CHARGES Facilities Charges are not require4 at this time for the service under this Service Agreement. 06TX-12443, The City of Port Angeles ExhibitA. Table I" Specifications for Network Integration Transmission Service Page 4 ofS Effective at 0000 hours 01). October 1, 2006 I .. -.----.--------. I TABLE 2 , ANCllXARYSER~CEdBARGES This Table 2 is subject to the ACS-06 Rate Schedule or successor rate schedules. Pr()vided By Contract No. 1. SCHEDULING, SYSTEM CONTROL AND Transmission 06TX-12443 DISPATCH Provider 2. REACTIVE SUPPLY AND VOLTAGE Transmission 06TX-12443 CONTROL Provider 3. REGULATION & FREQUENCY RESPONSE Transmission 06TX-12443 Provider 4. ENERGY IMBALANCE SER~CE Transmission 06TX-12443 Provider1 5. OPERATING RESERVE - SPINNING Transmission 06TX-12443 RESERVE Provider 6. OPERATING RESERVE - SUPPLEMENTAL Transmission 06TX-12443 RESERVE Provider 1 Energy Imbalance service is not applicable to BPA requirements customers. 06TX-12443, The City of Port Angeles Exhibit A, Table 2 Specifications fOT Network Integration Transmission Service Page 5 of5 Effective at 0000 hours on October 1, 2006 ..j EXmBIT B NOTICES 1. NOTICES RELATING TO PROVISIONS OF THE SERVICE AGREEMENT Any notice or other communication related to this Service Agreement, other than notices of an operating nature (Section 2 below), shall be in writing and shall be deemed to have been'reeeived if delivered in person, by First Class mail, by telefax or sent by.overnight delivery service. If to the Transmission Customer: If to the Transmission Provider: City of Port Angeles .. PO Box 1150 Port Angeles, W A 98362-0217 Phone: (360) 417-4703 Fax: . .(360) 417-4709 Attention: Transmission Account Executive for City of Port Angeles - TMtI'PP-2 Phone: (360) 619-6009 . Fax: (360) 619-6940 If by First Class Man: .. Bonneville Power Admimstration P.J>, Box 61409 Vancouver, WA 98666-1409 If by Overnight Delivery Service: Bonneville Power Administration - TMlI'PP-2 7500 NE 415t Street - Suite 130 .. Vancouver, W A 98662-7905 2. NOTICES OF AN OPERATING NATURE . Any notice, request or demand of an operating nature by the Transmission Provider or the Transmission Customer shall be made either orally or in writing by telefax or sent by first class mail, If to the Transmission Customer: If to.the Transmission Provider: City of Port. Angeles . PO Box 1150 Port Angeles, WA 98362-0217 Phone: (360) 417-4703 Fax: (360) 417-4709 Bonneville Power Administration 5240 Trosper Street, SW OlYIDpia,WA 98512 Phone: (360) 704-1651 3. SCHEDULING AGENT. Not applicable W:TMC\CT\ Port Angeles \ Contracts <FinaJ)\ 12443.doc 06TX-12443, The City of Port Angeles Exhibit B Notices Page lofl Effective at 0000 hours on October I, 2006