HomeMy WebLinkAbout000672 Original Contract City of Port Angeles
Record #000672
Contract No. 14PM-11648
DEMONSTRATION PROJECT AGREEMENT
executed by the
BONNEVILLE POWER ADMINISTRATION
and
CITY OF PORT ANGELES
Table of Contents
Section Page
1. Term ................................................................................................................ 2
2. Definitions ....................................................................................0................ 2
3. Project Requirements ................................................................................... 3
4. Unsuccessful Events .................................................................................... 4
5. Metering and Performance ........................................................................ 4
6. Payment .......................................................................................................... 5
7. Acknowledgement of Project ..................................................................... 5
S. Standard Provisions ..................................................................................... 6
9. Termination ................................................................................................... 6
10. Signatures ...................................................................................................... 7
This DEMONSTRATION PROJECT AGREEMENT (Agreement) is executed by the
UNITED STATES OF AMERICA, Department of Energy, acting by and through the
BONNEVILLE POWER ADMINISTRATION (SPA) and the CITY OF PORT ANGELES
(Port Angeles) a municipal corporation organized under the laws of the State of
Washington. BPA and Port Angeles are sometimes referred to individually as "Party" and
collectively as "Parties."
RECITALS
This Agreement between BPA and Port Angeles provides for cooperation between
BPA and Port Angeles in a commercial demand response demonstration project.
Port Angeles' consumer, Nippon Paper Industries USA(Nippon), operates a paper
mill capable of responding to demand side power management events. The mill has the
ability to drop 15 or 30 megawatts (MW) of load within ten minutes at a variety of times.
In theory, this additional load could be used by BPA to supply third party reserves or meet
other system needs if the plant's operations were found to be commercially viable.
Nippon and Port Angeles have worked with BPA on previous pilot projects and
determined that Nippon is capable of responding to demand response events. However, the
previous pilots did not involve commercial incentives or payments.
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BPA is interested in entering into a demonstration project with Port Angeles to test
the abilities and flexibilities of Nippon to respond to commercial style incentives. While the
proposed demonstration project is small in scale, BPA intends to use the data collected to
help determine broader applicability of utilizing flexibility within industrial loads served by
public utilities to respond to a variety of system conditions.
The Parties agree as follows:
1. TERM
This Agreement shall take effect on the date executed by the Parties (Effective Date)
and shall expire on September 30, 2014, unless terminated earlier by one or both of
the Parties.
2. DEFINITIONS
Capitalized terms below shall have the meaning stated. Capitalized terms that are
not listed below are defined within the section in which the term is used.
.(a) "Availability" means the days of the week and hours in the day that a
Dispatch Group is available to respond to an Event as specified in Exhibit A,
(b) "Business Day" means Monday through Friday except for Federal holidays.
(c) "Capacity Payment" means the amount that BPA will pay Port Angeles for
available load adjustment subject to the limitations of this Agreement.
(d) "Capacity Price" means the per kilowatt day price BPA will pay for available
capacity as specified in Exhibit A.
(e) "Consecutive Days Available" means the number of consecutive days within a
calendar week that a Dispatch Group is available to be called for an Event as
specified in Exhibit A.
M "Dispatch Group" means an end load or group of end loads that can respond
to a common set of characteristics as prescribed by BPA as specified in
Exhibit A.
(g) "Event" means a period when BPA requests a Dispatch Group to respond
under the terms of this agreement.
(h) "Event Request" means BPXs request, sent to Port Angeles, to initiate an
Event.
(i) "Event Frequency Per Month" means the maximum number of Events that
can be called on a Dispatch Group during a calendar month as specified in
Exhibit A.
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(�) "Event Frequency Per Week" means the maximum number of Events that
can be called on a Dispatch Group during a calendar week as specified in
Exhibit A.
(k) "Monthly Capacity Payment"means the aggregate sum of all Capacity
Payments owed by BPA to Port Angeles for a month,
(1) "Ramp Time" means the number of minutes, specified in Exhibit A, within
which a Dispatch Group must reduce the Dispatch Group load to meet the
Target Megawatt Reduction Amount.
(m) "Recharge Period" means the minimum amount of time required after an
Event is concluded before another Event may be requested by BPA as
specified in Exhibit A.
(n) "Target Megawatt Reduction Amount" means the total megawatt reduction
required by BPA for a given Dispatch Group as specified in Exhibit A.
(o) "Unsuccessful Event" means an Event that does not meet the requirements of
this Agreement as outlined in this Agreement.
(p) "Unsuccessful Event Payment Reduction" means the reduction in Capacity
Payment which occurs each time Port Angeles incurs an Unsuccessful Event,
as specified in Exhibit A.
3. PROJECT REQUIREMENTS
During the term of this Agreement, with the exception of any properly noticed
outages meeting the requirements of section 3(d) below, Port Angeles shall provide
BPA with periods of decreased load corresponding to the requirements of this
Agreement.
(a) Event Requests
BPA shall communicate all Event Requests to Port Angeles and Nippon via
Open ADR on the Alstom platform, BPA's Event Requests shall not exceed
the Event Frequency Per Month and the Event Frequency Per Week specified
in Exhibit A. Following the conclusion of an Event, SPA shall allow for a
Recharge Period, as specified in Exhibit A, before sending Port Angeles a
subsequent Event Request.
(b) Response Time
After BPA has sent Port Angeles an Event Request, Port Angeles shall fully
reduce the Dispatch Group load to the Target Megawatt Reduction Amount
within the Ramp Time specified in Exhibit A. Measurement for this
requirement shall be performed per Section 5, Metering and Performance.
14PM-11648, City of Port Angeles 3
(c) Response Duration.
Port Angeles'load reduction shall remain at or above the Target Megawatt
Reduction Amount for the entire duration of the Event. Measurement for
this requirement shall be performed per Section 5 Metering and Performance.
(d) Outages
If Port Angeles experiences an unplanned outage, or has knowledge of a
planned outage or any other incident that will affect the availability of a
Dispatch Group, Port Angeles shall provide BPA notice as soon as
practicable. In order to assure that an Event Request will not be sent during
an outage, Port Angeles must provide SPA with a minimum of 24 hours'
notice before any outage. Such notifications shall be sent via e-mail to
BPADRNotificationCOPA@bpa.gov with a carbon copies sent to
jdwellschlager@bpa.gov and skgreene@bpa.gov. Port Angeles' e-mailed
notifications shall include the reason for the outage and the expected time
the Dispatch Group will be available.
The daily Capacity Price shall not be paid for any Dispatch Group during any
period affected by an outage.
4. UNSUCCESSFUL EVENTS
(a) If Port Angeles fails to fully reduce the Dispatch Group load to the Target
Megawatt Reduction Amount within the Ramp Time, the Event shall be
considered an Unsuccessful Event.
(b) If, at any time during an Event, Port Angeles' measured load reduction drops
below the Target Megawatt Reduction Amount, the Event shall be considered
an Unsuccessful Event.
(c) For every Unsuccessful Event, Port Angeles'Monthly Capacity Payment shall
be reduced by the Unsuccessful Event Payment Reduction amount outlined
in Exhibit A.
5. METERING AND PERFORMANCE
(a) BPA shall monitor Port Angeles'response to all Events via two BPA SCADA
data points: Nippon Feeder at Port Angeles substation, SCADA point 25741;
and Nippon Co-Gen, SCADA point 12729. Total Mill Load shall be defined as
the algebraic sum of SCADA points 25741 and 124729.
Example: Total Mill Load = SCADA point 25741 + SCADA point 124729
(b) BPA shall calculate an Event as the difference between the Baseline Load
and the Total Mill Load as measured during each minute of the Event. The
Baseline Load shall be defined as the amount of Total Mill Load, in one
minute average kW, during the minute that BPA notifies Port Angeles of the
Event. The Baseline Load shall be considered constant for the duration of
the Event.
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Example: Event (kW) = Baseline Load (kW) —Total Mill Load (kW)
(c) BPA is solely responsible for verification of Event performance, determining if
Events are successful or if an Event is measured to be an Unsuccessful Event,
and calculating Port Angeles' compensation. BPA shall provide Port Angeles
with the data used to determine Event performance upon request. If Port
Angeles disagrees with BPA's determination, Port Angeles and BPA shall discuss
Port Angeles' concerns,
(d) During any period Port Angeles provides power to Nippon by a means other than
the dedicated 69 kV line from Port Angeles substation to the mill, as measured
by BPA SCADA meter point 25741, Port Angeles will provide BPA with data
from Nippon measuring total refiner mill electric load. BPA will then use this
data to calculate the delivered capacity for any Events during these periods.
6. PAYMENT
(a) Maximum payment for each.Dispatch Group shall be calculated by totaling
the Capacity Price, as defined in Exhibit A, for each day a Dispatch Group
was available in the previous calendar month. After BPA has verified Port
Angeles' performance during the previous calendar month, subtracted the
Monthly Capacity Payment for any outages or other periods of unavailability,
if applicable, and applied any Unsuccessful Event Payment.Reductions, BPA
shall pay Port Angeles the Capacity Payments owed via electronic funds
transfer. At no time shall the Monthly Capacity Payment to Port Angeles
total less than zero.
(b) Payment shall be made to Port Angeles on or before the 20th day of the
following month after the capacity has been made available. If the due date
falls on a non-Business Day, then the payment shall be due on the next
Business Day.
(c) No adjustments shall be made to Port Angeles'power or transmission bills for
any performance under this project. All Events will be considered load
shifting resources with no required net increase or decrease in retail energy
consumed within a twenty-four hour period. Port Angeles assumes all risk
for any billing adjustments caused by any Port Angeles'loads in performing
this pilot.
(d) Payments under this contract represent BPA's fifty percent cost share for the
total costs under this demonstration project.
7. ACKNOWLEDGEMENT OF PROJECT
The Parties agree to publication of data, articles, press releases, public discussion of
the demonstration project, and any other information sharing deemed reasonable
14PM-11648, City of Port Angeles 5
and appropriate regarding this project so long as these activities are congruent with
the requirements of BPA Cooperative Agreement number 59992.
8. STANDARD PROVISIONS
(a) Amendments
No amendment of this Agreement shall be of any force or effect unless set
forth in a written instrument signed by authorized representatives of each
Party.
(b) Entire Agreement
This Agreement, including documents expressly incorporated by reference,
constitutes the entire agreement between the Parties. It supersedes all
previous communications, representations, or contracts, either written or
oral, which purport to describe or embody the subject matter of this
Agreement.
(c) No Third Party Beneficiaries
This Agreement is made and entered into for the sole benefit of the Parties,
and the Parties intend that no other person or entity shall be a direct or
indirect beneficiary of this Agreement.
(d) Hold Harmless
Each Party assumes all liability for injury or damage to persons or property
arising from the act or negligence of its own employees, agents, members of
governing bodies, or contractors. Each Party shall indemnify and hold the
other Party harmless from any liability arising from such act or negligence.
(e) Dispute Resolution
This Agreement shall be interpreted consistent with and governed by federal
law. Port Angeles and BPA shall identify any issue(s) in dispute arising out
of this Agreement and make a good faith effort to negotiate a resolution of
such disputes before either may initiate litigation or arbitration. Such good
faith effort shall include discussions or negotiations between the Parties'
executives or managers. Pending resolution of a contract dispute or contract
issue between the Parties, the Parties shall continue performance under this
Agreement unless to do so would be impossible or impracticable.
(f) Uncontrollable Forces
A Party shall not be in breach of an obligation under this Agreement to the
extent its failure to fulfill the obligation is due to an Uncontrollable Force.
"Uncontrollable Force" means an event beyond the reasonable control, and
without the fault or negligence, of the Party claiming the Uncontrollable
Force, that prevents that Party from performing its obligations under this
Agreement and which that Party could not have avoided by the exercise of
reasonable care, diligence and foresight. Uncontrollable Forces include each
event listed below, to the extent it satisfies the foregoing criteria, but are not
limited to these listed events:
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(a) any curtailment or interruption of firm transmission service on BPA's
or a Third Party Transmission Provider's System that prevents Port
Angeles from performing under this Agreement;
(b) any failure of Port Angeles' distribution or transmission facilities that
prevents Port Angeles from performing under this Agreement;
(c) strikes or work stoppage;
(d) floods, earthquakes, other natural disasters, or terrorist acts; and
(e) final orders or injunctions issued by a court or regulatory body having
subject matter jurisdiction which the Party claiming the
Uncontrollable Force, after diligent efforts, was unable to have stayed,
suspended, or set aside pending review by a court having subject
matter jurisdiction.
Neither the unavailability of funds or financing, nor conditions of national or
local economies or markets shall be considered an Uncontrollable Force. The
economic hardship of either Party shall not constitute an Uncontrollable
Force. Nothing contained in this provision shall be construed to require
either Party to settle any strike or labor dispute in which it may be involved.
If an Uncontrollable Force prevents a Party from performing any of its
obligations under this Agreement, such Party shall:
(a) immediately notify the other Party of such Uncontrollable Force by
any means practicable and confirm such notice in writing as soon as
reasonably practicable;
(b) use commercially reasonable efforts to mitigate the effects of such
Uncontrollable Force, remedy its inability to perform, and resume full
performance of its obligation hereunder as soon as reasonably
practicable;
(c) keep the other Party apprised of such efforts on an ongoing basis; and
(d) provide written notice of the resumption of performance.
9. TERMINATION
Either Party may give notice of termination of this Agreement by providing written
notice 14 days in advance to the other Party. Additionally,,BPA may unilaterally
terminate with immediate effect if Port Angeles incurs three Unsuccessful Events
within a calendar month. Upon termination of the Agreement, any liabilities of a
14PM-11648, City of Port Angeles 7
Party under this Agreement which have not been satisfied shall be preserved until
satisfied.
10. SIGNATURES .
The Parties have executed this Agreement as of the last date indicated below.
CITY OF PORT ANGELES UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Admi
By By
Name oca n ti b - Namerhnellschla er
(PrintlType)
Title 1`4arlogle-- Title Account Executive
Date 0 is, 3 Date 61
14PM-11648, City of Port Angeles 8
Exhibit A
Dispatch Group Requirements
Dispatch Target Availability Maximum Ramp Consecutive Event Event Recharge Capacity Unsuccessful
Group Megawatt Duration Time Days Frequency Frequency Period Price Event
Reduction (hours) (min) Available per Week per (hours) ($/kW Payment
After a Month day) Reduction
Singular
Event
Dispatch 15 7:00:00- 1.5 10 2 2 8 24 $667.81 ($2,203.77)
Group 1 20:00:00
Tues-Sun
Dispatch 30 20:00:01- 1.5 10 0 2 8 48 $1,130.14 ($4,351.02)
Group 2 6:59:59
Mon-Mon
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Exhibit B
One-Line Schematic for Total Nippon Load using BPA SCADA points
Nippon Mill
Lits
Loads Lands
Nippon Mill
I i f3 PA Fart A nal es
I Loads
I i RPA Sub
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Substation
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1
mill,if mill load is 1
. 1
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geaterthan Gwen 1
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Plippan 'a- r
1 691 : line;`bus
Glen.20 PAW A
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1----------------------- —^—� Direction of
positive power
flowfor SCAD
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SCADA point
1247 2 9 1,10 VI)
14PM-11648, City of Port Angeles 10