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HomeMy WebLinkAbout5.410 Original Contract 5. -<lID REVISION NO.2, EXHIBIT C SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE The OASIS Assignment Reference Number (ARef) is: 442919 This Revision No.2: (1) updates the termination date language to conform with the existing Open Access Tariff; (2) removes the Pacific Rim Landfill from section 2(a); (3) as a result of a merger, changed the name of Daishowa 69 kV POD to Nippon 69 kV in section 4(a)(1); (4) deletes Rayonier 69 kV POD in section 4(a)(3); (5) section 4(b)(2), Exceptions Common to All point of Delivery, deletes this section in its entirety; (6) section B(c), CSPE CSL, deletes the language in this section; and (7) updates the Transmission Charge to reflect the 2004 rate schedules in section 10. This revision is effective on the date of Execution. 1. TERM OF TRANSACTION Service Commencement Date: September 30,1996, at 2400 hours. Termination Date: 0000 hours on October 1, 2006. 2. NETWORK RESOURCES (a) Generation Owned by Transmission Customer Capacity Capacity Designated as Control Resource (MW) Network Resource Area Morse Creek 0.465 MW 0.465 MW BPA1 (b) Power Purchased by Transmission Customer Source Capacity Control Area (Contract No.) (MW) (Delivered From) BPA PBL2 Net BPA (00PB-12054) Requirements (c) Total Network Resources equals 2(a) + 2(b) 3. POINT(S) OF RECEIPT Federal Generation Point(s) of Receipt Location: FCRTS; Voltage: varies by facility; 1 Bonneville Power Administration (BPA). 2 Power Business Line (PBL). 96MS-96090, The City of Port Angeles Exhibit C, Revision No.2 Specifications for Network Integration Transmission Service Page 1 of 4 Metering: scheduled quantity; Transmission Demand: net requirements; Delivering Party: BP A; Control Area: BP A. 4. POINT(S) OF DELIVERY (a) Description of Network Points of Delivery (1) Nippon 69 kV Location: the point in the Transmission Provider's Port Angeles Substation, where the 69 kV facilities of the Transmission Provider and the Transmission Customer are connected. Voltage: 69 kV Metering: in the Transmission Provider's Port Angeles Substation in the 69 kV circuit over which such electric power flows; (2) Port Angeles 69 kV Location: the point the Transmission Provider's Port Angeles Substation, where the 69 kV facilities ofthe 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 Port Angeles' Morse Creek Hydroelectric 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 written correspondence between the Transmission Provider and the Transmission Customer; 96MS-96090, The City of Port Angeles Exhibit C, Revision No.2 Specifications for Network Integration Transmission Service Page 2 of 4 Exceptions (i) revenue meters at metering point (B) are owned by the Transmission Customer; (ii) see section 4(b). (b) Exceptions Common to All Points of Delivery Default Methodology for Calculating Hourly Amounts of Transmission Customer's Generation In some cases, the resource will be treated as an offset to the Transmission Customer's load. Consumer resources are not subject to this requirement. (c) Description of Transfer Points of Delivery Not applicable. See section 4(a) of this Exhibit. 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 Article 3.1 of this Service Agreement, by September 30 of each year, unless otherwise agreed to by the Transmission Provider and the Transmission Customer. 6. DESIGNATION OF PARTY(lES) 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 ofthe 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 order for 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 96MS-96090, The City of Port Angeles Exhibit C, Revision No.2 Specifications for Network Integration Transmission Service Page 3 of 4 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 THIS SERVICE AGREEMENT. Not Applicable 10. SERVICE AGREEMENT CHARGES Service under this Agreement will be subject to some combination of the charges detailed in this exhibit. (a) Transmission Charge NT-04 Rate Schedule and UFT-04 Rate Schedule or successor rate schedules. (b) System Impact and/or Facilities Study Charge(s) System Impact and/or Facilities Study Charges are not required at this time for service under this Service Agreement. 11. DIRECT ASSIGNMENT AND USE-OF-FACILITIES CHARGES Facilities Charges are not required at this time for the service under this Service Agreement. By: ~t.. A-- UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By: ---/~ftJ.~> THE CITY OF PORT ANGELES Name: 6Lte,J,J (!.. CiA.n..etl.. (Prmt/Type) Name: Thomas M. Noguchi (Pnnt/Type) Senior Transmission Title: :J)1fl.eC:foR. 0;:' f1,.~I.\ <.. ,JtOaJ~s A'ND drll...I"'e) Title: Account Executive Date: ~ /Iq/oi I I Date: 5/;.3/09- I / (w.\ TMC\CT\Port Angeles\Revisions\96090R2C.doc) lh 96MS-96090, The City of Port Angeles Exhibit C, Revision No.2 Specifications for Network Integration Transmission Service Page 4 of 4 5.<//0 REVISION NO.2, EXHIBIT J ANCILLARY SERVICES This Revision No.2 to Exhibit J modifies the Ancillary Services provided under this Service Agreement to correspond with those identified in the Transmission Provider's 2002 Ancillary Services and Control Area Services Rate Schedule and Open Access Transmission Tariff, and replaces the exhibit in its entirety. This Exhibit J is subject to the ACS-02 Rate Schedule or its successor rate schedule. Provided By Contract No. 1. SCHEDULING, SYSTEM CONTROL Transmission 96MS-96090 AND DISPATCH Provider 2. REACTIVE SUPPLY AND VOLTAGE Transmission 96MS-96090 CONTROL Provider 3. REGULATION & FREQUENCY Transmission 96MS-96090 RESPONSE Provider 4. ENERGY IMBALANCE SERVICE Not Applicablel 5. OPERATING RESERVE - SPINNING Transmission 96MS-96090 RESERVE Provider 6. OPERATING RESERVE - Transmission 96MS-96090 SUPPLEMENTAL RESERVE Provider THE CITY OF PORT ANGELES UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By: ::/~m. ~i' BY:~.~ Name: Glenn Cutler (Pnnt/Type) Name: Thomas M. Noguchi (Pnnt/Type) Senior Transmission Title: Account Executive Title: Director Of Public Works & Utilities Date: 7-22~02 Date: :A/ILf/;Zoo;Z I ( (W \TMC\CT\Port Angeles\Revisions\96090R2J doc) 02/12/02 1 Energy Imbalance ServICe IS not apphcable to BPA reqUlrements customers. 96MS-96090, The City of Port Angeles Page 1 of 1 EffectIve at 0000 hours on October 1, 2001 5. </ I 0 Amendment No. 1 Contract No. 96MS-96090 AMENDMENT executed by the BONNEVILLE POWER ADMINISTRATION and THE CITY OF PORT ANGELES This AMENDMENT to the Network Integration Transmission Service Agreement, Contract No. 96MS-96090 (Service Agreement), is executed by the United States of America, Department of Energy, acting by and through the Bonneville Power Administration (Transmission Provider), and The City of Port Angeles (Transmission Customer). The Transmission Customer and the Transmission Provider are sometimes referred to individually as "Party" and collectively as "Parties" as the context suggests below. This Amendment No. 1 (Amendment) to the Service Agreement between the Transmission Provider and the Transmission Customer acknowledges the Parties' desire to amend the Service Agreement, effective at 0000 hours on October 1, 2001. The following articles are hereby amended as follows: 1. SCOPE OF SERVICE AGREEMENT / (a) Article 1.1 of the Service Agreement is hereby amended to read as follows: "The terms and conditions of the Transmission Provider's successor Open Access Transmission Tariff (Tanff), effective October 1, 2001, are hereby made part of the Service Agreement." (b) Article 1.6 of the Service Agreement is hereby amended to read as follows: "The Transmission Customer shall schedule transmission transactions in accordance with the Transmission Provider's Transmission Scheduling Provisions and Procedures as posted on Transmission Provider's OASIS located at the following Internet URL address: htto:/ /www.transmission.boa. 2:ov/or2:s/ooi/system news/index.shtm, which may be unilaterally changed by the Transmission Provider from time to time." (c) Article 1. 7 of the Service Agreement IS hereby amended to read as follows: "The TransmissIOn Provider's 2002 Final Transmission Proposal, Admmistrator's Record of DecislOn, Appendix B: 2002 Transmission and Ancillary Service Rate Schedules is hereby incorporated by this reference and made part of the Service Agreement." 2. TERM OF THE SERVICE AGREEMENT The second sentence of Article 2 of the Service Agreement is hereby amended to read as follows: "Service under this Service Agreement shall terminate on the earlier of: (a) 0000 hours on October 1, 2006; or (b) 0000 hours on the date of termination established pursuant to the Tariff." 3. NOTICES (a) Article 3.1 of the Service Agreement is hereby amended to read as follows: "Any notice or other communication related to this Service Agreement, other than notices of an operating nature (Article 3.2 below), shall be in writing and shall be deemed to have been received if delivered in person, First Class mail, by telefax or sent by acknowledged delivery. If to the Transmission Customer: The City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362-0217 Attention: Mr. Scott McLain Title: Deputy Director for Power Systems Phone: (360) 417-4703 Fax: (360) 417-4709 If to the Transmission Provider: Bonneville Power Administration P.O. Box 491 Vancouver, WA 98666-0491 Attention: Transmission Account Executive for the City of Port Angeles - TM - Ditt2 Phone: (360) 418-2175 Fax: (360) 418-8320" (b) Article 3.2 of the Service Agreement is hereby amended to read as follows: "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 or acknowledged delivery. Amendment No.1, ServIce Agreement No. 96MS-96090 The CIty of Port Angeles 2 If to the Transmission Customer: The City of Port Angeles P.O. Box 1150 Port Angeles, W A 98362-0217 Attention: Mr. James Harper Title: Engineering Manager Phone: (360) 417-4702 Fax: (360) 417-4709 If to the Transmission Provider: Bonneville Power Administration 5240 Trosper Road SW Olympia, WA 98512 Attention: Chief Substation Operator Phone: (360) 704-1651 Fax: (360) 704-1619" 4. CHARGES FOR TRANSMISSION SERVICE (a) Article 4.1.1 of the Service Agreement is hereby amended to read as follows: "Network Integration Rate (Schedule NT-02) listed in the 2002 Final Transmission Proposal, Administrator's Record of Decis~on, Appendix B: 2002 Transmission and Ancillary Service Rate Schedules, or its successor." (b) Article 4.1.2 of the Service Agreement is hereby amended to read as follows: "Ancillary Services and Control Area Services Rate (ACS-02) listed in the 2002 Final Transmission Proposal, Administrator's Record of Decision, Appendix B: 2002 Transmission and Ancillary Service Rate Schedules, or its successor." (c) Article 4.1.3 of the Service Agreement is hereby amended to read as follows: "Advance Funding Rate (Schedule AF-02) listed in the 2002 Final Transmission Proposal, Administrator's Record of Decision, Appendix B: 2002 Transmission and Ancillary Service Rate Schedules, or its successor." (d) Article 4.1.4 of the Service Agreement is hereby amended to read as follows: "Use-of-Facilities Transmission Rate (UFT-02) listed in the 2002 Final Transmission Proposal, Administrator's Record of Decision, Appendix B: 2002 Transmission and Ancillary Service Rate Schedules, or its successor." 5. MISCELLANEOUS (a) Article 5.3, "Tariff Revisions," of the Service Agreement terminated at 0000 hours on October 1, 2001. (b) Article 5.12, "Service Agreement Governs," ofthe Service Agreement terminated at 0000 hours on October 1, 2001. Amendment No.1, ServIce Agreement No. 96MS-96090 The CIty of Port Angeles 3 The Parties agree that all other terms and conditions of the Service Agreement remain the same. The signatories represent that they are authorized to enter into this Amendment on behalf of the Party for whom they sign. THE CITY OF PORT ANGELES UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By: .~. A-- By: ~~Pi.~' Name: Glenn eu tIer (Pnnt/Type) Title: Director Of Public Works .. & Ut ili ties Date: ]-22-02 Name: Thomas M. Noguchi (Pnnt/Type) Senior TransmIssion Title: Account Executive 2-/; 1f/2- 00 z-. I / Date: 0'V \TMC\CT\Port Angeles\Amendments\96090aal doc) 02/12/02 Amendment No.1, ServIce Agreement No. 96MS-96090 The City of Port Angeles 4 .. 5. <I/o REVISION NO.1, EXHIBIT C SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE The OASIS AssIgnment Reference Number (ARef) is: 442919 This Revision No. 1 assigns an OASIS Assignment Reference Number and updates the exhibit's format and associated miscellaneous terms to conform to the current Tariff. This revision is effective at 0000 hours on October 1, 2001. 1. TERM OF TRANSACTION Service Commencement Date: September 30, 1996, at 2400 hours. Termination Date: the earlier of: (a) 0000 hours on October 1, 2006; or (b) 0000 hours on the termination date established pursuant to Article 2 of thIS Service Agreement. 2. NETWORK RESOURCES (a) Generation Owned by Transmission Customer Capacity Capacity Designated as Control Resource (MW) Network Resource Area Morse Creek 0.465 MW 0.465 MW BPAl Pacific Rim 2 units at 0.400 MW BPA Landfill (PURP A)2 0.2 MW ea. (b) Power Purchased by Transmission Customer Source Capacity Control Area (Contract No.) (MW) (Delivered From) BP A PBL3 Net BPA (00PB-12054) Requirements (c) Total Network Resources equals 2(a) + 2(b) 3. POINT(S) OF RECEIPT (a) N on-Federal Resource Point of Receipt None. (b) Federal Generation Point(s) of Receipt Location: FCRTS; 1 BonnevIlle Power AdmmIstratlOn (BPA). 2 PacIfic RIm Landfill wIll not be economIcally feaSIble by about 2005 and WIll be termmated 3 Power Busmess Lme (PBL). 96MS-96090, The CIty of Port Angeles Page 1 of 5 " Voltage: varies by facilIty; Metering: scheduled quantity; Transmission Demand: net requirements; Delivering Party: BP A; Control Area: BP A. 4. POINT(S) OF DELIVERY (a) Description of Network Points of Delivery (1) Daishowa 69 kV Location: the point in the TransmIssion Provider's Port Angeles Substation, where the 69 kV facilities of the Transmission Provider and the Transmission Customer are connected; Voltage: 69 kV; Metering: in the Transmission Provider's Port Angeles Substation in the 69 kV circUlt over which such electric power flows; Exceptions: see section 4(b). (2) Port Angeles 69 kV Location: the point the Transmission ProvIder's Port Angeles Substation, where the 69 kV facilities of the Transmission Provider and the TransmisslOn Customer are connected; Voltage: 69 kV; Metering (A) m the Transmission Provider's Port Angeles Substation m the 69 kV cIrcuits over which such electric power flows; (B) in the Transmission Customer's Port Angeles' Morse Creek Hydroelectric 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 Pomt of Delivery and point of metering. Such adjustments shall be specifIed in wntten 96MS-96090, The CIty of Port Angeles RevIsIOn No.1, ExhIbIt C SpeCIfIcatIOns for Network IntegratIOn TransmIsSIOn ServIce Page 2 of 5 EffectIve at 0000 hours on 01/01/2001 correspondence between the Transmission Provider and the Transmission Customer; Exceptions (1) revenue meters at metering point (B) are owned by the TransmissIOn Customer; (ii) see section 4(b). (3) Rayonier 69 kV Location: the point in the Transmission Provider's Port Angeles Substation, where the 69 kV facilities of the Transmission Provider and the Transmission Customer are connected; Voltage: 69 kV; Metering: in the Transmission Provider's Port Angeles Substation in the 69 kV circuit over which such electric power flows; Exceptions: see section 4(b). (b) Exceptions Common to All Points of Delivery (1) Default Methodology for Calculating Hourly Amounts of Transmission Customer's Generation In some cases, the resource will be treated as an offset to the TransmisSIOn Customer's load. Consumer resources are not subject to this requirement. (2) Calculation Methods for Determining How Meter Readings are to be Added or Subtracted to Calculate the Billing Amounts Because of the combination of: (A) the costs and complexities involved with installing revenue quality metering on the Elwha generation; (B) the likelihood that the Elwha projects will be sold to the TransmissIOn Provider as part of implementation of the Elw ha River Ecosystem and Fishenes Restoration Act, Pubhc Law 102-495 (1992); and (C) under normal operations, the Elwha generation is reduced for load curtaIlment at the Daishowa Paper Company Plant, the Transmission ProvIder agrees to set Network Load equal to the sum of metered amounts at the Transmission Customer's Points of Delivery. Therefore, Network Load shall be the sum of Meter Points 251, 152, 459, and 1272, minus Meter Point 158 (Daishowa Reverse), and mmus Meter Point 1162 (Rayonier Reverse). The Transmission Provider reserves the nght to reVIew this decision 96MS-96090, The CIty of Port Angeles RevIsIOn No.1, ExhIbIt C SpecIfIcations for Network IntegratIOn TransmIsSIOn ServIce Page 3 of 5 EffectIve at 0000 hours on 01/01/2001 penodically, and if conditIOns have changed to revise the billing method upon 30 days' wntten notice to the Transmission Customer. (c) Description of Transfer Points of Delivery Not applicable. See section 4(a) of thIS ExhibIt. 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 Article 3.1 of this Service Agreement, 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 ofthe 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 order for 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: Columbia Storage Power Exchange (CSPE) (1) Monthly Amounts: (monthly kW) specified in Contract No. 14-03-47310. (2) Supplied by: CSPE, Contract No. 14-03-47310. (3) Control Area Delivered From: BP A. 96MS-96090, The CIty of Port Angeles RevIsIOn No.1, ExhIbIt C SpecIfIcatIOns for Network IntegratIOn TransmIssIOn ServIce Page 4 of 5 Effectlve at 0000 hours on 01/01/2001 (4) Primary Point of Delivery on Transmission Customer System: Various Points of Dehvery III the Transmission Customer's serVIce area. 9. OTHER PROVISIONS SPECIFIC TO THIS SERVICE AGREEMENT None. 10. SERVICE AGREEMENT CHARGES ServIce under this Agreement will be subject to some combination of the charges detailed in this exhibit. (a) Transmission Charge NT-02 Rate Schedule and UFT-02 Rate Schedule, or successor rate schedules. (b) System Impact and/or Facilities Study Charge(s) System Impact and/or Facilities Study Charges are not required at this time for service under this Service Agreement. 11. DIRECT ASSIGNMENT AND USE-OF-FACILITIES CHARGES Facilities Charges are not required at this time for the service under this Service Agreement. THE CITY OF PORT ANGELES UNITED STATES OF AMERICA Department of Energy Bonneville Power Admimstration By: ~~ By: ;::/~)n.~' Name: Thomas M. Noguchi (Pllnt/Type) Senior Transmission Title: Account Executive 2.. ///1-/2 t/02 I I Date: Name: Glenn eu tIer (Pnnt/Type) Title: Director Of Public Works & Utilities Date: 7-22-02 (W \TMC\CT\Port Angeles\RevlslOns\96090R1C.doc) 02/12/02 96MS-96090, The CIty of Port Angeles RevIsIOn No.1, ExhIbIt C SpecIfIcatIOns for Network IntegratIOn TransmIssIOn ServIce Page 5 of 5 EffectIve at 0000 hours on 01/01/2001 ,. " . , " . 5.<110 . Contract No. 96MS-95027 09/03/96 PARTIAL REQUIREMENTS POWER SALES CONTRACT for Service to Pacific Northwest Retail Loads executed by the UNITED STATES OF AMERICA acting by and through the BONNEVILLE POWER ADMINISTRATION and CITY OF PORT ANGELES Index to Section's Section I. 2. 3. 4. 5. G 7. 8. 9 10. II. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Page DefinI bons ........................................................................................................ 3 Commencement Date and Term ...................................................................... 8 DelIverIes of FIrm Power Before the Commencement Date ........................... 8 Commencement Date ..................... ................. .......... ......... ........ ............... ....... 8 Term matIOn of PrIor Agreemen t ..................................................................... 9 ExhIbIts and InterpretatIOn ............... .............. .................. ...... .............. .......... 9 Sale and Purchase of FIrm Power ................................................................... 10 Declared Resources ...... ................. ................. ......... ........ ........... ................. ..... 10 ServIce Arrangements for FIrm Power ............................................................ 10 Use of Resources .............................................................................................. 11 Products and ServIces SelectIOn ...................................................................... 11 DelIvery and System OperatIOns ..................................................................... 12 Rate ApplIcable to FIrm Power ........................................................................ 13 BIllmg and Paymen t Procedures ..................................................................... 14 Uncontrollable Forces .............. .................... .......... ........... ............ .............. ..... 15 RIght to Obtam ReqUIrements ServIce for Load Served by Port Angeles ...... 16 Conserv a tIon .................................................................................................... 17 Stranded Costs ................................................................................................. 18 Hold Harmless ................................................................................................. 18 EntIre Agreement .... ................. ............... ..................... ............. ......... ............. 19 Damages for FaIlure by BPA to DelIver .......................................................... 19 AsSignment of Agreement................................................................................ 20 . . " 'I Index to Sections Section 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. Page Waivers. ....... ......... ............... ........ ......... ....... ....... ......... .......... ............... ........ .... 20 Dispute ResolutIon .............. ................ ....... .......... ......... ...................... ............. 20 PURP A AcquisitIons ................... .......... ..... ............ ....... ................................... 22 Amendment of Agreement ........... ........ ....... .................. ....... ............................ 22 Notices and Other Communications ................................................................ 22 Conservation Repayment ....... ........ ........ ........ ......... ......................................... 23 Renewable IncentIve ... .................... ........ ......... ........ .................................. ...... 23 New Large SIngle Loads .................................................................................. 24 Statutory ProvIsions ................. ....... .................... ............................................ 24 Retail Wheeling.................. ......................... .................. ................................... 25 SIgnature Clause ................................... ........................................................... 30 ExhibIt A Exhibit B ExhIbit C Exhibit D Exhibit E ExhIbit F Exhibit G Exhibit H Exhibit I (points of DelIvery) (Rate Schedules and General Rate Schedule ProvisIOns) (Product SelectIOn) (Resource Exhibit) (Power SchedulIng) (power Amounts) (New Large Smgle Loads) (General Contract Provisions) (SpecIal ProvisIOns) THIS PARTIAL REQUIREMENTS POWER SALES CONTRACT, executed . 199-> by the UNITED STATES OF AMERICA (Government), I)(lpartment of Energy, actmg by and through the BONNEVILLE POWER ADMINISTRATION (BPA) and CITY OF PORT ANGELES (Port Angeles), a mUnIcIpal corporatIOn of the State of Washmgton, each bemg a "Party" hereto and referred to collpctlv('ly as "PartIes." WITNESSETH: WH EREAS the PartIes hav(' entered mto a power sales agreement, Contract No. DE-MS79-81 BP90450 (PrIOr Agreement) pursuant to sectIOn 5(b)(1) of the Pacific Northw('st EI('ctrlc Power Plannmg and ConservatIOn Act, PublIc Law 96-501 (Northwest Power Act), to serve Port Angel('s' firm power load m the regIOn, and the PartIes deSIre to r<:>place such PrIor Agreement WIth a new agreement; and 2 Contract No. 96MS-95027 \ . 1 e . , , WHEREAS Port Angeles is a public body which is distributing electric power and energy to Consumers in Clallam County, Washington; and WHEREAS BP A is authorized by law to dispose of electric power and energy generated at various Federal hydroelectric power projects in the Pacific Northwest or acqmred from other resources, to construct and operate transmission facilities, to provide transmission and other servIces, and to enter into agreements to carry out such authorIty; and WHEREAS BP A wIshes to sell and Port Angeles wishes to purchase Firm Power for Its Consumers under the terms of this Agreement; NOW, THEREFORE, the Parties agree: 1. DEFINITIONS When used with initial capitalization, both in the smgular or the plural, the followmg terms shall have the followmg meamngs: (a) "Agreement" means this PartIal Requirements Power Sales Contract, as may be amended. (b) "Ancillary ServIces" means those services necessary to support the transmISSIon of electrIc power from resources to load while mamtammg relIable operatIOn of the Federal Columbia RIver TransmIssIOn System, and mclude Energy Imbalance, Control Area Reserves for Resources, Control Area Reserves for Interruptible Purchases, Load RegulatIon and TransmIssIon Losses, all as set forth m the 1996 Ancillary Products and ServIces Rate Schedule (APS-96). (c) "Commencement Date" means the date that delIveries of FIrm Power commence under this Agreement as set forth in sectIOn 4. 3 Contract No. 96MS-95027 . e ,/, t (d) "ConservatIOn Agreements" means those certain agreements between BPA and Port Angeles whIch provide for the promotion, funding and/or installatIOn of conservatIon measures. (e) "Consumer" means a retail end-user of electricity which places electrIc load on Port Angeles, or whIch purchases control area or other services from Port Angeles. (f) "Contractual Control Area" means that area located withm BPA's Control Area within whIch Port Angeles has the responsibility for distributmg electricity to Consumers, and includes all electric load and electric generatmg resources withm such area which are connected to Port Angeles' distribution facihties or dIrectly to Port Angeles' POD. Port Angeles IS responsible for generating or havmg dehvered to Port Angeles PODs an amount of power equal to its Hourly Resource Commitment which is establIshed in Exhibit D. Contractual Control Area is used for billing purposes only, and does not constitute a Control Area. (g) "Contract Year" or "CY" means the perIOd commencmg 0000 hours on October 1 of a gIven calendar year and endIng at 2400 hours on September 30 of the followmg calendar year. (h) "Control Area" or "Load Control Area" IS the electrical (not necessarily geographIcal) area wlthm whIch a controlhng utihty operatmg under all North American ElectriC RelIabilIty Council standards has the responslbIhty to adjust ItS generatIOn on an mstantaneous basIs to match mternalload and power flow across mterchange boundaries to other Control Areas. A utihty operatmg a Control Area IS called a "controlhng utihty." (I) "Declared Resource" means energy and/or capacity, other than FIrm Power, whIch Port Angeles has the right to schedule or receIve for use in servmg Its Total Retail Load. as set forth m Exhibit D. 4 Contract No. 96MS-95027 , . . e . (j) "Declared Retail Wheelmg" means the amount of load for whIch Port Angeles has provided notIce to BP A pursuant to section 32. (k) "Final Rates" shall have the meaning assigned to such term in sectIOn 13(a). (1) "FIrm CapacIty" means the capaCIty which BP A IS obhgated to dehver to Port Angeles and that Port Angeles has agreed to purchase from BP A under the terms of thIs Agreement. (m) "FIrm Energy" means the electric energy which BPA is obhgated to dehver to Port Angeles and that Port Angeles has agreed to purchase from BPA under the terms of thIs Agreement. (n) "FIrm Power" means FIrm Capacity and Firm Energy. (0) "Good ElectrIc UtIlIty PractIce" or "Good UtilIty PractIce" means, at any particular tIme, the generally accepted practIces, methods, and acts m the electric utihty mdustry that would achIeve the deSIred result. If there are no such practIces, methods, and acts, Good ElectrIc UtilIty PractIce means the practIces, methods, and acts whIch, m the exerCIse of reasonable Judgment m I1ght of the facts known at the tlmp the deCISIOn was made, could have been pxpected to accomplIsh tlw dpslred result consIstent WIth economy, relIabIlIty and safety consldE'fatlons. (p) "Heavy Load Hount Of "HLH" mE'ans those heavy load hours as speCIfied m the 1996 PrIorIty Flfm Power R.atE' Schedule (PF-96). (q) "Imtlal Rates" shall havp the meanmg aSSIgned to such term m sectIOn 13(a). (r) "Interest Rate" means the U.S. PrIme Interest Rate for Large Banks as reported from tIme to tIme by the Wall Street Journal. 5 Contract No. 96MS-95027 e e (s) "Light Load Hours" or "LLH" means those light load hours as specified m the PF-96 rate schedule. (t) "Measured Amount" means the amount of FIrm Energy (expressed in kilowatthours) delivered to Port Angeles' PODs during the relevant perIOd (u) "New Large Smgle Load" or "NLSL" means an increase in energy consumption of a Consumer's load associated wIth a new facility, an eXIstmg facihty, or an expansIOn of an existing facility durmg the ImmedIately past 12-month period whIch exceeds by 10 average megawatts or more the Consumer's energy consumption for such new facility, existmg facihty or expansion of an eXIstIng facility for the consecutive 12-month period 1 year earher, or the amount of the contracted for, or commItted to load of such Consumer as of September 1, 1979, whichever IS greater. (v) "Other Consumer Load" means any electrIC load of a Consumer whIch IS served by Other GeneratIOn or Declared Retail Wheelmg; or any electrIc load of a Consumer whIch IS a New Large Smgle Load. (w) "Other GeneratIOn" means generatIng resources that are not owned, operated or scheduled by Port Angeles whIch are located In the Contractual Control Area and are elthpr connected to Port Angeles' distributIon system or dIrectly to Port Angeles' POD. (x) "POInt(s) of DelIvery" or "POD" means the locatIOns for dehvery of FIrm Power estabhshed pursuant to thp TransmIssIOn Agreement, and as deSCrIbed In ExhIbIt A. (y) "Powpr SchedulIng Agent" means an entity deSignated by Port Angeles, pursuant to thp terms of thIs Agreement, to schedule FIrm Power and/or Declared Resources on behalf of Port Angeles. 6 Contract No. 96MS-95027 . ~ . I ' " . . . (z) "Total Retail Load" means during any given time period the sum of the amount of electric energy delivered to Port Angeles at Port Angeles PODs and over any interconnection between Port Angeles and other entitIes, plus the measured or negotIated output of any electric generatIng faCIlItIes located In the Contractual Control Area which are connected to Port Angeles' mstribution facilItIes or dIrectly to Port Angeles' POD. Total RetaIl Load shall not include any electric generating resources or electric loads withIn Port Angeles' Contractual Control Area that have been removed from the Contractual Control Area through telemetering. (aa) "Transmission Agreement" means the agreement between BP A and Port Angeles whIch prOVIdes for the delivery of FIrm Power to Port Angeles USIng the Federal ColumbIa RIver TransmissIOn System. (bb) "Uncontrollable Force" means an event beyond the reasonable control and WIthout the fault or neghgence of the Party claimIng Uncontrollable Force. Uncontrollable Force mcludes but is not lImIted to: (1) strIkes or work stoppages, mclumng threats of strIkes or Immment strIkes, the settlement of whIch shall be at the sole dIscretIOn of the Party subject to the strIke; (2) events reasonably beyond thE' control of the PartIes (mclumng those events creatmg actual or Immment safety problems) and whIch the Party could not, by exerCIse of reasonable dIlIgence and foresIght, have been expected to aVOId; (3) floods or other natural dIsasters and acts of God; or (4) order or mjUnctIOn entered by any court havmg competent subject matter jurIsmctIOn or any order of an admmIstratIve officer, other 7 Contract No. 96MS-95027 e . ,,0 than an officer of BP A or the Department of Energy, which cannot be stayed, suspended, or set aside pending review of such order. Neither the unavailabilIty of funds or financing, nor condItions of natIOnal or local economics or markets shall be considered an Uncontrollable Force. The economic hardshIp of eIther Party shall not constitute an Uncontrollable Force. (cc) "Workday" means any day both Parties normally regard as a workday. 2. COMMENCEMENT DATE AND TERM (a) Commencement Date Upon the execution and delIvery of this Agreement by both of the Parties, this Agreement shall become effectIve on the Commencement Date. (b) Term This Agreement shall contmue m effect until 2400 hours on September 30, 2001. All habIhtle!" mcurred hereunder shall be preserved until satIsfied. 3. DELIVERIES OF FIRM POWER BEFORE THE COMMENCEMENT DATE Durmg thE' perIod between executIon and the Commencement Date, the PrIor Agr('cment shall control the obligatIOni' of thE' PartiE's. 4. COMMENCEMENT DATE D('hverwi' of FIrm Power and the othN product!" and services provIded hereunder shall commencE' at 0000 hour!" on the later of October 1, 1996, or on the first day of th(' bIlling perIOd Immediately followmg the date upon whIch BPA commences provHhng transmIssion sprvIces to Port Angeles under the Network TransmIssIon ratp schedule. 8 Contract No. 96MS-95027 " , e . 5. TERMINATION OF PRIOR AGREEMENT Except as provided in sections 18 and 32, effective on the Commencement Date, the PrIOr Agreement will terminate, and all liabilities of the Parties under the Prior Agreement shall be preserved until satisfied. 6. EXHIBITS AND INTERPRETATION (a) Exhibits Exhibit A (points of Dehvery), Exhibit B (Rate Schedules and General Rate Schedule ProvisIOns), ExhIbIt C (product SelectIOn), ExhibIt D (Resource ExhIbit), ExhibIt E (power Scheduling), Exhibit F (power Amounts), Exhibit G (New Large Single Loads), Exhibit H (General Contract ProvIsIOns), and Exhibit I (Special Provisions) are hereby mcorporated into and made a part of thIs Agreement. Pemnsula shall be the Purchaser as that term is used in ExhibIt B. Peninsula shall be the Customer as that term is used in Exhibit E. G and H. (b) Revision Any reVISIOn to any exhibIt shall be made only upon the WrItten agreement of the Parties; provided, however, that BPA may revise ExhibIt B as provIded m sectIOn 13(a) to substitute Fmal Rates for ImtIal Rates WIthout the WrItten consent of Port Angeles. (c) Headings The headmgs used m thIS Agreement are for convement reference only and shall not affect the mterpretatlOn of any prOVISIOn of this Agreement. (d) Precedence In the event of a conflIct between the terms of any exhibIt and the body of thIs Agreement, the terms of the body of this Agreement shall prevail. 9 Contract No. 96MS-95027 e . 7. SALE AND PURCHASE OF FIRM POWER (a) BP A will make avaIlable to Port Angeles amounts of Firm Power determined pursuant to the prOVISIOns of this Agreement (including all exhibits) at the Pomts of Debvery, and Port Angeles shall accept and purchase such Firm Power from BP A, at the PF -96 rate attached hereto as part of Exhibit B. (b) Rates for Firm Power and Services The rates and charges for FIrm Power service, load regulation, load shapmg, and any other charge or fee in any way associated with servIce under thIS Agreement shall be as specified in Exhibits Band C and shall include no other fee or charge, other than those specified in Exhibits Band C. 8. DECLARED RESOURCES Port Angeles shall provide the hourly amounts of Declared Resources that are estabhshed in ExhibIt D to serve a portion of ItS Total Retail Load. These amounts shall be Port Angeles' Resource CommItment. 9. SERVI CE ARRANGEMENTS FOR FIRM POWER (a) Load Following Firm Power Service BPA shall supply Firm Power sufficient to serve Port Angeles' Total RetaIl Load, net of any Other Consumer Load, to the extent such Total RetaIl Load IS not served by Port Angeles' ResourcE' CommItment. This servIce mcludes FIrm Capacity and Firm Energy, and other products and servIces selected by Port Angeles, all as set forth In ExhibIt C. BPA will determine Total RetaIl Load by measuring Its components on each hour usmg its metermg and data collectIOn system, by receiving electronic SIgnals from Port Angeles' eqUIpment, or when necessary by estabhshmg a reasonable estimate. Port Angeles may dIspute such estImate pursuant to section 24. 10 Contract No. 96MS-95027 , , ". . . (b) For purposes of this Agreement, Port Angeles is deemed to operate a Contractual Control Area. Port Angeles agrees that it WIll not move its electric loads out of BP A's Control Area during the term of this Agreement. 10. USE OF RESOURCES (a) Port Angeles may use resources (Including without lImItation contractual and generatIng resources) other than those specified in ExhibIt D to meet Its Resource CommItment, and such use of other resources may be done on eIther a plannmg or real-time baSIS. (b) Port Angeles' real-time use of resources (Including without lImitatIOn contractual or generatmg resources) other than those specified In Exlublt D to meet Its Resource CommItment will be reflected on preschedules submItted pursuant to sectIOn I2(c), and m amounts up to Port Angeles' Hourly Resource CommItment. (c) Durmg the term of thIS Agreement, Port Angeles shall have the rIght to supply its Resource CommItment m any manner Port Angeles deems approprIate, consIstent WIth Western Systems Coordmatmg CouncIl (WSCC) standards, the Northwest Power Pool (NWPP) practices and the prOVISIOns of thiS Agreement. 11. PRODUCTS AND SERVICES SELECTION On or before each February 15th, Port Angeles may prOVIde BPA WIth a reVISIOn to ExhIbIt C settmg forth thp products and services whIch Port Angeles mtends to purchase from BPA dUrIng tlw next Contract Year. Such ExhIbIt C shall take effect when agreed to by the Parties, as set forth m an amendment whIch reVIses exhIbIt C and any other sectIOns of thiS agreement as made be reqUIred.. In the absence of such agreement, the prIor ExhIbIt C shall contmue to be used. BPA may charge the rate or rates then m effect for the products and serVIces added to ExhIbit C pursuant to thIS sectIOn 11. 11 Contract No. 96MS-95027 e e I ' 12. DELIVERY AND SYSTEM OPERATIONS (a) Delivery BP A will deliver FIrm Power and other products and services to Port Angeles at Points of DelIvery Identified in Exhibit A, and conSIstent WIth the terms and conrutIOns of the TransmIssion Agreement. (b) System Planning and Operation The Parties agree to plan and operate their respective systems m a manner conSIstent WIth Good UtilIty Practice. (c) Power Scheduling Port Angeles agrees to submit to BPA schedules for any and all resources used to fulfill ItS Resource Commitment, consistent with the schedulIng requirements of the TransmiSSIOn Agreement. In the event that the TransmissIOn Agreement does not con tam schedulIng prOVISIons, or such prOVISIOns do not provide sufficient mformatIOn for BPA to render bIlls under thiS Agreement or to ruscharge Its Control Area operator duties, then m that event Port Angeles wIll either schedule resources used to fulfill ItS Resource Commitment pursuant to Exll1blt E. or add such additIOnal mformatIOn as rpasonably requlrpd by BPA to the schedules submitted pursuant to the TransmissIOn Agrepment. (<I) Assignment Among Multiple Contracts Any portIOn of Port Angp)ps' Measured Demand and Measured Energy, as thoi'e terms are dpfinpd In ExhlLlIt B. which IS not assigned to classes of power delIvered under oth(lr agreements will be deemed to be a delivery under thiS Agreement. 12 Contract No. 96MS-95027 ". . . (e) Ancillary Services Port Angeles agrees that It will purchase, under the Transmission Agreement, any Ancillary Services necessary for Firm Power, Declared Resources, or Other Generation. 13. RATE APPLICABLE TO FIRM POWER (a) BPA's 1996 Wholesale Power Rate Schedules applIcable to Port Angeles, IncludIng any charges set forth or referenced therein, WhICh take effect on October 1, 1996 (InItIal Rates) shall be attached hereto and incorporated In this Agreement as Exhibit B. The Initial Rates will be subject to reVIew and final approval by the Federal Energy Regulatory CommIssIon (FERC), which may Include JudIcIal reVIew and remand to BPA (Final Rates). The Final Rates shall be attached hereto and Incorporated In thIS Agreement as ExhibIt B, and shall be substituted for the InItial Rates upon final approval by the FERC. The InItial or FInal Rates, whichever is In effect when Firm Power, and other products or servIces are provIded hereunder, shall be applIed to the FIrm Power, and other products and servIces sold by BP A and bought by Port Angeles pursuant to thIS Agreement. (b) Port Angeles shall have no oblIgatIOn to pay BPA at rates, charges or fees whIch differ from the InItial Rates or FInal Rates for FIrm Power, and other products and serVIces purchased under thiS Agreement. (c) Port Angeles shall have no oblIgatIOn to pay any portIOn of its BP A power bill that has been calculated usmg BPA rates, fees or charges other than the InItIal Rates or Fmal Rates for the Firm Power, and other products and serVIces bemg purchased under thiS Agreement. If Port Angeles IS bIlled for Firm Power, and other products or services under thIS Agreement USIng rates, fees or charges other than InItial or Fmal Rates, Port Angeles may notify BPA of a dispute m ItS BPA power bill, statIng the amount m ruspute. In such event, Port Angeles shall pay that portIOn of the BPA power bill not 13 Contract No. 9GMS-95027 . . ,1- m dispute, and may retam the amount of the BP A power bill that is in dIspute. (d) Upon final resolution of any dIspute arising out of thIS section 13, any payment due from one Party to the other Party based on a payment of the amounts retamed pursuant to section 13 shall be paid with mterest computed from the due date of the bill until the date payment is made, computed usmg the Interest Rate in effect on the first day of the month that mcludes the orlgmal due date. 14. BILLING AND PAYMENT PROCEDURES (a) Rendering of Bills and Due Date BPA shall render monthly bIlls based upon the amounts of FIrm Power, products and servIces which are provIded to Port Angeles under thIs Agreement using the ImtIal or Fmal Rates. Such bills shall be transmitted to Port Angeles by facsImIle as well as by U.S. Mail. Port Angeles shall pay BPA by dIrect wIre transfer by the close of bus mess on the 20th day after the date of the bill. ReVIsed bills shall be paid m the same manner. Should the 20th day be a Saturday, Sunday, or a hohday (as observed by Port Angeles or BPA), the due datp shall be the followmg busmess day. If requested, the procedures to bp followed m makmg dIrect wIre transfers will be provIded by the BPA Fmanclal SE'rvlces Group and updated by mutual agreement as npcessary. (b) Estimated Bills BPA may render an estImated bIll for a month to be followed at a later date by a final bIll for that month. Such estImated bill will have the vahdity of, and be subject to. thp same payment prOVISIOns as a final bill. Any undIsputed adjustments due to such estImated billmg will be debited or credIted as approprIate m the next bIll followmg resolution of any dIscrepancy. 14 Contract No. 96MS-95027 '<. . e (c) Late Payment Except as provIded In section 13, bills not paid in full on or before the close of busIness on the due date shall be subject to an interest charge of one-twentieth percent (0.05 percent) which shall be applied each day to the sum of the unpaid amount. This interest charge shall be assessed on a daily basis until such time as the unpaid amount is paid In full. (d) Billing Errors If there IS a bIllIng error which can be corrected by makIng an adjustment on a subsequent bill, and Port Angeles agrees, BP A shall make the agreed-upon correction on the next bill. Otherwise, BP A will correct billIng errors by Issuing a revised bill. If the revised bill exceeds the initial bill, the amount of the revIsed bIll m excess of the InItIal bill shall be due and payable as If It were a bill rendered pursuant to this section 14. (e) Disputed Bills Except as provided m section 13, in the event of a disputed billIng, full payment shall be paid to BPA and the disputed amount noted. Except as provIded m sectIOn 13, rusputed amounts not paId are subject to the late payment prOVISions specified above. If It is determmed that Port Angeles IS entItled to the dIsputed amount, BPA shall refund the rusputed amount WIth mterest computed at the Interest Rate as reported on the first day of the month of receIpt of payment. BP A may render a revised bIll to Port Angeles if necessary to make an adjustment to resolve a ruspute. 15. UNCONTROLLABLE FORCES (a) Each Party will notify the other as soon as possIble of any Uncontrollable Force whIch may, m any way, affect the delIvery of power under this Agreement. The Party notifying the other of an Uncontrollable Force agrees 15 Contract No. 96MS-95027 e . to take all actions reasonably reqUIred to promptly restore its operations to the conditions existing before the occurrence of the Uncontrollable Force. (b) To the extent eIther Party IS prevented from meetmg ItS obhgatIOns under this Agreement by an Uncontrollable Force, both Parties will be excused from their respective obhgations without liability to the other for the duratIOn of the Uncontrollable Force and for the period reasonably required to restore the affected Party's operatIOns to conditIOns existing prIOr to the occurrence of the Uncontrollable Force. 16. RIGHT TO OBTAIN REQUIREMENTS SERVICE FOR LOAD SERVED BY PORT ANGELES (a) Subject to the prOVISIOns of sectIOns 17 and 29, should Port Angeles WIsh to receive service from BPA at the Priority Firm Power rate prior to the expiration of the Agreement for any portion of Port Angeles' load which is served by Declared Resources, Port Angeles must prOVIde BPA written notice not less than 24 months prIor to the requested start of service WIth an accompanymg purchase request for not less than 3 years. BP A shall have no oblIgatIOn to provldC' reqUIrements service to such load durmg the 24-month notice perIod. PrOVISIOn of requirements service to such loads shall be madE' pursuant to a separatC' agreement. subject to BPA's determmatlOn of the aVailabilIty of Federal resources to serve such loads and terms, and shall be subject to the conditIOns of contracts bemg offered by BPA for such requirements servlcC' at such time. Once BPA has made a contract offer mcludmg the prICE' of the service. Port Angeles shall have 30 days to accept such offer or Port Angeles' notlcC' wIll be extmgUlshed. Port Angeles agrees that BPA may elect to establIsh a separate PrIOrIty FIrm Power rate or rates for the prOVISIOn of requirements service to that portIOn of Port Angeles' loads which was servE'd With Declared Resources. 16 Contract No. 96MS-95027 . ) ~ , ' ". . . (b) The Parties agree that the obhgatIOn of Port Angeles to provIde BPA 24 months' prIOr notIce and an accompanying service request for 3 years to resume requirements service for loads not served under thIS Agreement will contmue in effect until 2008, notwithstandmg the expIration or termmatIOn of thIS Agreement. 17. CONSERVATION (a) Port Angeles agrees to: (1) develop a conservatIOn plan to acquire the conservatIOn that IS, by Port Angeles; determmation, cost effectIve to Port Angeles and aVaIlable to It; (2) provide a summary of that plan to BPA by December 31, 1996; (3) take all reasonable actIOn necessary to Implement the plan; and (4) certIfy and rpport annually Its conservatIOn achievements to BPA. (L) Eligibility for Conservation Incentives Port Angeles wIll rpcPlvP a consprvatlOn mcentlve, through a waiver of the ~4'month notlcP prOVISIOn of spctlOn 16 above, based on the amount of conservatIOn It achIPv('!' durmg tlw t('rm of thIs Agreement. Upon notice provided to BP A by Port Angplp!, by Fpbruary 15 of each year, Port Angeles may obligate BJ>A to provlClp PrIOrIty Firm Power m the next Contract Year under a separate agrp(lmcnt, at the applicable prevaIlmg rates for power offered m such y('ars, for servlC(' to portIOns of Port Angeles' retaIl load that BPA would not havp been oblIgated to serve m that Contract Year under the Agreement except for thIs sectIOn 17(b) of this Agreement. Such prOVISIOn of PrIOrIty FIrm Power may be m an amount up to tWIce the IdentIfied conservatIOn (expressNl m av(>rage megawatts) achIeved by Port Angeles 17 Contract No. 96MS-95027 . . , ,~ during the term of thIs Agreement and prior to the most recently completed Contract Year. 18. STRANDED COSTS (a) Except as provided m thIs section IS, nothing included in or omitted from this Agreement eIther creates or extmguishes any rights or obligations, if any, of eIther Party regardIng cost recovery subsequent to the terminatIOn or expiration of the PrIor Agreement, and such rIghts or oblIgations, if any, shall be as if thIS Agreement had not been executed. (b) WIth regard to the rIghts and obligations, if any, preserved pursuant to sectIOn IS(a), BPA agrees that the amounts of Declared Resources set forth in sectIOn S(a) shall be treated m the same manner as FIrm Resources included m Port Angeles' ExhIbIt I to the Prior Agreement, pursuant to sectIOn 12(b)(l4) of the Prior Agreement. (c) BPA agrees not to recover, m any form, stranded costs It beheves It may be entItled to from Port Angeles prIOr to September 30,2001, provided, however, that Port Angeles does not agree that BP A has the authOrIty to recover such costs, (<I) Nothmg m thIS Agreement IS Intended to Imply that Port Angeles would or would not have any oblIgatIOn to pay such stranded costs under any cIrcumstances. 19. HOLD HARMLESS Except aR prOVIded In thlR sectIOn, each Party hereto hereby assumes all hability for Injury or damage to perRonR or property arIsmg from the act or negligence of Its own ('mploye8s, agentR or contractors and shall mdemmfy and hold the other Party harmless from any lIabIlIty arIsmg therefrom. NotwIthstandmg the foregoing, no Party shall be hable, whether In contract, warranty, tort or strict lIability, to the IS Contract No. 96MS-95027 , . ". . . other Party for any Injury or death to any person, or for any loss or damage to any property, caused by or arisIng out of an electric dIsturbance on the second Party's electrIc system, whether or not such electrIc disturbance resulted from the first Party's neglIgent or wrongful act or omission, excepting only action knowIngly or intentionally taken, or failed to be taken, with the intent that Injury or damage should result therefrom, or which actIOn IS wantonly reckless. Each Party releases the other Party from, and shall Indemnify and hold the other Party harmless for, any such lIabilIty. As used in this sectIOn: (a) the term "Party" means, In additIOn to such Party Itself, Its dIrectors, officers, CIty Council members, and employees; (b) the term "damage" means all damage, Including consequential damage; and (c) the term "person" means any person, IncludIng those not connected WIth either Party to thIS Agreement. 20. ENTIRE AGREEMENT The terms and proviSIOns contaIned In this Agreement IncludIng the exhibits and all referenced documents constitute the entire agreement between the Parties and supersede all previous commUnICatIOns, representatIOns. or agreements, eIther oral or wrItten, between the PartIes WIth respect to the subject matter of this Agreement. 21. DAMAGES FOR FAILURE BY BPA TO DELIVER I n the event BP A fails to dehver to th(> Pomts of Dehvery the hourly amounts of FIrm Power whIch Port Angeles has scheduled or IS entItled to receIve under thIS Agreement, and such faIlure to d(>hv(>r IS not excused by an Uncontrollable Force or the faIlure of Port Angeles to procurp adequate transmISSIOn for such delIverIes. BrA shall pay Port Angeles (on the date payment would otherWIse be due under thIS Agreement) an amount for each megawatthour of such nondel1very equal to the commerCIally reasonablp prICP at whIch Port. Angeles was, or would have been able. to obtam the same amount and quahty of power (adjusted to reflect dIfferences In transmISSIOn costs, if any) mmus the applIcable payment under thIS Agreement; provided, if such sum as determmed above IS negatIve then It shall be deemed to equal zero. 19 Contract No. 96MS-95027 e e 22. ASSIGNMENT OF AGREEMENT Neither Party shall transfer or assign this Agreement, any part of this Agreement, or any mterest in this Agreement without the prior written consent of the other Party. Any consent or denial shall be in writing, and consent to any reasonable requests shall not be withheld. 23. WAIVERS Any waiver to any provIsIOn of this Agreement shall be in writmg, except as provIded in this Agreement or otherwise agreed. If a Party waives Its rIghts with respect to a default under, or matter arising from, this Agreement, the Party shall not be deemed to waive its rights with respect to a subsequent default or matter. 24. DISPUTE RESOLUTION (a) The Parties shall make a good faith effort to resolve any dispute over the rights, obligations, or duties of the Parties arismg under the terms of thIS Agreement wIthout resort to thIS section 24. Any such dIspute arIsmg under the terms of thIs Agreement whIch cannot be so settled will, consIstent WIth the terms of thIs prOVISIon, be subject to arbItratIOn. (1)) Any arbItratIOn shall be commenced WIthIn 180 days of when the dIspute arose upon eIther Party submIttIng to the other a NotIce of ArbItratIOn. The NotIce of ArbitratIOn shall stat(' the rights, oblIgatIOns, or dutIes In dIspute, the remedy sought and the nam(' and address of Its representatIve to select an arbItrator. Th(' Party receiVIng a NotIce of ArbItratIOn shall have 30 days from receIpt of such notIce to prOVide the other Party a reply whIch sets forth th(' remedy sought by the Party and the name and address of its r('pr('s('ntatIv(' to s('lect an arbItrator. (c) Th(' s('lectlOn repres('ntatlVes apPOInted pursuant to sectIOn 24(b) shall have 15 days from thr datr of their appoIntment to agree upon an arbitrator, who shall be a former Judge or attorney or engIneer famihar with contracts for the 20 Contract No. 96MS-95027 f' , ' '1. . . purchase and sale of electrIcity. If the selection representatives are unable to agree upon an arbItrator withm 15 days, then either Party may request that a Judge of the Umted States Court of Appeals for the Nmth Circuit appoint, within 30 days, an arbItrator who shall be a former Judge or attorney or engmeer famIlIar with contracts for the purchase and sale of electrIcIty. (d) The arbitrator shall have the dIscretion to establish a schedule and procedure for the arbItratIOn, and may conduct the arbitratIOn based on written submIttals. The arbItrator shall apply Federal law to resolve issues of law and may afford Parties any or all of the discovery rights provided for m the Federal Rules of Civil Procedure. (e) If a Party requests the payment of money, or demes that monies are owed, or requests an mterpretation of rIghts, obligations or duties whIch would result m momes being owed as a remedy in any arbitratIOn, then the arbItrator's deCision shall be bmding on the Parties. If either Party requests any other remedy as a resolutIOn of the dIsputed matter, then the deCISIOn of the arbitrator to the extent it adopts such other remedy shall not be bmdmg on either Party. (f) The deCISIOn of the arbitrator shall be rendered m wrltmg, and shall explam the decision and deCide all Issues necessary to reach the deCISion. The arbitrator's deCISIOn shall be rendered not later than 180 days after the arbitrator IS appomted. (g) Except as prOVided m sectIOn 24(h), any bmdmg deCision by an arbitrator shall be enforceable by a court of competent JurisdIction. (h) With respect to Issues which arIse under the Umted States Constitution, BPA preserves its right to seek judiCial resolutIOn notWithstandIng any deciSion by the arbitrator. Either Party may seek JudICial review of the arbitrator's bmdIng deCISIOn for fraud, misconduct, or mIsrepresentatIOn. 21 Contract No. 96MS-95027 . . . r' I (i) Each Party shall pay all the costs it mcurs during an arbItration, mcluding without limitatIon preparatIOn costs and attorney's fees. The costs of the arbitrator shall be shared equally by the Parties. 25. PURP A ACQUISITIONS (a) If during the term of this Agreement Port Angeles IS reqUired to acquIre the output of a resource pursuant to the Pubhc Utility Regulatory Pohcy Act (PURP A), or has been reqUired to acqUire such a resource prior to the Commencement Date, then in that event Port Angeles may use such resource to serve ItS Total Retail Load, and such resource shall be added to Port Angeles' Resource CommItment amounts pursuant to section 8(a). (b) Notwithstandmg sectIOn 16, should Port Angeles cease receivmg the output of a PURP A resource, then m that event Port Angeles shall provide BP A not less than 60 days' WrItten notice of such resource loss, Port Angeles' Resource Commitment shall be reduced by the output of such resource and the portion of Total RetaIl Load served by such resource shall be served under thIS Agreement at the rates set forth m Exhibit B. 26. AMENDMENT OF AGREEMENT Except as prOVIded m sectIon 13(a) for the substItutIOn of Fmal Rates for InItIal Rat(li', and m sectIOn 3 of ExhIbIt E, thIS Agreement may not be modified or am(lll(I(ld, except by wrItten agreement of the PartIes. 27. NOTICES AND OTHER COMMUNICATIONS WrItt(ln commUnICatIOns and mVOlces between the PartIes shall be dehvered m person, mailed. or transmItted electronIcally to the address and to the attentIon of th(l mchvHlual speCIfied below. EIther Party may change or supplement such address by wrItten notIce to th(l other Party withm 30 days of any changes: 22 Contract No. 96MS-95027 . . . " If to BPA: Bonneville Power Administration OlympIa Customer Service Center 1835 Black Lake Blvd. SW. Olympia, W A 98512-5623 Attn: Charles W. Forman Jr. - STO/OlympIa Account Executive Phone: 360-753-9027 If to Port Angeles: City of Port Angeles 321 E. Fifth Street P.O. Box 1150 Port Angeles, W A 98362-1150 Attn: Robert J. TItus, Director Phone: 360-417-4705 28. CONSERVATION REPAYMENT BP A agrees that durmg the term of thIS Agreement it will not seek to collect, pursuant to sectIOn 8 of the General Contract ProvIsions of any ConservatIOn Agreement between Port Angeles and BPA, the PrIor Agreement or any sectIOn of any predecessor or SImilar agreement, repayment from Port Angeles of any fundmg pursuant to such agreements provIded to Port Angeles by BPA prIOr to the Commencement Date of thl!,; Agreement. 29. RENEWABLE INCENTIVE I f Port Angele!'; acqUire!'; onr> or more nonhydro renewable resources on or after the Commencement Date, Port Angple!'; will be eligible for power under !'eparate agrepment to It!'; load m an amount pqual to the capability of !';uch renewable rp!';ources. Port Angeles must. notify BPA by February 15 prIOr to the start of the npxt Contract Year that It will rpduce Its hourly amount of Declared Resource under spctlOn 8(a) III an amount up to the e!'tlmated capability of such renewable r('!';ourcps. Such additIOnal amounts of Firm Power shall be purchased at the PrIOrIty Firm Power ratp III pffpctfor tlw Contract Year III whIch the purchases bpglll. 23 Contract No. 96MS-95027 . . 30. NEW LARGE SINGLE LOADS (a) Port Angeles agrees to mform BPA of any increase in a Consumer's load that mIght qualify as a New Large Single Load (NLSL). BPA's determmation of whether such load IS a NLSL will be made consistent with Exhibit G. (b) Port Angeles may choose to serve any load which qualifies as a NLSL and which IS ineligIble to receive Firm Power under this Agreement. Nothmg m thIS Agreement lImits Port Angeles' ability to serve any NLSL WIth power from BP A or from resources (mcluding WIthout lImItation generating and contract resources) provided by suppliers other than BPA. 31. STATUTORY PROVISIONS (a) Priority of Pacific Northwest Customers Port Angeles IS wIthm the category of Pacific Northwest customers for whose benefit the prOVISIOns of the sections 9(c) and 9(d) of the Northwest Power Act, as such laws may be amended or replaced, are to operate. (1) Prohibition on Resale of Power Port Angeles agrees that It IS subject to restflctlOns, pursuant to Federal law , on the resale of Firm Power purchased under this Agreement, and further agrees not to resrll such Firm Power m VIOlatIOn of such Federal law, as such laws may be amend('d or r('placed. (c) Insufficiency and Allocations Upon makmg thr d('t('rmmatlOn requIred under sectIOn 5(b)(5) of the Northwest Power Act, and upon compliance With all other statutory and contractual prOVISIOns pertment thereto, the BPA AdmmIstrator may take actIOns to r(lstrlct drhv(,rI(,s of Firm Power. Such restriction may take effect no earlier than 1 year aft(lr wfltten notice of such restflctlOn has been 24 Contract No. 96MS-95027 ,- . .' I - ""\, . . . receIved by Port Angeles and in no event shall such notIce be Issued by BP A prIOr to October 1, 1998. (d) Financial, Operating, and Rate Information Port Angeles agrees to provIde BP A copies of its FinancIal and Operatmg reports and current copIes of Its retail rate schedules. (e) Standards for Service As reqUIred by sectIOn 5(b)(4) of the Northwest Power Act, Port Angeles agrees to comply wIth the Admmistrator's available standards for service when interconnectmg wIth BPA's power and transmIssion system. 32. RETAIL WHEELING (a) Mandated Retail Wheeling Except for Port Angeles' load served pursuant to section 8, the PartIes agree that the rIghts, duties and obligatIOns, if any, between BPA and Port Angeles regardmg direct access by Consumers of Port Angeles to power suppliers other than Port Angeles which Port Angeles may be reqUIred to provide by any regulatory, legislative or JudICial body of competent JUrISdIctIOn, mcludmg without limitatIOn the Washmgton Utllit18s and TransportatIOn CommiSSIOn, and the> Federal Energy Regulatory CommiSSIOn, but excludmg Port Angeles' City CouncIl. shall be determmed as If the PrIOr Agreement had not been termmate>d, and as If tlw" Agreement had not been executed. Notwlthstandmg se>ctlOn 1 G of the General Contract PrOVISIOns of the PrIOr Agreement or any other prOVISIons of the PrIor Agreement dealing With payment of bills, Port Angeles shall have> no obligatIOn to pay all or any portIOn of a power bill rendered by BPA to collect any charge, penalty or amount attributable to a Consumer load covered by thiS sectIOn 32(a) unless and until the Parties either agree that such payment IS due and owmg, or there has been a final determmatlOn by a body of competent JurIsdIction, mcludmg completIOn of all appeals, that such payment IS due and owmg. Upon such final determmatlOn any payment due shall be rendered and paId 25 Contract No. 9GMS-95027 . . pursuant to sectIOn 14, wIth interest computed from the tIme access was granted to the final determination, calculated at the Interest Rate reported on the first day m the month when the final determination was made. (b) Voluntary Retail Wheeling (1) If Port Angeles notifies BPA of Declared Retail Wheelmg and that a Consumer has obtained direct access to a power supplier other than Port Angeles for the remaimng term of thIS Agreement, and Port Angeles has not been required to provIde such direct access by any regulatory, legIslatIve or judICIal body of competent JUrlsdIction other than Port Angeles' City Council, then m that event Port Angeles will pay BPA eIther the amount calculated usmg the formula below, or zero If the formula yields a negatIve number. Payment of such amount shall not satisfy the obligatIOns, if any, between the Parties preserved pursuant to sectIOn 18. A = (B - (C - D)) x E Where: A = th0 monthly paymf'nt duf' from Port Angeles to BPA; B = th0 amount paHl by Port Angele~ to BPA for FIrm CapaCIty and FIrm En0rgy durmg ~uch month, dIVIded by the amount of FIrm Enprgy (0xpr(>s~0d m dollars per megawatthour) delIvered to Port ^ng01e~ at th0 Pomt of DelIvery durmg such month; C = the prIC(, for el('ctrlclty (expressed m dollars per megawatthour) at th(' CalIforma-Oregon border (COB), for such month det('rmm('(l pur~uant to sectIon 32(b)(2); D = Th(' dollar~-per.megawatthour adjustment estImates the dIfference~ due to heavy load hour and lIght load hour 26 Contract No. 96MS-95027 ,f" . , . '.- . . transmission costs, In the characteristics of the price in C and the actual revenues. BP A and Port Angeles agree that thIS adjustment will be equal to $4 per megawatthour during the term of this Agreement; and E = the metered amount of energy (expressed In megawatthours) delIvered to the Consumer by supplIers other than Port Angeles or BP A during each month. (2) The monthly prices of electricity at COB shall be determined by calculatmg the arithmetic average of the dally settlement prIces for each month in the 12-month period m which the Consumer removes its load from Port Angeles, commencing with the month in whIch the Consumer began reCeIVIng service from suppliers other than Port Angeles or BP A (Removal Month), established on the New York Mercantile Exchange (NYMEX) for electricIty futures contracts for transactions at COB traded in the month prIOr to the Removal Month. The foregomg method of calculating the average prIce of electnclty at COB shall be used at each anniversary of the Removal Month to calculate the COB electrIcIty price for the followmg 12 months. If the NYMEX COB price IS not available, the PartIes shall agree on a comparable mdex and any necessary adjustments. (c) Changing the Formula for Voluntary Retail Wheeling On or after September 30, 1998, elthe.. Party may request a shift from the formula set forth m sectIOn 32(b)(l) to the followmg formula for purposes of calculatmg payment pursuant to sectIOn 32(b), whIch shift may occur only once durmg the term of thIs Agreement. A = (B - (C' - D')) x E Where: 27 Contract No. 96MS-95027 . e A, B, and E are as defined m section 32(b)(1); C' = the mid-Columbia index price for futures contracts as published daily in the Wall Street Journal; and D' = the adjustment to the mid-Columbia index price for futures contracts for dIfferences, if any, between such index price and delIverIes made 60 percent durmg heavy load hours and 40 percent during lIght load hours. The foregomg formula shall be Implemented consistent wIth the procedures set forth in sectIon 32(b)(2), commencing on the next anniversary of the Removal Month. Such request shall be Implemented only If the Wall Street Journal IS publishmg on a dally basis a mid-Columbia index price for futures contracts for firm power. (d) Voluntary or Mandatory Wheeling by BPA I f a Consumer obtains dIrect access to a power suppher other than Port Angeles, either by BPA agreeing voluntarily to provide the Consumer such dIrect access or by BPA making a dIrect sale to such Consumer; or b<>cause a regulatory, legIslatIve or JudICial body of competent )UrIsructlOn has r<>qulred BPA to prOVIde> such (hrect access, then m such event Port Angeles shall be relieved of any liability to BPA, if any, pursuant to sectIOns 32(a), 32(b) and 32(c). (<>) Notification of Retail Wheeling Port Angeles shall notIfy BP A of any Consumers for whIch Port Angeles has prOVIded dm'ct access to power supphers other than Port Angeles. The notice shall Include the amount, or estImated amount, of megawatthours that have been granted access In each month. Such notification shall include 28 Contract No. 96MS-95027 .~. . ' 'It . . I Port Angeles' assessment of whether access was allowed pursuant to section 32(a), 32(b) or 32(d). (f) Application of Retail Wheeling to Other Consumer Load The application of thIs sectIOn 32 shall not be affected by the treatment of a Consumer's load, or any portion thereof, as Other Consumer Load. (g) Application to NLSL SectIOns 32(a), 32(b) and 32(c) shall not apply to any load whICh IS a NLSL, and Port Angeles IS not reqUIred to give BPA notice of service to NLSL's under sectIOn 32(f). 29 Contract No. 96MS-95027 . . .s 33. SIGNATURE CLAUSE Each Party and their signatorIes hereto represent that each has been duly authorized to enter into this Agreement on behalf of the Party for whom they sign. IN WITNESS WHEREOF, the Partles hereto have executed this Agreement. UNITED STATES OF AMERICA Department of Energy Bonneville Power AdministratIOn By ~1r/:~1 Account Executive Name (Pnnt/Type) Charles W. Forman Jr. Date ~~ 1J (7'9'6' CI k- Name WranIITypf') Prosner OstrowskI Title> Mavor Date> ~~-t-..~ j jqq ((J (~'CPLA!\:.MPSD-W \MPSD\CT\9502i DOC) 30 Contract No. 96MS-95027 - '-.. . . J Exhibit A, Page 1 of 2 Contract No. 96MS-95027 CIty of Port Angeles Effective on the Commencement Date POINTS OF DELIVERY 1. DAISHOWA 69 kV POINT OF DELIVERY (a) Location The point located in BPA's Port Angeles Substation where the 69 kV facilities of the parties hereto are connected. (b) Voltage The nominal system voltage is 69 k V. (c) Metering Metering is located in BPA's Port Angeles Substation, in the 69 kV circuit over which such electric power flows. 2. PORT ANGELES POINT OF DELIVERY (a) Location The pomt located in BPA's Port Angeles SubstatIon where the 69 kV facilities of the partIes hereto are connected. (b ) Voltage The nommal system voltage IS 69 kV. (c) Metering (1) Metermg IS located in BPA's Port Angeles SubstatIOn, m the 69 kV CIrCUIt over whIch such electnc power flows. (2) Metermg IS located m the CIty of Port Angeles' Morse Creek Hydroelectnc GeneratIOn ProJect, m the 0.48 kV circUIt over which such electrIc power flows. (d) Exceptions (1) The period of servIce for metermg point (2) shall only be m effect when the City has a contract for the transmission of the output from the Morse Creek HydroelectrIc GeneratIOn Plant. (2) There shall be an adjustment for losses between the Pomt of Delivery and metermg point (2), and such adjustment shall be specified in correspondence transmitted between Bonneville and the City. Contract No. 96MS-95027 . . , I ExhibIt A, Page 2 of 2 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date (3) Mter adjustment for losses to metermg point (2) as specified above, amount of electric power delivered at Port Angeles Point of Delivery shall be determined by subtractmg amounts measured at metering point (2) from CoincIdental amounts measured at metermg point (1). (4) The revenue meters at metering point (2) are owned by the City. 3. RAYONIER POINT OF DELIVERY (a) Location The point located in BPA's Port Angeles Substation where the 69 kV facilities of the parties hereto are connected. (b) Voltage The nominal system voltage IS 69 kV. (c) Metering Metermg IS located m BPA's Port Angeles SubstatIOn, m the 69 kV cIrcuit over whIch such electrIc power flows. EDaVls ed 08/16/96(MSWord6 Oc-(G \MPSS\egd\chuck\pbl\pod_exh\PAPSDOOI DOC) Contract No. 96MS-95027 . '. . . Exhibit B, Page 1 of 1 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date RATE SCHEDULES AND GENERAL RATE SCHEDULE PROVISIONS (MCPLAN.MPSD.W'\MPSD\CT\95027 DOC) Contract No. 96MS-95027 . . ExhIbIt C, Page 1 of 2 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date PRODUCT SELECTION 1. PURPOSE OF THIS EXHIBIT The purposes of this exhibit are to Identuy the particular products and servIces that Port Angeles will be purchasmg from BP A durmg each Contract Year and provide additional information needed to implement the sales arrangement. 2. PRODUCT DESCRIPTIONS AND PURCHASE AMOUNTS Port Angeles agrees to purchase the products below until the Agreement expires, is terminated or this exhibit is revised by the Parties. Rates for the products will be as set forth in Exhibit B. (a) Firm Power BP A will provide Port Angeles amounts of Firm Power as determined pursuant to the Agreement at the 1996 PrIOrIty Firm Power (PF -96) rate as set forth in Exhibit B. (b) Load Shaping Service BP A will provIde Port Angeles Load ShapIng service, as defined In ExhIbit B, at the rate set forth in Exhibit B. (c) Load Regulation Service BP A WIll provIde Port Angeles Load RegulatIOn servIce, as defined in ExhIbit B, at the rate set forth In ExhibIt B. (d) Control Area Reserves BP A will provIde Port Angeles wIth Control Area Reserves (CAR), as defined in Exhibit B, at the rate set forth in Exhibit B for the followmg resources: Peak Demand Name of Resource and Descri tion Location (MW) ............MgE~.~. ~~~.~.~!..ffy.~~.:.~.~~~t.~~~..n~!l:t...........~.......................... ..........:... ...........QA~.9............... PacIfic Rim Landfill, PURP A ProJect, . ; 200kW each ..............................................t.~2..~P.:~.t.~...............................................l......................................!........................................... ......................................!j;!~Q~..P..!:9j~.~!.l?......................................f......................................j................~.~.:.!................ CAR (partial service) may be substituted for CAR (full servIce) for any of the above resources upon agreement wIth BP A on how the reserves supplied to Port Angeles/Consumer are provided. Contract No. 96MS-95027 . \ . . ExhIbIt C, Page 2 of 2 Contract No. 96MS-95027 City of Port Angeles EffectIVe on the Commencement Date (e) Control Area Reserves for Interruptible Purchases BP A wIll provIde Port Angeles wIth Control Area Reserves for Interruptible Purchases, as defined in Exhibit B, at the rate set forth in ExhIbit B. Upon agreement of the Parties, such reserves may be provIded by Port Angeles or a third party. In addition to any products requITed to be purchased pursuant to this section 2, Port Angeles may elect to purchase other products available to It from BP A by submitting a revised Exhibit C by February 15 prior to the start of the Contract Year. BP A may charge for such products and services at whatever rates are in effect at that time. (MCPLAN-MPSD-W'\MPSD\CT\95027 DOC) Contract No. 96MS-95027 , , . . ExhIbIt D, Page 1 of 2 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date RESOURCE EXHIBIT 1. EXHIBIT PROVISIONS Port Angeles agrees to provide to BP A the following informatIOn. 2. HOURLY RESOURCE COMMITMENT AND SCHEDULE Port Angeles' Hourly Resource Commitment from the Commencement Date of the Agreement to September 30,2001, is set forth in the tables below. ThIS is the amount of energy that Port Angeles agrees to provide to meet that portion of its Total Retail Load. The Hourly Resource Commitments cannot be changed during the term of the Agreement except as proVIded in sections 16, 17,25, and 29 of the Agreement. Hourly Resource Commitments (MW) - LPM ....~y.....:..Q.9..T...~..N.QY.~..Q~~..L~A.~.l..~.~..l..~~..LAf~..l..~X.l..~Y.:~.L~!:!.~..i..~y':q.l..~~f.. ..!.~~!..!....}:?.....~....).?......L.}:?......:....}~....LJ~.....~.....}:?.......L....w.....i....}9......~......~......;......W....L....u.....l...)L... 1998 i 12 : 12 12; 13 ; 12 i 12 i 10 i 10 i 9 ~ 10 : 11 i 11 ...... .........,............... ;.................,....... .........................,.................,..................~.. .. ........,................., .. eo ............................................................ 1999. 12 i 12 : 12 13 i 12 12; 10 . 10 : 9 ~ 10 ill' 11 .............f...............,....... . ...,. ............,...............0)0................,..................,................-)0.................,................, ............,.................,................ ..~9.9.9...;.. .. ~:?m..:.....}.~.. _m..P. : 1.~.....~......~.~.....i....).?.....:....}.Q......l. .. ~9.....L.....~......:....}Q.. ..:......P .....l...J~..... 2001 i 12 . 12 12; 13 12: 12 ; 10 i 10 . 9 10' 11 i 11 Hourly Resource Commitments (aKW) - CSPE ...~y....!..Q.9..T...LN.QY.l..Q~~..;..~A.~.l..~~..~..~~..~..Af~..~..~x.L~.y.N..L~y.~..~..~y.g..i..~~f.. 1997 i 1355 i 1355 i 1355 1355 i 1355 i 1355 i 1116 i 1116 i 1116 : 1116 i 1116 i 1312 ...............i.................,.................,............... -I ...............->.................,..................,.................,..................,.................f...............,.................,................ ..J~~~..J.}.?}.~..L.!.?}:?..l.}~~.~..;..P.~.~.L~}}.?...L~.?..~:?....LJ~J~...L.~?~....i...~J~...L..~.'?:?...L...~?~....i...U.~.'?... ..!.~~~..!...u:!J..!...!.!.~.'?..:..}.~.:!7...~...P.:!?.-'...U.~.'?...l...U:!?...~.m:!~7...~....:!?.7....l...:!~?m~m.~?.?...L...:!7g....l....~:!~... 2000: 549 . 549 549; 549 : 549 . 549 ; 449 i 449 . 449 : 449 i 450 : 528 .................................;................,.,............. '0 .. ..........................,.................................y.... ...........,................. .. .........................,.,............... 2001 : 528 i 528 : 528 . 528 . 528 : 528 : 431 . 431 1 431 : 431 : 431 ; 506 Note: CSPE figures are monthly average energy before losses to be delivered during heavy load hours. 3. USE OF PORT ANGELES'S RESOURCES Port Angeles may, at any time, simultaneously purchase power under the Agreement from BP A and sell firm power and nonfirm energy from ItS own resources. Port Angeles may use its own resources, purchase power products or services from BP A under other contracts, or purchase power, power products or services from other prOVIders, both to meet its Resource CommItment and for any other purpose. Contract No. 96MS-95027 . . , l . . ExhibIt D, Page 2 of 2 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date 4. ADDITIONAL INFORMATION For purposes of assIstIng BP A as a Control Area operator, Port Angeles agrees to proVIde BP A the folloWIng information regardIng resources located in its Contractual Control Area or that may be used to serve its Total Retail Load in the next Contract Year. Such information shall be submitted to BPA as set forth below. (a) the name of each individual generating resource that is located in BPA's Control Area whIch Port Angeles operates or schedules, and a best estunate of its monthly peak. and energy capabihty; (b) the name of each individual generating resource that is located outside BPA's Control Area which Port Angeles operates and schedules, and a best estimate of its monthly peak. and energy capability; (c) details of each contract purchase and a best estImate of its monthly peak. and energy capability; and (d) the name of each generatIng resource located in Port Angeles' Contractual Control Area whIch IS not scheduled or operated by Port Angeles, and a best estimate of its monthly peak and energy capability. 5. RESOURCE ADDITIONS Port Angeles shall notify BP A as soon as practIcable regardIng new generatIng resources owned or operated by a Consumer, Independent power producer or other utility which WIll be located in Port Angeles' Contractual Control Area and which will be connected to Port Angeles' distrIbutIOn facilities or directly to Port Angeles' POD. (MCPLAN-MPSD-W \MPSD\CT\95027 DOC) Contract No. 96MS-95027 . . Exhibit E, Page 1 of 8 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date POWER SCHEDULING 1. PURPOSE OF THIS EXHIBIT The purpose of this exhibit IS to describe power scheduling procedures for delivery of BP A power to tbe Customer under the Agreement. This exhibit is a generIc exhibit that applies to all scheduling customers and implements the provisions of the Agreement.. 2. EXHIBIT PROVISIONS (a) Scheduling Principles The procedures in this exhibit are intended to achieve the following principles: (1) Promote efficient system operations and maximize power production. (2) Provide workable scheduling procedures for the timely delivery of power, thereby promoting efficient power transactions. (3) Reflect the terms and conditions of the Agreement. (b) Control Area Requirements (1) In order to schedule power, a Customer must either operate a Control Area or designate a Host Control Area (HCA) as defined by the North AmerIcan Electric Reliability Council (NERC) to implement its schedules. The HCA may be the sending Control Area, the receiving Control Area, or an mtermedIary Control Area. BPA wIll be the HCA for any transactIOn mvolvmg eIther: (A) generatIOn located within BPA's Control Area; or (B) service to a load within BPA's Control Area. (2) If BP A is the intermediary Control Area in a single transaction or set of transactions, the Customer may designate a HCA other than BP A. The Customer must inform BP A of its choice no later than the time of preschedule. BP A will have no obligation to accept any schedule from any HCA that does not agree to abide by the scheduling requirements set forth in this exhIbit. Contract No. 96MS-95027 , j . . ExhIbit E, Page 2 of 8 Contract No. 96MS-95027 CIty of Port Angeles EffectIve on the Commencement Date (3) If the Customer has desIgnated a HCA for a single transactIOn, it must remam the HCA for the duratIOn of the schedule. In the event the Customer fails to identIfy a HCA for its next transaction, the desIgnated HCA for the Customer's last transaction wIll be desIgnated as the HCA for the next transactIon except in those CIrcumstances in which BPA would be the desIgnated HCA as provIded in section 2(b)(1), above. The Customer may desIgnate a single HCA for all of its transactions, and any such HCA wIll remam so designated until the Customer notifies BP A that It has selected another HCA. (4) Even though all partial requirements customers are reqUITed to submIt schedules to BP A, only those utilities that operate their own Control Areas can implement schedules (as that term is used by NERC). (5) Any partial requirements customer for whom BPA IS the HCA must schedule energy to and from BP A as if the Customer operates ItS own Control Area, i.e., the Customer has a Contractual Control Area for purposes of scheduling power under this exhibit. (6) Customers usmg a HCA other than BPA must establIsh and verIfy schedules wIth Control Areas through the HCA, but the HCA IS responsible for Implementmg and assuring the accuracy of the schedule. (c) Coordinating Requirements (1) All schedules must be provIded orally to BPA on Workdays (defined as any day both parties consIder a workday). (2) Schedules apply to the followmg day or days (If the followmg day or days are not Workdays). (3) Scheduled hourly values are to be referenced by the "hour ending" time on the 24-hour clock (l.e., the schedule for 2 to 3 p.m. IS referred as the "hour ending 1500" or, more commonly, the "1500 hour"). (4) Unless otherwIse agreed by BPA's power schedulers and BPA's system operators, all schedules wIll be effectuated on an hourly basIs using the standard 20-mmute ramp perIOd centered on the hour (begmning 10 mmutes prIOr to the hour and endmg 10 mmutes after the hour). Contract No. 96MS-95027 e e ExhibIt E, Page 3 of 8 Contract No. 96MS-95027 CIty of Port Angeles Effective on the Commencement Date (5) All schedules wIth BP A are to be stated m Pacific tIme (PT) and are to begm wIth the 0100 hour. (6) The Customer agrees to submit all hourly prescheduled quantities of the product or servIce in whole megawatthour amounts. (d) Prescheduling Requirements Prescheduling IS the process of establishing hourly schedules through the following Workday(s). (1) Preschedule Submissions (A) The Customer agrees to submit schedule(s) covering all transactions into, out of, or within BP A's Control Area except as provided in section 2(d)(1)(G), below. (B) BP A may require the Customer to submIt estimated preschedules prIOr to the final preschedule. (C) The Customer agrees to submit a final hourly preschedule for the next day or days by 1400 hours each Workday. (D) BP A may require the Customer to submIt estImated dally schedules of energy for an ensumg perIOd up to 10 days in length. (E) The maXImum number of pre schedule days is 4 days, except that by mutual agreement BPA may accept preschedules for up to 5 or 6 days as needed to accommodate a Customer's special !,?cheduling requirements for contiguous weekend-holiday perIOds. (For example, BP A will accept schedules for the period ThanksgIving Thursday through Monday if the Customer observes the Friday after Thanksglvmg as a holIday). (F) Customers must identify that portion of theIr hourly preschedule submittals attributable to load shaping if they: (i) are in another Control Area and purchase any BP A load shaping product; or (ll) purchase partial load shaping. Contract No. 96MS-95027 , I e . , . Exhibit E, Page 4 of 8 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date (G) Any Customer operating a Contractual Control Area and purchasIng BPA's full load shapIng product may not schedule: (1) any power under the Agreement, If the Customer has chosen to declare Its hourly Resource CommItment In lieu of specifying purchase quantities (in megawatthours); or (ii) load shaping amounts for power under the Agreement, if the Customer has specified purchase quantities (in megawatthours). (2) Information Required to be Included in Any Preschedule Any schedule submitted to BP A must include, at a minimum, the follOWIng information: (A) the HCA, If the Customer Itself does not operate a Control Area; (B) the supplIer, receIver, and wheeling entitIes Involved in the transactIOn; (C) the megawatt amount of the schedule; (D) the startIng and endIng times for each schedule; (E) the point of receipt/delivery for the transactIon; (F) the type of product or servIce beIng scheduled, Including a statement as to whether the energy being scheduled IS firm for, or recallable durIng, the delivery hour; and (G) the name of the entIty provIding energy and transmISSIOn reserves for the transaction. (3) Preschedule Amounts The Customer's prescheduled amounts must satisfy the following cnteria: (A) The Customer's total preschedule amounts may not exceed its purchase amounts as established prior to the preschedule period. , Contract No. 96MS-95027 , , . . ExhIbit E, Page 5 of 8 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date (B) The Customer may not preschedule heavy load hour energy in excess of Its monthly established purchase amount for generation demand. If the Customer is scheduling its Resource Commitment and not its power purchases under the Agreement, the Customer may not preschedule Its resources in any heavy load hour in such a way as to cause BPA's obligation to provide power under the Agreement to exceed an amount of firm power equal to the Customer's Total RetaIl Load minus its monthly Resource Commitment for peaking. (C) The Customer may not preschedule amounts of light load hour energy in amounts less than 50 percent of the Customer's average hourly amount of its daily light load hour purchase amount under the Agreement. If the Customer is scheduling its Resource Commitment and not its power purchases under the Agreement, the Customer may not schedule power from its own resources such that BPA's firm power obligatIOn under the Agreement drops below 50 percent of the Customer's average hourly power obligatIOn during light load hours based on the Customer servmg Its load m the amount of Its Resource CommItment. (D) The Customer may reshape Its energy deliveries from its specIfied purchase amounts only If the Customer has purchased the rIght to reshape energy deliverIes as an unbundled service. (E) By mutual agreement, BP A and the Customer may reshape energy amounts beyond daily quantIties and demand limits specIfied in the Agreement due to adverse operating conditions on eIther party's system. BPA's agreement to reshape demand and energy amounts will not relIeve the Customer of paYIng applicable unauthorized increase charges, nor wIll the agreement relieve the Customer of its purchase obligation as defined by the terms of the Agreement. (e) Changes from Preschedule (1) The Customer may not change the hourly amounts of its preschedules except by mutual agreement unless the Customer has purchased the right to change its preschedules as a separate unbundled service. Notwithstanding such right, the Customer agrees to endeavor to avoid requests for changes from preschedule. Contract No. 96MS-95027 . I , > . . Exhibit E, Page 6 of 8 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date (2) To the extent changes from the preschedule become necessary, the Customer must submIt such requests no later than 30 mmutes prior to the scheduled hour for which the change becomes effective. (3) No later than 30 minutes before the delivery hour, each customer with its own electrical (as opposed to contractual) Control Area who is purchasmg load shaping must adjust its preschedule to account for changes m its forecast of total retmlload smce the time of preschedule. (4) Multihour changes from preschedule are to specify an "hour beginning" and an "hour ending" and are never to be stated as "until further notIce." (5) Upon a customer's request, BPA will consider mIdhour changes from preschedule, but only under critical operating conditions such as loss of a resource or transmission path. These types of schedule changes must be made directly with the BPA dispatcher Immediately following the event precIpItatmg the change. The Customer and BP A must agree to the effectIve tIme, ramp duratIOn, mtegrated, and revised net schedules for mIdhour changes. MIdhour schedule changes wIll not be made for economic or load shapmg purposes. Such changes are subject to applIcable charges. (f) Emergency Requirements (1) Loss of Generating Resource The Customer agrees to adhere to the followmg reqUIrements for any resource that It operates and agrees to ensure, through contractual arrangement, that any entIty operating a resource on its behalf likeWIse agrees to the following: (A) The operating entIty (entity who lost the resource) will notify BP A and affected customers as quickly as possIble of the resource loss. In order to be billed for the use of a reserve, instead of being billed for unauthorIzed increase under the Agreement, the operating entity must notify BP A of the resource loss within 15 mmutes of the outage. (B) The operating entIty WIll establish the effectIve tIme (mIdpoint of ramp) of schedule change. Contract No. 96MS-95027 '. > " , . . ExhIbit E, Page 7 of 8 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date (C) All parties to a transactIOn shall termmate or modify schedules, as reqUlred, as of the established effective time, and agree on integrated and revIsed net schedules. (2) General Provisions Regarding Emergencies BP A and the Customer agree to expedite communications to aVOId accumulation of inadvertent power flows or net schedules which place a control burden on other Control Areas. (g) After-the-Fact Reconciliation Any customer that operates its own Control Area agrees to reconcile all schedules and accounts at the end of each month consistent with the following principles: (1) The Customer and BP A will verIfy all scheduled energy transactions as to product or type of servIce, hourly amounts, daily and montWy totals and, where appropriate, diurnal energy totals. (2) The Customer and BP A WIll agree on current product balances, loss calculations and loss schedules, where appropriate. (3) The Customer and BP A WIll reconclle all pool errors and inadvertent energy m a timely manner. 3. EXHIBIT REVISIONS The provIsions in thIS exhIbit may be revIsed as provIded below: (a) BP A may revise the followmg sections of thIS exhibIt to reflect changes in BPA's products. Any such exhIbIt reVISIOn will take effect on the first day of the next Product PerIod: · sectIOn 2(d)(1)(F-G) . section 2(d)(3)(A-D) · section 2(e)(3) (b) BP A may revise section 2(b )(5) of this exhibit upon the written agreement of BP A and at least 80 percent of customers that have Contractual Control Areas. Contract No. 96MS-95027 , I . . Exhibit E, Page 8 of 8 Contract No. 96MS-95027 CIty of Port Angeles EffectIve on the Commencement Date (c) BP A may revise the remammg provisions m this exhibIt at any tIme effective upon the WrItten agreement of BP A and at least 80 percent of the number of customers that operate Control Areas m accordance wIth NERC standards; or customers that have Contractual Control Areas and purchase on a Partial RequIrements basis, at the tIme of such revision. (d) At any time, BPA may revise all provisions except for those listed in sectIOn 3(a) above, to comply with established NERC standards. Provisions listed in section 3(a) above will be changed to comply with NERC standards at the beginning of a new Purchase Period. (MCPLAN-MPSD,W'\MPSD\CT\95027.DOC) Contract No. 96MS-95027 . . Exhibit F, Page 1 of 4 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date POWER AMOUNTS 1. Exhibit Provisions (a) Power Under the Agreement (1) The prOVISIOns below establish Port Angeles' Contract Obligation to purchase Firm Power under the Agreement and the allowable changes (Authorized Deviations) from the obligation for each hour and month. Port Angeles' Contract Obligation for a given time period is compared to the quantity of Firm Power delivered to Port Angeles at Points of Delivery pursuant to the Agreement (Measured Amount) for that period, and which cannot be assigned to other agreements, to determme the amount of deviation, if any. Any deviations that exceed the authorized amounts are considered unauthorized. Unauthorized posItive deVIations are billed according to the rate schedule for Unauthorized Increases. Unauthorized negative deViations are billed at the applicable rate as if Port Angeles had taken delIvery of that power. (2) Hourly deVIations are determmed first, followed by monthly calculations, WIth the calculations ensurmg that unauthorIzed deVIations are only charged once. The calculatIOns are performed separately for each dIUrnal perIOd. (3) Port Angeles' Contract Obligation shall be determmed as set forth below. (A) Contract Obligation for Hourly Firm Power Purchases (1) Hourly Contract Obligation The Total Retail Load, minus the sum of the Hourly Resource Commitment established by Port Angeles through the procedures of ExhIbit D and the estrmated or actual amounts of Other Consumer Load mcluded in Total Retail Load as determined pursuant to section 9(a) of the Agreement, sets the Hourly Contract Obligation to purchase Firm Power under the Agreement in that hour. (ii) Authorized Hourly Negative Deviation Each kilowatthour (kWh) that the Measured Amount is less than the Hourly Contract Obligation, but not m Contract No. 96MS-95027 , , e e ExhIbIt F, Page 2 of 4 Contract No. 96MS-95027 City of Port Angeles Effectlve on the Commencement Date excess of the greater of 1 megawatthour or 5 percent of the Hourly Contract OblIgatIOn IS an AuthOrIzed Hourly Negative DeVIation. (iii) Authorized Hourly Positive Deviation Each kWh that the Measured Amount is more than the Hourly Contract Obligation, but not in excess of the greater of 1 megawatthour or 1 percent of the Hourly Contract Obligation is an Authorized Hourly Positive DeVIation. (B) Unauthorized Deviations in Hourly Amounts (i) Unauthorized Hourly Negative Deviation Each kWh that the Measured Amount is below the Hourly Contract Obligation minus the Authorized Hourly Negative Deviation is an Unauthorized Negative Deviation and WIll be billed at the applicable HLH or LLH rate as If Port Angeles had taken delIvery of that power. (Ii) Unauthorized Hourly Positive Deviation Each kWh that the Measured Amount exceeds the Hourly Contract OblIgatIOn plus the AuthOrIzed Hourly PosItlve DevIatlon IS an Unauthorized Positive DeVIatIOn and is billed as an UnauthorIzed Increase. (C) Monthly Contract Obligation Port Angeles' Monthly Contract Obligation for each dmrnal perIOd IS Port Angeles' Total Retall Load for each dmrnal perIOd durmg the month, mmus the sum of the Hourly Resource Commitments for each dmrnal perIOd durmg the month and estlmated or actual amounts of Other Consumer Load for each diurnal period durmg the month included in Total RetaIl Load as determined pursuant to sectIOn 9(a) of the Agreement. The Authorized Monthly Positive DeVIatIOn and the AuthorIzed Monthly Negative DeVIation are 1 percent of the Monthly Contract Obligation. (D) Unauthorized Monthly Deviations Each kWh that the sum of the absolute value of the Authorized Hourly Negative Deviation is greater than 1 percent of the Monthly Contract ObligatIOn m each diurnal perIOd is an Contract No. 96MS-95027 , 1 e . ExhIbIt F, Page 3 of 4 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date Unauthorized Monthly NegatIve DeviatIon and wIll be bIlled at the applicable HLH or LLH rate as If Port Angeles had taken delivery of that power. Each kWh that the sum of the Authorized Hourly PosItive Deviations exceeds 1 percent of the Monthly Contract Obligation in each diurnal period is an UnauthorIzed Monthly Positive Deviation and will be billed for an Unauthorized Increase. (E) Contract Obligation for Demand The Contract Obligation for Demand will be the greater of Port Angeles' Measured Demand on BPA at the time of BPA's MontWy System Peak or Port Angeles' Total Retail Load on BPA's Monthly System Peak, minus the sum of that hour's Hourly Resource Commitment, and estimated or measured amounts of Other Consumer Load for such hour. (4) Optional Products NONE (b) Billing Adjustments and Billing for Other BPA,Services (1) Outage Credit BP A wIll provide Port Angeles a credit on its monthly power bill for a proportIOnate amount of the demand charges for generatIOn whenever a scheduled mamtenance outage of 30 minutes or more at one of Port Angeles' Points of DelIvery is for maintenance of facilities used by BP A to serve Port Angeles; and BP A or the transferor does not provIde full servIce to Port Angeles at that Point of Delivery or other Points of Delivery durmg the scheduled outage period. The credIt will be based on the relatIOnshIp between the number of hours of outage and the number of hours m the bIlling month. (2) Load Adjustment BP A WIll adjust Port Angeles' energy quantities as measured at Port Angeles' metermg point for losses between that metermg point and Port Angeles' points of delivery (PODs), as provided in the TransmisSIOn Agreement. (3) Inaccurate Metering Adjustment BP A will adjust Port Angeles' power bill to correct for maccurate metermg if any meter used to measure power provided under the Agreement fails to register, or if any measurement made by a meter used to deliver power provided under the Agreement by more than Contract No. 96MS-95027 , t e . ExhIbIt F, Page 4 of 4 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date 1 percent from the measurement made by a standard meter during a test of meter accuracy, or a meter reading error occurs. Such adjustment WIll be limIted to the 6 months prior to discovery of the error by BP A, for an amount of time up to the duratIOn of inaccurate metermg. (4) Net Billing Upon agreement of the Parties and, subject to the IrmitatIOns set forth in any billing agreements between Port Angeles and BP A, payments due one Party may be offset agamst payments due the other Party under all contracts between BP A and Port Angeles. All payments under such contracts that are due to one Party in any month may be offset against all payments due the other Party in such month. (MCPLAN-MPSD-W \MPSD\CT\95027 DOC) Contract No. 96MS-9562,7 , j e . Exhibit G, Page 1 of 6 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date NEW LARGE SINGLE LOADS 1. PURPOSE OF THIS EXHIBIT The purpose of this exhibit IS to descrIbe the process that BP A will use to: (a) make "contracted for, committed to" (CF/CT) determmations, (b) make facility determmations; (c) identify New Large Single Loads (NLSL); and (d) record the outcome of any such determinations and identifications. This exhibit implements the provisions of section 30 of the body of the Agreement. 2. EXHIBIT PROVISIONS (a) "Contracted for, or Committed to" Determinations (1) SectIOn 3(13)(A) of the Northwest Power Act reqUIres BP A to make "contracted for, or commItted to" (CF/CT) determmatIOns. (2) The CF/CT determmatIOn process IS as follows: (A) The Customer shall make a request to BPA for a CF/CT determination; (B) BP A wIll work WIth the Customer to identify all contractual or electriC power servIce arrangements m place as of September 1, 1979. Such arrangements are exemplified by a contract for servIce effective prior to September 1, 1979, or a demonstrable "paper trail" that shows a clear commitment for BP A to serve the Customer's load with an agreed-upon amount of power; (C) BPA will inform the Customer of its CF/CT determination by letter; and (D) If the CF/CT request is granted, the Parties WIll note the CF/CT determination in section 2(g) of this exhibit. (3) As a result of the CF/CT determination, BP A will provide power to that load for the life of the facility at the rate applicable to the rest (non-NLSL) of the Customer's load. Contract No. 96MS-95021 , ~ . . ExhIbit G, Page 2 of 6 Contract No. 96MS-95027 City of Port Angeles EffectIVe on the Commencement Date (b) Facility Determinations (1) The purpose of a facility determmatIOn IS to determme If, and when, the energy consumption at a Consumer's facility causes the facility to be desIgnated as a NLSL. (2) BP A will work with the Customer to make a reasonable facility determinatIOn prior to the time the Customer begins imtial service to a new large industrial load, or prior to the expansion of service of an existmg large industrial Consumer. (3) BP A, the Customer, and its Consumer will cooperate in the exchange of informatIOn to determme the general features of the operation including: (A) the SIze of the load; (B) the type of process; (C) the schedule for development; (D) the locatIOn of the load; and (E) the electrical servIce requirements including meters and a contract for power servIce. (4) The followmg is the list of criteria that BPA will use m makmg a faCIlity determmatIOn: (A) whether the load IS operated by a smgle Consumer; (B) whether the load is m a smgle locatIOn; (C) whether the load servIces a manufacturmg process which produces a single product; (D) whether separable portions of the load are independent; and (E) whether the load is contracted for, served as, or bIlled as a smgle load under the Customer's customary bIlling and service policy and other relevant factors. Contract No. 96MS-95027 ~ , I . . ExhIbIt G, Page 3 of 6 Contract No. 96MS-95027 CIty of Port Angeles EffectIve on the Commencement Date (5) When the plant design and electrical servIce plans are complete, the Customer shall submIt a formal request for a facIlity determination. (6) BP A will review the submIttal, request any additional information, and then make its determmation. (c) NLSLs (1) Under the Northwest Power Act, BPA has the right to determine if a load is, or has become, a NLSL. (2) Only those facilities whose primary production or commercial function falls mto one of the following categories, as defined in the Standard Industrial Classification Manual (1987), U.S. Office of Management and Budget, may be classified by BP A as NLSLs: (A) AgrIculture, Forestry, and Fishing; (B) Mimng; (C) Construction; (D) Manufacturmg; (E) TransportatIOn, Communications, Electric, Gas, and Samtary Services; and (F) Wholesale Trade. (3) Loads associated wIth the following types of activitIes will not be consIdered NLSLs IrrespectIve of theIr SIze: (A) Finance, Insurance, and Real Estate; (B) Retail Trade; (C) Services; and (D) Public Administration. (4) A Consumer's load (or portion thereof) is a NLSL If the energy consumption of the qualifymg load (as defined in section 2 (c) (2) of this exhibit) has increased by 10 average megawatts or more over a Contract No. 96MS-95027 , ) . . ExhibIt G, Page 4 of 6 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date consecutive 12-month period. A NLSL may be assocIated with a new facility, an existing facIlIty, or expansIOn of an eXIstmg facIlIty. Any portion of load at a facIlity that BP A determmes to be "contracted for, or commItted to" as of September 1, 1979, wIll not be consIdered a NLSL, regardless of SIze. (5) The Customer is required to inform BP A of any load on its system that might become a NLSL. The Customer has the obligation to momtor the load at every potential NLSL facility every 12 consecutive months from the time of energization or commercial operation and report such load information to BP A. If a load at a facility ever becomes a NLSL, then any additional increment of load at the facility, regardless of size, will also be a NLSL. If this load is served by BP A, it WIll be billed at the applicable rate for NLSL servIce. (d) Metering Requirements for NLSLs The Customer agrees to separately meter each NLSL usmg metering capable of measuring hourly data to be reported to BP A on a monthly basis. The metermg must mclude prOVISIOns for determining in each billing month: (1) the NLSL's demand during each of BPA's established billing perIOds for demand; and (2) the NLSL's energy durmg each hour of BPA's establIshed dIurnal energy bIllmg perIOds. BP A will bear the metermg costs of any NLSL served entIrely WIth BP A power. (e) NLSL Exemptions Large loads that are exempt from NLSL status mclude: (1) any load that BPA has determmed to be a CF/CT under the Agreement or the Prior Agreement; (2) the load of any eXIsting Consumer that relocated its facility within the same Customer's service area as long as the Consumer's net load did not increase by 10 average megawatts or more over 12 consecutive months; and (3) the load of any Consumer that is a successor-in.mterest to a Consumer that was previously determined to be a CF/CT load. Contract No. 96MS-95027 . ,I e . ExhibIt G, Page 5 of 6 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date NotwIthstanding the exemptions descrIbed above, a Consumer's load will be designated a NLSL for any mcrement of load above existmg levels, If that incremental load exceeds 10 average megawatts in any 12-month consecutive period. (f) Basic Data Requirements The following data should be included in any CF/CT determination, facility determmation or NLSL determinatIOn recorded in section (g), below. (1) CF/CT Determinations (A) Consumer name; (B) facility description; and (C) amount of firm energy contracted for, or committed to as of September 1, 1979. (2) Facility Determinations (A) Consumer name; (B) facIlity locatIOn; (C) date of faCIlIty determinatIOn; and (D) description of the faCIlIty load. (3) NLSLs (A) Consumer name; (B) facility locatIOn; (C) date that the load became a NLSL; and (D) description of the NLSL. (g) Results of NLSL Evaluations for Specific Large Loads (or Potential Large Loads) in the Customer's Service Area Contract No. 96MS-95027 . . ExhIbit G, Page 6 of 6 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date (h) Description of the Customer's CF/CTs, Facility Determinations, and NLSLs NONE 3. EXHIBIT REVISIONS This exhibIt will be updated upon a CF/CT determmation, a facility determmation, a load becoming a NLSL, or other change to the NLSLs in the Customer's servIce area. (MCPLAN-MPSD-W:\MPSD\CT\95027 DOC) Contract No. 96MS-95027 . . . ExhIbIt H, Page 1 of 10 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date GENERAL CONTRACT PROVISIONS Index to Sections Section 1. Metering............................................................................................. (a) Metering Costs ..................................... .............. .......................... (b) Metering ReqUIrements at Customer's Facilities ........................ (c) Metering Standards ..................................................................... (d) Data Reporting Requirements ..................................................... 2. Facilities ............ ............. ....... ............ ......... ...... ..... ............................. (a) Ownership of Facilities ................................................................ (b) Access to Facilities ................ ................................. .......... ....... ..... (c) General EnVIronmental Provisions ............................................. 3. Deliveries............................................................................................ (a) Character of Service ..................................................................... (b) Voltage Levels .............................................................................. (c) Balancing Phase Demands .......................................................... (d) HarmonIC Control ..... .......... ......... ................. ......... ......... ...... ........ (e) Voltage Fhcker ......... ................... ........................ .......... ...... ......... 4. ServIce InterruptIons ..... ................... ...................... ............ ............... (a) Mamtenance and Other Outages ................................................ (b) ElectrIc DIsturbances ........................................... ................. ....... (c) Emergency or Breakdown Relief ........ .................... .............. ........ 1. METERING Page 1 1 2 3 4 5 5 5 6 6 6 6 7 7 7 8 8 8 9 (a) Metering Costs The PartIes shall bear the costs of metermg as provIded m sections l(a)(l) and 1(a)(2), except as otherWIse specIfically provided in section 1(b). (1) Metering of Existing Facilities With the exceptIOn of convemence Points of Delivery, BP A shall bear the costs of any meter replacement or new meter mstallation at any Customer facility that is used for delivery of Federal power and which is an existing facility on the Commencement Date of the Agreement. Customer shall bear the costs of any meter replacement or new installation at all convenience points of delivery. Contract No. 96MS-95027 . . . Exhibit H, Page 2 of 10 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date (2) Metering of New Facilities of Customer Customer shall pay all costs assocIated wIth Installing BP A-approved meterIng at the folloWIng types of locations established by Customer after the Commencement Date of the Agreement: (A) All those points of generation integratIOn; and (B) All those automatic generatIOn control (AGC) Interchange POInts; and (C) All other pOInts of electrical interconnection, including convenience points of delivery; and (b) Metering Requirements at Customer's Facilities (1) Points of Generation Integration in BP A's Control Area and/or Customer's Contractual Contract Area (A) Resources Less than 1 Megawatt If Customer's resource has a peak capabIlity ofless than 1 megawatt, meterIng IS not required. BP A WIll estimate the hourly output for the resource. (B) Existing Resources from 1 to 3 Megawatts If Customer's resource, eXIstIng on the Commencement Date, has a peak capability of at least 1 but less than 3 megawatts, BPA shall determine whether to use a negotiated quantity or actual metered output for bIllIng purposes. (C) New Resources from 1 to 3 Megawatts If after the Commencement Date, Customer acqUires a resource that has a peak capabIlIty of at least 1 but less than 3 megawatts, Customer shall meter such resource and provIde actual metered quantities to BP A for billing purposes as reqUired below. (D) Existing Resources of 3 Megawatts or More BP A shall have the right to install both telemetering and hourly metering at its own expense to meter the output of Customer resource eXIsting on the Commencement Date, if that resource has a peak capability of 3 megawatts or more. Contract No. 96MS-95027 . . . Exhibit H, Page 3 of 10 Contract No. 96MS-95027 CIty of Port Angeles Effective on the Commencement Date (E) New Resources of 3 Megawatts or More If, after the Commencement Date, Customer acqUires a resource that has a peak capability of 3 megawatts or more, Customer shall meter such resource at its own expense using telemetering to record kilowatts (kW) and kilovoltamperes reactive (k V Ar) and hourly metering to record kilowatthours (kWh) and kilovoltampere reactive hours (kVArh), unless another arrangement IS approved by BP A at the end of each clock hour. The reactive power (kVArIkVArh) metering shall record both lagging and leading reactive power quantities. (2) Points of AGC interchange The hourly metering is required for AGC interchange points (a point on a Control Area boundary) (A) Telemetermg of the kW at such point and, (B) Hourly metering capable of prOVIding summaries, at the end of each clock hour, of the kWh and kVArh (laggmg and leading) exchanged during the previous hour. (3) Points of AGC interchange AGC interchange points and points of generatIOn mtegratIOn shall be metered on an hourly baSIS for both kW/kWh and kVAr/kVArh (lagging and leading) quantities. BP A shall pay for any upgrades or replacement of required meters on facilities eXIsting on the Commencement Date; Customer shall pay to meet BPA's metering reqUirements for all new facilities. (c) Metering Standards (1) All meters at new installations where the interconnectIOns are "normally closed" shall be capable of providing data electronically unless BP A otherwise agrees. (2) Customer may choose between providing data electronIcally to BP A and submitting meter slips for those interconnections that are normally operated in the "open" position and which are closed fewer than 7 times per year. (3) All meters providing data electronIcally shall be compatible with BPA:s electronic metering systems. Contract No. 96MS-95027 . . . ExhIbIt H, Page 4 of 10 Contract No. 96MS-95027 CIty of Port Angeles EffectIve on the Commencement Date (4) As of the Commencement Date, BPA prmcIpally uses a telemetermg system, the "Interchange KWH System," and BPA's Revenue Metermg System (RMS) for metermg. There are acceptable alternatives to each of these specIfic systems. Customer shall consult with BP A to ensure compatibIlity of any Customer meter wIth BP A:s then-current metering system. (5) Customer's meters shall meet BPA's accuracy standards as described m the BPA:s Billing Procedures. (6) Customer shall coordinate with BPA to determine BPA:s information and communication needs when designing future meter installations. (7) BP A-installed metering shall be used exclusively for BP A purposes unless otherwise agreed. (8) If the reqUIred metering capability is not mstalled by the Commencement Date and untIl its installation, the Parties shall calculate the hourly quantIties usmg a default methodology specified m BPA's Bilhng Pohcy, unless a different methodology IS specified in ExhIbIt A. (d) Data Reporting Requirements (1) Telemetered data shall be furmshed to BP A continuously on a real-time baSIS via 10-30 hertz telemetry, BPA:s SupervIsory Control and Data AcqUIsition system, the InterutIlity Data Exchange system, or other data collection method as determined by BP A. (2) Hourly metered data for all pomts of generatIOn mtegratIOn and pomts of AGC mterchange shall be furmshed to BP A at the end of each clock hour. Data shall be reported through the "Interchange KWH System" or an approved alternatIve. (3) Hourly metered data for Pomts of Delivery (excluding points of AGC interchange) shall be furnished to BPA at least once a month, at the end of Customer's billing cycle. Customer shall submIt a meter slip to BP A for all metering points which do not currently have: (A) metermg capable of provIding hourly kWh and kVArh quantities; or Contract No. 96MS-95027 . . . ExhibIt H, Page 5 of 10 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date (B) electrOnIc communIcations for such metered amounts (through the RMS or equivalent). Each Party shall inspect and test each of its meters used to measure power flowmg between the PartIes: (i) at least once every 2 years; and (Ii) upon the request of the other Party. Each Party shall give reasonable notice to the other stating when a test or inspection will occur. The other Party has the right to have one or more representatives present at such test or inspection. 2. FACILITIES (a) Ownership of Facilities (1) Except as otherwise expressly provIded, eqUIpment or salvable facIlitIes owned by one Party and installed on the property of the other shall remam the property of the owner. (2) Each Party shall Identify all movable eqUIpment and other salvable facilitIes whIch It mstalled on the other's property by permanently affixing sUItable markers plainly identifying the owner. Within a reasonable time after such installatIOn, and agam after any subsequent mollificatIOn of such mstallation, representatives of the Parties shall jomtly prepare an itemIzed list of SaId movable equipment and salvable facIlitIes. (b) Access to Facilities Whenever one Party has facilities or equipment located on, or planned to be located on, the other's property, the property owner shall gIVe the facIlity or equipment owner permission to access such property for any reasonable purpose related to such facilities or equipment, mcluding removal. The property owner shall also provide accurate and up-to-date mformation on those facilities and equipment owned by the property owner, to the extent needed by the other Party to accomplish its purpose. Each Party shall have the right, at any reasonable time, to enter the other's property to read meters and inspect the other Party's electric installation. The inspecting Party shall observe written instructions and posted rules and such other necessary mstructions or mspectIOn standards to which the Contract No. 96MS-95027 e . . 'I Exhibit H, Page 6 of 10 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date Parties have agreed. Only those electric Installations used to deliver power that BP A sells or wheels to Customer shall be subject to Inspection. (c) General Environmental Provisions Each Party shall be responsible for the cost of compliance wIth the requirements of all applicable Federal, State, and local environmental laws for its own facilities, even when those facilities are located on the property of the other Party. 3. DELIVERIES (a) Character of Service Unless otherwise provided in the Agreement, BPA shall make electric power available to Customer in the form of 3-phase alternating current, at a nominal frequency of 60 hertz. (b ) Voltage Levels (1) Voltage Levels at Points of Delivery When the nomInal voltage at Customer's pOInt of delIvery IS 115 kVor more, BP A shall delIver power to Customer at the operatIng voltage of the transmISSIon system. If the nominal voltage at Customer's point of delIvery IS below 115 kV, the delIvery voltage may mffer from the operatIng voltage of the transmISSIOn system as a result of the "turns ratio" and Impedance of the transformer providing the delivery servIce. (2) Voltage Schedules Voltage schedules are necessary for the efficient and reliable transmISSIOn of electrIcal power. BPA WIll establish a voltage schedule for each "crItical" or "key" substatIOn, as determIned by BP A. Depenmng on the hourly operating reqUIrements at each substation and at each POInt of generatIOn integration, BP A WIll issue a target voltage (set-poInt) for the voltage schedule. At any time, BP A may reset the voltage schedule. Customer shall take all approprIate actions to help BP A maintain the established voltage schedule. (3) Voltage Levels During Abnormal System Conditions DurIng outages or emergencies, BP A will maintaIn delivery voltage within 10 percent of the nominal voltage for all facilities having a nomInal voltage less than 500 kV. BPA will normally match other transmission providers' voltage levels for abnormal system conditions when they share transmission responsibilities. At times during Contract No. 96MS-95027 . . II( (" Exhibit H, Page 7 of 10 Contract No. 96MS-95027 CIty of Port Angeles Effective on the Commencement Date abnormal system conditions, BP A may need Customer to supply adilltIOnal reactIve power from its generatmg facIlitIes (relatIve to normal requirements) to maintam reasonable voltage levels. Customer shall use its best efforts to comply WIth BPA's request. (4) Reactive Power Each Party shall design, construct, operate, mamtain, and use its electric facilitIes m accordance with Good Utility Practice to minimIZe the reactIve power requirements placed on the other Party. BPA shall assess the reactive charges established in BPA's rates and Billing Policy for Customer's reactive power requirements. (c) Balancing Phase Demands The current on anyone phase shall not deviate by more than 5 percent from the current on any other phase, unless otherwise agreed by the Parties. (d) Harmonic Control Each Party shall design, construct, operate, maintain, and use its electric faCIlitIes m accordance WIth Good UtIlity PractIce to reduce, to acceptable levels, the harmonic currents and voltages whIch pass into the other Party's facIlItIes. To that end, the Parties shall be gUIded by the recommended practIces and reqUIrements for harmomc control specIfied m The Institute of ElectrIcal and Electronics Engmeers, Inc. (IEEE) ElectrIcal Power System Standard 519-1992, or its successor. The Parties shall accomplish harmonic reductions usmg eqUIpment whIch is specIfically designed, and permanently operated and mamtained, as an mtegral part of the facilitIes of the Party which owns the system on which the harmomcs are generated. (e) Voltage Flicker Voltage flicker IS normally detectable through visible varIatIOns in light mtensIty. However, flicker may be present even when no light VarIatIOns are detectable. Since flicker IS disruptIve to lIghting and can damage computer equipment, It must be controlled. IEEE Recommended Practices and Requirements for Harmonic Control in ElectrIc Power Systems (IEEE Standard 519) provides definitions and limIts on acceptable levels of voltage flicker, as set by IEEE Standard 519. Both PartIes shall control voltage flicker on theIr respective systems as required by IEEE Standard 519. Contract No. 96MS-95027 -,. f" . , e . ~ \' f ExhIbIt H, Page 8 of 10 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date 4. SERVICE INTERRUPTIONS (a) Maintenance and Other Outages Customer or BP A may temporarily interrupt or reduce deliverIes of electric power If either Party determmes that such mterruption or reductIOn is necessary or desirable: (1) in case of emergencies (including both system emergencIes and emergencIes created by actual or potential safety problems); or (2) to install equipment in, make repaIrs to, make replacements within, conduct investigations and inspectIons of, or perform other maintenance work on, Customer's facilities or the Federal Columbia River TransmISSIon System. Except in an emergency, the mterrupting Party shall notify the other affected entities in advance of an interruption or reduction in service. The mterruptmg Party shall identify the reason for such interruption or reduction, and the probable duration. To the extent reasonable or approprIate, Customer or BP A shall use temporary faCIlities or eqUIpment to mimmIze the effect of any such mterruptIOn or outage. (b) Electric Disturbances (1) An electrIC msturbance IS any sudden, unexpected, changed or abnormal electrIC condition which may cause damage and whIch occurs in, or on, an electrIC system. (2) Each Party shall deSIgn, construct, operate, mamtam, and use its electrIC system in conformance WIth Good Electric UtIlIty Practices: (A) to mmimIze electric msturbances such as, but not lImIted to, the abnormal flow of power which may mterfere WIth anthers electrIC system; and (B) to mmimize the effect (on BPA's electric system and on Customer's) of electric disturbances origmating on ItS own or another's electric system. (3) Ifboth Parties to the Agreement are parties to the Western Interconnected ElectrIC System Agreement, their relatIOnshIp with respect to system damages shall be governed by that agreement. Contract No. 96MS-95027 "" .,. , . . .. (I . ExhibIt H, Page 9 of 10 Contract No. 96MS-95027 City of Port Angeles EffectIve on the Commencement Date (4) If either one or both of the Parties to the Agreement are not party to the Western Interconnected ElectrIc System Agreement, the relations of the PartIes wIth respect to system damages shall be governed as follows: "A Party to this Agreement (First Party) shall not be liable to the other Party (Other Party) for damage to the Other Party's system or facilities caused by an electrIc disturbance on the First Party's system, whether or not such electric disturbance is the result of negligence by the First Party, if the Other Party has failed to fulfill its obligations under section 4(b)(2)(B) of this exhibit." (5) If either one or both of the Parties to the Agreement are not party to the Western Interconnected ElectrIc System Agreement, the relations of the PartIes wIth respect to claIms by ultimate Consumers for loss, injury, or damage (Claims) shall be governed as follows: "A Party to this Agreement (FIrst Party) shall hold harmless and indemmfy the other Party (Other Party), its officers and employees, from any ClaIms resulting from an electric chsturbance on the Other Party's system whether or not such electrIC dIsturbance results from the neglIgence of such Other Party, If the First Party has faIled to fulfill ItS obligatIOns under section 4(b )(2)(B) of thIS exhibIt, and such failure contrIbuted to the ClaIm." (6) Nothmg m this section shall be construed to create any duty to, any standard of care WIth reference to, or any liabIlity to any persons not a Party to the Agreement. (c) Emergency or Breakdown Relief (1) If a Party requires additional power to meet its needs during a system emergency, such affected Party may ask the other to supply the needed power. Upon request, the potentIal supplIer shall supply as much of the requested power as pOSSIble, conSIstent WIth its obligations to ItS other customers. The supplier's determination of the amount of power available for thIS purpose IS final and conclusive. (2) If either Party supplies power to the other under sectIOn 5(c)(1) and requests replacement of that power, the other shall make an equivalent amount of power aVaIlable to the supplier and at such Contract No. 96MS-95027 ., ~ . . . < . '" .. ExhIbit H, Page 10 of 10 Contract No. 96MS-95027 CIty of Port Angeles EffectIve on the Commencement Date times as may be agreed upon by the respective PartIes' dispatchers. If the Party supplying the power does not request replacement of that power, the other shall pay for the power at the rate preestablished at the tIme of dehvery. (MCPLAN.MPSD.W'\MPSD\CT\95027 DOC) Contract No. 96MS-95027 . . ~ . . . .. .':. 't ~ ExhIbIt I, Page 1 of 1 Contract No. 96MS-95027 City of Port Angeles Effective on the Commencement Date SPECIAL PROVISIONS 1. PURPOSE OF THIS EXHIBIT The purpose of this exhibit IS to serve as a "catch-all" for informatIOn that IS relevant to the contractual relatIOnship between the Parties but which is not covered mother parts of the Agreement. If the followmg provisions conflict with any other provisions of the Agreement, the following provisions shall prevail. 2. EXHIBIT PROVISIONS There are no special provisions at this time. 3. EXHIBIT REVISIONS This exhibit shall be updated by mutual agreement. (MCPLAN-MPSD-W \MPSD\CT\95027 DOC) Contract No. 96MS-95027 S. -<110 Department of Energy Bonneville Power Administration P.O. Box 491 Vancouver, Washington 98666-0491 TRANSMISSION BUSINESS LINE May 22, 1998 In reply refer to: TM/DITT-2 Mr. Robert Titus, Director Port Angeles City Light 321 E. Fifth Street Port Angeles, W A 98362-0217 Dear Robert: Enclosed are two executed copies of your Network Transmission (NT) Service Agreement Contract No. 96MS-96090. Please be advised that, although the contract refers to Bonneville's Open Access Tariff, that tariff is currently under review by the Federal Energy Regulatory Commission (FERC). Until such time as FERC approves the Open Access Tariff, the terms and conditions currently in force under the existing NT Tariff shall continue to apply. This Service Agreement provides for NT service through September 30, 2006. Because of the complex nature of Daishowa load and Elwah resource, this agreement provides for the determination of Port Angeles' Network Load based on the sum of the metered load for all of Port Angeles' points of delivery. It also provides for a reduction of Port Angeles' base transmission load for Port Angeles' CSPE resource that has been declared as a Customer Served Load Resource. If the terms of the Service Agreement are acceptable, please sign one original copy of this letter and return it with the a signed original copy of the Service Agreement. This offer for NT Service is valid through June 26, 1998. If you have any questions or require any further information, please call me at 360/418-8291 or Dennis Amonsen at 206/216-4290.' ACCEPTED: PORT ANGELES CITY LIGHT By: ~ ~ ~-1~ QA.6Q. ~ ~ R..A-W..,u (Print/Type) Y'VlA-{~ Db -Lb. q~ UNITED STATES OF AMERICA Department of Energy Bonneville Pow r Administration By:Lu' . ~ \ f'"" Senior Acc unt Executi e Name: Thomas M. Noguchi (Print/Type) Name: Title: Date: Date: May 22, 1998 Service Agreement No. 96MS-96090 SERVICE AGREEMENT for NETWORK INTEGRATION TRANSMISSION executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through the BONNEVILLE POWER ADMINISTRATION and THE CITY OF PORT ANGELES Index Article 1. 2. 3. 4. 5. Description Scope of Service Agreement ............................................................ Term of the Service Agreement ...................................................... N otices.................................................................................................. Charges for Transmission Service ................................................. Miscellaneous ..................................................................................... Page 2 4 4 5 7 Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I Exhibit J (Network Integration Service Transmission (Tariff)) (Application for Network Integration Transmission Service) (Statement of Specifications for Firm Transmission Service) (System Impact Study) (Facility Study) (System Operating Provisions) (Transmission Scheduling Provisions) (Wholesale Power and Transmission Rate Schedules) (Facilities Charges) (Ancillary Services) This FIRM TRANSMISSION SERVICE AGREEMENT is made and entered into this / I p~ day of~ I Cf4fl, by and between the Bonneville Power Administration (hereinafter referr~ to as "BP A") and the City of Port Angeles (hereinafter referred to as Port Angeles or "the Transmission Customer"). The Transmission Customer and BP A are sometimes referred to individually as "Party" and collectively as "Parties," as the context suggests below. In consideration of the promises and mutual covenants and agreements herein contained, the Parties do agree as follows: ARTICLE 1 SCOPE OF SERVICE AGREEMENT 1.1 Terms and Conditions. The terms and conditions under which the Network Integration Service is offered and accepted are pursuant to this Service Agreement and to the Network Integration Service Tariff incorporated as Exhibit "A" (Tariff). Unless otherwise mutually agreed in writing by the Parties, BPA may change the terms and conditions of the Tariff upon, and only upon, a determination by the Commission that such change is just and reasonable and not unduly discriminatory or preferential. BP A and the Transmission Customer agree that transmission service provided pursuant to this Service Agreement may be provided under a Commission-approved successor tariff after September 30, 2001, if BPA supersedes the Tariff. 1.2 Application. The Application for Network Integration Service requested by the Transmission Customer and accepted by BP A for this Service Agreement is hereby incorporated by this reference and made a part of this Service Agreement as Exhibit "B." 1.3 Statement of Specifications For Firm Transmission Service. The Statement of Specifications for Firm Network Integration Service under this Service Agreement requested by the Transmission Customer and accepted by BP A are hereby incorporated by this reference and made a part of this Service Agreement as Exhibit "C." 2 Service Agreement No. 96MS-96090 1.4 System Impact/Facilities Study. Study Agreements for a System Impact Study and/or a Facilities Study, if performed for this Application, are hereby incorporated by this reference and made a part of this Service Agreement as Exhibits "D" and "E," respectively. 1.5 System Operating Provisions. The System Operating Provisions containing the terms and conditions under which the Transmission Customer shall operate its facilities and the technical specifications associated with Network Integration Service under this Service Agreement is hereby incorporated by this reference and made a part of this Service Agreement as Exhibit "F." 1.6 Transmission Scheduling Provisions. The Transmission Scheduling Provisions are hereby incorporated by this reference and made part of this Service Agreement as Exhibit "G." All transactions which must be scheduled under this Service Agreement shall be scheduled in accordance with the scheduling provisions in Exhibit "G" of this Service Agreement. 1. 7 BP A Wholesale Power and Transmission Rate Schedules. The BP A Wholesale Power and Transmission Rates Schedules are hereby incorporated by this reference and made part of this Service Agreement as Exhibit "H." 1.8 Facilities Charges. All applicable charges pursuant to the Direct Assignment Facilities Provisions for existing facilities and facilities built as a result of this Service Agreement are hereby incorporated by this reference and made a part of this Service Agreement as Exhibit "I." 1.9 Ancillary Services. The Ancillary Services for Network Transmission Service under this Service Agreement requested by the Transmission Customer and accepted by BP A are hereby incorporated by this reference and made a part of this Service Agreement as Exhibit "J." 3 Service Agreement No. 96MS-96090 1.10 Unless otherwise defined herein, all capitalized terms shall have the meanings set forth in the Tariff. ARTICLE 2 TERM OF THE SERVICE AGREEMENT Service under this Service Agreement shall commence at 2400 hours on September 30, 1996. Service under this Service Agreement shall terminate on the earlier of: (a) 2400 hours on September 30, 2006; or (b) 2400 hours on the date of termination established pursuant to Section 4.8 of the Tariff. All liabilities and obligations incurred under this Service Agreement shall be preserved until satisfied. ARTICLE 3 NOTICES 3.1 Notices Relating to Provisions of Service Agreement. Any notice, request, demand, or statement which may be given to or be made upon either Party by the other Party under any of the provisions of this Service Agreement, except those specified in Article 3.2 below, shall be in writing and shall be considered delivered when either personally delivered to the following or deposited in the mail postage prepaid and properly addressed to the following: If the notice is to the Transmission Customer: Director The City of Port Angeles P. O. Box 1150 Port Angeles, WA 98362-0217 If the notice is to BP A: Senior Transmission Account Executive for The City of Port Angeles~ Bonneville Power Administration P.O. Box 491 Vancouver, WA 98666-0491 4 Service Agreement No. 96MS-96090 3.2 Notices of An Operating Nature. Any notice, request, or demand pertaining to matters of an operating nature, exclusive of requests for additional or modified transmission service under this Tariff, shall be sufficient if given in writing, by telephone, by facsimile, or orally in person to the person designated in writing by the Party as its representative for such purposes, provided that should the same not be in writing, confirmation thereof shall be made in writing as soon as reasonably practicable thereafter, upon request of the Party being served. The point of contact pursuant to this Article shall be communicated by the Parties under separate letter within 45 days from the date of execution of this Service Agreement. ARTICLE 4 CHARGES FOR TRANSMISSION SERVICE 4.1 Charges for Transmission Service. The Transmission Customer shall pay BPA the applicable charges for services provided hereunder pursuant to the rate schedules as specified below. 4.1.1 All applicable charges pursuant to the Network Integration Transmission Rate as specified in Exhibit H (NT-96, or its successor as revised) and listed in the Wholesale Power and Transmission Rate Schedules. 4.1.2 All applicable charges pursuant to the Ancillary Products and Services Rate for such services as specified in Exhibit J (APS-96, or its successor as revised) and listed in the Wholesale Power and Transmission Rate Schedules. 4.1.3 Advance Funding Rate for facilities listed in Exhibit I (AF-96, or its successor as revised) and listed in the Wholesale Power and Transmission Rate Schedules. 4.1.4 Use-of-Facilities Rate for facilities listed in Exhibit I (UFT-96, or its successor as revised) and listed in the Wholesale Power and Transmission Rate Schedules. 4.2 Billing and Payment. Bills for all services provided under this Service Agreement shall be rendered monthly by BP A. All such bills shall be due and payable in accordance with Section 11 of the Tariff. 5 Service Agreement No. 96MS-96090 4.3 BPA Appropriations Refinancing Act - P.L. 104-134 Consistent with Section 3201(i) of Public Law No. 104-134: 4.3.1 BPA shall establish rates and charges on the basis that: 4.3.1.1 4.3.1.2 4.3.1.3 4.3.1.4 the principal amount of an old capital investment shall be no greater than the new principal amount established under Section 3201(b) of Public Law 104-134; the interest rate applicable to the unpaid balance of the new principal amount of an old capital investment shall be no greater than the interest rate established under Section 3201(c) of Public Law 104-134; any payment of principal of an old capital investment shall reduce the outstanding principal balance of the old capital investment in the amount of the payment at the time the payment is tendered; and any payment of interest on the unpaid balance of the new principal amount of an old capital investment shall be a credit against the appropriate interest account in the amount of the payment at the time the payment is tendered. 4.3.2 apart from charges necessary to repay the new principal amount of an old capital investment as established under Section 3201(b) of Public Law 104-134 and to pay the interest on the principal amount under Section 3201(c) of Public Law 104-134, no amount may be charged for return to the U.S. Treasury as repayment for or return on an old capital investment, whether by way of rate, rent, lease payment, assessment, user charge, or any other fee; 4.3.3 amounts provided under Section 1304 of Title 31, U.S. Code, shall be available to pay, and shall be the sole source for payment of, a judgment against or settlement by BPA or the United States on a claim for a breach of this section; and 4.3.4 the contract provisions specified in this section do not: 4.3.4.1 4.3.4.2 preclude BP A from recovering, through rates or other means, any tax that is generally imposed on electric utilities in the United States, or affect BPA's authority under applicable law, including Section 7(g) of the Pacific Northwest Electric Power Planning and Conservation Act, to: 6 Service Agreement No. 96MS-96090 4.3.4.2.1 allocate costs and benefits, including but not limited to fish and wildlife costs, to rates or resources, or 4.3.4.2.2 design rates. 4.3.5 Terms used in this section shall have the same meaning as they have under Section 3201(b) of Public Law 104-134. 4.3.6 References in this section to Section 3201 of Public Law 104-134 are to that section as approved by the 104th Congress and signed by the President in April of 1996. ARTICLE 5 MISCELLANEOUS 5.1 Governing Law. This Service Agreement shall be interpreted, construed, and enforced in accordance with Federal law. 5.2 Amendments. Except as provided in Articles 1.1, 5.3, and 5.13, this Service Agreement may be amended only upon mutual agreement of the Parties, which amendment shall be reduced to writing and executed by both Parties. 5.3 Tariff Revisions. Bonneville may revise this Service Agreement to remove any irreconcilable differences between this Service Agreement and any Tariff which the Commission has determined to be just, reasonable and not unduly discriminatory or preferential, provided that Bonneville has given the Transmission Customer a copy of the proposed revised Tariff and revised Service Agreement not less than sixty days prior to the date such revised Tariff and such revised Service Agreement are submitted to the Commission. The Transmission Customer may terminate this Service Agreement upon thirty days written notice, after the effective date of such Commission approval, provided that the transmission Customer has given Bonneville written notice of its intention to so terminate no later than thirty days after receipt of the proposed revised Tariff and proposed revised Service Agreement. If the Transmission Customer terminates the Service Agreement pursuant to this Article 5.3, the Transmission Customer will replace the transmission service 7 Service Agreement No. 96MS-96090 provided under the Service Agreement by commencing service under a transmission tariff or tariffs then offered by Bonneville. 5.4 Severability. In the event any of the terms, covenants, or conditions of this Service Agreement, or any amendment hereto, or the application of such terms, covenants, or conditions shall be held invalid as to any Party or circumstance by the Commission or by any court having jurisdiction, all other terms, covenants, and conditions of this Service Agreement or any amendment hereto and their application shall remain in full force and effect. 5.5 Computation of Time. On computing any period of time prescribed or allowed by this Service Agreement, the day of the act, event, or default from which the designated period of time begins to run shall not be included. The last day of this period so computed shall be included unless it is a Saturday, Sunday, or legal holiday, in which event the period shall run until the end of the next business day which is neither a Saturday, Sunday, or legal holiday. For purposes of the administration of this Service Agreement, Pacific Time shall be used. 5.6 No Third Party Beneficiaries. This Service Agreement creates rights and obligations only between the Parties hereto. The Parties hereto expressly do not intend to create any obligation or promise of performance to any other third person or entity nor have the Parties conferred any right or remedy upon any third person or entity other than the Parties hereto, their respective successors and assigns to enforce this Service Agreement. 5.7 Interconnection With Other Systems. Nothing contained in this Service Agreement shall restrict or limit either Party from establishing, altering, or terminating interconnection points with any entity not a Party to this Service Agreement or amending or entering into such agreements. 5.8 Facilities. Any facilities designated as Direct Assignment Facilities are identified in Exhibit I. 8 Service Agreement No. 96MS-96090 5.9 Transition Costs For Transfer Agreements. To the extent the Transmission Customer receives transmission service over facilities of a third party, and such service is provided pursuant to a contract between BP A and the third party (Transfer Agreement), the Transmission Customer shall, upon termination of this Service Agreement, reimburse BP A for any continuing costs under the Transfer Agreement which cannot be otherwise reasonably mitigated by BPA. Transfer Agreement(s) are referenced in Exhibit C, Names of Intervening Systems Providing Transmission Service. 5.10 Waivers. Any waiver at any time by either Party of its rights with respect to a default under this Service Agreement, or with respect to any other matter arising in connection with this Service Agreement, shall not be deemed a waiver with respect to any other or subsequent default or matter. 5.11 Assignment. This Service Agreement shall not be assigned except to facilitate a merger or purchase of the Transmission Customer. 5.12 Service Agreement Governs. In the event of any irreconcilable difference between the Tariff and this Service Agreement, the language of this Service Agreement shall govern. 5.13 Revision of Exhibits. If any changes to Exhibits C, D, E, F, G, H, I, or J are necessary to reflect changes specified below, new exhibits shall be substituted for the exhibits then in effect and shall become effective as of the date specified therein. Except for changes pursuant to Article 5.13.5 below, the Transmission Customer may use the dispute resolution procedures available under the Tariff to challenge such changes. 5.13.1 Subject to the rights and obligations of the Parties as set forth in the Tariff, the Parties mutually agree to change Exhibit C pursuant to this Service Agreement, BPA shall prepare and issue a revised Exhibit C. 9 Service Agreement No. 96MS-96090 5.13.2 5.13.3 5.13.4 5.13.5 5.13.6 5.13.7 If the Parties mutually agree to perform study agreements for a System Impact Study and/or Facilities Study under this Service Agreement, BP A shall prepare a revised Exhibit D and/or Exhibit E incorporating such studies. For changes to any of the provisions contained in the System Operating Provisions Exhibit (Exhibit F) to reflect changes in North American Electric Reliability Qouncil (NERC), Western Systems Coordinating Council (WSCC), Northwest Power Pool (NWPP), and BPA reliability criteria and standards or changes in accepted regional practices, BP A shall prepare a new Exhibit F. For changes to any of the provisions contained in the Transmission Scheduling Provisions Exhibit (Exhibit G) to reflect current practice, BP A shall prepare a new Exhibit G. BP A may change rates pursuant to applicable law and procedures. BP A shall prepare a new Exhibit H incorporating such changes. BP A reserves the right to revise Exhibit I annually to reflect changes consistent with the provisions of Exhibit I, "Use of Facilities Costs for which Transmission Customer is Responsible." If the Parties mutually agree to change Exhibit J, Ancillary Services Provided, pursuant to this Service Agreement, BP A shall prepare and issue a revised Exhibit J. BPA reserves the right to update loss methodology consistent with the provisions of Exhibit J, "Transmission Loss Factors". 5.14 Nonfirm Transmission Service. The Transmission Customer may request nonfirm transmission service and will receive such service on a first-come, first- served, as-available basis. Requests for nonfirm transmission service shall be in accordance with Section 2.3 of the Tariff and the Transmission Scheduling Provisions in Exhibit G. 5.15 Conversion to Any Tariffs Offered By BP A. Upon mutual agreement of the Parties, the notice periods for terminating this Service Agreement and for commencing service under another tariff offered by BP A may be shortened. 10 Service Agreement No. 96MS-96090 5.16 Entire Agreement. Except as stated otherwise herein, this Service Agreement constitutes the entire Agreement between the Parties with respect to the subject matter hereof, and there are no other understandings or agreements between the Parties with respect thereof. IN WITNESS WHEREOF, the duly authorized representatives ofBPA and the Transmission Customer have executed this Service Agreement as of the date first above written. UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By: ~ Ir Semor Trans xecutIve Name: Thomas M. Noguchi Date: b/,,-'l- /11iY I ' THE CITY OF PORT ANGELES By: ~ '"^1 ~ C~ Ie. '1 :e,a.p,L.LAI Name: (PnntlType) Title: ~~(j~ . q,- I~,. qa Date: (TMC- W: \ TMC\e_files \PM-12\trans-18\Port Angeles \170TNOO1.DOC) (W: \MCP\ TMC\CT\96090.DOC) 11 Service Agreement No. 96MS-96090 Exhibit A, Page 1 of 1 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 OPEN ACCESS TRANSMISSION TARIFF BPA's NT Tariff shall constitute this Exhibit A until such time as the Commission approves BPA's Open Access Transmission Tariff. (TMC-W \TMC\E]ILES\PM-12\TRANS-18\PENINSUL\374TNOOl DOC) (W \MCP\TMC\CT\96090 DOC Service Agreement No. 96MS-96090 Exhibit B, Page 1 of 1 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 APPLICATION FOR NETWORK INTEGRATION TRANSMISSION SERVICE (Customer Letter Attached) (TMC-W:\TMC\e_files\PM-12\trans-18\Port Angeles\170TNOOl DOC) (W'\MCP\ TMC\CT\96090.DOC) Service Agreement No. 96MS-96090 1 CITY LIGHT { I , -- --~............. , , , -) n '--- Exhibit B 'I CITY OF PORT ANGELES 321 East FIfth Street. PO Box 1150 Port Angeles, Wa,hll1gton 98362" II 50 Phone (360)417-4705 Fax (360) 417-4709 TTY Phone (360) 417 -4645 e-mall pallght@olympus net July 31, 1996 Mr. Thomas M. Noguchi Senior Account Executive Bonneville Power Administration P. O. Box 3621 Portland, Oregon 87208-3621 JUL 3 I Dear Mr. Noguchi: Port Angeles City Light (City) has or will complete negotiation with the Bonneville Power Administration (Bonneville) regarding the terms and conditions for diversification of a portion of its load. In order to integrate all of the Network Resources, the City requests transmission service in accordance with Bonneville's Network Integration Transmission (NT) Service Tariff (June 1996). The following information is provided in accordance with Section 4.2 Application Procedures: (i): (ii): (iii): -, (iv) (v), Scott McLain Power Resources Manager Port Angeles City Light P.O. Box 1150 Port Angeles, Wa. 98362 Phone: (360)417-4703 Fax: (360)417-4709 Port Angeles City Light is an electric utility in the business of supplying its customers with electric power and therefore an "Eligible Customer" as defined in Section 1.8 of the Tariff. The Points of delivery for Port Angeles City Light are all on the same buss at the BP A Port Angeles substation. These consist of Port Angles, Rayonier, and Daishowa. These P9ints of delivery are all served at 69 KV. The attached 10 year load forecast includes all three of these points. The attached load forecast does not include any interuptible loads. There is also no curtailed customer load included in the forecast. Description of Network Resources: I CSPE. Forecast of CSPE energy and demand is attached for the remamder of the contract term RA YONIER SP Forecast of Rayomer SP purchase is attached SP will expire in Dec. 97, will then be replaced with BPA PF BPA purchases Bonneville PF will serve our ~emaining load exclusive of CSPE, Rayonier SP, Morse Creek (described below), and any system purchases we may take. f . f""'\ t, .> o '1:': ~:/~\~~~ , 'l"'!t" 2. Morse Creek. Hydro project. Load forecast is enclosed for the Morse Creek project, wholly owned by Port Angeles City Light, wheeled through Clallam PUD lines to BPA Port Angeles substation and then into Port Angeles system. Pacific Rim Landfill Project. A PURPA project which bums landfill gas. The project output is about 200 KW to 400 KW. It is located within our service territory and will be fed directly into our distribution system. The project output will gradually decline until it is no longer feasible in about 2005. 3. We are in the fmal stages of a system purchase contingent on signing of a new contract with BP A. This purchase will be for 15% to 25% of our enclosed system forecast. (vi): Enclosed is a one line of our Transmission system, wholly within the city limits of Port Angeles, operating at a nominal voltage of 69 KV. (vii): Start date for this transmission service will correspond with the start date of the new 96 contract with Bonneville, expected to be Oct 1, 1996. We would like this transmission request to end on Sept. 30,2006. If you have any questions about this application or need additional information, please contact Scott McLain as listed in (i) above. Sincerely, )~'tVJ~o(~ Scott McLain Power Resources Manager Port Angeles City Light attachments Port Angeles Load Foreca~t_ -- O~ad growth = .5%/year) 1996 1997 1998 1999 2000 2001 ---~ - -- - -- MW MWH MW MWH MWH MW MWH MW MWH MW MWH MW -- 43,587 54.1 43,805 54.3 44,024 54.6 44,244 Aug 43,370 538 54.9 44,465 55.2 Sep 51,086 752 51,341 75.6 51,598 76.0 51,856 76.3 52,115 76.7 52,376 771 Oct 54,548 90.4 54,821 90.9 55,095 91.3 55,370 91.8 55,647 92.2 55,925 927 Nov 57,306 99.9 57,593 100.4 57,880 100.9 58,170 101.4 58,461 101.9 58,753 102.4 Dee 56,052 886 56,332 89.0 56,614 89.5 56,897 89.9 57,181 90.4 57,467 908 Jan 54,856 87.0 55,130 87.4 55,406 87.9 55,683 88.3 55,961 88.8 56,241 89.2 Feb 59,048 108.3 59,343 108.8 59,640 109.4 59,938 109.9 60,238 110.5 60,539 111.0 Mar 53,919 83.6 54,189 84.0 54,460 84.4 54,732 84.9 55,005 85.3 55,281 857 54,987 95.5 55,261 96.0 55,538 96.4 55,815 96.9 .-- - Apr 54,713 95.0 56,095 974 - ---- 48,184 67.5 48,425 67.9 48,667 68.2 48,910 68.6 -- May 47,944 672 49,155 689 Jun 47,231 66.0 47,467 66.3 47,704 66.7 47,943 67.0 48,183 67.3 48,424 67.7 --- 52.8 40,978 53.0 41,183 53.3 Jul 40,571 52.5 40,774 41,389 53.6 41,595 53.8 2002 2003 2004 2005 2006 MWH MW MWH MW MWH MW MWH MW MWH MW Aug 44,687 554 44,911 55.7 45,135 56.0 45,361 56.3 45,588 56.6 Sep 52,638 77.5 52,901 77.9 53,166 78.3 53,431 78.7 53,699 79.0 Oct 56,205 93.1 56,486 93.6 56,768 94.1 57,052 94.6 57,338 95.0 Nov 59,047 102.9 59,342 103.4 59,639 104.0 59,937 104.5 60,237 105.0 Dee 57,755 91.3 58,043 91.7 58,334 92.2 58,625 92.7 58,919 93.1 Jan 56,522 89.6 56,805 90.1 57,089 90.5 57,374 91.0 57,661 91.4 Feb 60,842 111.6 61,146 112.1 61,452 112.7 61,759 113.3 62,068 113.8 Mar 55,557 86.1 55,835 86.6 56,114 87.0 56,394 87.4 56,676 87.9 Apr 56,375 97.9 56,657 98.4 56,940 98.9 57,225 99.4 57,511 99.9 May 49,400 69.2 49,647 " 69.6 49,896 69.9 50,145 70.3 50,396 70.6 Jun 48,666 68.0 48,909 68.3 49,154 68.7 49,399 69.0 49,646 69.4 Jul 41,803 54.1 42,012 54.4 42,223 54.6 42,434 54.9 42,646 55.2 ...... 'J ~ (:) - , 0' - ~\3\ CSPL ecast- Port Angeles City Light CSPE forecast Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nav Dec 1996-Energy fWV( ave) 1355 1355 1355 1996-Demand-fWV 2430 2430 2430 1997-Energy fWV(ave) 1355 1355 1355 1116 1116 1116 1116 1116 1312 1312 1312 1312 1997 -Demand-fWV 2430 2430 2430 2355 2355 2355 2355 2355 2355 2355 2355 2355 1998-Energy KW(ave) 1312 1312 1312 975 975 975 975 975 1147 1147 1147 1147 1998-Demand-fWV 2355 2355 2355 2080 2080 2080 2080 2080 2080 2080 2080 2080 1999-Energy fWV(ave) 1147 1147 1147 467 467 467 467 470 549 549 549 549 1999-Demand-fWV 2080 2080 2080 1000 1000 1000 1000 1000 1000 1000 1000 1000 2000-Energy fWV(ave) 549 549 549 449 449 449 449 450 528 528 528 528 2000-Demand-fWV 1000 1000 1000 960 960 960 960 960 960 960 960 960 2001-Energy fWV(ave) 528 528 528 431 431 431 431 431 506 506 506 506 2001-Demand-fWV 960 960 960 935 935 935 935 935 935 93p 935 935 -- 506 506 465 465 465 465 2002-Energy KW(ave) 506 465 465 465 465 465 2002-Demand-fWV 935 935 935 835 835 835 835 835 835 835 835 835 2003-Energy fWV(ave) 465 465 465 0 0 0 0 0 0 0 0 0 2003-Demand-fWV 835 835 835 0 0 0 0 0 0 0 0 0 ------ , ., J l~ \.iI , 1/ Mars, Jek Forecast- Port Angeles City Light , Morse Creek Forecast Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec J 1996-Energy KW(ave) 294 320 388 319 352 432 380 5 0 0 43 324 1996-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 1997-Energy KW(ave) 294 320 388 319 352 432 380 5 0 0 43 324 1997 -Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 1998-Energy KW(ave) 294 320 388 3,19 352 432 380 5 0 0 43 324 1998-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 1999-Energy KW(ave) 294 320 388 319 352 432 380 5 0 0 43 324 1999-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 2000-Energy KW(ave) 294 320 388 319 352 432 380 5 0 0 43 324 2000-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 2001-Energy KW(ave) 294 320 388 319 352 432 380 5 0 0 43 324 2001-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 .- -- 388 319 352 432 380 2002-Energy KW(ave) 294 320 5 0 0 43 324 2002-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 2003-Energy KW(ave) 294 320 388 319 352 432 380 5 0 0 43 324 --- 249 135 313 396 2003-Demand-KW 192 97 346 0 1 0 0 235 ----- 388 319 352 2004-Energy KW(ave) 294 320 432 380 5 0 0 43 324 2004-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 2005-Energy KW(ave) J 294 320 388 319 352 432 380 5 0 0 43 324 2005-Demand-KW 192 97 249 135 313 396 346 0 1 0 0 235 -- ---- --- 388 319 352 432 380 0 0 2006-Energy KW(ave) 294 320 5 43 324 2006-Demand-KW -192 97 249 135 313 396 346 0 1 0 0 235 'l '-- ,~') " I I ~ .( '\t,;' RaYL "p Load Forecast-Port Angeles City Light Rayonier SP contract Forecasted SP Loads Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec - 21000 21000 1996 Ave I<W 21000 21000 21000 21000 1997 Ave KW 21000 21000 21000 21000 21000 21000 21000 21000 21000 21000 21000 21000 ... ,'J r'~ ..J ~~----------~~~-~ -------------------- &II ~ n... L" L..a PORT L-lO E_ 11M AtI) I n. ... ... -- IOI1IA>ICYA 11-1 l.-11 I ! \ I ~,l' t wnt IHJ . IT. _ "" 1II1IIODnL4 --..7KY .. ....-- -.,... "---. .J ANGELES IAlI L-14 -.- IT. TF-1 "tfE CITY LIGHT 69KV TRANSMISSION SYSTEM G- --0 _ or L-a 0- --0 0---0 L-U L-II _u..a L4 I I I I I I Ii :1 It II! I I , . _IT. .......... -. UN( 1 --- ..,.,.. - L-aQ III AILIY L-4 ~. III ....., ----- ! tIS I -- 'NI '4II1a'f-' . 111-1 ~i 5 ... --....... " . -..:.-.--- "--;I; TV.... T1I~ ----, T1I-' \ 'l)1V~ \- \:. t=: -.. --..ll<V =- 'Nt _ ..... 1V~ --....-. --.- ~ t . --, I I J'- I I I I I I I ~ I- i I ~IS ;:1 D I I I I I I I ~.. Tll-l ~ Te-l 71K AID ......, ... -- ~.ICV M__ _......~_ , L-~ IIl\ot All) A n. _ --- MI1U1lCV _ -'------ lA-l L-T L... .......... ~.......... - ~-~- - - - - - -,r'.....-^-~ / / ~ // ? ~~ / ~.. ~,,~ ;'" ~~.- ,; LEGEND 'lJ CloOam mra< <() _"'ITCH <!J PUll! ~ UII<1NI .......,..". @I IoIAIl El Pli5DSR @ 040C0fH'CT '" CIlCOO' nm:HEIl Exhibit C, Page 1 of 5 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 STATEMENT OF SPECIFICATIONS FOR FIRM TRANSMISSION SERVICE 1. TERM OF TRANSACTION Start Date: September 30, 1996, at 2400 hours. Termination Date: The earlier of: (a) 2400 hours on September 30, 2006; or (b) 2400 hours on the termination date established pursuant to Article 2 of this Service Agreement. 2. NETWORK RESOURCES (a) Generation Owned by Port Angeles Resource Capacity Designated as Capacity Network Resource Control Area Scheduling Agent Morse Creek 0465 MW 0.465 MW BPA N/A Pacific Rim 2 umts, 0.400 MW BPA N/A Landfill URPA * 200 kW ea. *Pacific Rim Landfill will not be economically feasible in about 2005 and will be terminated (b) Power Purchased by Port Angeles Source (Contract No.) Capacity Control Area (Delivered From) Scheduling Agent Federal Power Net ReqUirements BPA BPA 96MS-96090 Ra omer SP * j 21 MW BPA BPA *Rayomer SP termmated at the end of February 1997 and will be replaced With PF from BP A. (c) Total Network Resources equals 2(a) + 2(b) 3. NETWORK LOAD Exhibit B of this Service Agreement provides the Transmission Customer's initial annual load and resource information. Pursuant to Section 7.6 of the Tariff, annual load and resource information updates shall be submitted to BP A at the address specified in Article 3.1 of this Service Agreement, by September 30 of each year, unless otherwise agreed to by the Parties. Service Agreement No. 96MS-96090 Exhibit C, Page 2 of 5 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 4. DESCRIPTION OF POINT(S) OF INTERCONNECTION (a) Non-Federal Resource Point of Interconnection Location: Not Applicable Voltage: Metering (Scheduled): Transmission Demand Limit: Delivering Party/Control Area: Exception: (b) Federal Generation Point(s) of Interconnection Location: FCRTS Voltage: Varies by Facility Metering: Scheduled Quantity Transmission Demand: Net Requirements Delivering Party/Control Area: BP A Control Area Exception: 5. DESCRIPTION OF NETWORK POINT(S) OF DELIVERY (a) Points of Delivery (1) Daishowa 69 Kv Point Of Delivery Location: the point in the Government's Port Angeles Substation where the 69 kV facilities of the parties hereto are connected Voltage: 69 kV , Service Agreement No. 96MS-96090 Exhibit C, Page 3 of 5 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 Metering: in the Government's Port Angeles Substation, in the 69 kV circuit over which such electric power flows (2) PORT ANGELES 69 kV POINT OF DELIVERY: Location: the point the Government's Port Angeles Substation where the 69 kV facilities of the parties hereto are connected Voltage: 69 kV Metering: (A) in the Government's Port Angeles Substation, in the 69 kV circuits over which such electric power flows (B) in Port Angeles' Morse Creek Hydroelectric Generation Plant, in the 0.48 kV circuit over which such electric power flows Metering Loss Adjustment: There shall be an adjustment for losses between the Point of Delivery and the point of metering in the Transmission Customer's Morse Creek Hydroelectric Generation Plant. The adjustment is set forth in the BP A letter dated May 29, 1987. BPA and the Transmission Customer will review, from time to time, the factors which are relevant to the metering loss adjustment, and make any appropriate adjustment to the metering loss adjustment based on such review. Exceptions: (1) Revenue meters at metering point (b) are owned by Port Angeles. (3) RAYONIER 69 kV POINT OF DELIVERY: Location: the point in the Government's Port Angeles Substation where the 69 kV facilities of the parties hereto are connected Voltage: 69 kV Metering: in the Government's Port Angeles Substation, in the 69 kV circuit over which such electric power flows Service Agreement No. 96MS-96090 Exhibit C, Page 4 of 5 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (4) Exceptions Common to All Points of Delivery Default Methodology for Calculating Hourly Amounts of Transnrlssion Customer's Generation: In some cases, the resource will be treated as an offset to the Transmission Customer's load. Consumer resources are not subject to this requirement. Calculation Methods For Deternrlning How Meter Readings Are To Be Added or Subtracted to Calculate the Billing Amounts: Because of the combination of 1) the costs and complexities involved with installing revenue quality metering on the Elwha generation, 2) the likelihood that the Elwha projects will be sold to the government as part of implementation ofthe Elwha River Ecosystem and Fisheries Restoration Act, Public Law 102-495 (1992), and 3) under normal operations, the Elwah generation is reduced for load curtailment at the Daishowa Paper Company Plant, Bonneville agrees to set Network Load equal to the sum of metered amounts at the City's Points of Delivery. Therefore, Network Load shall be the sum of Meter Points 251, 152,459, and 1272, minus Meter Point 158 (Daishowa Reverse) and minus Meter Point 1162 (Rayonier Reverse). Bonneville reserves the right to review this decision periodically and if conditions have changed to revise the billing method upon 30 days written notice to the City. (b) Point(s) of Delivery Served by Transfer: Not Applicable 6. DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE OBLIGATION The City of Port Angeles 7. NAME(S) OF ANY INTERVENING SYSTEMS PROVIDING TRANSMISSION SERVICE None Service Agreement No. 96MS-96090 Exhibit C, Page 5 of 5 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 '" 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 as described in Section 1.5 of the Tariff and Section IILB.24 of the General Rate Schedule Provisions of Exhibit H. (b) Where a Transmission Customer's network load is served pursuant to a transmission agreement between BPA and a third party (which is not the Transmission Customer), in order for such load to qualify as a declared CSL, such transmission contract must be for firm transmission service of at least one month to the Transmission Customer's system, and must include a point of delivery (excluding secondary points 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 (excluding secondary points of delivery) set forth in such transmission agreement. (c) Identify for all CSL: (1) Resource: Columbia Storage Power Exchange (CSPE) (A) Amount: (monthly kW) specified in Contract No. 14-03-47310 (B) Supplied by: CSPE, Contract No. 14-03-47310 (C) Control Area Delivered From: BP A (D) Primary point of delivery on (Customer) system: Various Points of Delivery in Port Angeles' service area 9. OTHER PROVISIONS SPECIFIC TO THIS SERVICE AGREEMENT None (TMC-W \TMC\e_files\PM-12\trans-18\Port Angeles\170TNOOl DOC) (W:\MCP\ TMC\CT\96090.DOC) Service Agreement No. .96MS-96090 Exhibit D, Page 1 of 1 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on Septembe:r 30, 1996 SYSTEM IMPACT STUDY A System Impact Study is not required at this time for the service under this Service Agreement. (TMC- W: \ TMC\e_files\PM-12\trans-18\Port Angeles \170TNOO1.DOC) (W.\MCP\TMC\CT\96090 DOC) Service Agreement No. 96MS-96090 Exhibit E, Page 1 of 1 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 FACILITIES STUDY A Facilities Study is not required at this time for the service under this Service Agreement. (TMC. W. \ TMC\e_files\PM-12\trans-18\Port Angeles\170TNOOl.DOC) ('N \MCP\TMC\CT\96090 DOC) Service Agreement No. 96MS-96090 Exhibit F, Page 1 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 SYSTEM OPERATING PROVISIONS Table of Contents Section 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Page Purpose of System Operating Provisions (Provisions) .................................... 1 Term ................................................................................................................. 3 Administra tion of the Provisions .................................................................... 3 Notice ............................................................................................................... 3 Definitions ........................................................................................................ 3 Facility Requirements ..................................................................................... 6 Resource Requirements ......... .............. ....... ................................... ....... ........... 8 Interconnection Principles and Requirements................................................ 14 Power Quality .................................................................................................. 17 Deliveries By Transfer ..................................................................................... 20 Service Interruptions ....................................................................................... 21 Emergency Planning and Operation ............................................................... 23 Information and Metering Requirements ....................................................... 24 Metering Costs ................................................................................................. 34 Comm unications .............................................................................................. 35 1. PURPOSE OF PROVISIONS The purpose of these Provisions is to identify contractual requirements related to s~rvice over BPA's transmission system. (a) These Provisions require the Parties to recognize that: (1) BPA's transmission system is, and will be, directly or indirectly interconnected with transmission systems owned or operated by others; Service Agreement No. 96MS-96090 Exhibit F, Page 2 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (2) The flow of power and energy between such systems shall be controlled by the physical and electrical characteristics of the facilities involved and the manner in which they are operated; and (3) Part of the power and energy being delivered under these Provisions may flow through such other systems rather than through the facilities of BP A. The Parties shall, from time to time as necessary, determine methods and take reasonably appropriate action to assure maximum delivery of power and energy at the points of interconnection and delivery, and at such additional or alternate points of receipt and delivery as may be established by the Parties. (b) Operate and maintain equipment necessary for incorporating the Transmission Customer within BPA's transmission system (including, but not limited to, remote terminal units, metering, communications equipment, telemetering equipment, and relaying equipment). (c) Transfer data (including, but not limited to, instantaneous Spinning and Non-Spinning Operating Reserves, heat rates, fuel costs, and operational characteristics of Network Resources, generation schedules for Network Resources, interchange schedules, unit outputs for redispatch, voltage schedules, flows of real and reactive power, loss factors, switch status, breaker status, megawatt (MW)/megavar flow on lines, bus voltages, transformer taps and other Supervisory Control and Data Acquisition System (SCADA) and real-time data) between their respective control centers. Service Agreement No. 96MS-96090 Exhibit F, Page 3 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (d) Use software programs required for data links and constraint dispatching. (e) Exchange data on forecasted loads and resources necessary for planning and operation. (f) Address any other technical and operational considerations required for implementation of the Tariff, including scheduling protocols. 2. TERM The Transmission Customer shall comply with the provisions contained in these System Operating Provisions, Exhibit F, for the full term of the Service Agreement. 3. ADMINISTRATION OF THE PROVISIONS BP A and the Transmission Customer agree that the Service Agreement and the Tariff govern BP A's provision of Network Integration Service to the Transmission Customer. 4. NOTICE Any notice or request made to or by either Party regarding these Provisions shall be made to the representative of the other Party as indicated in the Service Agreement. 5. DEFINITIONS Unless otherwise specified herein, capitalized terms shall refer to terms defined in the applicable Tariff or the Wholesale Power and Transmission Rate Schedules. (a) "Ancillary Services" means those services necessary to support the transmission of power from resources to loads while maintaining reliable Service Agreement No. 96MS-96090 Exhibit F, Page 4 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 operation of BPA's transmission system in accordance with Good Utility Practice. (b) "Eccentric Load" means an eccentric load defined as any specific cyclic customer or consumer load with the ability to change periodically more than 50 MW in level at a rate of greater than 50 MW per minute, regardless of the duration of this change. (c) "Effective Control Action" (ECA) means an action which when taken results in a specific mitigating response at a location or locations in the power system related to the disturbances of concern, thereby providing acceptable power system performance. (d) "Hourly Data Reported Hourly" (HDRH) means hourly kilowatthour (kWh) and kilovarhour (kvarh) data provided hourly to BPA at the end of each hour. HDRH is taken from sources such as the interchange kWh system. (e) "Hourly Data Reported Monthly" (HDRM) means hourly kWh and kvarh data provided at least monthly to BPA. HDRM is taken from sources such as the Revenue Metering System. (f) "Most Severe Single Contingency" (MSSC) means that single contingency which results in the most adverse system performance under any operating condition or anticipated mode of operation. (g) "Non-Spinning Operating Reserve" means that portion of the Operating Reserve that does not meet the definition of Spinning Reserve. Service Agreement No. 96MS-96090 Exhibit F, Page 5 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (h) "Operational Constraints" means limitations on the ability of the transmission system to operate due to any system emergency, loading, condition, or maintenance outage on BP A facilities, or on facilities of an interconnected utility, that make it prudent to reduce transmission system loadings, whether or not all facilities are in service. (i) "Operating Reserve" means the unloaded generating capacity, interruptible load, or other on-demand rights that the Transmission Customer is able to access within 10 minutes of a power system disturbance and that are capable of being used to serve load on a sustained basis for up to 1 hour. Operating Reserves includes both Spinning Reserve and Non-Spinning Operating Reserves. (j) "Remedial Action Schemes"(RAS) means sets of fast automatic control actions employed to ensure acceptable power system performance following electrical disturbances as determined by BP A powerflows and/or stability studies. This may include generator dropping and load tripping. (k) "Revenue Metering System" (RMS) means a data collection system that electronically measures hourly demand and energy quantities for both kilowatt (kW) and kilovars. Such data is used by BPA on a HDRM basis. (1) "Spinning Reserve" means the unloaded generating capacity of a system's firm resources, which is the portion of Operating Reserve that is synchronized to the power system and provides additional energy as required through being immediately responsive to system frequency. Service Agreement No. 96MS-96090 Exhibit F, Page 6 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (m) "Telemetry" (telemetering) means a data collection system that provides BP A with kW load information on load, generation, powerflow, on a continuous, virtually instantaneous basis. (n) "Transfer Agreement" means a contract between BP A and the Transferor providing for service to the BPA customer. (0) "Transfer Customer" means a BPA customer who receives its BPA power either directly or indirectly from a Transferor. A "Transferor" is an entity that has electrical facilities over which BPA's power must be transmitted in order to serve BPA's customers. (p) "Transmission Customer Resource" means any Transmission Customer-owned resource, regardless of resource location; and any third party (consumer or independent power producer) resource located in the Transmission Customer's service area. 6. FACILITY REQUIREMENTS (a) Ownership (1) Except as otherwise expressly provided, equipment or salvageable facilities owned by one Party and installed on the property of the other will remain the property of the owner. (2) Each Party will identify all movable equipment and other salvageable facilities which it installed on the other's property by permanently affixing suitable markers plainly identifying the owner. Within a Service Agreement No. 96MS-96090 Exhibit F, Page 7 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 reasonable time after such installation, and again after any subsequent modification of such installation, representatives of the Parties will jointly prepare an itemized list of said movable equipment and salvageable facilities. (3) Each Party agrees to be responsible for the cost of compliance with the requirements of all applicable Federal, State, and local environmental laws for its own facilities, even when those facilities are located on the property ofthe other. (b) Safety Design For safety reasons, BPA requires isolation (clearance) of equipment during maintenance, modification, and testing. Facility interconnections between BP A and the Transmission Customer are to be designed and constructed to allow the clearing of equipment using isolating devices. Such devices must produce a visible air gap between the energized facilities and the equipment to be worked .on. Operating procedures associated with this interconnection are to be in compliance with the more stringent of: BPA's Accident Prevention Manual or the Transmission Customer's safety manual. (c) Access to Facilities (1) Whenever one Party has facilities or equipment located on, or planned to be located on the other's property, the property owner will give the facility or equipment owner permission to access such property at reasonable times for any reasonable purpose related to such facilities or equipment, including meter reading, inspection, and/or removal. Only those electric installations used to deliver power that BP A sells Service Agreement No. 96MS-96090 Exhibit F, Page 8 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 or wheels to the Transmission Customer or to measure power integrated by the Transmission Customer into BPA's system will be subject to inspection. The property owner will also provide accurate and up-to-date information on those facilities and equipment owned by the property owner, to the extent needed by the other Party to accomplish its purpose. (2) The inspecting Party will be liable for any injury, loss, damage, or accident resulting from their inspection except as otherwise provided by the terms of this Provisions. 7. RESOURCE REQUIREMENTS (a) Operating Reserves (1) The Transmission Customer shall meet its Spinning and Non-Spinning Operating Reserve obligations by either: (A) purchasing Spinning and Non-Spinning Operating Reserves from BP A through the appropriate Ancillary Services; or (B) meeting or arranging to have a third party meet all or part of its Spinning and Non-Spinning Operating Reserve requirement. A Transmission Customer that meets its Spinning and/or Non-Spinning Operating Reserve requirement by alternative (B) above shall also meet the requirements of section 8(c) below. The Operating Reserve requirement is as specified by the WSCC, NWPP, and implemented by BPA. Inasmuch as BPA is obligated to meet the WSCC's and NWPP's requirements, as they may be modified from time to time, the Transmission Customer recognizes and agrees that its Spinning and Service Agreement No. 96MS-96090 Exhibit F, Page 9 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 Non-Spinning Operating Reserve requirement may change to reflect WSCC and NWPP modifications. (2) The Transmission Customer's Operating Reserve requirement shall be either: (A) as specified by the NWPP Operating Reserve Sharing Program; or (B) as specified by the reliability criteria of the WSCC. The Transmission Customer shall have additional Non-Spinning Operating Reserve equal to the Customer's purchases of interruptible energy less its sales of interruptible energy to any third parties, plus an additional amount of Operating Reserve equal to the Transmission Customer's on-demand obligations during the hour of delivery less its on-demand rights. (3) The Transmission Customer shall restore Operating Reserve to the required level consistent with applicable regional criteria. (4) In order to facilitate the use of Operating Reserve, the Transmission Customer shall reserve unloaded firm transmission capacity at least equal to that Operating Reserve amount. Such transmission may be loaded with interruptible energy so that, upon interruption of the energy, transmission service is available to replace such energy from the Operating Reserve. (5) To achieve efficiency for the entire Control Area and avoid providing redundant Operating Reserve, BP A pools its Operating Reserve with Transmission Customers in its Control Area and a~ other NWPP Members through the NWPP Operating Reserve Sharing Program. Through this contract, BP A has given the Transmission Customer the Service Agreement No. 96MS-96090 Exhibit F, Page 10 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 option of being included in this program through the BP A Control Area requirement. A Transmission Customer electing to participate in the NWPP Operating Reserve Sharing Program through the BP A Control Area shall either pay BP A for meeting the specified Spinning and Non-Spinning Operating Reserve obligations for their resources, or shall preschedule with BP A their expected generation and arrange for meeting the associated Spinning and Non-Spinning Operating Reserve obligation. Transmission Customers electing not to participate shall make available to BP A Operating Reserves equivalent to 100 percent of its MSSC ~s required by NERC. To the greatest extent technically possible, BP A will use the Transmission Customer's Operating Reserves to recover from the Transmission Customer's outages. (b) Remedial Actions Schemes (1) The Transmission Customer may be required to provide or assure at its cost the provision of its pro rata share of RAS required to support the transmission capacity of the transmission path such Transmission Customer uses. (2) If the Transmission Customer is required to provide RAS, then BP A and the Transmission Customer shall jointly plan and coordinate the implementation of the RAS. No Party shall unduly withhold consent regarding the implementation of the RAS. The Transmission Customer may implement the required RAS where it chooses on its system as long as the required level of ECA is obtained. The level of reliability of the RAS design on the Transmission Customer's system Service Agreement No. 96MS-96090 Exhibit F, Page 11 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 shall be at least equal to the level of reliability employed in the design of the overall RAS. (A) The Transmission Customer's contribution to the total operational responsibility for this RAS shall be the ratio of the Transmission Customer's usage of BP A's share ofthe path to the total rating of BPA's share of the transmission path. (B) BP A shall provide the appropriate control signal or signals to the Transmission Customer. (C) The Transmission Customer shall provide the necessary equipment to receive and transmit the control signal or signals to and from the Transmission Customer's transmission, generation, and/or control center facilities to arm and initiate the appropriate ECA or Actions determined by BP A. (c) Operation of Resources The Transmission Customer shall operate its generating resources in a manner consistent with Good Utility Practice and the standards, criteria, and requirements ofNERC, WSCC, NWPP, BPA, and any applicable Regional Transmission Association (RTA). The Transmission Customer shall pay the cost of necessary communications installations, modification of BPA's computer hardware and software, and all other costs incurred by BP A in supporting the operation of the Transmission Customer's resource in BP A's Control Area. These costs shall include, but not be limited to, accommodating the Transmission Customer's decisions to either change Control Areas or not supply its Spinning or Non-Spinning Operating Reserve Service Agreement No. 96MS-96090 Exhibit F, Page 12 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 obligation by purchasing from BP A. Any resources used by the Transmission Customer to meet its Spinning and Non-Spinning Operating Reserve requirements, whether the Transmission Customer's Network Resources or a third party's generating resources, shall meet the same WSCC, NWPP, and other applicable requirements, practices, and procedures as BPA's generating resources providing these same services including, but not limited to, Automatic Generation Control (AGC) capability, reserve availability, ramp rate, governor response, random testing, and a monthly startup test. (d) Redispatch to Manage Transmission Constraints (1) If BP A determines that the redispatch of Network Resources (including reductions in off-system purchases) to relieve an existing or potential transmission system constraint is the most effective way to ensure the reliable operation of the transmission system, BP A will redispatch its and the Transmission Customer's Network Resources on a least-cost basis consistent with Good Utility Practice, without regard to the ownership of such resources. BP A will apprise the Transmission Customer of its redispatch practices and procedures, as they may be modified from time to time. (2) The Transmission Customer will submit verifiable incremental and decremental cost data for its Network Resources, which estimates the cost to the Transmission Customer of changing the generation output of each of its Network Resources, to BPA by data link when submitting its preschedules. These costs will be used, along with similar data for BPA's resources, as the basis for least-cost redispatch for the next day's operations (or the next days' operations if the Service Agreement No. 96MS-96090 Exhibit F, Page 13 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 preschedule is submitted on a Friday or the day before a holiday). BPNs grid operation staff will keep these data confidential, including from BPA's marketing staff. If the Transmission Customer experiences changes to its costs during the following day, the Transmission Customer must submit those changes to BPA's control center. BPA will implement least-cost redispatch consistent with its existing contractual obligations and its current practices and procedures for its own resources. The Transmission Customer is obligated to respond immediately to requests for redispatch from BPA's control center. (3) The Transmission Customer may audit particular redispatch events, at its own expense, during normal business hours following reasonable notice to BP A. Either the Transmission Customer or BP A may request an audit of the other Party's cost data by an independent agent at the requester's cost. 8. INTERCONNECTION PRINCIPLES AND REQUIREMENTS (a) General Interconnection Principles (1) Each Party shall at all times cooperate with other interconnected systems in establishing arrangements or mitigation measures to minimize operational impacts on each other's systems. (2) Each Party recognizes that a party's proposed new interconnection or modification of an existing interconnection between that Party's system and the system of a third party, may cause adverse Service Agreement No. 96MS-96090 Exhibit F, Page 14 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 anticipated effects on the system of the other Party. The Party making such interconnection or modification shall minimize, or otherwise compensate for, adverse operational effects to the other Party's system. (b) Conditions of Service (1) The Parties recognize that operation and technical problems may arise in the control of the frequency and in the flow of real and reactive power over the interconnected transmission systems. The Parties may adopt operating rules and procedures as necessary to assure that, as completely as practical, the delivery and receipt of real and reactive power and energy hereunder is accomplished in a manner that causes the least interference with such interconnected systems. A Transmission Customer interconnecting with BPA's transmission system is obligated to follow the same practices and procedures for interconnection and operation that BP A uses for its own load and resources. (2) Where the Transmission Customer purchases Ancillary Services from third parties, the Transmission Customer shall have the responsibility to secure contractual arrangements with such third parties that are consistent with the Tariff, these Provisions, and any applicable rules and procedures developed by the Parties. (c) Interconnection Requirements The Transmission Customer shall: (1) provide all Ancillary Services itself, including those necessary to operate as a Control Area consistent with Service Agreement No. 96MS-96090 Exhibit F, Page 15 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 Good Utility Practice and under applicable guidelines of NERC, WSCC, NWPP, BPA, and of any applicable RTA; (2) satisfy its Control Area requirements, including all Ancillary Services, by contracting with BP A; or (3) satisfy its Control Area requirements, including all Ancillary Services, by contracting with another entity which can satisfy those requirements in a manner that is consistent with Good Utility Practice and the standards, criteria and requirements ofNERC, WSCC, and NWPP, BPA and any applicable RTA. The Transmission Customer shall plan, construct, operate, and maintain its facilities and system in accordance with Good Utility Practice, which shall include, but not be limited to, all applicable guidelines ofNERC, WSCC, and NWPP, BPA and any applicable RTA as they may be modified from time to time, and any generally accepted practices in the region that are consistently adhered to by BP A. (d) Generation Integration (1) Resources connected directly to BPA's system are subject to compliance with the generation integration requirements consistent with Good Utility Practice, and all applicable standards of NERC, WSCC, NWPP, BPA and any applicable RTA, as they may be modified from time to time, and any generally accepted practices in the region that are consistently adhered to by BP A. All resources integrated into a Transmission Customer's system which, by virtue of their point of connection, are capable of energizing BPA facilities must comply with the safety-related requirements of the above standards, including those for relay protection, insulation coordination, switchgear, and safety. This requirement would typically apply to generators that are integrated into a system that is connected radially from a tapped BPA Service Agreement No. 96MS-96090 Exhibit F, Page 16 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 transmission line or BP A substation. Other resources integrated into a Transmission Customer's network are subject only to the provision that all points of interconnection between BPA and the Transmission Customer be operated and maintained in a manner consistent with Good Utility Practice. (2) The Transmission Customer agrees to notify BPA a minimum of 18 months before energization of the resource if it is expected to impact the BPA transmission system. 9. POWER QUALITY (a) Character of Service Unless otherwise provided in these Provisions, BPA will make electric power available to the Transmission Customer in the form of 3-phase alternating current, at a nominal frequency of 60 hertz (hz). (b) Voltage Levels (1) Voltage Levels on the Integrated Network Transmission System BP A has the right to operate its transmission system as provided below and cannot accept any restriction of that right. (A) 500 Kilovolt (kV) System BPA will normally operate its 500 kV transmission system in a range from the nominal voltage to 10 percent above the nominal voltage (500 to 550 kV). Service Agreement No. 96MS-96090 Exhibit F, Page 17 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (B) 115 to 345 kV System BPA usually operates its 115 to 345 kV transmission system within +/-5 percent of the nominal voltage. BPA may allow some of its transmission lines or facilities to operate above or below the normal voltage limits where no substantive damage will occur from this operation. (2) Voltage Levels at Points of Delivery When the nominal voltage at the Transmission Customer's points of delivery is 115 kV or more, BPA will deliver power to the Transmission Customer at the operating voltage of the transmission system. If the nominal voltage at the Transmission Customer's points of delivery is below 115 kV, the delivery voltage may differ from the operating voltage of the transmission system as a result of the "turns ratio" and impedance of the transformer providing the delivery servIce. (3) Voltage Schedules Voltage schedules are necessary for the efficient and reliable transmission of electrical power. BPA will estaplish a voltage schedule for each critical or key substation, as determined by BP A. Depending on the hourly operating requirements at each substation and at each point of generation interconnection, BP A will issue a target voltage (setpoint) for the voltage schedule. At any time, BP A may reset the voltage schedule. The Transmission Customer agrees to take all appropriate actions to help BP A maintain the established voltage schedule. Service Agreement No. 96MS-96090 Exhibit F, Page 18 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (4) Reactive Power Each Party agrees to design, construct, operate, maintain, and use its electric facilities in accordance with Good Utility Practice to minimize the reactive power requirements placed on the other Party. At times during abnormal system conditions, BP A may need the Transmission Customer to supply additional reactive power from its reactive sources (relative to normal requirements) to maintain reasonable voltage levels. The Transmission Customer agrees to use reasonable efforts to comply with BPA's request. (5) Balancing Phase Demands The current on anyone phase may not deviate by more than 5 percent from the average of the currents on all three phases, unless otherwise agreed by the Parties. (6) Voltage and Current Harmonic Control Each Party agrees to design, construct, operate, maintain, and use its electric facilities in accordance with Good Utility Practice to reduce, to acceptable levels, the harmonic currents and voltages which pass into the other Party's facilities. To that end, the Parties will be guided by the recommended practices and requirements for harmonic control specified in The Institute of Electrical and Electronics Engineers, Inc. (IEEE) Electrical Power System Standard 519-1992, or its successor. The Parties will accomplish harmonic reductions using equipment which is specifically designed, and permanently operated and maintained, as an integral part of the facilities of the Party which owns the system on which the harmonics are generated. Service Agreement No. 96MS-96090 Exhibit F, Page 19 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (7) Voltage Fluctuation and Flicker Voltage fluctuation and flicker is normally detectable through visible variations in light intensity. However, flicker may be present even when no light variations are detectable. Since flicker is disruptive to lighting and can damage or disrupt operation of electronic equipment, it must be controlled. IEEE Recommended Practices and Requirements for Harmonic Control in Electric Power Systems (IEEE Standard 519) provides definitions and limits on acceptable levels of voltage flicker, as set by IEEE 519. Both Parties agree to control voltage flicker on their respective systems as required by the IEEE standard. 10. DELIVERIES BY TRANSFER (a) If BP A delivers power to the Transmission Customer over third party facilities through a Transferor, BPA will use its best efforts to ensure that the Transferor provides such service in a manner that is comparable in quality to direct Federal service. (b) Although a Transmission Customer may receive its BPA power service through a Transferor, the following contractual requirements relating to the installation, operation, and maintenance of facilities will apply as if the service were provided directly by BP A: (1) requirements to reduce the Transmission Customer's reactive power requirements to acceptable levels; (2) requirements to reduce harmonics currents and voltages caused by the Transmission Customer's system or its consumer's loads to acceptable levels; Service Agreement No. 96MS-96090 Exhibit F, Page 20 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 and (3) requirements to reduce voltage flicker caused by the Transmission Customer's system on consumer's loads to acceptable levels. 11. SERVICE INTERRUPTIONS (a) Maintenance Requirements (1) The Parties shall establish procedures to coordinate the maintenance schedules of their generating resources and transmission and substation facilities, to ensure sufficient transmission resources are available to maintain system reliability and reliability of service. The Parties shall use the standards of the NWPP as the standard for scheduling maintenance. (2) The Parties shall: (A) obtain concurrence from the other Party, at least 72 hours before beginning any scheduled maintenance of its facilities that could impact the other Party's transmission system and/or the safety of either Party's system; and (B) notify the other Party when the Transmission Customer is ready to begin maintenance on a Network Resource, transmission line, or substation (operated at 60 kV and above) that could imp,act the other Party's transmission system. The Parties shall immediately notify each other at the time when any unscheduled or forced outages occur and again when such unscheduled or forced outages end. The Parties shall notify and coordinate with each other prior to reconnecting the Network Resource, transmission line, or substation. Service Agreement No. 96MS-96090 Exhibit F, Page 21 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (3) Maintenance schedules will be posted on the OASIS consistent with OASIS rules for posting. (b) Outages The Parties or a Transferor may temporarily interrupt, reduce, or shift deliveries of electric power if either Party determines that such interruption or reduction is necessary or desirable in case of system emergencies, operational constraints, Uncontrollable Forces, or to install equipment in, make repairs to, make replacements within, conduct investigations and inspections of, or perform other maintenance work on the Parties' facilities or the Transferor's facilities. To the extent reasonable or appropriate, the Parties will use temporary facilities or equipment to minimize the effect of any such interruption or outage. (c) Emergency or Breakdown Relief (1) If a Party requires additional power to meet its needs during a system emergency, such affected Party may ask the other to supply the needed power. Upon request, the other Party will supply as much of the requested power as possible, consistent with its reserve requirements and obligations to its other customers. The supplier's determination of the amount of power available for this purpose is final and conclusive. (2) ~f either Party supplies power to the other under section (a) above and requests replacement of that power, the other will make an equivalent amount of power available to the supplier and at such times as may be agreed upon by the respective parties' dispatchers. If Service Agreement No. 96MS-96090 Exhibit F, Page 22 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 the Party supplying the power does not request replacement of that power, the other will pay for the power at the price established at the time of delivery. (d) Voltage Imbalance When the Transmission Customer detects, at its points of delivery or points of interconnection with BP A, any voltage imbalance that could cause \ equipment damage, the Transmission Customer is responsible for taking appropriate action to prevent or minimize such damage and loss of service and reporting the condition to BPA's system operator or dispatcher. 12. EMERGENCY PLANNING AND OPERATION (a) BP A shall be responsible for planning, coordination, and implementing emergency operation schemes. Examples of such schemes include but are not limited to, the NWPP underfrequency load shedding program, the undervoltage load shedding program, and the system restoration plan. There may be additional schemes that meet the NWPP, WSCC, and RTG reliability planning objectives. If BP A identifies reliability objectives beyond the NWPP, WSCC, and RTG objectives, they shall be communicated to the Transmission Customer(s). The need to identify additional objectives may involve, but not necessarily be limited to, anticipated reduction in system restoration time following blackout or brownout emergencies. (b) The Transmission Customer shall: (1) participate in the development of load shedding programs for system security; (2) install and maintain the required load shedding relays, including but not necessarily limited to underfrequency and undervoltage relays; and (3) participate in system restoration planning. Service Agreement No. 96MS-96090 Exhibit F, Page 23 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 Disputes with any of the requirements specified by BP A shall be resolved through the applicable dispute resolution process described in the applicable Tariff. 13. INFORMATION AND METERING REQUIREMENTS Metering Requirements At Transmission Customer Facilities Basic metering requirements are identified below. Particular products and services that the Transmission Customer chooses may require additional metering. Any such additional metering requirement will be identified by BP A before the Transmission Customer makes its product selection. (a) Points of Interconnection for Generation The following metering requirements apply to points of generation interconnection onto BPA's system for the Transmission Customer's Resources. Resources will be evaluated individually for the purpose of determining metering requirements. If BP A demonstrates a planning, operational, or billing need for meters other than those specified below, BPA may install such meters at its own expense. Notwithstanding the provisions specified in sections (1) through (4), below, any Transmission Customer Resource of less than 15 MW that is located outside the Transmission Customer's own service area must be metered on an HDRM basis unless all three affected parties (BPA, the resource owner, and the utility within whose service area the resource resides) agree to a negotiated average hourly output. Service Agreement No. 96MS-96090 Exhibit F, Page 24 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 For purposes of the BPA determinations detailed below, "resource rating" is equal to the sum of all resource components integrated at a single site. (1) Resources Less Than 1 MW (Existing and New) If the Transmission Customer's resource has a peak capability of less than 1 MW, no metering is generally required. However, BP A reserves the right to install metering at its own expense if it is needed. BP A will either treat the resource as "negative load" or will negotiate an estimated hourly average output with the Transmission Customer. The Service Agreement will specify how such hourly estimates will be recorded. (2) Existing Resources From 1 MW to 3 MW If the Transmission Customer's resource, existing on the Effective Date, has a peak capability of at least 1 MW but less than 3 MW, BP A will determine whether to meter the resource output on an HDRM basis or designate an output that is equal to the appropriate generation capacity factor (peak capability of the resource multiplied by a default capacity factor of 60 percent for hydro and 90 percent for all other resources). BPA's determination and the resource data (name and size of the resource) will be recorded in the Service Agreement. BP A will pay for any required meters. (3) Existing Resources From 3 MW to 15 MW If the Transmission Customer's resource has a peak capability of at least 3 MW but less than 15 MW, BPA will determine whether to: Service Agreement No. 96MS-96090 Exhibit F, Page 25 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (A) use an appropriate generation capacity factor (peak capability of the resource multiplied by a default factor of 60 percent for hydro and 90 percent for all other resources); or (B) install telemetering, HDRH, and/or hourly metering at its own expense to meter the output of any Transmission Customer resource existing on the Effective Date. BPA's determination will be recorded in the Service Agreement. (4) Existing Resources Over 15 MW To meter the output of any Transmission Customer resource that is existing on the Effective Date and is 15 MW or more in size, BP A may, at its own expense, install telemetering (analog and HDRH) and HDRM metering. (5) New Resources or Upgraded Resources from 1 MWto 3 MW If, after the Effective Date, the Transmission Customer acquires a resource of 1 MW to 3 MW in size or upgrades an existing resource such that its peak capability is now at least 1 MW, but less than 3 MW, the Transmission Customer must meter such resource hourly at its own expense to provide HDRM to BP A for billing purposes. The Transmission Customer and BP A agree to negotiate the estimated average hourly output to be used for operational purposes. (6) New Resources or Upgraded Resources 3 MW or More If, after the Effective Date, the Transmission Customer (or one of its consumers) acquires a resource that has a peak capability of 3 MW or more, the Transmission Customer will meter such resource at its own Service Agreement No. 96MS-96090 Exhibit F, Page 26 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 expense using telemetering and HDRH metering unless another arrangement is approved by BP A. The reactive power (kvarh) metering must record both lagging and leading reactive power quantities. (b) Points of AGC Interchange The following metering is required for each AGC Interchange point (a point on a Control Area boundary between two Control Areas): (1) telemetering of the kW at such point; and (2) metering with HDRH capable of providing summaries, within 3 minutes of the end of each clock-hour, of the kWh and kvarh (lagging and leading) exchanged during the previous hour. (c) Other Electrical Connections (1) Unless BPA grants an exception, the Transmission Customer must have all electrical interconnections with BP A other than AGC interchange points and points of generation integration metered for HDRM for both kWh and kVArh (lagging and leading) quantities. (A) Hourly metering will be installed by BP A unless BP A agrees to other arrangements. A mutually acceptable schedule for such installation will be negotiated between BP A and the Transmission Customer, subject to availability of BP A resources. If the Transmission Customer wants to receive expedited metering installation, the Transmission Customer Service Agreement No. 96MS-96090 Exhibit F, Page 27 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 will bear the extra cost of resources necessary to provide that expedited installation. (B) If BP A agrees to other electronic metering arrangements as provided in (A) above, BP A will have no maintenance responsibility for the metering unless paid maintenance arrangements are made. (2) If, at a given point, there is no metering in place that reports data to BP A on an electronic, basis every month, metering data collected by the Transmission Customer must be delivered to BPA's billing operatIon groups within 24 hours of the end of the billing period. BP A reserves the right to require other metering to be installed at the Transmission Customer's expense if the Transmission Customer's data is late more than twice in any 12-month period. (d) Eccentric Loads The Transmission Customer will separately meter each of its Eccentric Loads using telemetering equipment or the equivalent. Transmission Customers buying load regulation from BPA must notify BPA if they have a consumer whose load qualifies as an eccentric load. (e) Metering Standards (1) Unless BPA grants an exception, all metering installations are to be designed to meet American National Standards Institute (ANSI) Standard C12 (American National Standard Code for Electricity). Service Agreement No. 96MS-96090 Exhibit F, Page 28 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (2) All meters at new installations where the interconnections are "normally closed" must be capable of providing hourly data electronically (either HDRM or HDRH, as required) unless BPA otherwise agrees. (3) BPA will determine whether hourly data or meter slips are required for those interconnections that are normally operated in the "normally open" mode. (4) All meters providing data electronically to BPA must be compatible with BPA's electronic metering systems. (5) As of the Effective Date, BP A principally uses a telemetering system, a kWh system, and a RMS for metering. There may be acceptable alternatives to each of these specific systems. The Transmission Customer agrees to consult with BP A to ensure compatibility of any Transmission Customer meter with BPA's then-current metering system. (6) Meters at loads of 1 MW or more in peak demand must be in the 0.2 percent accuracy class or better. Meters at loads of less than 1 MW peak demand must be in the 0.5 percent accuracy class or better. Instrument transformers must have a metering accuracy of 0.3 percent when current, voltage, and metering transformer loadings (burdens) are all within rated limits. Service Agreement No. 96MS-96090 Exhibit F, Page 29 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (7) The Transmission Customer agrees to coordinate with BP A to determine BPA's information and communication needs when designing future meter installations. (8) BPA-installed metering is to be used exclusively for BPA purposes unless otherwise agreed. (9) Until the required metering capability is installed (assuming it is not installed by the Effective Date), the Parties will calculate hourly quantities using the load factor at the metering point to determine the Heavy Load Hour (HLH)/Light Load Hour (LLH) split for energy delivered to that point. For points of delivery with no meter for recording demand, demand will be deemed to be the average energy delivery multiplied by a multiplier specified in the applicable transmission rate schedule for the Transmission Customer's firm power service. For all calculations other than demand, the energy will be spread evenly across the hours within each diurnal period. If this arrangement is not acceptable to BP A or to the Transmission Customer, the dissatisfied party may pay to have hourly metering installed. The default (load factor) billing approach will be used until such hourly metering can be installed. No retroactive billing adjustments will be made after the metering is installed. (10) Either Party has the right to install, at its own expense, meters meeting the standards provided in this section whenever a default billing methodology is being used in lieu of physical metering. Service Agreement No. 96MS-96090 Exhibit F, Page 30 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (11) Unless otherwise agreed, BPA will own and maintain RMS equipment which is used for BPA business purposes and which is installed on or after the Effective Date, without regard to who originally paid for the equipment. The Transmission Customer agrees to give BP A "first right of refusal" for performing meter maintenance. BP A will bill the Transmission Customer for maintenance performed by BP A and for any needed replacement of meters that were originally purchased by the Transmission Customer. (12) If any Transmission Customer meter used to supply billing data fails to meet BPA standards for accuracy and reliability, BPA may, at Transmission Customer expense, have such metering repaired or replaced with a meter that complies with BP A standards. (f) Data, Information, and Reports The Transmission Customer shall provide BP A with a transmission schedule pursuant to the Transmission Scheduling Provisions, Exhibit G, of the Service Agreement. (g) Data Reporting Requirements (1) When HDRH data is required, hourly metered data for points of AGC interchange must be furnished electronically to BPA's Dittmer and Munro Control Centers within 3 minutes after the end of each clock- hour. Data is to be reported through the BPA kWh metering system, inter-utility data exchange system (IDES) or an approved alternative. (2) Hourly metered data for: Service Agreement No. 96MS-96090 Exhibit F, Page 31 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (A) points of delivery (excluding points of AGC Interchange); (B) new large single load (NLSLs); and (C) eccentric loads is to be furnished to BP A at least once a month (HDRM), at the end of BPA's billing cycle for the Transmission Customer. (3) The Transinission Customer agrees to submit a meter slip to BP A for all metering points which do not currently have: (A) metering capable of providing hourly kWh and kvarh quantities to BP A; or (B) electronic communications for such metered amounts (through the RMS or equivalent). (4) When required, telemetered data must be furnished to BPA's Dittmer and Munro Control Centers continuously on a real-time basis via 10- 30 hz telemetry, BPA's Supervisory Control and SCADA or another data collection method as determined by BP A. (5) When HDRH data is required, hourly metered data for points of generation integration and points of AGC interchange must be furnished to BPA's Dittmer and Munro Control Centers at the end of each clock-hour. Data is to be reported through the BPA kWh metering system, IDES or an approved alternative. Service Agreement No. 96MS-96090 Exhibit F, Page 32 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (6) Hourly metered data for: (A) points of delivery (excluding points of AGC Interchange); (B) NLSLs; and (C) eccentric loads is to be furnished to BP A at least once a month (HDRM), at the end of BPA's billing cycle for the Transmission Customer. (7) The Transmission Customer agrees to submit a meter slip to BP A for all metering points which do not currently have: (A) metering capable of providing hourly kWh and kvarh quantities to BP A; or (B) electronic communications for such metered amounts (through the RMS or equivalent). (h) Metering Tests Both BP A and the Transmission Customer will inspect and test each of its respective meters used to measure power flowing between the Parties: (1) with the same frequency and using the same standards as BPA; and (2) upon the request of the other Party. Service Agreement No. 96MS-96090 Exhibit F, Page 33 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 Each Party will give reasonable notice to the other stating when a test or inspection will occur. The other Party has the right to have one or more representatives present at such test or inspection, regardless of meter ownership or location. Meters will be properly tested and calibrated to the manufacturers specifications. 14. METERING COSTS (a) Metering of Existing Facilities BP A shall be responsible for the costs of any BP A-required meter replacement or new meter installation at any Transmission Customer facility that is used for delivery of Federal power at an existing facility on the Effective Date of this Service Agreement. The Transmission Customer shall be responsible for the costs of: (1) any meter replacement or new installation at points of delivery which are not required to achieve the best overall plan of service (convenience pomts of delivery); and (2) meters needed because the Transmission Customer is removing load from BP A; and/or meters requested by the Transmission Customers. (b) Metering of New Transmission Customer Facilities The Transmission Customer will pay all costs associated with installing BPA-approved metering at any ofthe following types of facilities whenever the Transmission Customer, after the Effective Date of this Service Service Agreement No. 96MS-96090 Exhibit F, Page 34 of 34 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 Agreement, establishes a new facility for which BPA has determined that metering is required: (1) all points of generation (resource) integration; and (2) all AGC interchange points; and (3) all other points of electrical interconnection, including convenience points of delivery 15. COMMUNICATIONS (a) The Transmission Customer shall, at its own expense, install and maintain two communication links for scheduling. One communication link shall be used for data transfer and the other link for voice communication. (b) A Transmission Customer either contributing to its own Spinning and/or Non-Spinning Operating Reserve obligations or securing these services from a third party shall, at its own expense, install and maintain a minimum of three communications links between all parties for real-time operations purposes. Two redundant alternately routed communications links shall be used to pass necessary operating and reserves related information between BP A and the appropriate resources and/or third parties. The third link shall be used for voice communications purposes. (TMC-W:\TMC\e_files\PM-12\trans-18\Port Angeles\170TNOOl DOC) (JV \MCP\TMC\CT\96090 DOC) Service Agreement No. 96MS-96090 Exhibit G, Page 1 of 6 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours d on September 30, 1996 TRANSMISSION SCHEDULING PROVISIONS 1. PURPOSE OF THIS EXHIBIT The purpose of this exhibit is to describe how the Parties will effect transmission transactions under this Service Agreement. 2. EXHIBIT PROVISIONS (a) Scheduling Principles The procedures in this exhibit are intended to achieve the following principles: (1) promote efficient system operations; and (2) provide workable scheduling procedures for the timely delivery of power. (b) Control Area Requirements (1) In order to schedule power, a Transmission Customer must designate a Host Control Area (HCA) as defined by NERC to implement its schedules. The HCA may be the sending Control Area, the receiving Control Area, or an intermediary Control Area. (2) BP A shall be the HCA for any transaction involving either: (A) generation located within BPA's Control Area; or (B) service to a load within BPA's Control Area. (3) If BP A is the intermediary Control Area in a single transaction or set of transactions, the Transmission Customer may designate a HCA other than BPA. The Transmission Customer must inform BPA of its choice no later than the time of preschedule. BP A has no obligation to accept schedules from any HCA that does not agree to abide by the scheduling requirements set forth in this exhibit. (4) If the Transmission Customer has designated a HCA for a single schedule, it must remam the HCA for the entire duration of the schedule. In the event the Transmission Customer fails to identify a Service Agreement No. 96MS-96090 Exhibit G, Page 2 of 6 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 RCA for its next schedule, BP A will assume that the designated RCA is the same entity as designated for the Transmission Customer's last schedule. Any designation changes shall be made pursuant to Article 3 of this Service Agreement. (5) The Transmission Customer may arrange interchange schedules; however, the RCA shall confirm and then implement the interchange schedule. The RCA is responsible to the WSCC and NERC for the interchange scheduling arrangements of the Transmission Customer, including the responsibility for resolving any inadvertent energy accumulation that may result from the Transmission Customer's incorrect or uncoordinated scheduling of the interchange. (6) Any Transmission Customer for whom BPA is the RCA must schedule transmission to or from BPA's Control Area, i.e., the Transmission Customer's Scheduling Agent is BPA for purposes of scheduling transmission under this exhibit. (7) Any Transmission Customer or its Scheduling Agent using a RCA other than BP A must establish and verify schedules with other Control Areas through the RCA, but the RCA is responsible for implementing and assuring the accuracy of the schedule. (c) Coordinating Requirements (1) All schedules must be provided to BPA on Workdays (defined as any day both Parties consider a workday). (2) Schedules apply to the following day or days (if the following day or days are not Workdays). (3) Scheduled hourly values are to be referenced by the "hour ending" time on the 24-hour Clock (i.e., the schedule for 2-3 p.m. is referred as the "hour ending 15"). (4) Unless otherwise agreed, all schedules will be effectuated on an hourly basis using the standard 20-minute ramp period centered on the hour (i.e., beginning 10 minutes prior to the hour and ending 10 minutes after the hour). (5) All schedules with BP A are to be stated in Pacific Time (PT) and are to begin with the hour ending 1. Service Agreement No. 96MS-96090 Exhibit G, Page 3 of 6 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (6) The Transmission Customer or its Scheduling Agent agrees to submit all hourly prescheduled quantities in whole megawatthour amounts. (d) Pre scheduling Requirements Pre scheduling is the process of establishing hourly schedules through the following Workday(s). (1) Pre schedule Submissions (A) The Transmission Customer or its Scheduling Agent agrees to submit schedule(s) covering all Non-Federal transactions into, out of, or within BPA's Control Area. (B) BP A may require Transmission Customers or its Scheduling Agent to submit estimated pre schedules prior to the final preschedule. (C) The Transmission Customer or its Scheduling Agent agrees to submit a final hourly preschedule for the next day or days by 1000 of each Workday. (D) The maximum number of pre schedule days is 4 days, except that by mutual agreement BPA may accept preschedules for up to 5 or 6 days as needed to accommodate a Transmission Customer's special scheduling requirements for contiguous weekend-holiday periods. (For example, BPA will accept schedules for the period Thanksgiving Thursday through Monday if the Transmission Customer observes the Friday after Thanksgiving as a holiday.) (2) Information Required to Be Included in Pre schedule Any schedule submitted to BP A by the Transmission Customer or its Scheduling Agent must include, at a minimum, the following information: (A) the RCA; (B) the supplier, receiver, and wheeling entities involved in the transaction; (C) the MW amount of the schedule; Service Agreement No. 96MS-96090 Exhibit G, Page 4 of 6 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (D) the starting and ending times for each schedule; (E) the transmission service being scheduled; and (F) the point of receipt/delivery for the transaction. (e) Changes from Pre schedule (1) The Transmission Customer or its Scheduling Agent may not change the hourly amounts of its preschedules except by mutual agreement with BPA. Notwithstanding such right, the Transmission Customer or its Scheduling Agent will use good faith efforts to avoid requests for changes from preschedule. (2) To the extent changes from the preschedule become necessary, the Transmission Customer or its Scheduling Agent must submit such requests no later than 30 minutes prior to the scheduled hour for which the change becomes effective. (3) Multihour changes from preschedule shall specify an "hour beginning" and an "hour ending" and shall never be stated as "until further notice." (4) Upon a Transmission Customer's or its Scheduling Agent's request, BP A will consider midhour changes from pre schedule under critical operating conditions such as loss of a resource or transmission path. The Transmission Customer or its Scheduling Agent and BPA must agree to the effective time, ramp duration, integrated, and revised net schedules for midhour changes. Midhour schedule changes shall not be made for economic or load shaping purposes. Such changes are subject to applicable charges. Service Agreement No. 96MS-96090 Exhibit G, Page 5 of 6 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (f) Wheeling Requirements Scheduling Requirements for Wheeled Power The Transmission Customer's Scheduling Agent and HCA must ensure that any wheeling contract(s) to which they are a party on behalf of the Transmission Customer provide(s) for the following: (1) The Transmission Customer or its Scheduling Agent must arrange schedules with affected wheeling entities to or from the agreed-upon point of receipt/delivery; (2) IfBPA provides wheeling service, including those for which BPA is the HCA, the Transmission Customer or its Scheduling Agent must notify BPA of changes to wheeling arrangements no later than 30 minutes prior to the scheduled hour for which the wheeled energy transaction becomes effective. (3) The Transmission Customer or its Scheduling Agent must acquire Transmission consistent with BPA's Transmission Reservation and Scheduling Procedures and the Point-to-Point and NT Tariffs. (g) Emergency Requirements (1) Loss of Transmission Path (A) The path operator shall notify affected Transmission Customers, their Scheduling Agent, and HCA as rapidly as possible of the loss of a transmission path. (B) The path operator will establish the effective time (midpoint of ramp) of schedule change. (C) All parties to a transaction shall terminate or modify schedules, as required, per the established effective time, and agree on integrated and revised net schedules. (2) Loss of Generating Resource The Transmission Customer agrees to adhere to the following requirements for any resources that it operates and agrees to ensure, Service Agreement No. 96MS-96090 Exhibit G, Page 6 of 6 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 through contractual arrangement, that any entity operating a resource on its behalf likewise agrees to the following: (A) The operating entity (generating entity) will notify BP A and affected Transmission Customers, their Scheduling Agent, and RCA as quickly as possible of the resource loss. (B) The entity with Control Area responsibility will establish the effective time (midpoint of ramp) of schedule change. (C) All parties to a transaction shall terminate or modify schedules, as required, as of the established effective time, and agree on integrated and revised net schedules. (3) General Provisions Regarding Emergencies BPA and the Transmission Customer, its Scheduling Agent, and RCA agree to expedite communications to avoid accumulation of inadvertent powerflows or net schedules which place a control burden on other Control Areas. (h) Mter-the-Fact Reconciliation The Transmission Customer or its Scheduling Agent agrees to reconcile all schedules and accounts each week with a final reconciliation at the end of each month consistent with the following principles: (1) The Transmission Customer or its Scheduling Agent and BP A will verify all scheduled transmission. (2) The Transmission Customer or its Scheduling Agent and BP A will agree on current product balances, loss calculations, and loss schedules, where appropriate. (3) The Transmission Customer or its Scheduling Agent will assist BP A, as necessary, to reconcile all inadvertent energy in a timely manner. 3. EXHIBIT REVISIONS The provisions in this exhibit may be revised by agreement of the Parties. (TMC- W \ TMC\e_files\PM-12\trans-18\Port Angeles \170TNOO1.DOC) (W:\MCP\ TMC\CT\96090.DOC) Service Agreement No. 96MS-96090 Exhibit H, Page 1 of 1 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 WHOLESALE POWER AND TRANSMISSION RATE SCHEDULES (Reference the 1996 Wholesale Power and Transmission Rate Schedules or its successor.) (TMC- W' \ TMC\e_files\PM-12\trans-18\Port Angeles\170TNOO1.DOC) (W \MCP\TMC\CTl96090 DOC) Service Agreement No. 96MS-96090 Exhibit I, Page 1 of 1 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 FACILITIES CHARGES Facilities Charges are not required at this time for the service under this Service Agreement. (TMC- W \ TMC\e_files\PM-12\trans-18\Port Angeles \170TNOO1.DOC) (W:\MCP\TMC\CT\96090 DOC) Service Agreement No. 96MS-96090 Exhibit J, Page 1 of 4 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 ANCILLARY SERVICES 1. ANCILLARY SERVICES PROVIDED Provided By Contract No. (a) Scheduling and Dispatch BPA - TBL 96MS-96090 (b) Energy Imbalance Not Applicable (c) Control Area Reserves for Resources BP A (PBL) 96MS-95027 (d) Control Area Reserves for Interruptible BP A (PBL) 96MS-95027 Purchases (e) Load Regulation BP A (PBL) 96MS-95027 (f) Transmission Losses Compensation for Transmission Losses associated with the delivery of power over the FCRTS under this Service Agreement shall be governed by the following provisions: (1) Transmission Losses Associated with Federal Power. Losses associated with Federal power purchased pursuant to BPA's PF-96, NR-96 and IP-96 Wholesale Power and Transmission Rate Schedules are provided by BPA and included in the rate for such power. No additional compensation is required. Service Agreement No. 96MS-96090 Exhibit J, Page 2 of 4 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (2) Transmission Losses Associated with Non-Federal Power and Other Classes of Federal Power. The Transmission Customer shall compensate BPA for losses BPA incurs when providing transmission service over the FCRTS for non-Federal power and other classes of Federal power (unless otherwise specified in the Transmission Customer's contract for the purchase of such power) integrated at Points of Interconnection, except those amounts of power associated with purchases specified in 1(t)(1) above. The compensation shall be determined by multiplying the amount of power delivered under this Service Agreement by the applicable Loss Factor listed below in section 2; and (A) adding the resulting amount to the billing factor for the Transmission Customer's purchases of Federal power; or (B) Transmission Customer's purchasing the resulting amount from BPA pursuant to the APS-96 rate schedule (or its successor) for Transmission Losses; or (C) Transmission Customer's returning the resulting amount to BPA from a single control area 168 hours after the time of delivery of power for which loss compensation is required. (3) Transmission Losses Associated with Deliverv Facilities. Transmission Losses associated with Delivery Facilities shall be determined annually, by Fiscal Year, pursuant to the following procedure: (A) determining the ratio of power delivered over Delivery Facilities to the total power delivered to the Transmission Customer over the FCRTS; and (B) multiplying the resulting ratio by the total amount delivered to the Transmission Customer less amounts described in 1(t)(1) above; and (C) multiplying the result derived in step 1(t)(3)(B) by the Delivery Facility loss factor listed below in section 2, and providing compensation pursuant to 1(f)(2)(B) as specified in the annual notification letter described in 1(f)(4)(A). Service Agreement No. 96MS-96090 Exhibit J, Page 3 of 4 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 (4) Notification (A) Each Fiscal Year except the Fiscal Year during which this Service Agreement is executed, BP A shall send a letter by August 1 requesting that the Transmission Customer choose one of the methods described in section 1(f)(2). The Transmission Customer shall indicate in the letter its choice for compensating BPA for transmission losses during the following Fiscal Year, countersign the letter and return one copy to BPA by September 1 of the then current Fiscal Year. The countersigned letter shall serve as the Transmission Customer's confirmation and shall constitute a revision to section 1(f)(5) of Exhibit J. (B) If the Transmission Customer selects option 1(f)(2)(C) above, the Transmission Customer shall designate in the letter the single control area the Transmission Customer will use during the subsequent Fiscal Year. (C) In the event that, in any Fiscal Year, the Transmission Customer does not notify BP A by September 1 of the method it has chosen, the Transmission Customer's compensation method shall be the method used for the then current Fiscal Year. (5) Transmission Customer's Method of Compensation of Annual Transmission Losses durine: a Fiscal Year. The Transmission Customer has elected to return Transmission Losses for the period 2400 hours September 30, 1997 through 2400 hours September 30, 1998. The Transmission Customer will return the losses from a single control area in the Pacific Northwest, as defined in the Pacific Northwest Electric Power Planning and Conservation Act. The name of that control area is: PacifiCorp Service Agreement No. 96MS-96090 Exhibit J, Page 4 of 4 Service Agreement No. 96MS-96090 The City of Port Angeles Effective at 2400 hours on September 30, 1996 2. TRANSMISSION LOSS FACTORS Network Loss Factor: 1.9 percent of kWh delivered ET Loss Factor: 1.9 percent of kWh delivered Delivery Facility Loss Factor: 0.6 percent of kWh delivered IS Loss Factor: 3.0 percent of kWh delivered BP A reserves the right, after consultation with the Transmission Customer, to review the loss methodology and revise this Exhibit J as appropriate, but not more frequently than once in a 12-month period, to incorporate loss factors which represent then-current FCRTS operating conditions. BPA shall prepare a new Exhibit J incorporating any revision and the revised exhibit shall become effective as of the date specified therein. 1/ Fiscal Year is defined as the twelve-month period from October 1 through September 30. (TMC-W \TMC\e_files\PM-12\trans-18\Port Angeles\170TNOOI DOC) (W:\MCP\TMC\CT\96090 DOC) Service Agreement No. 96MS-96090