HomeMy WebLinkAbout5.923 Original Contract
Department of Energy
DEe - 5
Bonneville Power Administration
Seattle Customer Service Center
909 First Avenue, Suite 380
Seattle, Washington 98104-3636
CITY OF PORT ANGELES
CITY CLERK
Power ServIces
December 2, 2008
In reply refer to: PSW/Seattle
Ms. Becky Upton, City Clerk
City of Port Angeles
P.O. Box 1150
Port Angeles, W A 98362-0217
Dear Ms. Upton:
Enclosed for your records is the fully executed original Power Sales Agreement, Contract
No. 09PB-13093 (Agreement), between the Bonneville Power Administration and the City of
Port Angeles (Port Angeles).
I would like to take this opportunity to thank you for returning Port Angeles' signed
Agreement well before the deadline.
I look forward to continuing to work with you in the future. Please feel free to contact me at
206-220-6775 if you have any questions or concerns.
Sincerely,
~vJ/<.~
Shannon K. Greene
Customer Account Executive
Enclosure
cc: (w/o enclosure)
Larry Dunbar, Deputy Director of Power Systems
Contract No. 09PB-13093
POWER SALES AGREEMENT
executed by the
BONNEVILLE POWER ADMINISTRATION
and
CITY OF PORT ANGELES
Table of Contents
Section
I.
2.
3.
4.
5.
6.
7.
8.
9.
10.
II.
12.
13.
14.
15.
16.
17.
18.
19.
20.
2l.
22.
23.
...
Term .... .... .................................................. ............. ........................... ...............
Defini ti ODS .. ......................... ........... ......... .............. .........................................
Load Following Power Purchase Obligation...........................................
This Section Intentionally Left Blank.......................................................
This Section Intentionally Left Blank.......................................................
Ti ered Rate Me th od 0 I ogy- ...... ..................... ................... ...............................
High Water Marks and Contract Demand Quantities............................
Appli cable Rate s ...... ................ ........ ............. .......... ...................... .................
8.1 Priority Firm Power (PF) Rates ........................................................
8.2 New Resource Firm Power (NR) Rate ..............................................
8.3
8.4
8.5
Elections to Purchase Power Priced at Tier 2 Rates .............................
Firm Power Products and Services (FPS) Rate .............................
Additional Charges..................... .............. ......... ........ ....................... ....
Resource Support Services (RSS) .....................................................
Tier 2 Remarketing and Resource Removal............................................
Right to Change Purchase Obligation ......................................................
Billing Credits and Residential Exchange ...............................................
Scheduling ..................... ........... ..................... ........... ................ ........... ...... .....
Delivery ................,................... ... ........ ......... ...... ......... ....... ......... ........... ... .......
Metering ...... ................................ ........ ............... ........................ ........... ... .......
Billing and P aym en t .................. ........ ................ ........ ....... ......... ......... ..........
Information Exchange and Confidentiality.............................................
Co nserva ti 0 n and Renew abies ........... ............... ............... ..........................
Resource Adequacy................................ ....................... ...... ..........................
Notices and Contact Information...............................................................
Uncontrollable Forces......... ............ ......... ............................ .......... ..............
Governing Law and Dispute Resolution...................................................
Statutory Provisions.......................... ............. ............ ............. ............ .........
23.1 Retail Rate Schedules ..........................................................................
23.2 Insuffi ci ency and Alloca ti ons..... .............. ...................................... ....
23.3 New Large Single Loads and CF/CTs................................................
23.4 Priority of Pacific Northwest Customers ........................................
23.5 Prohibition on Resale ..........................................................................
23.6 Use of Regional Resources..................................................................
23.7 BP A Appropriations Refinancing......................................................
Page
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46
46
49
49
50
51
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24. Standard Provisions .......................................................... ........................... 51
24.1 Amendments ................................................................ .......................... 51
24.2 Entire Agreement and Order of Precedence................................... 51
24.3 Assi gnm en t.................... ......................................................................... 51
24.4 No Third-Party Beneficiaries ............................................................. 52
24.5 Waivers. ................................................................ ............................. ..... 52
24.6 BP A P oli ci e s...... ..................................................................................... 52
24.7 Rate Covenant and Payment Assurance.......................................... 52
25. T ermina ti on ................ .................................................................................... 52
26. Signature s .. ........................ ......................................................;........................ 53
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Exhibit F
Exhibit G
Exhibit H
Net Requirements and Resources
High Water Marks and Contract Demand Quantities
Purchase Obligations
Additional Products and Special Provisions
Metering
Scheduling
This Exhibit Intentionally Left Blank
Renewable Energy Certificates and Carbon Attributes
This POWER SALES AGREEMENT (Agreement) is executed by the UNITED
STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE
POWER ADMINISTRATION (BPA), and the CITY OF PORT ANGELES (Port Angeles),
hereinafter individually referred to as "Party" and collectively referred to as the "Parties".
Port Angeles is a municipal corporation, organized and authorized under the laws of the
State of Washington, to purchase and distribute electric power to serve retail consumers
from its distribution system within its service area.
RECITALS
Port Angeles' current power sales agreement (Contract No. 00PB-12054) continues
through September 30, 2011, and will be replaced by this Agreement on October 1, 2011.
BP A has functionally separated its organization in order to separate the
administration and decision-making activities of BPA's power and transmission functions.
References in this Agreement to Power Services or Transmission Services are solely for the
purpose of clarifying which BPA function is responsible for administrative activities that
are jointly performed.
BP A is authorized to market federal power to qualified entities that are eligible to
purchase such power. Under section 5(b)(1) of the Northwest Power Act, BPA is obligated
to offer a power sales agreement to eligible customers for the sale and purchase of federal
power to serve their retail consumer load in the Region that is not met by the customer's
use of its non-federal resources.
BP A has proposed the adoption of a tiered rate pricing methodology for federal
power sold to meet BPA's obligations under section 5(b) of the Northwest Power Act to
eligible customers, in order to provide more efficient pricing signals and encourage the
09PB-13093, Port Angeles
2
~
...
timely development of regional power resource infrastructure to meet regional consumer
loads under this Agreement.
To effect that purpose, in this Agreement BP A establishes a Contract High Water
Mark for Port Angeles that will define the amounts of power Port Angeles may purchase
from BPA at the Tier 1 Rate, as defined in BPA's Tiered Rate Methodology.
The Parties agree:
1. TERM
This Agreement takes effect on the date signed by the Parties and expires on
September 30,2028. Performance by BPA and Port Angeles shall commence on
October 1, 2011, with the exception of those actions required prior to that date that
are included in:
(1) sections 3.3 through 3.7 of section 3, Power Purchase Obligation;
(2) section 9, Elections to Purchase Power Priced at Tier 2 Rates;
(3) section 14, Delivery;
(4) section 17, Information Exchange and Confidentiality;
(5) section 18, Conservation and Renewables;
(6) section 19, Resource Adequacy;
(7) section 22, Governing Law and Dispute Resolution;
(8) section 25, Termination;
(9) Exhibit A, Net Requirements and Resources;
(10) Exhibit B, High Water Marks and Contract Demand Quantities;
(11) Exhibit C, Purchase Obligations; and
(12) section 2 of Exhibit D, Additional Products and Special Provisions.
Until October 1, 2011, section 22, Governing Law and Dispute Resolution will only
apply to the extent there is a dispute regarding actions required in the above
referenced sections and exhibits.
2. DEFINITIONS
Capitalized terms below shall have the meaning stated. Capitalized terms that are
not listed below are either defined within the section or exhibit in which the term is
used, or if not so defined, shall have the meaning stated in BPA's applicable
Wholesale Power Rate Schedules, including the General Rate Schedule Provisions
(GRSPs). Definitions in bold indicate terms that are defined in the TRM and that
09PB-13093, Port Angeles
3
the Parties agree should conform to the TRM as it may be revised. The Parties
agree that if such definitions are revised pursuant to the TRM, they shall promptly
amend this Agreement to incorporate such revised definitions from the TRM, to the
extent they are applicable. ,
I
I
,
2.1 "5(b)/9(c) Policy" means BPA's Policy on Determining Net Requirements of
Pacific Northwest Utility Customers Under sections 5(b)(1) and 9(c) of the
Northwest Power Act issued May 23, 2000, and its revisions or successors.
2.2 "7(i) Process" means a public process conducted by BPA to establish rates
for the sale of power and other products pursuant to section 7(i) of the
Northwest Power Act or its successor.
2.3 "Above-RHWM Load" means forecast annual Total Retail Load, less
Existing Resources, NLSLs, and Port Angeles' RHWM, as determined in the
RHWM Process, except for the FY 2012-2013 Rate Period, when Above-
RHWM Load will be determined differently, as specified in the TRM.
2.4 "Annexed Load" means existing load, distribution system, or service territory
Port Angeles acquires after the Effective Date from another utility, by means
of annexation, merger, purchase, trade, or other acquisition of rights, the
acquisition of which has been authorized by a final state, regulatory or court
action. The Annexed Load must be served from distribution facilities that
are owned or acquired by Port Angeles.
2.5 "Average Megawatts" or "aMW" means the amount of electric energy in
megawatt-hours (MWh) during a specified period of time divided by the
number of hours in such period.
2.6 "Balancing Authority" means the responsible entity that integrates
resource plans ahead of time, maintains load-interchange-generation balance
within a Balancing Authority Area, and supports interconnection frequency
in real time.
2.7 "Balancing Authority Area" means the collection of generation,
transmission, and loads within the metered boundaries of the Balancing
Authority.
2.8 "Business Days" means every Monday through Friday except Federal
holidays.
2.9 "Carbon Credit" shall have the meaning as defined in section 1 of Exhibit H.
2.10 "CHWM Contract" means the power sales contract between a customer and
BPA that contains a Contract High Water Mark (CHWM), and under which
the customer purchases power from BPA at rates established by BPA in
accordance with the TRM.
09PB-13093, Port Angeles
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2.11 "Consumer-Owned Resource" means a Generating Resource connected to Port
Angeles' distribution system that is owned by a retail consumer, has a
nameplate capability greater than 200 kilowatts, is operated or applied to
load, and is not operated occasionally or intermittently as a back-up energy
source at times of maintenance or forced outage. Consumer-Owned Resource
does not include a resource where the owner of the resource is a retail
consumer that exists solely for the purpose of selling wholesale .power and for
which Port Angeles only provides incidental service to provide energy for
local use at the retail consumer's generating plant for lighting, heat and the
operation of auxiliary equipment.
2.12 "Contract Demand Quantity" or "CDQ" shall have the meaning as defined in
the TRM, the definition of which is recited in section 6.6.1.
2.13 "Contract High Water Mark" or "CHWM" shall have the meaning as defined
in the TRM, the definition of which is recited in section 6.6.1.
2.14 "Contract Resource" means any source or amount of electric power that Port
Angeles acquires from an identified or unidentified electricity-producing unit
or units by contract purchase, and for which the amount received by Port
Angeles does not depend on the actual production from an identified
Generating Resource.
2.15 "Dedicated Resource" means a Specified Resource or an Unspecified Resource
Amount listed in Exhibit A that Port Angeles is required by statute to
provide or obligates itself to provide under this Agreement for use to serve its
Total Retail Load.
2.16 "Diurnal" means the division of hours within a month between Heavy Load
Hours (HLH) and Light Load Hours (LLH).
2.17 "Diurnal Flattening Service" or "DFS" means a service that makes a resource
that is variable or intermittent, or that portion of such resource that is
variable or intermittent, equivalent to a resource that is flat within each of
the 24 HLH and LLH periods of a year.
2.18 "Due Date" shall have the meaning as described in section 16.2.
2.19 "Effective Date" means the date on which this Agreement has been signed by
Port Angeles and BP A.
2.20 "Eligible Annexed Load" shall have the meaning as defined in section 3.5.6.
2.21 "Environmental Attribute" shall have the meaning as defined in section 1 of
Exhibit H.
2.22 "Environmentally Preferred Power RECS" or "EPP RECs" shall have the
meaning as defined in section 1 of Exhibit H.
09PB-13093, Port Angeles
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2.23 "Existing Resource" means a Specified Resource listed in section 2 of
Exhibit A that Port Angeles was obligated by contract or statute to use to
serve Port Angeles' Total Retail Load prior to October 1, 2006.
2.24 "FERC" means the Federal Energy Regulatory Commission, or its successor.
2.25 "Firm Requirements Power" means federal power that BPA sells under this
Agreement and makes continuously available to Port Angeles to meet BPA's
obligations to Port Angeles under section 5(b) of the Northwest Power Act.
2.26 "Fiscal Year" or "FY" means the period beginning each October 1 and ending
the following September 30.
2.27 "Flat Annual Shape" means a distribution of energy having the same Average
Megawatt value of energy in each month of the year.
2.28 "Flat Within-Month Shape" means a distribution of energy having the same
Average Megawatt value of energy in each Diurnal period of the month.
2.29 "Forced Outage Reserve Service" or "FORS" means a service that
provides an agreed-to amount of capacity and energy to load during the
forced outages of a resource.
2.30 "Forecast Year" means the Fiscal Year ending one full year prior to the
commencement of a Rate Period.
2.31 "Generating Resource" means any source or amount of electric power from an
identified electricity-producing unit, and for which the amount of power
received by Port Angeles or Port Angeles' retail consumer is determined by
the power produced from such identified electricity-producing unit. Such unit
may be owned by Port Angeles or Port Angeles' retail consumer in whole or in
part, or all or any part of the output from such unit may be owned for a
defined period by contract.
2.32 "Heavy Load Hours (HLH)" means hours ending 0700 through 2200 hours
Pacific Prevailing Time (PPT), Monday through Saturday, excluding holidays
as designated by the North American Electric Reliability Corporation
(NERC). BPA may update this definition as necessary to conform to
standards of the Western Electricity Coordinating Council (WECC), North
American Energy Standards Board (NAESB), or NERC.
2.33 "HLH Diurnal Shape" means a distribution of energy between the Diurnal
periods in which more megawatt-hours per hour are applied in the Heavy
Load Hour (HLH) periods than megawatt-hours per hour applied in the Light
Load Hour (LLH) periods. Such distributions are determined by Port Angeles
consistent with section 8.2 of Exhibit A.
2.34 "Integrated Network Segment" shall have the meaning as defined in
section 14.1.
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2.35 "Interchange Points" means the points where Balancing Authority Areas
interconnect and at which the interchange of energy between Balancing
Authority Areas is monitored and measured.
2.36 "Issue Date" shall have the meaning as described in section 16.1.
2.37 "Light Load Hours (LLH)" means: (1) hours ending 0100 through 0600 and
2300 through 2400 hours PPT, Monday through Saturday, and (2) all hours
on Sundays and holidays as designated by NERC. BPA may update this
definition as necessary to conform to standards of the WECC, NAESB, or
NERC.
2.38 "Net Requirement" means the amount of federal power that Port Angeles is
entitled to purchase from BPA to serve its Total Retail Load minus amounts
of Port Angeles' Dedicated Resources shown in Exhibit A, as determined
consistent with section 5(b)(1) of the Northwest Power Act.
2.39 "New Large Single Load" or "NLSL" has the meaning specified in
section 3(13) of the Northwest Power Act and in BPA's NLSL policy.
2.40 "New Resource" means (1) a Specified Resource listed in section 2 of
Exhibit A that Port Angeles was or is first obligated by contract, or was or is
obligated by statute, to use to serve Port Angeles' Total Retail Load after
September 30,2006, and (2) any Unspecified Resource Amounts listed in
Exhibit A.
2.41 "Northwest Power Act" means the Pacific Northwest Electric Power Planning
and Conservation Act, 16 U.S.C. ~839, Public Law No. 96-501, as amended.
2.42 "Notice Deadlines" means the dates established in section 9.1.1.
2.43 "Onsite Consumer Load" means the electric load of an identified retail
consumer of Port Angeles that is directly interconnected or electrically
interconnected on the same portion of Port Angeles' distribution system with
a Consumer-Owned Resource of that same identified retail consumer such
that no transmission schedule is needed to deliver the generation from the
Consumer-Owned Resource to the consumer load.
2.44 "Operating Year" means the period, beginning each August 1 and ending the
following July 31, that is designated under the Pacific Northwest
Coordination Agreement (PNCA) for resource planning and operational
purposes.
2.45 "Pacific Northwest Coordination Agreement" or "PNCA" means Contract
No. 97PB-10130, as such agreement may be amended or replaced, among
BPA, the U.S. Army Corps of Engineers, the Bureau of Reclamation, and
certain generating utilities in the Region that sets forth the terms and
09PB-13093, Port Angeles
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conditions for the coordinated operation of generating resources in the
Region.
2.46 "PNCA Update Shape" means the monthly shape of a Specified Resource that
is a hydro resource that will be revised each Fiscal Year based on the
monthly amounts for such resource that are in the final PNCA planning
hydro-regulation study published for the Operating Year that began on the
August 1 immediately preceding the Fiscal Year. If the final study is not
published 30 days prior to the beginning of the Fiscal Year, then the monthly
shape of Port Angeles' Specified Resource that is a hydro resource will be
revised based on the monthly amounts for such resource that are in the
modified PNCA study published for the same Operating Year. The August
and September amounts published for the Operating Year will be used as the
August and September amounts for the Fiscal Year.
2.4 7 "Point of Delivery" or "POD" means the point where power is transferred
from a transmission provider to Port Angeles.
2.48 "Point of Metering" or "POM" means the point at which power is measured.
2.49 "Power Services" means the organization, or its successor organization,
within BP A that is responsible for the management and sale of Federal
power.
2.50 "Primary Points of Receipt" shall have the meaning as defined in section 14.1.
2.51 "Purchase Periods" means the time periods established in section 9.1.1.
2.52 "Rate Case Year" means the Fiscal Year ending prior to the commencement
of a Rate Period. The Rate Case Year immediately follows the Forecast Year
and is the year in which the 7(i) Process for the next Rate Period is
conducted.
2.53 "Rate Period" means the period of time during which a specific set of rates
established by BP A pursuant to the TRM is intended to remain in effect.
2.54 "Rate Period High Water Mark" or "RHWM" shall have the meaning as
defined in the TRM, the definition of which is recited in section 6.6.1.
2.55 "Region" means the Pacific Northwest as defined in section 3(14) of the
Northwest Power Act.
2.56 "Renewable Energy Certificates" or "RECs" shall have the meaning as
defined in section 1 of Exhibit H.
2.57 "Resource Diurnal Shape" means a distribution of energy within each
Diurnal period that a Generating Resource is expected to produce, as agreed
to by the Parties in accordance with section 3.4.1(1).
09PB-13093, Port Angeles
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2.58 "Resource Monthly Shape" means a distribution of energy within each month
that a Generating Resource is expected to produce, as agreed to by the
Parties in accordance with section 3.4.1(1).
2.59 "Resource Support Services" or "RSS" means the Diurnal Flattening Service,
Forced Outage Reserve Service, Transmission Curtailment Management
Service, and Secondary Crediting Service. BPA may in the future include
other related services that are priced in the applicable 7(i) Process.
2.60 "Scheduling Points of Receipt" shall have the meaning as defined in
section 14.1.
2.61 "Secondary Crediting Service" or "SCS" means the optional service
offered by BP A that provides a monetary credit for the secondary output from
an Existing Resource that has a firm critical energy component and a
secondary energy component.
2.62 "Small Non-Dispatchable Resource" means a Specified Resource connected to
Port Angeles' distribution system the output of which cannot be shifted
between Diurnal periods or days by the resource owner or operator. Such
resource is further defined as:
(1) an Existing Resource that has a nameplate capability less than or
equal to three megawatts, or
(2) a New Resource that has a nameplate capability less than or equal to
one megawatt.
2.63 "Specified Resource" means a Generating Resource or Contract Resource that
has a nameplate capability or maximum hourly purchase amount greater
than 200 kilowatts, that Port Angeles is required by statute or has agreed to
use to serve its Total Retail Load. Each such resource is identified as a
specific Generating Resource or as a specific Contract Resource with
identified parties and is listed in sections 2 and 4 of Exhibit A.
2.64 "Statement of Intent" shall have the meaning as defined in section 2.3 of
Exhibit C.
2.65 "Submitted Schedule" shall have the meaning as defined in section 3.7.
2.66 "Super Peak Credit" means a reduction in Port Angeles' demand billing
determinants equal to the amount of additional energy provided by a
Dedicated Resource, during a Super Peak Period, over the amount of energy
that would have been provided by an equivalent amount of energy delivered
flat across the monthly HLH period.
2.67 "Super Peak Period" means the hours BPA defines for each Rate Period in
accordance with section 3.4.4.1 into which Port Angeles must reshape its
HLH energy from its Dedicated Resources to receive a Super Peak Credit.
09PB-13093, Port Angeles
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The hours BPA establishes for the Super Peak Period may vary by month
and will be either two 3-hour periods each day or a single 6-hour period each
day.
I
2.68 "Surplus Firm Power" means firm power that is in excess of BPA's I;
obligations, including those incurred under sections 5(b), 5(c), and 5(d) of tHe
Northwest Power Act, as available. I
2.69 "Third Party Transmission Provider" means a transmission provider other.
than BP A that delivers power to Port Angeles.
2.70 "Tier 1 Rate" means the Tier 1 Rate as defined in the TRM.
2.71 "Tier 1 RECs" shall have the meaning as defined in section 1 of Exhibit H.
2.72 "Tier 2 Cost Pools" means all of the Cost Pools to which Tier 2 Costs (as
defined in the TRM) will be allocated by BP A.
2.73 "Tier 2 Load Growth Rate" means a Tier 2 Rate at which Load Following
customers may elect to purchase Firm Requirements Power in accordance
with section 2.2 of Exhibit C.
2.74 "Tier 2 Rate" mean~ the Tier 2 Rate as defined in the TRM.
2.75 "Tier 2 RECs" shall have the meaning as defined in section 1 of Exhibit H.
2.76 "Tier 2 Short-Term Rate" means a Tier 2 Rate at which customers may elect
to purchase Firm Requirements Power in accordance with section 2.4 of
Exhibit C.
2.77 "Tier 2 Vintage Rate" means a Tier 2 Rate at which customers may elect to
purchase Firm Requirements Power in accordance with section 2.3 of
Exhibit C.
2.78 "Tiered Rate Methodology" or "TRM" means the long-term methodology
established by BPA in a Northwest Power Act section 7(i) hearing as the
Tiered Rate Methodology to implement the Policy (as defined in the TRM)
construct of tiering BPA's Priority Firm Power rates for serving load under
CHWM Contracts.
2.79 "Total Retail Load" means all retail electric power consumption, including
electric system losses, within Port Angeles' electrical system excluding:
(1) those loads BPA and Port Angeles have agreed are nonfirm or
interruptible loads,
(2) transfer loads of other utilities served by Port Angeles, and
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(3) any loads not on Port Angeles' electrical system or not within Port
Angeles' service territory, unless specifically agreed to by BPA.
2.80 "Total Retail Load Monthly Shape" means the distribution among months as
listed in the table in section 8.1 of Exhibit A. The FY 2010 Total Retail Load
Monthly Shape from the table will apply for the FY 2012-2014 and FY 2015-
2019 Purchase Periods; the FY 2015 Total Retail Load Monthly Shape will
apply for the FY 2020-FY 2024 Purchase Period; and the FY 2020 Total
Retail Load Monthly Shape will apply for the FY 2025-2028 Purchase Period.
2.81 "Transfer Service" means the transmission, distribution and other services
provided by a Third Party Transmission Provider to deliver electric energy
and capacity over its transmission system.
2.82 "Transmission Curtailment Management Service" or "TCMS" means the
service Power Services may provide to back up a qualifying resource when a
transmission curtailment occurs between such resource and the customer
load.
2.83 "Transmission Services" means the organization, or its successor
organization, within BPA that is responsible for the management and sale of
transmission service on the Federal Columbia River Transmission System.
2.84 "Uncontrollable Force" shall have the meaning as defined in section 21.
2.85 "Unspecified Resource Amount" means an amount of firm energy, listed in
sections 3 and 4 of Exhibit A, that Port Angeles has agreed to supply and use
to serve its Total Retail Load. Such amount is not attributed to a Specified
Resource.
3. LOAD FOLLOWING POWER PURCHASE OBLIGATION
3.1 Purchase Obligation
From October 1, 2011, and continuing through September 30,2028, BPA
shall sell and make available, and Port Angeles shall purchase, Firm
Requirements Power in hourly amounts equal to Port Angeles' hourly Total
Retail Load minus the hourly firm energy from each of Port Angeles'
Dedicated Resources as listed in Exhibit A. Port Angeles shall determine the
hourly firm energy from each of its Dedicated Resources pursuant to
section 3.3. Such amounts of energy are subject to change pursuant to
section 3.5 and section 10.
3.2 Take or Pay
Port Angeles shall pay for the amount of Firm Requirements Power it has
committed to purchase under section 3.1, and that BP A makes available at
the rates BPA establishes pursuant to the TRM, as applicable to such power,
whether or not Port Angeles took actual delivery of such power.
09PB-13093, Port Angeles
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3.3 Application of Dedicated Resources
Port Angeles agrees to serve a portion of its Total Retail Load with the
Dedicated Resources listed in Exhibit A as follows:
(1) Specified Resources that are Generating Resources, except Small,
Non-Dispatchable Resources, shall be listed in section 2.1 of Exhibit A,
(2) Specified Resources that are Contract Resources shall be listed in
section 2.2 of Exhibit A,
(3) Specified Resources that are Small Non-Dispatchable Resources shall
be listed in section 2.3 of Exhibit A, and
(4) Unspecified Resource Amounts shall be listed in section 3.1 of
Exhibit A.
Port Angeles shall use its Dedicated Resources to serve its Total Retail Load,
and specify amounts of its Dedicated Resources in the tables shown in
Exhibit A, as stated below for each specific resource and type. BP A shall use
the amounts listed in Exhibit A in determining Port Angeles' Net
Requirement. The amounts listed are not intended to govern how Port
Angeles shall operate its Specified Resources, except for those resources that
are Small Non-Dispatchable Resources and those resources supported with
DFS or SCS from BPA.
3.3.1 Specified Resources
3.3.1.1 Application of Specified Resources
Port Angeles shall apply the output of all Specified
Resources, listed in section 2 of Exhibit A, to Port Angeles'
Total Retail Load in predefined hourly amounts consistent
with section 3.7, except for Small Non-Dispatchable
Resources and Specified Resources Port Angeles is supporting
with DFS or SCS from BPA. Port Angeles shall apply all
Specified Resources supported with DFS or SCS from BPA to
Port Angeles' Total Retail Load consistent with section 2 of
Exhibit D. Port Angeles shall apply all of the output as it is
generated from its Small Non-Dispatchable Resources, list~d
in section 2.3 of Exhibit A, to Port Angeles' Total Retail Lodd.
3.3.1.2 Determining Specified Resource Amounts
Port Angeles shall state, for each Specified Resource listed in
section 2 of Exhibit A, firm energy amounts for each Diurnal
period and peak amounts for each month beginning with the
later of the date the resource was dedicated to load or
October 1, 2011, through the earlier ofthe date the resource
will be permanently removed or September 30, 2028. BP A in
consultation with Port Angeles shall determine the firm
energy amounts for each Diurnal period and peak amounts
09PB-13093, Port Angeles 12
for each month for each Specified Resource consistent with
the 5(b)/9(c) Policy, and using the allowable shapes
established in section 3.4.
3.3.2 Unspecified Resource Amounts
3.3.2.1 Application of Unspecified Resource Amounts
To serve Above-RHWM Load that Port Angeles commits to
meet with Dedicated Resources in Exhibit C, Port Angeles
shall provide and use Unspecified Resource Amounts to meet
any amounts not met with its Specified Resources during
each Purchase Period. Port Angeles shall apply its
Unspecified Resource Amounts, listed in section 3 of
Exhibit A, to Port Angeles' Total Retail Load in predefined
hourly amounts consistent with section 3.7.
3.3.2.2 Determining Unspecified Resource Amounts
By March 31 of each Rate Case Year, the Parties shall
calculate, and BPA shall fill in the table in section 3.1.2 of
Exhibit A with, Port Angeles' Unspecified Resource Amounts
for each of the years 9fthe upcoming Rate Period consistent
with Port Angeles' elections for service to its Above-RHWM
Load. Such Unspecified Resource Amounts shall be
calculated using the monthly and Diurnal shapes listed in
section 3.1.1 of Exhibit A. Upon termination or expiration of
this Agreement any Unspecified Resource Amounts listed in
Exhibit A shall expire, and Port Angeles shall have no
further obligation to apply Unspecified Resource Amounts.
3.4 Shaping of Dedicated Resources
Port Angeles' Dedicated Resource amounts shall be shaped as follows:
3.4.1 Initial Monthly and Diurnal Resource Shapes
The amounts for each Dedicated Resource shall be first listed in
Exhibit A with one of the following shapes:
(1)
Generating Resources in the amount of energy within each
month and Diurnal period of a year each resource is expected
to generate output as agreed to by the Parties.
(2)
Contract Resources in equal megawatt amounts for each hour
III a year.
(3)
Small Non-Dispatchable Resources in the amount of energy
within each month and Diurnal period of a year each resource
is expected to generate output as agreed to by the Parties.
(4)
Unspecified Resource Amounts in equal megawatt amounts for
each hour in a year.
09PB-13093, Port Angeles
13
3.4.2 Reshaping Dedicated Resources
By each Notice Deadline Port Angeles may elect in writing, pursuant
to section 3.4.3, to reshape its amounts of Dedicated Resources listed
in sections 2.1, 2.2, and 3.1 of Exhibit A, except for those Specified
Resources Port Angeles is supporting with DFS or SCS from BPA, for
the corresponding Purchase Period. Mter BPA receives such notice
from Port Angeles for the first Notice Deadline (November 1, 2009),
BPA shall, by March 31,2011, revise Exhibit A to reflect such written
elections. Mter BP A receives such written notice from Port Angeles
for any subsequent Notice Deadline, BPA shall, by the following
March 31, revise Exhibit A to reflect such election.
If Port Angeles elects the PNCA Update Shape for a hydro resource,
then BPA shall update the shape of such resource annually, in
accordance with such election, to be completed no later than
September 15 preceding the start of the applicable Fiscal Year.
3.4.3 Monthly and Diurnal Reshaping Options
Consistent with section 3.4.2, Port Angeles may elect to reshape one or
more of its Dedicated Resources using the allowable monthly and
Diurnal shapes described below. rfPort Angeles elects to reshape its
Dedicated Resources, then Port Angeles shall elect both a monthly and
a Diurnal shape for each Dedicated Resource that is reshaped.
3.4.3.1 Generating Resources
For each Generating Resource listed in section 2.1 of
Exhibit A Port Angeles may elect to apply each resource in
any of the following shapes:
,
(1) Monthly Shapes: (A) Total Retail Load Monthly
Shape; (B) Resource Monthly Shape; (C) Flat Annual
Shape; or (D) PNCA Update Shape if the resource is a
hydro resource and is designated as a PNCA resource
in section 2.1 of Exhibit A.
(2) Diurnal Shapes: (A) Resource Diurnal Shape; (B) Flat
Within-Month Shape; or (C) HLH Diurnal Shape.
3.4.3.2 Contract Resources
For each Contract Resource listed in section 2.2 of Exhibit A
Port Angeles may elect to apply each resource in any of the
following shapes:
(1)
Monthly Shapes: (A) Total Retail Load Monthly
Shape; or (B) Flat Annual Shape.
(2)
Diurnal Shapes: (A) Flat Within-Month Shape; or
(B) HLH Diurnal Shape.
09PB-13093, Port Angeles
14
3.4.3.3 Unspecified Resource Amounts
Port Angeles may elect to apply its Unspecified Resource
Amounts, listed in section 3.1 of Exhibit A in any of the
following shapes:
(1) Monthly Shapes: (A) Total Retail Load Monthly
Shape; or (B) Flat Annual Shape.
(2) Diurnal shapes: (A) Flat Within-Month Shape; or
(B) HLH Diurnal Shape.
3.4.4 Super Peak Credit
3.4.4.1 Super Peak Period
By September 30 of each Forecast Year BP A shall notify Port
Angeles in writing of the Super Peak Period for the upcoming
Rate Period.
3.4:4.2 Super Peak Amounts
By October 31 of each Rate Case Year Port Angeles shall
notify BP A in writing of the monthly megawatt amounts of
additional energy Port Angeles elects to apply to its Total
Retail Load for the upcoming Rate Period, for which Port
Angeles shall receive a Super Peak Credit. Port Angeles
shall establish such amounts from its Dedicated Resources
consistent with section 9 of Exhibit A. Mter BP A receives
such notification from Port Angeles BP A shall revise the
table in section 9 of Exhibit A, by March 31 of the same Rate
Case Year, to reflect monthly amounts Port Angeles
submitted to BP A.
3.4.5 Hourly Resource Shape
Port Angeles' Dedicated Resources listed in sections 2.1, 2.2, and 3.1 of
Exhibit A, except for those Specified Resources Port Angeles is
supporting with DFS or SCS from BPA, shall be provided in equal
megawatt amounts during all LLH of a month and in equal megawatt
amounts during all HLH of a month, unless Port Angeles reshapes its
HLH amounts pursuant to section 3.4.4. If Port Angeles reshapes its
HLH amounts pursuant to section 3.4.4, then Port Angeles' Dedicated
Resources shall be provided in (1) equal megawatt amounts during all
LLH of a month, (2) equal megawatt amounts during all HLH of a
month that are not in the Super Peak Period, and (3) equal megawatt
amounts during all HLH of a month that are in the Super Peak
Period. The hourly amounts provided in the Super Peak Period shall
reflect the additional energy amounts listed in section 9 of Exhibit A.
09PB-13093, Port Angeles
15
3.5 Changes to Dedicated Resources
3.5.1 Specified Resource Additions to Meet Above-RHWM Load
By written notice to BPA, Port Angeles may elect to add Specified
Resources to section 2 of Exhibit A to meet any obligation Port
Angeles may have in Exhibit C to serve its Above-RHWM Load with
Dedicated Resources. Subject to the following:
3.5.1.1 By any Notice Deadline, Port Angeles may elect to add a
Specified Resource to section 2 of Exhibit A with amounts
effective at the start of the corresponding Purchase Period.
The following applies for such Specified Resources:
(1) Port Angeles shall determine amounts for such
Specified Resources in accordance with section 3.3.1.2.
(2) Port Angeles may elect to reshape such Specified
Resources in accordance with section 3.4.3 or may elect
to purchase DFS from BP A to support such Specified
Resources.
3.5.1.2 After any Notice Deadline, and if Port Angeles notifies BPA
of its election in writing by October 31 of a Rate Case Year,
then Port Angeles may add Specified Resources to section 2 of
Exhibit A with amounts effective at the start of the upcoming
Rate Period. The following apply for such Specified
Resources:
(1) Port Angeles shall determine amounts for such
Specified Resources in accordance with section 3.3.1.2.
(2) The shape of such resources shall either be in the shape
selected in section 3.1.1 of Exhibit A for any Unspecified
Resource Amounts for the applicable Purchase Period,
or Port Angeles may purchase DFS from BP A to support
the Specified Resource pursuant to section 2.2 of
Exhibit D.
3.5.1.3 BPA shall revise Exhibit A consistent with Port Angeles'
elections by March 31 following Port Angeles' elections under
sections 3.5.1.1 or 3.5.1.2.
3.5.2 Resource Additions for a BPA Insufficiency Notice
IfBPA provides Port Angeles a notice of insufficiency and reduces its
purchase obligation, in accordance with section 23.2, then Port
Angeles may add Dedicated Resources to replace amounts of Firm
Requirements Power BPA will not be providing due to insufficiency.
The Parties shall revise Exhibit A to reflect such additions.
09PB-13093, Port Angeles
16
3.5.3 Decrements for 9(c) Export
IfBPA determines, in accordance with section 23.6, that an export of a
Specified Resource listed in section 2 of Exhibit A requires a reduction
in the amount of Firm Requirements Power BP A sells Port Angeles
then BPA shall notify Port Angeles of the amount and duration ofthe
reduction in Port Angeles' Firm Requirements Power purchases from
BP A. Within 20 days of such notification Port Angeles may add a
Specified Resource to section 2 of Exhibit A in the amount of such
decrement. If Port Angeles does not add a Specified Resource to meet
such decrement, then within 30 days of such notification BP A shall
add Unspecified Resource Amounts to section 3.2 of Exhibit A in the
amount and for the duration of such decrement.
3.5.4 Temporary Resource Removal
By March 31 of each Rate Case Year, BPA shall revise Port Angeles'
Dedicated Resource amounts listed in the tables of Exhibit A
consistent with Port Angeles' resource removal elections made in
accordance with section 10.
3.5.5 Permanent Discontinuance of Resources
Port Angeles may permanently remove a Specified Resource listed in
section 2 of Exhibit A, consistent with the 5(b)/9(c) Policy on statutory
discontinuance for permanent removal. IfBPA makes a
determination that Port Angeles' Specified Resource has met BP A's
standards for a permanent removal, then BPA shall revise Exhibit A
accordingly. If Port Angeles does not replace such resource with
another Dedicated Resource, then Port Angeles' additional Firm
Requirements Power purchases under this Agreement, as a result of
such a resource removal, may be subject to additional rates or charges
as established in the Wholesale Power Rate Schedules and GRSPs.
3.5.6 Resource Additions for Annexed Loads
If Port Angeles acquires an Annexed Load, in addition to any
resources assigned by the other utility to serve the Annexed Load,
Port Angeles may add Dedicated Resources to Exhibit A, subject to
sections 3.5.6.1 and 3.5.6.2 below, to serve amounts of such Annexed
Load that are Eligible Annexed Load. "Eligible Annexed Load" means
an Annexed Load: (1) that is added after the Effective Date, and
(2) for which Port Angeles did not receive a CHWM addition pursuant
to section 1.2.2 of Exhibit B.
3.5.6.1 During the Rate Period in which Port Angeles acquires an
Eligible Annexed Load, Port Angeles may serve such load for
the remainder of that Rate Period with Dedicated Resources
in the shape of the load, as negotiated by the Parties, or with
additional power purchased from BPA. If Port Angeles elects
to serve such load with Dedicated Resources, then Port
Angeles shall apply such resources for the remainder of the
Rate Period and in accordance with applicable terms stated
09PB-13093, Port Angeles 17
in Exhibit D. If Port Angeles elects to purchase additional
power from BPA for the Annexed Load, then during that Rate
Period such power purchases may be subject to additional
rates or charges as established in the Wholesale Power Rate
Schedules and GRSPs and as applicable to the shape of the
Eligible Annexed Load.
3.5.6.2 For all Rate Periods after the Rate Period when Port Angeles
acquires an Eligible Annexed Load, Port Angeles may serve
such load with Dedicated Resources pursuant to Port
Angeles' elections to apply Dedicated Resources or Purchase
Firm Requirements Power at Tier 2 Rates during the
applicable Purchase Period as stated in Exhibit C.
3.5.7 Resource AdditionStR.emovals for NLSLs
3.5.7.1 To serve an NLSL listed in Exhibit D that is added after the
Effective Date, Port Angeles may add Dedicated Resources to
section 4 of Exhibit A. Port Angeles may discontinue serving
its NLSL with the Dedicated Resources listed in section 4 of
Exhibit A if BP A determines that Port Angeles' NLSL is no
longer an NLSL in Port Angeles' service territory.
3.5.7.2 If Port Angeles elects to serve an NLSL with Dedicated
Resources, then Port Angeles shall specify in section 4 of
Exhibit A the maximum monthly and Diurnal Dedicated
Resource amounts that Port Angeles plans to use to serve the
NLSL. Port Angeles shall establish such firm energy
amounts for each month beginning with the date the resource
was dedicated to load through the earlier ofthe date the
resource will be removed or September 30,2028. Port
Angeles shall serve the actual load ofthe NLSL up to such
maximum amounts with such Dedicated Resource amounts.
To the extent that the NLSL load is less than the maximum
amount in any monthly or Diurnal period, Port Angeles shall
have no right or obligation to use such amounts to serve the
non-NLSL portion of its Total Retail Load. Specific
arrangements to match such resources to the NLSL on an
hourly basis shall be established in Exhibit D.
3.5.8 PURPA Resources
If Port Angeles is required by the Public Utility Regulatory Policies
Act (PURP A) to acquire output from a Generating Resource, then such
output shall be added as a Specified Resource pursuant to Exhibit A.
Port Angeles shall purchase DFS from BPA (or equivalent service if
DFS is unavailable) to support such resources for the term of this
Agreement. '
09PB-13093, Port Angeles
18
3.6 Consumer-Owned Resources
Except for any Consumer-Owned Resources serving an NLSL, which Port
Angeles has applied to load consistent with section 23.3.7, Port Angeles shall
apply the output of its Consumer-Owned Resources as follows:
3.6.1 Existing Consumer-Owned Resources
Port Angeles has designated, in sections 7.1, 7.2, or 7.3 of Exhibit A,
the extent that each existing Consumer-Owned Resource as of the
Effective Date will or will not serve Onsite Consumer Load. Such
designation shall apply for the term of this Agreement.
3.6.2 New Consumer-Owned Resources
Port Angeles shall designate the extent that each Consumer-Owned
Resource commencing commercial operation after the Effective Date
will or will not serve Onsite Consumer Load. Port Angeles shall make
such designation to BP A in writing within 120 days of the first
production of energy by such resource. Such designation shall apply
for the term of this Agreement.
Consistent with Port Angeles' designations, BP A shall list Consumer-
Owned Resources serving Onsite Consumer Load in section 7.1 of
Exhibit A, Consumer-Owned Resources not serving On site Consumer
Load in section 7.2 of Exhibit A, and Consumer-Owned Resources
serving both On site Consumer Load and load other than On site
Consumer Load in section 7.3 of Exhibit A.
3.6.3 Application of Consumer-Owned Resources Serving On site
Consumer Load
Power generated from Consumer-Owned Resources listed in
section 7.1 of Exhibit A shall serve Port Angeles' Onsite Consumer
Load. Port Angeles shall receive no compensation from BP A for excess
power generated on any hour from such resources.
3.6.4 Application of Consumer-Owned Resources Serving Load
Other than On site Consumer Load
Port Angeles shall ensure that power generated from Consumer-
Owned Resources listed in section 7.2 of Exhibit A is scheduled for
delivery and either (1) sold to another utility in the Region to serve its
Total Retail Load, (2) purchased by Port Angeles to serve its Total
Retail Load (consistent with section 3.3), (3) marketed as an export, or
(4) any combination of(l), (2), and (3) above.
3.6.5 Application of Consumer-Owned Resources Serving Both
On site Consumer Load and Load Other than Onsite Consumer
Load
If Port Angeles designates a Consumer-Owned Resource to serve both
Onsite Consumer Load and load other than Onsite Consumer Load
then Port Angeles shall select either Option A or Option B below.
09PB-13093, Port Angeles
19
3.6.5.1 Option A: Maximum Amounts Serving Onsite
Consumer Load
If Port Angeles selects this Option A, then Port Angeles shall
specify, in section 7.3 of Exhibit A, the maximum hourly
amounts of an identified Onsite Consumer Load that are to
be served with power generated by an identified Consumer-
Owned Resource. Such amounts shall be specified as Diurnal
megawatt amounts, by month, and shall apply in all years for
the term of this Agreement. Such amounts are not subject to
change in accordance with section 3.6.6.
On any hour that the On site Consumer Load is less than the
specified maximum hourly amounts, all such Onsite
Consumer Load shall be served by Port Angeles with the
identified Consumer-Owned Resource or with power other
than Firm Requirements Power. Any hourly amounts of the
identified Onsite Consumer Load in excess of the specified
maximum hourly amounts shall be served with Firm
Requirements Power. Any power generated from the
identified Consumer-Owned Resource in excess of the
specified maximum hourly amounts shall be applied to load
other than Onsite Consumer Load in accordance with section
3.6.4.
3.6.5.2 Option B: Maximum BPA-Served Onsite Consumer
Load
If Port Angeles selects this Option B, then Port Angeles shall
specify, in section 7.3 of Exhibit A, the maximum hourly
amounts of an identified On site Consumer Load that are to
be served with Firm Requirements Power. Such amounts
shall be specified as Diurnal megawatt amounts, by month,
and shall apply in all years for the term of this Agreement.
Such amounts are not subject to change in accordance with
section 3.6.6.
On any hour that Onsite Consumer Load is less than the
specified maximum hourly amounts, all such Onsite
Consumer Load shall be served with Firm Requirements
Power. Port Angeles shall serve any hourly amounts of the
identified On site Consumer Load in excess of the specified
maximum hourly amounts with power generated by the
identified Consumer-Owned Resource or with power other
than Firm Requirements Power. Any power generated from
the identified Consumer-Owned Resource in excess of the
amounts required to be used to serve the On site Consumer
Load shall be applied to load other than On site Consumer
Load in accordance with section 3.6.4.
09PB-13093, Port Angeles
20
3.6.6 Changes to Consumer-Owned Resources
Prior to each Fiscal Year Port Angeles shall notify BP A in writing of
any changes in ownership, expected resource output, or other
characteristic of Consumer-Owned Resources identified in section 7 of
Exhibit A. If a Consumer-Owned Resource has permanently ceased
operation and Port Angeles notifies BP A of such cessation, then BP A
shall revise section 7 of Exhibit A to reflect such change as long as
BP A agrees the determination is reasonable.
3.6.7 Data Requirements for Consumer-Owned Resources
Port Angeles shall meter all Consumer-Owned Resources listed in
section 7 of Exhibit A and shall provide such meter data to BP A
pursuant to section 17.3.
3.7 Hourly Dedicated Resource Schedule
By June 30 of each Rate Case Year, Port Angeles shall provide BP A an
aggregated hourly schedule, in whole megawatt amounts consistent with
section 3.7.3 and in the format described in section 3.7.2, for its Dedicated
Resources with amounts in each hour, calculated pursuant to section 3.7.1,
for each year of the upcoming Rate Period ("Submitted Schedule"). Port
Angeles shall schedule such hourly amounts to its Total Retail Load
consistent with section 13.
3.7.1 Schedule Amounts
The amounts in the Submitted Schedule shall equal the sum of all
monthly and Diurnal Dedicated Resource amounts listed in the tables
in sections 2 and 3 of Exhibit A except for those Small Non-
Dispatchal;>le Resources listed in section 2.3 of Exhibit A, and those
Specified Resources supported with DFS or SCS listed in section 2 of
Exhibit D. The hourly amounts in the Submitted Schedule shall be
determined in accordance with section 3.4.5.
If the amounts in the Submitted Schedule change in accordance with
sections 3.4.4 and/or 3.5, then Port Angeles shall send BPA a revised
Submitted Schedule using the updated amounts within five Business
Days of such amounts being updated in Exhibit A.
3.7.2 Schedule Format
Port Angeles shall provide the Submitted Schedule to BPA
electronically in a comma-separated-value (csv) format with the
time/date stamp in the first column and load amounts, with units of "-
measurement specified, in the following column.
3.7.3 Whole Megawatt Amounts
If Port Angeles' Submitted Schedule would otherwise have amounts in
fractional megawatts-per-hour, Port Angeles shall vary its hourly
amounts by one megawatt in some hours so that over the course of the
applicable month the amounts as scheduled in whole megawatts sum
to the appropriate total. If Port Angeles' Dedicated Resource amounts
09PB-13093, Port Angeles
21
are less than one megawatt-per-hour in any Diurnal period of a
month, then Port Angeles shall schedule one megawatt starting with
the first hour of the Diurnal period of that month, and schedule
one megawatt in each subsequent hour of the Diurnal period until the
appropriate amount has been scheduled for that Diurnal period of
such month.
4. TIDS SECTION INTENTIONALLY LEFT BLANK
5. TIDS SECTION INTENTIONALLY LEFT BLANK
6. TIERED RATE METHODOLOGY
6:1 BPA has proposed the TRM to FERC for either confirmation and approval for
a period of 20 years (through September 30, 2028) or a declaratory order that
the TRM meets cost recovery standards. The then-effective TRM shall apply
in accordance with its terms and shall govern BPA's establishment, review
and revision pursuant to section 7(i) of the Northwest Power Act, of all rates
for power sold under this Agreement.
6.2 In the event that FERC approves the TRM for a period less than through
September 30,2028, or issues a declaratory order that the TRM meets cost
recovery standards for a period less than through September 30, 2028, BP A
shall, before the approved period of the TRM expires: (1) propose
continuation of the TRM in a hearing conducted pursuant to section 7(i) of
the Northwest Power Act or its successor; and then (2) resubmit the TRM to
FERC for approval or declaratory affirmation of cost recovery standards
through September 30, 2028.
6.3 The recitation oflanguage from the TRM in this Agreement is not intended to
incorporate such language into this Agreement. The TRM's language may be
revised, but only in accordance with the requirements of TRM sections 12 and
13. If language of the TRM is revised, then any such language recited in this
Agreement shall be modified accordingly, and the Amendment process of
section 24.1 herein shall not apply to any such modifications.
6.4 Any disputes over the meaning of the TRM or rates or whether the
Administrator is correctly implementing the TRM or rates, including but not
limited to matters of whether the Administrator is correctly interpreting,
applying, and otherwise adhering or conforming to the TRM or rate, shall
(1) be resolved pursuant to any applicable procedures set forth in the TRM;
(2) if resolved by the Administrator as part of a proceeding under section 7(i)
of the Northwest Power Act, be reviewable as part of the United States Court
of Appeals for the Ninth Circuit's review under section 9(e)(5) ofthe
Northwest Power Act of the rates or rate matters determined in such
section 7(i) proceeding (subject to any further review by the United States
Supreme Court); and (3) if resolved by the Administrator outside such a
section 7(i) proceeding, be reviewable as a final action by the United States
Court of Appeals for the Ninth Circuit under section 9(e)(5) of the Northwest
09PB-13093, Port Angeles
22
Power Act (subject to any further review by the United States Supreme
Court). The remedies available to Port Angeles through such judicial review
shall be Port Angeles' sole and exclusive remedy for such disputes, except as
provided in the next paragraph.
Any knowing failure of BP A to abide by the TRM, or any BP A repudiation of
its obligation here and under the TRM to revise the TRM only in accordance
with the TRM sections 12 and 13 procedures for revision, would be a matter
of contract to be resolved as would any other claim of breach of contract
under this Agreement. For purposes of this paragraph, when there is a
dispute between BPA and Port Angeles concerning what the TRM means or
requires, a "knowing failure" shall occur only in the event the United States
Court of Appeals for the Ninth Circuit or, upon further review, the United
States Supreme Court rules against BPA on its position as to what the TRM
means or requires and BP A thereafter persists in its prior position.
6.5 BPA shall not publish a Federal Register Notice regarding BPA rates or the
TRM that prohibits, limits, or restricts Port Angeles' right to submit
testimony or brief issues on rate matters regarding the meaning or
implementation of the TRM or establishment of BP A rates pursuant to it,
provided however for purposes of BP A's conformance to this paragraph a
"rate matter" shall not include budgetary and program level issues.
6.6 The TRM established by BPA as of the Effective Date includes, among other
things, the following:
6.6.1 Definitions (from Definitions section of the TRM):
"Contract High Water Mark" or "CHWM" means the amount
(expressed in Average Megawatts), computed for each customer in
accordance with section 4 of the TRM. For each customer with a
CHWM Contract, the CHWM is used to calculate each customer's
RHWM in the RHWM Process for each applicable Rate Period. The
CHWM Contract specifies the CHWM for each customer.
"Rate Period High Water Mark" or "RHWM" means the amount,
calculated by BPA in each RHWM Process (as defined in the TRM)
pursuant to the formula in section 4.2.1 of the TRM and expressed in
Average Megawatts, that BPA establishes for each customer based on
the customer's CHWM and the RHWM Tier 1 System Capability (as
defined in the TRM). The maximum planned amount of power a
customer may purchase under Tier 1 Rates each Fiscal Year of the
Rate Period is equal to the RHWM for Load Following customers and
the lesser ofRHWM or Annual Net Requirement for Block and
Slice/Block customers.
"Contract Demand Quantity" or "CDQ" means the monthly
quantity of demand (expressed in kilowatts) included in each
customer's CHWM Contract that is subtracted from the Customer
09PB-13093, Port Angeles
23
System Peak (as defined in the TRM) as part of the process of
determining the customer's Demand Charge Billing Determinant (as
defined in the TRM), as calculated in accordance with section 5.3.5 of
the TRM.
6.6.2 Rate Period High Water Mark Calculation (from section 4.2.1 of the
TRM):
Expressed as a formula, the RHWM will be calculated by BP A for each
customer as follows:
CHWM
RHWM = ~CHWM x TISC
where:
RHWM = Rate Period High Water Mark, expressed in Average
Megawatts
CHWM = Contract High Water Mark
ECHWM = sum of all customers' Contract High Water Marks,
including those for customers without a CHWM
Contract
T1SC = forecast RHWM Tier 1 System Capability (as defined
in the TRM), averaged for the Rate Period
7. mGH WATER MARKS AND CONTRACT DEMAND QUANTITIES
7.1 Contract High Water Mark (CHWM)
BPA shall establish Port Angeles' CHWM in the manner defined in
section 4.1 of the TRM that was current as of the Effective Date. Port
Angeles' CHWM and the circumstances under which it can change are stated
in Exhibit B.
7.2 Rate Period High Water Mark (RHWM)
Port Angeles' CHWM shall also be Port Angeles' RHWM for FY 2012 and
FY 2013. BPA shall establish Port Angeles' RHWM for the next Rate Period
by September 30,2012, and for subsequent Rate Periods by September 30 of
each Forecast Year thereafter. BPA shall establish Port Angeles' RHWM in
the manner defined in section 4.2 of the TRM that was current as of the
Effective Date.
7.3 Contract Demand Quantities (CDQs)
BP A shall establish Port Angeles' CDQs pursuant to the TRM. Port Angeles'
CDQs are listed in Exhibit B.
09PB-13093, Port Angeles
24
8. APPLICABLE RATES
Purchases under this Agreement are subject to the following rate schedules, or their
successors: Priority Firm Power (PF), New Resource Firm Power (NR), and Firm
Power Products and Services (FPS), as applicable. Billing determinants for any
purchases will be included in each rate schedule. Power purchases under this
Agreement are subject to BPA's Wholesale Power Rate Schedules, established in
accordance with the TRM, as applicable, and its GRSPs (or their successors).
8.1 Priority Firm Power (PF) Rates
BPA shall establish its PF power rates that apply to purchases under this
Agreement pursuant to section 7 of the Northwest Power Act, and in
accordance with the TRM. BPA shall establish PF rates that include rate
schedules for purchase amounts at Tier 1 Rates and purchase amounts at
Tier 2 Rates. Port Angeles' purchase of Firm Requirements Power shall be
priced as follows:
(1) Tier 1 Rates shall apply to Firm Requirements Power that Port
Angeles purchases under this Agreement, less: (a) amounts of Firm
Requirements Power priced at Tier 2 Rates elected by Port Angeles in
section 2 of Exhibit C, and (b) any amounts purchased for NLSLs.
(2) Tier 2 Rates shall apply to planned annual amounts of Firm
Requirements Power that Port Angeles purchases to serve its Above-
RHWM Load that remains after applying Port Angeles' New
Resources. The details of this calculation, including the use of a
forecasted RHWM for FY 2012 and FY 2013, are established in the
TRM.
8.2 New Resource Firm Power (NR) Rate
Except for the application of section 23.3.7.1 Renewable
Resource/Cogeneration Exception, any amounts of Firm Requirements Power
provided to Port Angeles from BP A for service to an NLSL that is listed in
Exhibit D shall be purchased at the NR Rate.
8.3 Firm Power Products and Services (FPS) Rate
Services sold under this Agreement to Port Angeles at the FPS rate, if any,
are listed in Exhibit D.
8.4 Additional Charges
The Resource Shaping Charge shall apply to Port Angeles' New Resources
that are used to serve Total Retail Load in an amount other than equal
megawatt amounts for each hour ofthe year. Port Angeles may incur
additional charges or penalty charges as provided in the Wholesale Power
Rate Schedules and GRSPs, including the Unauthorized Increase Charge or
its successors.
09PB-13093, Port Angeles
25
8.5 Resource Support Services (RSS)
For Port Angeles' Specified Resources, Port Angeles may elect to purchase
RSS products under this Agreement. Such purchases shall be listed in
Exhibit D.
9. ELECTIONS TO PURCHASE POWER PRICED AT TIER 2 RATES
9.1 Determination and Notice to Serve Above-RHWM Load
Port Angeles shall determine and provide notice, as described below, to BP A
whether Port Angeles shall serve its Above-RHWM Load that is greater than
or equal to 8,760 megawatt-hours with either: (1) Firm Requirements Power
purchased from BPA at a Tier 2 Rate or rates, (2) Dedicated Resources, or
(3) a specific combination of both (1) and (2). Port Angeles shall make such
determination and provide such notice as follows:
9.1.1 Notice Deadlines and Purchase Periods
Notice Deadlines and corresponding Purchase Periods are as follows:
Notice Deadline
November 1, 2009
September 30, 2011
September 30,2016
September 30.2021
For
For
For
For
Purchase Period
FY 2012 - FY 2014
FY 2015 - FY 2019
FY 2020 - FY 2024
FY 2025 - FY 2028
9.1.2 Elections to Purchase at Tier 2 Rates
By each Notice Deadline, Port Angeles shall elect in writing to
purchase, or not to purchase, Firm Requirements Power at Tier 2
Rates for at least the upcoming Purchase Period. If Port Angeles
elects to purchase Firm Requirements Power at Tier 2 Rates, then
Port Angeles shall make such election pursuant to sections 2.2
through 2.4 of Exhibit C. BPA shall update Exhibit C to state Port
Angeles' Tier 2 Rate purchase elections.
9.1.3 Elections Not to Purchase at Tier 2 Rates
If Port Angeles elects under section 9.1.2 not to purchase Firm
Requirements Power at Tier 2 Rates to serve Above-RHWM Load for a
Purchase Period, BPA shall update section 2.1 of Exhibit C to indicate
such election. Such election shall not eliminate any existing
obligation that extends into the Purchase Period or beyond to
purchase Firm Requirements Power at Tier 2 Rates.
9.1.4 Failure to Make an Election
If Port Angeles makes no election by a Notice Deadline in section 9.1.1
for the corresponding Purchase Period Port Angeles shall be deemed
to have purchased Firm Requirements Power at Tier 2 Short-Term
Rates to serve Above-RHWM Load under alternative (A) in
section 2.4.1 of Exhibit C with zero Dedicated Resource amounts listed
in the table in section 2.4.1.1(2) of Exhibit C, except for any existing
09PB-13093, Port Angeles
26
obligation to apply Dedicated Resources that extends into the
Purchase Period or beyond.
9.2 Tier 2 Rate Alternatives
Subject to the requirements of this section 9 and those stated in Exhibit C,
Port Angeles shall have the right to purchase Firm Requirements Power at
Tier 2 Load Growth Rates, Tier 2 Vintage Rates, and Tier 2 Short-Term
Rates.
9.3 Flat Block
Amounts of Firm Requirements Power priced at Tier 2 Rates and purchased
by Port Angeles shall be equal in all hours of the year.
10. TIER 2 REMARKETING AND RESOURCE REMOVAL
10.1 Resource Removal and Remarketing of Tier 2 Purchase Amounts for
Each Rate Period
If Port Angeles' Above-RHWM Load as forecast for an upcoming Rate Period
is less than the sum of (1) Port Angeles' Tier 2 Rate purchase amounts, as
stated in Exhibit C, and (2) Port Angeles' New Resource amounts, as stated
in Exhibit A, then by October 31 of each Rate Case Year, Port Angeles may
notify BP A of the order and associated amounts of Port Angeles' Tier 2 Rate
purchase amounts that BPA shall remarket and the New Resources Port
Angeles shall remove for each Fiscal Year in the upcoming Rate Period to the
extent necessary to comply with section 10.2. If compliance with the
requirements of section 10.2 would cause Port Angeles to remove part or all
of any New Resource that Port Angeles uses to fulfill a state or federal
renewable resource standard or other comparable legal obligation, then Port
Angeles shall have the right to substitute its right to remove New Resources
for the same amount of Existing Resources to the extent necessary to comply
with section 10.2, provided that the hourly, monthly, and Diurnal amounts so
removed shall be equal to the hourly, monthly, and Diurnal amounts
provided by the New Resources that Port Angeles would have otherwise been
obligated to remove.
If Port Angeles does not provide BP A with such timely notice in accordance
with the preceding paragraph, then BP A shall determine the order and
associated amounts of Tier 2 remarketing and removal of New Resources to
the extent necessary to comply with section 10.2.
10.2 Extent of Removal
Tier 2 remarketing and removal of New Resources pursuant to section 10.1
shall apply until:
(1) the remarketed Tier 2 Rate purchase amounts plus the removed New
Resource amounts equal the amount by which Port Angeles' Tier 2
Rate purchase amounts plus its New Resources exceed its Above-
RHWM Load, or
09PB-13093, Port Angeles
27
(2) all of Port Angeles' Tier 2 Rate purchase amounts are remarketed and
all of its New Resources are removed.
10.3 Partial Resource Removal
When only a portion of a Specified Resource or Unspecified Resource
Amounts is being removed pursuant to section 10.1, such resources shall be
removed proportionally to maintain the same annual shape for the resource
that Port Angeles has established in Exhibit A.
10.4 Remarketing of Power Priced at Tier 2 Rates
Consistent with rates established under the TRM, Port Angeles shall be
subject to applicable charges or credits associated with BPA's remarketing of
purchase amounts of Firm Requirements Power at Tier 2 Rates. Except as
specified in section 10.5, Port Angeles shall be responsible for remarketing of
any amounts of its Dedicated Resources, Specified or Unspecified, that are
removed pursuant to section 10.1.
10.5 Removal of Resources Taking DFS
The following shall apply for any Dedicated Resources: (1) for which Port
Angeles is purchasing DFS under this Agreement, and (2) that are partially
or entirely removed pursuant to section 10.1.
10.5.1 Port Angeles shall continue to apply the entire amount of any such
resources to load consistent with applicable provisions stated in
Exhibit D.
10.5.2 BPA shall remarket the amounts of any such resources that are
removed pursuant to section 10.1 in the same manner BPA remarkets
Tier 2 Rate purchase amounts in section 10.4. BPA shall continue to
provide DFS in accordance with applicable provisions in Exhibit D to
any amounts of such resources that remain after resource removal.
11. RIGHT TO CHANGE PURCHASE OBLIGATION
11.1 One-Time Right to Change Purchase Obligation
Subject to this section 11.1, Port Angeles shall have a one-time right to
change its purchase obligation, identified in section 3, to another purchase
obligation available from BP A, including Block or SliceIBlock. If Port Angeles
chooses to change its purchase obligation, then Port Angeles shall first
provide notice to BP A of its intent and then confirm its decision as
established below. Any elections of Tier 2 Rate alternatives, Dedicated
Resource additions, or other notices given to BPA under this Agreement shall
continue to be applicable under the new purchase obligation, provided that
BPA may update such terms and conditions consistent with the then-current
terms of the new purchase obligation, and additional costs may apply for
service under the new purchase obligation as described in section 11.1.3.
09PB-13093, Port Angeles
28
11.1.1 Notice to Change
By May 31,2016, Port Angeles may provide written notice to BPA
that it is requesting to change its purchase obligation effective
October 1, 2019, subject to confirmation described in section 11.1.4.
Port Angeles' notice shall state the type of service requested. If such
service is the SliceIBlock purchase obligation, then Port Angeles shall
state a range of Slice amounts between a specified minimum and
maximum amount of Slice that Port Angeles will accept, provided that
the maximum amount of Slice shall not exceed 70% of Port Angeles'
CHWM.
11.1.2 Limitations Due to Peak Load Increase
By July 31,2016, BPA shall assess the aggregate effect of all requests
to change purchase obligations on BP A's forecast of its total monthly
firm coincident peak loads in the first year the changes become
effective. If the increase in this peak load in anyone month exceeds
300 megawatts, then BPA may, after consulting with Port Angeles
and other customers with a CHWM Contract, do one of the following
to reduce the increase in such peak load to 300 megawatts: (1) deny
Port Angeles' request to change its purchase obligation, or (2) approve
Port Angeles' request but defer the date on which Port Angeles' new
purchase obligation change becomes effective.
11.1.3 Charge to Change Purchase Obligation
In addition to the limitations established in section 11.1.2, Port
Angeles may be subject to charges, in addition to the rates for the new
service, as a result of changing its purchase obligation. Such
additional charges shall recover all additional costs that: (1) will be
incurred by BP A to serve Port Angeles under its new purchase
obligation compared to its existing purchase obligation, and (2) would
otherwise result in a rate impact on all other customers receiving
service under a CHWM Contract. If Port Angeles makes a request to
change its purchase obligation, then by September 30,2016, BPA
shall determine and present Port Angeles with any such additional
charges. BP A shall not be required to make a payment to Port
Angeles as a result of Port Angeles changing its purchase obligation.
11.1.4 Change Confirmation
Within 30 days of BPA's presentation to Port Angeles of the additional
charges determined in section 11.1.3, Port Angeles shall provide BP A
with written notice whether it wishes to proceed with its request to
change its purchase obligation. If Port Angeles is requesting a change
to the SlicelBlock purchase obligation, then such confirmation
constitutes agreement that Port Angeles shall purchase an amount of
Slice within Port Angeles' specified range of acceptable Slice amounts,
ifmade available by BPA. If Port Angeles does not provide BPA with
such confirmation, then Port Angeles' existing purchase obligation
identified in section 3 shall continue to apply.
09PB-13093, Port Angeles
29
11.1.5 Slice Amount
If Port Angeles requests a change to a SliceIBlock purchase obligation,
then BP A shall determine Port Angeles' specific amount of Slice as
follows:
(1) BPA shall determine the total amount of Slice available for
purchase by all customers requesting a change to SliceIBlock.
Such amount shall be the sum of any unsubscribed amount of
Slice as of October 1, 2011, plus any amount of Slice made
available by customers switching from the SliceIBlock purchase
obligation.
(2) If such amount is sufficient to meet the requested maximum
amount of Slice from all customers requesting a change to
SliceIBlock, then BP A shall provide to Port Angeles its
requested maximum amount of Slice as part of the new
purchase obligation.
(3) If such amount is insufficient to meet the requested maximum
amount of Slice from all customers requesting a change to
Slice/Block, then BPA shall reduce individual Slice amounts of
customers requesting a change to SliceIBlock pro rata based on
the requested maximum amount of Slice. If Port Angeles'
individual Slice amount is below its specified minimum, then.
Port Angeles shall retain its current purchase obligation.
11.1.6 Amendment to Reflect New Purchase Obligation
Following Port Angeles' confirmation of its decision to change its
purchase obligation, the Parties shall amend this Agreement to
replace the terms of Port Angeles' current purchase obligation with
the terms of the new purchase obligation. Such amendment shall
include, but not be limited to, revising the peak amounts for each of
Port Angeles' Specified Resources listed in section 2 of Exhibit A. The
Parties shall revise such peak amounts using BP A's peak standard
applicable to Port Angeles' new purchase obligation. The amended
Agreement shall be effective no later than October 1, 2019.
11.2 This Section Intentionally Left Blank
12. BILLING CREDITS AND RESIDENTIAL EXCHANGE
12.1 Billing Credits
If Port Angeles develops a Generating Resource to serve its loads, then Port
Angeles agrees that it shall forego any request for, and BPA is not obligated
to include, billing credits, as defined in section 6(h) of the Northwest Power
Act, on Port Angeles' bills under this Agreement. This section does not apply
to any billing credit contracts in effect as of the Effective Date.
09PB-13093, Port Angeles
30
12.2 Agreement to Limit Exchange Costs of Existing Resources
Port Angeles agrees it will not seek and shall not receive residential exchange
benefits pursuant to section 5(c) of the Northwest Power Act other than
pursuant to Section IV(G) of BPA's 2008 Average System Cost Methodology
or its successor. Port Angeles recognizes that the quantity of residential load
will be determined in a subsequent policy or rate determination. Port
Angeles' agreement in this section 12.2 is a material precondition to BPA
offering and executing this Agreement.
13. SCHEDULING
Over the term of this Agreement, Port Angeles may be required to purchase, or may
have the option to purchase, Transmission Scheduling Service from Power Services
in accordance with Exhibit F. If Port Angeles is required or elects to purchase
Transmission Scheduling Service from Power Services, then Exhibit F shall be
replaced with the Transmission Scheduling Service exhibit. If Port Angeles is not
purchasing Transmission Scheduling Service from Power Services, then Port
Angeles shall comply with the scheduling requirements described in sections 2 and 3
of Exhibit F.
14. DELIVERY
14.1 Definitions
14.1.1 "Integrated Network Segment" means those facilities of the Federal
Columbia River Transmission System that are required for the
delivery of bulk power supplies, the costs for which are recovered
through generally applicable transmission rates, and that are
identified as facilities in the Integrated Network Segment, or its
successor, in the BPA segmentation study for the applicable
transmission rate period as determined in a hearing establishing or
revising BPA's transmission rates pursuant to section 7(i) ofthe
Northwest Power Act.
14.1.2 "Primary Points of Receipt" means the points on the Pacific Northwest
transmission system where Firm Requirements Power is forecasted to
be made available by Power Services to Port Angeles for purposes of
obtaining a long-term firm transmission contract.
14.1.3 "Scheduling Points of Receipt" means the points on the Pacific
Northwest transmission system where Firm Requirements Power is
made available by Power Services to Port Angeles for purposes of
transmission scheduling.
14.2 Transmission Service
14.2.1 Port Angeles is responsible for delivery of power from the Scheduling
Points of Receipt.
09PB-13093, Port Angeles
31
14.2.2 Port Angeles shall provide at least 60 days' notice to Power Services
prior to changing Balancing Authority Areas.
14.2.3 At Port Angeles' request, Power Services shall provide Port Angeles
with Primary Points of Receipt and other information needed to
enable Port Angeles to obtain long-term firm transmission for delivery
of power sold under this Agreement. If required by Transmission
Services for purposes of transmission scheduling, then Power Services
shall provide Port Angeles with Scheduling Points of Receipt. Power
Services has the right to provide power to Port Angeles at Scheduling
Points of Receipt that are different than the Primary Points of
Receipt. IfBPA does provide power to Port Angeles at Scheduling
Points of Receipt that are different than the Primary Points of
Receipt, then BPA shall reimburse Port Angeles for any incremental,
direct, non-administrative costs incurred by Port Angeles to comply
with delivering Firm Requirements Power from such a Scheduling
Point of Receipt to Port Angeles' load if the following conditions, as
outlined in (1) or (2) below, have been met:
(1) If Port Angeles has long-term Point to Point (PTP)
transmission service (as defined in BPA's Open Access
Transmission Tariff) for delivery of Firm Requirements Power
to its load:
(A) Port Angeles has requested long-term firm transmission
service to deliver its Firm Requirements Power using
the Primary Points of Receipt and other information
provided by Power Services; and
(B) Port Angeles has submitted a request to redirect its
long-term firm PTP transmission service to deliver Firm
Requirements Power from the Scheduling Point of
Receipt on a firm basis, but that request was not
granted; and
(C) Port Angeles' transmission schedule was curtailed due
to non-firm status under PTP transmission service or
Port Angeles can provide proof of the reimbursable costs
incurred to replace the curtailed schedule.
(2) If Port Angeles has long-term Network Integration
Transmission Service (as defined in BPA's Open Access
Transmission Tariff) for delivery of Firm Requirements Power
to its load:
(A)
Port Angeles has requested long-term firm transmission
service to deliver its Firm Requirements Power using
the Primary Points of Receipt and other information
provided by Power Services; and
09PB-13093, Port Angeles
32
(B) Port Angeles' transmission schedule was curtailed due
to non-firm status under its secondary service status
and Port Angeles can provide proof of the reimbursable
costs incurred to replace the curtailed schedule.
14.3 Liability for Delivery
Port Angeles waives any claims against BP A arising under this Agreement
for non-delivery of power to any points beyond the applicable Scheduling
Points of Receipt, except for reimbursement of costs as described in
section 14.2.3. BPA shall not be liable under this Agreement for any third-
party claims related to the delivery of power after it leaves the Scheduling
Points of Receipt. Neither Party shall be liable under this Agreement to the
other Party for damage that results from any sudden, unexpected, changed,
or abnormal electrical condition occurring in or on any electric system,
regardless of ownership. These limitations on liability apply regardless of
whether or not this Agreement provides for Transfer Service.
14.4 Real Power Losses
BP A is responsible for the real power losses necessary to deliver Firm
Requirements Power to Port Angeles' PODs listed in Exhibit E.
14.5 Metering Losses
BPA shall adjust measured amounts of power to account for losses, if any,
that occur between Port Angeles' PODs and the respective POMs, as specified
in Exhibit E.
15. METERING
15.1 Measurement
By September 30,2010, the Parties shall ensure that meters are installed on
all PODs listed in Exhibit E, consistent with the requirements of this
section 15. The amount of power measured by such meters shall be used by
BP A for billing purposes. If the Parties agree that metering is economically
or technologically impractical, then:
(1) the Parties shall use scheduled amounts to measure the amount of
power purchased if such power is scheduled into or out of Port
Angeles' service territory; or
(2) the Parties shall use mutually acceptable load profiles to measure the
amount of power purchased if such power is not scheduled.
If the metering equipment associated with the meters listed in Exhibit E fails
to properly measure or record the interval readings, then BPA shall apply the
procedure set out in the Meter Usage Data Estimations provision of the
Wholesale Power Rate Schedules and GRSPs to determine the appropriate
billing adjustment.
09PB-13093, Port Angeles
33
The rights to locate meters and access facilities granted to BP A pursuant to
this section 15 are subject to the terms of any applicable agreement between
Port Angeles and Transmission Services addressing the location, cost
responsibility, access, maintenance, testing, and liability of the Parties with
respect to meters.
15.2 Existing BP A Owned Meters
At BPA's expense, BPA shall operate, maintain, and replace, as necessary, all
existing metering equipment owned by BPA that is needed to plan, schedule,
and bill for power. Port Angeles authorizes BPA to maintain and replace any
metering equipment on Port Angeles' facilities that is reasonably necessary to
forecast, plan, schedule, and bill for power. With reasonable notice from
BP A, and for the purpose of implementing this provision, Port Angeles shall
grant BPA reasonable physical access to BPA owned meters at BPA's
request.
BP A shall give Port Angeles access to meter data from the BP A owned
meters listed in Exhibit E.
If, at any time, BP A or Port Angeles determines that a BP A owned meter is
defective or inaccurate, then BPA shall adjust, repair, or replace the meter to
provide accurate metering as soon as practical.
15.3 Non-BPA Owned Meters
15.3.1 Customer Owned Meters
Port Angeles shall operate, maintain, and replace, as necessary at
Port Angeles' expense, all non-BPA metering equipment owned by
Port Angeles that is needed by BPA to forecast, plan, schedule, and
bill for power for:
(1) points of interconnection between Port Angeles' system and
parties other than BP A;
(2) all loads that require separate measurement for purposes of
forecasting, planning, scheduling, or billing for power; and
(3) Generating Resources listed in Exhibit A that are
interconnected to Port Angeles' system.
Port Angeles shall give BP A direct, electronic access to meter data
from all Port Angeles owned meters that are capable of being accessed
electronically. For the purpose of inspection, Port Angeles shall grant
BPA reasonable physical access to Port Angeles meters at BPA's
request.
If, at any time, BP A or Port Angeles determines that a Port Angeles
owned meter listed in Exhibit E is defective or inaccurate, then Port
Angeles shall adjust, repair, or replace the meter, or shall make
09PB-13093, Port Angeles
34
commercially reasonable efforts to arrange for the completion of such
actions, to provide accurate metering as soon as practical. BP A shall
have the right to witness any meter tests on Port Angeles owned
meters listed in Exhibit E and, with reasonable advance notice, BP A
may conduct tests on such meters. Port Angeles shall have the right
to witness any meter tests conducted by BPA.
15.3.2 Non-BPA Owned Meters Not Owned by Port Angeles
For non-BPA owned meters not owned by Port Angeles needed by BPA
to forecast, plan, schedule and bill for power under this Agreement,
Port Angeles shall make commercially reasonable efforts to arrange
for 'such meters to be operated, maintained and replaced, as necessary,
for the measurements described above in sections 15.3.1(1) and
15.3.1(2) and for any Generating Resources listed in Exhibit A that
require metering.
If, at any time, it is determined that a non-BPA owned meter not
owned by Port Angeles listed in Exhibit E is defective or inaccurate,
then Port Angeles shall make commercially reasonable efforts to
arrange to adjust, repair, or replace the meter, to provide accurate
metering as soon as practical. To the extent possible, BP A may
witness any meter tests on non-BPA owned meters not owned by Port
Angeles listed in Exhibit E and, with reasonable advance notice, BP A
may conduct tests on such meters. Port Angeles shall have the right
to witness any meter tests conducted by BP A.
15.3.3 Non-BPA Owned Meters Owned by Third-Party Transmission
Provider
This section 15.3 shall not apply to non-BPA owned meters that are
owned by a Third-Party Transmission Provider with which BPA holds
a transmission contract for service to Port Angeles load. In these
cases the metering arrangements shall be between BP A and the
Third-Party Transmission Provider.
15.4 New Meters
A separate agreement addressing the location, cost responsibility, access,
maintenance, testing, and liability of the Parties with respect to new meters
shall be between Port Angeles and Transmission Services.
All new and replaced meters shall meet American National Standard
Institute standards, including, but not limited to C12.20, Electricity
Meters--0.2 and 0.5 Accuracy Classes, and the Institute of Electrical and
Electronics Engineers, Inc. standard C57.13, Requirements for Instrument
Transformers, or their successors. Any new and replaced meters shall be
able to record meter data hourly and store data for a minimum of 45 days.
15.5 Metering an NLSL
Any loads that are monitored by BP A for an NLSL determination and any
NLSLs shall be metered pursuant to section 23.3.4.
09PB-13093, Port Angeles
35
15.6 Metering Exhibit
Port Angeles shall provide meter data specified in section 17.3 and shall
notify BPA of any changes to PODs, POMs, Interchange Points and related
information for which it is responsible. BPA shall list Port Angeles' PODs II'
and meters in Exhibit E.
16. BILLING AND PAYMENT
16.1 Billing
BPA shall bill Port Angeles monthly for all products and services provided
during the preceding month(s). BPA may send Por.t Angeles an estimated bill
followed by a final bill. The Issue Date is the date BP A electronically sends
the bill to Port Angeles. If electronic transmittal of the entire bill is not
practical, then BPA shall transmit a summary electronically, and send the
entire bill by United States mail.
16.2 Payment
Port Angeles shall pay all bills electronically in accordance with instructions
on the bill. Payment of all bills, whether estimated or final, must be received
by the 20th day after the Issue Date of the bill (Due Date). If the 20th day is a
Saturday, Sunday, or federal holiday, then the Due Date is the next Business
Day.
If Port Angeles has made paYment on an estimated bill then:
(1) if the amount of the final bill exceeds the amount of the estimated bill,
then Port Angeles shall pay BP A the difference between the estimated
bill and final bill by the final bill's Due Date; or
(2) if the amount of the final bill is less than the amount of the estimated
bill, then BP A shall pay Port Angeles the difference between the
estimated bill and final bill by the 20th day after the final bill's Issue
Date. If the 20th day is a Saturday, Sunday, or federal holiday, BPA
shall pay the difference by the next Business Day.
16.3 Late Payments
After the Due Date, a late paYment charge equal to the higher of:
(1) the Prime Rate (as reported in the Wall Street Journal or successor
publication in the first issue published during the month in which
payment was due) plus four percent, divided by 365; or
(2) the Prime Rate times 1.5, divided by 365;
shall be applied each day to any unpaid balance.
09PB-13093, Port Angeles
36
16.4 Termination
If Port Angeles has not paid its bill in full by the Due Date, it shall have
45 days to cure its nonpayment by making payment in full. If Port Angeles
does not provide payment within three Business Days after receipt of an
additional written notice from BP A, and BP A determines in its sole discretion
that Port Angeles is unable to make the payments owed, then BP A may
terminate this Agreement. Written notices sent under this section 16.4 must
comply with section 20.
16.5 Disputed Bills
16.5.1 If Port Angeles disputes any portion of a charge or credit on Port
Angeles' estimated or final bills, Port Angeles shall provide written
notice to BP A with a copy of the bill noting the disputed amounts.
Notwithstanding whether any portion of the bilT is in dispute, Port
Angeles shall pay the entire bill by the Due Date. This section 16.5.1
does not allow Port Angeles to challenge the validity of any BP A rate.
16.5.2 Unpaid amounts on a bill (including both disputed and undisputed
amounts) are subject to the late payment charges provided above.
Notice of a disputed charge on a bill does not constitute BPA's
agreement that a valid claim under contract law has been stated.
16.5.3 If the Parties agree, or if after a final determination of a dispute
pursuant to section 22, Port Angeles is entitled to a refund of any
portion of the disputed amount, then BP A shall make such refund
with simple interest computed from the date of receipt of the disputed
payment to the date the refund is made. The daily interest rate shall
equal the Prime Rate (as reported in the Wall Street Journal or
successor publication in the first issue published during the month in
which payment was due) divided by 365.
17. INFORMATION EXCHANGE AND CONFIDENTIALITY
17.1 General Requirements
Upon request, each Party shall provide the other Party with any information
that is necessary to administer this Agreement and to forecast Port Angeles'
Total Retail Load, forecast BP A system load, comply with NERC reliability
standards, prepare bills, resolve billing disputes, administer Transfer
Service, and otherwise implement this Agreement. For example, this
obligation includes transmission and power scheduling information and load
and resource metering information (such as one-line diagrams, metering
diagrams, loss factors, etc.). In addition, Port Angeles shall provide
information BP A requests about Dedicated Resources for purposes of meeting
BPA's statutory obligations under section 7(b) of the Northwest Power Act.
Information requested under this section 17.1 shall be provided in a timely
manner. If Port Angeles fails to provide BPA with information Port Angeles
is required to provide pursuant to this Agreement and the absence of such
information makes it impossible for BP A to perform a calculation, make a
09PB-13093, Port Angeles
37
determination, or take an action required under this Agreement, then BP A
may suspend its obligation to perform such calculation, make such
determination, or take such action until Port Angeles has provided such
information to BP A.
17.2 Reports
17.2.1 Within 30 days after final approval of Port Angeles' annual financial
report and statements by Port Angeles' authorized officer, Port
Angeles shall either e-mail them to BPA at ksl:f@bpa.gov or, if any of
the information is publicly available, then Port Angeles shall notify
BP A of its availability.
17.2.2 Within 30 days after its submittal to the Energy Information
Administration (EIA), or its successor, Port Angeles shall e-mail a
copy of its Annual Form EIA-861 Reports to BPA at ksl:f@bpa.gov. If
Port Angeles is not required to submit such reports to the EIA, then
this requirement does not apply.
17.3 Meter Data
17.3.1 In accordance with section 15 and Exhibit E, the Parties shall notify
each other of any changes to PODs, POMs, Interchange Points and
related information for which it is responsible. Port Angeles shall
ensure BP A has access to all data from load and resource meters that
BP A determines is necessary to forecast, plan, schedule, and bill
under this Agreement. Access to this data shall be on a schedule
determined by BPA. Meter data shall be in hourly increments for all
meters that record hourly data. Meter data includes, but is not
limited to: Port Angeles' actual amounts of energy used or expended
for loads and resources, and the physical attributes of Port Angeles'
meters.
17.3.2 Port Angeles consents to allow Power Services to receive the following
information from Transmission Services or BPA's metering function:
(1) Port Angeles' meter data, as specified in section 17.3.1, section 15,
and Exhibit E, and (2) notification of outages or load shifts.
17.3.3 At least 15 calendar days in advance, Port Angeles shall e-mail BPA
at: (1) mdm@bpa.gov and (2) the contact shown in section 20 when the
following events are planned to occur on Port Angeles' system that will
affect the load measured by the meters listed in Exhibit E:
(1) installation of a new meter, (2) changes or updates to an existing
meter not owned by BPA, (3) any planned line or planned meter
outages, and (4) any planned load shifts from one POD to another.
This section 17.3.3 is not !ntended to apply to retail meters not listed
in Exhibit E.
09PB-13093, Port Angeles
38
17.3.4 If an unplanned load shift or outage occurs, materially affecting the
load measured by the meters listed in Exhibit E, then Port Angeles
shall e-mail BPA at: (1) mdm@bpa.gov, and (2) the contact shown in
section 20 within 72 hours after the event.
17.4 Data for Determining CHWM and CDQs
Upon request, Port Angeles shall provide to BPA any load and resource
information that BP A determines is reasonably necessary to calculate Port
Angeles' CHWM and CDQs. This may include historical load data not
otherwise available to BP A and other data necessary to allow BP A to adjust
for weather normalization.
17.5 Transparency of Net Requirements Process
By July 31 of each Forecast Year, BPA shall make the following information
publicly available to Port Angeles and all other BP A regional utility
customers with a CHWM:
(1) Port Angeles' measured Total Retail Load data for the previous two
Fiscal Years in monthly energy amounts and monthly customer-
system peak amounts, and
(2) Port Angeles' Dedicated Resources for the previous two Fiscal Years in
monthly energy and peak amounts as listed in section 5 of Exhibit A.
Port Angeles waives all claims of confidentiality regarding the data described
above.
17.6 Confidentiality
Before Port Angeles provides information to BPA that is confidential, or is
otherwise subject to privilege, or nondisclosure, Port Angeles shall clearly
designate such information as confidential. BPA shall notify Port Angeles as
soon as practicable of any request received under the Freedom of Information
Act (FOIA), or under any other federal law or court or administrative order,
for any confidential information. BP A shall only release such confidential
information to comply with FOIA or if required by any other federal law or
court or administrative order. BPA shall limit the use and dissemination of
confidential information within BPA to employees who need it for purposes of
administering this Agreement.
17.7 Resources N ot Used to Serve Total Retail Load
Port Angeles shall list in section 6 of Exhibit A all Generating Resources and
Contract Resources Port Angeles owns that are (1) not Specified Resources
listed in section 2 of Exhibit A, and (2) greater than 200 kilowatts of
nameplate capability. At BPA's request Port Angeles shall provide BPA with
additional data if needed to verify the information listed in section 6 of
Exhibit A.
09PB-13093, Port Angeles
39
18. CONSERVATION AND RENEWABLES
18.1 Conservation
18.1.1 Evaluations
At BPA's expense, BPA may conduct, and Port AItgeles shall cooperate
in, conservation impact and project implementation process
evaluations to assess the amount, cost-effectiveness, and reliability of
conservation in BPA's or Port Angeles' service area.
BPA shall select the timing, frequency, and type of such evaluations.
BPA shall do so with reasonable consideration of Port Angeles' and
Port Angeles' consumers' needs.
18.1.2 Reporting Requirements
18.1.2.1 This section 18.1.2.1 does not apply if Port Angeles' Total
Retail Load from the most recent prior Fiscal Year is
25 annual Average Megawatts or less, or if Port Angeles
purchases all of its power from BP A to serve its Total Retail
Load. Beginning June 1, 2010, and no later than June 1
every two years thereafter, Port Angeles shall submit a
ten-year conservation plan stating Port Angeles' projection of
planned conservation, including biennial conservation
targets. This requirement may be satisfied by submitting
any plans Port Angeles prepares in the normal course of
business if the plans include, or are supplemented by, the
information required above. This includes plans required
under state law (such as the Washington State Energy
Independence Act (RCW 19.285)).
18.1.2.2 Port Angeles shall verify and report all cost-effective (as
defined by section 3(4) of the Northwest Power Act) non-BPA-
funded conservation measures and projects savings achieved
by Port Angeles through the Regional Technical Forum's
Planning, Tracking and Reporting System or its successor
tool. Verification protocols of conservation measures and
projects, reporting timelines and documentation
requirements shall comply with BP A's Energy Efficiency
Implementation Manual or its successor.
18.2 Renewable Resources
18.2.1 Renewable Energy Certificates
BPA shall transfer Renewable Energy Certificates (RECs), or their
successors, to Port Angeles in accordance with Exhibit H.
09PB-13093, Port Angeles
40
18.2.2 Reporting Requirements
This section 18.2.2 does not apply if Port Angeles' Total Retail Load is
25 annual Average Megawatts or less or if Port Angeles purchases all
of its power from BPA to serve its Total Retail Load. If Port Angeles'
Total Retail Load is above 25 annual Average Megawatts, the
following requirements may be satisfied by submitting plans and
reports Port Angeles prepares in the normal course of business as long
as such plans and reports include the information required below.
Beginning September 1, 2012, and by September 1 every year
thereafter, Port Angeles shall provide BPA with the following:
(1) updated information on power forecasted to be generated over
the forthcoming calendar year by renewable resources with
nameplate capabilities greater than 200 kilowatts, including
net metered renewable resources operating behind the BPA
meter, used by Port Angeles to serve its Total Retail Load,
under Exhibit A. Such information shall include: project
name, fuel type(s), location, date power purchase contract
signed, project energization date, capacity, capacity factor,
remaining term of purchase (or if direct ownership remaining
life of the project), and the percentage of output that will be
used to serve Port Angeles' Total Retail Load that calendar
year. Where resources are jointly owned by Port Angeles and
other customers that have a CHWM Contract, Port Angeles
may either submit a report on behalf of all owners or identify
the customer that will submit the report;
(2) the amount of all purchases of RECs used to meet
requirements under state or federal law for the forthcoming
calendar year; and
(3) if Port Angeles is required under state law or by Transmission
Services to prepare long-term integrated resource plans or
resource forecasts, then Port Angeles shall provide Power
Services with updated copies of such or authorize Transmission
Services to provide them directly to Power Services.
19. RESOURCE ADEQUACY
By November 30,2010, and by November 30 each year thereafter, Port Angeles shall
provide to the Pacific Northwest Utilities Confere.nce Committee (PNUCC), or its
successor, forecasted loads and resources data to facilitate a region-wide assessment
of loads and resources in a format, length of time, and level of detail specified in
PNUCC's Northwest Regional Forecast Data Request.
After consultation with the Regional Resource Adequacy Forum, or a successor, BPA
may require Port Angeles to submit additional data to the Northwest Power and
09PB-13093, Port Angeles
41
Conservation Council (Council) that BPA determines is necessary for the Council to
perform a regional resource adequacy assessment.
The requirements of this section 19 are waived if Port Angeles purchases from BP A
all of its power to serve its Total Retail Load.
20. NOTICES AND CONTACT INFORMATION
Any notice required under this Agreement that requires such notice to be provided
under the terms of this section shall be provided in writing to the other Party in one
of the following ways:
(1) delivered in person;
(2) by a nationally recognized delivery service with proof of receipt;
(3) by United States Certified Mail with return receipt requested;
(4) electronically, if both Parties have means to verify the electronic notice's
origin, date, time of transmittal and receipt; or
(5) by another method agreed to by the Parties.
Notices are effective when received. Either Party may change the name or address
for delivery of notice by providing notice of such change or other mutually agreed
method. The Parties shall deliver notices to the following person and address:
If to Port Angeles:
City of Port Angeles
P.O. Box 1150
Port Angeles, WA 98362-0217
Attn: Larry Dunbar
Deputy Director of Power
Systems
360-417-4710
360-417 -4609
ldunbar@cityofpa.us
Phone:
FAX:~
E- Mail:
21. UNCONTROLLABLE FORCES
If to BPA:
Bonneville Power Administration
909 First Avenue, Suite 380
Seattle, WA 98104-3636
Attn: Shannon K. Greene - PSW
Account Executive
206-220-6775
206-220-6803
skgreene@bpa.gov
Phone:
FAX:
E-Mail:
21.1 A Party shall not be in breach of an obligation under this Agreement to the
extent its failure to fulfill the obligation is due to an Uncontrollable Force.
"Uncontrollable Force" means an event beyond the reasonable control, and
without the fault or negligence, ofthe Party claiming the Uncontrollable
Force, that prevents that Party from performing its obligations under this
Agreement and which that Party could not have avoided by the exercise of
reasonable care, diligence and foresight. Uncontrollable Forces include each
event listed below, to the extent it satisfies the foregoing criteria, but are not
limited to these listed eyents:
09PB-13093, Port Angeles
42
(1) any curtailment or interruption of firm transmission service on BPA's
or a Third Party Transmission Provider's System that prevents
delivery of Firm Requirements Power sold under this Agreement to
Port Angeles;
(2) any failure of Port Angeles' distribution or transmission facilities that
prevents Port Angeles from delivering power to end-users;
(3) strikes or work stoppage;
(4) floods, earthquakes, other natural disasters, or terrorist acts; and
(5) final orders or injunctions issued by a court or regulatory body having
subject matter jurisdiction which the Party claiming the
Uncontrollable Force, after diligent efforts, was unable to have stayed,
suspended, or set aside pending review by a court having subject
matter jurisdiction.
21.2 Neither the unavailability of funds or financing, nor conditions of national or
local economies or markets shall be considered an Uncontrollable Force. The
economic hardship of either Party shall not constitute an Uncontrollable
Force. Nothing contained in this provision shall be construed to require
either Party to settle any strike or labor dispute in which it may be involved.
21.3 If an Uncontrollable Force prevents a Party from performing any of its
obligations under this Agreement, such Party shall:
(1) immediately notify the other Party of such Uncontrollable Force by
any means practicable and confirm such notice in writing as soon as
reasonably practicable;
(2) use commercially reasonable efforts to mitigate the effects of such
Uncontrollable Force, remedy its inability to perform, and resume full
performance of its obligation hereunder as soon as reasonably
practicable;
(3) keep the other Party apprised of such efforts on an ongoing basis; and
(4) provide written notice of the resumption of performance.
Written notices sent under this section must comply with section 20.
22. GOVERNING LAW AND DISPUTE RESOLUTION
This Agreement shall be interpreted consistent with and governed by federal law.
Port Angeles and BPA shall identify issue(s) in dispute arising out of this Agreement
and make a good faith effort to negotiate a resolution of such disputes before either
may initiate litigation or arbitration. Such good faith effort shall include discussions
or negotiations between the Parties' executives or managers. Pending resolution of a
09PB-13093, Port Angeles
43
contract dispute or contract issue between the Parties or through formal dispute
resolution of a contract dispute arising out of this Agreement, the Parties shall
continue performance under this Agreement unless to do so would be impossible or
impracticable. Unless the Parties engage in binding arbitration as provided for in
this section 22, the Parties reserve their rights to individually seek judicial
resolution of any dispute arising under this Agreement.
22.1 Judicial Resolution
Final actions subject to section 9(e) of the Northwest Power Act are not
subject to arbitration under this Agreement and shall remain within the
exclusive jurisdiction of the United States Court of Appeals for the Ninth
Circuit. Such final actions include, but are not limited to, the establishment
and the implementation of rates and rate methodologies. Any dispute
regarding any rights or obligations of Port Angeles or BP A under any rate or
rate methodology, or BPA policy, including the implementation of such policy,
shall not be subject to arbitration under this Agreement. For purposes of this
section 22, BPA policy means any written document adopted by BPA as a
final action in a decision record or record of decision that establishes a policy
of general application or makes a determination under an applicable statute
or regulation. IfBPA determines that a dispute is excluded from arbitration
under this section 22, then Port Angeles may apply to the federal court
having jurisdiction for an order determining whether such dispute is subject
to nonbinding arbitration under this section 22.
22.2 Arbitration
Any contract dispute or contract issue between the Parties arising out of this
Agreement, which is not excluded by section 22.1 above, shall be subject to
arbitration, as set forth below.
Port Angeles may request that BP A engage in binding arbitration to resolve
any dispute. If Port Angeles requests such binding arbitration and BPA
determines in its sole discretion that binding arbitration of the dispute is
appropriate under BPA's Binding Arbitration Policy or its successor, then
BP A shall engage in such binding arbitration, provided that the remaining
requirements of this section 22.2 and sections 2.2.3 and 22.4 are met. BPA
may request that Port Angeles engage in binding arbitration to resolve any
dispute. In response to BP A's request, Port Angeles may agree to binding
arbitration of such dispute, provided that the remaining requirements of this
section 22.2 and sections 22.3 and 22.4 are met. Before initiating binding
arbitration, the Parties shall draft and sign an agreement to engage in
binding arbitration, which shall set forth the precise issue in dispute, the
amount in controversy and the maximum monetary award allowed, pursuant
to BPA's Binding Arbitration Policy or its successor.
Nonbinding arbitration shall be used to resolve any dispute arising out of this
contract that is not excluded by section 22.1 above and is not resolved via
binding arbitration, unless Port Angeles notifies BP A that it does not wish to
proceed with nonbinding arbitration.
09PB-13093, Port Angeles
44
22.3 Arbitration Procedure
Any arbitration shall take place in Portland, Oregon, unless the Parties agree
otherwise. The Parties agree that a fundamental purpose for arbitration is
the expedient resolution of disputes; therefore, the Parties shall make best
efforts to resolve an arbitrable dispute within one year of initiating
arbitration. The rules for arbitration shall be agreed to by the Parties.
22.4 Arbitration Remedies
The payment of monies shall be the exclusive remedy available in any
arbitration proceeding pursuant to this section 22. This shall not be
interpreted to preclude the Parties from agreeing to limit the object of
arbitration to the determination offacts. Under no circumstances shall
specific performance be an available remedy against BP A.
22.5 Finality
22.5.1 In binding arbitration, the arbitration award shall be final and
binding on the Parties, except that either Party may seek judicial
review based upon any of the grounds referred to in the Federal
Arbitration Act, 9 U.S.C. ~1-16 (1988). Judgment upon the award
rendered by the arbitrator(s) may be entered by any court having
jurisdiction thereof.
22.5.2 In nonbinding arbitration, the arbitration award is not binding on the
Parties. Each Party shall notify the other Party within 30 calendar
days, or such other time as the Parties otherwise agreed to, whether it
accepts or rejects the arbitration award. Subsequent to nonbinding
arbitration, if either Party rejects the arbitration award, either Party
may seek judicial resolution of the dispute, provided that such suit is
brought no later than 395 calendar days after the date the arbitration
award was issued.
22.6 Arbitration Costs
Each Party shall be responsible for its own costs of arbitration, including
legal fees. Unless otherwise agreed to by the Parties, the arbitrator(s) may
apportion all other costs of arbitration between the Parties in such manner as
the arbitrator(s) deem reasonable taking into account the circumstances of
the case, the conduct of the Parties during the proceeding, and the result of
the arbitration.
23. STATUTORY PROVISIONS
23.1 Retail Rate Schedules
Port Angeles shall make its retail rate schedules available to BPA, as
required by section 5(a) of the Bonneville Project Act, P.L. 75-329, within
30 days of each of Port Angeles' retail rate schedule effective dates. This
requirement may be satisfied by Port Angeles informing BP A of its public
website where such information is posted and kept current.
09PB-13093, Port Angeles
45
23.2 Insufficiency and Allocations
IfBPA determines, consistent with section 5(b) of the Northwest Power Act
and other applicable statutes, that it will not have sufficient resources on a
planning basis to serve its loads after taking all actions required by
applicable laws then BP A shall give Port Angeles a written notice that BP A
may restrict service to Port Angeles. Such notice shall be consistent with
BPA's insufficiency and allocations methodology, published in the Federal
Register on March 20, 1996, and shall state the effective date of the
restriction, the amount of Port Angeles' load to be restricted and the expected
duration ofthe restriction. BPA shall not change that methodology without
the written agreement of all public body, cooperative, federal agency and
investor-owned u~ility customers in the Region purchasing federal power
from BPA under section 5(b) of the Northwest Power Act. Such restriction
shall take effect no sooner than five years after BP A provides notice to Port
Angeles. IfBPA imposes a restriction under this provision then the amount
of Firm Requirements Power that BP A is obligated to provide and that Port
Angeles is obligated to purchase pursuant to section 3 and Exhibit C shall be
reduced to the amounts available under such allocation methodology for
restricted service.
23.3 New Large Single Loads and CF/CTs
23.3.1 Determination of an NLSL
In accordance with BPA's NLSL Policy, BPA may determine that a
load is an NLSL as follows:
23.3.1.1 BPA shall determine an increase in production load to be an
NLSL if any load associated with a new facility, an existing
facility, or an expansion of an existing facility, which is not
contracted for, or committed to (CF/CT), as determined by the
Administrator, by a public body, cooperative, investor-owned
utility, or federal agency customer prior to September 1,
1979, and which will result in an increase in power
requirements of such customer often Average Megawatts
(87,600,000 kilowatt-hours) or more in any consecutive
12-month period.
23.3.1.2 For the sole purpose of computing the increase in energy
consumption between any two consecutive 12-month periods
of comparison under this section 23.3.1, reductions in the
end-use consumer's load associated with a facility during the
first 12-month period of comparison due to unusual events
reasonably beyond the control of the end-use consumer shall
be determined by BP A, and the energy consumption shall be
computed as if such reductions had not occurred.
23.3.1.3 The Parties may agree that the installed production
equipment at a facility will exceed ten Average Megawatts
09PB-13093, Port Angeles
46
consumption over any 12 consecutive months and such
agreement shall constitute a binding NLSL determination.
23.3.2 Determination of a Facility
BPA shall make a written determination as to what constitutes a
single facility, for the purpose of identifying an NLSL, based on the
following criteria:
(1) whether the load is operated by a single end-use consumer;
(2) whether the load is in a single location;
(3) whether the load serves a manufacturing process which
produces a single product or type of product;
(4) whether separable portions of the load are interdependent;
(5) whether the load is contracted for, served or billed as a single
load under Port Angeles' customary billing and service policy;
(6) consideration of the facts from previous similar situations; and
(7) any other factors the Parties determine to be relevant.
23.3.3 Administrative Obligations and Rights
23.3.3.1 Port Angeles' CF/CT loads and NLSLs are listed in Exhibit D.
23.3.3.2 Port Angeles shall provide reasonable notice to BPA of any
expected increase in a single load that may qualify as an
NLSL. The Parties shall list any such potential NLSLs in
Exhibit D. IfBPA determines that any load associated with a
single facility is capable of growing ten Average Megawatts or
more in a consecutive 12-month period, then such load shall
be subject to monitoring as determined necessary by BP A.
23.3.3.3 When BPA makes a request, Port Angeles shall provide
physical access to its substations and other service locations
where BPA needs to perform inspections or gather
information for purposes of implementing section 3(13) of the
Northwest Power Act, including but not limited to making a
final NLSL, facility, or CF/CT determination. Port Angeles
shall make a request to the end-use consumer to provide
BP A, at reasonable times, physical access to inspect a facility
for these purposes.
23.3.3.4 Unless the Parties agree pursuant to section 23.3.1.3 above,
BP A shall determine whether a new load or an increase in
existing load at a facility is an NLSL. If BP A determines that
09PB-13093, Port Angeles
47
the load is an NLSL, BP A shall notify Port Angeles and the
Parties shall add the NLSL to Exhibit D to reflect BP A's
determination.
23.3.4 Metering an NLSL
For any loads that are monitored by BP A for an NLSL determination,
and for any loads at any facility that is determined by BP A to be an
NLSL, BPA may, in its sole discretion, install BPA owned meters. If
the Parties agree otherwise, Port Angeles may install meters meeting
the exact specification BP A provides to Port Angeles. Port Angeles
and BP A shall enter into a separate agreement for the location,
ownership, cost responsibility, access, maintenance, testing,
replacement and liability of the Parties with respect to such meters.
Port Angeles shall arrange for metering locations that allow accurate
measurement of the facility's load. Port Angeles shall arrange for
BP A to have physical access to such meters and Port Angeles shall
ensure BP A has access to all NLSL meter data that BP A determines
is necessary to forecast, plan, schedule, and bill for power.
23.3.5 Undetermined NLSLs
If BP A does not determine at the outset that an increase in load is an
NLSL, then the Parties shall install metering equipment as required
by section 23.3.4 above, and BPA shall bill Port Angeles for the
increase in load at the applicable PF rate during any consecutive
twelve-month monitoring period. IfBPA later determines that the
increase in load is an NLSL, then BP A shall revise Port Angeles' bill
to reflect the difference between the applicable PF rate and the
applicable NR rate in effect for the monitoring period in which the
increase takes place. Port Angeles shall pay that bill with simple
interest computed from the start of the monitoring period to the date
the payment is made. The daily interest rate shall equal the Prime
Rate (as reported in the Wall Street Journal or successor publication
in the first issue published during the month in which the monitoring
period began) divided by 365.
If BPA concludes in its sole judgment that Port Angeles has not
fulfilled its obligations, or has not been able to obtain access or
information from the end-use coq.sumer under sections 23.3.3 and
23.3.4, BPA may determine any load subject to NLSL monitoring to be
an NLSL, in which case Port Angeles shall be billed and pay in
accordance with the last two sentences of the preceding paragraph.
Such NLSL determination shall be final unless Port Angeles proves to
BPA's satisfaction that the applicable load did not exceed ten Average
Megawatts in any 12-month monitoring period.
23.3.6 Service Election for an NLSL
Before the Parties add an NLSL to Exhibit D, Port Angeles shall elect,
in writing, to:
09PB-13093, Port Angeles
48
(1) have BPA serve the NLSL at the NR rate; or
(2) serve the NLSL with a Dedicated Resource in Exhibit A that is
not already being used to serve Port Angeles' firm consumer
load in the region.
This election shall be binding on Port Angeles for the remaining term
of this Agreement.
23.3.7 Consumer-Owned Resources Serving an NLSL
23.3.7.1 Renewable Resource/Cogeneration Exception
An end-use consumer served by Port Angeles, with a facility
whose load is, in whole or in part, an NLSL, may reduce its
NLSL to less than ten Average Megawatts in a consecutive
12-month period by applying an onsite renewable resource or
on site cogeneration behind Port Angeles' meter to its facility
load. Port Angeles shall ensure that such resource is
continuously applied to serve the NLSL, consistent with
BPA's "Renewables and On-Site Cogeneration Option under
the NLSL Policy" portion of its Policy for Power Supply Role
for Fiscal Years 2007-2011, adopted February 4,2005, and
the NLSL policy included in BPA's Long Term Regional
Dialogue Final Policy, July 2007, as amended or replaced. If
the NLSL end-use consumer meets the qualification for the
exception, then the Parties shall: (1) list the Consumer-
Owned Resource serving the NLSL in section 7.4 of Exhibit A
and (2) amend Exhibit D to add the onsite renewable resource
or cogeneration facility and the requirements for such service.
23.3.7.2 Consumer-Owned Resources that are not Renewable
Resources/Cogeneration
If Port Angeles serves an NLSL with a Consumer-Owned
Resource that does not qualify for the renewable resource or
cogeneration exception, the Parties shall list such Consumer-
Owned Resource serving the NLSL in section 7.4 of
Exhibit A.
23.4 Priority of Pacific Northwest Customers
The provisions of sections 9(c) and 9(d) of the Northwest Power Act and the
provisions ofP.L. 88-552 as amended by the Northwest Power Act are
incorporated into this Agreement by reference. Port Angeles, together with
other customers in the Region, shall have priority to BP A power consistent
with such provisions.
23.5 Prohibition on Resale
Port Angeles shall not resell Firm Requirements Power except to serve Port
Angeles' Total Retail Load or as otherwise permitted by federal law.
09PB-13093, Port Angeles
49
23.6 Use of Regional Resources
23.6.1 Within 60 days prior to the start of each Fiscal Year, Port Angeles
shall provide notice to BP A of any Firm Power from a Generating
Resource, or a Contract Resource during its term, that has been used
to serve firm consumer load in the Region and that Port Angeles plans
to export for sale outside the Region in the next Fiscal Year. For
purposes of this section 23.6, "Firm Power" means electric power
which is continuously made available from Port Angeles' operation of
generation or from its purchased power, which is able to meet its Total
Retail Load, except when such generation or power is curtailed or
restricted due to an Uncontrollable Force. Firm Power includes firm
energy and firm peaking energy or both.
BP A may request and Port Angeles shall provide within 30 days of
such request, additional information on Port Angeles' sales and
dispositions of non-federal resources ifBPA has information that Port
Angeles may have made such an export and not notified BP A. BP A
may request and Port Angeles shall provide within 30 days of such
request, information on the planned use of any or all of Port Angeles
Generating and Contract Resources.
During any Purchase Period that Port Angeles has no purchase
obligation for Firm Requirements Power under section 3, Port Angeles
shall have no obligation to notify BP A of its exports under this section;
provided, however, Port Angeles shall provide notification of all
applicable exports in Purchase Periods when it has a purchase
obligation.
23.6.2 Port Angeles shall be responsible for monitoring any Firm Power from
Generating Resources and Contract Resources it sells in the Region to
ensure such Firm Power is planned to be used to serve firm consumer
load in the Region.
23.6.3 If Port Angeles fails to report to BPA in accordance with
section 23.6.1, above, any of its planned exports for sale outside the
Region of Firm Power from a Generating Resource or a Contract
Resource that has been used to serve firm consumer load in the
Region, and BPA makes a finding that an export which was not
reported was made, BPA shall decrement the amount of its Firm
Requirements Power sold under this Agreement by the amount of the
export that was not reported and by any continuing export amount.
Decrements under the preceding sentence shall be first to power that
would otherwise be provided at Tier 1 Rates. When applicable, such
decrements shall be identified in section 3.2 of Exhibit A.
23.6.4 For purposes of this section 23.6, an export for sale outside the Region
means a contract for the sale or disposition of Firm Power from a
Generating Resource or a Contract Resource during its term that has
09PB-13093, Port Angeles
50
been used to serve firm consumer load in the Region, which contract
will be performed in a manner that such output is no longer used or
not planned to be used solely to serve firm consumer load in the
Region. Delivery of Firm Power outside the Region under a seasonal
exchange agreement that is made consistent with BPA's 5(b)/9(c)
Policy will not be considered an export. Firm Power from a
Generating Resource or a Contract Resource used to serve firm
consumer load in the Region means the firm generating or load
carrying capability of a Generating Resource or a Contract Resource
as established under PNCA resource planning criteria, or other
resource planning criteria generally used for such purposes within the
Region.
23.7 BPA Appropriations Refinancing
The Parties agree that the provisions of section 3201(i) of the Bonneville
Power Administration Refinancing section of the Omnibus Consolidated
Rescissions and Appropriations Act of 1996 (BPA Refinancing Act),
P.L. 104-134, 110 Stat. 1321, 350, as stated in the United States Code on the
Effective Date, are incorporated by reference and are a material term of this
Agreement.
24. STANDARD PROVISIONS
24.1 Amendments
Except where this Agreement explicitly allows for one Party to unilaterally
amend a provision or exhibit, no amendment of this Agreement shall be of
any force or effect unless set forth in writing and signed by authorized
representatives of each Party.
24.2 Entire Agreement and Order of Precedence
This Agreement, including documents expressly incorporated by reference,
constitutes the entire agreement between the Parties with respect to the
subject matter of this Agreement. It supersedes all previous
communications, representations, or contracts, either written or oral, which
purport to describe or embody the subject matter of this Agreement. The
body of this Agreement shall prevail over the exhibits to this Agreement in
the event of a conflict.
24.3 Assignment
This Agreement is binding on any successors and assigns of the Parties.
Neither Party may otherwise transfer or assign this Agreement, in whole or
in part, without the other Party's written consent. Such consent shall not be
unreasonably withheld. Without limiting the foregoing, BPA's refusal to
consent to assignment shall not be considered unreasonable if, in BP A's sole
discretion: (1) the sale of power by BPA to the assignee would violate any
applicable statute, or (2) such sale might adversely affect the tax-exempt
status of bonds issued as part of an issue that finances or refinances the
Columbia Generating Station or that such sale might limit the ability to issue
future tax-exempt bonds to finance or refinance the Columbia Generating
09PB-13093, Port Angeles
51
Station. Port Angeles may not transfer or assign this Agreement to any of its
retail consumers.
24.4 No Third-Party Beneficiaries
This Agreement is made and entered into for the sole benefit of the Parties,
and the Parties intend that no other person or entity shall be a direct or
indirect beneficiary of this Agreement.
24.5 Waivers
No waiver of any provision or breach of this Agreement shall be effective
unless such waiver is in writing and signed by the waiving Party, and any
such waiver shall not lJe deemed a waiver of any other provision of this
Agreement or of any other breach of this Agreement.
24.6 BPA Policies
Any reference in this Agreement to BPA policies, including any revisions,
does not constitute agreement of Port Angeles to such policy by execution of
this Agreement, nor shall it be construed to be a waiver of the right of Port
Angeles to seek judicial review of any such policy.
24.7 Rate Covenant and Payment Assurance
Port Angeles agrees that it shall establish, maintain and collect rates or
charges sufficient to assure recovery of its costs for power and energy and
other services, facilities and commodities sold, furnished or supplied by it
through any of its electric utility properties. BP A may require additional
forms of payment assurance if: (1) BPA determines that such rates and
charges may not be adequate to provide revenues sufficient to enable Port
Angeles to make the payments required under this Agreement, or (2) BP A
identifies in a letter to Port Angeles that BP A has other reasonable grounds
to conclude that Port Angeles may not be able to make the payments required
under this Agreement. If Port Angeles does not provide payment assurance
satisfactory to BP A, then BP A may terminate this Agreement. Written
notices sent under this section must comply with section 20.
25. TERMINATION
25.1 BPA's Right to Terminate
BP A may terminate this Agreement if:
(1) Port Angeles fails to make payment as required by section 16.4, or
(2) Port Angeles fails to provide payment assurance satisfactory to BP A
as required by section 24.7.
Such termination is without prejudice to any other remedies available to BPA
under law.
09PB-13093, Port Angeles
52
25.2 Customer's Right to Terminate
Port Angeles may provide written notice to terminate this Agreement not
later than 60 days after: (1) a Final FERC Order is issued declining to
approve the Tiered Rate Methodology (ifBPA seeks FERC's confirmation and
approval of it), (2) FERC issues a final declaratory order finding that the
TRM does not meet cost recovery standards, or (3) FERC issues a Final
FERC Order that determines rates established consistent with the TRM
cannot be approved because the TRM precludes the establishment of rates
consistent with cost recovery. The notice shall include a date of termination
not later than 90 days after the date of such notice. For purposes of this
section 25.2, "Final FERC Order" means a dispositive order by FERC on the
merits, and does not include any interim order. A dispositive order on the
merits is, for purposes of this section, final when issued and there is no need
to await a FERC order on rehearing before the decision is considered final.
26. SIGNATURES
The signatories represent that they are authorized to enter into this Agreement on
behalf of the Party for which they sign.
CITY OF PORT ANGELES
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
By ~/~
Name Gary Braun
By ~I<~
Name Shannon K. Greene
Title Mayor
Title Account Executive
Date -LJ .. .:L I - tJ8
Date ~{cV'Vtb(/r 2, ~
(PSW-S: \PM\ CUST_SKG\ PORT ANGELES \PSC_2009_PF _Regional Dialogue \Pa_13093_20081117_Contact_Fianal.doc) 11/17/08
Appro1d as to Fonn~'
/" I <"? /'/X
1/' / ~ ,- ?-- ~?--
V((.// ...-' ~
Will lam E. Bloor, City Attorney
09PB-13093, Port Angeles
53
Exhibit A
NET REQUIREMENTS AND RESOURCES
1. NET REQUIREMENTS
Port Angeles's Net Requirement equals its Total Retail Load minus Port Angeles's
Dedicated Resources determined pursuant to section 3.3 of the body of this
Agreement and listed in sections 2, 3, and 4 of this exhibit. The Parties shall not
add or remove resource amounts to change Port Angeles's purchase obligations from
BPA under section 3.1 of the body of this Agreement except in accordance with
sections 3.5 and 10 of the body of this Agreement.
2. LIST OF SPECIFIED RESOURCES
2.1 Generating Resources
Port Angeles does not have any Generating Resources that are Specified
Resources at this time.
2.2 Contract Resources
Port Angeles does not have any Contract Resources that are Specified
Resources at this time.
2.3 Small Non-Dispatchable Resources
All of Port Angeles's Small Non-Dispatchable Resources are listed below. If
the aggregate nameplate capability of Small Non-Dispatchable Resources
that are also New Resources exceeds one megawatt, then BPA shall consider
the impacts of the aggregate shape of such New Resources and may require
the application of DFS to account for the impact of the aggregate shape on
Port Angeles's load.
(1) Morse Creek
(A)
Special Provisions
Morse Creek is a uniquely situated small Specified Resource
that is not connected directly to Port Angeles's distribution
system, and thus does not precisely fit the definition of a Small
Non-Dispatchable Resource provided in this Agreement.
Nonetheless, because of its small size (less than three
megawatts nameplate capability) and its historical use and
billing treatment, BP A shall treat Morse Creek as a Small
Non-Dispatchable Resource and, accordingly, is included in
section 2.3 of this Exhibit A.
(B)
Resource Profile
Date Resource Date of Percent of Nameplate
Fuel Type Dedicated to Resource Resource Used to Capability
Load Removal Serve Load (MW)
Hydro 1985 N/A 100% 0.465
09PB-13093, Port Angeles
lof9
Statutory DFS or If PNCA, PNCA
Status Resource Status SCS? Dispatchable? PNCA? Uodates?
5blA I 5blB Existing I New Yes I No Yes I No Yes I No Yes I No
I X X I I I X I X I
Note: Fill in the table above with "X"s.
(C) Specified Resource Amounts
SI ecified Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jut Aug Sep annual
aMW
Fiscal Year 2012
Total (MWh) 0 1 213 164 15 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 119 88 89 40 29 62 0 0 0 0 0.160
LLH (MWh) 0 0 94 76 66 29 23 49 0 0 0 0 0.153
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2013
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2014
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2015
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 119 92 85 38 30 60 0 0 0 0 0.157
LLH (MWh) 0 1 94 72 64 30 22 51 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2016
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 89 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 1 94 76 66 29 22 51 0 0 0 0 0.155
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2017
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 119 88 85 40 29 62 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 64 29 23 49 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 01 0.1 0.2 0.0 0.0 0.0 O!O N/A
Fiscal Year 2018
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 114 92 85 40 29 62 0 0 0 0 0.160
LLH (MWh) 0 0 98 72 64 29 23 49 0 0 0 0 0.153
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2019
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
Ill..H (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 00 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
2of9
Specified Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2020
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 89 38 30 60 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 66 30 22 51 0 0 0 0 0.158
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2021
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 1 94 76 64 29 22 51 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.10 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2022
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 64 29 22 51 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2023
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 29 62 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 64 29 23 49 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2024
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 89 38 30 62 0 0 0 0 0.157
LLH (MWh) 0 0 98 72 66 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2025
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2026
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 92 85 38 30 60 0 0 0 0 0.157
LLH (MWh) 0 1 94 72 64 30 22 51 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2027
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 1 94 76 64 29 22 51 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2028
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 89 40 29 62 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 66 29 23 49 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Notes: Fill in the table above with megawatt-hours rounded to whole megawatt-hours, with megawatts rounded to
one decimal place. and annual Average Megawatts rounded to three decimal places.
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
30f9
3. UNSPECIFIED RESOURCE AMOUNTS
3.1 Unspecified Resource Amounts Used to Serve Total Retail Load
3.1.1 Shape of Unspecified Resource Amounts
Port Angeles's Unspecified Resource Amounts shall be calculated
using the selected monthly and Diurnal shapes listed below. BPA
shall update the table below consistent with section 3.4.2 of the body
of this Agreement.
Shape of Unspecified Resource Amounts
Monthly Shape Choice Diurnal Shape Choice
Total Retail Flat Annual Ill..H Diurnal Flat Within-
Purchase Period Load Monthly Shape Shape Month Shape
Shape
FY 2012 - FY 2014 X X
FY 2015 - FY 2019 X X
FY 2020 - FY 2024 X X
FY 2025 - FY 2028 X X
3.1.2 Unspecified Resource Amounts
Port Angeles does not have any Unspecified Resource Amounts at this
time.
3.2 Unspecified Resource Amounts for 9(c) Export Decrements
BPA shall insert a table below pursuant to section 3.5.3 of the body of this
Agreement.
4. DEDICATED RESOURCE AMOUNTS FOR AN NLSL
Port Angeles does not have any Dedicated Resource amounts serving an NLSL at
this time, in accordance with section 3.5.7 ofthe body ofthis Agreement.
5. TOTAL DEDICATED RESOURCE AMOUNTS
The amounts in the table below equal the sum of all resource amounts used to serve
Port Angeles' Total Retail Load listed above in sections 2, 3, and 4.
Dedicated Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2012
Total (MWh) 0 1 213 164 15 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 89 40 29 62 0 0 0 0 0.160
LLH (MWh) 0 0 94 76 66 29 23 49 0 0 0 '\ 0 0.153
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2013
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
4of9
Dedicated Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2014
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2015
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 92 85 38 30 60 0 0 0 0 0.157
LLH (MWh) 0 1 94 72 64 30 22 51 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2016
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 89 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 1 94 76 66 29 22 51 0 0 0 0 0.155
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2017
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 29 62 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 64 29 23 49 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2018
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 85 40 29 62 0 0 0 0 0.160
LLH (MWh) 0 0 98 72 64 29 23 49 0 0 0 0 0.153
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2019
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2020
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 89 38 30 60 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 66 30 22 51 0 0 0 0 0.158
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2021
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 1 94 76 64 29 22 51 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.10 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2022
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 64 29 22 51 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2023
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 29 62 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 64 29 23 49 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
50f9
Dedicated Resource Amounts
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep annual
aMW
Fiscal Year 2024
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 89 38 30 62 0 0 0 0 0.157
LLH (MWh) 0 0 98 72 66 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2025
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 114 92 85 38 30 62 0 0 0 0 0.156
LLH (MWh) 0 0 98 72 64 30 22 49 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2026
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 92 85 38 30 60 0 0 0 0 0.157
LLH (MWh) 0 1 94 72 64 30 22 51 0 0 0 0 0.157
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2027
Total (MWh) 0 1 213 164 149 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 85 40 30 60 0 0 0 0 0.159
LLH (MWh) 0 1 94 76 64 29 22 51 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Fiscal Year 2028
Total (MWh) 0 1 213 164 155 68 52 111 0 0 0 0 0.157
HLH (MWh) 0 1 119 88 89 40 29 62 0 0 0 0 0.159
LLH (MWh) 0 0 94 76 66 29 23 49 0 0 0 0 0.154
Peak (MW) 0.0 0.0 0.4 0.3 0.3 0.1 0.1 0.2 0.0 0.0 0.0 0.0 N/A
Notes: Fill in the table above with megawatt-hours rounded to whole megawatt-hours, with megawatts rounded to
one decimal place, and annual Average Megawatts rounded to three decimal places.
6. LIST OF RESOURCES NOT USED TO SERVE TOTAL RETAIL LOAD
Pursuant to section 17 of the body of this Agreement, Port Angeles does not own any
Generating Resources or Contract Resources that are (1) not Specified Resources
listed in section 2 of Exhibit A, and (2) greater than 200 kilowatts of nameplate
capability.
7. LIST OF CONSUMER-OWNED RESOURCES
7.1 Consumer-Owned Resources Serving Onsite Consumer Load
Pursuant to section 3.6 of the body of this Agreement, Port Angeles does not
have any Consumer-Owned Resources serving Onsite Consumer Load at this
time.
7.2 Consumer-Owned Resources Serving Load Other than On site
Consumer Load
Pursuant to section 3.6 of the body of this Agreement, Port Angeles does not
have any Consumer-Owned Resources serving load other than On site
Consumer Load at this time.
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
6of9
7.3 Consumer-Owned Resources Serving Both Onsite Consumer Load
and Load Other than Onsite Consumer Load
Pursuant to section 3.6 of the body ofthis Agreement, Port Angeles does not
have any Consumer-Owned Resources serving both Onsite Consumer Load
and load other than Onsite Consumer Load at this time.
7.4 Consumer-Owned Resources Serving an NLSL
Pursuant to section 23.3.7 of the body of this Agreement, Port Angeles does
not have any Consumer-Owned Resources serving an NLSL at this time.
8. TABLES FOR ALLOWABLE DEDICATED RESOURCE SHAPES
8.1 Total Retail Load Monthly Shape
By March 31 immediately following each of the Fiscal Years 2010, 2015, and
2020, BPA shall fill in the table below with Port Angeles's Total Retail Load
Monthly Shape, in accordance with section 3.4.2 of the body of this
Agreement. Port Angeles's Total Retail Load Monthly Shape shall be
calculated by dividing Port Angeles's Total Retail Load (in megawatt-hours)
in each month of Fiscal Years 2010, 2015, and 2020 by the Fiscal Year total of
Port Angeles's Total Retail Load (in megawatt-hours). BPA shall weather-
normalize Port Angeles's Total Retail Load data, prior to calculating the
Total Retail Load Monthly Shape, using the same weather-normalization
procedures set forth in section 4.1.1 of the TRM.
Total Retail Load Monthl Shane(%)
Oct Nov Dee Jan Feb Mar Anr May Jun Jul Aug Sen Total
FY 2010 100.0
FY 2015 100.0
FY 2020 100.0
Note: Fill in the table above with percents rounded to the nearest one decimal place
8.2 HLH Diurnal Shape
8.2.1 Specified Resources
If Port Angeles elects the HLH Diurnal Shape for its Specified
Resources, Port Angeles shall fill in a table with monthly LLH and
HLH amounts for each year of the upcoming Purchase Period for each
Specified Resource. The monthly LLH and HLH distributions shall be
the same across all years of a Purchase Period. Port Angeles shall
submit the tables to BPA when Port Angeles makes its reshaping
elections. BPA shall update the appropriate Dedicated Resource
amounts pursuant to Port Angeles's submitted elections and
consistent with section 3.4.2 of the body of this Agreement.
8.2.2 Unspecified Resource Amounts
If Port Angeles elects the HLH Diurnal Shape for its Unspecified
Resource Amounts, then Port Angeles shall submit to BPA in writing
its elected ratios of megawatt-hours per hour in HLH to
megawatt-hours per hour in LLH by the Notice Deadline. Port
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
70f9
Angeles shall submit to BP A twelve monthly ratios and such monthly
ratios shall apply for all years of the corresponding Purchase Period.
BP A shall update the table below pursuant to Port Angeles's
submitted elections and consistent with section 3.4.2 ofthe body of
this Agreement. BPA shall calculate Port Angeles's Unspecified
Resource Amounts using the ratios in the table below.
Ill..H Diurnal Shape for Unspecified Resource Amounts
Ill..H to LLH Ratios (Ill..H:LLH)
Purchase Period Oct Nov Dec Jan Feb Mar Apr May Jun Jul AuI!' Sep
FY 2012 - FY 2014
FY 2015 - FY 2019
FY 2020 - FY 2024
FY 2025 - FY 2028
9. SUPER PEAK AMOUNTS
Port Angeles may reshape some or all of its HLH Dedicated Resource amounts for its
(1) Specified Resources listed in section 2 of this exhibit, except for any Small Non-
Dispatchable Resources and any Specified Resources Port Angeles is supporting
with DFS or SCS from BPA; and (2) Unspecified Resource Amounts listed in
section 3.1.2 of this exhibit; into the Super Peak Period to receive a Super Peak
Credit. BPA shall update the table below consistent with section 3.4.4 of the body of
this Agreement.
Super Peak Amounts (MW)
Fiscal Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023 ,
2024
2025
2026
2027
2028
Note: Fill in the table above with megawatts rounded to the nearest three decimal places.
10. REVISIONS
BPA shall revise this exhibit to reflect (1) Port Angeles's elections regarding the
application and use of all resources owned by Port Angeles and Port Angeles's retail
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
8of9
consumers and (2) BP A's determinations relevant to this exhibit and made in
accordance with this Agreement
(PSW-S: \PM\ CUST_SKG\ PORT ANGELES \PSC_2009_PF _Regional Dialogue \Pa_13093_20081117_Contact]ianal.doc) I1J17/08
09PB-13093, Port Angeles
Exhibit A, Net Requirements and Resources
9of9
Exhibit B
mGH WATER MARKS AND CONTRACT DEMAND QUANTITIES
1. CONTRACT mGH WATER MARK (CHWM)
1.1 CHWM Amount
By September 15, 2011, BPA shall fill in the table below with Port Angeles'
CHWM. Once established, Port Angeles' CHWM shall not change for the
term of this Agreement except as allowed in section 1.2 of this exhibit.
CHWM (annual aMW): I
Note: BPA shall round the number in the table above
to three decimal olaces.
1.2 Changes to CHWM
If a change is made to Port Angeles' CHWM pursuant to this section 1.2, then
BP A shall determine and notify Port Angeles of the date such change will be
effective as follows:
1.2.1 If a load included in Port Angeles' Measured 2010 Load, as defined in
the TRM, is later found to have been an NLSL in FY 2010, then BPA
shall reduce Port Angeles' CHWM by the amount of the NLSL. BPA
shall notify Port Angeles 30 days prior to when the updated CHWM
will become effective. Port Angeles shall be liable for payment of any
charges to adjust for the ineligible Tier 1 PF rate purchases dating
back to October 1, 2011.
1.2.2 If Port Angeles acquires an Annexed Load from a utility that has a
CHWM, then BP A shall increase Port Angeles' CHWM by adding part
of the other utility's CHWM to Port Angeles' CHWM. The CHWM
increase shall be effective on the date that Port Angeles begins service
to the Annexed Load. BP A shall establish the amount of the CHWM
addition as follows:
(1)
If Port Angeles and the other utility involved in the annexation
agree on the amount of the CHWM addition, then BPA shall
adopt that amount if BP A determines such amount is
reasonable.
(2)
If Port Angeles and the other utility cannot agree on the
amount of the CHWM addition, or if BP A determines the
amount agreed to in 1.2.2(1) of this exhibit is unreasonable,
then the amount of the CHWM addition shall equal the
calculated amount below; provided however, BPA may adjust
the calculated amount below to reflect the division of Dedicated
Resources between the utilities and other pertinent
information advanced by Port Angeles and the other utility:
09PB-13093, Port Angeles
lof3
Annexed Load minus annexed NLSLs, if any
Other utility's pre-annexation Total Retail
Load minus total NLSLs, if any
x
Other utility's pre-
annexation CHWM
1.2.3 If another utility with a CHWM annexes load of Port Angeles, then
BPA shall reduce Port Angeles' CHWM by adding part of Port
Angeles' CHWM to the other utility's CHWM. The CHWM reduction
shall be effective on the date that the other utility begins service to
the Annexed Load. BPA shall establish the amount of the CHWM
reduction as follows:
(1) If Port Angeles and the other utility involved in the annexation
agree on the amount of the CHWM reduction, then BPA shall
adopt that amount if BP A determines such amount is
reasonable.
(2) If Port Angeles and the other utility cannot agree on the
amount of the CHWM reduction, or ifBPA determines the
amount agreed to in 1.2.3(1) of this exhibit is unreasonable,
then the amount of the CHWM reduction shall equal the
calculated amount below; provided however, BPA may adjust
the calculated amount below to reflect the division of Dedicated
Resources between the utilities and other pertinent
information advanced by Port Angeles and the other utility:
Annexed Load minus annexed NLSLs, if any
Port Angeles' pre-annexation Total Retail
Load minus total NLSLs, if any
x
Port Angeles' pre-
annexation CHWM
1.2.4 BP A may change Port Angeles' CHWM if BP A's Administrator
determines that BPA is required by court order about an Annexed
Load to make such changes. BP A shall determine the effective date of
such a change and shall update this exhibit with the changed CHWM.
2. CONTRACT DEMAND QUANTITIES (CDQs)
2.1 CDQ Amounts
By September 15, 2011, BPA shall fill in the table below with Port Angeles'
monthly CDQs. Calculation of such CDQs is established in the TRM. Port
Angeles' monthly CDQs shall not change for the term of this Agreement
except as allowed below.
kW
Note: BPA shall round the amounts in the table above to the nearest whole kilowatt.
09PB-13093, Port Angeles
Exhibit B, High Water Marks and Contract Demand Quantities
2of3
2.2 Changes Due to Annexation
The Parties shall determine when changes to Port Angeles' CDQs, as allowed
below, will become effective.
2.2.1 If Port Angeles acquires an Annexed Load from a utility that has
monthly CDQs, then BP A shall increase Port Angeles' CDQ for each
month by adding the portion of the other utility's monthly CDQ that is
attributable to such Annexed Load. For each month, the sum of Port
Angeles' and the other utility's post-annexation CDQs shall not exceed
the sum of the pre-annexation CDQs for such utilities. BP A shall
establish the amount of the CDQ additions as follows:
(1) If Port Angeles and the other utility involved in the annexation
agree on the amounts of the CDQ additions, then BP A shall
adopt those amounts.
(2) If Port Angeles and the other utility cannot agree on the
amounts of the CDQ additions, then BP A shall determine the
amounts based on the monthly load factors of the Annexed
Load.
2.2.2 If another utility with monthly CDQs annexes load of Port Angeles,
then BPA shall reduce Port Angeles' CDQ for each month by removing
the portion of Port Angeles' monthly CDQ that is attributable to the
load that was annexed. For each month, the sum of Port Angeles' and
the other utility's post-annexation CDQs shall not exceed the sum of
the pre-annexation CDQs for such utilities. BP A shall establish the
amount of the CDQ reductions as follows:
(1) If Port Angeles and the other utility involved in the annexation
agree on the amounts of the CDQ reductions, then BPA shall
adopt those amounts.
(2) If Port Angeles and the other utility cannot agree on the
amounts ofthe CDQ reductions, then BPA shall determine the
amounts based on the monthly load factors of the Annexed
Load.
3. REVISIONS
BP A may revise this exhibit to the extent allowed in sections 1 and 2 of this exhibit.
All other changes shall be made by mutual agreement.
cPSW-S' \PM\CUST_SKG\PORT ANGELES \PSC_2009_PF _Regional Dialogue \Pa_13093_20081117_Contact]ianal.doc) 11/17/08
09PB-13093, Port Angeles
Exhibit B, High Water Marks and Contract Demand Quantities
3of3
Exhibit C
PURCHASE OBLIGATIONS
1. FIRM REQUIREMENTS POWER AT TIER 1 RATES
The portion of Port Angeles' purchase obligation that is priced at Tier 1 Rates is
established in section 8.1(1) of the body of this Agreement.
2. FIRM REQUIREMENTS POWER AT TIER 2 RATES
2.1 Notice to Purchase Zero Amounts at Tier 2 Rates
If Port Angeles elects not to purchase Firm Requirements Power at Tier 2
Rates for a Purchase Period, then by March 31 immediately following the
corresponding Notice Deadline, BPA shall update this exhibit to indicate such
election by adding an ''X'' to the applicable cell in the following table. Such
election means that for the Purchase Period specified below, Port Angeles
shall: (1) purchase zero amounts of Firm Requirements Power at Tier 2
Rates, and (2) serve all of its Above-RHWM Load that is greater than or
equal to 8,760 megawatt-hours with power other than Firm Requirements
Power. Port Angeles may serve its Above-RHWM Load that is less than
8,760 megawatt-hours with power other than Firm Requirements Power.
Zero Tier 2 Purchase Period
FY 2012 - FY 2014
FY 2015 - FY 2019
FY 2020 - FY 2024
FY 2025 - FY 2028
2.2 Tier 2 Load Growth Rate
2.2.1 First Election Opportunity
If Port Angeles elects by the first Notice Deadline (November 1, 2009)
to purchase Firm Requirements Power at Tier 2 Load Growth Rates
starting October 1, 2011, then in its election Port Angeles shall elect
one of the three Tier 2 Load Growth Rate options listed in section 2.2.3
of this exhibit. If Port Angeles elects Option 3, then Port Angeles
shall state the amounts to be listed in the table in section 2.2.3.3 of
this exhibit and Port Angeles' Tier 2 Short-Term Rate election
pursuant to section 2.4.1 of this exhibit. BP A shall amend this exhibit
by March 31,2010, to indicate Port Angeles' election by adding an "X"
to the "1st Notice Deadline" box next to the applicable option below. If
Port Angeles does not elect to purchase Firm Requirements Power at
Tier 2 Load Growth Rates by the first Notice Deadline, then Port
Angeles shall not have the right to purchase Firm Requirements
Power at Tier 2 Load Growth Rates during the first Purchase Period.
09PB-13093, Port Angeles
1 of 11
2.2.2 Second Election Opportunity
2.2.2.1 If Port Angeles does not elect to purchase Firm Requirements
Power at Tier 2 Load Growth Rates starting the first
Purchase Period, then Port Angeles may purchase Firm
Requirements Power at Tier 2 Load Growth Rates starting
October 1, 2014, provided:
2.2.2.2
2.2.2.3
2.2.2.4
(1) any elections of Tier 2 Rate alternatives or additions
of New Resources under this Agreement that extend
beyond the initial Purchase Period shall continue to
apply for their term, and
(2) the Tier 2 Load Growth Rate applicable under this
election may be different than the Tier 2 Load Growth
Rate that was available during the first Purchase
Period.
If Port Angeles elects by the second Notice Deadline
(September 30, 2011) to purchase Firm Requirements Power
at Tier 2 Load Growth Rates, then in its election Port Angeles
shall elect one of the three Tier 2 Load Growth Rate options
listed in section 2.2.3 of this exhibit. In such case, Port
Angeles shall purchase Firm Requirements Power at Tier 2
Load Growth Rates under such elected option starting
October 1, 2014.
If Port Angeles elects Option 3, described in section 2.2.3.3 of
this exhibit, then Port Angeles shall state the amounts to be
listed in the table in section 2.2.3.3 of this exhibit and Port
Angeles' Tier 2 Short-Term Rate election pursuant to
section 2.4.1 of this exhibit. If Port Angeles has prior
elections of rate alternatives or resource additions that
extend beyond the first Purchase Period, then Port Angeles
shall not have the right to elect Options 1 or 2 below. In such
case, the amounts listed in the table in section 2.2.3.3 of this
exhibit shall not be less than the sum of Port Angeles' prior
elections for each year.
BPA shall amend this exhibit by March 31, 2012, to indicate
Port Angeles' election by adding an "X" to the "2nd Notice
Deadline" box next to the applicable option below. If Port
Angeles does not elect to purchase Firm Requirements Power
at Tier 2 Load Growth Rates by the second Notice Deadline,
then Port Angeles shall not purchase Firm Requirements
Power at Tier 2 Load Growth Rates for the term of this
Agreement.
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
2 of 11
2.2.3 Tier 2 Load Growth Rate Options
D 2.2.3.1 Option 1- Full Tier 2 Load Growth Rate
D If Port Angeles elects this option, then Port Angeles shall
purchase Firm Requirements Power at Tier 2 Load Growth
Rates for all of Port Angeles' Above-RHWM Load.
1st Notice Deadline D 2.2.3.2 Option 2 - Shared Rate Plan
2nd Notice Deadline D
1 st Notice Deadline
2nd Notice Deadline
(1) Obligation
If Port Angeles elects this option, provided that BPA
determines Port Angeles qualifies under the limit for
the Shared Rate Plan as established in section 7 of the
TRM, then Port Angeles shall pay rates under the
Shared Rate Plan for Firm Requirements Power
purchased under this Agreement. If BP A determines
Port Angeles does not qualify under such limit, then
Port Angeles shall not have the right to elect this option
and Port Angeles shall purchase Firm Requirements
Power at Tier 2 Load Growth Rates under Option 1 as
established in section 2.2.3.1 of this exhibit. For the
second election opportunity stated in section 2.2.2 of
this exhibit, availability under the limit for the Shared
Rate Plan established in section 7 of the TRM shall
equal such limit minus the amounts used by other
customers who elected this Option 2 by the first Notice
Deadline.
1 st Notice Deadline
2nd Notice Deadline
(2) Terminating Participation
Port Angeles may terminate participation in the Shared
Rate Plan by providing BP A notice in writing by
March 31 of a Forecast Year. In such case, the change
shall be effective the next Rate Period. If Port Angeles
stops participation in the Shared Rate Plan, then Port
Angeles shall not have the right to resume
participation. Port Angeles shall continue to purchase
Firm Requirements Power priced at Tier 2 Load Growth
Rates for all of Port Angeles' Above-RHWM Load.
D 2.2.3.3 Option 3 - Partial Tier 2 Load Growth Rate
D If Port Angeles elects this option, then Port Angeles shall
purchase Firm Requirements Power at Tier 2 Load Growth
Rates for all of Port Angeles' Above-RHWM Load minus the
amounts stated in the table below that Port Angeles elects are
not subject to Tier 2 Load Growth Rates. Port Angeles shall
establish such amounts at the time Port Angeles elects this
option and such amounts shall not change for the term of this
Agreement. Port Angeles may serve such amounts with
Dedicated Resources or with Firm Requirements Power
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
3 of 11
purchased at other Tier 2 Rates. BPA shall update the table
below by March 31 immediately following Port Angeles'
election of this option.
Load Amounts Not Subject To Tier 2 Load Growth Rates (aMW)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020
Annual aMW
Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028
AnnualaMW
Note: Fill in the table above with annual Average Megawatts rounded to
three decimal places.
2.2.4 Modification to Tier 2 Load Growth Rate Election
2.2.4.1 Notice
Port Angeles shall have the right to stop purchasing Firm
Requirements Power at Tier 2 Load Growth Rates effective the
upcoming Rate Period, except for the amount established in
section 2.2.4.2 of this exhibit. If Port Angeles chooses to modify its
purchases at Tier 2 Load Growth Rates in this manner, then Port
Angeles shall notify BPA in writing by October 31 of a Rate Case
Year.
2.2.4.2 Continued Purchase Amount
For the remaining term of this Agreement, Port Angeles shall
continue to purchase at Tier 2 Load Growth Rates the amount of
Firm Requirements Power that Port Angeles purchased at Tier 2
Load Growth Rates the year before the modification described above
is effective.
2.2.4.3 Obligation to Apply Dedicated Resources
If Port Angeles provides notice to modify its purchases at Tier 2
Load Growth Rates under section 2.2.4.1 of this exhibit, then for the
remainder of the effective Purchase Period and all of the next
Purchase Period, Port Angeles shall apply Dedicated Resources to
serve all of its Above-RHWM Load that is in excess of its
commitment to purchase at Tier 2 Load Growth Rates pursuant to
2.2.4.2.
2.2.4.4 Charges to Modify Tier 2 Load Growth Rate Purchase
Port Angeles shall be liable for payment of any costs that apply as a
result of Port Angeles modifying its Tier 2 Load Growth Rate
purchase obligation under this section 2.2.4. Such costs shall be
those that BPA: (1) is obligated to pay and will not recover from
Port Angeles at Tier 2 Load Growth Rates as a result of the
modification, and (2) is unable to recover through other transactions.
BPA shall determine such costs, if any, during the 7(i) Process that
follows Port Angeles' notice. If BP A determines that Port Angeles
owes payment for such costs, then Port Angeles shall pay the entire
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
4 of 11
amount to BP A in no more than 24 equal monthly amounts starting
the first month of the upcoming Rate Period. In no event shall BP A
make payment to Port Angeles as a result of Port Angeles modifying
its Tier 2 Load Growth Rate purchase obligation under this
section 2.2.4.
2.2.4.5 Exhibit Update
By March 31 following Port Angeles' notice, BPA shall indicate Port
Angeles' election to modify its Tier 2 Load Growth Rate purchase by
filling in the table below. As established in section 2.2.4.2 of this
exhibit, Port Angeles shall continue to purchase the following
amounts of Firm Requirements Power at Tier 2 Load Growth Rates:
Continuine- Tier 2 Load Growth Rates Purchase Oblie-ation
Fiscal Year 2012 2013 2014 2015 2016
aMW
Fiscal Year 2017 2018 2019 2020 2021
aMW
Fiscal Year 2022 2023 2024 2025 2026
aMW
Fiscal Year 2027 2028
aMW
Note: Fill in the table above with annual Average Megawatts, rounded
to three decimal places, for each year that follows Port Angeles'
modification becinnine- with the effective year of modification
2.3 Tier 2 Vintage Rates
If Port Angeles elects Option 1 or 2 in section 2.2.3 of this exhibit, then this
section shall not apply. Otherwise:
2.3.1 Election Process
2.3.1.1
2.3.1.2
Right to Convert
Subject to the amounts of power BP A makes available at one
or more Tier 2 Vintage Rates, Port Angeles shall have the
right to convert some or all of the amounts of Firm
Requirements Power it has elected to purchase at Tier 2
Short-Term Rates, as stated in section 2.4 of this exhibit, to
an equal purchase amount at Tier 2 Vintage Rates.
Statement of Intent
If Port Angeles elects to purchase Firm Requirements Power
from BPA at Tier 2 Vintage Rates, then Port Angeles shall
sign a Statement of Intent offered by BPA. "Statement of
Intent" means a statement prepared by BP A and signed by
Port Angeles that describes the approach and cost structure
that will be used for a specific Tier 2 Cost Pool. If BP A
establishes a Tier 2 Cost Pool for a Tier 2 Vintage Rate
consistent with the Statement of Intent, then Port Angeles
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
5 of 11
agrees to have the portion of its Tier 2 Rate power purchase
specified in the Statement of Intent priced at that rate. If
BP A is unable to establish the Tier 2 Cost Pool for the specific
Tier 2 Vintage Rate, then Port Angeles agrees to purchase
such amount of Firm Requirements Power at Tier 2 Short-
Term Rates, except as stated in section 2.3.1.5 of this exhibit.
2.3.1.3 Insufficient Availability
The Statement of Intent shall include procedures to allocate
between competing applications for a specific Tier 2 Cost Pool
if requests exceed amounts available.
2.3.1.4 Conversion Costs
Upon establishment of a Tier 2 Vintage Rate for which Port
Angeles signed a Statement of Intent, Port Angeles shall be
liable for payment of any outstanding costs under Tier 2
Short-Term Rates that apply to Port Angeles. Such costs
shall be those that BPA: (1) is obligated to pay and will not
recover from Port Angeles under Tier 2 Short-Term Rates as
a result of the conversion, and (2) is unable to recover
through other transactions. BPA shall determine such costs,
if any, in the first 7(i) Process that establishes the applicable
Tier 2 Vintage Rate. In no event shall BP A make payment to
Port Angeles as a result of Port Angeles' conversion of
purchase amounts at Tier 2 Short-Term Rates to purchase
amounts at Tier 2 Vintage Rates.
2.3.1.5 Additional Offerings
In addition to the right to convert to Tier 2 Vintage Rates
established in section 2.3.1.1 of this exhibit, Port Angeles
may have the opportunity to purchase Firm Requirements
Power at Tier 2 Vintage Rates regardless of whether Port
Angeles is purchasing at Tier 2 Short-Term Rates if:
(1) BP A determines, in its sole discretion, that all
requests for service at Tier 2 Vintage Rates by
purchasers of Firm Requirements Power at Tier 2
Short-Term Rates are able to be satisfied, and
(2) BP A determines, in its sole discretion, to offer Port
Angeles a Statement of Intent that would provide Port
Angeles the opportunity to purchase Firm
Requirements at Tier 2 Vintage Rates.
If Port Angeles signs a Statement of Intent offered by BP A
pursuant to this section 2.3.1.5, and ifBPA is unable to
establish the Tier 2 Cost Pool for the applicable Tier 2
Vintage Rate, then Port Angeles' current elections for service
to its Above-RHWM Load shall continue to apply.
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
6 of 11
Except as provided in this section 2.3.1, any election by Port
Angeles to purchase Firm Requirements Power at Tier 2
Vintage Rates shall not relieve Port Angeles of any obligation
to purchase Firm Requirements Power at another Tier 2
Rate.
2.3.1.6 Exhibit Updates
By September 15 immediately following the establishment of
a Tier 2 Vintage Rate for which Port Angeles signed a
Statement of Intent, BPA shall amend this exhibit to show
Port Angeles' Tier 2 Vintage Rate purchases and remove Port
Angeles' Tier 2 Short-Term Rate purchases by the amounts
purchased at the Tier 2 Vintage Rate, if Port Angeles is
converting to the Tier 2 Vintage Rate from the Tier 2 Short-
Term Rate. BPA shall insert applicable tables, terms, and
conditions for each Tier 2 Vintage Rate in section 2.3.2 ofthis
exhibit.
2.3.2 Vintage Rate Elections
Port Angeles has no Tier 2 Vintage Rate elections at this time.
2.4 Tier 2 Short-Term Rate
If Port Angeles elects Option 1 or 2 in section 2.2.3 of this exhibit, then this
section shall not apply. Otherwise:
2.4.1 Short-Term Rate Purchases
Unless Port Angeles elects, in section 2.1 of this exhibit, not to
purchase Firm Requirements Power at Tier 2 Rates for a given
Purchase Period, by each Notice Deadline Port Angeles shall elect in
writing either alternative (A) or (B) below for the duration of the
corresponding Purchase Period. If Port Angeles elects alternative (A)
and elects to apply Dedicated Resources to serve its Above-RHWM
Load, then Port Angeles shall state the amounts to be listed in the
table in section 2.4.1.1(2) of this exhibit. If Port Angeles elects
alternative (B), then Port Angeles shall state the amounts to be listed
in the table in section 2.4.1.3 of this exhibit. By March 31
immediately following each Notice Deadline, BPA shall update the
tables in this section 2.4.1 to show Port Angeles' Tier 2 Short-Term
Rate election for the corresponding Purchase Period.
2.4.1.1
Alternative A - Customer Planned Load Not Otherwise
Served
If Port Angeles elects this alternative, then Port Angeles
shall purchase Firm Requirements Power priced at Tier 2
Short-Term Rates to serve all of Port Angeles' Above-RHWM
Load that Port Angeles has not otherwise agreed to serve
with:
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
7 of 11
2.4.1.2
2.4.1.3
(1) Firm Requirements Power purchased at other Tier 2
Rates, or
(2) the amounts of Dedicated Resources, stated in the
table below, that Port Angeles shall apply during the
Purchase Period to serve its Above-RHWM Load. If
Port Angeles purchases power at Tier 2 Load Growth
Rates, then these Dedicated Resource amounts shall
not exceed the amounts stated in the table in
section 2.2.3.3 ofthis exhibit.
Purchase Period non-Federal Resource Elections
Fiscal Year 2012 2013 2014 2015 2016
Election
Fiscal Year 2017 2018 2019 2020 2021
Election
Fiscal Year 2022 2023 2024 2025 2026
Election
Fiscal Year 2027 2028
Election
Note: Insert amounts in Average Megawatts rounded to
three decimal places for each year of the applicable Purchase
Period.
Alternative B - Limited Amounts
If Port Angeles elects this alternative, then Port Angeles
shall purchase Firm Requirements Power at Tier 2 Short-
Term Rates to serve Port Angeles' Above-RHWM Load that
Port Angeles has not otherwise agreed to serve with Firm
Requirements Power purchased at other Tier 2 Rates;
provided however, that amounts purchased at Tier 2 Short-
Term Rates shall not exceed the amounts (including zero
amounts) stated in the table in section 2.4.1.3 of this exhibit.
Port Angeles agrees to serve any of its remaining Above-
RHWM Load with power other than Firm Requirements
Power.
Tier 2 Short-Term Rate Elections
If Port Angeles elects alternative (A) above, then BP A shall
indicate that election by adding an "X" to the table below for
each year of the applicable Purchase Period. If Port Angeles
elects alternative (B) above, then BPA shall indicate that
election by adding amounts (in Average Megawatts rounded
to three decimal places) to the table below for each year of the
applicable Purchase Period.
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
8 of 11
Tier 2 Short-Term Rate Table
Fiscal Year 2012 2013 2014 2015 2016
Election
Fiscal Year 2017 2018 ~ 2019 2020 2021
Election
Fiscal Year 2022 2023 2024 2025 2026
Election
Fiscal Year 2027 2028
Election
2.4.2 Right to Reduce Tier 2 Short-Term Rate Purchase Amounts
2.4.2.1 Notice
If Port Angeles notifies BP A in writing by October 31 of a
Rate Case Year, then Port Angeles may reduce, in equal
amounts for all hours of the year, some or all of the amounts
of Firm Requirements Power that Port Angeles is obligated to
purchase at Tier 2 Short-Term Rates. The reduction may
take effect in either year of the upcoming Rate Period and
shall be effective for the remaining duration of the applicable
Purchase Period(s). In its written notice, Port Angeles shall
state the amount of the reduction and the date the reduction
shall take effect. Port Angeles shall replace all reduced
Tier 2 Short-Term Rate purchase amounts with amounts of
Dedicated Resources applied pursuant to section 3.3 of the
body of this Agreement.
2.4.2.2 Charges to Reduce Purchase Amounts
Port Angeles shall be liable for payment of any costs that
apply as a result of Port Angeles reducing, under
section 2.4.2.1 of this exhibit, the amounts of Firm
\
Requirements Power that Port Angeles is obligated to
purchase at Tier 2 Short-Term Rates. Such costs shall be
those that BPA: (1) is obligated to pay and will not recover
from Port Angeles under Tier 2 Short-Term Rates as a result
of the reduction, and (2) is unable to recover through other
transactions. BPA shall determine such costs, if any, during
the 7(i) Process that follows Port Angeles' notice. If BP A
determines that Port Angeles owes payment for such costs,
then Port Angeles shall pay the entire amount to BP A in no
more than 24 equal monthly amounts starting the first
month of the upcoming Rate Period. In no event shall BPA
make payment to Port Angeles as a result of Port Angeles
reducing the amounts of Firm Requirements Power that Port
Angeles is obligated to purchase at Tier 2 Short-Term Rates.
2.4.2.3 Exhibit Updates
By March 31 following Port Angeles' notice, BP A shall revise
this exhibit and Exhibit A to show Port Angeles' reduced
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
9 of 11
Tier 2 Short-Term Rate purchase amounts and Port Angeles'
Dedicated Resource additions.
2.5 Amounts of Power to be Billed at Tier 2 Rates
2.5.1 Treatment for FY 2012 - FY 2013
By March 31,2010, BPA shall update the table in section 2.5.2 of this
exhibit, consistent with Port Angeles' elections, with amounts of Firm
Requirements Power which Port Angeles shall purchase at applicable
Tier 2 Rates for the FY 2012 - FY 2013 Rate Period.
2.5.2 Amounts of Power for Subsequent Rate Periods
For each Rate Period after the FY 2012 - FY 2013 Rate Period, BPA
shall establish for the upcoming Rate Period consistent with Port
Angeles' elections: (1) the planned annual average amounts of Firm
Requirements Power which Port Angeles shall purchase at applicable
Tier 2 Rates, and (2) any remarketed Tier 2 Rate purchase amounts in
accordance with section 10 of the body of this Agreement. By
March 31,2013, and by March 31 of each Rate Case Year thereafter,
BPA shall update the table below with such amounts for each year of
the upcoming Rate Period.
Annual Amounts Priced at Tier 2 Rates (aMW)
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020
No Tier 2 at this
time
Remarketed
Amounts
Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028
No Tier 2 at this
time
Remarketed
Amounts
Notes:
1. List each applicable Tier 2 rate in the table above. For the first applicable Tier 2 rate
replace No Tier 2 at this time with the name of the applicable Tier 2 rate. For each
additional Tier 2 rate, add a new row above the Remarketed Amounts row. If Port
Angeles elects not to purchase at Tier 2 rates, then leave No Tier 2 at this time in the
table and leave the remainder of the table blank.
2. Fill in the table above with annual Average Megawatts rounded to three decimal places.
3. MONTHLYPFRATES
Applicable monthly Tier 1 and Tier 2 Rates are specified in BP A Wholesale Power
Rate Schedules and GRSPs.
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
10 of 11
4. REVISIONS
BP A shall revise this exhibit to reflect Port Angeles' elections regarding service to its
Above-RHWM Load and BPA's determinations relevant to this exhibit and made in
accordance with this Agreement.
(PSW-S: \PM\ CUST_SKG\PORT ANGELES \PSC_2009_PLRegional Dialogue \Pa_13093_20081117 _Contact]ianal.docl 11/17/08
09PB-13093, Port Angeles
Exhibit C, Purchase Obligations
11 of 11
Exhibit D
ADDITIONAL PRODUCTS AND SPECIAL PROVISIONS
1. CF/CT AND NEW LARGE SINGLE LOADS
1.1 CF/CT Loads
The Administrator has determined that the following loads were contracted
for, or committed to be served (CF/CT), as of September 1, 1979, as defined in
section 3(13)(A) of the Northwest Power Act, and are subject to the applicable
cost-based rate for the rest of Port Angeles' load:
End-use consumer's name: Nippon Paper Industries USA Co., Ltd. (Formerly
known as Daishowa America Co., Ltd.)
Facility name: Nippon Paper Industries USA Co., Ltd.
Facility location: Ediz Hook in Port Angeles, W A
Facility description: Pulp and paper mill
Amount offirm energy (megawatts at 100 percent load factor) contracted for,
or committed to: 40.3 annual Average Megawatts
In addition to the CF/CT load amount described above, the Nippon Paper
Industries USA Co., Ltd. facility on Ediz Hook in Port Angeles, W A is the
"local industrial consumer" pursuant to Public Law No. 102-495, Elwha River
Ecosystem And Fisheries Restoration Act. Pursuant to sections 2(k) and 5(b)
of Public Law No. 102-495, BPA shall provide "project replacement power"
required by Port Angeles to serve Nippon Paper Industries USA Co., Ltd. on
Ediz Hook in Port Angeles, W A, "in an amount not to exceed 172.088
gigawatthours of energy in any year."
This provision shall be applicable to BPA's power supply obligation as if it
were set out in the body of this Agreement.
1.2 Potential NLSLs
Port Angeles has no identified potential NLSLs.
1.3 Existing NLSLs
Port Angeles has no existing NLSLs.
2. RESOURCE SUPPORT SERVICES
2.1 BPA shall develop the RSS products to support applicable Specified
Resources listed in section 2 of Exhibit A for the FY 2012-2014 Purchase
Period and offer such as a revision to this exhibit by August 1, 2009. Prior to
that date, BP A shall provide Port Angeles a reasonable opportunity to
provide input into the development of the products and the related contract
provisions. If Port Angeles requests that BP A provide such service, then the
Parties shall execute a revision to this exhibit by the November 1, 2009,
Notice Deadline. By each Notice Deadline thereafter, Port Angeles may
purchase RSS from BPA to support applicable Specified Resources listed in
section 2 of Exhibit A for the corresponding Purchase Period.
09PB-13093, Port Angeles
lof2
2.2 If Port Angeles adds a new Specified Resource within a Purchase Period to
meet its obligations to serve Above-RHWM Load with Dedicated Resources,
consistent with section 3.5.1 of the body of this Agreement, Port Angeles may
purchase RSS from BPA to support such resource. Such purchase shall be for
the remainder of the Purchase Period and for the following Purchase Period.
Port Angeles shall notify BPA of its decision to purchase RSS for a new
Specified Resource by October 31 of a Rate Case Year and the elected RSS
will be effective at the start of the upcoming Rate Period.
3. REVISIONS
This exhibit shall be revised by mutual agreement of the Parties to reflect additional
products Port Angeles purchases during the term of this Agreement.
(PSW -So \PM\ CUST_SKG \ PORT ANGELES \PSC_2009_PF _Regional DIalogue \Pa_13093_20081117 _Contact_Fianal.doc) 11/17/08
09PB-13093, Port Angeles
Exhibit D, Additional Products and Special Provisions
20f2
Exhibit E
METERING
1. METERING
1.1 Directly Connected Points of Delivery and Load Metering
(1) BPAPOD Name: Nippon 69 kV;
BPA POD Number: 163;
WECC Balancing Authority: BPAT;
Location: the point in BPA's Port Angeles Substation where the
69 kV facilities ofBPA and Nippon are connected;
Voltage: 69 kV;
Metering: in BPA's Port Angeles Substation in the 69 kV circuit over
which such electric power flows;
(A) BPA Meter Point Name: Nippon In;
BPA Meter Point Number: 158;
Direction for PF Billing Purposes: Negative;
Manner of Service:' Direct, Port Angeles to BP A;
(B) BPA Meter Point Name: Nippon Out;
BPA Meter Point Number: 459;
Direction for PF Billing Purposes: Positive;
Manner of Service: Direct, BP A to Port Angeles;
Metering Loss Adjustment: None;
Exception: None.
(2) BPA POD Name: Port Angeles 69 kV;
BPAPODNumber: 542;
WECC Balancing Authority: BPAT;
Location: the point in BPA's Port Angeles Substation where the
69 kV facilities ofBPA and Port Angeles are connected;
Voltage: 69 kV;
Metering: in BPA's Port Angeles Substation in the 69 kV circuit over
which such electric power flows;
09PB-13093, Port Angeles
10f3
(A) BPA Meter Point Name: Port Angeles #2 Out;
BPA Meter Point Number: 152;
Direction for PF Billing Purposes: Positive
Manner of Service: Direct, BP A to Port Angeles;
(B) BPA Meter Point Name: Port Angeles #1 Out;
BPA Meter Point Number: 251;
Direction for PF Billing Purposes: Positive
Manner of Service: Direct, BP A to Port Angeles;
Metering Loss Adjustment: None;
Exception: None.
1.2 Transfer Points of Delivery and Load Metering
None.
1.3 Resource Locations and Metering
Resource Name: Morse Creek
Metering: in Port Angeles City Light's Morse Creek Hydro Substation in
the 69 kV circuit over which such electric power flows;
(A) BPA Meter Point Name: Morse Creek In;
BPA Meter Point Number: 1564;
Direction for PF Billing Purposes: Negative;
Manner of Service: Wheeled to System, Clallam Co. PUD to BP A to
Port Angeles;
(B) BPA Meter Point Name: Morse Creek Stn Srv Out;
BPA Meter Point Number: 1565;
Direction for PF Billing Purposes: Not used;
Manner of Service: Wheeled to System, Port Angeles to BP A to
Clallam Co. PUD;
Metering Loss Adjustment: BPA shall adjust for losses between the Port
Angeles 69 kV POD and the Morse Creek In paM. Such adjustments shall
be specified in writing between BPA and Port Angeles;
Exception: The Morse Creek Stn Srv Out paM is part of Clallam Co. PUD's
load and should not be added to Port Angeles' power bill. This is because
Clallam Co. PUD and Port Angeles have an agreement to trade Morse Creek
Station Service for water service.
2. REVISIONS
Each Party shall notify the other in writing if updates to this exhibit are necessary to
accurately reflect the actual characteristics of POD and meter information described
09PB-13093, Port Angeles
Exhibit E, Metering
20f3
in this exhibit. The Parties shall revise this exhibit to reflect such changes. The
Parties shall mutually agree on any such exhibit revisions and agreement shall not
be unreasonably withheld or delayed. The effective date of any exhibit revision shall
be the date the actual circumstances described by the revision occur.
(PSW -s: \PM\ CDST_SKG\PORT ANGELES \PSC_2009_PF _Regional Dialogue \Pa_13093_20081117 _Contact_Fianal doc) 11/17/08
09PB-13093, Port Angeles
Exhibit E, Metering
30f3
Exhibit F
SCHEDULING
1. TRANSMISSION SCHEDULING SERVICE
If Port Angeles:
(1) acquires BPA's Diurnal Flattening Service; and/or
(2) acquires BP A's Secondary Crediting Service; and/or
(3) purchases power from BPA at a Tier 2 rate,
then Power Services shall provide and Port Angeles shall purchase Transmission
Scheduling Service. In such case, the Parties shall revise this exhibit to include the
terms and conditions of such service.
If Port Angeles is not required to purchase Transmission Scheduling Service,
pursuant to the paragraph above, then Port Angeles, with six months' notice, may
purchase Transmission Scheduling Service from Power Services and the Parties
shall modify this exhibit to add the terms and conditions of such service.
2. SCHEDULING OF DEDICATED RESOURCES
Port Angeles shall electrically copy BPA Power Services on all preschedule and real-
time electronic tags (E-Tags) associated with the delivery of Port Angeles' Dedicated
Resources, if any, as listed in sections 2, 3, and 4 of Exhibit A.
3. AFTER THE FACT
BPA and Port Angeles agree to reconcile all transactions, schedules and accounts at
the end of each month (as early as possible within the first ten calendar days of the
next month). BP A and Port Angeles shall verify all transactions pursuant to this
Agreement as to product or type of service, hourly amounts, daily and monthly
totals, and related charges.
4. REVISIONS
BPA may unilaterally revise this exhibit:
(1) to implement changes that BPA determines are necessary to allow it to meet
its power and scheduling obligations under this Agreement, or
(2) to comply with requirements ofWECC, NAESB, or NERC, or their successors
or assigns.
09PB-13093, Port Angeles
lof2
BP A shall provide a draft of any material revisions of this exhibit to Port Angeles,
with a reasonable time for comment, prior to BP A providing written notice of the
revision. Revisions are effective 45 days after BP A provides written notice of the
revisions to Port Angeles unless, in BP A's sole judgment, less notice is necessary to
comply with an emergency change to the requirements ofthe WECC, NAESB,
NERC, or their successors or assigns. In this case, BPA shall specify the effective
date of such revisions.
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09PB-13093, Port Angeles
Exhibit F, Scheduling
2of2
Exhibit G
TillS EXIllBIT INTENTIONALLY LEFT BLANK
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09PB-l3093, Port Angeles
lofl
Exhibit H
RENEWABLE ENERGY CERTIFICATES AND CARBON ATTRIBUTES
1. DEFINITIONS
1.1 "Carbon Credit" means an Environmental Attribute consisting of greenhouse
gas emission credits, certificates, or similar instruments.
1.2 "Environmental Attributes" means the current or future credits, benefits,
emission reductions, offsets and allowances attributable to the generation of
energy from a resource. Environmental Attributes do not include the tax
credits associated with such resource. One megawatt-hour of energy
generation from a resource is associated with one megawatt-hour of
Environmental Attributes.
1.3 "Environmentally Preferred Power RECS" or "EPP RECs" means the portion
of BPA's Tier 1 RECs that is equal to an amount of up to 130 percent of the
annual average of equivalent environmentally preferred power (EPP)
contracted for as of October 1, 2009, for FYs 2010 and 2011 under
Subscription power sales contracts containing rights to Environmental
Attributes through FY 2016, as determined by BPA to be necessary to
administer such rights.
1.4 "Renewable Energy Certificates" or "RECs" means the certificates,
documentation, or other evidence that demonstrates, in the tracking system
selected under section 5 of this exhibit, the ownership of Environmental
Attributes.
1.5 "Tier 1 RECs" means the RECs composed of a blend, by fuel source, based on
annual generation ofthe resources listed in or pursuant to section 2 of this
exhibit.
1.6 "Tier 2 RECs" means the RECs associated with generation of the resources
whose costs are allocated to a given Tier 2 Cost Pool in accordance with the
TRM.
2. BP A'S TIER 1 REC INVENTORY
BPA's Tier 1 REC inventory shall include all RECs that BPA has determined are
associated with resources whose output is used to establish Tier 1 System
Capability, as Tier 1 System Capability is defined in the TRM. The disposition of
any Carbon Credits that BP A determines are associated with resources listed in, or
in accordance with, this section 2 shall be as described in section 3 of this exhibit.
The disposition of any Carbon Credits that BPA determines are associated with
resources not listed in, or in accordance with, this section 2 shall be consistent with
section 7 of this exhibit. As of the Effective Date, BP A has determined that the
following resources have RECs associated with them that will be included in the
Tier 1 REC inventory: Foote Creek I, Foote Creek II, St;lteline, Condon, Klondike I,
Klondike III, and Ashland Solar. BPA shall maintain this list on a publicly
accessible BPA web site and shall periodically update this list to include any then-
09PB-13093, Port Angeles
10f4
current resources that BP A has determined have Tier 1 RECs associated with them.
BPA shall calculate its inventory of Tier 1 RECs annually and after the fact based
on energy generated by listed resources during the previous calendar year.
3. PORT ANGELES' SHARE OF TIER 1 RECS
Beginning April 15, 2012, and by April 15 every year thereafter over the term of this
Agreement, BP A shall:
(1) transfer to Port Angeles, or manage in accordance with section 5 of this
exhibit, at no additional charge or premium beyond Port Angeles' payment of
the otherwise applicable Tier 1 Rate, a pro rata share of Tier 1 RECs based
on Port Angeles' RHWM divided by the total RHWMs of all holders of CHWM
Contracts; and
(2) for transferred RECs, provide Port Angeles with a letter assigning title of
such Tier 1 RECs to Port Angeles.
The amount of Tier 1 RECs available to BP A to transfer or manage shall be subject
to available Tier 1 REC inventory, excluding amounts of Tier 1 REC inventory used
to provide EPP RECs.
4. TIER 2 RECS
If Port Angeles chooses to purchase Firm Requirements Power at a Tier 2 Rate, and
there are RECs which BPA has determined are associated with the resources whose
costs are allocated to the Tier 2 Cost Pool for such rate, then beginning April 15 of
the year immediately following the first Fiscal Year in which Port Angeles' Tier 2
purchase obligation commences, and by April 15 every year thereafter for the
duration of Port Angeles' Tier 2 purchase obligation, BPA shall, based on Port
Angeles' election pursuant to section 5 of this exhibit, transfer to or manage for Port
Angeles a pro rata share of applicable Tier 2 RECs generated during the previous
calendar year. The pro rata share of Tier 2 RECs BPA transfers to Port Angeles
shall be the ratio of Port Angeles' amount of power purchased at the applicable
Tier 2 Rate to the total amount of purchases under that Tier 2 Rate.
5. TRANSFER, TRACKING, AND MANAGEMENT OF RECS
Subject to BP A's determination that the commercial renewable energy tracking
system WREGIS is adequate as a tracking system, BPA shall transfer Port Angeles'
share of Tier 1 RECs, and Tier 2 RECs if applicable, to Port Angeles via WREGIS or
its successor. If, during the term of this Agreement, BPA determines in consultation
with customers that WREGIS is not adequate as a tracking system, then BPA may
change commercial tracking systems with one year advance notice to Port Angeles.
In such case, the Parties shall establish a comparable process for BP A to provide
Port Angeles its RECs.
Starting on July 15, 2011, and by July 15 prior to each Rate Period through the term
of this Agreement, Port Angeles shall notify BPA which one of the following three
options it chooses for the transfer and management of Port Angeles' share of Tier 1
RECs, and Tier 2 RECs if applicable, for each upcoming Rate Period:
09PB-13093, Port Angeles
Exhibit H, Renewable Energy Certificates and Carbon Attributes
2of4
(1) BPA shall transfer Port Angeles' RECs into Port Angeles' own WREGIS
account, which shall be established by Port Angeles; or
(2) BPA shall transfer Port Angeles' RECs into a BPA-managed WREGIS
subaccount. Such subaccount shall be established by BPA on Port Angeles'
behalf and the terms and conditions of which shall be determined by the
Parties in a separate agreement; or
(3) Port Angeles shall give BPA the authority to market Port Angeles' RECs on
Port Angeles' behalf. BPA shall annually credit Port Angeles for Port
Angeles' pro rata share of all revenues generated by sales of RECs from the
same rate pool on its April bill, issued in May.
If Port Angeles fails to notify BP A of its election by July 15 before the start of each
Rate Period, then Port Angeles shall be deemed to have elected the option in
section 5(3) of this exhibit.
Any RECs BP A transfers to Port Angeles on April 15 of each year shall be limited to
those generated January 1 through December 31 of the prior year, except that any
RECs BPA transfers to Port Angeles by April 15, 2012, shall be limited to those
generated October 1, 2011, through December 31, 2011.
6. FEES
BPA shall pay any reasonable fees associated with (1) the provision of Port Angeles'
RECs and (2) the establishment of any subaccounts in Port Angeles' name pursuant
to sections 5(1) and 5(2) of this exhibit. Port Angeles shall pay all other fees
associated with any WREGIS or successor commercial tracking system, including
WREGIS retirement, reserve, and export fees.
7. CARBON CREDITS
In the absence of carbon regulations or legislation directly affecting BPA, BPA
intends to convey the value of any future Carbon Credits associated with resources
whose costs are recovered in Tier 1 or Tier 2 Rates to Port Angeles on a pro rata
basis in the same manner as described for Tier 1 RECs and Tier 2 RECs in
sections 3 and 4 ofthis exhibit. This value may be conveyed as: (1) the Carbon
Credits themselves; (2) a revenue credit after BPA markets such Carbon Credits; or
(3) the ability to claim that power purchases at the applicable PF rate are derived
from certain federal resources.
8. BPA'S RIGHT TO TERMINATE PORT ANGELES' RECS AND/OR CARBON
CREDITS
To the extent necessary to comply with any federal regulation or legislation which
addresses Carbon Credits or any other form of Environmental Attribute(s) and
includes compliance costs applicable to BPA, BPA may, upon reasonable notice to
Port Angeles, terminate Port Angeles' contract rights to Tier 1 RECs under section 3
of this exhibit and/or Port Angeles' pro rata share of Carbon Credits under section 7
of this exhibit.
09PB-13093, Port Angeles
Exhibit H, Renewable Energy Certificates and Carbon Attributes
30f4
9. RATEMAKING TREATMENT
Notwithstanding the transfer, sharing, management, conveyance, marketing or
crediting of RECs and Carbon Credits, or the value of any or all of them, pursuant to
this Exhibit H, BP A reserves any ratemaking authority it otherwise possesses to
determine and factor in a share of the value and/or cost of any or all of the RECs and
Carbon Credits for the purpose of: (1) determining applicable wholesale rates
pursuant to section 7(c)(2) of the Northwest Power Act; and (2) establishing the
rate(s) applicable to BPA sales pursuant to section 5(c) of the Northwest Power Act
in a manner that BPA determines provides an appropriate sharing of the benefits
and/or costs of the federal system and comparably reflects treatment of RECs and
Carbon Credits in the calculation of a utility's average system cost of resources.
BP A further reserves its ratemaking authority to recover any costs resulting from
such ratemaking actions through rates, including rates applicable to Port Angeles.
This paragraph does not constitute Port Angeles' agreement to statutory ratemaking
authority BP A does not otherwise have.
10. REVISIONS
BPA shall revise this Exhibit H to reflect BPA's determinations relevant to this
exhibit and made in accordance with this Agreement. Any other revisions to this
Exhibit H shall be by mutual agreement.
CPsw -s: \PM\ CUST_SKG\PORT ANGELES \PSC_2009_PF _Regional Dialogue \Pa_13093_20081117 _Contact_Fianal.doc) 11/17/08
09PB-13093, Port Angeles
Exhibit H, Renewable Energy Certificates and Carbon Attributes
40f4
BPA and Port Angeles agree:
Amendment No. 1
Contract No. 09PB -13093
AMENDMENT
executed by the
BONNEVILLE POWER ADMINISTRATION
and
CITY OF PORT ANGELES
This Amendment to the Power Sales Agreement Contract No. 09PB -13093
(Agreement) is executed by the UNITED STATES OF AMERICA, Department of Energy,
acting by and through the BONNEVILLE POWER ADMINISTRATION (BPA) and the
CITY OF PORT ANGELES (Port Angeles).
This Amendment No. 1 (Amendment) modifies the Agreement to revise definitions to
be consistent with the final Tiered Rate Methodology, and make other changes agreed upon
by the Parties.
1. EFFECTIVE DATE
This Amendment shall take effect on the date executed by the Parties (Effective
Date).
2. AMENDMENTS TO BODY OF AGREEMENT
(a) Section 2, Definitions
(1) Section 2.2 shall be deleted and replaced by the following:
"2.2 "7(i) Process" means a public process conducted, pursuant to
section 7(i) of the Northwest Power Act or its successor, by BPA
to establish rates for the sale of power and other products."
(2) Section 2.3 shall be deleted and replaced by the following:
"2.3 "Above -RHWM Load" means the forecast annual Total Retail
Load, less Existing Resources, NLSLs, and the customer's
RHWM, as determined in the RHWM Process. For the
Transition Period (as defined in the TRM), Above -RHWM Load
will be established as described in section 4.3.2.2 of the TRM."
(3) Section 2.8 shall be deleted and replaced by the following:
"2.8 "Business Day(s)" means every Monday through Friday
except Federal holidays."
S.
(4) Section 2.17 shall be deleted and replaced by the following:
"2.17 "Diurnal Flattening Service" or "DFS" means a service that
makes a resource that is variable or intermittent, or that
portion of such resource that is variable or intermittent,
equivalent to a resource that is flat within each
Monthly/Diurnal period, as defined in the TRM."
(5) Section 2.29 shall be deleted and replaced by the following:
"2.29 "Forced Outage Reserve Service" or "FORS" means a
service that provides an agreed -to amount of capacity and
energy to load during the forced outages of a qualifying
resource."
(6) Section 2.82 shall be deleted and replaced by the following:
"2.82 "Transmission Curtailment Management Service" or
"TCMS" means the service BPA will provide to customers with
a qualifying resource when a transmission curtailment occurs
between such resource and the customer load."
(b) Section 3.5.8, PURPA Resources
Section 3.5.8 shall be deleted and replaced with the following:
"If Port Angeles is required by the Public Utility Regulatory Policies Act
(PURPA) to acquire output from a Generating Resource and plans to use that
output to serve its Total Retail Load, then such output shall be added as a
Specified Resource pursuant to Exhibit A. Port Angeles shall purchase DFS
from BPA (or equivalent service if DFS is unavailable) to support such
resources for the term of this Agreement."
(c) Section 3.6, Consumer -Owned Resources
Section 3.6 shall be deleted and replaced with the following:
"Except for any Consumer -Owned Resources serving an NLSL, which Port
Angeles has applied to load consistent with section 23.3.7, Port Angeles shall
apply the output of the Consumer -Owned Resources as follows:"
(d) Section 3.6.3, Application of Consumer -Owned Resources Serving
Onsite Consumer Load
Section 3.6.3 shall be deleted and replaced with the following:
"Power generated from Consumer -Owned Resources listed in section 7.1 of
Exhibit A shall serve the Onsite Consumer Load. Port Angeles shall receive
no compensation from BPA for excess power generated on any hour from such
resources."
Amendment No. 1, 09PB- 13093, Port Angeles 2
r
(e) Section 6.6.2, Rate Period High Water Mark Calculation
The definition of the sum of CHWM (ECHWM) in section 6.6.2 shall be
deleted and replaced with the following:
" )2CHWM = sum of all Publics' (as defined in the TRM) Contract High Water
Marks, including those for Publics without a CHWM Contract"
(f) Section 7.1, Contract High Water Mark (CHWM)
Section 7.1 shall be deleted and replaced with the following:
"BPA shall establish Port Angeles' CHWM in the manner defined in
section 4.1 of the TRM. Port Angeles' CHWM and the circumstances under
which it can change are stated in Exhibit B."
(g) Section 9.1, Determination and Notice to Serve Above -RHWM Load
Section 9.1 shall be deleted and replaced with the following:
"Port Angeles shall determine and provide notice, as described below, to BPA
whether Port Angeles shall serve its Above -RHWM Load that is greater than
or equal to 8,760 megawatt -hours with either: (1) Firm Requirements Power
purchased from BPA at a Tier 2 Rate or rates, (2) Dedicated Resources, or
(3) a specific combination of both (1) and (2). Port Angeles may also provide
notice to BPA that it shall use a Dedicated Resource to serve Above -RHWM
Load that is less than 8,760 MWh. Port Angeles shall make such
determination and provide such notice as follows:"
(h) Section 10, Tier 2 Remarketing and Resource Removal
The following paragraph shall be added to the beginning of section 10:
"For the purpose of this section 10, any Dedicated Resources added to
Exhibit A pursuant to section 3.5.3 or 3.5.7 do not have temporary resource
removal or remarketing rights under this section. In addition, any Dedicated
Resource amounts or amounts purchased at a Tier 2 Rate that would
otherwise be made eligible for removal or remarketing due to the addition of
resources under section 3.5.3 do not have temporary resource removal or
remarketing rights under this section."
(i) Section 10.4, Remarketing of Power Priced at Tier 2 Rates
Section 10.4 and its heading shall be deleted and replaced with the following:
"10.4 Remarketing of Power
Consistent with rates established under the TRM, Port Angeles shall
be subject to applicable charges or credits associated with BPA's
remarketing of purchase amounts of Firm Requirements Power at
Tier 2 Rates. Except as specified in section 10.5, Port Angeles shall be
responsible for remarketing of any amounts of its Dedicated
Resources, Specified or Unspecified, that are removed or reduced
pursuant to this Agreement."
Amendment No. 1, 09PB- 13093, Port Angeles
(j) Section 18.2.2, Reporting Requirements
The first paragraph of section 18.2.2 shall be deleted and replaced by the
following:
"This section 18.2.2 does not apply if Port Angeles' Total Retail Load from the
most recent prior Fiscal Year is 25 annual Average Megawatts or less or if
Port Angeles purchases all of its power from BPA to serve its Total Retail
Load. If Port Angeles' Total Retail Load from the most recent prior Fiscal
Year is above 25 annual Average Megawatts, the following requirements may
be satisfied by submitting plans and reports Port Angeles prepares in the
normal course of business as long as such plans and reports include the
information required below."
(k) Section 22.1, Judicial Resolution
The last sentence of section 22.1 shall be deleted and replaced by the
following:
"If BPA determines that a dispute is excluded from nonbinding arbitration
under this section 22, then Port Angeles may apply to the federal court
having jurisdiction for an order determining whether such dispute is subject
to nonbinding arbitration under this section 22."
(1) Section 23.3.1, Determination of an NLSL
Section 23.3.1.3 shall be deleted and replaced by the following:
"23.3.1.3 The Parties may agree that the applicable increase in load of
installed production equipment at a facility will equal or exceed
ten Average Megawatts consumption over any 12 consecutive
months and that such production load shall constitute an NLSL.
Any such agreement shall constitute a binding NLSL
determination."
(m) Section 23.3.5, Undetermined NLSLs
The second paragraph of section 23.3.5 shall be deleted and replaced by the
following:
"If BPA concludes in its sole judgment that Port Angeles has not fulfilled its
obligations, or has not been able to obtain access or information from the end -
use consumer under sections 23.3.3 and 23.3.4, BPA may determine any load
subject to NLSL monitoring to be an NLSL, in which case Port Angeles shall
be billed and pay in accordance with the last two sentences of the preceding
paragraph. Such NLSL determination shall be final unless Port Angeles
proves to BPA's satisfaction that the applicable increase in load did not equal
or exceed ten Average Megawatts in any 12 -month monitoring period."
(n) Section 23.3.6, Service Election for an NLSL
Section 23.3.6 shall be deleted and replaced by the following:
Amendment No. 1, 09PB- 13093, Port Angeles 4
"Before the Parties add an NLSL to Exhibit D, Port Angeles shall elect, in
writing, to:
(1) have BPA serve the NLSL at the NR rate; or
(2) serve the NLSL by adding a Dedicated Resource to Exhibit A that is
not already being used to serve Port Angeles' firm consumer load in
the region.
This election shall be binding on Port Angeles for the remaining term of this
Agreement."
3. EXHIBIT REVISIONS
(a) Exhibit C, Section 2.2.4.3, Obligation to Apply Dedicated Resources
Section 2.2.4.3 of Exhibit C shall be deleted and replaced by the following:
"If Port Angeles provides notice to modify its purchases at Tier 2 Load
Growth Rates under section 2.2.4.1 of this exhibit, then for the remainder of
the effective Purchase Period and all of the next Purchase Period, Port
Angeles shall apply Dedicated Resources to serve all of its Above -RHWM
Load that is in excess of the sum of all Tier 2 commitments."
(b) Exhibit C, Section 2.4.1.1, Alternative A — Customer Planned Load
Not Otherwise Served
The title of the table in section 2.4.1.1(2) of Exhibit C shall be deleted and
replaced by the following:
"Purchase Period Dedicated Resource Elections"
(c) Exhibit D, Section 2, Resource Support Services
Section 2 of Exhibit D shall be deleted and replaced with the following:
"2. RESOURCE SUPPORT SERVICES
2.1 BPA shall develop the RSS products to support applicable
Specified Resources listed in section 2 of Exhibit A for the
FY 2012 through 2014 Purchase Period and offer such as a
revision to this exhibit by August 1, 2009 and by August 1 prior
to each Notice Deadline thereafter. Prior to that date, BPA
shall provide Port Angeles a reasonable opportunity to provide
input into the development of the products and the related
contract provisions. By the November 1, 2009 Notice Deadline
and each Notice Deadline thereafter, Port Angeles shall notify
BPA in writing of any RSS products it elects to buy from BPA
under the terms of this Agreement and shall identify the
applicable resource(s), for which it shall purchase the RSS
product(s) for the upcoming Purchase Period. Such election
Amendment No. 1, 09PB- 13093, Port, Angeles 5
shall be a binding commitment of both Parties. If Port Angeles
makes such election, the Parties shall revise this exhibit so
that it incorporates the agreed changes to applicable
provisions, including the applicable resource amounts, if
known, by March 31, 2010 or by March 31 of the year following
the Notice Deadline for future years. By September 30 of the
last Rate Case Year prior to the first Rate Period when service
begins, and by each applicable September 30 thereafter in
accordance with the applicable incorporated contract language,
BPA shall update the relevant tables included in the
incorporated contract language with the applicable charges and
any necessary updates to resource amounts.
2.2 If Port Angeles adds a new Specified Resource within a
Purchase Period to meet its obligations to serve Above -RHWM
Load with Dedicated Resources, consistent with section 3.5.1 of
the body of this Agreement, Port Angeles may purchase DFS or
FORS to support such resource. Port Angeles shall request a
copy of the then - current DFS or FORS standard contract
provisions from BPA and shall notify BPA in writing by
October 31 of a Rate Case Year that it elects to purchase DFS
or FORS for the new Specified Resource under the terms stated
in the then - current contract provisions and the terms of this
section 2.2. Such election shall be a binding commitment of
both Parties. The elected DFS or FORS will be effective at the
start of the upcoming Rate Period. The duration of such
purchase shall be for the remainder of the Purchase Period and
for the following Purchase Period. If Port Angeles makes such
election, the Parties shall revise this exhibit by March 31 of the
calendar year after Port Angeles has given notice of its election.
Such revision shall incorporate the agreed changes to
applicable provisions, including the applicable resource
amounts, if known. By September 30 of the last Rate Case
Year prior to the first Rate Period when service begins, and by
each applicable September 30 thereafter, in accordance with
the applicable incorporated contract language, BPA shall
update the relevant tables included in the incorporated
contract language with the applicable charges and any
necessary updates to resource amounts."
(d) Exhibit H, Section 4, Tier 2 RECS
Section 4 of Exhibit H shall be deleted and replaced by the following:
"4. TIER 2 RECS
If Port Angeles chooses to purchase Firm Requirements Power at a
Tier 2 Rate, and there are RECs which BPA has determined are
associated with the resources whose costs are allocated to the Tier 2
Cost Pool for such rate, then beginning April 15 of the year
immediately following the first Fiscal Year in which Port Angeles'
Amendment No. 1, 09PB- 13093, Port Angeles 6
Tier 2 purchase obligation commences, and by April 15 every year
thereafter for the duration of Port Angeles' Tier 2 purchase obligation,
BPA shall, based on Port Angeles' election pursuant to section 5 of this
exhibit, transfer to or manage for Port Angeles a pro rata share of
applicable Tier 2 RECs generated during the previous calendar year.
BPA shall, for transferred RECs, provide Port Angeles with a letter
assigning title of such Tier 2 RECs to Port Angeles. The pro rata
share of Tier 2 RECs BPA transfers to Port Angeles shall be the ratio
of Port Angeles' amount of power purchased at the applicable Tier 2
Rate to the total amount of purchases under that Tier 2 Rate."
4. SIGNATURES
The signatories represent that they are authorized to enter into this Amendment on
behalf of the Party for which they sign.
CITY OF PORT ANGELES UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
By � I m �= �/ d -�- By 1).1/1
v
Name Gary Braun Name Shannon K. Greene
Title Mayor Title Account Executive
Date 9i /S /O Date q/.
(PSW/Seattle-S \ PM \ CUST_SKG \ PORT ANGELES \ PSC_2009_PF_Regional Dialogue \AA #1-CleanUp \ Pa_13093_20090717_AA# 1_final doc) 07/17/2009
Amendment No. 1, 09PB- 13093, Port Angeles
September 24, 2009
In reply refer to: PSW /Seattle
Dear Larry:
e.Aczv /‹ &L
Shannon K. Greene
Power Services Account Executive
Enclosure
Department of Energy
Bonneville Power Administration
Seattle Customer Service Center
909 First Avenue, Suite 380
Seattle, Washington 98104 -3636
Larry Dunbar, Deputy Director of Power Systems
City of Port Angeles
P.O. Box 1150
Port Angeles, WA 98362 -0217
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Enclosed for your records is an executed original of Amendment No. 1 (Amendment) to the City
of Port Angeles' Power Sales Agreement, Contract No. 09PB- 13093.
Please feel free to contact me at (206) 220 -6775 if you have any questions or concerns.
Sincerely,
5.9'x3
March 15, 2010
In reply refer to: PSW /Seattle
Larry Dunbar, Deputy Director of Power Systems
City of Port Angeles
P.O. Box 1150
Port Angeles, WA 98362 -0217
Dear Larry:
Enclosed is an original revision to Exhibit C, to the City of Port Angeles' (Port Angeles) Power
Sales Agreement, Contract No. 09PB -13093 (Agreement). The changes in the attached revision
are necessary to capture the contract provisions relating to Port Angeles' Above -RHWM
elections made in November, 2009.
Exhibit C Revision No. 1 reflects Port Angeles' Firm Requirements Power purchase obligation at
Tier 2 Rates for the first Purchase Period. Pursuant to the Agreement, this exhibit revision is
unilateral and does not require a signature.
The enclosed Revision No. 1 to Exhibit C is Port Angeles' original copy to keep for its records.
Please feel free to contact me at (206) 220 -6775 if you have any questions or concerns.
Sincerely,
Shannon K. Greene
Power Services Account Executive
Enclosure
cc: (w /o enclosure)
Phil Lusk City of Port Angeles
Department of Energy
Bonneville Power Administration
Seattle Customer Service Center
909 First Avenue, Suite 380
Seattle, WA 98104 -3636
POWER SERVICES
b)ECIEHNE 7
MAR l rl 2010
City of Port Angeles
Public Works and Wilitnes Dept
Engineering Services Division
This revision: (1) updates section 2 to reflect Port Angeles' elections regarding service to its
Above -RHWM Load for the first Purchase Period (FY 2012 FY 2014) and for the
FY 2012 -2013 Rate Period, and (2) incorporates the Exhibit C revisions from Amendment
No. 1 to the Agreement.
1. FIRM REQUIREMENTS POWER AT TIER 1 RATES
The portion of Port Angeles' purchase obligation that is priced at Tier 1 Rates is
established in section 8.1(1) of the body of this Agreement.
2. FIRM REQUIREMENTS POWER AT TIER 2 RATES
2.1 Notice to Purchase Zero Amounts at Tier 2 Rates
If Port Angeles elects not to purchase Firm Requirements Power at Tier 2
Rates for a Purchase Period, then by March 31 immediately following the
corresponding Notice Deadline, BPA shall update this exhibit to indicate such
election by adding an "X" to the applicable cell in the following table. Such
election means that for the Purchase Period specified below, Port Angeles
shall: (1) purchase zero amounts of Firm Requirements Power at Tier 2
Rates, and (2) serve all of its Above -RHWM Load that is greater than or
equal to 8,760 megawatt -hours with power other than Firm Requirements
Power. Port Angeles may serve its Above -RHWM Load that is less than
8,760 megawatt -hours with power other than Firm Requirements Power.
I Zero Tier 2 I Purchase Period
1 FY2012- FY2014
1 FY2015- FY2019
FY 2020 FY 2024
FY 2025 FY 2028
2.2 Tier 2 Load Growth Rate
Revision No. 1, Exhibit C
PURCHASE OBLIGATIONS
Effective on March 31, 2010
2.2.1 First Election Opportunity
If Port Angeles elects by the first Notice Deadline (November 1, 2009)
to purchase Firm Requirements Power at Tier 2 Load Growth Rates
starting October 1, 2011, then in its election Port Angeles shall elect
one of the three Tier 2 Load Growth Rate options listed in section 2.2.3
of this exhibit. If Port Angeles elects Option 3, then Port Angeles
shall state the amounts to be listed in the table in section 2.2.3.3 of
this exhibit and Port Angeles' Tier 2 Short -Term Rate election
pursuant to section 2.4.1 of this exhibit. BPA shall amend this exhibit
by March 31, 2010, to indicate Port Angeles' election by adding an "X"
to the "Pt Notice Deadline" box next to the applicable option below. If
Port Angeles does not elect to purchase Firm Requirements Power at
Tier 2 Load Growth Rates by the first Notice Deadline, then Port
09PB- 13093, Port Angeles 1 of 11
Angeles shall not have the right to purchase Firm Requirements
Power at Tier 2 Load Growth Rates during the first Purchase Period.
2.2.2 Second Election Opportunity
2.2.2.1 If Port Angeles does not elect to purchase Firm Requirements
Power at Tier 2 Load Growth Rates starting the first
Purchase Period, then Port Angeles may purchase Firm
Requirements Power at Tier 2 Load Growth Rates starting
October 1, 2014, provided:
(1) any elections of Tier 2 Rate alternatives or additions
of New Resources under this Agreement that extend
beyond the initial Purchase Period shall continue to
apply for their term, and
(2) the Tier 2 Load Growth Rate applicable under this
election may be different than the Tier 2 Load Growth
Rate that was available during the first Purchase
Period.
2.2.2.2 If Port Angeles elects by the second Notice Deadline
(September 30, 2011) to purchase Firm Requirements Power
at Tier 2 Load Growth Rates, then in its election Port Angeles
shall elect one of the three Tier 2 Load Growth Rate options
listed in section 2.2.3 of this exhibit. In such case, Port
Angeles shall purchase Firm Requirements Power at Tier 2
Load Growth Rates under such elected option starting
October 1, 2014.
2.2.2.3 If Port Angeles elects Option 3, described in section 2.2.3.3 of
this exhibit, then Port Angeles shall state the amounts to be
listed in the table in section 2.2.3.3 of this exhibit and Port
Angeles' Tier 2 Short -Term Rate election pursuant to
section 2.4.1 of this exhibit. If Port Angeles has prior
elections of rate alternatives or resource additions that
extend beyond the first Purchase Period, then Port Angeles
shall not have the right to elect Options 1 or 2 below. In such
case, the amounts listed in the table in section 2.2.3.3 of this
exhibit shall not be less than the sum of Port Angeles' prior
elections for each year.
2.2.2.4 BPA shall amend this exhibit by March 31, 2012, to indicate
Port Angeles' election by adding an "X" to the "2 Notice
Deadline" box next to the applicable option below. If Port
Angeles does not elect to purchase Firm Requirements Power
at Tier 2 Load Growth Rates by the second Notice Deadline,
then Port Angeles shall not purchase Firm Requirements
09PB- 13093, Port Angeles 2 of 11
Revision No. 1, Exhibit C, Purchase Obligations
1st Notice Deadline
2nd Notice Deadline
1st Notice Deadline
2nd Notice Deadline
1st Notice Deadline
2 Notice Deadline
Power at Tier 2 Load Growth Rates for the term of this
Agreement.
2.2.3 Tier 2 Load Growth Rate Options
2.2.3.1 Option 1 Full Tier 2 Load Growth Rate
If Port Angeles elects this option, then Port Angeles shall
purchase Firm Requirements Power at Tier 2 Load Growth
Rates for all of Port Angeles' Above -RHWM Load.
2.2.3.2 Option 2 Shared Rate Plan
(1) Obligation
If Port Angeles elects this option, provided that BPA
determines Port Angeles qualifies under the limit for
the Shared Rate Plan as established in section 7 of the
TRM, then Port Angeles shall pay rates under the
Shared Rate Plan for Firm Requirements Power
purchased under this Agreement. If BPA determines
Port Angeles does not qualify under such limit, then
Port Angeles shall not have the right to elect this option
and Port Angeles shall purchase Firm Requirements
Power at Tier 2 Load Growth Rates under Option 1 as
established in section 2.2.3.1 of this exhibit. For the
second election opportunity stated in section 2.2.2 of
this exhibit, availability under the limit for the Shared
Rate Plan established in section 7 of the TRM shall
equal such limit minus the amounts used by other
customers who elected this Option 2 by the first Notice
Deadline.
(2) Terminating Participation
Port Angeles may terminate participation in the Shared
Rate Plan by providing BPA notice in writing by
March 31 of a Forecast Year. In such case, the change
shall be effective the next Rate Period. If Port Angeles
stops participation in the Shared Rate Plan, then Port
Angeles shall not have the right to resume
participation. Port Angeles shall continue to purchase
Firm Requirements Power priced at Tier 2 Load Growth
Rates for all of Port Angeles' Above -RHWM Load.
2.2.3.3 Option 3 Partial Tier 2 Load Growth Rate
If Port Angeles elects this option, then Port Angeles shall
purchase Firm Requirements Power at Tier 2 Load Growth
Rates for all of Port Angeles' Above -RHWM Load minus the
amounts stated in the table below that Port Angeles elects are
not subject to Tier 2 Load Growth Rates. Port Angeles shall
establish such amounts at the time Port Angeles elects this
09PB- 13093, Port Angeles 3 of 11
Revision No. 1, Exhibit C, Purchase Obligations
option and such amounts shall not change for the term of this
Agreement. Port Angeles may serve such amounts with
Dedicated Resources or with Firm Requirements Power
purchased at other Tier 2 Rates. BPA shall update the table
below by March 31 immediately following Port Angeles'
election of this option.
Load Amounts Not Subject To Tier 2 Load Growth Rates (aMW) I
Fiscal Year I 2012 1 2013 I 2014 1 2015 I 2016 I 2017 I 2018 I 2019 I 2020
Annual aMW I I I I I I I I I
Fiscal Year I 2021 I 2022 I 2023 I 2024 I 2025 I 2026 I 2027 I 2028
Annual aMW I I I I I I I I I
Note: Fill in the table above with annual Average Megawatts rounded to
three decimal places.
2.2.4 Modification to Tier 2 Load Growth Rate Election
2.2.4.1 Notice
Port Angeles shall have the right to stop purchasing Firm
Requirements Power at Tier 2 Load Growth Rates effective the
upcoming Rate Period, except for the amount established in
section 2.2.4.2 of this exhibit. If Port Angeles chooses to modify its
purchases at Tier 2 Load Growth Rates in this manner, then Port
Angeles shall notify BPA in writing by October 31 of a Rate Case
Year.
2.2.4.2 Continued Purchase Amount
For the remaining term of this Agreement, Port Angeles shall
continue to purchase at Tier 2 Load Growth Rates the amount of
Firm Requirements Power that Port Angeles purchased at Tier 2
Load Growth Rates the year before the modification described above
is effective.
2.2.4.3 Obligation to Apply Dedicated Resources
If Port Angeles provides notice to modify its purchases at Tier 2
Load Growth Rates under section 2.2.4.1 of this exhibit, then for the
remainder of the effective Purchase Period and all of the next
Purchase Period, Port Angeles shall apply Dedicated Resources to
serve all of its Above -RHWM Load that is in excess of the sum of all
Tier 2 commitments
2.2.4.4 Charges to Modify Tier 2 Load Growth Rate Purchase
Port Angeles shall be liable for payment of any costs that apply as a
result of Port Angeles modifying its Tier 2 Load Growth Rate
purchase obligation under this section 2.2.4. Such costs shall be
those that BPA: (1) is obligated to pay and will not recover from
Port Angeles at Tier 2 Load Growth Rates as a result of the
modification, and (2) is unable to recover through other transactions.
BPA shall determine such costs, if any, during the 7(i) Process that
09PB- 13093, Port Angeles 4 of 11
Revision No. 1, Exhibit C, Purchase Obligations
follows Port Angeles' notice. If BPA determines that Port Angeles
owes payment for such costs, then Port Angeles shall pay the entire
amount to BPA in no more than 24 equal monthly amounts starting
the first month of the upcoming Rate Period. In no event shall BPA
make payment to Port Angeles as a result of Port Angeles modifying
its Tier 2 Load Growth Rate purchase obligation under this
section 2.2.4.
2.2.4.5 Exhibit Update
By March 31 following Port Angeles' notice, BPA shall indicate Port
Angeles' election to modify its Tier 2 Load Growth Rate purchase by
filling in the table below. As established in section 2.2.4.2 of this
exhibit, Port Angeles shall continue to purchase the following
amounts of Firm Requirements Power at Tier 2 Load Growth Rates:
Continuing Tier 2 Load Growth Rates Purchase Obligation
Fiscal Year 2012 2013 2014 2015 2016
aMW
Fiscal Year 2017 2018 2019 2020 2021
aMW
Fiscal Year 2022 2023 2024 2025 2026
aMW
Fiscal Year 2027 2028
aMW
Note: Fill in the table above with annual Average Megawatts, rounded
to three decimal places, for each year that follows Port Angeles'
modification beginning with the effective year of modification
2.3 Tier 2 Vintage Rates
If Port Angeles elects Option 1 or 2 in section 2.2.3 of this exhibit, then this
section shall not apply. Otherwise:
2.3.1 Election Process
2.3.1.1 Right to Convert
Subject to the amounts of power BPA makes available at one
or more Tier 2 Vintage Rates, Port Angeles shall have the
right to convert some or all of the amounts of Firm
Requirements Power it has elected to purchase at Tier 2
Short -Term Rates, as stated in section 2.4 of this exhibit, to
an equal purchase amount at Tier 2 Vintage Rates.
2.3.1.2 Statement of Intent
If Port Angeles elects to purchase Firm Requirements Power
from BPA at Tier 2 Vintage Rates, then Port Angeles shall
sign a Statement of Intent offered by BPA. "Statement of
Intent" means a statement prepared by BPA and signed by
Port Angeles that describes the approach and cost structure
that will be used for a specific Tier 2 Cost Pool. If BPA
09PB- 13093, Port Angeles 5 of 11
Revision No. 1, Exhibit C, Purchase Obligations
establishes a Tier 2 Cost Pool for a Tier 2 Vintage Rate
consistent with the Statement of Intent, then Port Angeles
agrees to have the portion of its Tier 2 Rate power purchase
specified in the Statement of Intent priced at that rate. If
BPA is unable to establish the Tier 2 Cost Pool for the specific
Tier 2 Vintage Rate, then Port Angeles agrees to purchase
such amount of Firm Requirements Power at Tier 2 Short
Term Rates, except as stated in section 2.3.1.5 of this exhibit.
2.3.1.3 Insufficient Availability
The Statement of Intent shall include procedures to allocate
between competing applications for a specific Tier 2 Cost Pool
if requests exceed amounts available.
2.3.1.4 Conversion Costs
Upon establishment of a Tier 2 Vintage Rate for which Port
Angeles signed a Statement of Intent, Port Angeles shall be
liable for payment of any outstanding costs under Tier 2
Short -Term Rates that apply to Port Angeles. Such costs
shall be those that BPA: (1) is obligated to pay and will not
recover from Port Angeles under Tier 2 Short -Term Rates as
a result of the conversion, and (2) is unable to recover
through other transactions. BPA shall determine such costs,
if any, in the first 7(i) Process that establishes the applicable
Tier 2 Vintage Rate. In no event shall BPA make payment to
Port Angeles as a result of Port Angeles' conversion of
purchase amounts at Tier 2 Short -Term Rates to purchase
amounts at Tier 2 Vintage Rates.
2.3.1.5 Additional Offerings
In addition to the right to convert to Tier 2 Vintage Rates
established in section 2.3.1.1 of this exhibit, Port Angeles
may have the opportunity to purchase Firm Requirements
Power at Tier 2 Vintage Rates regardless of whether Port
Angeles is purchasing at Tier 2 Short -Term Rates if:
(1) BPA determines, in its sole discretion, that all
requests for service at Tier 2 Vintage Rates by
purchasers of Firm Requirements Power at Tier 2
Short -Term Rates are able to be satisfied, and
(2) BPA determines, in its sole discretion, to offer Port
Angeles a Statement of Intent that would provide Port
Angeles the opportunity to purchase Firm
Requirements at Tier 2 Vintage Rates.
If Port Angeles signs a Statement of Intent offered by BPA
pursuant to this section 2.3.1.5, and if BPA is unable to
establish the Tier 2 Cost Pool for the applicable Tier 2
09PB- 13093, Port Angeles 6 of 11
Revision No. 1, Exhibit C, Purchase Obligations
Vintage Rate, then Port Angeles' current elections for service
to its Above -RHWM Load shall continue to apply.
Except as provided in this section 2.3.1, any election by Port
Angeles to purchase Firm Requirements Power at Tier 2
Vintage Rates shall not relieve Port Angeles of any obligation
to purchase Firm Requirements Power at another Tier 2
Rate.
2.3.1.6 Exhibit Updates
By September 15 immediately following the establishment of
a Tier 2 Vintage Rate for which Port Angeles signed a
Statement of Intent, BPA shall amend this exhibit to show
Port Angeles' Tier 2 Vintage Rate purchases and remove Port
Angeles' Tier 2 Short -Term Rate purchases by the amounts
purchased at the Tier 2 Vintage Rate, if Port Angeles is
converting to the Tier 2 Vintage Rate from the Tier 2 Short
Term Rate. BPA shall insert applicable tables, terms, and
conditions for each Tier 2 Vintage Rate in section 2.3.2 of this
exhibit.
2.3.2 Vintage Rate Elections
Port Angeles has no Tier 2 Vintage Rate elections at this time.
2.4 Tier 2 Short -Term Rate
If Port Angeles elects Option 1 or 2 in section 2.2.3 of this exhibit, then this
section shall not apply. Otherwise:
2.4.1 Short -Term Rate Purchases
Unless Port Angeles elects, in section 2.1 of this exhibit, not to
purchase Firm Requirements Power at Tier 2 Rates for a given
Purchase Period, by each Notice Deadline Port Angeles shall elect in
writing either alternative (A) or (B) below for the duration of the
corresponding Purchase Period. If Port Angeles elects alternative (A)
and elects to apply Dedicated Resources to serve its Above -RHWM
Load, then Port Angeles shall state the amounts to be listed in the
table in section 2.4.1.1(2) of this exhibit. If Port Angeles elects
alternative (B), then Port Angeles shall state the amounts to be listed
in the table in section 2.4.1.3 of this exhibit. By March 31
immediately following each Notice Deadline, BPA shall update the
tables in this section 2.4.1 to show Port Angeles' Tier 2 Short -Term
Rate election for the corresponding Purchase Period.
2.4.1.1 Alternative A Customer Planned Load Not Otherwise
Served
If Port Angeles elects this alternative, then Port Angeles
shall purchase Firm Requirements Power priced at Tier 2
Short -Term Rates to serve all of Port Angeles' Above -RHWM
09PB- 13093, Port Angeles 7 of 11
Revision No. 1, Exhibit C, Purchase Obligations
Load that Port Angeles has not otherwise agreed to serve
with:
(1) Firm Requirements Power purchased at other Tier 2
Rates, or
(2) the amounts of Dedicated Resources, stated in the
table below, that Port Angeles shall apply during the
Purchase Period to serve its Above -RHWM Load. If
Port Angeles purchases power at Tier 2 Load Growth
Rates, then these Dedicated Resource amounts shall
not exceed the amounts stated in the table in
section 2.2.3.3 of this exhibit.
Purchase Period Dedicated Resource Elections
Fiscal Year 2012 2013 2014 2015 2016
Election 0.000 0.000 0.000
Fiscal Year 2017 2018 2019 2020 2021
Election
Fiscal Year 2022 2023 2024 2025 2026
Election
Fiscal Year 2027 2028
1 Election
Note: Insert amounts in Average Megawatts rounded to
three decimal places for each year of the applicable Purchase
Period.
2.4.1.2 Alternative B Limited Amounts
If Port Angeles elects this alternative, then Port Angeles
shall purchase Firm Requirements Power at Tier 2 Short
Term Rates to serve Port Angeles' Above -RHWM Load that
Port Angeles has not otherwise agreed to serve with Firm
Requirements Power purchased at other Tier 2 Rates;
provided however, that amounts purchased at Tier 2 Short
Term Rates shall not exceed the amounts (including zero
amounts) stated in the table in section 2.4.1.3 of this exhibit.
Port Angeles agrees to serve any of its remaining Above
RHWM Load with power other than Firm Requirements
Power.
2.4.1.3 Tier 2 Short -Term Rate Elections
If Port Angeles elects alternative (A) above, then BPA shall
indicate that election by adding an "X" to the table below for
each year of the applicable Purchase Period. If Port Angeles
elects alternative (B) above, then BPA shall indicate that
election by adding amounts (in Average Megawatts rounded
to three decimal places) to the table below for each year of the
applicable Purchase Period.
09PB- 13093, Port Angeles 8 of 11
Revision No. 1, Exhibit C, Purchase Obligations
Tier
Fiscal Year
Election
Fiscal Year
Election
Fiscal Year
Election
Fiscal Year
Election
2 Short -Term Rate Table
2012 2013 2014
X X X
2017 2018 2019
2022
2027
2023
2028
2024
2015 1 2016
2020 2021
2025 1 2026
2.4.2 Right to Reduce Tier 2 Short -Term Rate Purchase Amounts
2.4.2.1 Notice
If Port Angeles notifies BPA in writing by October 31 of a
Rate Case Year, then Port Angeles may reduce, in equal
amounts for all hours of the year, some or all of the amounts
of Firm Requirements Power that Port Angeles is obligated to
purchase at Tier 2 Short -Term Rates. The reduction may
take effect in either year of the upcoming Rate Period and
shall be effective for the remaining duration of the applicable
Purchase Period(s). In its written notice, Port Angeles shall
state the amount of the reduction and the date the reduction
shall take effect. Port Angeles shall replace all reduced
Tier 2 Short -Term Rate purchase amounts with amounts of
Dedicated Resources applied pursuant to section 3.3 of the
body of this Agreement.
2.4.2.2 Charges to Reduce Purchase Amounts
Port Angeles shall be liable for payment of any costs that
apply as a result of Port Angeles reducing, under
section 2.4.2.1 of this exhibit, the amounts of Firm
Requirements Power that Port Angeles is obligated to
purchase at Tier 2 Short -Term Rates. Such costs shall be
those that BPA: (1) is obligated to pay and will not recover
from Port Angeles under Tier 2 Short -Term Rates as a result
of the reduction, and (2) is unable to recover through other
transactions. BPA shall determine such costs, if any, during
the 7(i) Process that follows Port Angeles' notice. If BPA
determines that Port Angeles owes payment for such costs,
then Port Angeles shall pay the entire amount to BPA in no
more than 24 equal monthly amounts starting the first
month of the upcoming Rate Period. In no event shall BPA
make payment to Port Angeles as a result of Port Angeles
reducing the amounts of Firm Requirements Power that Port
Angeles is obligated to purchase at Tier 2 Short -Term Rates.
2.4.2.3 Exhibit Updates
By March 31 following Port Angeles' notice, BPA shall revise
this exhibit and Exhibit A to show Port Angeles' reduced
09PB- 13093, Port Angeles 9 of 11
Revision No. 1, Exhibit C, Purchase Obligations
Tier 2 Short -Term Rate purchase amounts and Port Angeles'
Dedicated Resource additions.
2.5 Amounts of Power to be Billed at Tier 2 Rates
2.5.1 Treatment for FY 2012 FY 2013
By March 31, 2010, BPA shall update the table in section 2.5.2 of this
exhibit, consistent with Port Angeles' elections, with amounts of Firm
Requirements Power which Port Angeles shall purchase at applicable
Tier 2 Rates for the FY 2012 FY 2013 Rate Period.
2.5.2 Amounts of Power for Subsequent Rate Periods
For each Rate Period after the FY 2012 FY 2013 Rate Period, BPA
shall establish for the upcoming Rate Period consistent with Port
Angeles' elections: (1) the planned annual average amounts of Firm
Requirements Power which Port Angeles shall purchase at applicable
Tier 2 Rates, and (2) any remarketed Tier 2 Rate purchase amounts in
accordance with section 10 of the body of this Agreement. By
March 31, 2013, and by March 31 of each Rate Case Year thereafter,
BPA shall update the table below with such amounts for each year of
the upcoming Rate Period.
I Annual Amounts Priced at Tier 2 Rates (aMW) I
I Fiscal Year 1 2012 I 2013 I 2014 1 2015 I 2016 I 2017 I 2018 I 2019 I 2020
Tier 2 Short -Term 0.000 0.000
Rate
Remarketed
Amounts
I Fiscal Year I 2021 I 2022 I 2023 I 2024 I 2025 I 2026 I 2027 I 2028
No Tier 2 at this
time
Remarketed
Amounts
Notes:
1. List each applicable Tier 2 rate in the table above. For the first applicable Tier 2 rate
replace No Tier 2 at this time with the name of the applicable Tier 2 rate. For each
additional Tier 2 rate, add a new row above the Remarketed Amounts row. If Port
Angeles elects not to purchase at Tier 2 rates, then leave No Tier 2 at this time in the
table and leave the remainder of the table blank.
2. Fill in the table above with annual Average Megawatts rounded to three decimal places.
3. MONTHLY PF RATES
Applicable monthly Tier 1 and Tier 2 Rates are specified in BPA Wholesale Power
Rate Schedules and GRSPs.
09PB- 13093, Port Angeles 10 of 11
Revision No. 1, Exhibit C, Purchase Obligations
4. REVISIONS
BPA shall revise this exhibit to reflect Port Angeles' elections regarding service to its
Above -RHWM Load and BPA's determinations relevant to this exhibit and made in
accordance with this Agreement.
(PSW -S PM CUST_SKG PORT ANGELES PSC_2009_PF_Regional Dialogue Exh C_Rev #1 PurPerl Pa_13093_20100315_Exh C_Rev #1_Final doe) 03 /15/2010
09PB- 13093, Port Angeles 11 of 11
Revision No. 1, Exhibit C, Purchase Obligations