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Home My WebLink About5.406 Original Contract (2) 5.~D(:P Department of Energy Bonneville Power Administration P.O. Box 3621 Portland, Oregon 97208-3621 o Contract No. 96MS-95279 July 30, 1996 Mr. Robert J. TItus CIty of Port Angeles Department of LIght P.O. Box 1150 Port Angeles, WA 98362-0190 Dear Mr. Titus: ThIs letter agreement (Agreement) between the Bonneville Power AmmmstratIOn (BonnevIlle) and the CIty of Port Angeles, Washmgton (Port Angeles), provides for the sale by BonnevIlle of Surplus FIrm Energy to Port Angeles. Bonneville and Port Angeles are heremafter referred to mmvldually as "Party" and collectIvely as "Parties." The Surplus Firm Energy purchased by Port Angeles under thIs Agreement shall be used to serve the electnc load of Rayomer, Inc. (Rayomer). Therefore, Bonneville proposes the followmg: 1. TERM. ThIs Agreement, when executed by the PartIes, became effectIve on the hour ending (HE) 0100 hours on July 1, 1996 (Effective Date), and shall contmue in effect untIl HE 2400 hours on December 31, 1997, unless termmated earlier as provided herem. All oblIgations incurred hereunder shall be preserved until satisfied. 2. UNDERLYING PROVISIONS. Unless otherwIse specIfied m thIs Agreement, all admmlstrative and operational provisions reqmred to perform this Agreement shall be as described in the Power Sales Contract. Such prOVIsions shall include prOVISIOns relating to delivery, scheduhng (If applIcable), billing, payment, metering, access to facilities, dispute resolution, uncontrollable forces, contmuity of serVIce, and contract mterpretatIOn. Nothing included in or omItted from thIs Agreement m any way alters or prejudices the rights or oblIgatIOns of the PartIes as set forth m Amendatory Agreement No.7 to the Power Sales Contract. 3. DEFINITIONS (a) "Power Sales Contract" means the firm power sales contract between BonnevIlle and Port Angeles, Contract No. DE-MS79-81BP90450, as that contract may be amended or replaced. 2 (b) "Rayonier Agreement" means the power sales agreement between Rayomer and Port Angeles. (c) "Surplus FIrm Energy" means surplus firm energy made aVaIlable by Bonneville to Port Angeles pursuant to section 5 of thIS Agreement. 4. POINT OF DELIVERY. Surplus FIrm Energy shall be made aVaIlable by BonneVIlle at the Rayomer pomt of delivery, unless otherwIse agreed. 5. RATES AND AMOUNTS SOLD. Beginning on the EffectIve Date, and continuing for the remammg term of this Agreement, BonneVIlle shall make available, and Port Angeles shall purchase, Surplus FIrm Energy as follows: (a) Rate. The monthly rates for Surplus Firm Energy shall be m accordance WIth Bonneville's Surplus FIrm Power (SP-93) rate schedule or ItS successor, and shall be as specIfied m section 5(b). The rates for Surplus FIrm Energy shall mclude charges for transmiSSIOn serVIce, transfer serVIce (If applIcable), and assocIated losses over the Federal ColumbIa River Transmission System to the pomt(s) of delivery. The rates do not include any load shapmg, load regulation, or reactIve power charges. Port Angeles agrees to pay BonnevIlle for such charges, If any, based on Port Angeles' total load at the pomt(s) of delIvery, as further described in BonneVIlle's General Rate Schedule Provisions. (b) Monthly Amounts of Surplus Firm Energy and Rate. The hourly rate of delivery and the monthly amounts of Surplus Firm Energy shall not exceed the amounts specified below. MonthlYear July 1996 August 1996 September 1996 October 1996 November 1996 December 1996 January 1997 February 1997 March 1997 Apru1997 May 1997 June 1997 July 1997 August 1997 September 1997 October 1997 Hourly Rate Monthly Amounts of Delivery of Surplus Firm ............... (MW) .. _. ~~.~.~gy (~t 21 W!.QQ.o. .............. . t 21 1 ~!.~.~.4 21 ~~Ll~9 ..................~.~...................... ... 1 ~!.~.1~... ..................~.~.....................:....... ..... . 15 ,.1 ~.9...... 21 . 15,~.~.1....... :::::::::.:::::::IL:::::.:...:::.::.:::::.:::::::..:.......... 15,624 ..................~.~............ ........~....................... .14, 112 21 i 15,624 .::::::::::::::::IL..:' . .....:.::::::::. . :::::::::::::J~,099 21 . ...}.~!.~.~.4 21 }.~).~.o 21 1.~!.~.~.1... ..................~.~.. ..... ............... ....}.?!.~24 ...................... 21 : . ..}.~J~.9. ..... .... 2;1 _ .. ..... ...........}.~,645 . ................._... ...... .................. Surplus Firm Energy Rate ....J.$f.l\1Wh>......... 17.00 1700 .. ............. 1700 17.00 . ............... ..... 17.00 ... ............ 1700 1700 1700 1700 ...r......... 17.00 1700 17.00 17.00 1700 ........ ........... 1700 1700 Contract No. 96MS-95279 3 MonthlYear November 1997 December 1997 Monthly Amounts of Surplus Firm En~E.gy' (~) . ....}.?).20 ~ ?J.~.~.4 Surplus Firm Energy Rate .. .J~f.MWh) 1700 1700 (c) Delivery. BonnevIlle shall deliver the monthly amounts of Surplus Firm Energy to Port Angeles at a flat rate of delivery during all hours. DelIveries of Surplus FIrm Energy will not be scheduled. Therefore, each monthly amount of Surplus Firm Energy and the hourly rate of delIvery assocIated wIth such monthly amount speCIfied in sectIOn 5(b), as may be mollified by section 5(d), shall be deemed delIvered, and shall be deducted from the measured energy and peak amounts under the Power Sales Contract. (d) Deviations from Amounts Specified in Section 5(b). The amounts specified in sectIOn 5(b) are not take-or-pay. If, pursuant to the terms and conditions of the Rayonier Agreement, Rayonier eIther (1) prOVIdes Port Angeles and BonnevIlle with notice to reduce a monthly amount of Surplus FIrm Energy, or (2) fails to use the full amount of energy for a given month, then Bonneville shall bill Port Angeles for amounts of Surplus Firm Energy as calculated m section 5(e). (e) Calculation of Monthly Amounts of Surplus firm Energy to be U sed for Billing Purposes. Following the end of each calendar month, BonnevIlle shall determine the monthly amount of metered energy at the Rayonier point of delivery. (1) If such monthly amount of energy is greater than the monthly amount shown m section 5(b) (as may be mollified pursuant to section 5(d)(1)), then BonnevIlle shall bIll Port Angeles for the full amount shown in section 5(b) (or the modified amount) for that month. The PrIOrity FIrm Power demand charge shall be calculated using measured demand that occurs durmg the hour of the Monthly Federal System Peak Load, less the hourly rate of delIvery shown m section 5(b) (unless the amount of energy has been mollifIed, m which case the hourly rate of delIvery to be used shall be equal to the amount of mollified energy dIVIded by the number of hours in the month). (2) If such monthly amount of energy IS less than the monthly amount shown m sectIOn 5(b) (as may be modified pursuant to section 5(d)(1)), then Bonneville shall deem that all of the energy IS Surplus FIrm Energy and Bonneville shall bill Port Angeles for such energy at the rate specified III this Agreement. BonnevIlle shall calculate an hourly rate of delIvery by llivIlling such monthly amount of energy by the number of hours III the month. The Priority FIrm Contract No. 96MS-95279 4 demand charge shall be calculated m the same manner as described in sectIOn 5(e)(1). 6. PAYMENT. Each monthly charge under this Agreement shall appear as a separate lme Item on Port Angeles' wholesale power bIll. 7. TERMINATION OF AGREEMENT. If the Rayonier Agreement termmates pursuant to the terms and condItIons that allow for termination under that agreement, then thIS Agreement shall termmate on the same day that the Rayomer Agreement termmates. 8. AMENDMENT OF RAYONIER AGREEMENT. If Rayomer and Port Angeles desire to amend the Rayomer Agreement for any reason, then Port Angeles shall notify BonnevIlle m a timely manner. Port Angeles agrees that it shall not sIgn any amendment to the Rayomer Agreement unless approved by BonnevIlle in wntmg. If the foregomg terms are acceptable to Port Angeles, please sIgn and return one original of this Agreement. The remaining original IS for your files. Sincerely, ~~ Account ExecutIve Name (Prmt/Type) Charles W. Forman Jr. ACCEPTED: CITY OF PORT ANGELES, WASHINGTON By 5%1~ Name .:RDBE:n:T J, Tt7VS (Pnnt/Type) Title C iT" U GHT 01 R.CCTofL. Date 7/30/96 . (MCPLAN-MPSD-W \MPSD\CT\95279 DOC) Contract No. 96MS-95279 5.<./o(p Department of Energy Bonneville Power Administration po. Box 3621 Portland, Oregon 97208-3621 POWER BUSINESS LINE February 26, 1997 In reply refer to: PSW1700 Amendatory Agreement No.1 to Contract No. 96MS-95279 Mr. Robert 1. Titus City of Port Angeles Department of Light P.O. Box 1150 Port Angeles, W A 98362-0190 Dear Bob: This letter agreement (Amendatory Agreement) between the Bonneville Power Administration (Bonneville) and the City of Port Angeles (Port Angeles), hereinafter sometimes referred to mdividually as "Party" and collectively as "Parties," amends the Surplus Firm Energy Sale Agreement, Contract No. 96MS-95279 (Agreement), executed on July 30, 1996. The purpose of this Amendatory Agreement is to reduce the Surplus Firm Energy Rate of $17 per megawatthour ($17/MWh) to $15 .60/MWh for the months of October 1996 through October 1997. This reduction is due to the removal of the embedded base transmiSSIOn component ($1.00 per kilowattmonth) from the power rate. The Parties agree that it is more appropriate for Port Angeles to pay separately for the transmission of the Surplus Firm Energy purchased under the Agreement. Therefore. BonneVille will charge for transmission of the Surplus Firm Energy under Port Angeles' Network Transmission Agreement (Contract No. 96MS-96090). These charges will mclude the transmission base charge and the transmiSSion load shaping charge. Therefore, Bonneville proposes the following terms and conditIOns: 1. EFFECTIVE DATE. This Amendatory Agreement. when executed by the Parties. shall become effective at hour ending (HE) 0 I 00 on October I, 1996. 2. AMENDMENT OF AGREEMENT. The Agreement IS amended as follows (a) SectIOn 5(a) IS deleted and replaced hy the followmg. '"(a) Rate. The monthly rates for Surplus Firm Energy shall be m accordance with Bonneville's Firm Power Products and SerVIces (FPS-96) rate schedule or ItS successor, and shall be as specified in section 5(b) The rates for Surplus Firm Energy do not ll1c1ude charges for transmISSion service, transfer serVIce (1 f 2 applicable), associated losses over the Federal Columbia River Transmission System to the point(s) of delivery, power load shaping, load regulation, or reactive power charges. Port Angeles agrees to pay Bonneville for such charges, if any, based on Port Angeles' total load at the point(s) of delivery, as further described in Bonneville's General Rate Schedule Provisions." (b) Section 5(b) is deleted and replaced by the following: "(b) Monthly Amounts of Surplus Firm Energy and Rate. The hourly rate of delivery and the monthly amounts of Surplus Firm Energy shall not exceed the amounts specified below. MonthlYear July 1996 August 1996 September 1996 October 1996 November 1996 December 1996 January 1997 February 1997 March 1997 April 1997 May 1997 June 1997 July 1997 August 1997 September 1997 October 1997 November 1997 December 1997 ... .Ho.uriy..Ra"tc.....i......Mooiiily. Xiiio"iiois"o{" .,.... S'urpfli-S-'F'irm' .. of Delivery : Surplus Firm Energy Energy Rate ............ .JMWl........~ .......... .................. .............. (M~~l...;.......J~~W~}.......... 21 10,000 17.00 . ...... ........:tC.................T........ ......... ....T5.~624................. ........~. ...... .....If.oo............. .. . ........ "':ir'" ....... .......:..................... "1'S'J2C)"" ........ ...... ......:..............T;jjm................ ~!:jII~g~::::I~;I~:: ......... .. 2T ... ........ ............ .... ..... "'T5'~624"''''''''''''' .... ... .. .... ....TS:.6tf ............ . . ..... .........~r.mm.r:......I~]~~;n;i~ ..... .... '21'" ..... ..~...... ...... .. i\624 .............. . . ......... B:6C)" ....... . .. m .... .11 . .. mm:m ......u:~~~m.f~.I~m 2 C" ...... .... ...... ... . . ... fSJ 20 ...... ... .. .. ......... . "YS:'60 ..... .. . . m .... ~ 1.......~mIHif ..:lH~m:,.. AA No. 1 to Contract No. 96MS-95279 3 If the foregoing terms are acceptable to Port Angeles, please sign and return one copy of this Amendatory Agreement to me. The remaining copy is for your files. Sincerely, c1J ~I- Charles W. Forman Jr. Account Executive Name Charles W. Forman, Jr. (Print/Type) ACCEPTED: CITY OF PORT ANGELES By ~ Name 'RoBtarLT J. 11 'us (Print/Type) Title DE.PUTY {)I/U~C.TOA... DF UTILITY SEfl.II/C~S Date ZIZB!q 7 AA No 1 to Contract No 9GMS-95279 MUTUAL TERMINATION OF POWER SALES AGREEMENT This Mutual Termination of Power Sales Agreement, by and between Rayonier Inc., a North Carolina corporation (hereinafter "Rayonier"), and the City of Port Angeles, a municipal corporation of the State of Washington (hereinafter the "City"), is effective as ofthe 1st day of March, 1997 (the "Termination Agreement"). RECITALS A. Rayonier and the City entered into a Power Sales Agreement effective July 1,1996 ("the Power Agreement"), wherein the City agreed to sell to Rayonier and Rayonier agreed to purchase from the City, surplus energy purchased by the City from the Bonneville Power Administration at a special rate. B. The parties desire to provide for an orderly termination and set forth their respective obligations remaining under the Power Agreement. AGREEMENT The parties hereto mutually agree as follows: 1. Rayonier shall continue to purchase surplus energy from the City at the rates and under the provisions of the Power Agreement through February 28, 1997. 2. The Power Agreement shall terminate effective HE 2400 hours February 28, 1997. 3. Each party hereby releases the other from all obligations, claims, or liabilities for performance under the Power Agreement after the date of termination. Both parties shall remain liable, under the terms of the Power Agreement for all energy delivered thereunder on or before February 28, 1997, including, but not limited to Rayonier's obligation to pay for energy supplied on or before February 28, 1997. 4. The laws of the State of Washington shall govern this Termination Agreement. IN WITNESS WHEREOF, the parties have executed this agreement on the day and year first above written. RA YONIER INC. CITY OF PORT ANGELES ~ By: Ro ert 1. TItu , CIty LIght DIrector - 1 -