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HomeMy WebLinkAbout5.150 Original Contractjro Robert Morgan, Resident Manager Crown Zellerbach Corporation PO Box 271 Port Angeles, Wa. 98362 Dear Mr. Morgan: TERM OF AGREEMENT 'l _L __J y Attachment: Original Contract 140 WEST FRONT ST. P.O. BOX 1150 PORT ANGELES, WASHINGTON 98362 June 21, 1983 The City of Port Angeles anticipates that non -firm energy will be available beyond the expiration pf our current non -firm agreement. In order that we can continue delivering non -firm energy, the Term of Agreement section of our agreement dated January 28, 1983 is deleted and replaced with the following: This agreement shall become effective at 2400 hours local time on the date of execution of this agreement and shall remain in full force until 2400 hours local time on October 31, 1983. It is understood that the agreement may be subject to such changes as may be mutually agreed upon by both parties or to such changes as may be required by Bonneville Power Administration. If this amendment is acceptable, please sign and date one copy of this letter and return it to us. Sincerely, J/7,./.& FOR C OWN ZELLERBA 4 RPOR TION DATE af, VS3 DD /clr /Z7 R? Mayor, City of Port Angeles Jr v Iry LIGtO Crown Zellerbach Corporation Attn: Bob Morgan, Resident Manager PO Box 271 Port Angeles, Wa. 98362 Dear Bob: 9 )14,er-l• For Crda Zellerbacl(Corporation A /4 p3 Date GAB/clr cc: Lew Cosens, City Light Director CITY OF PORT ANGELES 240 WEST FRONT ST P 0 BOX 1150 PORT ANGELES, WASHINGTON 98362 PHONE (206) 457 -0411 November 16, 1983 We have recently been notified by the Bonneville Power Administration (BPA) that non -firm energy is now available for purchase at spill rates. Due to the BPA wholesale power rate increase effective November 1st, we must now purchase non -firm energy under Schedule NF -83. Our recent non -firm energy agreement dated January 28, 1983 and amended June 21, 1983, expired October 31, 1983. I propose that the City continue to sell Crown Zellerbach non -firm energy under the provisions of the January 28, 1983 agreement, except for the price, until such time that a new agreement can be developed and ratified by our City Council. In the interim, we will provide non -firm energy to Crown Zellerbach as it is available, for use in your 7,000 kilowatt electric steam boiler at your request. The rate for non -firm spill energy shall be 13.3 mills per kilowatt hour. By counter signing this letter, Crown Zellerbach agrees to the terms of this letter and that non -firm purchases occurring before the signing of the new agreement shall be subject to the terms and provisions of the new agreement. It is understood that this interim arrangement may be terminated at any time by either party. Sincerely, Grego AL Booth Power Manager 5.150 NONFIRM ENERGY SALES AGREEMENT This AGREEMENT is executed on February 5, 1985 by the CITY OF PORT ANGELES (City) and the CROWN ZELLERBACH CORPORA- TION (Company). WITNESSETH: WHEREAS the City is a municipal corporation distributing electric power and energy in Port Angeles, Clallam County, Washington; and: WHEREAS the City provides firm electric power service to the Company's Port Angeles paper mill; and WHEREAS the City has available to it from time to time nonfirm energy for use at qualifying facilities which have an alternate, nonelectric fuel source; and WHEREAS the City desires to sell such nonfirm energy; and WHEREAS the Company desires to purchase such energy for use at it's qualifying facility, Now, THEREFORE, the parties hereto mutually agree as follows: 1. TERM OF AGREEMENT: This agreement shall become effective at 2400 hours local time on the date of execution of this agreement and shall remain in full force until terminated by either party with 30 days written notice. 2. FACILITIES: 6950 kW, 2300 volt, electric steam boiler (the facility) located at the Company's Port Angeles paper mill. 3 AVAILABILITY: Subject to availability, as set forth below, the City will make nonfirm energy available to the Company at the Company's re- quest, to serve the facility. By this agreement, the Company understands that the City does not guarantee that it has or will have available at any time any nonfirm energy for delivery to the Company. The determi- nation made by the City of the availability of such energy for sale shall be final and conclusive. Upon notification by the City that nonfirm energy is no longer available, the Company shall discontinue the use of the facility not later than the end of the last hour of nonfirm energy avail- L ability If the Company is unable to cease to utilize the nonfirm energy within the required time, the Company will be subject to a charge for unauthorized use of energy. 4 SCHEDULING: The City shall notify the Company of the periods of availability of nonfirm energy and the price thereof. During any such period when nonfirm energy is available, by 1100 hours local time on each day which the City and the Com- pany both observe as a regular workday, the Company shall provide the City with the estimated energy requirements of the facility through the next workday, and, at the City's re- quest, the actual metered quantities of energy consumed during the previous workday. The City shall make reasonable efforts to provide notice to the Company of anticipated changes in periods of availability or rates of nonfirm energy. However, the Company shall indem- nify and save the City harmless against any and all claims, demands, suits, or other forms of liability arising out of, or connected with, this contract provided that the City has taken reasonable steps to provide such notification. 5. METERING: The City shall meter the facilities power consumption at the point where the facility is served from the Crown Zellerbach mill main buss. kWh, kvarh, and one hour integrated demands will be metered. kWh, kvarh, and demand meters will be read on the first working day of the month at approximately 1000 AM or at any prudent time for the establishment of kWh and kvarh readings for rate changes. If actual readings are not taken at the precise time of a rate change, readings will be estimated by use of hourly recorded demand readings. It shall be the responsibility of the Company to provide a moisture, dust, and temperature controlled atmosphere that is acceptable to the City for such metering equipment. 6. BILLING: The City shall prepare and deliver to the Company a monthly billing for nonfirm energy on or before the 10th day of the following month for the previous months energy consumption. kWh and kvarh readings will be considered between the actual reading times while hourly demands will be considered from 0000 hours on the first day of the month to 2400 hours on the last day of the month. If metering information is unavailable for any reason, estimates of consumption will be made using all available means, including 2 7. RATE: The rate for purchase of nonfirm energy from the City shall be in accordance with the following formula: 8. information from the Company's metering equipment. The Com- pany will continue to measure energy consumption of the facility and shall provide such data to the City upon request. The point of delivery of nonfirm energy to the Company shall be at the Bonneville Power Administration Port Angeles substa- tion, where the 69,000 volt transmission facilities of the Com- pany interconnect with those of the City. Nonfirm kWh consumption, as measured at the point of metering of the facility, will be subtracted from the total kWh consump- tion as measured at the point of delivery to determine kWh consumption for the firm power billing. Demand kW that occur on the hour(s) of the Company's total load peak(s) associated with nonfirm energy deliveries, as measured at the point of metering of the facility, will be sub- tracted from total kW demand as measured at the point of de- livery in order to determine peak demands for firm power bill- ing. Payments for service provided under this Agreement shall be made to the City as specified in Chapter 13.16 of the Port Angeles Municipal Code. R W(1.265- (W- 7)(.014), provided that R is greater than or equal to W multiplied by 1.135. Where R Retail Rate (expressed in mills per kilowatt hour and rounded to the nearest tenth of a mill) and Where W Wholesale Cost to the City per kilowatt hour de- livered to the Port Angeles substation (including wheeling and losses). The rate for unauthorized use of energy shall be 92 mills per kWh ($.092), or 1.1 multiplied by wholesale cost to the City, whichever is greater. ACCESS AND INFORMATION The Company shall file with the City a statement on alternative fuel cost and capacity (decremental cost statement) and revise the statement upon request of the City or at any other time if the Company desires to. The City will use the decremental cost statement as a basis for negotiating rates with it's suppli- ers, and shall not supply said statement to other parties. The Company shall provide access for the City to operate, maintain, and otherwise service the City's metering equipment as required by the City. 3 9. The Company shall provide access to the City and the City's energy suppliers at reasonable times to inspect the electrical and alternative fuel facilities of the Company. The City shall provide advance notice to the Company in arranging any inspec- tions. FIRM SERVICE: Should the Company desire to obtain firm service for the facili- ty, the Company must submit a written request for such service within 30 days after the expiration of this agreement. Subject to the availability of firm power, the City will begin firm service for such load within 90 days of receipt of application. Rates for such service will be in accordance with the rate schedule in effect for this category of service as specified in Chapter 13.12 of the Port Angeles Municipal Code. 10. RATIFICATION OF PRIOR AGREEMENT: It is acknowledged by the parties that the City has provided service pursuant to the terms of this agreement since November 1, 1983. In WITNESS THEREOF, the parties hereto have executed this Agreement. CROWN ZELLERBACH CORP. Date 2 /3 /ebs— Date 2--C fl ATTEST: oArK +r- Merri A. Lannoye, City Clerk CITY OF PORT ANGELES Title ti r Mr. Robert Morgan, Resident Manager Crown Zellerbach Corporation PO Box 271 Port Angeles, Wa. 98362 Facilities Served 140 WEST FRONT ST. P.O. BOX 1150 PORT ANGELES, WASHINGTON 98362 January 28, 1983 Dear Mr. Morgan: As you may already know Bonneville Power Administration (BPA) has available, from now through June of this year, a supply of non -firm power to offer to qualifying utility customers in the northwest. This energy, which is in excess of the elec- tric requirements of preference northwest utility customers during peak water flow periods, has historically been offered to California customers. While offered at substantially less cost than the firm -power you now purchase from the City, it must not be used to substitute such firm -power purchases. The qualifying customer must utilize this reduced quality electricity for loads which are normally fueled from non electric sources, as well as be able to schedule its use on an hourly basis. The City of Port Angeles (here and after called the "City") is pleased to be able to provide this service to Crown Zellerbach Corporation (here and after called the "Company At this time BPA has not yet completed the formal guide- lines which pertain to the sale of this non -firm energy to its utility customers. It is hoped that this letter agreement will serve to provide basic under- standing of the terms and conditions pertinent to the sale of this energy. Term Of Agreement This agreement shall become effective at 2400 hours local time on the date of execution of this agreement and shall remain in full force until 2400 hours local time on June 30, It is understood that the agreement may be subject to such changes as may be mutually agreed upon by both parties or to such changes as may be demanded by BPA. 6,950 kW, 2,300 volt, electric steam boiler (the Facility) located at the Company's Port Angeles paper mill. s. 150 4 t Availability Subject to availability, the City will make non -firm energy available to the Company to serve the Facility, and the Company shall purchase such non -firm energy pursuant to the provisions of this agreement. Upon notification by the City that non -firm energy at the spill rate is no longer available, the Company will switch to an energy source other than electricity by the end of the last hour that such notice has been given. If the Company is unable to switch to alternate fuel or unable to interupt the Facility or for any reason be unable to cease to utilize the non -firm energy within the required time frame, the Company will be subject to a charge for unauthorized use of energy. Scheduling Rates The City shall notify the Company of the periods of availability of non -firm energy at the spill rate as defined by BPA. It is understood that the Company shall not utilize non firm energy during periods other than the periods of spill or iminent spill conditions as defined by BPA. The City shall make reasonable efforts to provide notice to the Company of anti- cipated changes in periods of availability of non -firm energy. However, the Company shall indemnify and save the City harmless against any and all claims, demands, suits or other forms of liability which shall arise out of action taken or not taken by the City beyond reasonable attempts to notify the Company of such changes in periods of availibility. The Company shall provide estimates to the City relative to the magnitude and period of consumption of the non -firm energy. Metering And Billing The City shall estimate the Facility's energy consumption, based upon existing metering equipment, until such time as metering equipment of acceptable accuracy is installed. The Company will provide the City with information regarding the Company's recording equipment in connection with energy consumption by the Facility. The Company will install equipment provided by the City, necessary for the City to install the appropriate metering. It will be the responsibility of the Company to provide a moisture, dust, and temperature controlled atmosphere that is ac- ceptable to the City for such metering equipment. The Company shall provide access to such metering equipment as required by the City. Until such time that the City has available accurate metering information in connection with the Facility the City shall estimate the energy consumption of the Facility. Upon installation of the new metering equipment the City shall credit or debit the Company's account for any determined differences for consump- tion previously purchased. The Company shall pay the City for non -firm energy purchases on a monthly basis consistent with payments which are provided the City for firm power purchases. The rate for the purchase of non -firm energy from the City shall be $.0108 per kilowatt hour. The charge for unauthorized use shall be $.092 per kilowatt hour 4 for all energy consumed in connection with the Facility following the last hour that the non -firm energy was made available. Firm Service The Company recognizes that the City may be restricted in purchasing firm power from BPA for use at the Company's Facility utilizing non -firm energy, and that the City may be required to limit the amount of firm energy that the Company may desire to purchase for use at the Facility. Ratification Of Prior Agreement It is acknowledged by the parties that the City began providing service to the Company on February 1, 1983. The parties agree that such service was provided pursuant to the terms of this agreement. Provided that the above terms and conditions meet with your approval the appro- priate signatures below will finalize the agreement. FOR CROWN ZELaRBACH DATE FOR THE CITY OF PORT ANGELES, WA. DATE #4 0` 14 1 //f 3 Lew Cosens Director, Port Angeles City Light /e3