HomeMy WebLinkAbout000343 Original ContractCITY OF
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April 18, 2012
Dear Mr. Norlund:
W A S H I N G T O N U.S.A.
City Manager's Office
Harold Norlund, Mill Manager
Nippon Paper Industries USA Co.
1902 Matine Diive
Port Angeles, WA 98363
Re: Agreement For Power Service Billing
As you are aware, on October 1, 2011, the Bonneville Power Administration
"BPA implemented a new and untried rate design and billing method for the power
sold to the City. BPA's new rate design has fundamentally changed the way the City
provides service to your plant pursuant to the Industrial Transmission Rate..
To help avoid potential confusion or uncertainty caused by BPA's new rate
structure on September 30, 2011, 'Nippon and the City entered into a letter agreement.
The agreement was intended to clarify how the City's and Nippon's respective Contract
Demand Quantities will be used in calculating Nippon's electric bill. We believe the
letter agreement has been mutually beneficial and may continue to be mutually,
beneficial. Therefore, we would like to establish another temporary billing protocol for
the bills rendered for service during the period May 1, 2012 through September 30, 2012.
The protocol is set out below.
Billing Protocol
Phone: 360- 417 -4500 Fax: 360- 417 -4509 TTY: 360- 417 -4645
Website. www.cityofpa.us Email. citymanager @cityofpa.us
321 East Fifth Street P.O Box 1150 Port Angeles, WA 98362 -0217
City of Port Angeles
Record #000343
In any month in which the City's Demand as determined by BPA is less that the City's
CDQ, the City will add to Nippon's CU CDQ the positive difference, if any, between the
City's CDQ and its Demand as determined by BPA for such month when calculating
Nippon's Demand Charge for such month.
It is our intention to evaluate both the efficacy and the need for this billing protocol prior
to its expiration date.
Finally, the City and Nippon intend to continue to work in good faith to realize short and
longer term power purchase, demand response and wind integration opportunities, that
may be offered by BPA that have the potential to provide benefit to the City and Nippon,
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April 18, 2012
utilizing Nippon's unique load characteristics and the City's status as a public, municipal
utility.
If you find the foregoing acceptable, please sign one copy of this letter agreement and
return it to me.
Very truly yours,
CITY OF PORT ANGELES
By:
Kent Myers, ty ana
Approved:
By:
Harold Norlund, Mill Manager
Nippon Paper Industries USA Co.
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