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HomeMy WebLinkAbout000343 Original ContractCITY OF 'w 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, Page -2 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. kN J