HomeMy WebLinkAbout2003-07-14 City Council (3)TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: UTILITIES
DATE:JULY 14, 2003 CMR:343:03
SUBJECT:ADOPTION OF A RESOLUTION APPROVING INCREASES IN
PALO ALTO’S CONTRIBUTION COMMITMENT LEVELS FOR FY
2004, 2005 AND 2006 TO THE FUNDING OF OPERATION AND
MAINTENANCE (O&M) FOR THE CENTRAL VALLEY PROJECT
POWER FACILITIES AND AUTHORIZING THE CITY MANAGER
TO EXECUTE EXHIBIT C, REVISION 6 TO THE AGREEMENT
RECOMMENDATION
Staff is requesting Counci! authorization to increase the portion of Western bills paid by
the City to be used to fund Operation and Maintenance. Staff recommends that the City
Council adopt the attached resolution authorizing the City Manager to sign the attached
Exhibit C, Revision 6 to Contract No. 96-SNR-00110 with Western Area Power
Administration and U.S. Bureau of Reclamation that effects an increase in the O&M
funding (Exhibit C) from $3,800,000 to $4,900,000 for FY 2004, maintains $4,400,000
for F Y 2 005, and establishes $ 5,600,000 a s the contribution commitment 1 evel for F Y
2006.
BACKGROUND
The City receives the majority of its electricity supply fi-om the Western Area Power
Administration (Western). About one half the power marketed by Western is generated by
Central Valley Project (CVP) hydroelectric projects operated by the Bureau of
Reclamation (Reclamation). A variety of money-saving investment and spending
opportunities arise in the maintenance, replacement and addition of equipment for the
CMR.34~:0~Page 1 of 4
CVP and at Western. To take advantage of these opportunities, Palo Alto participates in
the O&M funding program along with several dozen other Western customers. The City
entered into the Agreement for the Funding of Operations and Maintenance (O&M) for
the CVP Power Facilities on February 10, 1997 (CMR: 138:97). Through directing its
normal Western bill payments toward the O&M funding pro~am, the City funds various
operations and maintenance efficiency improvements by Reclamation and Western. The
improvements being pursued with this funding include replacing water turbines at Carr
and New Melones power plants, replacing aging circuit breakers at Trinity power plant
and implementing software upgrades to enable Western’s marketing of power post 2004.
These improvements will result in short term and long-term savings related to continuing
and increasing the City’s access to low-cost federal power that Western markets to the
City under !ong-term supply a~eements.
DISCUSSION
In February 2003, Council approved increasing Palo Alto’s funding of the Agreement for
FY 2003, 2004 and 2005 (CMR 106:03 February 3, 2003, included as Exhibit A). This
request is an annual update for Palo Alto’s funding of the Agreement. This request covers
the three-year rolling period FY2004, 2005 and 2006.
The exhibits to the O&M funding agreement are updated from time to time, as the level
of federal funding changes and as the level of activity changes in the associated Western
and the Bureau of Reclamation pro~’ams.
This table shows Palo Alto’s share of Western’s and the Bureau of Reclamation’s
minimum requested funding levels of the O&M funding a~eement. The right hand
column shows the level of contribution commitment recommended by staff.
Federal Fiscal Year Prior Funding Commitment Revised Minimum Funding I Revision 6
Commitment [ Contribution Commitment
2004 [ $3,800,000.00 [$4,853,642.05 [54,900,000.00
2005 154,400,000.00 I $4,348,523.58 i $4,400,000.00
200G [~A [ SS,S88,33G.09 I SS,~O0,O00.O0
It is important to note that those dollar amounts in the minimum column would only be
adequate to fund Palo Alto’s share of several beneficial and vital projects if all 37 other
CMR:343:03 Page 2 of 4
participants i n the O &M funding agreement are able t o direct their a ssigned s hares o f
their Western bills. The amount for O&M funding increases in 2004 to cover software
and staffing costs associated with Western taking over more power scheduling and
reliability responsibilities that, in prior times, were handled by PG&E. The amount
requested for the new third year of the series (2006) is needed to handle O&M and
Capital Projects including replacing the water wheels at Carr and New Melones power-
plants with more efficient low maintenance models.
The funding or spending of money on Western and Reclamation power O&M does not
impact the volume, timing or temperature of water flows in rivers. The economics of
projects funded by the O&M program are attractive under the full range of river flows
under consideration by the Department of Interior.
This contract is not a commodity purchase agreement; it is a bill allocation agreement
under the City of Palo Alto’s existing Western commodity purchase agreement.
RESOURCE IMPACT
There is no net resource impact associated with increasing the amount of the Western bill
that is dedicated to the O&M funding program. Failure to increase the allocation of
Western bill payments toward the O&M funding program will likely result in an increase
in the cost of power to the City in the long-term.
There is no impact to the Palo Alto adopted 2003-04 Adopted Budget and 2004-05
Adopted-In-Concept Budget since those budgets appropriated resources to this project in
the amount of $4,900,000 and $4,400,000; respectively. Funding for the Fiscal Year
2005-06 in the amount of $5,600,000 will be included in the Electric Fund budget in
2005-06.
POLICY IMPLICATIONS
This recommendation is consistent with the Council approved Utilities Strategic Plan to
preserve a supply cost advantage compared to the market price (Strategy 2).
CMR:343:03 Page 3 of 4
ENVIRONMENTAL REVIEW
Approving an increase in the O&M funding contract does not constitute a project for the
purpose of the California Environmental Quality Act.
ATTACHMENTS:
A.Resolution of the Council of the City of.Palo Alto Approving Increases in Palo Atto’s
Contribution Commitment Levels For FY 2004, 2005, and 2006 To The Funding of
Operation and Maintenance for the Central Valley Project Power Facilities and
Authorizing the City Manager To Execute Exhibit C~ Revision 6 To The A~eement
B. CMR:106:03 "Approving Increases In Palo Alto’s Contribution Commitment Levels
For FY 2003, 2004 And 2005 To The Funding Of Operation And Maintenance For
The Central Valley Project Power Facilities And Authorizing The City Manager To
Execute Exhibit C, Revision 5 To The A~eement"
C. Exhibit C Revision 6 Individual Customer Conm~itment and Contribution
PREPARED BY:
TOM rC BAT
St. Resource Originator
DEPARTMENT HEAD:
ULRI!
Lor of Utilities
CITY MANAGER APPROVAL:
EML~-L~Y H~SON
Assistant City Manager
CMR:343:03 Page 4 of 4
II
II
SECTION 2. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act, and therefore no environmental
assessment is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Mayor
City Manager
Senior Asst. City Attorney Director of
Administrative Services
Director of Utilities
030707 syn 0072308
2
City of Palo Alto
City Manager’s ep.or
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:FEBRUARY 3, 2003 CMR:106:03
SUBJECT:APPROVING INCREASES IN PALO ALTO’S CONTRIBUTION
COMMITMENT LEVELS FOR FY 2003, 2004 AND 2005 TOTttE
FUNDING OF OPERATION AND MAINTENANCE FORTIlE
CENTRAL VALLEY PROJECT PO~,VER FACILITIESAND
AUTHORIZING THE CITY MANAGER TO EXECUTE EXtBBIT
C, REVISION 5 TO THE AGREEMENT
REPORT IN BI~EF
This report requests Council action to approve increasing the allocation of Palo Alto’s
rega,dar Western Area Power Administration (Western) power bill payments toward the
Operation and Maintenance (O&M) funding contract for the Central Valley Project
(CVP). Through directing its normal Western bill payments toward the O&M funding
program, the City funds various operations and maintenance efficiency improvements by
the Bureau of Reclamation (Reclamation) and Western at no increased cost to the City.
These improvements will result in short term and long-term savings related to continuing
and increasing the City’s access to low-cost federal power that Western markets to the
City under long-term supply agreements.
This contract is not a commodity purchase agreement; it is a bitl allocation agreement
under the City of Palo Alto’s existing Western commodity purchase agreement.
CMR:106:03 Page I of 4
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to sig-n the attached
contract that effects an increase in the O&M funding (E.xhibit C) to $2,200,000 for !aY
2003, $4,900,000 for FY 2004, and $4,400,000 for FY 2005.
BACKGROUND
The City receives the majority of its electricity supply from Western. About one half the
power marketed by Western is generated by Central Valley hydroelectric projects
operated by the Bureau of Reclamation. A variety of money-saving investment and
spending opportunities arise in the maintenance, replacement and addition of equipment
for the CVP and at Western. However, reductions in federal budgets have put significant
constraints on Western and Reclamation’s ability to pursue economic opportunities to
maintain and improve the efficiency of the CVP. In order to take advantage of these
opportunities the City, along with several dozen other Western customers, has entered
into an agreement for the funding of O&M for the CVP power facilities (CMR: 138:97
on February 10, 1997 Attachment A).
Staff has been allocating a portion of the regular Western power bill payments to the
O&M funding program to pursue value preserving and value-creating projects.
example, the O&M contract has funded replacement of obsolete equipment and the
removal of constricting deposits from the Spring Creek water tunnel in order to increase
water flow and consequently power and energy from the Spring Creek power plant. All
amounts allocated by the City to the O&M funding program are credited back to the City
in the City’s next monthly power bill. Therefore, the City does not incur any additional
cost. Instead, the City realizes substantial sh0rt-term and long-term cost savings due to
increased efficiency of CVP operations.
DISCUSSION
The required O&M funding program contribution levels depend on the amount of federal
spending authority approved for Western and Reclamation and on the economic
opportunities for improvements above the baseline federal funding level. The exhibits to
the O&M funding agreement are updated from time to time, as the level of federal
funding changes and as the level of activity changes in the associated Western and
CMR:I06:03 Page 2 of 4
Reclamation programs. Staff is requesting Council authorization to increase a portion of
Western bills paid by the City to be used to fund O&M.
This table shows Western’s and Reclamation’s minimum requested change in the funding
levels of the O&M funding agreement.
IFederalFiscalYear
2003
20O4
2005
P~0rFunding Commitment l Revised Funding Co~mitment
$I,500,000.00 $2,126,998.80
$3,800,000.00 154,853,642.05.
I NA 154,348,523.58
It is important to note that those dollar amounts in the right hand Column would only be
adequate to fund Palo Alto’s share of several beneficial and vital projects if all 37 other
participants in the O&M funding agreement are able to direct their assigned shares of
their Western bills.
The revised O&M funding levels over the next couple of years will enable the City and
other customers to fund several O&M projects:
Replacement of aging and obsolete equipment to maintain service: Folsom
generator unit 1, Trinity generator circuit breakers, Shasta generator digital
governors
o Increase in CVP reliability, efficiency and output by replacing the water turbines
(runners) at New Melones and Carr power plants
o Investment in software and equipment needed to market the CVP output in the
post 2004 environment: California Independent System Operator (CAISO)
compliant meters and load scheduling and accounting software for Western.
RESOURCE IMPACT
There is no net resource impact associated with increasing the amount of the Western bill
that is dedicated to the O&M funding program. However, if the timing of a transaction
spans two fiscal periods an increase in commodity cost at year end will need to be offset
by either cost savings from the existing budget or tl-n-ough the Rate Stabilization Reserve.
These types of transactions will be communicated to Council as they occur via the fiscal
year end process. Failure to increase the allocation of Western bill payments toward the
O&M funding program will likely result in an increase in the cost of power to the City in
the long-term.
CMR:106:03 Page 3 of 4
POLICY IMPLICATIONS
This recommendation is consistent with the Council approved Utilities Strate~c PIan to
preserve a supply cost advantage compared to the market price (Strategy 2).
EN~,rIRONMENTAL REVIEW
Approving an increase in the O&M funding contract does not constitute a project for the
purpose of the California Environmental Quality Act..
Furthermore, allowing staff to direct payment toward certain Reclamation O&M projects
allows Reclamation to produce n-tore electricity through efficiency improvements at its
facilities for a given water release is consistent with Palo Alto’s Green Government
Pledge.
ATTACI-!B0[ENTS:
A. Resolution
B. Agreement for the funding of operation and maintenance for the Central Valley
Project Power Facilities
C. Exhibit C Revision 5 Individual Customer Commitment and Contribution
PREPARED BY:
DEPARTMENT HEAD:
CITY 50La_NAGER APPROVAL:
BERNARD ERLICH
Sr. Market Anal?~t
D~II of Utilities
EMIL~d HARRISON
Assistant City Manager
CMR: 106:03 Page 4 of 4
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO APPROVING INCREASES IN PAL0 ALTO’S
CONTRIBUTION CO!~ITHENT LEVELS FOR FY 2003,2004
~D 2005 TO THE FUNDING OF OPERATION ~_ND
H~.INTENf~NCE FOR THE CENT_R~_L VALLEY PROJECT POWER
FACILITIES P_\~AUTHORIZING THE CITY ~hNAGER TO
EXECUTE EXHIBIT C, REVISION 5 TO THE AGREEMENT
WHEREAS, the City of Palo Alto ("City") has negotiated
and executed severa! contracts with the Western Area Power
Administration of the U.S. Department of Energy ("WAPA"),
including An Agreement For The Funding Of Operation and
Maintenance For Central Va!ley Project Power Facilities ("0&H
Funding Contract"); and
WHEREAS, the City has provided funds to WAPA and the
U.S. Bureau of Reclamation to pay for the operation, maintenance
and improvements to the Centra! Valley Project and the Shasta
Dam, among other facilities, and the federa! agencies are
repaying these funds by crediting Palo Afro’s account for energy
received in the amount of the funds contributed in the month
fol!owing the contribution; and
WHEREAS, the parties by Exhibit C (Individual Customer
Commitment and Contribution) ("Exhibit C") to the O&M Funding
Contract establish the amounts which the City wil! direct to the
Operation and Maintenance funding program.
NOW, THEREFORE, the Council of the City of Palo Alto
does hereby RESOLVE as fo!lows:
SECTION i. The Council hereby approves the fifth
revision to the City of Palo Alto’s Fair-Share ~mount
Contribution commitment level for FY 2003, 2004 and 2005 in the
amounts of $2,200,000.00, $4,900,000.00 and $4,400,000.00,
respectively, set forth in Exhibit C to the O&M Funding
Contract, and further authorizes the City Manager to execute the
revised Exhibit C, Revision 5.
/!
/!
/!
030128 syn 0072213
SECTION 2. The Counci! finds that the adoption of this
resolution does not constitute a project under the California
Envirom_mental Quality Act, and therefore no environmenta!
assessment is required.
INTRODUCED _~ND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Mayor
City Manager
Senior Asst. City Attorney Director of
Administrative Services
Director ofUtilities
0301v_g syn 0072213
Contract No. 96-S_N-R-00110
UNITED STATES
DEPARTMENVr OF ENERGY
WESTERN,~A POWER ADMINISTRATION
SIERRA NEVADA CUSTOMER SERVICE REGION
CENTRAL VALLEY PROJECT, CALIFORNIA
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
MID-PACIfIC REGION
CENTRAL VALLEY PROJECT CUSTOMERS
AGREEMENT FOR THE FUNDENG OF OPERATION AND MAINTENANCE FOR
CENTRAL VALLEY PROJECT POWER FACILITIES
o
P~t~A~LE
TABLE OF CONTENTS
EXPLANATORY RECITALS ...............................: .....¯ ........2
2.1 Agencies Operation and Maintenance Needs .......................- .....2
2.2 Adequate Funding Source ...........................................2
2,3 Purpose of Agreement ..............................................2
2.4 Agreement Description .............................................2
AGREEMENT 3
TERM AND TERMINATION OF AGREEMENT .............................3
4.1 Term ............................................................3
4.2 Termination .......................................... .............3
DEFINITION OF TERMS ................................................3
AGENCIES’ OBLIGATIONS ..............................................8
6.1
6.2
6.3
6.4
6.5
6.6
6,7
6.8
6.9
Agencies’ O&M Responsibilities .....................................8
Interagency Coordination ............................................8
O&M Standards ...............: ...................................8-
Preliminary O&M Work Plans .......................................8
Capital Improvement Project .........................................8
Agencies’ O&M Activities Budget .............., .....................9
General Reporting Requirements ......................................9
CVP Power Facilities Reviews .......................................9
Accounting .......................................................9
CUSTOMER OBLIGATIONS
7.1
7.2
7.3
7.4
7.5
7.6
Customer’s Contribution Level ......................................10
Governance Board Actions .........................................10
Contributions ....................................................10
Funding Commitment .............................................10
Designated Contact ...............................................10
Designated Representative ..........................................10.
O&M PROGRAM ......................................................1 !
8.1 Interim Process for Customer O&M Funding ...........................11
8.2 Customer O&M Funding Process ....................................11
8.2.1
8.2.2
8.2.3
8.2.4
8.2.5
8.2.6
8.2.7
8.2.8
8.2.9
8.2.10
Preliminary O&M Work Plans ................................12
Prioritization of Preliminary O&M Work Plans ...................12
Establishment of Proposed Customer O&M Funding Plan ...........12
Determining Commitment Level ...............................12
Development of the Approved Customer O&M Funding Plan ........13
Agencies’ O&M Activities Budgets ....: .......................14
Revision of O&M Work Plans and Customer O&M Funding Plans ....14
Implementation of Customer O&M Funding Plan .................15
Congessional Actions ......, ................................15
Reprogrammed Items ........................................15
i Contract No. 96-SNR-00110
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8.2,11 Exigency Fund .............................................16
8.2.12 Achieved Savings ...........................................16
8.2.13. Carryover .................................................16
8~2. lZ~i" Spending Limitations ........................................17
8.2.15 Changes to Customer O&M Funding Process ....~ . ...............17
Financial Management ...........................- ..................17
8.3,!Billing ........................................." ...........17
8.3.2 Contribution Credits on Power Bill .............................17
8,3.3 Escrow Account for Customer O&M Funding Plan ................18
8.3,4 Recording Contributions: .....................................19
8.3.5 Late Deposit Fee ...........................................19
8.3.6 Trust Accounts for Customer O&M Funding Plan .................20
8.3.7 Refunds ..............’ ......................................20
C~ Funding .....i .......................: .......................21
TERMINATION OF INDIVIDUAL CUSTOMER PARTIC~ATION IN THE
A GREEMENT .........................................................22
GOVERNANCE BOARD ........................ ........................22
10.1 Qualifications/Membership on Governance Board .......................22
10.1.1 Composition of Governance Board .............................23
10.1.2 Agencies Membership on Governance Board .....................23
10.1.3 Customer Membership on the Governance Board ..................23
10.1.4 Election of Customer Membership on the Governance Board ........24
10.2 Quorum and Voting of Governance Board .............................25
10.2.1 Quorum . .................................................25
10.2.2 ¯ Voting ...................................................26
10.3 Designated Alternate ..............................................26
10.4 Duties of the Governance Board .....................................27
10.4.1 General Powers ............................................27
10.4.2 Bylaws ...................................................27
10.4.3 Committees ...............................................27
10.5 Function oft he Governance Board ...................................27
10.5.1 Review of Annual Reports ....................................27
10.5.2 Establishment of O&M Objectives .............................28
10.5.3 Review and Approval Rights ..................................28
10.6 Officers andSecretary .............................................29
10.6.1 Chair and Vice-Chair .........................................29
10.6.2 Duties of the Secretary of the Governance Board ..................29
DISPUTE RESOLUTION ................................................30
11.1 Informal Settlement ...............................................30
11.2 Between Western and Reclamation ...................................30
11.3 Between the Customers or the Customers and Agency(ies) ................30
AUDIT RIGHTS .......................................................31
12.1 Audit Request ......................- ..............................31
12.2 Information Concerning Work Performed ..............................3 !
sUCCESSORS AND ASSIGNS ...........................................32
Contract No. 96-SNR-001 I0
t4.
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ENTORCEAB]J..,ITY ....................................................32
GENERAL POWER CONTRACT PROVISIONS .....- ........................33
RELATIONSHI~ OF THE PAxR.TZES .......................................33
OWNERSI-1XP RIGHTS ~ ~
LIABILITY ...........................................................33
ATTACHMENTS AND EXX-IXBITS MADE PART OF AGREEMENT ............33
EXECUTION IN COUNTERPART ........................................34
RESOLUTIONS
GENERAL POWER CONTRACT PROVISIONS (August 15, 1995)
EXHIBIT A
EXH~IT B
EXt-lXBIT C
ATTACHMENT ! (Escrow Agreement)
Contract No. 96-SN’R-00110
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LrNITED STATES
DEPARTMENT OF ENERGY -
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA CUSTOMER SERVICE REGION
CENTRAL VALLEY PROJECT, CALIFOR_N~&
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
MID-PACIFIC REGION
CENTRAL VALLEY PROJECT CUSTOMERS
AGREEMENT FORT HE ~FUNDING OF OPERATION AND MAINTENANCE FOR
CENTRAL VALLEY PROJECT POWER FACILITIES
PREAMBLE: This Agreement is made this __ day of ,1997, pursuant to
the Acts.of Congress approved June 17, 1902 (32 Stat. 388); March 4, 1921 (41 Stat. 1404);
January 12, 1927 (44 Stat.957); August 26, 1937 (50 Stat. 844); August 4, 1939 (53 Stat.
1187); and August 4, 1977 (91 Stat. 565); and Acts amendatory or supplementary to the
foregoing Acts; between the UNITED STATES OF AMERICA (United States), (i) acting by
and through the Administrator, Western Area Power Administration, Department of Energy,
represented by the Regional Manager, Sierra Nevada Customer Service Region, the officer
executing this Agreement, or a duly appointed successo.r, and (ii) acting by and through the
Commissioner, Bureau of Reclamation, Department of the Interior, represented by the
Regional Director, Mid-Pacific Region; and the Centra! Valley Project (CVP) preference
power customers signing this Agreement and set forth in Exhibit A, all collectively called
Parties.
1 Contract N~. 96-SNR00110
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EXZPL ~NATORY RECITALS:
2.1 Agencies Operation and Maintenance Needs" Federal appropriations to finance
Reclamation’s Operation and Maintenance (O&M)Activities have been declining over
the past several years. Federal appropriations to finance Western’s O&M Activities
may also decrease in the future.
2.2 Adequate Funding Source: To properly maintain the CVP power facilities and avoid
deferred maintenance, Western and Reclamation require an adequate and reliable
source of funding for the O&M Activities.
Purpose of Agreement: In order to assure a predictable flow of funds for O&M
Activities of the CVP power facilities, the Agencies and the Customers desire to
establish an O&M Program that will provide a source offimds for the O&M of CVP
power facilities and maximize thebenefits ~om those facilities. This Agreement
addresses only the power portion of the CV-P facilities. Although CV-P power O&M
expenses are suballocated between the Customers and CVP water customers,
contributed funding for the portion suballocated to water customers is not included in
this Agreement.
2.4 ~.~greement Descriptio~l: This Agreement sets out the procedure for establishing a
Governance Board in order to effectively plan and monitor the O&M Program. This
Agreement clarifies and sets forth the details of the O&M Program whereby the
Customers may contribute funds for Western and Reclamation to perform the O&M
Activities required by this Agreement pursuant to 43 U.S.C. §§ 395, 397a. The funds
received from the Customers shall be available for expenditure for the specific purpose
for which contributed in a like manner as if said funds had been specifically
appropriated for said purposes.
Contract No. 96-SNR-00110
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AGREEMENT:.. In consideration of the mutual benefits to be received through this
Agreement, the Parties agree to the terms and conditions set forth herein.
TERM AND TERMINATION OF AGREEMENT:
4.1 Term: This Agreement shall become effective upon execution by both Agencies and
shall remain in effect until terminated. The Agencies will execute this Agreement upon
signature by fiRy percent (50%) of the CVP preference power.customers and enough
Contributors to form the Governance Board.
4.2 Termination: The Governance Board may vote tb terminate this Agreement if, in its
opinion Contributions are not at a level to provide an effective O&M Program;
Provided, That the termination will not be effective until it is determined by the
Agencies, through written notice, that all work has been completed under the last~
Customer O&M Funding Plan approved by the Governance Board; Provided Further,
That after December 31, 2004, the Agencies may agree to terminate this Agreement if
at any time there are not at least five (5) Customer members on the Governance Board.
A one hundred twenty (120) day written notice to all Customers must be given by the
Secretary of the Governance Board prior to termination pursuant to this Section.
5.DEFINITION OF TERMS: As used herein, the following terms shall have the following
meanings when used with initial capitalization, whether singular or plural:
5.1.Agency(ies): U.S. Department of the Interior, Bureau of Reclamation, Mid-Pacific
Region (Reclamation) and/or U.S. Department of Energy, Western Area Power
Administration, Sierra Nevada Customer Service Region (Western).
3 Contract No. 96-SNR-00110
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5.2
5.3
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Capital.~mprovement Projects (CIP): Replacements or additions of one or more
units of property that are generally capitalized and amortized in Western’s power
repayment study. These replacements or additions are generally: (a) items that will be
replaced as a complete unit more than one time within the period of analysis as defined
in the most recent Agencies’ document titled "Replacements Units, Service Lives,
Factors"; and (b) items whose costs are sigrtificant compared to the Agencies’ annual
maintenance expense but are not ordinarily replaced as a part of the normal recurring
O&M program.
Contribution: Monies provided by the Customers to fund a Customer O&M Funding
Plan.
Contributor: A Customer who commits in writing to make contributions equal to or
greater than 1/12th of such Customer’s share of the estimated annual O&M cost for the
FY that is four (4) years out from the current FY, which shall be determined by the
.formula:
1,(Ec_ ,c0,
12 TP
Where~
EC=
PU=
CP=
Estimated Annual O&M costs for each FY as set forth in the latest rate
case power repayment study.
Project Use revenue as set forth in the latest rate case power repayment
study.
The Customer’s Power Entitlement from the latest Power Entitlement
Report as prepared by Western.
The sum of all preference power customer’s Power Entitlement from the
latest Power Entitlement Report as prepared by Western.
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A Customer who has met this definition may fund at a level less than that committed to
in meeting this definition only when the sum of all Customer Contributions in a given
FY would exceed that needed for the Customer O&M Funding Plan for that FY.
5.5 Customer: CVP preference power customer(s) who sign this Ageement.
5.6
5.7
5.8
5.9
5.10
Customer O&M Funding Plan: The plan which defines the .spending limits for
O&M Activities and CIP approved for funding by Contributions for the FY under
consideration.
Emergency: An unplanned or unanticipated event or circumstance that require.s an
Agency to take immediate action to preserve, maintain; or re-establish the safety,
integrity, or operability of the CVP power facilities that have been affected.
Escrow Account: An interest bearing account established by the Program Treasurer at
a Federally insured bank for the purpose of holding the Contributions until
disbursements are made to Western and Reclamation, or the account is otherwise
closed.
First Preference Customer: Those preference power customers in either Trinity,
Tuolumne, or Calaveras Counties, as the case may be, which have satisfied the
statutory requirements according to the Trinity River Division Act (69 Stat.719) and
the New Melones Act of the Flood Control Act of 1962 (76 Star. 1180). ¯
Fiscal Year (FY): The Federal fiscal year that begins on October 1 of each calendar
year and ends on September 30 of the following calendar year.
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5.16
Governance Board: The board formed of Customers’ and Agencies’ representatives
that will, among other things, approve the Customer O&M Funding Plan and govern
the O&M Program.
Industry Standards: Guidelines and criteria established, maintained and published_ by
entities such as the Institute of Electrical and Electronic Engineers, Inc., the National
Electrica! Manufacturers Association; and the American National Standards Institute.
O&M Activities: Those actions and work elements to be performed to continue the
safe, economic, reliable, and environmentally acceptable operation of the CVP power
facilities including power related programs such as marketing, rates, studies, bilI’ing and
energy services.
O&M ACtivities Budgets: Itemized obligation plans developed by the respective
Agencies that identify both the leve! of Federal appropriations and Customer
Contributions that will be utilized to fund those actions and work eIements performed
by the Agencies in support of the operations, maintenance and capital improvement
projects of the CVP power facilities, for specific fiscal years.
O&M Program! Anarrangement between the Agencies and the Customers whereby
Customers provide Contributions and input concerning the O&M Work Plans and C~
of the Agencies. The O&M Program does not include purchased power and CVP
power O&M expenses subaliocated between the CVP water customers.
O&M Work Plan: Projections of O&M Activities prepared annually by each Agency
displaying priorities, costs, benefits and impacts of various alternatives for their
respective annual O&M.
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5.18
5.19
5.20
5.21
5.22
Power Entitlement: The value (in kilowatts (kW) or as deft.ned in a subsequent
marketi~ plan) of a Customer’s contractual ri~tt to purchase long-term power from
the CVP on an armual basis. Currently this value is calied the Contract Rate of
Delivery,
Power Entitlement Repgrt: A report prepared by western that sets forth each
preference power customer’s CVP Power Entitlement. This report is currently cailed
the Central Valley Project Contract Rate of Delivery Report.
Program Treasurer:. The entity selected by the Governance Board to establish and
perform all financial duties related to the Escrow Account.
Prudent Utility Practice: Those practices, methods and procedures, as modified from
time to time, that are currently and commonly used by electric utilities and other power
providers-to design, engineer, select, construct, operate, and maintain electric power
facilities and equipment dependably, reliably, safely, efftciently, and economically,
with due regard .to the state of the art in the electric power industry.
Reclamation Fund: The fund established in the U.S. Treasury by Congress ,under the
Reclamation Act of June 17, 1902.
Senior Manager: The Regional Director for Reclamation, the Regional Manager for
Western, or the ranking oflScial of each-elected Customer member on the Governance
Board.
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5.23 Small C~stomer: A Customer with a long-term fu-m allocation of 20 megawatts or
less f~om Western and a maximum load of 40 megawatts or less.
AGENCIES? OBLIGATIONS:
6.1 ~g_e=n~ies’ O&M Responsibilities:The Agencies shaI1 remain solely responsible for
developing their respective O&M Activities Budgets, including setting the amount of
the appropriations request, and for the O&M Activities of their respective CVP
facilities.
6.2 tlnD.r_~ency Coordination: The Agencies will coordinate budget and financial
transactions in accordance with current budgetary, fiscal, and accounting regulations
and policies.
6.3 O&M Standards: The Agencies will perform their O&M Activities using Prudent
Utility Practice, Industry Standards, Agency standards, guidelines, and policies; and
any applicable laws, regulations, orders, permits, and licenses. The Governance Board
may recommend standards for consideration by the Agencies.
6.4 Preliminary_ O&Y/Work Plan~: Preliminary O&M Work Plans shall beprepared by
each Agency, and presented to the Governance Board as set forth in Section 8.2. The
preliminary O&M Work Plans shall include, among other things, the minimum level of
O&M Activities needed to sustain safety and reliability of the power system, and may
include additional O&M Activities which will prevent deterioration, enhance system
performance, or improve reliability.
6.5 Capital Improvement Proje¢l: A list ofprioritized CIP in excess of the
predetermined threshold will be maintained by each Agency. CIP items below this
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predetermined threshold, as determined by the Governance Board, may be included in
the Agency’s respective preliminary O&M Work Plan(s).
6.6 A__~encies’ O&M Activities Budg~et: The Agencies will prepare their O&M Activities
Budgets using the O&M Work Plans and the approved Customer O&M Funding Plan.
6.7 General Reporting Requirements: The Agencies shall prepare and submit a report to
the Governance Board summarizing their respective annual O&M Activities for the
preceding FY which provides a general description of ,the work that was performed.
The report will include deviations between planned work and actual work completed,
and deviations from forecasted expenditures and costs actually incurred and paid. This
report will be prepared and submitted to the Governance Board in accordance with the
format and schedule requested by the Governance Board.
6.8 CVP Power Facilities Reviews: CVP power facilities may be reviewed on a periodic
or as needed basis, as defined by the Agencies Or as requested by any Customer
member on the Governance Board. The purpose of the CVP facilities reviews will be
to assist the Governance Board in evaluating the O&M Program. These reviews will
be coordinated, to the extent practicable, through the Governance Board and will be
conducted by qualified representatives independent from the work group directly
responsible for the O&M Activities.
6.9 Accounting: The Agencies wi!l maintain appropriate accounts and follow generally
accepted accounting principles.
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!7.
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CUSTOM~ER_~dBLI GATIONS:
7.1 Customer’s Contribution Level: Each Customer shall remain solely responsible for
determining the magnitude of its respective Contribution level and will indicate such
commitment in Exhibit C by specifying the amount to be contributed for the
appropriate FY and si~mxing Exhibit C.
7.2 Governance Board Actions" Customers who contribute will act, in a timely manner,
on the approval of or revisions to the Customer O&M Funding Plan in order to
facilitate the actions of the Governance Board.
7.3 Contribution.s: Customers who contribute will allow their Contribution to be
expended by the Agencies pursuant to the Customer O&M Funding Plan as approved
and revised by the Governance Board. All Contributions will be deposited into an
Escrow Account pursuant to Section 8.3.
7.4 Funding._C_~lBJali[!:!!~: Any Customer who contributes will make their Contributions
available, as requested by Western pursuant to Section 8.3.
7.5 ~g.nated Contact: For purposes of this Agreement, dach Customer shall provide
the name, title, and address of an employee within the organization who shall be
specified as a designated contact of the Customer’s organization. Customers may also
provide the name, tire, and address of any additional individual(s) to receive copies of
all distributions. All contact information will be set forth in Exhibit A.
7.6 lg~la~ke~_g~resentative: For purposes of this Agreement, each Customer shall
provide ~e name, title, and address of an employee within the organization who shall
be specified as a desi~m~ated representative oft.he Customer’s organization. The
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Customer’s. representative will be authorized to represent the Customer in all matters
involving the Agreement including the exercise of theCustomer’s rights and the
performance of the Customer’s duties under the Agreement and may participate in all
elections and percentage votes. The Customer’s representative may desigrmte an
individual to vote on behalf oft.he Customer’s representative in all elections and
percentage votes. Such designation shall be furaished in wa-iting to the Secretary of the
Governance Board prior 4o any election or vote.
O&M PROGRAM:
8.1 Interim Process for Customer O&M Funding: The Governance Board will not be
established in time for a complete four-year O&M fundfiag cycle as set forth in Section
8.2 for FY98 through FY2000. It is anticipated that to the extent practicable, the
process set forth in Section 8.2 will be followed for FY98 through FY2000. The
Agencies will present lists of O&M Activities, instead of O&M Work Plans, to the
Governance Board. Based on the information provided by the Agencies, the
Governance Board may develop and approve Customer O&M Funding Plans for FY98
through FY2000. The Governance Board for this interim process shall be that
Governance Board established within 60 days following the effective date of this
Agreement.
8.2 Customer O&M Funding Process: The Agencies will continue to pursue
appropriations for their respective O&M Activities. The Governance Board wilt
determine the level of funding to be contributed through the development of the
Customer O&M Funding Plan. The following process will be utilized in developing
the Customer O&M Funding Plan:
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8.2.2
8.2.3
8.2.4
Preliminary. O&M Work. Plans" Each Agency wil! prepare a preliminary~
O&M Work Plan describing their respective O&M Activities and CLIP. The
Agencies will include an estimate of the anticipated level o3 appropriations.
Prioritization of preliminary. O&M Work Plans: The Governance Board or a
committee designated by the Governance Board wil! work with the Agencies
in the prioritization of the specific elements within the preliminary O&M
Work Plans. Additional elements that could be funded with Contributions
may be included in the prioritization of the specific elements. This step
culminates in proposed O&M Work Plans for each Agency including the
specific elements which could be funded with Contributions.
Establishment of Proposed Customer O&M Funding_P_]~: The Governance
Board will review the proposed O&M Work Pians developed pursuant to
Section 8.2.2 and will accept or modify the specific elements for funding with
Contributions. This step.culminates in the proposed Customer O&M
Funding Plan.
Determining Commitment Level: Following the establishment of a proposed
Customer O&M Funding Plan, each Customer will individually establish,
retain, or increase, as appropriate, its Contribution commitment level. In
order to facilitate the Customers timely commitment of Contributions, the
following funding guidelines are defined.
8.2.4.1 Fair-Share Funding Level:. A fair-share funding level is determined
as the ratio of the Power Entitlement for the individual Customer as
listed in Exhibit B, divided by the total Power Entitiement for all the
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8.2.5.
Customers listed in Exhibit B, multiplied by the proposed Customer
O&M Funding Plan level. The Power Entitlements will be that set
forth in the latest Power Entitlement Report.
8.2.4.2 Maximum Contribution: An individual Customer’s Contribution
shall not exceed Westem’s ability to credit the Contribution against
the annual power payment obligation of the Customer.
8.2.4,3 Redistribution of Contribution Commitments: Any redistribution in
the level of Contribution commitments required to fund the .Customer
O&M Funding Plan may be distributed among other concurring
Customers.
8.2.4.4 Total Contributions Available: The sum of all individual
" Contribution commitments shall be the total Contribution
commitments available to fund the Customer O&M Funding Plan.
8.2.4.5 Commitment: Prior to the Governance Board approving the
Customer O&M Funding Plan, each contributing Customer shall
commit in writing, pursuant to Section 7.1, .to the amount such
Customer is willing to contribute.
Development of the Approved Customer O&M Funding_Y_j~: The
Governance Board will revise, as necessary, the proposed Customer O&M
Funding Plan and will approve the Customer O&M Funding Plan wkich will
specify the Contributions available for expenditure by each Agency by
September 1st, three (3) years prior to the FY under consideration.
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8.2.7
The approved Customer O&M Funding Plan shall include the deposit
requirements for each contributing Customer. If the total Contribution
com_m_itment level would exceed that needed for the Customer O&M Funding
PIan, the individual Customer deposit requirements wiII be based on the pro
rata distribution of the commitments made pursuant to Section 8.2.4.5.
Agencies’ O&M Activities Budgets: The Agencies wili use their proposed
O&M Work Plans and the approved Customer O&M Funding Plan to
develop their respective O&M Activities Budgets. The Agencies’ O&M
Activities Budgets shall be submitted through the Federal appropriation
process and ultimate release of the President’s Budget.
Revision of O&M Work Plans and Customer O&M Fundin~P_lmm: Upon
release of the President’s Budget, the Agencies will compare their submitted
O&M Activities Budgets to the funding level identified in the President’s
Budget2 As necessary, the Agencies will analyze and recommend
modifications to their O&M Work Plans to avoid conflict with Congressional
appropriation language while maintaining the original intent of the previously
developed O&M Work Plans. If the Agencies determine that Contributions
are no longer needed to maintain the program elements identified in the
O&M Work Plans, the Agencies will recommend a reduction in the
Contribution level. The Governance Board will then review the
recommendations and make appropriate changes to the Customer O&M
Funding Plan subject to Section 8.2.8. The Customer O&M Funding Plan
will not be increased without the approval of the Governance Board and each
contributing C.ustomer who elects to increase its Contribution commitment
by revising its Contribution commitment level in Exhibit C.
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8.2.8
8.2.9
8.2.10
I~..: plementation of Customer O&M Funding Pl.ar!: To ensure the Agencies’
continued operations, and to allow the Agencies time to incorporate the
Governance Board’s decisions into their respective O&M Work Plans, the
Governance Board’s final approval of the Customer O&M Funding Plan must
occur no later than Au~m~st 1 st, prior to the FY of implementation to facilitate
the steps outlin.ed in Section 8.3. If the Governance Board does not approve a
final Customer O&M Funding Plan by August 1st prior to the FY of
implementation, the Agencies vdll operate under the Congressionally
approved appropriations level and at the Customer O&M Funding Plan level
equal to seventy-fiVe percent (75%) of the Customer O&M Funding Plan
approved for that FY pursuant to Section 8.2.5. The Agencies wi!l follow, to
the extent practical, the i,p, tent of the original Customer O&M Funding Plan in
spending at the seventy-five percent (75%) funding level. Subsequent
adjustments to the Customer O&M Funding Plan may be made only after the
Governance Board’s approval.
.Con~,~sional Actions: Congressional actions may modify the President’s
Budget. Should such action significantly impact the O&M Work Plans, the
affected Agency and the Governance Board will review and/or modify the
Customer O&M Funding Plan pursuant to Sections 8.2.4 and 8.2.5.
Repro_amnmed Items: Latitude to repmgram items within the Customer
O&M Funding Plan may be necessary in the overall management of power
facilities, or due to unforeseeable circumstances. The threshold for
reprogramming will be established-by the Governance Board.
Reprogramming in excess of the predetermined threshold will be presented
by the’ Agency(ies) for Governance Board approval prior to execution. All
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8.2.i2
8.2.13
repro~amming changes made by the Agencies wi!l be documented and
reported to the Governance Board within ninety, (90) days of occurrence.
Exigency Fund: An exigency fund may be established by the Governance
Board and may be included in the Customer O&M Funding Plan. The level
of this fund will be determined based upon exigency requirements, as
presented by the Agencies, and/or in the event of an Emergency or other
requests brought to the Governance Board. Within this exigency fund, the
threshold for Emergency expenditures will be established by the Governance
Board. Latitude to make Emergency expenditures within the O&M Work
Plans may be necessary in the overall management of power facilities,-or due
to unforeseeable circumstances. Within ninety (91?) days, any Emergency
expenditures, within the predetermined threshold made by the Agency(ies),
will be documented and repoi-ted to the Governance Board. Emergency
expenditures in excess of the predetermined threshold will.be presented by
the Agency(ies) to the Governance Board for approval. Expenditures from
the exigency fund, for other than Emergencies, will be approved by the
Governance Board on-a case-by-case basis.
~e&~kiits:ia~: In order to encourage greater efficiencies in O&M
Activities, any savings in the use of the Customer O&M Funds may be
directed by the Agencies subject to Governance Board approval.
Carryover: Unobligated funds in the trust account(s), otherwise known as
carryover, will be committed to projects and activities as approved by the
Governance Board.
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8.3
8.2.!4 Spending Limitations: The Agencies wiI1 ensure that spending does not
exceed the combined funding level of the appropriations approved for its
O&M Activities by Congress and the Customer O&M Funding Plan
approved by the Governance Board.
8.2.15 Changes to Customer O&M Funding Process: Changes to the Customer
O&M Funding Process set forth in this Section 8.2 shall be approved by the
Governance Board.
Finmacial
8.3.1 ]3illi~: Western will be responsible for all billing of the Contributions under
the approve.d Customer O&M Funding Plan or the default Customer O&M
funding level of seventy-five percent (75%). Western will request the
contributing Customers to deposit Contributions into an EscroWAccount,
based on the Customer O&M-Funding Plan level determined pursuant to
¯ Section 8.2.5 and Section 8.2.8, and guidance provided by the Governance
Board in accordance with the terms of this Agreement. Billing for
Contributions which includes Escrow Account reserves for a FY will begin in
August immediately prior to commencement of the FY. The Governance
Board may change the month for the first billing for the FY.
8.3.2 Contribution Credits on Power Bill: C.ustomers will receive credits on their
monthly power bills equal to their previous month’s Contribution to be used
to finance Agency O&M Activities; Provided, That Customers w411 not
receive credits on their power bills £or Escrow Account reserve deposits until
Escrow Account reserve funds are withdrawn from the Escrow Account by
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¯ e Agencies. J_f the entire credit cannot be applied to a monthly power bill,
the ~redit balance will be carried forward and applied to future power bills.
Escr~)w Account for C~stomer O&M FundinK Plan: Under the direction of
the Governance Board, an Escrow Account viii be established for depositing
the Contributions. Fees associated with the Escrow Account will be deducted
from the Escrow Account balance. The Governance Board wilI select a
Program Treasurer to manage and administer the Escrow Account. All funds
advanced by the Customers into the Escrow Account will only be used by the
Agencies for expenses identified in the Customer O&M Funding Plan
approved by the Governance Board and for payment of fees associated with
the Escrow Account.
8.3.3.1 Escrow Account Reserve: The purpose of the Escrow Account
reserve is to ensure adequate cash flow for the Agencies
expenditure of Contributions.. The initial Escrow Account reserve
level shall be established by the Governance Board at their first
meeting. An initial Escrow Account reserve of at least 1/12
(estimated to be $2 million) of the total annual O&M Program cost
is needed prior to any expenditures by the Agencies. With the
approval of the Customer O&M Funding Plan, the Governance
Board shall determine the appropriate Escrow Account reserve
level. It is anticipatedthat the Escrow Account reserve needed will
be approximately 25% of the greater of the current or the next FY
Customer O&M Funding Plan.
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8.3.4
8.3.5
._ 8.3.3.2 Interest Earned in the Escrow Account: Interest will be earned on
the funds in the Escrow Account. The interest will be credited to
each Customer listed in Exhibit B in proportion to the individual
Customer’s annual deposits of ftmds into the Escrow Account.
8.3.3.3 End ofFY Escrmv Account Reconciliation:. After the close of the
FY, the Program Treasurer shall reconcile the Escrow Account, by
Customer, to reflect the actua! deposits, Escrow Account fees,
credits pursuant to Section 8.3.2, interest earned and late deposit
fees. The Program Treasurer will use this Escrow Account balance
to prepare a statement of reconciliation for each Customer. The
Customer may request a refund of its reconciled balance. If no
requests for a refund is received from the Customer within thirty
(30) days after receipt, of the annual statement of reconciliation, the
balance will be carried forward and credited to that Customers
Contribution for the next FY.
Recording Contributions: Contributions used to finance Agencies O&M
expenses during any FY will be recorded in the CVP power repayment study
for that FY.
Late Deposit Fee: Contributing Customers who deposit their requested
Contribution later than the due date indicated on the bill, will be assessed a
late deposit fee on the amount unpaid. Bills not paid in full by the due date
shall bear a charge of .05 percent (,05%) of the amount unpaid for each day
payment is delinquent. The late deposit fee will not be considered to be a
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8.3.6
8.3.7
part of any Contribution. The Governance Board may change the level and
mechanism for application of the late deposit fee.
Trust Accounts f~r CustQmer O&M Funding Plan: Funds from the Escrow
Account will be transferred into two trust accounts, one for Western and one
for Reclamation, within the United States Treasury, where funds will be held
prior to commitment, obligation, and expenditure for O&M Activities.
Agencies’ requests for transfer of funds, will be accomplished in a manner
approved by the Governance Board. No interest will be earned on the funds
in the trust accounts. Each Agency will administer its respective trust
account.
Refunds: Refunds of Escrow Account balances shall be returned to the
Customers as follows:
8.3.7.10&M Program Termination: Should the O&M Program terminate,
the balance of funds remaining in the Escrow Account, plus
interest earned, tess credits received pursuant to Section 8.3.2 and
less any Escrow Account fees, will be returned to each Customer
proportionate to its level of Contributions.
8.3.7.2 Individual Termination from the Agreement: Individual
termination of participation in the Agreement can occur in two
ways and refunds will be made as follows:
8.3.7.2.1 Termination from Agreement: Should the Customer
terminate its participation in the Agreement with the ninety
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8.3.7.2.2
(90) day notice pursuant to Section 9, the Customers share
of the balance of funds remaining in the Escrow" Account,
plus interest earned, less credits received pursuant to
Section 8.3.2, and less any Escrow Account fees, will be
returned to the Customer after the Customer’s Contribution
commitment(s) have been satisfied.
Termination as a Western Preference Power Customer:
Should a Customer terminate its electric service contract
(primary contract) with Western pursuant to Section 9, the
Customer’s share of the balm’ace of funds remaining in the
Escrow Account, plus interest earned, less credits received
pursuant to Section 8.3.2, and less any Escrow Account
fees, will be returned to the Customer within ninety (90)
days of contract termination.
8.3.7.3 Change in level of Contribution: At the change of FY’s, Customers
who have reduced their Contribution commitment level for the next
FY may request a refund of their surplus Escrow Account reserve
tim&, calculated pursuant to Section 8.3.3.3.
8.4 ~]~: Unless otherwise agreed to by the Governance Board, the Agencies will
continue to seek appropriations for funding CIP. When appropriations are used,
repayment of CIP will be in accordance with repayment requirements set forth in the
Agencies’ policies on repayment of investment. CIP funding below the threshold
established by the Governance Board, will be treated and repaid in the same manner as
an annual expeflse. If any Customer(s) desires to fund CIP in excess of the established
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threshold, such voluntary ftmdin~ will be subject to the individual Customer’s approval
andwill be performed through a separate agreement with the appropriate Agency.
TERMINATION OF LNDIVIDUAL CUSTO~R PARTICIPATION I5’ TI-ISE
AGREEMENT: An individual Customer may terminate its participation in this Ageement
upon a ninety (90) day written notice to the Secretary of the Governance Board. When a
Customer terminates its participation in this Agreement, all Contribution commitments and
all other obligations made by that Customer under this Agreement shall remain in effect until
satisfied. Aider satisfying all Contribution commitments and other obligations made by the
Customer pursuant to this Agreement, the Program Treasurer shall return the Customer’ s
share oft.he remaining Escrow Account balance pursuant to Section 8.3.3.3. Provid,d, That
if such Customer terminates its electric service contract (primary contract) with Western, all
of its obligations under this Agreement shall terminate concurrently with the termination of
the electric service contract. Provided further, That any late deposits and fees due to the
Escrow Account must be fully satisfied prior to termination.
10.GOVERNANCE BOARD: A Governance Board will be established within sixty (60) days
following the effective date of this Agreement. Western will notify the Customers of the date
of the first Governance Board meeting by giving a thirty (30) day written notice to all
Customers.
10.1 Oualificnfions/Membership on Governalace ]3oard: Western, Reclamation, and any
Customer meeting the qualifications set forth in this Section 10.1 is eli~ble to be a
member of the Governance Board. The Agencies will represent their respective
interests, and the elected Customer members_shall represent the interest of their
respective Customer group as defined under the following sections.
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10.1.2
10.1.3
comprised of twelve (12) members.
Governance Board will be:
The Governance Board will be
The overall composition of the
(a)Customers 10
(b)Reclamation 1
(c)Western 1
Agen.cies Memt;ership on Governance Board: The Agencies shall appoint
and designate in v,~ting their respective member(s) tO the Governance Board.
Customer Membership on the Governance Board: To ensure equitable and
diverse participation of the Customers, Customer membership on the
Governance Board shall be grouped as follows:
(a)Municipal!Public Utility Districts/Rural Electric Cooperatives (6 ~
(b)
(c)
(d)
Governance Board members)
Federal/State/Other (2 Governance Board members)
Water and/or Irrigation Districts (1 Governance Board member)
First Preference Customers (1 Governance Board member)
At least one (1) Small Customer shall be a member in groups (a) and (b)
above, and no Customer will have more than one (1) member on the
Governance Board. The Contributor in group (a) with the largest annual
Contribution commitment shall be deemed a Governance Board member.
The preference power customers and their respective groupings are as set
forth in Westem’s Central Valley Project Contract Rate of Deliver?/ Report
dated May 311 1996. Any new grouping of preference power customers, or
changes to the classification of existing preference power customers, will be
propqsed by Western and approved by +,h.e Governance Board.
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10.1.4 _::Election of Customer Membersb_ip on the O0v¢rn~¢ Board: Each
Customer group shall select and desigmate in writing their members to the
Governance Board. To be elected a Customer Governance Board member in
Customer groups (a), (c), and (d) as defined in Section I0.i .3, a Customer
must be a Contributor. A Governance Board member from Customer goup
(b) in Section 10.1.3 is only required to be a Customer. Any Customer may
nominate a qualified candidate for election to the Governance Board.
I0.1.4.1 Initial elections, by the Customer groups, for membership to the
Governance Board will be held on the day of or prior to the first
Governance Board meeting. Subsequent elections for all Customer
Governance Board members will be held in February 2000 and
every three (3) years thereafter.
10.1.4.2 A Customer Governance Board member may remain on the
Governance Board until the member resigns, is replaced in an
election, is no longer qualified to be a Customer Governance Board
member, or is otherwise removed.
10.1.4.3 An election to fill any Customer Governance Board member
vacancy shall be held prior to or at the next scheduled Governance
Board meeting.
10.1.4.4 Each Customer representative may vote once for each of the
available Governance Board positions within its Customer group
as outlined in Section 10.1.3. The, candidates receiving the most
votes are awarded the positions available.
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10.2
To vote in an election, any Customer employee or desi~maated
representative may vote on behalf of the Customer. A Customer
may choose to submit a written vote to the Secretary of the
Governance Board. Provided, That if a dispute arises regarding
who is representing the Customer only the representative
designated in writing may vote.
10.1.4.6 Western will notify all Customers within each Customer group of
the date of the Customer group’s first election by giving a thirty
(30) day written notice to all Customers. Thereafter, the Secretary
of the Governance Board will provide notification of elections.
10.1.4.7 The election procedures specified in Section 10.1.4 for each
Customer group may .be changed by a two-thirds (2/3) vote of
Customers in that Customer group.
10.1.4.8 An elected Customer member of the Governance Board may be
removed by its respective Customer group subject to a two-thirds
vote of Customers in that Customer group.
Quorum and Voting of GQv¢rnance Board:
10.2.1 _Ouorum: A majority of the Governance Board members in attendance shall
constitute a quorum necessary for the transaction of business at any meeting
of the Governance Board. Such quorum must include the Agencies’
members on the Governance Board.
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10.3
10.2.2. ~~: All matters coming before the Governance Boardfor approvaI shaii
require the atY_trmative vote of Western, Reclamation, and two-thirds (2/3) of
the Customer Governance Board members present; Provided, That an Agency
member shall not vote on the other Agency’s O&M Work Plans or the other
Agency’s proposed expenditure of Contributions.
The Customer Governance Board member approval shaii be based on one
vote per Customer Governance Board member, except, after having a vote
based on one-member one-vote basis, a Customer.Governance Board member
or both Agencies jointly may call for a percentage vote on Customer O&M
Funding Plan issues only~ whereby all Customers listed in Exhibit B and
whose designated representative is present at the meeting, may participate in
the voting and may represent only its own interests; Provided, That an
Agency may not represent a customer in percentage votes. The percentage
vote of each Customer listed in Exhibit B will be based upon that Customer’s
annual commitment percentage level listed in Exhibit B for the FY under
consideration. An affirmative vote representing two thirds (2/3) of the total
Contribution commitment, for the FY under consideration, as set forth in
Exhibit B is required for passage under the percentage vote and shall override
the Customer Governance Board member vote taken on a one-member one-
vote basis. If less than two-thirds of the percentage level of the Customers
listed in Exhibit B are present, a Governance Board member may call for the
vote to be held over until the next Governance Board meeting.
Designated Alternate: A Governance Board member may designate an alternate to
attend any Governance Board meeting by a written notice to the Secretary of the
Governance Bdard, and such alternate shall have full authority to act and vote in place
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of the absent Governance Board member. An Agency may not serve as an alternate for
a Customer Governance Board member.
t0.4 Duties of the Governance Board:
10.4.!Oeneral Powers: The Governance Board shall take such actions as it may
deem approp.riate in exercising al! of the powers contemplated and
conferred by this A~eement.
10.4.2 v!3y_ia~: The Governance Board shall develop and adopt bylaws within
forty five (45) days after its first meeting for circulation to all Parties. An
appropriate comment period will be afforded to all Parties prior to its
adoption by the Governance Board.
10.4.3 Committees: .The Governance Board may create, direct, and terminate
committees as it may deem appropriate. The Governance Board shall set
forth the duties and responsibilities of each committee. Each committee
shall be subject at all times to the direction and bylaws of the Governance
Board.
10.5 Function of the Governance Board: The Governance Board will monitor and
provide oversight of the O&M Program and establish general O&M objectives. The
Governance Board will have the following powers, duties, and responsibiIities in
regard to the overall monitoring and oversight of the O&M Program.
10.5.1 Review of Annual Reports: Review of annual reports on the O&M
Program is performed to:
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t0.5.2
10.5.3
(t)
(2)
Determine that Governance Board approved work is completed as
planned; and
Direct any necessary audits.
Establishment of O&M Objectives: The Governance Board shai1 establish
the objectives for activities related to the expenditure of.Contributions as
they relate to:
(1)
(2)
(3)
(4)
(5)
Annual O&M Activities for the fiscal year under consideration;
Capitol Improvement Projects;
Strategy for scheduling O&M Activities;
New or improved goals and!or indices to be accomplished during
the FY then under Consideration, based upon the previous years’
experiences and results; and
Reporting requirements of the Agencies and Governance Board.
Review and Approval Rights: The Governance Board shall review and
approye changes to the Governance Board by-laws and items related to the
Customer Contributions, such as:
(1)
(2)
(3)
(4)
(5)
(6)
Customer O&M Funding Plan;
Exigency Fund level;
Expenditure thresholds for Emergency, reprogramming, and C]]?;
Escrow Account administrative duties;
Escrow Account reserve levei; and
Proposed procedures and schedules for the Contribution
collections.
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10.6 Officers and Secretary_:
10.6.1 Chair and Vice-Chair: The Governance Board Members shall elect a Chair
and a Vice-Chair from the Governance Board Members. The Chair and
Vice-Chair may be removed from office by the Governance Board
whenever, in its judgement, the best interests of the Governance Board will
be served the.reby. Vacancies shall be filled by the Governance Board at
that meeting or the next meeting. .
10.6.i.1 Duties of the Chair: The Chair shall:
(1)
(2)
(3)
preside over all meetings of the Governance Board;
perform duties established in the bylaws; and
perform all duties that may be reasonably required
by the Governance Board.
10.6.1.2 Duties ofth, Vice-Chair:
Vice-Chair shall:
(1)
(2)
(3)
In the absence of the Chair, the
perform the duties of the Chair;
perform duties established in the bylaws; and
perform all duties that may be reasonably required
by the Governance Board.
10.6.2 Duties of the Secretary_ of the Goy,mance Board: Unless otherwise
determined by the Governance Board, the secretary of the Governance
Board shall be provided by Western. The secretary of the Governance ¯
Board shall:
(1)record all votes and keep a complete record of all meetings of the
Governance Board;
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(2)
(3)
distribute copies upon request to interested parties, and
perform duties that may be reasonably required by the Governance
Board. Unless designated to be Westem’s representative, the
secretary of the Governance Board shall not be a voting member
of the Governance Board.
DISPUTE RESOLUTION:
11.1 Informa!....Settlement: The Parties will use good faith efforts to settle all disputes
arising under, or in relation to, this Agreement.
" 11.2 Between we~terln and Reclamation: Should any dispute, arise between the Agencies
concerning the O&M Program, the duties or obligations of the Parties, or the
implementation or interpretation of the O&M Program, remain unresolved for a
period of twenty (20) days, such dispute shall be forwarded to the Agencies’ Senior
Managers for resolution.
11.3 Between the Customers or the Customers and Agency(ies): Should any dispute
arise among the Customers or between the Customers and the Agency(ies) under or in
relation to the O&M Program, the duties or obligation of the Parties, or the
implementation or interpretation of the O&M Program, that remains unresolved for a
period of thirty (30) days (or such shorter or longer time as agreed by the Parties),
such dispute shall be forwarded by written, notice to the Chair of the Governance
Board for resolution by the Governance Board members. The written notice shall set
forth the nature of the dispute and the resolution and relief sought. Should the
Governance Board be unable to resolve such dispute by unanimous decision, within a
period of thirty (30) days from submission of the dispute to them, such dispute shall
be forwarded {o the Senior Managers, who shall meet within thirty (30) days (or such
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sho~er or.longer time as a~reed by the Senior Managers) to discuss and attempt to
reach a resolution of the dispute. Should all attempts at resolution by the Senior
Managers prove unsuccessful, with the written consent of all Parties Whichare parties
to such disputes, the dispute vail be submitted to mediation which shall be conducted
using any procedures agreed to by such Parties. The mediator will not render a
decision, but will assist .the Parties in reaching a mutually satisfactory agreement. The
Parties to the dispute agree to equally split the costs of the mediation.
AUDIT RIGItTS:
12.1 Audit Request: A Party may request the Program Treasurer to cause an audit to be
conducted of the Escrow Account established in accordance with this Agreement.
Such audits shall not be conducted more often than every two (2) years. Such audit
may examine records which relate to work associated with Contributions including,
but not limited to, the financial and contractual records of the Program Treasurer,
Western, and Reclamation. The costs, including reasonable costs incurred by the
Program Treasurer, Western, and/or Reclamation in the performance of the audit,
shall be paid by the Party(ies) requesting the audit.
12.2 Information Concerning Work Perforlned: A Party shall be afforded the
opportunity to obtain information concerning work performed under this Agreement
through reasonable requests to the Governance Board. l.fthe amount of information
desired becomes excessive, as determined by the Governance Board, the Governance
Board shall inform the requesting Party(ies) of same, and shall make arrangements to
provide the information requested at the sole expense of the.requesting Party(ies).
SUCCESSORS AND ASSIGNS: This Agreement shall inure to the benefit of and be
binding upon the PLrties hereto and their respective successors. No Party shall assign its
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15.
interest in th~i.’s:"Agreement, in whole or in part, without the prior written consent oft.he other
Parties. In no event, shall any Party assigm this Agreement to any Party that is not
f3.nancia!Iy responsible¯ or which cannot perform its obligations pursuant to this Ageement,
nor shall any Party" assign this A~eement on any terms at variance from those set forth in
this Agreement. No permitted assignment or transfer shall change the duties of the Parties,
or impair the chances of obtaining performance under this A~eement, except to the extent
set forth in such permitted assignment and approved in v,~ting by the Parties.
ENFORCEABIJ_,ITY: It is not the intent of the Parties that this Agreement convey any
fights to third Parties to enforce the provisions of the Agreement. This Agreement can only
¯ be enforced by the Parties or their successors.
SEVERABILITY: If any clause, sentence, paragraph, or part of this Agreement should
for any reason be finally adjudged by any cdurt of competent jurisdiction.to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the
remainder of this Agreement but shall be con_fined in its operation to the clause; sentence,
paragraph, or part thereof directly involved in the controversy in which the judgment is
rendered. If such judgment modifies or holds invalid any material terms or conditions of
this Agreement in such a manner that any Party is required to incur new or different
obliga.tions not expressly provided herein or forego benefits which itwas otherwise entitied
to, the Parties shall in good faith renegotiate the terms and conditions affected by the
judgment so as to restore the original balance of benefits and burdens contemplated by the
Parties as of the effective date of this Agreement. Such renegotiated terms and conditions
shall be in the form of an amendment to this Agreement which shall be effective upon
execution by the Parties. The original Agreement shall remain in full force and effect, as
modified by said judgment, until the negotiation process for the amendment is complete.
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16.
17.
18.
19.
20.
GENEPvM.., POV~ER CONTRACT PROVISIONS." Articles 1, 28, 29, and 31 through
43 of the General Power Contract Provisions, effective August 15, 1995, attached hereto,
are hereby made a part of this Agreement, the same as if they had been expressly set forth
herein.
RELATIONSI:glTP OF TI:EE PARTI~ES: The covenants, obligations, and liabilities of the
Parties are intended to be several and not joint or collective, and n0.thing herein contained
shall ever be construed to create an association, joint venture, trust or parmership, or to
impose a trust or partnership covenant, obligations and liabilities under this Agreement.
No Party shall be under the control of or shall be deemed to control any other Party. No
Party shall be the agent of or have a fight or power to bind any other Party without its
express written consent, except as expressly provided in this Agreement.
OWNERSlCIIP RIG!iTS: The ownership of, the title to, and the operation and
maintenance responsibility for any equipment procured with Contributions under the terms
of this Agreement shall be in the name of the UNITED STATES.
LIABIJ~ITY: This Agreement does not confer any liability upon the Customers for any
claim, action or judgment, arising out of or in connection with the work generally
described in this Agreement.
ATTACNTNVI~NTS AND EX!]!BITS !VLiDE PART OF AGREEMENT: Inasmuch as
the signatories, their contacts and representatives, contributing Customers, and individual
Customer commitments and Contribution(s) under this Ageement may change during the
term hereof, they will be set forth in Exhibits A, B and C respectiv, ely. Each of said
exhibits shall become.a part of this Agreement during the term fixed by its provisions.
Exhibits A, B and ~ are attached hereto, and each shall be in force and effect in accordance
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with its. terr~..s until respectively superseded by a subsequent exhibit. Upon signature by the
Agencies and the Program Treasurer, the Escrow Agreement will become a part of this
Agreement and copies will be distributed by Western to aii Parties.
21.EXECUTION .IN COUN~!’ERPART: This Agreement may be executed in a number of
counterparts and shall constitute a single document with the same force and effect as if each
Party had signed all other counterparts.
IN XNITNESS "WItEREOF, the Parties have caused this Agreement to be executed the day
and year first above written. The signatories hereto represent that they have been appropriately
authorized to enter into this Ageement on behalf of the Party for whom they sign.
Western Area Power Administration
By:
By:
Title: ReNonal Ma~ger ....
Address: 114 Parkshore Drive
Folsom. CA 95630
Bureau of Reclamation
By:
Title:~onal Director
Address: Mid-Pacific ReNon
2800 Cottage Way
- Sacramento. CA 95825 ...
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Contract No. 96-SNR-00110
IN WITNESS WI~EREOF, the Parties have caused tt~ @eemeat to be executed the
day and ),ear first above written. The sigmatories hereto represeat that they have been
appropriately authorized to eater into this Ageemeat on behalf of the Party for whom they sir.
(Seal)City of Palo Alto
Attest:
By:
Title:
By:
Title:
Address:
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Contract No. 96-SNR-001 I0
iN WITNESS Wt~REOF, the Parties have caused this Ageement to be executed the
day and .year first above written. The simlatories hereto represent that they have been
appropriately authorized to enter into this A~eement oa behalf of the Party for whom they sign.
(Seal)City of Palo Alto
Attest:
By:
Title:
By:
Title:
Address:
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Contract No. 96-SNR-00110
IN WITNESS WHEREOF, the Parties have caused this Ageement to be executed the
day and year first above written. The si~maatori.es hereto represent that they have been
appropriately authorized to enter into this Ageement on behaK of the Party for v,{hom they aiD.
(Seal)City ofPalo Alto
Attest:
By:
Title:
By:
Title:
Address:
35 Contraat No. 96-SNR-00110
Contract No. 96-SNR-00110
RESOLUTION NO.
BE IT RESOLVED BY THE OF
The ..is authorized, on behalf of
to execute this Agreement with the Western
Area Power Administration entitled Contract No. 96-SNR-00110.
Adopted:
Contract No. 96-SNR-00110
Effe~i’~=- ~<7u~ s~ 15,
PA~E
* !. ~i~icability .................................................2
iI.~ ~F SEEVI~ FBUVISIC~S.
2. Character of Service ................................ ...........2
3. Use of Capacity or Energy in Excess of Omut_ract Obligation ....2
4. Continuity of Service .........................................2-3
5.Multiple Points of E~_livery ...................................3
* 6.~etering ......................................................3-4
7.~ of ~ion Service Contract ....................4
8.Conditions of ~ion Service .... ........................4-5
9.Multiple Points of De!ivary Involving D~ and ~tted
Deliveries ....................................................5
i0.Ccmst_~c~, Operation, ar~ Mmintenance of Contractor’s
ili.
Ii.
12.
13.
* 14.
15.
16.
C~e of Rates ...............................................6
Mimimum Seasonal or Annual Capacity Charge ....................6
Billing and Payment ...........................................6-7
Nonpay~_nt of Bills in Ful! When Eue .....................- .....7
Adjustmerfcs for Fractiona! Billing Period .....................7
Aijustments for Curtailments to Firm Service ..................7-8
IXDWER SALES FRf]VISICINS.
17.Resale of Firm Electric Service ~8
* 18.Distribation Principles 8
19.Contract Subject to Color-ado River Cc~pact ....................8-9
20.
21.
22.
23
24.
25.
26.
27.
28.
29.
30.
Design Approval"9
Ir~ion and Acc~ ......................¯ ...............9
As-Built Drmwings .............................................9
mmi mt io
%]nird-Party Use of Facilities ..~ ..............................i0
Changes to Western Oontrol Facilities .........................I0
M~dification of Western Facilities ............................i0-i!
~ion Rights .... .......................................ii
Constructicn and Safety Procedure~ ............................11-12
Environn~ntal C~zpliance "12
Responsibility for Hazardous Materials ................... .....12
VI.OTHER PROVISICi~S.
31. Authorized Representatives of the Parties .....................12
32. Effect of Section Headings 12
33. ~ Operating Guidelir~s and Proc~ ...........................13
34.~llable Forr~as .........................................13
35.Liability ...............................................¯ ......13
36.C~tion of Contracting Parties ............................13"14
* 37.Transfer of Interest in the Contract ..........................14
38.Waivers .............- ..........................................14
39.Notices.. ......................................................14
40.Contir~ent Upon Apprmpriations ................................15
41.Officials Not to Benefit ......................................15
42.,Cmvenant Against Contingent Fees ..............................15
43.Contract Work Hcurs and Safety Standards ......................15
44.Equal Opportunity Employment Practices ........................15
45.Use of Convict Labor ..........................................15
"~;~ Aug~ 15, 1995.
i. Anmlicabilitv.
i.i. ~]nese Ge_~_r-al P~wer Contract I>rmvisions sha!l be a part of
the contm-act to whid%they are attached. ~3%ese provisions set forth general
conditions applicable to the contract. Specific terms set forth in the
contract have precedence over any provisien herein.
~ .!.2. If the Contractor has member utilities which are either
~y or ini~ct!y receiving benefits frc~ the cmntract, then the
Contm~ctor shall r~quir~ sudn ~ember~ to cc~ply with the General ~
Contract Prr~isions, Articles i0, 17, 18, 19,~ 29, 30, 36, 43, 44, ar~ 45.
2. Character of Service.
Electric energy supplied or ~t-ted under the contm-act will be
~phame, alternating current, at a neminal frequency of sixty (60) hertz
(cycles per second).
3. Use of Camacitv or Enerr~ ]m Excess of Contract Obliqation.
~he Contm~ctor is not entitled to use Federal ~, energy, or
capacity in amounts ~ter than the Western .cmntrmct delivery obligation in
effect for each type of service provided for in the cmrrtract ex~ with the
approval of Western. Unauthorized overruns of contract delivery c~ligations
shall he subject to charges, specified in the contract or the applicable rate
of authorized overruns, when the apprTmra~ expires, whichever occurs first.
cbligation. If ackiitional power, energy, or capacity is not available from
Western, the responsibility for securing additic~al ~, ~, or
capacity shall rest wholly with the Cerfcractor.
4. Continuity of Service.
Electric service will he mmpplied or ~tted ccnti!mxx~ly
except for: (i) fluctuations, interruptions, or redmctions due to
uncxDntrollable forces, as defined in Article 34 ~rx:ontrollable Foroes)
her~in, (2) fluctuations, .interruptions, or reductions due to operation of
devices installed for pcw~_r system protection; and (3) temporary
fluctuations, inte_~ruptions, or redum~ions, which, in the opinion of the
party supplyir~ the service, ar~ necessary or des~le for the purposes
"Bevised August 15, 1995.
of mairt~_nar~e, repairs, replaY, imsta!!ation of equipment, or
investigation ~ ir~ion. The party su~.. !yLng service, except in case of
emergency, will give the party to whom service is beLnj provided reasonable
a~ rmtice of such temporary inte_~rupt, ions or~ reductions and will rem3ve
the cause thereof with diligence.
5. Mu!tinle Points of Delivery.
Nhen electric service is su~p~ lied at or trznsmitted tm t~o or more
points of~ delivery under the same rate sdmedule, said rate schedule shall
~a~ply separately to the service supp~ lied at or transmitted to each point of
delivery; Provided, ~hat where the meter readirmjs are considered separately,
between points of delivery such that duplication of metered ~ is
possible, the meter readirm3~ at each affected point of delivery will be
adjusted to .cc~per~ate Zor duplication of power demand r~corded by meters at
alterr~te points of delivery due t~ abnormal conditions which are beyond the
Contractor’s control or t~mporary con!ttions ~aused by scheduled outages.
~ 6. i. ~he tmtal electric p~wer and energy supp. lied or ~tted
u~ier the contract :will be measured by metering equipment tm be furnished and
maintained by Western, a designated r~p~tive of Western, or. by t_he
and maintained by the Cent_factor or another p~wer supplier, as prmvided in
the contract, n~=ts the metering standards of Western if such meterir~
equipment will be used for billing or other a~ing purposes by Western.
6.2.. Meters sdmmll he sealed ar~ the seals shall be broken only
upon .occasions when the ~ters are to be /respected, tested, or adjusted, and
representatives of~the ~ parties s/hall be afforded r~onable
q~portunity to be present, upon such occasions. Metering equipment shall be
inspected and tested each year by the party responsible for meter
Meters shall also be tested at any reasonable time upon request by either
party hereto, a supplemental pc~er supplier, ~ion agent, or control
area c~eratmr. Any meterin~ equi~me/Tt fcund to be damaged, defective, or
inaccurate shall he ~ and r~adjusted .or replaced by the party
responsible for .meter maintenance. ~’~ters fcund with broken seals shall be
tested for trumpeting and, if appropriate, meter readings shall be adjusted by
Western ~rrsmant tm Article 6.3 bel~.
6.3. Ex~pt as otherwise provided in Article 6.4 ~f, shouid
any meter that is needed by Western for billing or other a~ purposes
fail to register accurately, the electric pc~_r ar~ energy supplied or
~tted durir~ such period of failure to reg~ accurately, shall, for
billing purposes, be estimated by ~-tern frmm the best available
information.
Zevised August 15, 1995.
3
6.4< If accep~ ~able L~ions and tes~ of a me ~ter needed
6.5. Any correction in billing resul~ fl~m co~ion in meter
records shal! n~rmally be made in the next monthly bill rendered by Western
to the Contr~ctmr.. Pa~ of such bill shail constitute fu!l adj~t of
any claim between the parties hereto arising out of inaocuracy of metering
7. Existence of ~ssion S~_rvice Contract.
If the cmntrmct provides for Western to furnish services usir~ the
facilities of a third par~y, the ebligation of Western shall-be subject to
and contingent upon the existance of a ~ion service c~ntl-act granting
Western rights to use such facilities. If Western acquires or constructs
facilities which w~uld emmble it to furnish dimect service to the C~ntractor,
Western, at its ~c~tion, may furnish service over its own facilities.
8. Conditions of ~ssion Service.
8. I. When the electric service under the cantract is furnished by
Western over the facilities of others-by virtue of a tm-anmmission service
al-range~ent, the power and enem~y will be furnished at the voltage available
and under the conditions which exist frmm time to tJx~ on tb~. ~ion
8.2. Unless otherwise provided in the ~ct or attached rmte
schedule, the Contractor shall maintain a power factor at each point of
delivery frmm Wes-tern’s ~sion agent-as required by the ~ion
8.3. Western will endeavor to inform the Omntm-actor frr~ time to
time of any ~ c~lated on the system over which the service is
~supplied, hut the costs of any changes made necessary in the Contractor’s
system because of changes or coniitions on the s~ over which the service
is supplied shall not be a charge ag~ or a liability of Western.
8.4. If the Cantractor, because of char~es or conditions c~ the
system over which service urger the contract is supplied, is required to make
c~es on its system at its own expense in order tm corfcj_rme receiving
service under the contract, then the Contractor may terminate service unler
the contract upon not less than sixty (60) days’ written notice given to
Western prior to. makir~ such changes, but not the.
Exhibit C
City of Pato Alto
ConLract No. 96-S*rtZ-00 ! ! 0
Exhibit C
(Individual Customer Commitment and Contribution)
!. This Exhibit C, to be effective under and as a part of Contract No. 96-SNR-00110
(hereinafter called the Agreement) shall become effective upon execution, and shall remain in
effect until either superseded by a revised E>’&ibit C or upon termination of the Agreement.
2. The City of Palo Alto a~ees to make a Contribution pursuant to Section 8 of the
A~eement for the Fiscal Year and in the amount specified in Section 3 below. The minimum
Contribution commitment level required to qualify as a Contributor pursuantto Section 5.4 of the
Agreement is indicated in Column 2 of the table shown in Section 3 below.
3. PIease spec{fy the Contribution commitment level(s) in the appropriate row(s) for the
applicable FY(s).
Cduran I Colunm 2
FY Section 5.4
Qualifying Amount
in Dollars
!998
!999
2000
2001
2002
N/A
N/A
N/A
206,995.71
206,995.71
Column 3
Contribution
Commitment Level
Amount in Dollars
206,995.71
206,995.71
Column 4
Revision No.__0
Con~bution
Commitment Level
Amount in Dollars
Column 5
Revision No. __0
Contribution
Commitment Level
Amount in Dollars
The signature below commits the Customer named to make Contributions, for the
specified Fiscal Year(s), up to but not greater than the level indicated in the latest revision of the
Contribution commitment level for a specific FY.
City of Palo Alto
Date of Execution:By’:
Titlei
Address:
Exhibit
City of Palo Alto
Contract No. 96-SN-R-00110
Exhibit C
(Endividua! Customer Commitment and Contribution)
1. This Ex_hibk.C, to be effective under and as a part of Contract No. 96-SNR-00110
(hereinafter called the Agreement) shaI1 become effective upon execution, and shall remain in
effect until either superseded by a revised ExNbit C or upon termination of the Agreement.
2. The City of Palo Alto agrees to make a Contribution pursuant to Section 8 of the
Agreement for the Fiscal Year and .in the amount specified in Section 3 below. The minimum
Contribution commitment level required to quaIify as a Contributor pursuant to Section 5.4 of the
.Agreement is indicated in Column 2 of the table shown in Section 3 below.
3. Please specify, the Contribution commiranent level(s) in the appropriate row(s) for the
applicable FY(s).
Colurrm 2
Section 5.4
Qualifying Amount
in Dollars
Column 3
Contribution
Commitment Level
A.mount in Doiiars
Column J
Revision No.__0
Contribution
Commitment Level
Amount in Dollars
Column 5
Rev{sion No. __0
Contribution
Commitment Level
A_mount in Dollars
1998 N/A ............t
1999 N/A
2000 N/A
200I 206,995.71 "[206,995, 71 ....
2002 206,995.7t 206,995.71
The signature below commits the Customer named to make Contributions, for the
specified Fiscal Year(s), up to but not greater than the level indicated in the latest revision oftke
Contribution commitment level for a specific FY.
City of Palo Alto
Date of Execution:By:
Title:
Address:
City of Palo Alto
Contract No. 96-SNR-00110
Exhibit C
(Individual Customer Commitment and Contribution)
This Exhibit C, Revision 5, to be effective and as a part of Contract 96-SNR-00110
(hereinafter called the Agreement) shall become effective upon execution, and shall
remain in effect until either superseded by a revised Exhibit C or upon termination of the
Agreement.
The City of Palo Alto agrees to make a Contribution pursuant to Section 8 of the
Agreement for the Fiscal Year’and in the amount specified in Section 3 below. The Fair-
Share Funding Level as defined in Section 8.2.4.1 of the Agreement is indicated in
Column 2 of the table shown in Section 3 below.
Please specify the Contribution commitment level(s) in the appropriate row(s) for the
applicable FY(s).
Column
FY
2002
2003
2004
2005
I I Column 2
Fair-Share
Amount
in Dollars
$488,859.94
$1,496,I08.56
$3,766,717.49
$4,348,523.58
Colurrm 3
Revised
Fair-Share .Amount
in Dollars
$488,859.94
$2,126,998r80
$4,853,642.05
$4,348,523.58
Column 4
Revision No. 3
Contribution
Commitment Level
Amount in Dollars
Column 5
Revision No. 4
Contribution
Commitment Level
Amount in Dollars
$606,251.79 $606,251.79
1,500,000.00 $1,500,000.00
$384,914.59 $3,800,000.00
0l 0
Column 6
Revision No. 5
Contribution
Commitment
Level Amount in
Dollars
$606,251.79
Fair-Share Funding Level amounts and Contribution Commitment amounts, if any, are not
shown for fiscal years prior to fiscal year 2002 in the above table. For that information refer to an
earlier revision of Exhibit C.
The signature below commits the Customer named to make Contributions, for the specified
Fiscal Years(s) up to but not greater than the level indicated in the latest revision of the
Contribution commitment level for a specific FY.
CITY OF PALO ALTO
Date of Execution:By:
Title:
Address:
Page ! of 1
Exhibit C, Revision 6
City of Palo Alto
Contract No. 96-SNR-00110
Exhibit C
(Individual Customer Commitment and Contribution)
This Exhibit C, Revision 6, to be effective and as a part of Contract 96-SNR-00110
(hereinafter called the Agreement) shali become effective upon execution, and shall
remain in effect until either superseded by a revised Exhibit C or upon termination of the
Agreement.
The City of Palo Alto agrees to make a Contribution pursuant to Section 8 of the
Agreement for the Fiscal Year and in the amount specified in Section 3 below. The Fair-
Share Funding Level as defined in Section 8.2.4.1 of the Agreement is indicated in
Column 2 of the table shown in Section 3 below.
Please specify the Contribution commitment level(s) in the appropriate row(s) for the
applicable FY(s).
Column 1 Column 2 t Column 3 Column 4 Column 5
FY Revision No. 4 Revision No. 5 Revision No. 6
Fair-Share Contribution Contribution Contribution
Amount Commitment Level Commitment Level Commitment Level
in Dollars Amount in Dollars Amount in Dollars Amount in Dollars
2003 $2,126,998.8 $1,500,000.00 $2,200,000.00 $2~200.,000.00
2004 $4,853,642.05 $3,800,000,00 $4,900,000.00 $4,900,000.00
2005 $4,348,523.58 I 0 $4,400,000.00 $4,400,000.00
2006 $5,588,336.09 i 0 0 $5,600,000.00
Fair-Share Funding Level amounts and Contribution Commitment amounts, if any, are not
shown for fiscal years prior to fiscal ).’ear 2003 in the above table. For that information refer to an
earlier revision of Exhibit C.
The signature below commits the Customer named to make Contributions, for the specified
Fiscal Years(s) up to but not greater than the level indicated in the latest revision of the
Contribution commitment level for a specific FY.
CITY OF PALO ALTO
Date of Execution:
Title:
Address:
Page 1 of l