HomeMy WebLinkAbout0371.092"
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Auqust 6, 1992
THE HONORABLE CITY cot~C!L
Palo Alto, Calif~rnia
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Se?tt~e City t.lght rapacity and Energy Exchang5! Ag:-eelPent
Members 0 f the Council;
Report in Brief
This repolt request~ that Council adopt the attached resolution
~uthorizing the Mayor to execute the Seattle city Light capacity
And Energy Exchange Third Phase Agreement (SCL Exchanqe
Aqre~entl~ This agreement provides for a seasonal exchange of
electric resources between the cities of Palo Alto and Seattle.
This exchanqe viII benefit both cities through the sharing of
resources needed to meet their customers' seasonally diverse
demands for electricity. Savings are achieved by deferring the
need to purchase or construct additional resources~ The
utilities Advisory Commission has reviewed this proposal as a
part of the Integrated Resource Plan and voted to recommend
approval.
Background,
Early in 1992, the Northern califcrnia Power Agency {NCPA) began
investiqatinq exchanqing energy 'With t..l].e northwest region.
Following preliminary tu",," with Seattle City Light (SeL), it wa.s
concluded that a capacity and energy exchange arrangement would
be highly beneficial to NCPA summer peaking members~ Therefore,
during $pring of 1992, :s:t.aff was authorized to engage BeL in
negotiating the final terms of the excnanqe agreement~ Tha
negotiations were successfully completed in June 1992~
Concurrently NCPA metDbers., including Palo Alto .. conducted their
own independent analysis ot the proposed exchange to determine
their individual optimal participation share.
In June 1992, Palo Alto staff completed the analysis phase of the
Integrated R~source Plan (IRPj for the electric utility which
showed that the optimal exchange with SCL woul~ be 11 Hegawatts~
participating in the SCL EXchange Agreement was among the IRP
recommendations presented to the Utilities Advisory Commission
(UAC) on July 1, 1992~ The UAC voted to unanimously approv~
st~tf's recommendation to participate in the SCL Exchange
CMR.371.n
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Agree~ent e~ the 11 MW level.
Piscussion
A primary objective ~f resource planning is to provi~e a
portfolio ot reSOlJrces t."tat cont.inuously Itleet, at. "least cost,·
e,;u&toJ:ilers~ dema.nd for electricity, as it varies from month to
month and trom season to season. For Palo Alto·s system, the
maximum de~nd for electricity (and consequently the greatest
need for generation) oc~rs during the s~~er ~onths~
Hi&toricallYI the s~er d~mand h3S been 30 to 3$ m6gawatts
higher than the mAximum demand during the winter months. This
results in Palo Alto having a considerable surplus during th~
wint'itr season.
prio~ to 1984, Palo Alto relied entirely on the western Area
power Agency contract to meet all of its power needs~ The winter
surplus did nDt constitute a ~urden because western charged only
for the amount of qenecating capacity needed durinq any given
month~ After 1984, the city's demand exceeded the contractual
western entitlement~ Since Western is no longer sufficient to
meet the City's needs by itselt. Palo Alto has made ether
commitments to additional resources, such as the Calaveras
project~ These supplemental resources have associated fixed cost
obligations that must be paid all year long, whether or not the
~.~~~C~ is required to b& operating. For these resources, a
winter surplus would constitute a financial burden.
Following are. three al ternatlves to reduce the financial burden
associated with the fixed Cl)sts of resources that have the same
output year around:
~. Sellinq or transfe~ring the winter surplus within California.
This is the least likely solution to the p~oblem because of
lack of regional demand for winter s~pplies.
2. ?~rchasing 6~~r only re50urces~ This is a reasonable
solution to the problem, which is in fact part of the City's
long-term strategy. However, during part of the su.mmer,
Palo Alto ~ay incu, some unnecessary fi~ed payments.
3. Exchanging pow2r with regions that have a high winter and low
summer demand for electricity. Where the opportunity exists,
this provides the most flexible as well as the least costly
sol~tion to the problem.
Analysis
Staff conducted a preliminary investigation of the SeL Exchange
Agreement, usinq sim~lified ass~ption5 regarding the
availability of future resources. The early analysis suggested
that power purchase costs ~ere minimized at a participation level
CXII:371,92 2
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ranging from 10 to 15 MW. Statf then an31yzed the SCL Exchange
Agreement in the context of the developDent of the 1992 Electric
Inteqrated Resource Plan.
The result is th2 recommendation to participate in the SCL
Agreement at the 11 XW level. Und~r this arrangement, Palo Alto
may receive up to 11 MW during the summer months and in return~
Palo Alto would deliv~r~ if SCL chooses, 8.36 MW during the
winter months. For a detailed descl"iption of the agreement,
please refer to the attached exhibit.
RecommendatioD
Staft recommends that Council adopt the resolution authoriZing
the Kayor to execute the attached Seattle City Light Capacity and
Energy Exchange Thir~ Phase Agreement~
Respectfully s~.'~lIitted,
TOM KABASHI
senior Power Engineer ,
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RICHARD L. yomfG f'
Director of Utilities
( • n J.,uU1l' ~ n AlIA W~rAM ZANK~';
City Manaqer
Attachment: Agreement
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RESOLU'I'lON NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
APPROVING A.."ID AUTHORIZING EXBCUTION OF THE SEATTLE
CITY LIGHT CAPACITY .AND ENERGY EXCHANGE ThIRD
PHASE AGREEMENT OF niE NORTHllRN CALIFORNIA POWER
AGENCY
WHEREAS I the Northel~ California Power Agency (~NCPA~) has
developed t.he "S~attle City Light Capacity 21.-:1d Energy Exchange
Northwest Tnird Phase Agreement-setting forth its participating
~ers' rights and obligations vith regard to a project for the
seasonal exchange of electrical capacity and energy to be inter
connected with the California-Oregon Transmission Project; and
WHEREAS. the NCPA Commission approved that Agree..",ent on
July 23, 1992; and
WHEREAS, the City Council. following review by the
Utilities Advisory Commission, has determined it is nece6~ary and
desirable to participate in the Seattle City Light Capacity and
Energy Exchange Northwest Third Phase Agreement, with a participa
tion percentage of 18.333\.
NOW, THEREFORE. the Council of the City of Palo Alto does
hereby RES01,vE as follo~6:
SECT:QN 1. The -Seattle City Light Capacity and Energy
Kxchange Northwest Third Phase Agreement-is hereby approved.
SECTIQ!i 2. The Mayor is authori zed and d:i..rected ti:> execute
an exe~ution copy of the Agreement.
FECTIQ~ 3. The Council fi~d9 that there is no possibility
that the provisions of the Agreement will cause a significant
effect on the environment, and upon that basis. finds the project
exempt fram the provisions of the Californid Environmental Quality
Act.
INTRODUCED AND PASSED:
AYES:
NOBS:
ABSBNT:
ABSTENTIONS:
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ATTEST:
City ClerK
JU'PROVAD AS TO FORM:
City Attorm~y
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APPRO"r-go :
Mayor
City Manager
Director of Utilities
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NCPA
Northern California Power Agency
180 Dray Wlty, ~ CaibrIia 9SO!8
MICHAEL W. McDONALD --(916) 7Il1-4223
July 28, 1992
Mr. Richard Young
City of Palo .>\.ito
P"O. Be. 1025Q
2.50 Hamilton Avenue
Palo Alto, CA 94303'{)862
Subject Seattle City Light Capacity ar:d Energy Exchange TI-.ird Phase Agreement
Dear!.k Young:
The subject Agreement is encIc.sed for e;cecutiDn by your aut.1or..zed r<::prf-..~nrative. I have also
enclosed for your records the unexecuted final copy of t.l:!e Capacity and Er..ergy Exchange
Agreement between Seattle City Light a.'ld NCPA.
Seartle City Light bas begun proceduros fo< approval by the Seattle City CounciL I am told L,e~
require up to 90 days from the time the ordinar.ce package is submitted to the tim~ their Cit:.;
CouoC'J authorizes execution. Consequently, I expect SeartJe City Ught to execUle the Ex-change
Agreement in mid-November. A~ thar time, t'ley will ~mit the fully ~xeC'1.lted &change
Agreement to BPA and bes..:'.t} negoo"at'ion" f-.x a share oft1.e Third AC Interne. I will keep you
pcs!ed on Seattle', progress"
upon appro",.l by your Cit! COIL'lciL please send an "",,,cuted C<:'~ of the Third Poase
Agreement and approving rf>,...~lution to th.r.: art,::nrion:)f ~1.5.. Gall Sipple. Onc.e she has recei',Ie'~
t.ie documents trGm all part:icipants, she will forward a fully exeC1:red copy t.:> your City Oerk
along with a copy for your records.
By~. of this letter, r am also forwarding: a copy of the Third Pbase Agreement.: ~ ... , your Cit)
Oerk for processing.. Thank you for your attention to thi.s matter.
~~~'A~ nlo~c. GREEN
Power Contracts Engineer
TCG/del
Encloswes
cc: Gail gipplc
Palo Alto City Cierl<
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CAPACI1Y k"ll EI'o'ERGY EXCHANGE AGREE1'.LEYf
BETWEEN
THE CITY OF SEAlTIg, CI1Y UGHT DEPARTMDT
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CAPAC!1Y.""'ill DlERGY EXCHA,'{GE AGREEMENT
B~EEN
THE em' OF SEATILE, CITY UGHT DEPARTh1ENT
NORTHERN C.UlFOF. 'I'IA POWER AGENO'
PaO"e No.
I-De:fi..TJition.s
II. Ttmn 4
ill, Capacity and Energy Exchar:ge 4
rv. Operations 7
V. Settlements 9
V1. Authorized Representative lD
VIT. Release and bdenrr...i5cation 10
VI. Assignment 11
VII-Venue 11
VID. Notices 11
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CAPACITY AND El'iERGY EXCHA'iCE AGREEMEo'\l
THE Cm'OF SEAITLE, CITY UGHT DEPART:\1ENT
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NORTHERN CALIFOR,\'1A POWER AGEl'iCY
THIS AGREF!v1ENT, entered into as oftt.is __ day of by and
be~",een TIlE CITY OF SEATTLE, CITY UGHT DEPAR"P..1El'<l CSeattle"). a
department of the City of Seattle, a vla<ihington muni6paI corpontion, ai1.d
NORTHERN C.ALIFORNIA pm,'ER AGENCY (,NCPA"), a California JOlllt Power>
Age:lCY with its prindpal offices In Roseville, Caliiorni,s...
WITNESSE1H:
~1fERE.AS, NCP A operates a rumrner peaki'1g dectric utility S)'S,em composed
primaruy of bydroelectric generating plants together \JIith some geothermal electric
generating plants a..1.C combustion turbines; and
v.,'HE.RE..~. Seattle operates a winter peaking electric utility system composed ptircariIy
of hydroelectric: generating plants togeL1.Cr with some t.i.errn.al electric gene:an.'1g p.lants;
and
w11EREAS, NCPA has electri-: power available during the v..inter months which {t is
. wJling to make a ... ~...iIab;:e to Seattle in return for electric power:.r.. t~le .'i1lffiL-Uer <Dcntr .. o;.;
and
'-\7J-iEREAS, Seattle h<lS electric power availabie during the summer months wrJc.h it is
'oWllling to make available to NCPA in return for electric power in :he winter months; and
WHEREAS, NCPA and Se3LtIc are expeC'!'ed to be: intercoIL'Tlected thrDug.i1 the
CalifDrnia-Oregon Tra..Jsmi.s.sion ProJect and the T-hird AC tra.'lsmission systems, and
WHEREAS, rris the intent of both SearJe a."1dNCPA t'IJ.,lt-bcrn Parties rec:!fve be.r.efits
from the seasonal eY.change of electric ~'er;
NOW, !REREFORE, in consideration of the mutual benefits to the Pa.."1ies, the Pa. ... ties
hereto agree as follows:
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A!; used herein:
1.1 Ageement
ARTICLE 1
DEFI;--IH10§
NC".J.i~[tle
CaptlCity &[od Ene~'
ExcMUi~ AgM;or.m~Q1
Shalt me.an this Capacity;md Energy E.~hange Agreement bet'w"een Seattle and
NCPA.
1.2 Associated Energy
Shall mCal: ener", associated with the Firm Cap,cit} made avail.bie by the
Delivering Party on the demand of the Receiviilg Part;.' under -&.i:! Agreement i:lS
described in S<ctiOD 3.
13 Au!hnriZt".rl R:;megntarive
The indi-...-iduaJ specified P".l.I"S'U.ant to . .6,.;.tic1e \11 who.is authorized to issue iorrn~'
notices pursuant to ~-tion 10. L
1.5 C0nttacr Year
Shan mean each ccr..secutive t-Nelve month period dll."lng the term of -:his
.A..greement beginning"3t (X)Ql h0ur.3 Pacific Time on JUIle 1 and ending 2.t 24-')0
hours On the next May 31.
Shall mean the California-Oregon Tra..":'smi:=sion Projert.
1.7 Delivering PartY
Shall mean Seattle during. pericds when SearJe is 0blig:a~ed to provide the
'rervlce.s descnbed in Section 3.1 and shall mea..Tl NCP A du:r"...ng periods when
NCP A is obligated to pfO\-ide the service5 &scnbed 1.'1 Section 32.
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NCPAJS~ltle
upadty aDd f.ru~r>.J·
Exc!Lange AgrttlDellt
Shall mean the capacit), made ava.:l3.bk: by £lIe DeJjvering Parry to me Receiying
Party under this Agreement as oeser-bee in Secnnn 3 which shall be supported by
all the res-ources available to the Del.iver;ng Party.
1.9 Good Vtilit',T Practic~
Shall mean those practices, methods a.'1d equipme:lt inclu.ding: levels of serlice.s
and prQ\oisions for contingencie:;, as modified ITom :i,-ne to Ci"-DC, t..lat a..-e at least
as good as thOSG commor-Jy used it t.1-Je w~stem l..iI"Jted St<:Jes to operate, reliably
and safdy, electric power facilir:es tJ se:'.re a utility's CYt'D custorne:-s dependabiy
ai"Hj econo:nically, 'N'i!h due r-~gard'fDr dJe r:onservation of n3.tllt-al resources a.nd
the prote.ction of tae environment of the serv:lcP. ar-::a.
uo Part!.
Shan mean Seattle or ;:-";-CPA.; collectively. Parties.
1.11 Point af Deliverv
Shall be as defined i.~ Section 4..3.
1.12 Recerving Party
ShaII mean NCPA d~Jlg periods wben NCPA is entitled to ncelve the services
de...~'bed kn Section 3J and sJm .. t1 mean Seanle du..ring pencds when Sea~le is
entitled to receive the services descnbed in Section 3.2
1.13 Third AC Interne
Shall mean the new AC transmission line under consat...::tiDn be:v.:eer'. t.'ie Pac;:5c
NoI"tlw.'est and !:he California -Oregon border ..
1.14 ThjnJ PartY
ShaD mean a perron D. entity ather than Sea:t1e or NCPA
1.15 Uncontrollable Farces
ShaD mean any cause or causes that are beyond the control of the Pa .. • ... ~1 and
which render that Parry unable to perfonn an obligation under this Agreement,.
and which by the exercise of due diligence such Party could not re3.S{mably "tI.....ave
been expected to avoid, and which by cr..le dilige:Jce it is unable to overcome.
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2.1
2.2
AR TlCLE II
?" CPA,'Seatt.l~
C:I pacit: aed [ner.;y
Exchange ;~recm::r:t
ms Agrecr.::lent shall become effective on tl,e date signed by Doth Far:ies.
2.2.1 Termination Notice. ElCept as orhe~.se proV";dec herein, this
Agreement rruy be ternlln2.ted by either Pa...-:.y with at least seven years
a ance 'Nrirren notice: but L'l no event shall termination tak'! effect
prior to May 31, 2014 or May 31st of a71yyear thereafter. Once a notice
to terminate is given, it may ~vt be revoked wit.~out the written. consent
of the other Party.
222 Unavailable or Unacce~tab!e Transmission Service. Dis Agr,:'--eme:tt
may be terminated by either Party with at least thi..rty days adv-a.nce
written notice if any of the foilowing conditions fail:; to be fu1filled by
June 1. 1995:
a. Th< COT? is energized and cornroerdally operable;
o. The Third AC Intertie is energized and cornmcrc.iany operable;
c. Seattle has entered into a capacity Q1.~nersh:ip contract \Io1th BPA for
an O""J,71ersb.ip interest in L'J.e Tnird AC Ime;tie of sufficient size to
satisfy the transmis.5ion requirements of thic; Agreement.
d. Each Party ha5 stipulated in writing that;t is satisfi,d that the
agreemcnt(s) t.1te other Party has provided pursuant [0 Section 4.4
prc .... i~ the other Pa.."1y with t:ransmis..~on capability sufficient tv
meet the other Pa.rty's obtig-J.t!ol"lS under !pjs Agreement.
23 All ooligations under this Agr~errenr shan be pre:se.:ved ullrJ satisfied.
ARTlG..Eill
CAPACTIY AND E~./ERGY EXCH.",,-"iGE
3.1 Servicf::s Provided bv Seattle
Seattle shall make Finn Capacity and Associated Energy availabl! to NCP A at
the Point of Delivery in the amounts and for th e periods as fanows:
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;-'·CPAJSe.'l.ttIe:
Dpadty ud ECI.e-ro~
Excb.1!l~ Ag~melll
,}."'!c"'.JI1'l!.'"./.L ____ DelivIT~
Maximum
Ene-rgviDav
Ma;'Cirnum
Ene~l\r,l'!\.1onrh
June
July
Aug.
Sep~
Oct 1-15
60 ~.1Vt'
(j() )'fW
60 M\'l
6OMW'
60 MVi
720 M\l.,l1
720 ~fi\ln
460 M'1ih
720 MV/h
720 M\,'h
21.600 ~!'.''h
22,320 MV,'h
1~,260 ~ffill
21,600MWh
10..800 M'1ih
3.1.1 Deiiveries to Ncr A sh311 be mad.: fJ.!'St, beginning. on June 1
immediately [onawing the date that provisions (a) through {d) of
SectiOD 22.2 are fuliilled, and centinuing each Contract Year untt'l &Js
Agreement Ls termi11ated.
3.l.2 The total Associated Energy delivery by Seattle to XCP A shail be
9O,5&J ~ during the poliod June I through October 15 of eae:'
contract year.
3.1.3 Em:.rgy delivered by Seattle tc NCPA;"'"1 A.ugust malJ be delivered orJy
during Lle period 0801 thrDUgh 2200 hours, Monday tJuOllg.1 Sund3~', or
3.S otbenvise agreed by the Parties' schedulers or di~patchers at the tiroe
of delivery.
32 Serv'.ce.< Pmvided bv NCPA
~2.1 NCPA sball mak.e available to Seattle Finn Capacity and Assoa:ated
Energy at the Peint of Delivery during .A~ug'..I!jt or November, at Seattle's;
Dptlon, in the amounts and for the pe=iods as follows:
3.2.1.1
3.2.12
During the poriod 2201 through 0800 hours, Monday
through Sunday in August, N('?A ,harJ make ava.;lable to
Seattle Finn Capacity In t..~e arnou.r..t of 46 ~: ar..d
.~ted Energy in an amount not to e.'oc.:ed 4tD ~f'\l,rn
per day and ]4,260 Mw'b for the month.
Du.."ing the period N c.vembcr 15 t.!;;rougb November 30,
NCP A shaD make available to Seattle Firm Capacity in the
amou..'"lt of 46 MVl and .Associated Energy in .an amclmt noc
to exceed 1,104 r..-rWh per day a:1c 17,112!vf\\'b. for the
period. p:ovided t.""at DO ,~ated E.,'lergy W4j delivered to
Seattle in A ug-<lSt of that calendar year.
Any delivery of Associate d Energy to Seattle in A ugusr shall
cause the maximum ks....·\(.}ated Energy available to Seattle
from November 15 through November 30 to be reduced to
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;o.oC P;. .. Seattle
Capacil)' .uld Energy
E.'I(Ch:HI"gf .~reemr!ll
14,'260 !'-.f\Vh m1:1US tJ.'"l.e qua."ltit)· of Ar;.xiate.:i E.'1ergy
delivered in AUg'..!St of tha~ .:alendar year.
3.1.1 NCPA shall ma.:".-e FL.'TIl Capadty and Assodated Energy a· ... ailabk to
Seattle at the Point of Delivery in the amOuIrts a."ld for the pe.ri0'is: as
follows:
Rate of :\-faXIlTiUm '\1aximum
Month Deliv~rv Energ".nDav _ Ene:-ID:!:'\Jc~nth
Dec. 46 !.I;V 720 MWll 22,320 } .. {\.Vh
J.", 4QMW 710 ~ml1 22} 2D ~!Vr'b
Feb. 46MW 720 ~lWh 20,160 MV-11
Mar. 46MW 720 MVlh 22,32C MVlh
Apr, 12MW 14<l MV-'h 4,464 MVvll
323 Except as prcvidej in Section 3.2.11, deliveries to Seattle shall
commence on November 15 w..rnediately foilov.±-lg the completion of
initial deliveries to NCP.4..., and shall continue each Contract Yea: uno]
t.lris Agreement is te:m.inated.
3.2.4 The mamnwn total Associated Energy deliver)' to Seattle by ~-ICP A
shall be 108,696 M\Vh during th~ period November 15 through Ap!"1J 30:
except as provided in Se.;tion 3.2.1.3.
33 FuIfiIIrnent of Obligations
A decision by one Pa.~ Dot to take delivery of any or an the energy to which it is
entitled under this ~I\.greement.in one Canrracr Year shall not relieve that Party
from t.'le obligation to deliver all the energy to which the c.ther Party is e:ltitled ~n
a Contract Year. .
.3.4 l...::.ntinuir: of Servic.e
Finn Capacity and As5Ol..iated Energy is intended to be avaiJabie to the Re.cei .... .ng
Party at the t1J-ncs and in the amounts provided under tr.is Agreement. L'1order
to adlieve t.'lat degree of avai!ability, the Delivering Pa.rty shalI provide adequate
capacity and spin:'l.ing reserves and prime-mover ·energy 2..i·1d sufficient
transmissic-n to move such power to the PoiEts c.f Delivery subject. to Section 4.4,
and consistent "With Good Utility Pracoces.
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ARTICLE IV
OPER." TrONS
4.1 Schedules
All energy deliveries shaD Je scheduled lS folluws:
.~l.PNSe:l.LtJ~
CaPQdt)l.and Ecer:Y
E.xrh..an=~ A.g~[Dell;1
4.1.1 ~tablishin~~e·Schedules 'The Re:ceinig Pii..."\)' shall !lotify t~e
Deliveru,g Party of the hourly a..."D0~ts of energy to] be schejuTed hr
delivery durir.g the next day a: days. TI-.Js nor.J.icarion shaD occur before
lQ,lQ hours Pacific Time on the last regular wo:k day recogr..iz:d by both
Pa.r!lefi before t1e deJivery is scheduled to begin, The pre-schedule may'
be revise-d at any ti..--ne S"..wject to agreement of the Pa..rties' dispatchers or
schedulers.
4.1.2 SchedulinE Practices The Pa...l""jes shan sch;!dule in a:r~crdmce V,iLl-J.
Good Utility Practice and -~-ith the Westem Systems Coordinating
CounciJ scheduling practice,s in effect at t.t:Jc time sc..~edu1es a:e made,
and in accordance with the transmission requirements of Se:::tion 4.4
4.13 Ramcing R~tes The a."'lJount of c.'1a.,nge in sc.hedukd energy beTWeen
hours shall Dot e~.;eed 25 M\V per hOUT, unless a therwise mutually
agreed.
4.1.4 Cashing Out During any month, a Rec.:iving Parry may offer to seII
energy to the Deliveri.ng Party that would otherwise be available u.">'}ce:::
this agreement to the Receiving Pa."ty, which offer the Delivering Party
may freely accept or reject Any delivery of energy in excess of the
amounts in this Agreement, as detailed iII A..rticle III, or outside of ~"le
montP..5 desenbed in Article ill VoW be made u!1der ~.eparate agreement.
42 Vncontrcilabie Fcrce.s
In the event ofUnconrrollableForces. tho: Parties agree to cooperate in taking
necessary and appropriate action, including changing schedules. Any scheduled
energy that is nat delivered due to Cnconttallabie Forces ... ill be rescheduled and
delivered during like hours, as socn as system Clpabilities allow and as mutually
agreed by the Parnes' dispatchers or schedu.1e~ or, If t.llls is not p..lSSlble, will
result in a pro rata reduction Ijf e:1ergy for all months of !'enrrn. A:1
Uncontrollable Force that re...."1l1ts ill the pennanen! loss of the tra."'1Srnis:;i.cm path
between the two Parties' systems as obtained pursuant to Section 4.4, sha11 relieve
bOll; Parties Df their obligations under this Agreement, ai1er any Ac;.'>OCiared
Energy not delivered pursuant to Artide III has b.een c1Shed ou t
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4.3 Points of Deliverv
NCP,>\t'Se3Ult;
C.aP:,h .. lty and F.:lIergy
F...vb~!l:e ~.greEmea t
4.3.1 Reliveries to S~ahle ::'ne Po;r.ts 0f Deuve:y for deu-.. "enes:o Seattle by
~CP A s:'all b'! "3.t the poim wbe re tb e [r.rnsmjS:i ion lines of th e, Pacific
Northwest -Pacitie Southwc:lt AC Il:tert::ie cross the California-Oregor,
border ('Border)
4.3.2 Deliveries to NCPA The Peint d Delivery for df";~verjes to NCPA by
Seattle shall be at the painnvhere &..e transmission lir..es of the Pacific
Northwest -Pacific Southwest AC Intertie cross the Call1orn.ia-Oregon
border ('Border").
4.3.3 Deirve:ie,s of energy pUl"S1la.!it"ro 1Us Agreemer.t may be made at
alternate Points of Delivery s'<..lbje.ct to agreement bet\ll:een the Parti·:.,s'
schedulers or dispatchers. The Parties agree that reimbursement of
cost~ to ac:ornrnodate delivery of energy to m alternate Point of
Delive:), maybe necessary. AIJ.Y CGst to be billed for the delivery" of
power to an alternate Point of Delivery shall be agreed upcn in advance
of the t:r"c1Tl5acbon by the Partie--s' schedulers or dispatchers.
The Parcies recognize L1.at meir a bill ry to provide the servic.es desc.nbi.:d in .turicle
m will require that each of t,em obtain transmission caViclty from Third Parties.
Each Party therefore agrees to ase its best effor"LS to obtai.'"1 such contractUal
tra..'1srnisslon capacity ir::. an. arnomH not less tha.:, 110 pcrc~r.t of its .uaximu!D
Obligation to ddiver Firm Upacity pursuant to Article III. Eacb Pouty furL"er
agrees that the other Party shall not be r-:quired to Llbtain su{;n contractual
U'3.o1.smission capacity in any greater aJnount. If despite best efforts either Party is
unable to 'Jbtain from Third Parties, or to maintain,. sufficient transmission
servic: to meet its obligations under tJ-oJs Agreement, eith~r Party may request a
rn~eting at which the Parties: shaLl att-e:npt to renegQtiate the terms and
conditior.s of tJlis Agre:rnent
~.ch Party shall promptly provide the other Party w'ith a.i.Y contract with a 11"1.1rd
Party for transrrusskm service necessary to meet its obligation !l..'1der this
Agreement
Th~ Pa..-ties also recognize that ope:r.irionaI problems may Umir a Party's ability te,
util Z'::' Third Party transmissicn to provide Ft.r.n Capacity and Associated Enel'?;J"
in accordance with Article m. The Parties t..1.erefcre agree that the obligation of
either Party to provide such Firm Capacity and Associated Energy shall be
1::irolted to that which can De Tra."lSmlned over the operational transmission
capacity that is ~.vailable [row Third Parties and is in place at any particu.lar time.
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Capadty aod Enrtgy
Exd13l14le ~m~l
Except as p[o'rided in Section":.3, See..!tle ~tJ.aIl be re;,'ponsj})e far ail trcllsmis<:.ion
charges iilcurred for transmission ~rvices req'Jired to pro\1de or .re~¢iye servicf::
under this Agrcem~ north of the CJ.lifomia-Oregorl border. F..xcept as
provided in Section ..,03, NCPA shall be responslble fiJr all transmission charg-:s
incu..---r.:d for transluission 5er.."1ces required to provide or receive seI'V'ices undei
this Agr~ement south of tIle Califomia·Oregon border.
4.-5 T """,mission Losses
Seattle shall be responsible for all trar'.smission 1csses In(.."1.lITed for tr.i..'1SJ"'.js .. 'iion
services. required to provide or receiye se~icc under this Agreement norrJl of ~he
Caliiornia--Oregon border. NCPA sha.!J. be respol1 .. 'ilole for all transmission lesses
incurred for tran.sm.ission services required to p!'ovide or rece ive se rvice under this
agreement south of the California-Oregon border.
ARTICLE V
5.1 A Pa.--ty may bill t..!le other Party for the recovery at C053 incurred as a rcs..llt of
delivering power to an alternate POi. .. ·1t of Delivery pursuant to Section 4 33.
52 Payments for cashil1g out pursua..'it to Sectio,14.1A si.aTI be made pursuant to t~s
A.""!ic1e V.
53 Except as provided in Sections 5.1 and 5.2, no other payments are to be .JJ.ade to
either Party for the performance of obugations under this Agreem:-nt.
5.4 )'..ll power transactioru: hereunder shaD be aa:Dunted for on the basis of scheduJed
hourly quantities. An dlspa:dJ.ers llwohl'ed 1,1. the transactions shan m.aintain
:eccrds of hourly ochedulcs for a!Xounting ~.nd ope:-ati.ng Pll...'Yoses.
5.5 The ac.cDunting ~riod for tra:n,~ac:::ion$ hereunder shall be one calendar rnoorr..
5.6 On or before the 10th day of the month following: a month in which transactions
occur, the Party lnc.lIring costs pursuant to Section 433 shall rF.:nder a biD. to the
other Pany for such transactions. Pal"nes shaD. pay bills on or before the later of
(i) the 25th day of the month or (n) the 20th day foil""ing receipt of the bill.
Amounts wm<:h are not paid on ar before th~ due date shall t':lereafter accrue
interest at the rate of ODe percent (1 %) per mOrl th or the rnaxi.."ll'i.llD rate
pennitted by Jaw, whichever is le..o;s., from. the due &.te to the date payment i.5
received.
5.7 In the event any amount on any bill is in dispute, the disputed amount shajJ be
paid under protest when due. Upon detennination of the correct billing amount,
the proper adjusonent s.ha1l be paid promptly after the de.teI':i1l.ination, with
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u.p<Kit~ .and ED.erg.~
E."(Cbocgt" .~reem~nL
in~eres[ accrued at tJi.: nte of one pe~cent (l ~~) per month or the maximum rate
f.ennitttd by law, whicnc'.cr is less, c(:mpu~ed from the cD.te payment is recei'ir:d
5.3 All billings and paymo:r.ts m::iled by Seattl:. to !\'CPA sohal] be addressed to:
Northern C.alifC'IT'..ia Power Agency
Attention.: T:~asurer -COTltro!ier
180 eiIoy Way
Rcseviik, CA 956i8
5,9 All billings aJ'.d p<iymer~ts ma.!led by ~-CPA to SeanIe shall be addr~ssed to:
Seattle City Light
Attention: Manager, Resource Admir~str3.ti(Jn
1111 Tnird Avenue, Suit::: 420
Sea.ttle, WA 98101
AB.TICIE \1
Each Party shall specify its Aut.'orJ.ec Repr~&nta.tiv::: for purposes ('If tn.:s AgreemeIlt
wlthin thirty (30) days of the effecr:ve dare of this Agreement
ARTICLE V11
NCPA and Seattle will perform t.1;,eir respective servilXS under this Agreement as
iTldependent ccntractOni in a~ordance ~rjth their own m erhods, trill Agreemen t, a."lC,
applicable laws and regulations, Each Parry releases the otter from Liability for klSS or
. damage to its ele-.rrric syw~m a.'1d from all o!..+::er dai''Uages arising ou: of 0;: l."l ccrti1eCLQn
l,ltith the mber.s performance of this i\greeme:1t except damage di.n:ct]y I~su1ting rrGm
the ct.~e: Party's fa.t1ure to make capacity ,')! energy a .... ailable in aC:::8rdance ~~th the:
provisions of this Agreement. £lch Party, as indemnitor, shall indemnifY tl:e other
against and hOld it hannl~ from any and all liability for da.-nages or injuries to Tnird
Pat-ces, or damage to the property cfThird Parties, ~ting from, or arising out of the
performance of t!lls Agreement by the indemnitor. None of L~e indemnity and hGld
harmless provisions contained i.n th.is paragraph sh'an apply to injuries or damage
r:..<;uJ:ting from the negligent or VrtrilL-Ful conduct of th~ indemnitee or the indemnitee's
agents,. aT independent contractOr5 who are. d.i..r-ectIy responsible to said inderrmitee.
Upon demand, the inde mnitor ~ill reimbune the indemnite;:: for any c-ost<3 incurre d by
the indemnitee in defending any claim or action filed by su-!:h third person.
:0
AR!1CLE Vlll
ASSIGN"!E~1:
NCPA.'Se:mle
C'p:::lCit:)' az:!d E~~r.o'
E."(cb.::!o~e A:~Welll
This Agreemcm shall not be assigned ry either Party ~1mout :he prior w:irre:l appro .... al
of the other.
A.'<TICLEIX
VENUE
The P~e5 agree that the venue of any action which roay arise: Dut of this Agreement
shall be either the United States District Court for 1 he V,restem District of Washi'1gto!"l,
or the United States District Court for tbe Eastern District of CaJifofT'..ia.
JI.RTICLEX
NOTICES
10.1 Formal Notices Any notice, demand. information, report C}r ltem otb.er...'ise
required, aut."'oriZ-i:.d, or prOvided far in this Agreement shall be given in 'nnt'JIg,
except as prO'"Jided V..rrsu.ant to Section 10.2. and shall be deerr.ed properly give:1
if Ci) delivered pe=ally, (il) transmitted and received by telephone facsJniie
devke ar:d OJ<'..fumed '-y telephone, or (iii) sent by United States Mail postage
prepaid. to the persons specified below:
(1) To NCPA:
General Manager
Norrnt.".rn Califorr.ia Pewer Agency
180 Cif.)y Vlay
Roseville, Calif. 95678
(2) To Seattle:
Dir~-.or of Power Manac:ement, P-cr.r.-er Resources Brancr:
Seattle. City ught -.
1111 Third A ... -enue, Scite 420
Seattle. WA 98101
102 Routine Notices An notice'S of a routine c..1.uac:.er in connection witI. ~e ... ,ice
under this Agreement shall be given in sueh a manner as the Parties may ~ee
from time to time, unl~ other-Nise provided ~ t.Ilis Agreement
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Capacity and Ell<:l"",J'
E'l:cha ngt' ,.\grfe:ntnt
10.': .Q1.l'))geJ._Qf ~otice Recipier;t<: Ei:her P::trty may cha.ng::: the desig;::a~on or
addresc;. of the person who is to re':~Tve notic::::s on this ~ehalfc-'y gj-.ing the l't,'ler
Part::. notice thereofin t."1:Je ma.~ner provided m Section 10.1.
IN ~"ESS WllEREOf, i.h(, Pa.'"ties nave ca.1.L'>ed t.\is >"\i!I"e~rr-,:-m:o be exeC'J.wd b ... ,
t,1eir duly ,1uL1.o~..zed officers and their seal to be affi: .. e.d, as~of tbe day ai'1c year he~e:;.
written.
(Seal)
ATTEST:
By:
----~--~--------Comptroller
l"ORTHER.'i CALlr'OR;-"iA
PO-"VER AGE~c)'
By: ___ _
Gene~a1.\1a.'1ager
TIIE CDY OFSE;.TTI,E
ern UGHT DEPARTME""
By: __ ~_
SUFefJlre::ldent
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SEATfLE cn,' UGIIT
CAPACm' A~"1) ENERGY EX CK"""GE
THIRD P¥..ASE AGREEMR,\'T
This Agreement, dated as of ___ ~ _____ . 1992, by and arncng th,~ t\crthem
Callfomia Power Agency, a joint powers agency of the Stare of Californla (~CPA) and
the members of NCPA which bave toxecuted this Agreement <P:;;utcip~nr or
Pa.rridp&'tS), is entered into on the basis of the following.
Recitals:
A NCPA's Resource Plan shows t~at it would be economical for ~CPA a."ld ~ts
pa.."1icipating members to seasonaTIy e;t;change <:apacty .a..:1d energy with a ?acific
Northwest utility.
B. NCPA has therefore entered L'1to the Seatde City ugbv~CPA Capacity a..,d
Energy Exchange Agreemen~ dated _,1992 (Exchange Agreemen!)
unde~which it will exch2Ilge capacity and ene:gy v.ith Seattle Cit'j Light (SCL)
conditioned upon NCPA and SCL becornL.'1g interconr.ected through the Califomia
Oregon Transmission Project and the Third AC tr.msmission system.
c sa is a de:ra..""1ment of t..'1e City of $earJe,.'l Washi"lgton rrnmicipal C[),?Dra~an
thar operates a 'W'in:::e. pea.1ci..."1g electric utility system c.:~n::p:::sed prfma..· .. :fly of
hydroelectric generating plants together with some the.:;naL electric generJ.ting pla.."lts.
C. NCPA and the Participants wish to enter into this Agreement to provide alJ
means necessary for l..J"(''PA 'co fulfill obilgations mcu;-red ::m behalf of ~·CPA a.'1d the
Participants pursuant to the Exchange Agre.emenl
NOW THEREFORE, NCPA and the Participants hereby enter into this
Agreement
E.:t:ea.1!ion C.,unt~rpm
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Section L Ddinj~_0ns. The foUo .... .:tJlg ter.D5 shall, wh~n 'J:'led L!1 this
Agreement, have the fc.l.k)wlng meanLng'3:
1.1 "Associated Energy" meaJ'..s tl::~ i,;:ncrgy ass.:x-1ated v.,eitn the Firm
Cap:ic1ty made available by the deLiverLl1g pany pur:r.n.nt to t,;le Exchange Agr"!ement
12 ''Exchange Agreement" means. the agree~ent bet'Necn NCPA and
SCL iefeaed to in the seccr.d rectal hereL"1above.
13 "Firm Capacityti' means the capacity made available by the delivering
party to the rel.:eiving party PUf5uant to the E~ange Agreement.
1.4 "Participant" means an NCPA member whicb h~ ex~cljted this
Agn:ement and a Participant's successor in interest
15 "Participation P~n:entage" mean.s, with respect to ead:: Farr:cipant,
the percentage of the total capacity a..""ld associated energy of t.h.e Project!.o which such
Participant is entitled pursua.nt to the terms of this Agreement The Participation
Percentage for each Participant shall be the per'':'::''1tag,e set forth opposite t..I:J.-e. name of
such Participant in Appendix A hereto, as sucb Appendix A may be amended from
time to time L'1 ao:orda!lce "itt this Agreement.
1.6 "Project" means the exchange of .capacity a....rJ.d energy pursuant to the
, Exchange Agreement and any a.."'TIenciments thereto.
Section 2 ~. The purpose of this Agreement is: (i) to provide for the
delivery by NCP A and the acceptance by the ParticipantS of Loe Firm Capacity and
AssoOated Energy rec.::ived by NCPA from SCL under the Eu:hange Agreement. Oi)
to provide for the making available of Firm Capacity and Associated Energy by
Participants that i-; to be delivered by NCPA to Sa.. under the Excha.'1ge Agre-:rnent,.
(iii) to aut.'flonze NCPA a;j agent for the Fartic:ipar:ts to engage in activities related to
that basic purpose and (N) to specify the rights and obligations Dr NCPA and of the
Participants with respect to the Project
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3.1 NCPA .,.'ill make all reasonable efforts to ma..1..:.e <"..vailabloe. to each.
Participant a porticn of the total finn Capao!j" cmd .A....."SOciated Ene rgy pro\>ijed by
SCL to NCPA under the Exchange Agreement equal to L'le product of the
Partkipaticn Percentage of L1at Participant and the total Ffnn Capacity and
Associated Energy p:-ov:lded by SeL to NCPA l~nder the £.,.change Agreement. NC?A
~ill make ~uch Firm Capacity a.TJd Associated Ener~1', ie..."5 transroi5.5-ion losses, available
at a point on or adjacent to the electric sy~tem of the. Participa .. n.t, reasonably weI.}
adapted to the ability of such participant to utilize the power. Furthennore, SCPA will
make aD reasonable efforts to arrange for transmission of such powe r over the Jines of
othe~. and for additional .P'JWeT r~qtlli.-ed from others as reserves against plan • .,ed or
e.mergency service lnremlptioJ"1,s.
3.2 Each Participar.t v.ill make avaiJ.abJe to NCPA Fi.."1TI Capacity and
Associated Energy, as those tern::J5 are dennc:d in the &change A~ement. sufficier.t
to enable NCPA . ., after trar...smission los...--es.., to provide SCI.., at the Peillt of Deli'lery
specified in the achange Agreement, .... 'ith Finn Capacity and Associated Energy in
a.'"nounts equal to the pr:::xrJ.ct of th~ Participation Percentage of that ParticipL'1t and
the total Firm Capacity and .A..ssc.ciated Energy to be provided by NCP A to sa under
tbt: ExctIange Agreement. To the extent any Participant fairs to make available firm
Capacity a.'1d Associatec Ene'ID' to NCPA for Pwplses of fulfilling NCPA', otligatior.
to SCL under the Eu:hange,Agreement, NCP A shaiJ procure the necessary Fmu
Capacitj-and Associated Energy and bill s .. ;ch Particip.a::n to reCQver all cost.'>
attributable to such pr00...-urement.
33 Each Participant sball make available to NCPA ruch transmis-ion
capability on Lhe C01P as is necessary for NCPA to rr:~c:t (i) NCPA's cbligatior..5 to
sa under the Excha.nge Agreement. and (ii) NCPA'.:s obligation to the ParJcipants
under thls Agreemem:. To the e·:::creJlt <i!ly Participant fails to m.a.ke avaiIabie :rufficient
transmission. capability to NCPA for purposes of fulfilling NCF A's obligatior...s under
the Exchange Agreement., NCPA may procure the Deces3ary transmission capability
and will bill such Pa.."1icipam to recover ail costs attribl.l1able to such prex...-urernent
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E-.:ecution Counte1part
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Section 4. R~l~Jt..~ ~~CPA Act..i",'itic3. NCPA ;r;ay engage in G,t.1er .3.c::iviries
irJtl.!nded to ena.ble: the PGr,:,::;,ants to (U utllize the Fmn Capacity ar.d A...J50ciatec
E.'1er~: provided by SCL to ~CPA ~ effici-e!".Itly and e'-'onDmi~y as pos,~lblr a!l.d {il)
make aV3..l1ablt: to: Fi.."1TI Capacity and Asstxiuted Energy provided by ~CPA to SCL as
efficiently and economically as possibie. ~:CPA shaIl exera3e !.he a'..ltJlority g;a:Hed to
it by tJ>i~ section in accordarJce \l,'''jLi. the provisions af section 10 of this Agreement
Section 5. NCPA Proie.ct Exoense..s. The Participa..Tlt5 :--ccognize t,at ~"cPA ',,"-]1
incur certain expenses, including but not ~ted to charges for trarumis~ion ~r' ... "]ces, as
the t:-suit of administering this Agree.mem and tJi.e E'\:change Agreement, a.l1d Cl!"!"Y';J1g
out any related activities in which it maybe directed to engage pursuant to Section 4 of
this f\greernent. 111e Participants agree that !\"CPA ma.y budget a.'1d bi..!l [Dr such
expenses pursuant to Secticn f of this Agreement
Section 6. Budget and Billin.g2taternent~.
6.1 Prior w the beginning of each N"CPA fiscal year fcr which nc budget
has been adopted, the NCPA Ccmm:.i.s.sion wi)1 adopt a budget for sudl fisca.l year or
years for costs and expenseS relating to the Proje-ct The NCPA C:lr"l.m..ission may
adopt budgets for more t.,1jan one fiscal year. The b"...ldge~ shan include tI,e fono~ing
two categories of costs and expenses: (a) the cltargo:s that r-.;CPA estimates that it ~ilJ
incur to de.llver Finn Capacity and Associated Energy to S~ and {b) a..'1 or..~er CO:sts
ail.d expenses rea.q]nably reiated to the Pmjl!cl NCPA shai! promptly give netic: to
I!ach P::w.-::icipanr of its tJr-:'"jected sbare cf such ca.tegDrje..s of C·Sb.lJlC eXpe:15CS
6.2 Monthly bllli,"ig statements prepared by ~-CPA shaL be .se:H to eJ.<:~
Participant iliewing the Participant's share of costs and other (!large! payabie pU-SU3!lt
to this Agreement for each billing period. Such stalerne.r:ts shail separarely s'![ ~'orth
any credlt or debit adjustments.
63 Amounts shown on each bi..lli..'1g statement are due: a..'l.d p<.l~·ahie ~:--..ir.:"
(30) days a..ft"er the date of the billing statement except that a.1Y amount jue O:J -1
Friday, holiday or weekend may be paid on the closest f~ilow1.ig workday.
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6.4 . .<\!Jy a.'1JGIL'l:::; due and not p-aid by a Partic;pilTIt shall bear inteit:st
from the due date unru paic at t.'1e ann~ rJt<: e..<;tablish:!d by the Commis.'Jion cf
NCPA at the time of ""dopncn of L"::e then must recent budget If a Participailt
questi0ns or disputes the corre.cmes5 of any bi]i1!1g st3.rernen! by ~CPA it shall pal
~CP A t.l-:le a.mC!1n~ d.limed '~'hen du~ arid shall w1"t.1iI1 thirty (30) dcys of the rece:pt of
such 'cilli'1g statement :eq\!c~t an explanatlon from NCP A If the bill is detenn!...'1ed to
be incorrect,. ~CPA ",-ill i~Je a correc:ed bill and refund ai1)' amoun! which may be due
the Particir.ant -~'h.ich refund shall bea.r in::erest ITer.) the date NCPA re.:ei'o.-ed pa_yment
lli'1tU tlle date of the re.f...L.nd at .a.-:. annual rate to be estabIisbed by the Commission of
~...rG?A at the time of adoption of ~e then roost recent annual budget If NCPA al'1d
the Participant fail to agree on the cometne" of a bill within thirty (30) days after the
Participant has req'.l~H .. :i an explaniltion., :."e patties shail promptly submit r..1e dispute
to arbitration under section 1:1..'0 (( seq. of the C:tlifomia Code :)f (!vi] Procedur-:.
Section i_ ObugatioTIs in ~t.e EVC"nt of Default_
7.1 Opon failure of any Pal'''tlc.ipam to make any payment in fuB. when
due under thls Agreement, NCPA sball make "",'litten demand upon such Participant,
and if payment is nct mad.::. within 30 days from the date of S'.xl:: demand., t.~e failure ,0
make payment shail constitute a defauLt.
72 Up:)D the default of any Participant, NCPA (a) may terminate the
provisions of tl:JU; Agreement -tn.s.ofar as th.e i\greemen! entitles !he deiauiting:
Pa.."'tic:ipant to its P3Iticpation F'e:-centage of Project capacity a..id energy, and (0) sha11
u..~ its b~ effor-.s to sell and l:r<i.l1Sfer for the Pa.n::icip':""'1t's ac:::cunt all or a portion cf
rhe Participant's Participation Percentage of Project capacity and energy_ W'heC! mak:iI::;g
rue" scie.s a."d transfers, NCPA shall allow all Participant,; md then other NCP A
member enr::ities the same rights of first refusal that are: pn:wided for in section 8 of this
Agreement Notwithstanding such sale, transfer or tennination. the obligations of t.J.i.e
defaulting Participant under thi5 Agreement iliall'continue in fu.D fCJ~ and effect
e:~:c.e,pt that such obllgations shall be discharg-~d tc the euent that ~-CP A receives
payment from a purc:ha.<;er or transferee cf the defaulting Parudpa."'1rs Pa.."ticipation
Percentage in Project capacity a...,d energy_
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7.3 Upal' the de,faur~ Jf any Participant,. a . .'ld e.'{cept 3.S tr.1n~fe~ are
made pursuant [0 section 8, (i) the ParticiJlatlon Per~ent2.ge of ~ach nondefawting
ParticipaJlt shall be autoroatir.ally incre~d for the rerr:<llning term of this Agreement
pro rata with t.t"·10~ of the C!ilier ncndehuInrtg Ta."1'icipar:ts, aIle (ii) :be det";;rwri.rlg
Pa.rtic..ipant's P:utic:iparkm Pe:cemage l.-:, tr.e au· ?Ui Df the Project capacity ar.d energy
shall (but only for purposes of computing ti1e re' f~~cLve Partici;;ation Percenw.ges of
L'le nondefaulting Pa.~cipants) be reduced corresp0ilJingly_ The fact that ()Ult::
Participants have in<.rea.sec their obi5gations to ~CPA accordillg to t'fJis section shall
l}ot relieve the defaulting P<irticipa.j"1~ of its liability :.lnder :h.is Agreement, and any
Pa.'1icipant incre3!3ing its cbligation sbalJ have a rJg-1t cf recave;y from the defaulting
Participant to the extent of its increase In oblig.ation.
Section 8. Trar.sfers of R.igh~ b",' Par::idIJa.'l~
8.1 A Participa.!'H bas the right to n:aJ:e rra"'l.sf~ ... 'S, sales, assignments
and e~changes (collectively "transfer(s)") of P70ject capacity, energy and rig.."1::s ther~tc.
If a Participant desires to ~i'er a portion or its entire share cf t..f.:l.e Project for a
specific: Sne intervaJ, or perma. .. ·lently, ~CPA Wlll, If requCEted by such PanicipMt, use
its be~t efforts to tr.:... ... ..sfer that portio::; c{ the Participant'S shllle of :he Project
8.2 Before NCPA ~ay transfe .. an excess Project share punuant to
section 8.1 to any person or entity ot.'fJ.er tha..".2. Pa.'"1ic:ipant it shall give all Pa..-rll.-lp.a..r.T.s
the right to purdIase the share OD the 5a.rne terms and canCjticns. Before ~'CPA may
tr"'d11..')fe;T" an e.'tcess Proj~.ct share ?UTS'J3J1t to section 8.1 to a..'y person or entry ~;th~=
tba."l an NCPA member, it ::.hail give an~cpA members tce right to purchase t.he
share on the same terms and conditions. Such right shail be e~rc.sed within thL.-ry (30)
days of receipt of notice of saJd right
83 No transfer ,,;all relieve a Participant of any of its obligations
under this Agreement e:-r;cept to the extent that NtF A receives payment of these
ubligations from a transferee.
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tlecurion Counterpart
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Section 9. Wi!:.hdrq",,:~_J;ty ___ p_:a,..9cipants, No Participan: .'1::ay ",,:ithdraw from this
Agreement H;Jwe';er, NCPA v.rili t,L.'>e its best et"orc5 to assist an)' Pa.:i1:lcipant t~la.t
v.';ehes to transfer aU cr any portion af its right~ pu.rsuant to section 8 above
10,1 Commission Meetino;;. Actions of tbe NCPA Commission reiati..ilg
to this Agrt;ement or tc the ProJect shall be taken at reg\:.Iar or special mee&.gs of the
NCP A Commisslon b\;.t shal] be participated in only by those Commissioners, or their
d~-5gnated alter.lates, who represent Partici~ants.
102 QliQmXQ.. A quorum at NCPA Corn.mission meer'.ngs for purposes
of acting upon matters reJating to this Agreement or to the P~oject .shall consist of
Commissioners, or their designated Alternates, representing at least rwo Participants
having a combined majority in interest based on Pa.rticipation Percen!3.gcs.
103 Voting. Voting by representatives of Pa.--ticipilDts on matters
relating to this Agreement or to the Project ~han be on a one ruemherfone ,,'ote basis,
v-r.ith a majority vote required for action; however, upon request of any Participa.'1t
represenUtive, Li.e voting on an issue shall b.: by Participation P~rcenrag:e ',1,1L1 a 65%
or more favorable vote necessa....J" to cany the action. The 65o/a-required by the
pr~eding sentence shall be reduced by the amount that the Participation Percentage
of any Participant excee-ds 35%, but shaD not be re~d below a majority in interest.
10.4. Rc·...;ew ofVoti.ng. Any decision related to tr.is Agreemenl cr t·~
the Project taken by toe affirmative vote of Participants holding: Pa...~cipation
Percentages of iess tha.c 65% can be reviewec and revised If a Participant gi .... -es notie::
of intention to seek such review and revision to each of 'J1e other PJrticipants within
ten days after r"..ceiving written notice of such action. If S",Jch notice of intention to seek
review is given,. any action taken specifie d iI1 Li.e notice shall be nullified l.mless the
authorized representatives of Pa..-rticipar::.ts holding at least 65% of the total
Participation Percentages vcte 1n favor thereof at a regular or special]y caned meetiIlg
of the NCP A Commission. The 65% required by the preceding senrence shall be
E.tecution CoWltcrpart
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recr..lcf.d by the amount that the Farcoparion Perc~r;tJ.ge of any Pa.rtic:ipant exc.eea.<,
35%, but shaJl nm be reduced bela'",,' a :najcrity in inr{":-~s:.
Secjo:r:;; 11. VCtjr.'&'PD Terrninaricr: of tbe Exc::3.l'we Air[t.err.e.QI. Sec:l')TI 2.2.1
of t."J.~ E~hange Agreement provides u-J2.t th~ Ap-e'::'went sha!1 cor.jr:ue to be in .,:ti'ect
untIl notice of termination is provid::d at Iea.<;t seve:i1 ye3.I.5 in adva..'Ke of ~e!llliTI2.tion,
provlded tha~ te'TIlination s..l,an not occur prior tc M:;;.y 31, 2014. Ac-cordingiy. on (lr
before Ai'rii 30 of each year beginning i:J 2007, the representative cf any Par~:icipa.'1t
may request a vote. of the Commission as to whether J. ::l(Jtice t(i rerrninate tl-te
Exc..l:J.ange .Agreement s...~all b~ i'>.rued before May 31 of that yell. A m~tice. ':0 :-erminate
shall not ~ ls.5'l"J~d unjes; a request for a vote en t-er;rj~ja!':on is made by a PaIti~par::t,.
Notwitbstandin.g any other provision of jUs Agree:nent, such a i10nee shall be lsSti.ed if
the representati .. -es of tile Pa.."'ticipants-fail to undnlroo123ly 'fote not to issue the r,otice
of terminaticn, unless on or before ~·:t:ay 31 .:;f that yeJI '-'1e rights of all Participants
who have voted:o issue the notic-! of termination a:-~ tr'.::_!lsferred, pUI'Su.aIlt to 5ecr:io~ 8
ofthisAgreement, to entiti~ that have agreed to 3...."51.::::.:.': the c'Qligations-of those
Parricipar.1s.
Section 12. Ie:m and Termination. This Ag-re:ment shill not :a.'..:.e eff~ct until
it has been e;tel.""Uted :)J.d deli-,.-ered to :\"CPA by Pa.rticipa.·r~. whose Pa.'"ticipanan
Percentage:;, in the a.&zregate, sbali equal at least 80 pe:-c:nt Tne NCPA :L..e:ubers
listed on Appencfu: A shaIl haye 45 days following '.vrlt:en notice of the effective date to
exeo.:ite and deliver counterparts of th.is A.greeme.nt !:o )1"CPA If any NCPA member
listed on Appendix ,.1. fail.li to exerute and deliver th.;s Agre.err.enr 'JIoithin STlCft 45 ciays,
TJ..'1.less otJ.'J.er",1se provided by L'f:te Part:idpants. the Pa::-,.:-ipatin.g Pe:-ee:trJ-~e$ cf met
T:J.ernber or members shall be spread among the F2.rti c::a:..ts in proporLi0Q to tbei:
Pa!-rid.paticn Percentages. The torr.:! of this Agre:eme:J: :i-h.3..ll continue lli1t:.i1 the
expiration of t.;"e Exchange Agreement. This Agree:n::e" t shall not be s~ject to
te:mination prior to the expiration of its term by a.'1Y pa.r.y c.nder any ci.IC1':'iDstances.,
whether ba....<:ed upon the default of any other party unde: t.,l;.is Agreement or oL1er'.vlse,
extept as specificaIIy provided herein.
Section 13_ Member Service Agreement. Tbis Agreement is a service scbedule
and a third pbase agreement and shaTI ~e deemed incJrpora.ted lIltO the :\-:t:ernber
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Sen-ice Ag:r~emen:: that each ParticipaIlt has exect.!tec! or s!;cce~or agreemer..t to the
Member Ser'wice Agreement TIlls Agreement sha.li be construed CiS ccmtirJting the
more :ipecifh: 'term.'> govtITli{lg the gerleral relationsr.jp bCt'\N'ce,l. tho::: parties set out in
t.1-]at Member Servke Agreement.
Section 14. Several Ohligatkm. No Partidp!lnt shall be liable undei tltis
Agreement for t,."e obiigatic!ls of any othei Participant, excep[ as provided in section i
of this Agreeme,nt Ea.ch Pa..rticipanr :shaD be solely responsible and liable for
performance of its obligations ':..t.'1der this Agt::emen! a:ld for the rnain!ena."lce a.1.d
op~ration of its respect!ve properties. The obligation cf ea.cb PiU1icipant to make
pa}1TIen~ under this ft_greement is a severa! obligatiGn and not ajoL'"lt obligation 'Nitt
those of the other Participmts, except as provided in <;ect:on 7 of this Agreement.
Section 15 ... \mendment..s. This Agreement n:ay be amended only by a -w-nnen
irut.'1lI'Dent execute'.d by NCPA and th~ Pa.rtidpants ar their successors with t.f'Je 5a.'TIe
formality as this Agreement.
Section 16. Severab;£t'l. In the event that an} of t.~e !erms, covenants or
conditions of t..1:is Ag:reemen:: shall be held invalid, :-;CPA a."'1d the Participants intend
that alI cuu::r teTlIls, C')\."CDant3 and conditions and weir application shall not be
affected therebYl but shail remain m for~ and effect u.."lless a court bolds ma! such
provisions are not severable from all otter prov!slum Df this Agreement
Section 17. YoverJ'lj,ng Law. This Agreement shall be interpreted, governed by
a.'10 construed under the laws of u1e Stare of Califam.ia.
Section 18. Ccuntemam. This Agreement may be e..~cu.ted ~'1 several
counterparts, aLi or any of which shan be regarded for an purposes as one origlnaJ and
shall constitute an d be bm one and the same lnstruillem.
Section 19. HeadiIHl's. Tne beadings to the sections £n this Agreement are
imended for convenience orJy and not for the purpose of interpreting the provisions of
this Agreement
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E'.xeoJtion Coume:rJlan
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Sectior.10. NOIJ·ce~. Any notice, demand or r:::quest requi!'ed or a'JthO~li,,:ed by
this Agreemerlt h! be given to any Participant or to NCP"; shall be given in 'Wl"itrIlg a."'1d
shall either be personally delivered to tEle Participant or tra.n$mitted to the Participa."1t
by regular mail at the.address designated by the p<:! ..... ticpant. The des:gnation Df such
address may be changed at 3J1Y time by written notice.
Section 21. No 'Va..i ... r-~rs. No waiver of performance under t.'lis Agreement stall
b~ effective UI'.Iess g:r:en by tie CommissioD .. Any S"..Jch war,rer by tbe Com..-niss.ion .in
any p.mic.JJar ir.stance shall not be deemed a waiver with respect to any sub~eq~nt
performance ..
Section 22. Warranty of Aut,qr::it'l. Each Participant which has e:r.ecuted and
deli:vered this Agreement represents and wa.-rants that it has agreed to be bou..T'Jd by a.IJ
af the tenns, covenants a..TJ.d condinof:.s of this As"Teement and has acted with all of the
requisite capacity and d.uthon"ty and Ll}e approval of its gc-veming body_
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L'1 ~itne.."S whereof, each Participant has, by the 5~gnaru(1! of its duly auth0r1.Z~d
representatives sho .... ll below, executed and delivc!'ed a CCUi'1te:par-:: Dr tr.is Agrl!emen~.
NORTHERN CALlFORXL>.
POV,'ER AGENC'Y
By: ________ _
Dare' ______________ _
CITYOFLODI
An~. __________ _
By:-------
Date:
CITY OF ROSEV1LLE
Attest' ______ -' __ _
Br __ _
D.te: ___________ _
11
CITY OF HEALDSBURG
Att"" ___________ _
Ey: ______________ _
Date: __________ _
ClTY OF PALO ALTO
Anest:
By:. ________________ _
Date:
CITY OF UKIAH
Artest ____________ _
By: ______ _
Date: _________ _
Execution CoW1tcrpart
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ME.,>1BER
Healdsburg
Lcdi
Palo Alto
Roseville
l~,Qah
Total
APPE:-':DLX A
NCPNSCL CAPACITY AND f,'iERGY EXCHA."GE
THIRD PH.~ . .'iE AGRER>IE.\T
PARTICU'ATIOl' PERCE'-'AGES A;'·Hl MEG~WAITS
PERCE.'" Y[EGAWAnS
2J56i 1.6
4 J .6<51 25.0
IB.333 11.0
33333 10.0
4.0(JO 2.4
lOO.(X)() 60.0