Resolution 10155CITY OF ALAMEDA RESOLUTION NO. 10155
AUTHORIZING EXECUTION OF AMENDATORY AGREEMENT WITH THE UNITED STATES
OF AMERICA, DEPARTMENT OF ENERGY, WESTERN AREA POWER ADMINISTRATION,
TO INCREASE THE BUREAU OF ELECTRICITY'S POWER ALLOCATION
BE IT RESOLVED by the City Council of the City of Alameda, California,
that the President cf the Public Utilities Board and the General Manager/Chief
Engineer of the Bureau of Electricity be and they are hereby authorized to
execute for and on behalf of the City of Alameda, California, the attached
Contract for Electric Service with the UNITED STATES OF AMERICA, which Contract
was duly presented to the City Council, and which Contract is hereby approved.
STATE OF CALIFORNIA )
County of Alameda
Date:
(SEAL)
SS
Deen Speegle
, the duly appointed
and qualified clerk of the City of Alameda, do hereby certify
that the foregoing is a true, accurate and complete copy of a
resolution duly passed and adopted at a regular meeting of the
City Council of the City of Alameda, California, held on September 20,
1983.
SEP 2 1983
By
Title
I, the undersigned, hereby certify that the foregoing resolution was
duly and regularly adopted and passed by the Council of the City of
Alameda in regular meeting assembled on the 20th of September, 1983, by
the following vote to wit:
AYES: Councilmembers Hanna, Lucas, Monsef and President Diament - 4.
NOES: None.
ABSENT: Councilmember Gorman - 1.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 21st day of September, 1983.
City lerk ot City,. am
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Project
AMENDATORY AGREEMENT WITH THE CITY OF ALAMEDA
(Electric Service Arrangement for
Cogeneration and Renexable Resource Projects - NCPA 2)
Amendment No. 1 to
Con act No. DE-MS65-82WP-59013
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Project
AMENDATORY AGREEMENT WITH THE CITY OF ALAMEDA
(Electric Service Arrangement for
Cogeneration and Renewable Resource
Projects - NCPA 2)
Article. Title Page
1 Preamble 1
2-8 Explanatory Recitals 1-3
9 Term of Agreement 3-4
10 Definition and Explanation
of Terms 4-6
11 Renewable Resource Allocation 6-7
12 Energy Deliveries by the City 7-11
13 Energy Scheduling Procedures 11-12
14 Energy Accounting 12-14
15 Payment 14-15
16 Other Agreements 15
Signature Clause
Resolution
Amendment No: 1 to
Con‘ract No. DE- MS65 -82WP -59013
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
Central Valley Project
AMENDATORY AGREEMENT WITH THE CITY OF ALAMEDA
(Electric Service Arrangement for
Cogeneration and Renewable Resource Projects -NCPA 2)
1. THIS AMENDATORY AGREEMENT, made this day of
, 1983, in pursuance of the Act of Congress approved June
17, 1902 (32 Stat. 388), the Act of Congress approved August 26, 1937
(50 Stat. 844, 850), the Act of Congress approved August 4, 1939 (53
Stat. 1187), the Act of Congress approved August 12, 1955, (69 Stat.
719), the Act of Congress approved October 23, 1962, (76 Stat. 1173,
1191), and the Act of Congress approved August 4, 1977 (91 Stat. 565),
and acts amendatory thereof or supplementary thereto, between the UNITED
STATES OF AMERICA, Department of Energy, Western Area Power
Administration (the United States) acting by and through the officer
executing this contract, a duly appointed successor or a duly authorized
representative, and the CITY OF ALAMEDA (City or Contractor), a
municipal corporation organized and existing under the laws of the State
of California,
WITNESSETH,
2. WHEREAS, the United States operates an electric power system
including generation and transmission facilities to serve preference
customers of the Central Valley Project (CVP); and
3. WHEREAS, the City operates an electric utility system,
including transmission and generation, and is a preference customer of
the United States under the provisions of Contract No. DE -MS65 -82WP-
59013, effective March 1, 1982, which as such agreement may be amended
or replaced shall hereinafter be called the Original Agreement; and
4. WHEREAS, the United States has entered into Contract No. 14-
06- 200- 2948A, dated July 31, 1967, as amended, supplemented or
superseded, with Pacific Gas and Electric Company, (PGandE), which
provides for, among other things, a right of the UnitedStates to use
PGandE's transmission system for the transmission of power and energy
from the CVP to preference customers of the CVP, including the City; and
5. WHEREAS, in settlement of the lawsuit entitled The City of
Santa Clara vs. Duncan et. al., the United States and other parties to
the lawsuit entered into a memorandum of understanding dated February 8,
1980, hereinafter called the Santa Clara Settlement, which provides for
PGandE to support an increase of 102 MW in the customer load level of
th e,CVP, enabling the United States to market additional power and
energy to CVP preference customers; and
6. WHEREAS, the United States declared its intent in its 1981 CVP
Final Power Marketing Plan to support renewable resources and
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cogeneration projects through the marketing of 30 MW of its increased
CVP customer load level to preference entities which are willing to make
available to the United States electric energy; and
7. WHEREAS, the City is a member of the Northern California Power
Agency (NCPA), a joint powers agency of the State of California, and has
an entitlement to 14.994 percent of the output of the NCPA Geothermal
Project No. 2 which will have an installed capacity of 110 MW; and
8. WHEREAS, the United States is willing to allocate 5.5 MW of
its increased CVP customer load level and associated energy to the City
in exchange for an equivalent amount of energy from-the Powerplant or
from other sources available to the City;
NOW, THEREFORE, the parties hereto mutually agree as follows:
TERM OF AGREEMENT
9. a) This Amendatory Agreement shall be effective on the date
of execution, and shall terminate at 2400 hours on June 30, 1994.
b) In addition to termination provisions specified in the
Original Agreement, this Amendatory Agreement may be terminated at the
end of any Contract Year by the City on one year notice of termination
to the United States.
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c) Upon termination of this Amendatory Agreement, benefits
conferred upon the parties and obligations incurred hereunder shall be
preserved until satisfied.
DEFINITION AND EXPLANATION OF TERMS
10. a) "Contract Rate of Delivery" means the City's maximum rate
of delivery of firm electric energy from the CVP pursuant to the
Original Agreement and the PGandE Contract.
b) "Contract Year" means the period beginning on January 1
and ending on the following December 31; the first Contract Year shall •
begin at 0000 hour on the first day of the first month following
execution of this Amendatory Agreement and the last Contract-Year shall
end at 2400 hours on June 30, 1994.
c) "Energy Deficit Account" means the energy account kept by
the United States to record the amount of energy owed by the City to the
United States under article 14 herein.
d) "Energy Surplus Account" means the energy account kept by
the United States to record the amount of energy owed by the United
States to the City under article 14 herein.
(e) "Interconnection Agreement" means the agreement between
NCPA and PGandE, as such agreement may hereinafter be amended, supple-
mented or superseded, providing for the interconnection and transmission
of resources owned by the City.
f) "Off -Peak Hours" means those hours between 10:00 p.m. and
7:00 a.m., Monday through Saturday, those hours between 10:00 p.m. on
Saturday and 7:00 a.m. on Monday, and those hours between 7:00 a.m. and
10:00 p.m. on holidays.
g) "PGandE Contract" means Contract No. 14 -06- 200 -2948A
dated July 31, 1967 between the United States and PGandE, as such
Contract may hereinafter be amended, supplemented or superseded, pro-
viding for, among other things, a right of the United States to use
PGandE's transmission system for the transmission of power and energy
from.the CVP to preference- customers of the CVP, including the City.
h) "Point of Receipt" means the point at PGandE's Fulton or
Lakeville Substation near the Powerplant where energy is delivered by
the City to PGandE for service to CVP loads, or such other locations as
may be agreed to by the United States and the City.
i) "Power Bill" means the statement of charges issued to
meet the obligations of the United States and the City under the
Original Agreement.
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j) "Powerplant" means the NCPA Geothermal Project Number 2
of which the City has an entitlement to 14.994 percent of the output and
which will have an installed capacity of 110 MW.
k) "Powerplant Capability" means the City's share of the
average amount of power available from the Powerplant over any Contract
Year under Powerplant conditions existing during such Contract Year.
1) "Projected Powerplant Capability" means the Powerplant
Capability from the City's ownership share of the Powerplant projected
to be available during a Contract Year determined by the City in
accordance with generally accepted utility practice two months in
advance of each Contract ,Year.
m) "Renewable Resource Allocation" means the 5.5 MW portion
of the City's Contract Rate of Delivery made available to the City by
the United States pursuant to article 11 hereunder, and energy
associated with such portion.
RENEWABLE RESOURCE ALLOCATION
11. a) Effective at 0000 hour on the first day of the first
month following execution of this Amendatory Agreement, the City's
Contract Rate of Delivery shall be increased by 5.5 MW. Such portion of
the City's Contract Rate of Delivery shall hereinafter be referred to as
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the City's Renewable Resource Allocation. Upon the effective date of
Amendment No. 2 to the Original Agreement, relating to the City's
Municipal Waste Combustion Powerplant, rights and obligations of the
parties herein with respect to 4.0 MW of the Renewable Resource
Allocation shall terminate, except for obligations incurred and benefits
conferred prior to such termination.
b) All rights and obligations of the City and the United
States with respect to the City's Renewable Resource Allocation shall be
consistent with the Original Agreement and the PGandE Contract.
ENERGY DELIVERIES BY THE CITY
12. ,a) The City shall be obligated to sell to the United States,
in exchange for the Renewable Resource Allocation, an amount of energy
equal to the amount of energy associated with the Renewable Resource
Allocation, subject to the provisions described below.
b) Each Contract Year the City shall use its best efforts to
deliver or arrange to have delivered to the United States at the Point
of Receipt an amount of energy equal to the amount of energy associated
with its Renewable Resource Allocation for such Contract Year. The
United States shall use its best efforts to schedule energy supplied
from other sources in a manner which enables it to accept energy
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delivered by the City hereunder.
c) At any time other than Off -Peak Hours from April 15 to
June 30, the obligation of the City to deliver energy to the United
States pursuant to subarticle (a) above shall, at the option of the
City, be reduced to the extent the United.States refuses delivery of
such energy due to:
(i) Curtailments by PGandE of CVP power generation or
purchases for low load conditions in the PGandE service area;
(ii) Purchases of energy by the United States in amounts,
which are in excess of that which the United States is able to use
in its project or customer loads or store in accounts with PGandE
or others;
(iii) Uncontrollable forces, as described in article E of
the General Power Contract Provisions, attached to the Original
Agreement, on the system of the United States or PGandE when and to
the extent such uncontrollable force continues for a period of over
30 days;
(iv) For any other reason causing curtailment by the
United States of energy scheduled by the City hereunder if
preschedules of such energy were submitted by the City on or after
8
the previous workday and were accepted by the United States; -or
(v) For any other condition causing curtailment of
energy deliveries hereunder by the United States, when and only to
the extent such condition continues for a period of over 30 days.
d) The rate of delivery for energy delivered by the City to
the United States hereunder shall be determined by the City and
designated in preschedules submitted - by the City; provided, however;
reductions in the City's obligation for those conditions described in
subarticle (c) above shall be limited to energy scheduled up to, but not
greater than,twice the Renewable Resource Allocation.
e) The obligation of the. City to deliver energy to the
United States hereunder may be reduced at any time upon agreement
between the parties.
f) During Contract Years when the City is unable to deliver
to the United States the amount of energy specified in subarticle (a)
above, as reduced pursuant to this article, and such inability is
partially or wholly attributable to an unanticipated failure of the
Powerplant Capability for the Contract Year to meet the Projected Power -
plant Capability for such Contract Year, the deficit in the City's
obligation due to such failure shall be entered into the Energy Deficit
Account pursuant to subarticle (h) below and article 14.
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g) To the extent the City is unable to deliver or have
delivered to the United States the amount of energy specified in
subarticle (a) above, as reduced pursuant to this article, without
affecting its capacity credit for the Powerplant under the
Interconnection Agreement, the deficit in the City's obligation shall be
entered into the Energy Deficit Account pursuant to subarticle (h) below
and article 14.
h) To the extent the City is unable to deliver or have
delivered to the United States the amount of energy specified in sub -
article (a) above as reduced pursuant to this article, the deficit in
the City's obligation due to such inability shall be entered into the
Energy Deficit Account pursuant to Article 14.
i) (i) Unless otherwise agreed, at the end of a Contract.
Year in which the City has failed to satisfy
substantially all of its energy obligation described in
subarticle (a) above as reduced. pursuant to this article,
and less the balance in the Energy Surplus Account, and
such failure is not attributable to conditions described
in subarticles (f) and (g) above or forces beyond the
City's control, the United States may reduce or revoke
the City's Renewable Resource Allocation upon one year's
notice.
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(ii) Upon such notice, the City shall have one year in
which to make up its energy obligation under arrangements
acceptable to the United States and upon satisfaction of
such obligation within one year, shall be entitled to
retain its Renewable Resource Allocation under the terms
hereof.
ENERGY SCHEDULING PROCEDURES
13. All deliveries of energy by the City to the United States
hereunder shall be in accordance with procedures agreed upon between the
City and the United States and attached hereto. Such procedures shall
be developed for the period prior to the development of independent NCPA
dispatching ability and for the period subsequent to the development of
such ability, and shall include the following:
a) Written notice by the City to the United States two
months in. advance of each Contract Year except for the first Contract
Year, indicating the amount of energy which the City expects to make
available to the United States during such Contract Year on a monthly
basis and the Projected Powerplant Capability for each month of such
year; and
b) Prescheduling by the City in advance of each month of
hourly or half - hourly amounts of energy for such month; and
11
c) Procedures for adjustment of daily and hourly or half -
hourly schedules.
ENERGY ACCOUNTING
14. a) During any Contract Year, the amounts of energy which the
City is unable to deliver to the United States, as provided in
subarticles 12(f), 12(g), and 12(h), shall be entered into an Energy
Deficit Account. If, during any Contract Year, the City is able to
deliver to the United States an amount of energy in excess of the amount
associated with its Renewable Resource Allocation for the Contract Year
the United States shall enter the excess in an Energy Surplus Account,
provided that the United;States shall not be obligated to accept such
energy to the extent the City's obligation to deliver energy to the
United States pursuant to article 12 has been met for the Contract Year.
b) The amount remaining in the Energy Deficit Account or
Energy Surplus Account at the end of the Contract Year if not settled
pursuant to this article shall be carried over to be netted against the
amount remaining in the next year's Energy Surplus Account or Energy
Deficit Account, respectively.
c) The City may reduce the balance in the Energy Deficit
Account by delivering energy to the United States at any time agreed
upon. Energy delivered to reduce the Energy Deficit Account shall be
12
delivered pursuant to the provisions contained in articles 13 and-14.
d) The City shall use. its best efforts to settle each year's
Energy Deficit Account as soon as practicable, but shall have one
Contract Year in which to settle such account without interest. If the
City is unable to settle the Energy Deficit Account within one year of
the last day of the Contract Year in which the deficit was incurred, the
amount remaining in the Energy Deficit Account shall accrue interest in
additional energy at 5 percent per annum, which amount shall be included
as part of the total Energy Deficit Account to be netted in subsequent
years.
e) The United States may settle the Energy Surplus Account
by reducing the amount of energy which the City is obligated to deliver
hereunder at times and in amounts necessary to balance the account.
f) The parties shall use their best efforts to bring the
energy account balances to zero prior to termination of this Amendatory
Agreement. If there is a balance in the Energy Deficit Account upon
termination of this agreement, the City shall deliver energy in an
amount sufficient to balance the account within one year, unless
otherwise agreed by the parties.
g) If either party fails to satisfy its respective
obligations within one year after termination of this Amendatory Agree -
13
ment, it shall pay an amount in dollars determined as the amount of
energy owed times the payment described under subarticle 15(a). Such
payment shall include a 10 percent per annum interest penalty, unless
otherwise agreed, for each 30 day period in which such obligation is not
fulfilled.
PAYMENT
15. a) For energy delivered to the United States.at the Point of
Receipt to satisfy the City's obligation hereunder, the United States
shall pay the City at a rate commencing at $.035 /kWh. Such rate shall
be increased at the beginning of each Contract Year by the percentage of
increases in operation and maintenance costs and geothermal steam costs
associated with the Powerplant which take effect during the previous
Contract Year up to $.051 kWh. If such rate, the CVP composite rate
for capacity and energy, and the rate for energy from the United States'
Bank Account No.2 with PGandE exceed $.05 /kWh then the rate shall be
same as the lesser of the CVP composite rate +5.005 /kWh or the rate for
energy from Bank Account No. 2.
b) The City shall provide to the United States a monthly
statement of charges for energy delivered during the preceding month.
c) The United States may credit monthly amounts due the City
for energy made available hereunder against the Power Bill for such
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month. In the event the amount due by the City under the Power Bill is
less than the amount owed by the United States under this Amendatory
Agreement, the United States shall pay the difference to the City as
soon as the necessary vouchers can be prepared, ordinarily by the last
day of the month following the month in which the statement of charges
was delivered to the United States.
d) The City shall pay the United States for its Renewable
Resource Allocation at established CVP rates for firm power and energy.
OTHER AGREEMENTS
16. a) Where conflicts exist between any of the terms of this
Amendatory Agreement with the terms of the PGandE Contract, the terms of
the PGandE Contract shall control. This provision shall not constitute
a waiver of claims which the City might otherwise have against the
United States or PGandE, and which do not affect interpretation of the
terms of this Agreement.
b) This Amendatory Agreement shall be in addition to and
shall supplement the Original Agreement. Termination of this Amendatory
Agreement or breach of any of the terms of. this Amendatory Agreement
shall not constitute termination of the Original Agreement or breach of
any of the terms of the Original Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this agreement.
UNITED STATES OF AMERICA
Department of Energy
By
Title
Address Western Area Power Administration
2800 Cottage Way
Sacramento, CA 95825
CITY OF ALAMEDA, CALIFORNIA
By
Title
Attest Address
Title
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Contract No. DE- MS65- 82WP59013
EXHIBIT 8
(CONTRACT RATE OF DELIVERY)
1. This revised Exhibit B, made this day of
19 , to be effective under and as a part of Contract No. DE- MS65- 82'WP59013,
dammed February 24, 1982, (hereinafter called the Contract), shall become
effective on the first day of , 19 , and shall remain in
effect until superseded by another Exhibit B; Provided, That this Exhibit 8 or
any superseding Exhibit B shall be terminated by the termination of the
Contract.
Contract Rate of Delivery (CRD)
2. (a) On and after the effective date of this Exhibit 8 the CRD for
firm power shall be 11,157 kilowatts of Westlands Withdrawable power and 4,776
kilowatts of the 26 megawatts of firm power and 5,500 kilowatts pursuant to
Amendment No. 1, to this agreement which provides for the City's renewable
resource allocation, for a total CRD of 21,433 kilowatts.
(b) The City's renewable resource allocation will be terminated on
the date of termination of Amendment No. 1.
3. The original allocation referred to in Article 10(c) of this
contract shall be 10,182 kilowatts of Westlands Withdrawable power and 5,818
kilowatts of the 26 megawatts of firm power for a, total of 16,000 kilowatts.
THE UNITED STATES OF AMERICA
By
Title Area Manager
Address Western Area Power Administration
2800 Cottage Way
Sacramento, CA 95825
CITY OF ALAMEDA
By
Title
President, Public Utilities Board
Address City of Alameda
2000 Grand Street
Alameda, CA 94501