EXHIBIT 10.31
STANDARD OFFER CONTRACT FOR THE PURCHASE OF
FIRM ENERGY AND CAPACITY FROM A QUALIFYING FACILITY
THIS AGREEMENT is made and entered into this 31st day of December,
1984 by and between Timber Energy Resources, Inc., hereinafter referred to as
"QF", and Florida Power Corporation, hereinafter referred to as "the Company", a
private utility corporation organized under the laws of the State of Florida.
The QF and the Company shall collectively be referred to herein as the
"Parties".
W I T N E S S E T H:
WHEREAS, QF desires to sell, and the Company desires to purchase,
electricity to be generated by the QF consistent with Florida Public Service
Commission (FPSC) Rules 25-17.80 through 25-17.89 adopted in Order Xx.
00000, Xxxxxx Xx. 000000-XX; and
WHEREAS, QF has signed an Interconnection Agreement with the utility
in whose service territory the point of interconnection with the QF's generating
facility is located, attached hereto as Appendix A; and
WHEREAS, the terms and conditions of this Agreement substantially
conform with the standard form terms and conditions approved by the FPSC for the
purchase of Firm Energy and Capacity from a Qualifying Facility, except for
certain revisions agreed to by the Parties set forth in paragraphs 2 and 9.4
hereof.
NOW THEREFORE, for mutual consideration the Parties agree as
follows:
1. FACILITY
QF contemplates installing and operating a 16,482 KVA generator
located at Telogia, Florida. The generator is designed to produce a maximum of
14.01 megawatts (MW), or 14,010 kilowatts (KW) of electric power at an 85%
lagging power factor, such equipment being hereinafter referred to as
"Facility".
2. TERM OF THE AGREEMENT
This Agreement shall begin immediately upon its execution by the
parties and shall end at 12:01 a.m. April 1, 2002; provided, however, that the
parties agree that upon the demand of either party they will undertake good
faith negotiations with respect to extended terms and conditions of this
Agreement. It is agreed that the schedule of capacity payments attached hereto
as Exhibit "A" shall govern the obligations of the Company to make such capacity
payments during the initial term of this contract; subject, however, to
modification as provided in paragraph 9.3 hereof.
Notwithstanding the foregoing if construction and commercial
operation of the Facility are not accomplished by QF before April 1, 1992, this
Agreement shall be rendered of no force and effect.
3. SALE OF ELECTRICITY BY QF
The Company agrees to purchase all of the electric power generated
at the Facility and transmitted to the Company by QF. The purchase and sale of
electricity pursuant to this Agreement shall be construed as a Net Billing
Arrangement. The billing methodology may be changed to a Simultaneous Purchase
and Sale Arrangement at the option of the QF, subject to the following
provisions:
(a) not more frequently than once every twelve months;
(b) to coincide with the next Fuel and Purchased Power Cost Recovery
Factor billing period;
(c) upon at least thirty days advance written notice to the Company;
(d) upon the installation of any additional metering equipment
reasonably required to effect the change in billing and upon payment by the QF
for such metering equipment and its installation;
(e) upon completion and approval of any alterations to the
interconnection reasonably required to effect the change in billing and upon
payment by the QF for such alterations; and
(f) where the election to change billing methods will not contravene
the provisions of the tariff under which the Facility receives electrical
service, or any previously agreed upon contractual provision between the QF and
the Company.
4. PAYMENT FOR ELECTRICITY PRODUCED BY QF
4.1 Energy
The Company agrees to pay the QF for energy produced by the
Facility and delivered to the Company in accordance with the rates and
procedures contained in Rate Schedule COG-2 attached hereto as Appendix B, and
as may be amended from time to time. Prior to April 1, 1992 QF will receive
energy payments based on the Company's actual avoided energy costs. After April
1, 1992 QF's energy payments will be based on the lesser of the Company's actual
avoided energy costs or the fuel cost of the Statewide Avoided Unit as defined
in COG-2, such comparison to be made hourly.
4.2 Capacity
4.2.1 Anticipated Committed Capacity. QF expects to sell
approximately 13.466 MW or 13,466 KW of capacity, beginning on or about July 1,
1986.
-2-
QF may finalize its Committed Capacity after initial Facility
testing, and specify when capacity payments are to begin, by completing
paragraph 4.2.2 at a later time. However, QF must complete Paragraph 4.2.2 by
April 1, 1990 in order to be entitled to any capacity payments pursuant to this
Agreement.
4.2.2 Actual Committed Capacity. The capacity committed by QF
for the purposes of this Agreement is 12.765 MW or 12,765 KW. QF elects to
receive, and the Company agrees to commence calculating, capacity payments in
accordance with this Agreement starting with the first billing month following
April 1 ,1992
4.2.3 Capacity Payments. QF chooses to receive capacity
payments from the Company under Option A of Rate Schedule COG-2.
At the end of each billing month, beginning with the billing
month specified in Paragraph 4.2.2, the Company will calculate the most recent
twelve month rolling average capacity factor for such month based on QF's
Committed Capacity. If the capacity factor thus calculated is 70% or more, then
the Company agrees to pay QF a capacity payment that is the product of QF's
Committed Capacity and the applicable rate from QF's chosen capacity payment
Option.
The capacity payment for a given month will be added to the
energy payment for such month and tendered by the Company to QF as a single
payment as promptly as possible, normally by the twentieth business day
following the day the meter is read.
5. ELECTRICITY PRODUCTION SCHEDULE
During the term of this Agreement, QF agrees to:
(a) Provide the Company prior to October 1 of each calendar year an
estimate of the amount of electricity to be generated by the Facility and
delivered to the Company for each month of the following calendar year,
including the time, duration and magnitude of any planned outages or reductions
in capacity;
(b) Promptly update the yearly generation schedule and maintenance
schedule as and when any changes may be determined necessary;
(c) Coordinate its scheduled Facility outages with the Company;
(d) Comply with reasonable requirements of the Company regarding
day-to-day or hour-by-hour communications between the parties relative to the
performance of this Agreement; and
(e) Adjust reactive power flow at the point of interconnection as
may be reasonably required by the Company within the range of an 85% leading to
an 85% lagging power factor.
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6. QF'S OBLIGATION IF QF RECEIVES EARLY CAPACITY PAYMENTS
The QF's payment option choice pursuant to paragraph 4.2.3 may
result in payment by the Company for capacity delivered prior to April 1, 1992.
The Parties recognize that capacity payments paid through March 31, 1992, are in
the nature of an "early payment" for a future capacity benefit to the Company.
To ensure that the Company will receive a capacity benefit for which early
capacity payments have been made, or alternatively, that the QF will repay the
amount of early payments received to the extent the capacity benefit has not
been conferred, the following provisions will apply:
The Company shall establish a Capacity Account. Amounts shall be
credited to the Capacity Account each month through March, 1992, in the amount
of the Company's capacity payments made to the QF pursuant to QF's chosen
payment option from Rate Schedule COG-2. The monthly balance in the Capacity
Account shall accrue interest at an annual rate of 10.5%. Commencing on April 1,
1992, there shall be debited from the Capacity Account an Early Payment Offset
Amount to reduce the balance in the Capacity Account. Such Early Payment Offset
Amount shall be equal to that amount which the Company would have paid for
capacity in that month if the capacity payment had been calculated pursuant to
Option A in Rate Schedule COG-2 and the QF had elected to begin receiving
payment on April 1, 1992, minus the monthly capacity payment the Company makes
to QF pursuant to the capacity payment option chosen by QF in paragraph 4.2.3.
The QF shall owe the Company and be liable for the credit balance in
the Capacity Account. The Company agrees to notify QF monthly as to the current
Capacity Account balance. Prior to, receipt of advance capacity payments the QF
shall execute a promise to repay any credit balance in the Capacity Account in
the event the QF defaults pursuant to this Agreement. Such promise shall be
secured by means mutually acceptable to the Parties and in accordance with the
provisions of Rate Schedule COG-2. The specific repayment assurances selected
for purposes of this Agreement are an irrevocable letter of credit, surety bond,
or other means of assurance mutually acceptable to both parties and determined
prior to first capacity payments. The total Capacity Account credit balance
shall immediately become due and payable in the event of default by the QF. The
QF's obligation to pay the credit balance in the Capacity Account shall survive
termination of this Agreement.
7. NON-PERFORMANCE PROVISIONS
QF shall not receive a capacity payment during any month in which
the twelve months rolling average of the QF's capacity factor does not equal or
exceed 70% as defined in Rate Schedule COG-2. In addition, if for any month
after April 1, 1992, the QF fails to achieve a 70% capacity factor on a 12 month
rolling average basis and the QF has received capacity payments prior to April
1, 1992, the QF shall be liable for and shall pay the Company an amount equal to
the Early Payment Offset Amount for the month; provided, however, that such
calculation shall assume that the QF achieved a 70% capacity factor. Any
payments thus required of QF shall be separately invoiced by the Company to QF
after each month for which such payment is due and shall be paid by QF within 20
days after receipt of such invoice by QF. Such payment shall be debited from the
Capacity Account as an Early Payment Offset Amount.
-4-
In no event shall the QF pay to the Company for non-performance such
amounts which exceed the current credit balance in the Capacity Account.
8. DEFAULT
8.1 Mandatory Default. The QF shall be in default under this
Agreement if: (1) the QF voluntarily declares bankruptcy, or (2) the QF ceases
all electric generation from the Facility for 12 consecutive months.
8.2 Optional Default. The Company may declare the QF to be in
default: (1) if at any time prior to April 1, 1992 and after capacity payments
have begun the Company has sufficient reason to believe that the QF is unable to
deliver its Committed Capacity, or (2) after April 1, 1992 the QF fails to
maintain a 70% capacity factor on a twelve month rolling average basis for 24
consecutive months, or (3) because of a QF's refusal, inability or anticipatory
breach of obligation to deliver its Committed Capacity after April 1, 1992.
8.3 Default Remedy. Once this contract is declared to be in default,
upon written notice to the QF, the then-current credit balance of the Capacity
Account shall be paid to the Company.
9. GENERAL PROVISIONS
9.1 Permits. QF hereby agrees to seek to obtain any and all
governmental permits, certifications, or other authority QF is required to
obtain as a prerequisite to engaging in the activities provided for in this
Agreement. The Company hereby agrees, at QF's expense, to seek to obtain any and
all governmental permits, certifications or other authority the Company is
required to obtain as a prerequisite to engaging in the activities provided for
in this Agreement.
9.2 Indemnification. QF agrees to indemnify and save harmless the
Company, its subsidiaries and affiliates, and their respective employees,
officers, and directors against any and all liability, loss, damage, costs or
expense which the Company, its subsidiaries and affiliates, and their respective
employees, officers and directors may hereafter incur, suffer or be required to
pay by reason of negligence on the part of QF in performing its obligations
pursuant to this Agreement or QF's failure to abide by the provisions of this
Agreement. The Company agrees to indemnify and save harmless QF against any and
all liability, loss, damage, cost or expense which QF may hereafter incur,
suffer, or be required to pay by reason of negligence on the part of the Company
in performing its obligations pursuant to this Agreement or the Company's
failure to abide by the provisions of this Agreement. QF agrees to include the
Company as an additional insured in any liability insurance policy or policies
QF obtains to protect QF's interests with respect to QF's indemnity and hold
harmless assurances to the Company contained in this Section.
9.3 Renegotiations Due to Regulatory Changes. Anything in this
Agreement to the contrary notwithstanding, should the Company at any time during
the term of this Agreement fail to obtain or be denied the FPSC's authorization,
or the authorization of any other regulatory body which now has or in the future
may have jurisdiction over the Company's rates and charges, to recover from its
customers all of the payments required to be made to QF under
-5-
the terms of this Agreement or any subsequent amendment to this Agreement, the
parties agree that, at the Company's option, they shall renegotiate this
Agreement or any applicable amendment. If the Company exercises such option to
renegotiate, the Company shall not thereafter be required to make such payments
to the extent the Company's authorization to recover them from its customers is
not obtained or is denied. The Company's exercise of its option to renegotiate
shall not relieve the QF of its obligation to pay the credit balance in the
Capacity Account. It is the intent of the parties that the Company's payment
obligations under this Agreement or any amendment hereto are conditioned upon
the Company's being fully reimbursed for such payments through the Fuel and
Purchased Power Cost Recovery Clause or other authorized rates or charges. Any
such payments initially recovered by the Company from its customers but for
which recovery is subsequently disallowed by the FPSC and charged back to the
Company may be set off or credited against subsequent payments made by the
Company for purchases from the QF, or alternatively, shall be repaid by the QF.
9.4 Agreement to Renegotiate. The Parties hereby agree to commence
renegotiation of this Agreement in good faith within 45 days after the date
hereof with a view toward achieving agreement upon improved terms and conditions
hereof to the mutual benefit of both parties; provided, however, that in the
event the Parties fail to reach agreement, or in the event any amendment hereto
does not receive approval by the Florida Public Service Commission, the parties
will comply with the provisions of this Agreement as presently set forth.
9.5 Force Majeure. If either party shall be unable, by reason of
force majeure, to carry out its obligations under this Agreement, either wholly
or in part, the party so failing shall give written notice and full particulars
of such cause or causes to the other party as soon as possible after the
occurrence of any such cause; and such obligations shall be suspended during the
continuance of such hindrance, which, however, shall be remedied with all
possible dispatch; and the obligations, terms and conditions of this Agreement
shall be extended for such period as may be necessary for the purpose of making
good any suspension so caused. The term "force majeure" shall be taken to mean
acts of God, strikes, lockouts or other industrial disturbances, wars,
blockades, insurrections, riots, arrests and restraints of rules and people,
environmental constraints lawfully imposed by federal, state or local government
bodies, explosions, fires, floods, lightning, wind, perils of the sea, accidents
to equipment or machinery or similar occurrences; provided, however, that no
occurrences may be claimed to be a force majeure occurrence if it is caused by
the negligence or lack of due diligence on the part of the party attempting to
make such claim. QF agrees to pay the costs necessary to reactivate the Facility
and/or the interconnection with the Company's system if the same are rendered
inoperable due to actions of QF, its agents, or force majeure events affecting
the Facility or the interconnection with the Company. The Company agrees to
reactivate at its own cost the interconnection with the Facility in
circumstances where any interruptions to such interconnections are caused by the
Company or its agents.
9.6 Assignment. The QF shall have the right to assign its benefits
under this Agreement, but the QF shall not have the right to assign its
obligations and duties without the Company's prior written approval.
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9.7 Disclaimer. In executing this Agreement, the Company does not,
nor should it be construed to, extend its credit or financial support for the
benefit of any third parties lending money to or having other transactions with
QF or any assignee of this Agreement.
9.8 Notification. For purposes of making any and all non-emergency
oral and written notices, payments or the like required under the provisions of
this Agreement, the Parties designate the following to be notified or to whom
payment shall be sent until such time as either party furnishes the other party
written instructions to contact another individual.
For QF:
Xxxx X. Xxxxxxx
c/o Timber Energy Resources, Inc.
0000 Xxxxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Phone: (000) 000-0000
For the Company:
X.X. Xxxxxx, Vice President
Florida Power Corporation
0000 X.X. Xxxxx Xxxxxx
Xxxxx, Xxxxxxx 00000
Phone: (000) 000-0000
9.9 Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida.
9.10 Severability. If any part of this Agreement, for any reason,
shall be declared invalid, or unenforceable by a public authority of appropriate
jurisdiction, then such decision shall not affect the validity of the remainder
of the Agreement, which remainder shall remain in force and effect as if this
Agreement had been executed without the invalid or unenforceable portion.
9.11 Complete Agreement and Amendments. All previous communications
or agreements between the Parties, whether verbal or written, with reference to
the subject matter of this Agreement are hereby abrogated. No amendment or
modification to this Agreement shall be binding unless it shall be set forth in
writing and duly executed by both parties to this Agreement.
9.12 Incorporation of Rate Schedule. The parties agree that this
Agreement shall be subject to all of the provisions contained in The Company's
published Rate Schedule COG-2 as approved and on file with the FPSC. The Rate
Schedule is incorporated herein by reference.
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9.13 Survival of Agreement. This Agreement as may be amended from
time to time, shall be binding and inure to the benefit of the Parties'
respective successors-in-interest and legal representatives.
IN WITNESS WHEREOF, QF and The Company have executed this Agreement
the day and year first above written.
Timber Energy Resources, Inc.
/s/ /s/ Xxxx X. Xxxxxxx
------------------------------------- -------------------------------------
Witness Xxxx X. Xxxxxxx, President
/s/
-------------------------------------
Witness
Florida Power Corporation
/s/ /s/ Xxxxxx X. Xxxxxx
------------------------------------- -------------------------------------
Witness Xxxxxx X. Xxxxxx, Vice President
/s/
-------------------------------------
Witness
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EXHIBIT A
Standard 10 Yr. Deferral
-------------------------------------------
Capacity Cost O&M Cost Total Cost
Year $/kw-mo $/kw-mo $/kw-mo
---- ------- ------- -------
4/1986 - 3/1987 5.60 -- 5.60
4/1987 - 3/1988 5.90 -- 5.90
4/1988 - 3/1989 6.22 -- 6.22
4/1989 - 3/1990 6.56 -- 6.56
4/1990 - 3/1991 6.91 -- 6.91
4/1991 - 3/1992 7.29 -- 7.29
4/1992 - 3/1993 7.68 4.21 11.89
4/1993 - 3/1994 8.10 4.44 12.54
4/1994 - 3/1995 8.53 4.68 13.21
4/1995 - 3/1996 9.00 4.93 13.93
4/1996 - 3/1997 9.48 5.20 14.68
4/1997 - 3/1998 9.99 5.48 15.47
4/1998 - 3/1999 10.53 5.78 16.31
4/1999 - 3/2000 11.10 6.09 17.19
4/2000 - 3/2001 11.70 6.42 18.12
4/2001 - 3/2002 12.32 6.77 19.09
Page 1 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
AVAILABILITY:
Florida Power Corporation will purchase Firm Capacity and Energy offered by any
Qualifying Facility, irrespective of its location, which is either directly or
indirectly interconnected with the Company under the provisions of this
schedule. Florida Power Corporation will negotiate and may contract with any
Qualifying Facility, irrespective at its location, which is either directly or
indirectly interconnected with the Company for the purchase at Firm Capacity and
Energy pursuant to terms and conditions which deviate from this schedule where
such negotiated contracts are in the best interest of the Company's ratepayers.
APPLICABLE:
To any cogeneration or small power production Qualifying Facility, irrespective
of its location, producing capacity and energy for sale to the Company on a firm
basis pursuant to the terms and conditions of this schedule and the Company's
"Standard Offer Contract" or a separately negotiated contract. Firm Capacity and
Energy are described by the Florida Public Service Commission (FPSC) Rules
25-17.83, F.A.C., and are capacity and energy produced and sold by a Qualifying
Facility pursuant to a negotiated or standard Company contract offer and subject
to certain contractual provisions as to quantity, time, and reliability of
delivery. Criteria for achieving Qualifying Facility status shall be those set
out in FPSC Rule 25-17.80, F.A.C.
CHARACTER OF SERVICES:
Purchases within the territory served by the Company shall be, at the option of
the Company, single or three phase, 60 hertz, alternating current at any
available standard Company voltage. Purchases from outside the territory served
by the Company shall be three phase, 60 hertz, alternating current at the
voltage level available at the interchange point between the Company and the
entity delivering Firm Capacity and Energy from the Qualifying Facility.
LIMITATION OF SERVICE:
Purchases under this schedule are subject to the Company's "General Standards
for Safety and Interconnection of Cogeneration and Small Power Production
Facilities to the Electric Utility System" and to FPSC Rules 25-17.80 through
25-17.87, F.A.C., and are limited to those Qualifying Facilities which:
A. Execute a Company "Standard Offer Contract" prior to April 1,
1990 for the Company's purchase of Xxxx Capacity and Energy; and
B. Commit to commence deliveries of Firm Capacity and Energy no later
than April 1, 1992, and to continue such deliveries through at least
March 31, 2002.
RATES FOR PURCHASES BY THE COMPANY:
Firm Capacity and Energy are purchased at a unit cost, in dollars per kilowatt
per month and cents per kilowatt hour, respectively, based on the value of
deferring additional generating capacity in Florida. For the purpose of this
schedule, a Statewide Avoided Unit has been designated by the FPSC and is
considered to be a jointly owned, peninsular Florida base load generating plant
consisting of two (2), 700 MW coal fired generating units with an in-service
date of April 1, 1992. Appendix A of this schedule describes the methodology
used to calculate payment schedules, general terms, and conditions applicable to
the Company's "Standard Offer Contract" pursuant to FPSC Rules 25-17.80 through
25-17.87, F.A.C.
(Continued on Page No. 2)
Page 2 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 1)
A. Firm Capacity Rates
Three options, A through C, as set forth below, are available for payment
for Firm Capacity which is produced by the Qualifying Facility and
delivered to the Company. Once selected, an option shall remain in effect
for the term of the contract with the Company. Exemplary payment
schedules, shown below, contain the monthly rate per kilowatt of Firm
Capacity the Qualifying Facility has contractually committed to deliver to
the Company and are based on a minimum contract term which extends ten
(10) years beyond the anticipated in-service date of the Statewide Avoided
Unit (i.e., through March 31, 2002). Payment schedules for longer contract
terms will be made available to a Qualifying Facility upon request and may
be calculated based on the methodologies described in Appendix A.
Option A - Fixed Value of Deferral
Payment schedules under this option are based on the value of a
year-by-year deferral of the Statewide Avoided Unit with an in-service
date of April 1, 1992; calculated in accordance with FPSC Rule 25-17.83,
F.A.C., as described in Appendix A. Once this option is selected, the
current schedule of payments shall remain fixed and in effect throughout
the term of the "Standard Offer Contract".
The Qualifying Facility shall select the month and year in which the
delivery of Firm Capacity and Energy to the Company is to commence and
capacity payments are to start. The Company will provide the Qualifying
Facility with a schedule of capacity payment rates based on the month and
year in which the delivery of Firm Capacity and Energy are to commence and
the term of the contract. The following exemplary payment schedule is
based on the minimum required contract term which must extend at least ten
(10) years beyond the anticipated in-service date of the Statewide Avoided
Unit. The currently approved parameters used to calculate the following
schedule of payments are found in Appendix B of this schedule.
MONTHLY CAPACITY PAYMENT RATE $/KW/MONTH
Normal
Payment
Option
Contract Year Starting Early Payment Option Starting:
------------- -------- ------------------------------------------------------------------------
FROM TO 4/1/92 4/1/91 4/1/90 4/1/89 4/1/88 4/1/87 4/1/86 4/1/85 4/1/84
---- --- ------ ------- ------- ------ ------- ------- ------- ------ -------
*4/1/84 3/31/85 - - - - - - - - 4.25
4/1/85 3/31/86 - - - - - - - 4.87 4.48
4/1/86 3/31/87 - - - - - - 5.60 5.13 4.72
4/1/87 3/31/88 - - - - - 6.47 5.90 5.41 4.97
4/1/88 3/31/89 - - - - 7.50 6.82 6.22 5.70 5.24
4/1/89 3/31/90 - - - 8.74 7.90 7.18 6.56 6.01 5.53
4/1/90 3/31/91 - - 10.24 9.21 8.33 7.57 6.91 6.34 5.82
4/1/91 3/31/92 - 12.08 10.79 9.70 8.78 7.98 7.29 6.68 6.14
4/1/92 3/31/93 18.58 16.94 15.59 14.44 13.47 12.63 11.89 11.25 10.68
4/1/93 3/31/94 19.58 17.86 16.43 15.22 14.19 13.31 12.54 11.86 11.26
4/1/94 3/31/95 20.64 18.82 17.31 16.04 14.96 14.03 13.21 12.50 11.87
4/1/95 3/31/96 21.75 19.84 18.25 16.91 15.77 14.78 13.93 13.18 12.51
4/1/96 3/31/97 22.93 20.91 19.24 17.82 16.62 15.58 14.68 13.89 13.19
4/1/97 3/31/98 24.17 22.04 20.27 18.79 17.52 16.42 15.47 14.64 13.90
4/1/98 3/31/99 25.47 23.23 21.37 19.80 18.46 17.31 16.31 15.43 14.65
4/1/99 3/31/00 26.85 24.48 22.52 20.87 19.46 18.24 17.19 16.26 15.44
4/1/00 3/31/01 28.30 25.81 23.74 22.00 20.51 19.23 18.12 17.14 16.27
4/1/01 3/31/02 29.83 27.20 25.02 23.18 21.62 20.27 19.09 18.06 17.15
----------------------
* Payments commencing in 1984 are available only for existing Qualifying
Facilities not currently under contract.
(Continued on Page No. 3)
Page 3 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 2)
Option B - Variable Value of Deferral
Payment schedules under this option are based on the value of a
year-by-year deferral of the Statewide Avoided Unit with an in-service
date of April 1, 1992. Once this option is selected, the Statewide Avoided
Unit designation and its in-service date shall remain fixed for the term
of true "Standard Offer Contract". The value of deferral, however, shall
be recalculated annually and the payment schedule shall be adjusted, upon
approval by the FPSC, to reflect the most recent factors affecting the
cost of constructing the Statewide Avoided Unit. The Qualifying Facility
shall select the month and year in which the delivery of Firm Capacity and
Energy to the Company is to commence and capacity payments are to start
pursuant to this option.
The methodology used to determine the level of payment each year is the
same as that used in Option A of this schedule and is described in
Appendix A. For informational purposes only, the current projection of
payments are those contained in Option A on the previous page.
Option C - Average Embedded Book Cost of Fossil Steam Production Plant
Monthly capacity payments are made under this option shall be based on the
Company's current average embedded book cost of fossil steam production
plant approved by the FPSC and in effect in the year in which payment is
made.
The following monthly payment schedule is provided for informational
purposes only. It reflects the Company's current projection of payments.
Projected Monthly Capacity Payment Rate - $/KW/Month
*1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
----- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
3.84 4.61 4.66 4.69 4.72 4.75 4.78 4.81 4.84 4.87 7.65 7.11 7.75 9.69 9.83 9.88 11.8 11.9 12.16
---------
* Payments commencing in 1984 are available only for existing Qualifying
Facilities not currently under contract.
B. Energy Rates
1. Payments Prior to April 1, 1992
The energy rate in cents per kilowatt-hour ((cent)/KWH) shall be
based on the Company's actual hourly avoided energy costs which are
calculated by the Company in accordance with FPSC Rule 25-17.825,
F.A.C. Avoided energy costs include incremental fuel, identifiable
operation and maintenance expenses, and an adjustment for line
losses reflecting delivery voltage. When economy transactions take
place, the incremental costs are calculated after the purchase or
before the sale of the economy energy.
The calculation of payments to the Qualifying Facility shall be
based on the sum, over all hours of the billing period, of the
product of each hour's avoided energy cost times the purchases by
the Company for that hour. All purchases shall be adjusted for
losses from the point of metering to the point of interconnection.
2. Payments Starting on April 1, 1992
The energy rate in cents per kilowatt-hour ((cent)/KWH), shall be
the lesser of an hour-by-hour comparison of: (1) the fuel component
of the Company's avoided energy costs calculated in accordance with
rule 25-17.825, F.A.C.; and (b) the Statewide Avoided Unit Fuel
Cost. The Statewide Avoided Unit Fuel Cost, in cents per
kilowatt-hour ((cent)/KWH) shall be defined as the product of: (a)
the average monthly inventory charge out price of coal burned at
Tampa Electric Company's Big Unit No. 4, in cents per million Btu;
and (b) an average annual heat rate of 10.5 million Btu per megawatt
hours.
(Continued on Page No. 4)
Page 4 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 3)
Calculation of payments to the Qualifying Facility shall be based on
the sum, over all hours of the billing period, of the product of
each hour's avoided energy cost times the purchases by the Company
for that hour. All purchases shall be adjusted for losses from the
point of metering to the point of interconnection.
ESTIMATED FIRM ENERGY COST:
For informational purposes only, the estimated incremental avoided energy costs
for the next four semi-annual periods are as follows. These estimates include a
credit for estimated variable operating and maintenance expense of 0.056
(cent)/KWH. The variable O&M credit will be recomputed monthly in accordance
with the Company's methodology.
On-Peak Off-Peak Average
Applicable Period (cent)/KWH (cent)/KWH (cent)/KWH
----------------- ---------- ---------- ----------
April, 1986-September, 1986 3.106 2.589 2.831
October, 1986-March, 1987 3.072 2.838 2.935
April, 1987-September, 1987 3.961 3.112 3.506
October, 1987-March, 1988 3.298 2.846 3.079
A 100 MW block has been used to calculate the estimated avoided energy cost.
PERFORMANCE CRITERIA:
Payments for firm capacity are conditioned on the Qualifying Facility's ability
to maintain the following performance criteria:
A. Commercial In-Service Date
Capacity payments shall not commence until the Qualifying Facility has
attained and demonstrated, commercial in-service status. The commercial
in-service date of a Qualifying Facility shall be defined as the first day
of the month following the successful completion of the Qualifying
Facility maintaining an hourly kilowatt (KW) output, as metered at the
point of interconnection with the Company, equal to or greater than the
Qualifying Facility's "Standard Offer Contract" committed capacity for a
24 hour period. A Qualifying Facility shall coordinate the selection of
and operation of its facility during this test period with the Company to
insure that the performance of its facility during this 24-hour period is
reflective of the anticipated day to day operation of the Qualifying
Facility.
B. Capacity Factor
Upon achieving commercial in-service status, payments for Firm Capacity
shall be made monthly in accordance with the capacity payment rate option
selected by the Qualifying Facility and subject to the provision that the
Qualifying Facility maintains a 70% capacity factor on a 12 month rolling
average basis as defined in Appendix A. Failure to achieve this capacity
factor shall result in true Qualifying Facility's forfeiture of payments
for Firm Capacity during the month in which such failure occurs. Where
early capacity payments have been elected and starting with the month of
April, 1992, failure of a Qualifying Facility to maintain a 70% capacity
factor an a 12 month rolling average basis shall also result in payments
by the Qualifying Facility to the Company. The amount of such payments
shall be equal to the difference between: (1) what the Qualifying Facility
would have been paid had it elected the normal payment option starting
April 1, 1992; and (2) what it would have been paid pursuant to the early
payment option had it maintained the capacity factor performance criteria.
(Continued on Page No. 5)
Page 5 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 4)
All capacity payments made by the Company prior to April 1, 1992 are
considered "early payments". The owner or operator of the Qualifying
Facility, as designated by the Company, shall secure its obligation to
repay, with interest, the cumulative amount of early capacity payments in
the event the Qualifying Facility defaults under the terms of its
"Standard Offer Contract" with the Company. The Company will provide
monthly summaries of the total outstanding balance of such security
obligations. A summary of the types of security instruments which are
generally acceptable to the Company is discussed in Appendix A.
C. Additional Criteria
1. The Qualifying Facility shall provide monthly generation estimates
by October 1 for the next calendar year; and
2. The Qualifying Facility shall promptly update its yearly generation
schedule when any changes are determined necessary; and
3. The Qualifying Facility shall agree to reduce generation or take
other appropriate action as requested by the Company for safety
reasons or to preserve system integrity; and
4. The Qualifying Facility shall coordinate schedule outages with the
Company; and
5. The Qualifying Facility shall comply with the reasonable requests of
the Company regarding daily or hourly communications.
DELIVERY VOLTAGE ADJUSTMENTS:
Energy payments to Qualifying Facilities within he Company's service territory
shall be adjusted according to the delivery voltage by the following
multipliers:
Qualifying Facility Delivery Voltage Adjustment Factor
------------------------------------ -----------------
69 KV or Greater 1.038
4 KV, 12 KV, 25 KV @ Substation Bus 1.047
4 KV, 12 KV, 25 KV @ Primary Bus 1.058
600 Volts or Lower 1.076
METERING REQUIREMENTS:
Qualifying Facilities within the territory served by the Company shall be
required to purchase from the Company hourly recording meters to measure their
energy production. Energy purchases from Qualifying Facilities outside the
territory served by the Company shall be measured as the quantities schedule for
interchange to the Company by the entity delivering firm capacity and energy to
the Company.
For the purpose of this schedule, the on-peak hours occur Monday through Friday
except holiday, April 1 - October 31 from 12 noon to 9:00 P.M., and November 1 -
March 31 from 6:00 A.M. to 10:00 A.M. and 6:00 P.M. to 10:00 P.M. All hours not
mentioned above and all hours of the holidays of New Year's Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day are off-peak
hours.
BILLING OPTIONS:
The Qualifying Facility may elect to make either simultaneous purchases and
sales or net sales. The decision to change billing methods can be made once
every twelve (12) months coinciding with the next Fuel and Purchased Power Cost
Recovery Factor billing period provided the Company is given at least thirty
(30) days written notice before the change is to take place. In addition,
allowance must be made for the installation or alteration of needed metering or
interconnection equipment for which the qualifying facility must pay; and such
purchases and/or sales must not abrogate any provisions of the tariff or
contract with the Company.
(Continued on Page No. 6)
Page 6 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 5)
A statement covering the charges and payments due the Qualifying Facility is
rendered monthly, and payment normally is made by the twentieth business day
following the end of the billing period.
CHARGES TO QUALIFYING FACILITY:
A. Customers Charges
Monthly customer charges for meter reading, billing and other applicable
administrative costs by Rate Schedule are:
RS-1 $ 6.10
RST-1 11.28
GS-1 6.10
GST-1 11.28
GSD-1 17.75
GSDT-1 22.93
GSLD-1 91.00
GSLDT-1 96.18
GSLDT-2 265.00
GSLD-2 265.00
CS-1 175.00
CST-1 175.00
IS-1 475.00
IST-1 475.00
MS-1 6.10
B. Interconnection Charge for Non-Variable Utility Expenses
The Qualifying Facility shall bear the cost required for interconnection
including the metering. The Qualifying Facility shall have the option of
payment in full for interconnection or making equal monthly installment
payments over a thirty-six (36) month period together with interest at
the rate then prevailing for thirty (30) days prior to the date of each
payment.
C. Interconnection Charge for Variable Utility Expenses
The Qualifying Facility shall be billed monthly for the cost of variable
utility expenses associated with the operation and maintenance of the
interconnection. These include (a) the Company's inspections of the
interconnection and (b) maintenance of any equipments beyond that which
would be required to provide normal electric service to the Qualifying
Facility if no sales to the Company were involved.
In lieu of payments for actual charges, the Qualifying Facility may pay a
monthly charge equal to 0.57% of the installed cost of the interconnection
facilities.
D. Taxes and Assessments
The Qualifying Facility shall be billed monthly an amount equal to the
taxes, assessments, or other impositions, if any, for which the Company is
liable as a result of its purchases of Firm Capacity and Energy produced
by the Qualifying Facility.
TERMS OF SERVICE:
1. It shall be the Qualifying Facility's responsibility to inform the Company
of any change in its electric generating ability.
(Continued on Page No. 7
Page 7 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 6)
2. Any electric service delivered by the Company to the Qualifying Facility
shall be metered separately and billed under the applicable retail rate
schedule and the terms and conditions of the applicable rate schedule
shall pertain.
3. A security deposit will be required in accordance with FPSC Rules
25-17.82(5) and 25-6.97, F.A.C. and the following:
a. In the first year of operation, the security deposit should be based
upon the singular month in which the QF's projected purchases from
the utility exceed, by the greatest amount, the utility's estimated
purchases from the QF. The security deposit should be equal to twice
the amount of the difference estimated for that month. The deposit
should be required upon interconnection.
b. For each year thereafter, a review of the actual sales and purchases
between the QF and the utility should be conducted to determine the
actual month of maximum difference. The security deposit should be
adjusted to equal twice the greatest amount by which the actual
monthly purchases by the QF exceed the actual sales to the utility
in that month.
4. The Company shall specify the point of interconnection and voltage level.
5. The Company will, under the provisions of this Schedule, require an
agreement with the Qualifying Facility upon the Company's filed
Standard Offer Contract and Standard Agreement for Parallel Operation
between the Qualifying Facility and the Company. The Qualifying
Facility shall recognize that its generation facility may exhibit
unique interconnection requirements which will be separately evaluated,
modifying the Company's General Standard for Safety and interconnection
where applicable.
6. Service under this rate schedule is subject to the rules and regulations
of the Company and the Florida Public Service Commission.
SPECIAL PROVISION:
1. Special contracts deviating from the above standard rate schedule are
allowable provided they are agreed to by the Company and approved by the
Florida Public Service Commission.
2. A Qualifying Facility located within the Company's service territory may
sell Firm Capacity and Energy to a utility other than the Company. Where
such agreements exist and existing transmission capacity is available, the
Company will provide transmission wheeling service to deliver the
Qualifying Facility's power to the purchasing utility or to an
intermediate utility.
When a Qualifying Facility located within the Company's service territory
exercises its option to sell As-Available Energy to a utility other than the
Company prior to the in-service date (April 1, 1992) of the Statewide Avoided
Unit and existing transmission capacity is available, the Company will also
provide transmission wheeling service to deliver the Qualifying Facility's power
to the purchasing utility or to an intermediate utility. In addition, the
Company will provide transmission wheeling service through its territory for a
Qualifying Facility located outside the Company's service territory, for
delivery of the Qualifying Facility's power to the purchasing utility or to an
intermediate utility. Transmission service that is determined to be an
intrastate transaction will be provided, subject to availability, under the
rates, terms and conditions set forth in Rate Schedule COG-3 or, as provided for
therein, under a separate, compensatory contract. Transmission service that is
determined to be an interstate transaction will be provided, subject to
availability, under rates, terms and conditions filed with, and accepted for
filing by, the Federal Energy Regulatory Commission (a copy of the Company's
currently effective wholesale tariff rate schedule applicable to transmission
service is on file with the Public Service Commission and is available from the
Company upon request).
(Continued on Page No. 8)
Page 8 of 8
RATE SCHEDULE COG-2
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 7)
Interstate transactions are defined as those determined to be jurisdictional by
the Federal Energy Regulatory Commission. Intrastate transactions are defined as
all other transactions.
The Qualifying Facility shall be responsible for all costs associated with such
wheeling including:
A. Wheeling charges
B. Line losses incurred by the Company
C. Inadvertent energy flows resulting from such wheeling.
Energy delivered to the Company shall be adjusted before delivery to another
utility as follows:
Qualifying Facility Delivery Voltage Adjustment Factor
------------------------------------ -----------------
69 KV or Greater 0.963
4 KV, 12 KV, 25 KV @ Substation Bus 0.955*
4 KV, 12 KV, 25 KV @ Primary Bus 0.945*
600 Volts or Lower 0.929*
* The 69 KV or greater adjustment factor shall apply if the following
conditions are met for Qualifying Facility power and energy input to
the Company's distribution facilities:
(1) The input power and energy fully displace power and energy that the
Company would otherwise be required to supply to other customers on
the same distribution facility, and
(2) The delivery voltage to the receiving utility system is 69 KV or
greater.
The Company may deny, curtail or discontinue providing transmission service
under this special provision if the provision of such service would adversely
affect the adequacy, reliability or cost of providing electric service to its
general body of retail and wholesale customers.
For a more complete description of the rates, terms and conditions under which
intrastate transmission service may be offered, refer to Rate Schedule COG-3
commencing on sheet 9.700 of this tariff section. For similar information
related to interstate transmission service, refer to the Company's currently
effective wholesale tariff rate schedule applicable to transmission service, a
copy of which is on file with the Florida Public Service commission and
available from the Company upon request.
Page 1 of 4
RATE SCHEDULE COG-2
APPENDIX A
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
APPLICABILITY:
Appendix A provides a detailed description of the methodology used by the
Company to calculate the monthly values of deferring the Statewide Avoided Unit
referred to in Schedule COG-2. When used in conjunction with the current FPSC
approved cost parameters associated with the Statewide Avoided Unit contained in
Appendix B, a Qualifying Facility may determine the applicable value of deferral
capacity payment rate associated with the timing and operation of its particular
facility should the Qualifying Facility enter into a "Standard Offer Contract"
with the utility.
Also contained in Appendix A is the methodology used by the Company to calculate
the 12 month rolling average capacity factor of a Qualifying Facility and a
discussion of the types and forms of surety bond requirements or equivalent
assurance of repayment of early capacity payments acceptable to the Company in
the event of contractual default by a Qualifying Facility.
CALCULATION OF VALUE OF DEFERRAL:
FPSC Rules 25-17.83(7) specifies that avoided capacity costs, in dollars per
kilowatt per month, associated with firm capacity sold to a utility by a
Qualifying Facility pursuant to the utility's standard offer shall be defined as
the value of a year-by-year deferral of the Statewide Avoided Unit and shall be
calculated as follows:
(1 + ip)
1 - ---------
C (1 - r) 1 + i
VACm = -- ( KIn ( -------------------- ) + Dn ( -------- ) )
12 L 1 + r
(1 + ip)
1 - ---------
(1 + r)
Where, for a one year deferral:
VACm = utility's value of avoided capacity, in dollars per
kilowatt per month, during month m;
C = a constant risk multiplier equal to 0.8 for the purpose of
the utility's standard offer agreement;
K = present value of carrying charge for one dollar of
investment over L years with carrying charges assumed to be
paid at the end of each year;
In = total direct and indirect cost, in dollars per kilowatt
including AFUDC but excluding CWIP, of the statewide avoided
unit with an in-service date of year n;
Dn = total first year's fixed and variable operating and
maintenance expense, less fuel and in dollars per kilowatt per
year, of the statewide avoided unit deflated to the beginning
of year n by io;
ip = annual escalation rate associated with the plant cost of
the statewide avoided unit;
(Continued on Page No. 2)
Page 2 of 4
RATE SCHEDULE COG-2
APPENDIX A
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 1)
r = annual discount rate, defined as the utility's incremental
after tax cost of capital;
L = expected life of the statewide avoided unit; and
n = year for which the statewide avoided unit is deferred
starting with its original anticipated in-service date and
ending with the termination of the contract for the purchase
of firm energy and capacity.
Normally, payment for firm capacity shall not commence until the in-service date
of the statewide avoided unit. At the options of the Qualifying Facility,
however, the utility may begin making early capacity payments consisting of the
capital cost component of the value of a year-by-year deferral of the statewide
avoided unit starting as early as seven years prior to the anticipated
in-service date of the statewide avoided unit. When such early capacity payments
are elected, the avoided capital cost component of capacity payments shall be
paid monthly commencing no earlier than the Commercial In-Service date of the
Qualifying Facility, and shall be calculated as follows:
n
A (1 + ip) ; for n = o, n
Am = ----------
12
Where:
Am = monthly avoided capital cost component of capacity payments
to be made to the Qualifying Facility starting as early as
seven years prior to the anticipated in-service date of the
statewide avoided unit, in dollars per kilowatt per month;
ip = annual escalation rate associated with the plant cost of me
statewide avoided unit;
n = year for which early capacity payments to a Qualifying
Facility are made;
(1 + ip)
1 - ( )
A = F (1 + r)
( --------------- )
t
(1 + ip)
1 - ( )
(1 + r)
Where:
F = the cumulative present value of the avoided capital cost
component of capacity payments which would have been made had
capacity payments commenced with the anticipated in-service
date of the statewide avoided unit;
r = annual discount rate, defined as the utility's incremental
after tax cost of capital; and
(Continued on Page No. 3)
Page 3 of 4
RATE SCHEDULE COG-2
APPENDIX A
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 2)
t = the term, in years, of the contract for the purchase of firm
capacity commencing prior to the in-service date of the
statewide avoided unit, and commencing with the year in which
the Qualifying Facility elects to receive early capacity
payments.
Currently approved parameters applicable to the formulas above are found
in Appendix B.
CALCULATION OF 12 MONTH ROLLING AVERAGE CAPACITY FACTOR:
Pursuant to FPSC Rule 25-17.83(3)(a)(ii), F.A.C., and Order 13247, Docket No.
830377-EU, a Qualifying Facility must maintain a 70% capacity factor in order to
receive capacity payments. For the purpose of this schedule, the capacity factor
of the Qualifying Facility shall be defined as: the total kilowatt-hours of
energy delivered to the utility during the preceding 12 months, divided by the
product of: (1) the maximum kilowatt capacity contractually committed for
delivery to the Company by the Qualifying Facility during the preceding 12
months; and (2) the sum of the total hours during the preceding 12 months less
those hours during which the Company was unable to accept energy and capacity
deliveries from the Qualifying Facility. The Company shall be relieved of its
obligation under FPSC Rule 25-17.82 F.A.C. to purchase electricity from a
Qualifying Facility when purchases result in higher costs to the Company than
without such purchases, and where service to the Company's other customers may
be impaired by such purchases. The Company shall notify the Qualifying
Facilities as soon as possible or practical, and the FPSC of the problems
leading to the need for such relief.
During the first 12 months in which the 70% capacity factor performance criteria
is imposed, the Qualifying Facility's capacity factor shall be calculated by
dividing the sum of the kilowatt hours delivered to the Company by the
Qualifying Facility for the number of months since the performance criteria
became applicable by the product of: (1) the number of hours in the months which
have transpired and in which deliveries were accepted by the Company; and (2)
the maximum kilowatt capacity contractually committed by the Qualifying
Facility. This calculation shall be performed each month until enough months
have transpired to calculate a true 12 month rolling average capacity factor.
SURETY BOND REQUIREMENTS
FPSC Rule 25-17.83(3)(c), F.A.C., requires that when early capacity payments are
elected, the Qualifying Facility must provide a surety bond or equivalent
assurance of repayment of early capacity payments in the event the Qualifying
Facility is unable to meet the terms and conditions of its contract. Depending
on the nature of the Qualifying Facility's operation, financial health and
solvency, and its ability to meet the terms and conditions of the Company's
"Standard Offer Contract" one of the following may constitute an equivalent
assurance of repayment:
(1) Surety bond;
(2) Escrow;
(3) Irrevocable letter of credit;
(4) Unsecured promise by a municipal, county, or state government to
repay early company payments in the event of default in conjunction
with a legally binding commitment from such government allowing the
utility to levy a surcharge on either the electric bills of the
government's electricity consuming facilities or the constituent
electric customers of such government to assure that early capacity
payments are repaid;
(Continued on Page No. 4)
Page 4 of 4
RATE SCHEDULE COG-2
APPENDIX A
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
(Continued from Page No. 3)
(5) Unsecured promise by a privately owned Qualifying Facility to repay
early capacity payments in the event of default in conjunction with
a legally binding commitment from the owner(s) of the Qualifying
Facility, parent company, and/or subsidiary companies allowing the
utility to levy a surcharge on the electric bills of the owner(s),
parent company, and/or subsidiary companies located in Florida to
assure that early capacity payments are repaid; or
(6) Other guarantee acceptable to the Company.
The Company will cooperate with each Qualifying Facility applying for early
capacity payments to determine the exact form of an "equivalent assurance of
repayment" to be required based on the particular aspects of the Qualifying
Facility. The Company will endeavor to accommodate an equivalent assurance of
repayment which is in the best interests of both the Qualifying Facility and the
Company's ratepayers.
Page 1 of 1
RATE SCHEDULE COG-2
APPENDIX B
STANDARD OFFER CONTRACT RATE FOR PURCHASE OF FIRM CAPACITY AND ENERGY
FROM QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES
(QUALIFYING FACILITIES)
NORMAL PAYMENT OPTION PARAMETERS
Where, for a one year deferral:
Value
VACm = utility's value of avoided capacity, in dollars per 18.58
kilowatt per month, during month m;
C = a constant risk multiplier for the purpose of the utility's
0.8 standard contract offer;
K = present value of carrying charge for one dollar of 1.75616
investment over L years with carrying charges assumed to be
paid at the end of each year;
In = total direct and indirect cost, in dollars per kilowatt 2044
including AFUDC but excluding CWIP, of the statewide avoided
unit with an in-service date of year n;
Dn = total first year's fixed and variable operating and 66.27
maintenance expense, less fuel and in dollars per kilowatt per
year, of the statewide avoided unit deflated to the beginning
of the year n by io;
lp = annual escalation rate associated with the plant cost of 5.4%
the statewide avoided unit;
io = annual escalation rate associated with the operation and 5.4%
maintenance expense of the statewide avoided unit;
r = annual discount rate, defined as the utility's incremental
10.50% after tax cost capital;
l = expected life of the statewide avoided unit; 31
n = year for which the statewide avoided unit is deferred 1992
starting with its original anticipated in-service date and
ending with the termination of the contract for the purchase
of firm energy and capacity;
EARLY PAYMENT OPTION PARAMETERS
Am = monthly avoided capital cost component of capacity payments
4.87 to be made to the Qualifying Facility starting as early
as seven years prior to the anticipated in-service date of the
statewide avoided unit, in dollars per kilowatt per month;
ip = annual escalation rate associated with the plant cost of 5.4%
the statewide avoided unit;
n = year for which early capacity payments to a Qualifying 1985
Facility are made;
F = the cumulative present value of the avoided capital cost
699.1% component of capacity payments which would have been
made had capacity payments commenced with the anticipated
in-service date of the statewide avoided unit and continued
for a period of 10 years;
r = annual discount rate, defined as the utility's incremental
10.5% after tax cost capital;
t = the term, in years, of the contract for the purchase of 17
firm capacity commencing prior to the in-service date of the
statewide avoided unit.
