AMENDMENT TO WHOLESALE POWER AGREEMENT
This Amendment to the Wholesale Power Agreement between Lower Colorado
River Authority ("LCRA") and ▇▇▇▇▇▇▇▇▇ Electric Cooperative, Inc. ("Customer"),
dated June 25, 1977, is entered into as of the 28th day of September, 1987.
In consideration of the mutual promises set forth, LCRA and Customer agree
as follows:
1. PERIOD OF EXTENSION. The term of the Agreement shall be extended to June
25, 2016 and the notice date shall be June 25, 2011.
2. RESOURCE PLANNING TASK FORCE. LCRA shall establish and coordinate a
Resource Planning Task Force, at its option or at the request of a simple
majority of its customers, to assist LCRA with LCRA's preparation of its 10-year
forecast of load and resources under PURA *16. The purpose of the Task Force is
to maximize customer involvement with LCRA's system planning to efficiently and
economically satisfy its customers' needs for reliable electric service.
Customer involvement shall continue notwithstanding changes in applicable law.
2.1 Each customer may designate a representative to nerve on the Task
Force.
2.2 The Task Force shall act as an advisory committee to LCRA in
LCRA's preparation of its ten-year forecast. LCRA shale meet with
the Task Force as necessary to obtain the Task Force's views
before completing its draft forecast. LCRA shall submit its draft
forecast to the Task Force for consideration. Any Task Force
member that believes LCRA's draft forecast does not adequately
reflect its views may furnish comments that LCRA shall submit to
the Board along with its draft forecast.
2.3 LCRA will make available to the Task Force the information and
other resources necessary for the Task Force to discharge its
function.
3. BASELOAD AND PEAKING GENERATION CAPACITY. The Board-approved Resource
Plan, as reflected in LCRA's 10-year forecast and the statewide electrical
energy plan of the Public Utility Commission of Texas, may show that LCRA has
a need for additional base load or peaking generation capacity.
3.1 In the event LCRA decides to seek certification of a baseload
generation unit, a decision Customer opposes, Customer may elect
to fix its electrical requirements from LCRA at a "Contract
Load."
3.1.1 Customer may establish a "Contract Load" by
giving LCRA written notice of Customer's opposition within
90 days after Customer receives written notice of,LCRA's
decision to seek certification.
3.1.2 "Contract Load" is the total rated generation capacity of
LCRA at the time of the notice, multiplied by the ratio of
energy purchased during the preceding 12-month period and
the total energy supply during such period. Once
established, a "Contract Load" may be modified when LCRA
decides to seek certification of succeeding baseload
generation units, provided such modification is determined
to have a system-wide benefit.
3.1.3 Customer may purchase power in excess of the "Contract
Load" from sources other than LCRA, and LCRA will have no
duty to furnish Customer with such power.
3.2 In the event LCRA decides not to seek certification of a peaking
generation unit, a decision Customer opposes, Customer may elect
to install or otherwise acquire "Customer Peaking Capacity".
3.2.1 Customer may acquire "Customer Peaking Capacity" by giving
LCRA written notice at least 24 months prior to the
acquisition date.
3.2.2 "Customer Peaking Capacity" shall not exceed ten percent
(10%) of Customer's annual coincident peak demand during
the preceding 12-month period.
3.3 Except for purchases of power in excess of a "Contract Load" and
"Customer Peaking Capacity", Customer shall not obtain electrical
requirements covered by this Agreement from sources other than
LCRA without first receiving LCRA's written consent, and such
consent shall not be unreasonably withheld.
4. RATE DESIGN TASK FORCE. LCRA shall establish and coordinate a Rate
Design Task Force, at its option or at the request of a simple majority of its
customers, to assist LCRA with LCRA's preparation of its major rate requests
under PURA *43. The purpose of the Task Force is to maximize customer
involvement with LCRA's activities on matters of cost of service, cost
allocation and functionalization, and rate design to. create just and
reasonable rates for its customers. Customer involvement shall continue
notwithstanding changes in applicable law.
4.1 Each customer may designate a representative to serve on the Task
Force.
4.2 The Task Force shall act as an advisory committee to LCRA in
LCRA's preparation of its major rate requests. LCRA shall meet
with the Task Force as necessary to obtain the Task Forces views
before completing its draft rate filing. LCRA shall submit its
draft rate filing to the Task Force for consideration. Any Task
Force member that believes LCRA's draft rate filing does not
adequately reflect its views may furnish comments that LCRA shall
submit to the Board along with its draft rate filing.
4.3 LCRA will make available to the Task Force the information and
other resources necessary for the Task Force to discharge its
function.
4.4 The Board-approved Rate Design Plan shall be reflected in LCRA's
major rate requests. LCRA shall support rates that acknowledge
cost of service as a principal concern, recognizing appropriate
functionalization of investments and allocation of costs, and
promote the efficient use of the system. Rates shall not be
unreasonably preferential, prejudicial or discriminatory, but
shall be sufficient, equitable and consistent in application to
each customer class.
5. FINANCIAL INTEGRITY. LCRA shall request rates projected to recover all
operating expenses, debt service and debt service coverage sufficiently in
excess of the minimum coverage requirements under LCRA's priority bonds to
maintain LCRA's financial integrity. LCRA's capital structure shall include a
reasonable amount of short-term debt to take advantage of changes in the yield
curve.
6. RIGHT OF TERMINATION. If either party shall materially breach any
provision of the Agreement, the non-breaching party shall give written notice to
the breaching party describing the material breach with specificity. The
breaching party shall have thirty days to cure the alleged breach. If the
alleged breach is not cured, the nonbreaching part shall be entitled to
terminate the Agreement effective upon thirty days written notice. This right of
termination shall be cumulative, and-shall not affect any other remedy that the
parties may have in law or equity.
7. DURATION OF AGREEMENT. Except as expressly provided herein or
subsequently agreed to by the parties in a written amendment, all terms and
conditions of the Agreement shall remain
in full force.
Additionally, in consideration of the mutual promises set forth, LCRA and
Customer further agree as follows:
1. Customer now purchases power and energy from West Texas Utilities
Company ("WTU") to serve certain portions of its load. Customer has notified WTU
that it will discontinue purchasing power and energy from WTU no later than June
▇▇, ▇▇▇▇. Upon the termination of purchases from WTU, Customer hereby agrees to
purchase and LCRA agrees to sell and deliver all power and energy required by
Customer at those points of delivery formerly served by WTU.
2. LCRA agrees that the points of delivery for power and energy sold to
Customer pursuant to this Amendment shall be the same as the points of delivery
for Customer's former purchases from WTU.
LOWER COLORADO RIVER AUTHORITY
By:___________________________
ATTEST:
----------------------------
▇▇▇▇▇▇▇▇▇ ELECTRIC COOPERATIVE, INC.
By____________________________
ATTEST:
----------------------------
Effective: June 1, 1999 Revised Sheet No. 1 of 4
EXHIBIT A OF WHOLESALE POWER AGREEMENT DATE JUNE 25, 1974
Revisions of Sheet 1 and Total Maximum Demand Stated in Paragraph 1 of Sheet 2
POINTS OF DELIVERY
▇▇▇▇▇▇▇▇▇ ELECTRIC COOPERATIVE
Distributor
Contract Load
(KW, NCP) Year Estimated Contract Load
Ending (KW, NCP) Years Ending June 25
No. Location Phase Season 6/25/00 2001 2002 2003 2004
1 Brownwood Tap 3 Summer 2250 2413 2531 2657 2789
Winter 2800 3000 3145 3297 3457
2 Camp San Saba 3 Summer 4950 5100 5280 5450 5600
Winter 4500 5500 5600 5650 5700
3 ▇▇▇▇▇▇ 3 Summer 4179 4328 446 4602 4744
Winter 4800 5000 5185 5378 5578
4 Eden 3 Summer 1660 1730 180) 1870 1940
Winter 1700 1760 1810 1860 1910
5 ▇▇▇▇ 3 Summer 638 657 677 699 722
Winter 571 598 626 656 688
6 ▇▇▇▇▇▇ Tap 3 Summer 1060 1080 1110 1140 1170
Winter 782 804 825 850 870
7 Richland Springs 3 Summer 3320 3453 3567 3685 3806
Winter 2580 2660 2740 2830 2910
8 ▇▇▇▇▇ 3 Summer 810 840 866 897 927
Winter 803 834 865 885 908
Summer Totals: 18857 19601 20295 21000 21698
Winter Totals: 18536 20156 20796 21406 22021
Paragraph 1, Page 2 of Exhibit A
LOWER COLORADO RIVER AUTHORITY ▇▇▇▇▇▇▇▇▇ ELECTRIC COOPERATIVE
ATTEST: BY:_________________ ATTEST: BY:___________________________
General Manager
________ DATE: ______ _________ DATE: _________
