PWWT Contract No. 85502/65504/65505/65506/6507
Xxx Xxxx [RE]
Marketing & Trading
[LOGO PINNACLE WEST P.O. Box 53999, M/S 9842
CAPITAL CORPORATION] Phoenix, Arizona 85072-399
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
September 4, 2002
CONFIDENTIAL
To: Southern California Water Company
The following terms and conditions shall govern this agreement on September 3,
0000, xxxxxxx Xxxxx Xxxx, on behalf of Southern California Water Company
("SCWC"), and Xxx Xxxx, on behalf of Pinnacle West Marketing & Trading ("PWMT"),
as follows:
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Purchaser: Pinnacle West Capital Corporation Seller: Southern California Water Company
000 X. 0xx Xxxxxx, M/S 9842 000 X. Xxxxxxxxx Xxxx.
Xxxxxxx, Xxxxxxx 00000 Xxx Xxxxx, XX 00000-0000
Confirm Confirm
Administrator: Xxxxxx Xxxxx Administrator: Xxxxxxx X. Xxxxx
(000) 000-0000 (phone) (000) 000-0000 x 000 (phone)
(000) 000-0000 (fax) (000) 000-0000 (Fax)
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Preschedule: (000) 000-0000 Preschedule: (000) 000-0000
Real Time: (000) 000-0000 Real Time: (000) 000-0000
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Price (S/MWh): $95.00/MWh Quantity (MWh): 547.920 MWh
Quantity (MWh): 15 Magawatts Type of energy: CAISO Firm
Start date: November 1, 2002 End date: December 31, 2006
Day(s) of week: Monday through Sunday Hours: H.E. 0100-2400 Pacific
including NERC holidays Prevailing time ("PPT")
Price (S/MWh): $48.00/MWh Quantity (MWh): 28.992 MWh
Quantity (MWh): 8 Magawatts Type of energy: CAISO Firm
Start date: November 1, 2002 End date: March 31, 2003
Day(s) of week: Monday through Sunday Hours: H.E. 0100-2400 Pacific
including NERC holidays Prevailing time ("PPT")
Price (S/MWh): $36.00/MWh Quantity (MWh): 28.184 MWh
Quantity (MWh): 8 Magawatts Type of energy: CAISO Firm
Start date: November 1, 2003 End date: March 31, 2004
Day(s) of week: Monday through Sunday Hours: H.E. 0100-2400 Pacific
including NERC holidays Prevailing time ("PPT")
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Delivery Point: SP15 (Inter SC Trade)
Transmission Contingencies: None Generation Contingencies: None
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And
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Seller: Pinnacle West Capital Corporation Purchaser: Southern California Water Company
000 X. 0xx Xxxxxx, M/S 9842 000 X. Xxxxxxxxx Xxxx.
Xxxxxxx, Xxxxxxx 00000 Xxx Xxxxx, XX 00000-0000
Confirm Confirm
Administrator: Xxxxxx Xxxxx Administrator: Xxxxxxx X. Xxxxx
(000) 000-0000 (phone) (000) 000-0000 x 000 (phone)
(000) 000-0000 (fax) (000) 000-0000 (Fax)
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Preschedule: (000) 000-0000 Preschedule: (000) 000-0000
Real Time: (000) 000-0000 Real Time: (000) 000-0000
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Price (S/MWh): $74.65/MWh Quantity (MWh): 811.080 MWh
Quantity (MWh): 15 Magawatts Type of energy: CAISO Firm
Start date: November 1, 2002 End date: December 31, 2006
Day(s) of week: Monday through Sunday Hours: H.E. 0100-2400 Pacific
including NERC holidays Prevailing time ("PPT")
Quantity (MWh): 8 Magawatts Type of energy: CAISO Firm
Start date: November 1, 2002 End date: December 31, 2008
Winter Periods Winter Periods
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Period 1 - November 1, 2002 March 31, 2003
Period 2 - November 1, 2003 March 31, 2004
Period 3 - November 1, 2004 March 31, 2005
Period 4 - November 1, 2005 March 31, 2006
Period 5 - November 1, 2006 March 31, 2007
Period 6 - November 1, 2007 March 31, 2008
Period 7 - November 1, 2008 December 31, 2008
Day(s) of week: Monday through Sunday Hours: H.E. 0100-2400 Pacific
including NERC holidays Prevailing time ("PPT")
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Delivery Point: SP15 (Inter SC Trade)
Transmission Contingencies: None Generation Contingencies: None
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PWMT end SCWC enter mm this Confirmation Agreement (hereinafter the
"Confirmation") pursuant to and in accordance with the Western Systems Power
Pool Agreement, effective as of July 27, 1991 and as further amended on
September 1, 2002 (hereinafter the "Agreement"), to which Pinnacle West Capital
Corporation and Southern California Water Company are Parties, Terms used but
not defined herein shall have the meanings set forth in the Agreement.
In consideration of the premises and the agreements contained herein, the
Parties agree as follows:
1. PWMT shall supply firm energy in accordance with Service Schedule C of the
Agreement utilizing available generation or purchased power resources at
the point of delivery. If, in order to maintain firm energy deliveries.
PWMT is required to obtain additional generation or transmission
resources, PWMT shall absorb all additions costs incurred, Including any
charges for generation, transmission or ancillary services.
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2. Section C-3M (c) of Service Schedule C is deleted in its entirety and
replaced with the following:
"where applicable, to meet Seller's or its Affiliate's public
utility or statutory obligations to its customers"
"Affiliate" means, with respect to Seller, any other entity that,
directly or indirectly, through one or more intermediaries,
controls, or is controlled by, or is under common control with such
entity. For this purpose, "control" means the dir3ct or indirect
ownership of fifty percent (50%) or more of the outstanding capital
stock or other equity interests having ordinary voting power.
3. Deliveries will be mad except during interruptions or reductions which are
due to uncontrollable forces as defined in Section 10 of the Agreement, in
which case the obligations of both Parties will be reduced for the
duraiton of the interruption or reduction.
4. Preschedules shall be exchanged for all deliveries of energy, including
indentifications of receiving and generating control areas under this
Confirmation by 11:00 a.m. Pacific prevailing Time on the last work day
observed by both Parties prior to the scheduled date of delivery.
Interchange scheduling shall be conducted in accordance with WSPP
Operating Procedure No. 1.
5. Neither Party shall transfer or assign all or any part of the Agreement or
its rights or obligations hereunder or otherwise dispose of any right,
title or interest herein without the prior written consent of the other
Party, which consent shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, either Party may, without the need for
consent from the other Party, (a) transfer, pledge, or assign the
Agreement as security for any financing, (b) transfer, assign or delegate
the Agreement to any person or entity succeeding to all or substantially
all of the assets of such party;p provided, however, that any such
assignee shall agree to be bound by the terms and conditions hereof and,
provided further, that any transfer, assignment or delegation that does
not require consent hereunder shall not, in any way, release the assignor
from liability for full performance of any obligations (and only those
obligations) arising under the Agreement prior to the effective date of
the transfer, assignment or delegation. To the extent a transfer does not
required consent, the transferring Party shall provide prompt notice to
the other Party of the transfer and the effect date thereof. Any transfer
in violation of this section shall be deemed null and void. "Affiliate"
means, with respect to a party, any other entity that, directly or
indirectly, through one or more intermediaries, controls, or is controlled
by, or is under common control with such entity. For this purpose,
"control" means the direct or indirect ownership of fifty percent (50%) or
more of the outstanding capital stock or other equity interests having
ordinary voting power.
6. "CAISO" Firm Energy" means with respect to a Transaction, a product under
which the Seller shall sell and the PUrchaser shall purchase a quantity of
energy equal to the hourly quantity without Ancillary Services (as defined
in the Tariff) that is or will be scheduled as a schedule coordinator to
schedule coordinator transaction pursuant to the applicable tariff and
protocol provisions of the California Independent System Operator
("CAISO") (as amended from time to time, the "Tariff") for which the only
excuse for failure to deliver or receive is an "Uncontrollable Force". A
CAISO "Schedule Adjustment" (defined as a schedule change implement by the
CAISO that is neither caused by, or within the control of, either Party)
shall not constitute an Uncommtrollable Force.
If the above accurately reflects the terms and conditions of the agreement
between PWMT and SCWC on September 3, 2002, please sign a copy of this
Confirmation and return it via fax to (000) 000-0000 the PWMT Confirm
Administrator listed above.
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Counterparty's failure to notify PWMT of any exception to these terms or, the
failure to return an executed Confirmation within five (5) business days of
receipt of this Confirmation will constitute Counterparty's agreement to the
terms set forth herein.
PINNACLEWEST CAPITAL CORPORATION SOUTHERN CALIFORNIA WATER COMPANY
Signature: /s/ Xxxxxx XxXxxxx Signature: /s/ Xxxx X. Xxxxxxx
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Print Name: Xxxxxx XxXxxxx Print Name: Xxxx X. Xxxxxxx
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Title: Contracts Manager Title: Vice President
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Date: 9/6/02 Date: 9/11/02
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WM&T
Contracts
Department
By: [ILLEGIBLE] 9/5/02
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