THIS AGREEMENT, dated as of May 31, 1996 ("Agreement")
between ORANGE AND ROCKLAND UTILITIES, INC., a New York
corporation, with offices at Xxx Xxxx Xxxx Xxxxx, Xxxxx
Xxxxx, Xxx Xxxx 00000 ("Orange and Rockland") and
CONSOLIDATED EDISON COMPANY OF NEW YORK, INC., a New York
corporation with offices at 0 Xxxxxx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000 ("Con Edison").
W I T N E S S E T H:
WHEREAS, Orange and Rockland and Con Edison entered
into an agreement dated October 10, 1969 ("General
Agreement") for the joint development of the Bowline Point
Generating Station located in Haverstraw, New York
("Bowline"); and
WHEREAS, attached as Appendix B to the General
Agreement is an operating agreement between Orange and
Rockland and Con Edison ("Operating Agreement") which sets
forth the basis and terms upon which Bowline shall be
operated and maintained for the account of the parties; and
WHEREAS, Orange and Rockland and Con Edison wish to
amend the terms of the General Agreement and the Operating
Agreement;
NOW, THEREFORE, in consideration of the mutual
convenants herein contained and for other good and valuable
consideration, the parties agree as follows:
1. The term of this Agreement shall commence at 12:01
a.m. on June 1, 1996 and shall continue until 11:59 p.m. on
May 31, 2001. Applicable provisions of this Agreement shall
continue in effect after termination to the extent necessary
to provide for final xxxxxxxx and adjustments.
2. For each period from June 1 - September 30 during
the term of this Agreement, Bowline Unit #2 will be placed
on 24-hour standby reserve outage. For each period from
October 1 - May during the term of this Agreement,
Bowline Unit #2 will be placed on a seven day
cold standby reserve outage. During an emergency,
Orange and Rockland will make every effort to return Bowline
Unit #2 to service as expeditiously as practical.
3. Bowline Unit #2 will be equipped with lay-up
equipment to protect the unit during each October 1 - May 31
period. This equipment will be disconnected prior to each
June 1 - September 30 period to facilitate the return to
service of the unit upon short notice (i.e., 24 hours). The
estimated cost of this lay-up equipment is $750,000.
4. During the periods that Bowline Unit #2 is on
either seven day cold standby or 24 hour standby reserve
outage, Orange and Rockland shall schedule its percentage
share of the operating capacity and generation from Bowline
Unit #1 on a weekly basis. No later than noon on Thursday
of each week, the Orange and Rockland Chief System Operator
will inform the Con Edison Chief System Operator of Orange
and Rockland's required percentage share of Bowline Unit #1
for the following week. This share shall become effective
at 0001 hours on Sunday of the new week and will continue
until 2359 hours on Saturday of such week. The percentage
shares and timing of the commitment decision may be changed
by mutual agreement of the parties' Chief System Operators.
During the periods that Bowline Unit #2 is on a 24
hour standby reserve outage, Orange and Rockland shall be
entitled to up to two-thirds (nominally 400 MW) of the
operating capacity and generation from Bowline when required
to meet its own system load requirements.
During the periods that Bowline Unit #2 is on a
seven day cold standby reserve outage, Orange and Rockland
shall be entitled to up to two-thirds (nominally 400 MW) of
the operating capacity from Bowline Unit #1. Orange and
Rockland shall be entitled to up to two-thirds (nominally
400 MW) of generation from Bowline Unit #1 when required to
meet its own system load, except Con Edison shall have the
right to two-thirds of the operating capacity and generation
from Bowline Unit #1, for a period up to two (2) equivalent
days per month (but in no event for more than a total of
six separate occasions per month), when Con Edison is
required for its own system load to forestall use of
significantly more expensive energy such as that supplied by
gas turbines.
If Bowline Unit #2 must be operated, all costs and
output of Bowline will be allocated between Con Edison and
Orange and Rockland in accordance with the terms of the
General Agreement.
5. During those periods that Bowline Unit #1 is on a
scheduled unit maintenance outage, Con Edition will make
available to Orange and Rockland, to the extent that it is
not required to meet its own system load, 200 MW of daily
operating capacity and up to 200 MW of energy at a cost
comparable to Bowline oil fired generation. Maintenance
should be scheduled during the October - December or March
- May periods.
6. If during the term of this Agreement, Bowline Unit
#1 experiences a prolonged forced outage for any reason,
Orange and Rockland can place Bowline Unit #2 in operation.
In such event, all costs and output of Bowline Unit #2 will
be allocated between Con Edison and Orange and Rockland in
accordance with the terms of the General Agreement.
7. If the parties are unsuccessful in implementing
changes to the New York Power Pool's Methods and Procedures
regarding capacity testing during the winter capability
period, and Bowline Unit #2 is not available for winter
installed capability, Con Edison will provide Orange and
Rockland with 200 MW of installed capacity at no cost.
Should Con Edison require the capacity from the Bowline Unit
#2 during the winter capability period, Con Edison will pay
the full cost of DMNC testing Bowline Unit #2 during the
winter capability period. These costs shall include the
cost of disconnecting and reconnecting the lay-up equipment.
8. Either party may terminate this Agreement upon six
months written notice.
9. All of the terms of the General Agreement and the
Operating Agreement, except as specifically amended or
modified herein, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written.
ORANGE AND ROCKLAND UTILITIES,
INC.
By_______________________________________
Title______________________________________
CONSOLIDATED EDISON COMPANY
OF NEW YORK, INC.
By_______________________________________
Title______________________________________
agree.jlc
