Exhibit 10(P)
Amendatory Agreement No. 1
Contract No. DE-MS79-88BP92436
01/26/95
AMENDATORY AGREEMENT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through
BONNEVILLE POWER ADMINISTRATION
and
SIERRA PACIFIC POWER COMPANY
Index to Section
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Section Page
1. Amendment Term ................................................. 2
2. Exhibits ....................................................... 2
3. Provisions Relating to Delivery ................................ 2
4. Planning Information ........................................... 4
5. Scheduling Provisions .......................................... 5
6. Purchase Displacement Cost ..................................... 5
7. Points of Delivery ............................................. 5
8. System and Communication Upgrades .............................. 6
9. Power Factor ................................................... 7
10. FERC Application ............................................... 8
11. Status of Amendment ............................................ 8
12. Multiple Originals ............................................. 8
Exhibits revised, replaced, or added:
Exhibit B (Points of Delivery and Points of Replacement) ...... 2
Exhibit C (Transfer Charges and Loss Factors) ................. 2
Exhibit E (Special Charges) ................................... 2
Exhibit F (Monthly Local Facility Charge for Xxxxxx Area
Upgrades) ...................................... 2
Exhibit G (Transmission Reservation) .......................... 2
Exhibit H (Termination Charge Methodology) .................... 2
Exhibit I (Determination of Local Facility Charge) ............ 2
Exhibit J (Sample Calculations of Annual Charges for
Reduction in Service) .......................... 2
Exhibit K (Sample Calculations of Transmission
Reservation Termination) ....................... 2
This AMENDATORY AGREEMENT, executed April 11, 1995, is entered into by the
UNITED STATES OF AMERICA (Government), Department of Energy, acting by and
through the Bonneville Power Administration (Bonneville), and SIERRA PACIFIC
POWER COMPANY (Company), a corporation of the State of Nevada. Bonneville and
Company are sometimes referred to collectively as "Parties."
WITNESSETH:
WHEREAS the Parties entered into a General Transfer Agreement (GTA),
Contract No. DE-MS79-88BP92436, dated February 25, 1988, which provides, among
other matters, for the transfer of electric power and energy to Xxxxx Rural
Electric Company (Xxxxx). The Company is currently providing up to 45 MW of
transfer service under the GTA. Bonneville delivers this electric power and
energy at the Midpoint Point of Replacement; and
WHEREAS Bonneville has requested the Company provide additional firm
transfer service to Bonneville's Xxxxx load and the Company has expressed a
desire to provide such additional transfer service. However, any additional
transmission service which is provided by the Company is subject to the same
terms and conditions as the existing 45MW of transfer service under the GTA
until the time that system improvement s are completed that result in an
increase of 200 MW or more to the Company's net import capability (System
Improvements); and
WHEREAS the Company is undertaking local system additions and improvements
required to serve the Xxxxxx Area Customer loads, hereinafter referred to as the
Xxxxxx Area Upgrades, and Xxxxx worked with the Company to choose the best plan
of service at the lowest possible cost; and
WHEREAS Bonneville and the Company have agreed to undertake and participate
in joint engineering studies to develop a long-range plan of service designed to
address and resolve service limitations facing the Company's system; and
WHEREAS the Company and Idaho Power Company (Idaho) jointly own the North
Valmy Electric Generation Station (Valmy), located near Battle Mountain, Nevada;
and
WHEREAS Bonneville intends to provide, or arrange to provide, scheduled
delivery of Valmy Generation to Xxxxxx and Xxxxxx Creek Subsidiaries; and
WHEREAS Bonneville and the Company have agreed that the northbound/Valmy
schedules may be interrupted if the 345 kV line between Midpoint and Humboldt
(Line No. 3419) is unavailable;
NOW, THEREFORE, in consideration of the promise and covenants contained
herein, the Parties agree to amend the GTA as follows:
1. AMENDMENT TERM
This Amendment shall be effective after Rural Electrification
Administration approval of Revision No. 1 to Exhibit L of the Power
Sales Contract (Contract No. DEMS79-81BP90571) between Bonneville and
Xxxxx and upon Federal Energy Regulatory Commission (FERC) acceptance
of this Amendment in its entirety and without change ("Amendment
Effective Date") and shall continue in effect concurrent with the term
specified in section 1 of the GTA. If FERC does not accept this
Amendment in its entirety and without change, the Parties shall
determine whether both Parties are willing and able to modify this
Amendment to comply with such FERC order. If the Parties are unable to
reach an acceptable modification within a 30-day period, the Parties
shall exercise best efforts to negotiate alternative arrangements to
meet the same goals.
2. EXHIBITS
Section 3 of the GTA is amended to read as follows:
"Exhibits A through J and any revisions thereto are made a part of this
Agreement. The Company shall be the Transferor and Bonneville's
Customer shall be the Transferee mentioned in Exhibit A."
3. PROVISIONS RELATING TO DELIVERY
Section 4(a) of the GTA is amended to read as follows:
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"(a) Electric power and energy shall be made available by the
Company at all times during the term hereof at the points of
delivery described in Exhibit B (Points of Delivery), in the
amount of Bonneville's Customer's requirements at such points
and the approximate voltages specified therein; provided
however, that Bonneville shall make available, pursuant to
section 5, electric power and energy at the Points of
Replacement specified in Exhibit B; provided, further, that
the Transfer Trip load as defined in section 4(f), may be
interrupted:
(1) in the event of an outage on the
Midpoint-Humboldt-Coyote Creek 345 kV transmission
lines which reduces the Company's import capability,
or
(2) in the event of an outage on the Company's 120 kV
transmission system serving the Xxxxxx area and the
Company is unable to serve both the Company's
customer loads and Bonneville's Customer loads, in
which case interruption of the loads will be shared
equitably between the Parties, or
(3) in the event of Loss of Line No. 3419 and the Company
is unable to provide service to Bonneville's loads
from inside the Company's import boundary.
In no event shall the Company be obligated to import electric
power and energy hereunder at a demand level in excess of the
import demand limit specified in Exhibit B, except where
otherwise agreed. If any of Bonneville's Customer's load is
interrupted, the Company may provide service pursuant to
section 6 of the GTA.
In the event insufficient import capability to the Company's
system exists, Bonneville shall provide power in excess of the
demand limit from inside the Company's import boundary in a
manner specified by the Company, or reduce deliveries
accordingly. The Company will give priority to residential
customers and other critical loads in its use of Valmy
Generation."
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4. PLANNING INFORMATION
Section 4(c) of the GTA is amended to read as follows:
"(c) Bonneville shall submit, within 45 days following acceptance
by FERC for filing (Filing Date), a one-time 10-year forecast
listing peak demands, by Point of Delivery, for each calendar
month of the 10-year period. This forecast shall be
incorporated in Exhibit G. Then, beginning in year 6 of this
Amendment and continuing for the term of this Agreement,
Bonneville shall submit, by July 1 of each year, a 5-year
forecast of peak demands by Points of Delivery, for each
calendar month of the 5-year period. Exhibit G attached hereto
shall be modified each July 1 to incorporate the fifth year of
such 5-year forecast. Such information shall be relied upon by
the Company for system and marketing planning.
In the event Bonneville desires to increase forecast demands
for a month or months for which a forecast peak demand has
been previously established, the Company shall, at its sole
discretion, determine whether such incremental capacity can be
made available to Bonneville. In the event the Company is
unable to serve the incremental demand requested by
Bonneville, it shall provide notice of its inability to do so
within 60 days of Bonneville's increased Exhibit G forecast
submittal. The Company may, but shall not be obligated under
this Agreement to, provide import capacity in excess of the
amounts established pursuant to Exhibit G of this Agreement.
In the event Bonneville desires to reduce the forecast demands
of this Agreement, the Company shall made a reasonable effort
to market the resulting excess capacity reserved for
Bonneville; however, if this excess capacity becomes unused,
Bonneville will be subject to a Charge for Reduction of
Service as shown in Exhibits E and G."
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5. SCHEDULING PROVISIONS
Section 8(a) of the GTA is amended to read as follows:
"(a) Bonneville shall provide, or arrange to have provided, a
separate schedule to the Company for each hour, to the Points
of Replacement or to other mutually agreeable points of
replacement, for the following:
(1) in accordance with section 5 of the GTA, electric
power and energy which the Company will deliver to
Bonneville's Customers at the Points of Delivery; and
(2) in accordance with section 6 of the GTA, any
emergency power requested for such hour by the
Company which Bonneville determined can be made
available."
6. PURCHASE DISPLACEMENT COST
Section 9(h) shall become section 9(e) and the previous sections 9(e),
9(f) and 9(g) of the GTA are deleted in their entirety.
7. POINTS OF DELIVERY
Section 11(b) of the GTA is amended to read as follows:
"(b) If Bonneville desires the Company to provide transfer service
to new points of delivery, add additional capacity at existing
Points of Delivery, or increase demand limits as specified in
Exhibit B to serve Bonneville's load growth or new loads
within Well's service territory, then Bonneville shall make a
written request to the Company as early as possible prior to
the date Bonneville requests such change to be effective.
Bonneville's written request shall include the transfer
capacity requirement and required energization date. The
Company shall respond in writing to Bonneville's request
within 60 days of such request.
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In the event of any disputes regarding the Company's response,
Bonneville retains any rights it otherwise has to resolve the
dispute."
8. SYSTEM AND COMMUNICATION UPGRADES
This section shall be added and designated as section 23 of the GTA and
shall read as follows:
"23. SYSTEM AND COMMUNICATION UPGRADES
(a) The Company intends to provide and operate Xxxxxx
Area Upgrades sufficient to serve approximately 300
MW of load which will accommodate 350 to 385 MVA of
fault duty at the Xxxxxx Creek substation 120 kV bus.
Such equipment shall be in service prior to an
agreed-upon date. The Bonneville share of the Xxxxxx
Area Upgrades shall consist of thirty-three percent
(33%) of the new Xxxx Creek Switch Station, fifty
percent (50%) of the Coyote Creek Substation
expansion, one hundred percent (100%) of the Xxxxxx
Creek Switch Station expansion, and one hundred
percent (100%) of the new Xxxx Creek to Xxxxxx Creek
120 kV transmission line. The Bonneville share of the
Xxxxxx Area Upgrades is estimated as $9,258,000. This
amount shall be adjusted upward or downward in the
event the Company's actual cost of construction,
rounded to the nearest thousand, varies from the
estimate. Bonneville shall be allowed 2 years from
the completion of the construction to perform an
audit of the final construction expenditures and to
dispute payment of expenditures based upon the audit.
The Company shall bear its pro-rata share of any
increase or decrease in the costs resulting from
Bonneville's audit. Bonneville and the Company agree
to act in good faith to resolve any conflicts or
disagreements regarding costs, cost allocations,
overheads, or any other direct assignments affecting
the Local Facility Charge. Bonneville shall pay the
Company for its share of the Xxxxxx Area Upgrades as
specified in Exhibits E and F. Prior to the
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installation of the System Improvements, any transfer
service shall be designated as Transfer Trip Load.
(b) The Company, at Bonneville's expense, shall design
and install selective/redundant transfer trip and
communication equipment to accommodate Bonneville's
request for an increase in transfer services. Such
equipment shall be in service prior to an agreed upon
date of any increase in the transfer services as
provided for in section 23(a). The Company shall
provide to Bonneville an itemized statement of the
expenses incurred for such equipment. Bonneville
shall pay the Company within 30 calendar days
following the Amendment Effective Date, including
related taxes incurred by the Company, if required."
9. POWER FACTOR
This section shall be added and designated as section 25 of the GTA and
shall read as follows:
"25. POWER FACTOR
The on-peak power factor at the Points of Delivery specified
in Exhibit B shall be within ninety-eight percent (98%)
leading or lagging. The power factor for all other hours shall
be within ninety-five percent (95%) leading or lagging.
The on-peak hours shall be defined as follows:
Months On-Peak Hours
October through May 5:01 p.m. to 10:00 p.m. daily
June through September 10:01 a.m. to 10:00 p.m. daily
Bonneville shall provide the Company with access to
Bonneville's meters associated with Bonneville's Points of
Delivery specified in Exhibit B."
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10. FERC APPLICATION
Section 13(d) of the GTA is added and shall read as follows:
"(d) Nothing herein is intended to limit the rights of Bonneville
to make application to FERC for a change in rates under
Section 206 of the Federal Power Act and pursuant to FERC's
Rules and Regulations promulgated thereunder."
11. STATUS OF AMENDMENT
It is expressly understood and agreed by the Parties that all the
terms, conditions, and provisions of this Agreement are made part of
the GTA upon the Amendment Effective Date as though the GTA were
expressly rewritten to incorporate and include the contents of this
Amendment. None of the terms or conditions in this Amendment shall be
considered a precedent for any future agreement between the Parties.
12. MULTIPLE ORIGINALS
Two (2) copies of this Amendment have been executed by the Parties.
Each executed copy shall be deemed an original.
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment.
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
By
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Customer Account Executive
Name
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(Print/Type)
Date
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SIERRA PACIFIC POWER COMPANY
By
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Customer Account Executive
Name
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(Print/Type)
Date
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