AGREEMENT FOR PURCHASE OF POWER WITH NORRIS PUBLIC POWER DISTRICT
Exhibit 10.12
CUSTOMER LOCATION: 06817500
THIS AGREEMENT made and entered into this 20 day of March, 2006, by and
between ▇▇▇▇▇▇ Public Power District, a public corporation and political subdivision of the State
of Nebraska, hereinafter called the “District”, and
E-ENERGY ▇▇▇▇▇
Address: ▇▇▇ ▇▇▇▇, ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
hereinafter called the “Customer”.
WITNESSETH: The District agrees to sell and to deliver to the Customer, and the Customer agrees to
purchase and receive from the District, all of the electric power and energy which the Customer may
need at a mutually agreed point on the Customer’s premises located in the Center of
Section 17, Township 6 North, Range 8 East, of the 6th Principal Meridian
in the, Gage County, Nebraska upon the following terms and conditions:
1. SERVICE CHARACTERISTICS
Service hereunder shall be alternating current, 3 phase, sixty cycles, 277/480
volts and in a capacity of approximately 10,000 kVA.
2. PAYMENT
a. During the construction phase, the Customer shall pay the District for service hereunder
at the rates and upon the terms and conditions set forth in Schedule 6 attached to and made
a part of this agreement. After testing and upon start-up of the ethanol plant, the Customer
shall pay the District for service at the rates and upon the terms and conditions set forth in
Schedule 15 attached to and made a part of this agreement. The conversion to Schedule
15 will occur based on a mutual understanding between the Customer and the District to insure
the Customer is placed on the best available rate based on the Customer’s load profile. Not
withstanding any provision of Schedule 15; however, and irrespective of the Customer’s
requirements, the Customer shall pay the District not less than $30,000.00 per month for
service or for having service available hereunder, commencing with the first full billing period.
b. The initial billing period shall start when Customer begins using electric power and
energy, or thirty (30) days after the District notifies the Customer in writing that service is
available hereunder, whichever shall occur first.
c. Bills for service hereunder shall be paid or mailed to the area offices or District office
in Beatrice, Nebraska.
d. The Customer agrees that if, at any time, the rate under which the District purchases
electric energy at wholesale is modified, the District may make a corresponding modification in the
rate for service hereunder.
e. This contract is subject to the requirements of Section 70-655, R.R.S., 1943, requiring
the District to fix, establish and collect adequate rates and charges which shall be fair,
reasonable, nondiscriminatory, and so adjusted from time to time in conformity with the Nebraska
State Law.
3. SECURITY REQUIREMENTS
As per the attached projection sheet, your estimated highest monthly ▇▇▇▇ will be $136,000.
To secure this monthly credit amount, the Customer agrees to provide one of the following within
six months of the plant start-up:
o
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The Customer shall agree to provide a consumer deposit equal to the estimated highest monthly ▇▇▇▇ to be held in the District’s Consumer Deposit Fund. The deposit will accrue interest at the District approved rate adjusted annually on January 1st based on the U.S. Government’s five-year Treasury note rate. Interest will be credited to the customer’s ▇▇▇▇ annually. The deposit will be applied to the final billing and any remaining balance will be returned to the customer. | |
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The Customer shall provide a Letter of Credit from the customer’s bank equal to the estimated highest monthly ▇▇▇▇. |
In the event that future monthly bills exceed the estimated highest monthly ▇▇▇▇ used in
calculating the initial deposit or Letter of Credit by 20% or more, the District may require the
customer to supplement the initial deposit or increase the Letter of Credit by the amount of the
increased ▇▇▇▇.
4. CONTRIBUTION IN AID OF CONSTRUCTION
The Customer shall make a contribution in aid of construction in the amount of $0.00 due to
the investment necessary to make service available. Such payment to be made before construction
begins.
5. CONTINUITY OF SERVICE
The District shall use reasonable diligence to provide a constant and uninterrupted supply of
electric power and energy; but if such supply shall fail or become defective through an act of God,
or the public enemy, or by accident, strikes, labor troubles or by action of the elements, or
inability to secure right-of-way, or other permits needed, or for any other necessary cause, the
District shall be under no duty to give notice to the Customer prior to such failure or
interruption and shall not be liable therefore.
6. TERM
The Agreement shall become effective on the date first above written and shall remain in effect
five (5) years following the state of the initial billing period and thereafter until terminated by
either party giving to the other six (6) months notice in writing.
7. SUCCESSION
This Agreement shall be binding upon and inure to the benefit of the successors, legal
representatives and assigns of the respective parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly
authorized representatives all as of the day and year first above written.
CUSTOMER
|
▇▇▇▇▇▇ PUBLIC POWER DISTRICT | |
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
|
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ | |
| ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ | ||
| Assistant General Manager | ||
President |
||
* Title or Officer |
| * | If other than President, Vice President, Partner or Owner, a power of attorney must accompany contract. |
| ▇▇▇▇▇▇ PUBLIC POWER DISTRICT | 1 of 2 |
SCHEDULE 6
GENERAL SERVICE
Availability
Available for commercial, industrial, and farm service, for all uses including lighting,
heating, and power, within the District’s service area, where the customer’s peak demand does not
exceed an average of 250 kW for the four summer months and does not exceed 400 kW for any single
winter month.
Type of Service
Single-phase or three-phase, 60 cycles at available secondary voltages.
| Monthly Rate | Summer | Winter | ||||||
Customer Charge |
$ | 15.50 | $ | 15.50 | ||||
Energy Charge, per kWh |
||||||||
First 1000 kWh |
$ | .0935 | $ | .0790 | ||||
All additional kWh |
.0705 | .0545 | ||||||
Fuel and Production Cost Adjustment
A fuel and production cost adjustment may be applied to all energy used in an amount per kWh
equal to the increase or decrease in the District’s cost due to the most recent fuel and production
cost adjustment from the District’s power supplier plus an adjustment for system energy losses
based on the previous calendar year’s experience.
Minimum Charge
The minimum monthly charge shall be the highest one of the following charges determined for
the customer in question.
| 1. | The minimum specified in the contract of service | ||
| 2. | A charge of $1.40 per kVA of installed transformer capacity |
Late Charge
If payment is not received by the due date as indicated on the ▇▇▇▇, then 5% will be added to
the ▇▇▇▇ as a late charge.
Summer and Winter Seasons
The summer rates will apply to customer bills rendered between June 15th and
October 15th. The winter rates will apply to the remaining months of the year.
Municipal Agreement Charge
Where the District has an agreement to pay the municipality a percentage of the customer’s
retail revenue, such percentage will be added to each customer’s ▇▇▇▇ before application of a fuel
and production cost adjustment.
In Lieu of Tax Charge
If a customer resides within the corporate limits of an incorporated town or village, the
customer will be charged an additional 5% of the customer’s monthly charge plus or minus any fuel
and production cost adjustment, since the District is required to remit this amount to the County
in which the customer resides.
| ▇▇▇▇▇▇ PPD | ||
| SCHEDULE 6 | 2 of 2 |
Service Regulations
The District’s Service Regulations form a part of this Schedule.
| Approved: Board of Directors, 12-22-2004 | Effective: January 1, 2005 |
| ▇▇▇▇▇▇ PUBLIC POWER DISTRICT | 1 of 2 |
SCHEDULE 15
LARGE POWER — BETWEEN 2,500 — 7,500 kW
Availability
Available for commercial and industrial service greater than 2500 kVA but less than 7,500 kVA
required transformer capacity, for all uses including lighting, heating, and power within the
District’s service area.
Type of Service
Three-phase, 60 cycles, at available secondary voltages, or at the option of the District,
available primary voltages.
| Monthly Rate | Summer | Winter | ||||||
Demand Charge, per kW of billing demand |
$ | 12.50 | $ | 9.15 | ||||
Energy Charge, per kWh |
||||||||
First 200 kWh per kW billing demand |
$ | .0250 | $ | .0250 | ||||
Over 200 kWh per kW billing demand |
.0210 | .0210 | ||||||
Fuel and Production Cost Adjustment
A fuel and production cost adjustment may be applied to all energy used in an amount per kWh
equal to the increase or decrease in the District’s cost due to the most recent fuel and production
cost adjustment from the District’s power supplier plus an adjustment for system energy losses
based on the previous calendar year’s experience.
Minimum Charge
The minimum monthly charge shall be the highest one of the following charges as determined for
the customer in question.
| 1. | The minimum charge specified in the contract for service | ||
| 2. | A charge of $1.40 per kVA of installed transformer capacity |
Summer and Winter Seasons
The summer rates will apply to customer bills rendered between June 15th and
October 15th. The winter rates will apply to the remaining months of the year.
Municipal Agreement Charge
Where the District has an agreement to pay a municipality a percentage of the customer’s
retail revenue, such percentage will be added to each customer’s ▇▇▇▇ before application of a fuel
and production cost adjustment.
In Lieu of Tax Charge
If a customer resides within the corporate limits of an incorporated town or village, the
customer will be charged an additional 5% of the customer’s monthly charge plus or minus any fuel
and production cost adjustment, since the District is required to remit this amount to the County
in which the customer resides.
| ▇▇▇▇▇▇ PPD | 2 of 2 | |
| SCHEDULE 15 |
Determination of Billing Demand
The billing demand shall be the greater of the following:
| 1. | The maximum kilowatt demand established by the customer for any period of 30 consecutive minutes (or, at the District’s option, 15 or 60 consecutive minutes) during the month for which the ▇▇▇▇ is rendered as indicated or recorded by a demand meter; | ||
| 2. | Winter season — Sixty percent (60%) of the maximum kilowatt demand established by the customer during any of the four previous summer billing months. | ||
| 3. | Summer season — Ninty percent (90%) of the maximum kilowatt demand established by the customer during any of the three previous summer billing months. |
Primary Service Discount
Primary service is defined as receiving power under a single voltage transformation from
34.5kV. The customer shall receive a discount of two and one-half (2.5) percent on demand and
energy charges. Such discount shall be deducted from each customer’s ▇▇▇▇ before application of
the fuel and production cost adjustment and municipal agreement charge.
Power Factor Adjustment
Power factor adjustments will be made in the billing demand, when the power factor, as
determined by test, at the time of the customer’s maximum use is less than 93%. The measured
maximum kW demand will be multiplied by 93 and divided by the customer’s power factor (expressed in
percent) determined at the time of the customer’s maximum use.
Service Regulations
The District’s Service Regulations form a part of this Schedule.
| Approved: Board of Directors, 12-22-2004 | Effective: January 1, 2005 |
▇▇▇▇▇▇ Public Power District
E-Energy ▇▇▇▇▇ Ethanol — 50,000,000 Gallon Plant
Projected Electric Costs for 2006
E-Energy ▇▇▇▇▇ Ethanol — 50,000,000 Gallon Plant
Projected Electric Costs for 2006
| Cents Per kWh | Cents Per kWh | |||||||||||||||||||||||||||||||||||
| Primary Service | Gross | Total | Before | Including | ||||||||||||||||||||||||||||||||
| KWH | KW | KW Charge | Energy Charge | Discount | Revenue Tax | Charge | G.R. Tax | G.R. Tax | ||||||||||||||||||||||||||||
January |
2,943,264 | 4,300 | 39,345.00 | 65,248.54 | (2,614.84 | ) | 5,098.94 | 107,077.64 | $ | 0.0346 | $ | 0.0364 | ||||||||||||||||||||||||
February |
2,658,432 | 4,300 | 39,345.00 | 59,267.07 | (2,465.30 | ) | 4,807.34 | 100,954.11 | $ | 0.0362 | $ | 0.0380 | ||||||||||||||||||||||||
March |
2,943,264 | 4,300 | 39,345.00 | 65,248.54 | (2,614.84 | ) | 5,098.94 | 107,077.64 | $ | 0.0346 | $ | 0.0364 | ||||||||||||||||||||||||
April |
2,848,320 | 4,300 | 39,345.00 | 63,254.72 | (2,564.99 | ) | 5,001.74 | 105,036.46 | $ | 0.0351 | $ | 0.0369 | ||||||||||||||||||||||||
May |
3,013,200 | 4,500 | 41,175.00 | 66,877.20 | (2,701.31 | ) | 5,267.54 | 110,618.44 | $ | 0.0350 | $ | 0.0367 | ||||||||||||||||||||||||
June |
2,876,400 | 4,700 | 58,750.00 | 64,164.40 | (3,072.86 | ) | 5,992.08 | 125,833.62 | $ | 0.0417 | $ | 0.0437 | ||||||||||||||||||||||||
July |
3,162,000 | 5,000 | 62,500.00 | 70,402.00 | (3,322.55 | ) | 6,478.97 | 136,058.42 | $ | 0.0410 | $ | 0.0430 | ||||||||||||||||||||||||
August |
3,162,000 | 5,000 | 62,500.00 | 70,402.00 | (3,322.55 | ) | 6,478.97 | 136,058.42 | $ | 0.0410 | $ | 0.0430 | ||||||||||||||||||||||||
September |
2,876,400 | 4,700 | 58,750.00 | 64,164.40 | (3,072.86 | ) | 5,992.08 | 125,833.62 | $ | 0.0417 | $ | 0.0437 | ||||||||||||||||||||||||
October |
3,013,200 | 4,500 | 41,175.00 | 66,877.20 | (2,701.31 | ) | 5,267.54 | 110,618.44 | $ | 0.0350 | $ | 0.0367 | ||||||||||||||||||||||||
November |
2,848,320 | 4,300 | 39,345.00 | 63,254.72 | (2,564.99 | ) | 5,001.74 | 105,036.46 | $ | 0.0351 | $ | 0.0369 | ||||||||||||||||||||||||
December |
2,943,264 | 4,300 | 39,345.00 | 65,248.54 | (2,614.84 | ) | 5,098.94 | 107,077.64 | $ | 0.0346 | $ | 0.0364 | ||||||||||||||||||||||||
| 35,288,064 | $ | 560,920.00 | 784,409.34 | (33,633.23 | ) | 65,584.81 | 1,377,280.92 | $ | 0.0372 | $ | 0.0390 | |||||||||||||||||||||||||
2006 Rate Schedule 15
KW Charge: |
||||||||
Winter Rate |
$ | 9.15 | ||||||
Summer Rate |
$ | 12.50 | ||||||
Energy Charge: |
||||||||
First 200 kWh per KW |
$ | 0.0250 | ||||||
Over 200 kWh per KW |
$ | 0.0210 | ||||||
Primary Service Discount |
2.5 | % | ||||||
| Gross Revenue Tax (G.R. Tax) | 5% of Total Charges to be Remitted to the County as Manadated by State Statute | |||||||