Resolution No. 4866
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RESOLUTION NO. 4866
A RESOLUTION OF' THE CITY. COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION.. OF AN
INTERCONNECTIONAGREEMEN';t' BY AND BETWEEN. THE
NEVADA POWER COMPANY AND THE CITY OF VERNON
AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT
WHEREAS, the Nevada Power Company is eng(iged in the
generation, distribution and sale of electric power and energy
in the State of Nevada and is interconnected with Southern
California Edison Company; and
WHEREAS, the City of Vernon is an operating public
utility within the State of California and currently purcha~.inq
its full requirements from Southern California Edison COmpany
pUrsuant to a tariff schedule, approved by the Fe<ieral Energy
Regulatory Commission; and
WHEREAS, the Nevada Power Company at various times
sells interruptible energy to other utilities; and
WHEREAS, the Nevada Power Company is willing to enter
into an Interconnection Agreement with the City of Vernon which
would provide for the sale of interruptible energy to the Ci.ty
of Vernon at various ti.mes; and
WHEREAS, the City of Vernon has negotiated and will
execute in the near future an Integration and Transmission
Agreement with the Southern California Edison Company for the
tran~mission and integration of interruptible energy purchased
from the Nevada Power Company; and
WH~REAS, the price of interruptible energy from the
Nevada Power COmpany when its available is less than the cost of
purchasing energy from Southern California Edison Company
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pursuant to the current tariff schedule in force.
NOW, THE~FORE ,BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF VERNON AS FOLLOWS:
SECTION 1: That the City Council of the City of Vernon
does hereby approve the Interconnection Agreement by and between
the Nevada Power Company and the City of Vernon, .a copy>of which
is attached hereto as Exhibit uAlland incorporated herein by
this reference'asthoughfully set forth at length.
SECTION 2: That the Mayor is hereby authori~ed to
execute said Interconnection Agreement for and oh behalf of the
City of Vernon.
SECTION 3: That the City Clerk of the City.of Ve:t:'non
shall certify to the passage of this Resolution and thereupon
and thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this lSth day of December', 1981.
C.
ATTEST:
S/BRUCE V. HALKENHORST
BRUCE V. MALKENHORST, City Clerk
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S1'ATEOF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
I, BRUCE V.MALKENHORST, City Cl~rk of the City of
Verno,n, do hereby certify that the foregoing Reso1u.tion,being
Resolution No. 4866
, was duly adopted by the City Council
of the City of Vernon, and was approved by the Mayor of said
City at a t"egular meeting of the City Council held ... on Tuesday,
December 15
, 19 81.
II
S~RRTTCF, " . MAT .KR1'\1HOR!=:'T'
B UCE V. l-tALKENHORST, CIty Clerk
( SEAL)
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INTERCONNECTION AGREEMENT
betlYeen
NEVADA POWER COMPANY
and
CITY OF VERNON
THIS AGREEMENT entered into as'ofthe
day of
, 1981,
hereinafter referred to as "Interconnection Agreement", between CITY OF VERNON,
hereinafter referred to as "Vernon", and NEVADA POWER COMPANY, hereinafter :a.-eferred
to as ''Nevadafl, each being a party hereto and said entit.ies being. sometimes
referred, to.as "the Parties";
WITNESSETH:
WHEREAS, Nevada is engaged in the generation, distribution and sale of
electric power and energy in the State of Nevada, and is interconnected with
Southern California Edison Company (}!;dison) in southern Nevada; and,
WH.E:REAS., Vernon is or is about to be engaged in the generation, transmission
and sale of electric power and energy in the State of California and has contracted
for transmission service with Edison; and
WHEREAS, the Parties will each maintain generating capacity for use in
their system and believe that exchanges of power and energy between their
respective systems will provide substantial benefits to the regions and custome:a.-s
served by each PCirty, including more efficient uS.e of generating capacities,
more efficient scheduling of new facilities, and general economics gained
through interchange of energy;
NOW, 'l'HEREFORE, it is hereby agreed as follows:
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EXHIBIT. ~A
j -A
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ARTICLE I
PURPOSE
l.l The primary purpose of the parties in entering into this
Agreement is to provide the exchange of capacity and energy between. the
electric systems of the Parties and to establish the terms and conditions
of such exchange which is made possible through interconnection of the systems
of the Parties through the systems of other parties.
ARTICLE II
TERM
2.1 This Agreement shall become effective .as of the date of execution
and shall remain in force for a period of One year from that date or as
terminated upon. thirty (30) days' notice by either party if no service
schedule is presently in effect or under negotiation; and the.reafteron
a year-to-year basis, unless terminated by either party through written notice
given to the other party at least l80 days in advance of the effective termin-
ation date.
ARTICLE III
POINTS OF DELIVERY
3.1 The Point of Delivery for the energy supplied here.under will
be at the 500 Kv transmission system of Edison at the Eldorado Substation
Jlear Las Vegas, Nevada. Vernon will be responsible for transmission arrange-
ments from the Point of Delivery to Vernon's System.
3.2 Other additional points of delivery may be established between
the Parties by the Operating Representatives.
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3.3 The Parties' respective systems are inter.connected through
several third-party systems and as Agreements are entered intobetlYeen
Vernon or Nevada, or both, and any third party for the purpose of provid:f.llg
services under this Agreement, those separate agreements will be attached
hereto and made a pat't hereof as Exhibits.
ARTICLE IV
SERVICE TO BE RENDERED
4.1 Inasmuch as the specific services to be rendered will vary
during the term of this Agreement ,and the terms, arrangementsa.nd rates
applicable ~o such services must necessarily depend upon the conditions
existing from time to time, it is intended that such specific services
and the terms, arrangements and :a.-ates applicable thereto will be set fot'th
in Service Schedules from time to time.formulated betlYeen the Parties. Such
Service Schedules I when executed by the Parties ,will become parts of the
Agreement during the pet'iods fixed, by their respective terms and, allY such
Service Schedule may be modified or terminated in accordance with its terms.
4.2 Service Schedule A, Emergency Assistance, Serv.ice ScheduleB,
}!;conomyEnergy Interchange, and Service Schedule C, Banking of Energy, are
attached hereto and made a part of this Agreement.
4.3 The Parties recognize that from time to time there may be mutual
advantages from the sale or interchange of power upon a basis not provided
for in any Service Schedule then in effect and circum.stances may be such
that arrangements mustibe made promptly in ot'der to realize such advantage.
In such cases, or in cases of em.et'gency or of temporary and unusual operating
conditions, temporat'Yarrangements for transactions may be made by the
Operating Representatives provided, however, that no such at'rangement shall
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.ext,end for more than thirty (30) days unless 1"atified in writiqg by an
officer representing each of the Parties.
ARTICLE V
SETTLEMENTS
5.1 All power transactions hereunder shall be accounted for on the
basis of scheduled hourly quantities. All dispatc~ers involved in the
)
transactionsahall maintain records of hourly load schedules fot' accounting
and operating purposes.
5.2 Except as otherwise provided in a Service Schedule, the acco\,1nt1n,g
period fot' tt'ansactions hereunder shall be one calendar month
5.3 Except as otherwise provided in a Service Schedule, bills for
amo\,Jntspayable for any month shall be due by the 20th day after receipt
of bill. Amounts not paid on or before the due date shall be payabl~with
interest accrued at the rate of one percent (1%) per month from due date to
dateof..payment.
5.4 In case a portion of any bill be in dispute, the undisputed
amount shall be paid when 'due and the remainder, if any, upon determination
of the correct amount, shall be paid promptly after such determination with
interest accrued at the rate of one percent (1%) per month computed from
the original due date.
ARTICLE VI
ADMINISTRATION
6.1 The Pat'ties agree to appoint "Operating Representatives" on the
effective date of this Agreement to secure effective cooperation and. to deal on
a prompt and orderly basis with the various operating and technical pt'oblems
which arise in connection with d~livery of power, reciprocal services and
coordination.
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6.2 The Operating Representatives shall consist of four (4)
representatives, two designated by each party, and each such 'representative
shall beauthorhed on behalf of the party designating him to act, wi.th
t'espect.to those matters herein provided to he responsihilities of the
Operating Representatives. The functions and responsibilities of the
Operating Representatives'shall he:
(a) toe.stablish procedures and standard practices
(consistent with the provisions hereof) for the guidance
of load dispatchers and other operating employees as to
matters affecting interconnected operations of the respective
systems, delivery of power"interchange ,of enet'gy,
reciprocal emergency assistance, and other similar
ope:a.-ating matters;
(b) to establish procedures and practices as to dete:a.-minatiolls
of costs and expenses and energy losses in connection with
the inter-system transactions hereunder;
(c) to establish detailed arrangements for scheduling,
communication and implementation of operating. procedures.
(d) to do such other things as are provided for herein;
provided that the Operating Representatives shall have
no authority to modify any of the provisions of this
Agt'eement.
6.3 The establishment of any procedure or practice and any other
action or determination by the Operating Representatives shall be effective
when signed by at least one designated t'epresentative of each of the Parties.
Each party will notify the other party promptly of the designations of its
Ope!ating Rept'esentatives and of any subsequent changes in such designations.
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ARTICLE VII
OENERAL PROVISIONS
7.1 No party shall be considered to be in default with t.'espect ;to
any obligation under this Agreement if prevented from fulfining such
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obligation by reason of uncontt'ollable forces, the term "uncontrollable
forces". shall mean any cause which is beyond the c()ntrol of the party
affected and which by exercise of due diligence it shall be unable to
overcome. No party shall, however, be relieved of liability .for failure
'of' performance if such failure is due to causes at'ising out .of its own
negligence or to removable orreIlled,iable causes which it fails to remove
or t.'emedy lYith reasonable dispatch. Nothing contained herein shall be
construed to. obligate a pat'ty to forestall or settle a strike against its
wi 11.
7.2 Each party win .defend and indemnify the othet.' party against
liability, loss, costs and expenses on account of injury or damage to persons
or property occasioned on or adjacent to its facilities, unless it be proven
that such injury 01.' damage resulted from the negligence of the other pat'ty;
provided, howeve:a.-, that .each party shall be solely responsible for the payment
of claims to its employees and agents for injut'ies occurring in connection
with their employment' or arising out of any worker's compensation law.
7.3 A waiver at any time by a party of its rights with respect to
a default uJlder this Agreement, or with respect to any other matter arising
in connection. with this Agreement, shall not be deemed a waiver with respect
to any subsequent default or matter. No delay, short of tl1estatutory
period of limitatioI'ls, in asserting or enforcing any right hereundet' shall
be deemed a waiver of such right.
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7.4 Any formal notice, demand, or requef)t provided for iJ:l this
Agreement, or given or made in connection with this Agreement, shall be
deemed to be properly given or made if personally delivered. or telegraphed
or sent by registered mail, postage prepaid, to the person specified;
To or upon Nevada
The Secretary
Nevada Power Company
Post Office Box 230
Las Vegas, Nevada 89151
To or uponVet'non
City of Vernon
c/o Executive Director of Light andJ?ower
4305 Santa Fe Avenue
Vernon,Califot'nia 90058
.A party may at any time, by. written notice, change the designation or the
address of the person so specified. 'l'hispat'agraph does not apply to notices
and requestsofa routine chClracter in connection withdeliveryot' receipt of
powet' or in connection withopet'ation of facilities. Such notices and requestf)
shall be given in such manner as the ,Operating Representatives from time.t;otime
shall arrange.
7.5 This Agreement, including the Service Schedules and tariffs made
a part hereof, shall .at tilll times be subject to such changes or modifications
as shall be ordered from time to tillle by any legally constituted regulatory
body having jurisdiction to require such changes or modifications. Nothing
contained herein shall be construed as affecting in any way the right of any
party furnishing or receiving service und.er this Agreement to unilaterally
make applications to theFed~ral Energy ~egulatory Commission for a change in
rates, charges, classifications or service, or in any rule, regulation or
contract reglating thereto, or. to petitiQnfor investigation of existing rates,
under the Federal Power Act, and put'suant to the Commission's rules and
regulations promulgated thet'eunder.
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7.6 This Agreement, including Set'vice Schedules het'eunder, shall
be binding upon and inure to the benefits of the respective successors and
assigns of the Parties.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their duly authorized officers and theit' corporate seal to be
affixed, as of the day and year fit'st het'ein written.
NEVADA POWER COMPANY
By
~ ~,t~
ATTEST:
Vice President
~'~~~
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CITY OF VERNON
ATTEST:
By
Mayor
City clerk
APPROVED AS TO. FORM:
City Attorney
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INTERCONNECTION AGREEMENT
between
NEVADA POWER COMPANY
and
CI TY OF VERNON
SERVICE SCHEDULE A
EMERGENCY ASSISTANCE
This Service Schedule A is agre~d upon as a pat'tof the Inter-
connection Agreement (Agreement) entet'ed into as of the
day
of
, 1981, between NEVADA POWER COMPANY (Neyada) and
CITY OF VERNON (Vernon).
1. This Service Schedule shall be in effect concurrently with
the Agreement unless mod,ified or superseded by some other Service Schedule
between the Parties.
2. Either party will, upon request of the other party, supply
as emergency assistance such power and energy as the requesting party
may need to protect orrestot'e services to its customers, subject to the
availability of such power and energy, including without limitation the
condition,that such supply will not result in impairment of or serious
jeopardy to the supplier's system, its customers, or its connnitments to
third parties, all as determined by the supplier.
3. The receiving party shall pay the supplying party the sum
of the following Components which shall be determined in accordance with
criteria established by the Operating Representatives:
3.1
Onehundred-fift~en percent (115%) of the incremental
o
cost of fuel us~d to generate ene.rgy required to make
such s.ale;
A (l)
3.2 Incremental operation and maintenance cost
per kilowatt-hour; and
3.3 Estimated cost of making ready, starting up
and shutting down such units started to
furnish emergency service:
provided, that the payment shall not be less than one hundred-seven and
one-half percent (107.5%) of the market price of deliveries to a third
party which the supplying party interrupts to supply emergency assistance
hereunder.
4. In the event this Service.Schedule be terminated pursuant to
Paragt'aph I, the ,obligations> of the Parties with t'espect to payment fot'
energy shall continue'until any payments due for energy be made.
Executed in du.plicate as of the
day of
, 1981.
NEVADA POWER COMPANY
B.y
0~c:tIt
~xec(jfve Vice President
ATTEST:
CITY OF VERNON
ATrEST:
By
Mayor
City Clerk
APPROVED AS TO FORM:
City. Attorney
A (2)
INTERCONNECTION AGREEMENT
between
NEVADA POWER COMPANY
and
C1.TY' OF VERNON
SERVICE SCHEDULE B
ECONOMY ENERGY INTERCHANGE
This Service Schedule B is agreed upon asa part of the Inter-
connection Agreement (Agreement) entered into as of the
day
of
, 1981, between NEVADA POWER COMPANY (Nevada) and
CITY OF VERNON (Vernon).
1. This Service Schedule shall be in effect concurt'ently with
the Agreement unless modified or superseded by some other Service Schedule
between the Parties.
2. Each party will supp~y economy energy "When and if t'equested
by the other party in amounts up to the capacity of its power sources
and transmission interconnections provided that, in the sole judgment
of the supplying party, such economy energy is available and will not
result in impainnentof or jeopardy to service in its own system. Each
party shall be the sole judge as to the conditions under which it is
economical and practicable for it to delivet' economy energy hereunder.
3. Insofar as practicable, hourly schedules for economy energy
transactions shall be ~rranged between the system dispatchers on a
,;
tentative basis at least one day in advance, subject to later modification
if unforseen circumstaucesarise.
B (1)
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4. Settlement with respect to economy energy sales shall be equal
to one-half of the SuIll of cost to the supplying party and the cost avoided
by the t'eceiving party in reducing its generation level or in displacing
other available energy purchases. The cost to supply and cost a.voided shall
reflect incremental fuel cost, transmission losses' and charges over third..
party sYl'items, operation and maintenance costs, start-up costs, cost of
purchased energy, or revenue loss from an alternat.ive sale. Operation and
maintenance costs and start..~p costs will be determined by the Opera.ting
Representatives and maybe reviewed from, time t,o time at the request of
eitherpa1;ty.
5 In the event this Set'viceSchedule be terminated pUt'suant to
Paragraph 1, the obligations of the Parties with respect to payment for
energy shall continue until payments due have been made.
Exe.cuted'in duplicate as of the
day of
, 1981.
NEVADA POWER COMPANY
ATTES T:
ByJ~ c -all,
{, utiv. Vie.. President
CITY , F VERNON
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ATTEST:
By
Mayor
City Clerk
APPROVED AS TO FORM:
City Attorney
B (2)
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INTERCONNECTION AGREEMENT
between
NEVADA POWER COMPANY
and
CITY OF VERNON
SERVICE SCHEDULE C
BANKED ENERGY
nection Agreement (Agreement) entered into a.s of the
day of
This. Service Schedule C is agreed upon as part of , the Intercon-
, 1981,. between NEVADA POWER COMPANY (Nevada) and CITY OF
VERNON (Vernon).
1. This Service Schedule shall be in effect concurrently with the
Agreement unless modified or. superseded, by some other Service. Schedule
between the Parties.
2. For the purpose of achieving efficient utilization of production
capacity, either party may request enet'gy from the other pat'ty and the
other party may, at its sole discretion, deliver such power and energy to
the other party making such request. Either party may also offer energy to
the other party. Such power and energy furnished shall be credited to the
supplier in a Banked Energy Account. A record of Banked Energy shall be
maint,ainedby each party, and no energy delivered by one party to the other
pat'ty shall be deemed to be Banked Energy unless prior arrangement for such
d,eliveryhas been made by the system schedulers or dispatchers of the
Parties hereto.
3. Banked Energy delivered by eit.he:a.- party to the other shall be
retut'ned at the Point of Delivery at times and at"rates of delivery to be
C (1)
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established by the system SChedulers and shall<be returned kilowatt..hour
for kilowatt"hour unless otherwise agreed to by the OperatingRepresent~tiv~s.
4. The Operating Representatives shall determine, pt'io.rtoany
deliveries hereunder, settlement for transmi13sion losses and charges'tpat
may result from energy banking transactions aJld may by mutual agreement
assigna<cost p~r kilowatt..hou:a.-for any enet'gy to be delivered and recorded
in the Banked Energy Account and may by mutual agreement settle suchaccoullt
ot' any portion. thereof by payment between the Parties.
5. It is the intent of the Parties that deliveries sha.llbebalanced
by return of~nergy withinsi~ty(60) days unless established otherwise by
the Opet'ating Rept'esentativ~s. All' balances will be settled to the extent
practicable once a year at adCl.teto be established by the Operating
Rept'~13entatives.
6. In the event this Service Schedule be terminated purstlant to
Paragt'aph 1, theobligCl.tions of the Parties with resp~ct to returning energy
shall continue until such energy is returned.
Executed in duplicate as of the
day of
, 1981.
AT;:~.~U'
ATTEST: ~
NEV ADA POWER COMPANY
(\~~C $!~
- E~Jcutive Vice Pres ident
CIT'i6 VERNON
By
By
Mayor
City Clerk
APPROVED AS TO FORM:
City .Attorney
C (2)
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