Resolution No. 6115
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RESOLUTION NO. 6115
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
THE EXECUTION OF A SERVICE AGREEMENT BY
AND BETWEEN THE CITY OF VERNON AND THE
WASHINGTON WATER POWER COMPANY (WWP) UNDER
FERC ELECTRIC TARIFF ORIGINAL VOLUME NO. 4
PROVIDING FOR THE PURCHASE OF CAPACITY
AND/OR ENERGY
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WHEREAS, WWP has available surplus capacity and/or
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energy from time-to-time to sell to utilities within the State
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of California; and
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WHEREAS, the City of Vernon is interested in purchasing
available capacity and/or energy from WWP at prices which are
economic in consideration of all the resources available to
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Vernon; and
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WHEREAS, the City Council of the City of Vernon
approved Resolution No. 5705 on January 23, 1990, which
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authorized the execution of a Service Agreement with WWP for the
purchase of nonfirm energy; and
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WHEREAS, the execution of this Service Agreement under
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FERC Electric Tariff Original Volume No. 4 would permit the City
of Vernon to purchase said available surplus capacity and/or
energy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
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hereinabove are true and correct.
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SECTION 2: The City Council of the City of Vernon
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hereby approves the Service Agreement Under FERC Electric
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Tariff original Volume No.4, a copy of which has been
presented to the City Council concurrently with this resolution
and the City Council hereby orders said Agreement to be received
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and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon
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hereby authorizes the Mayor and the City Clerk to execute said
Agreement for, and on behalf of, the City of Vernon.
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certify to the passage of this resolution and thereupon and
SECTION 4: The City Clerk of the City of Vernon shall
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thereafter the same shall be in full force and effect.
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A~
BRUCE V.
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APPROVED AND ADOPTED this 16th day of June, 1992.
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~/' ./~. -- -L,EClNIS C. ~May~
/H~vH
MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 6115, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly
held on Tuesday, June 16. 1992, and thereafter was duly signed
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by the Mayor of the City of Vernon.
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11 BRUCE V. MALKENHORST, city Clerk
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Original Sheet No. 1
~ 6JJ~
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Service Agreement
THE WASHINGTON WATER POWER COMPANY (WWP)
Under
FERC Electric Tariff Original Volume No.4
1 . PURCHASER:
CITY OF VERNON
2. ADDRESS OF PURCHASER:
4305 Santa Fe Avenue
Vemon,.Califomia 90058
3. SERVICE:
Purchasertequests availability of the following services as described in the applicable
service schedules of WWP's Electric Tariff, Original Volume No.4 dated
November 1, 1991:
Economy Energy A [ )(]
Short-Tenn Firm
Capacity or Energy B [ )(.]
Unit Contingent
Capacity or Energy C [ >( ]
Exchange D [x: ]
Provisional Energy E [0\' ]
Purchaser incurs no obligation by requesting availability of services.
4. APPLICABLE RATES AND CONDITIONS:
The tenns and conditions of the applicable service schedule, together with the
, General Tenns and Conditions of WWP's Electric Tariff, Original Volume No.4.
5 . TERM:
This Service Agreement may be tenninated by either party on seven (7) days'
written notice. The obligation of the parties for full perfonnance of the
terms and conditions of any purchase committed to under one or more of
the service schedules prior to giving notice of tennination shall be preserved.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No.2
6. EFFECTIVE DATE:
This Service Agreement shall supersede service agreements under WWP's Electric
Tanff, Original Volume No.3. This service shall become effective on the later of
the date of acceptance for filing of WWP's.Electric Tariff, Original Volume No.4
or the date of execution by the parties.
The parties hereto have agreed to the foregoing terms and conditions as of the
/0 day of au~, 1992.
y
THE WASHINGTON WATER POWER COMPANY
By: (j~
Title: Vice President. Power Supply
CITY OF VERNON
~y~~~~-n.!t~ ?
-- (LEONIS C. MALBU G r
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Title:
Mayor
A~~ 1/ /d'~
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
D2D~BThARLl'? drney
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 3
SERVICE SCHEDULE A
ECONOMY ENERGY SERVICE
A.l Economy Energy transactions shall mean non-firm energy supplied by. WWP to the
Purchaser.
A.2 Rate(s) for service under this Service Schedule shall be agreed upon by the Purchaser and
WWP at the time the transaction is negotiated. The price shall be an amount equal to
Incrementa.lCost plus up to: $15.60/kW/month; $3.60/kW/week; $.72/kWlday or 30
.:- mills/kWh; or 45 mills/kWh for service of sixteen (16) hours or less per day. The
hourly rate is capped at Incremental Cost plus $. 72/kW/day. The total demand charge
revenues in any consecutive seven-day period shall not exceed the product of the weekly
rate and the highest demand experienced on any day in the seven-day period.
A.3 Incremental Cost as defined in this service schedule shall mean the increase in total
energy production cost incurred or expected to be incurred by providing energy to the
Purchaser. This. cost shall include, if appropriate, fuel cost, variable operation and
maintenance expense, cost of starting and shutdown of units and any other costs that are
directly attributable to the transaction.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No.4
SERVICE SCHEDULE B
SHORT-TERM FIRM CAPACITY/ENERGY
B.1 Short Term Firm Capacity and/or Energy transactions shall mean capacity and/or energy
supplied by WWP'ssystem resources to the Purchaser for a period of up to twelve (12)
months.
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B. 2 Rate(s) for service under this Service Schedule shall be agreed upon by the Purchaser and
WWP at. the time the transaction is negotiated. The price shall be an amount equal to
IncrementalCost plus up to:$15.60/kW/month; $3.60/kW/week; $.72/kW/day or .30
mills/kWh; or 45 mills/kWh for service of sixteen (16) hours or less per day. The
hourly rate is capped at Incremental Cost plus $.72/kW/day. The total demand charge
revenues in any consecutive seven-dayperiod shall not exceed the product of the weekly
rate and the highest demand experienced on any day in the seven..<Jay period.
B. 3 Incremental Cost as defmed in this service schedule shall mean the increase in total
energy production cost incurred or expected to be incurred by providing energy to the
purchaser . This cost shall include, if appropriate, fuel. cost, variable operation and
maintenance expense, . cost of starting and shutdown of units and any other costs that are
directly attributable to the transaction.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 5
SERVICE SCHEDULE C
UNIT CONTINGENT CAPACITY AND/OR ENERGY SERVICE
C.! Unit Contingent Capadty and/or Energy Service shall meancapa,city and/or energy
provided from a specified WWP generating unit, which shall be used to provide to the
Purchaser the amount of capacity and/or energy agreed to under the transaction, subject
to the availability of such generating unit.
C.2 Rate(s) for service under this Service Schedule shall be agreed upon by the Purchaserand
:- WWP at the time the transaction is negotiated. The price shall be an amount at least
equal to Incremental Cost, but not greater than the fully distributed cost of generation of
the unit providing the service and will not exceed the following:
C.2.1 Colstrip Contingent Service.
Colstrip's incremental costs plus up to: $18.72/kW/month; $4.32/kW/week;
$.86/kWday or 36 mills/kWh; or 54 mills/kWh for service of sixteen (16)
hours orless per clay. The hourly rate is capped at wwp's Incremental Cost
plus $.86/kW/day. The total demand charge revenues in any consecutive
seven~day period shall not exceed the product of the . weekly rate and the
highest demand experienced on any day in the seven-day period.
C.2.2 Kettle Falls Contingent Service.
Kettle Falls' incremental costs plus up to: $23.40/kW/month;
$5.40/kW/week; $1.08/kW/day or 45 mills/kWh; or 67 mills/kWh for
service of sixteen (16) hours or less per day. The hourly rate is capped at
WWP's Incremental Cost plus $1.08/kW/day. The total demand charge
revenues in any consecutive seven-day period shall not exceed the product of
the weekly rate and the highest demand experienced on any day in the seven~
day perioQ.
C.2.3 Centtalia Contingent Service.
Centralia's incremental costs plus up to: $7.35/kW/month; $1.70/kW/week;
$.34/kW/dayor 14 mills/kWh; or 21 mills/kWh for service of sixteen (16)
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 6
hours or less per day. The hourly rate is capped at wwp'sIncremental Cost
plus $.34/kW/day. The total demand charge revenues in any consecutive
seven--day period shall not exceed the product of the weekly rate and the
highest demand experienced on any day in the seven--day period.
C.2.4 N.E. Combustion Turbine Contingent Service.
N. E. Combustion Turbine's incremental cost plus up to: $3.64/kW/month;
$.841kW/week; $. 17/kW/day or 7.0 mills/kWh; or 10 mills/kWh for service
of. sixteen (16) hours or less per day. The hourly rate is capped at
Incremental Cost plus . 17/kW / day. The total demand charge revenues in any
consecutive seven-day period shall not exceed the product of the weekly rate
and the highest demand experienced on any day in the seven-day period.
C.3 Incremental Cost as defmed in this service schedule shall mean the increase in total
energy production cost incurred or expected to be incurred by providing energy to the
Purchaser. This cost shall include, if appropriate, fuel cost, variable operation and
maintenance expense, cost of starting and shutdown of units and any other costs that are
directly attributable to the transaction.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No.7
SERVICE SCHEDULE D
EXCHANGE SERVICE
D.l
Exchange Service shall mean the provision of capacity and/or energy supplied by WWP's
system resources to a purchasing utility which the Purchaser agrees to return toWWP
at times and in amounts as mutually agreed.
D.2
Conditions of Service.
The following provisions shall be mutually agreed upon at the time the exchange
transaction is negotiated:
D.2.l
The amount of capacity and energy provided and the amount of capacity and
energy to be returned.
D.2.2
The scheduling provisions of the agreed upon transactions, including hourly
delivery. amounts.
D.2.3
The Final Return Date.
D.3 Exchange ratios shall be mutually agreed between the Purchaser and WWP at the time
the transaction is negotiated, but shall not exceed the ratio of 1.0 to 1.0. Rate(s) for
service under this Service Schedule, in the event the Purchaser fails to complete the
return of capacity and energy by the Final Return Date, shall be an amount equal to
Incremental Cost plus up to 30 mills/kWh.
DA Incremental Cost as defined in this service schedule shall mean the increase in total
energy production cost incurred or expected to be incurred by providing energy to the
Purchaser. This cost shall include, if appropriate, fuel cost, variable operation and
maintenance expense, cost of starting and shutdown of units and any other costs that are
directly attributable to the transaction.
D.S Final Return Rate as defined in this service schedule shall mean the date by which the
Purchaser must have returned to WWP capacity and/or energy provided under this
service schedule.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet .No. 8
SERVICE SCHEDULE E
PROVISIONAL ENERGY SERVICE
E.1
Provisional Energy Service shall mean service from which WWP may require the
subsequent return of part or all of the energy supplied to the Purchaser in response to an
event that was considered improbable.at the time the transaction was negotiated.
E.2
Conditions of Service.
Service under this service schedule is subject to the following conditions:
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E.2.1 The Final Retum Date shall be agreed upon at the time the transaction is
negotiated .
E.2.2 WWP will require the return of energy only to meet commitments as
mutually agreed by the parties at the time the transaction is negotiated.
E.2.3 WWP will notify the Purchaser of the need for the return of energy as soon
as WWP is able to determine such need.
E.2.4 Energy required to be returned shall be purchased by WWP at the same rate
the Purchaser paid WWP for the energy provided under the original
transaction.
E.3 Rate(s) for service under this Service Schedule shall be agreed upon by the Purchaser and
WWP at the time the transaction is negotiated. The price shall be an amount equal to
Incremental Cost plus up to:$15.60/kW/month; $3.60/kW/week; $.72/kW/day or 30
mills/kWh; or 45 mills/kWh for service of sixteen (16) hours or less per day. The
hourly rate is capped at Incremental Cost plus $.72/kW/day. The total demand charge
revenues in any consecutive seven-day period shall not exceed the product of the weekly
rate and highest demand experienced on any day in the seven-day period.
E.4 Incremental Cost as defined in this service schedule shall mean the increase in total
energy production cost incurred or expected to be incurred by providing energy to the
Purchaser. This cost shall include, if appropriate, fuel cost,. variable operation and
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No.9
maintenance expense, cost of starting and shutdown ofumts and any>othercosts that are
directly attributable to the transaction.
E.5 Final Return Date shall mean.the last date on which WWP shall have the right to request
the return of part or all of the energy sold under the service schedule.
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The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 10
FERCEl.,ECTRIC TARIFF
ORIGINAL VOLUME NO.4
GENERAL TERMS AND CONDITIONS
1. AVAILABILITY.
This Electric Tariff applies to the delivery of electric power to an electric utility by
WWP pursuant to a signed Service Agreement f1led. with the Federal. Energy Regulatory
Commission.
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2.
UNCONTROLLABLE FORCES.
No party shall be considered to be in default in performance of any of its obligations
except to make payment as specified when a failure .of performance shall be due to an
uncontrollable force. The term "uncontrollable force" means any cause beyond the
control of the party affected, including but not restricted to failure of or threat of failure
of facilities, flood, drought, earthquake, storm, fire, lightning, epidemic, war,riot, civil
disturbance or disobedience, labordispute, labor or material shortage, sabotage, restraint
by court order or public authority, and action or non-action by or failure to obtain the
necessary authorizations or approvals from any governmental agency or authority which
by exercise of <:Jue diligence such party could not reasonably have been expected to avoid
and which by exercise of due diligence it has been unable to overcome. No party.shall,
however, be relieved of liability for failure of performance if such failure be due to
causes arising. out of its negligence or due to removable or remediable causes which it
fails to remove or remedy within a reasonable time period. Nothing contained herein
shall be construed to require a party to settle any strike or labor dispute in which it may
be involved. Any party rendered unable to fulfill any of its obligations by reason of an
uncontrollable force shall give prompt written notice of such fact to the other party and
shall exercise due diligence to remove such inability within a reasonable time period.
3. \VAIVERS.
Any waiver at any time by any party of its rights with respect to a default under this
Electric Tariff, or any other matter shall not be deemed a waiver with respect to any
subsequent default of the same or any other matter.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 11
4. NOTICFS.
4.1
Any formal notice, demand or request shall be in writing and shall be deemed
properly served, given or made if delivered in person, or sent by either registered
or certified mail,. postage prepaid, or prepaid telegram or telecopy. Any such
notice, demand or request directed to WWP shall be addressed to:
Vice President, Power Supply
The Washington Water Power Company
P. O. Box 3727
Spokane, W A 99220
Any such notice to a purchaser under this Electric Tariff shall be addressed tothe
person and address shown on the Service Agreement.
4.2 The designation of the above persons or the address of any such person, may be
changed at any time by notice given in. the same manner as provided for other
notices.
5. BILLING AND PAYMENT.
5.1 BiUine Date.
Aftercommencement of deliveries, the delivering party shall bill on or before the
tenth (10th) day of each month following the month of service. The receiving
party shall pay each bill on or before the twenty-fifth (25th) day of the month
following the month of service for which the receiving party is being billed. If
the twenty-fifth (25th) day of the month is a holiday or weekend, payment will
be made on the last workday prior to the 25th day of the month.
5.2 Payment Address.
All payments to WWPshall be by electronic funds transfer to:
Seattle First National Bank
(ABA #125??oo24) for credit to
The Washington Water Power Company,
Account No. 13972203
The Washington Water Power Company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 12
5.3 Due Date.
Bills which are not paid in full by the receiving party when due shall thereafter
bear interest at the rate of 11h % per month or at the maximum rate of interest
allowed by law, whichever is less.
6.
APPROV AlS.
This Electric Tariff is subject to valid laws, orders, rules and regulations of duly
constituted authorities having jurisdiction. Nothing contained in this Electric Tariff shall
give FERC jurisdiction. over parties not otherwise subject to such jurisdiction or. be
construed as a grant of jurisdiction over any party by any state or federal agency not
otherwise having jurisdiction. by law.
7.
TRANSFER OF INTEREST. ,
No voluntary transfer of the rights or obligations of any party shall be made withoutthe
written consent and approval of the other parties except to a successor in operation of the
properties of any party. Any successor or assignee of the rights of any party, whether
by voluntary transfer, judicial or foreclosure sale or otherwise, shall be subject to all
these provisions and conditions to the same extent as though such successor or assignee
were the original party, and no assignment or transfer of any rights shall be effective
unless and until the assignee or transferee agrees in writing to assume all of the
obligations of the assignor or transferor and to be bound by all of the provisions and
conditions of this Electric Tariff. The execution of a mortgage or trust deed or a judicial
or foreclosure sale made thereunder shall not be deemed a voluntary transfer within the
meaning of this Section 7.
8. SEVERABILITY.
In the event that any of the terms, covenants or conditions of this Electric Tariff or the
application of any such term, covenant or condition, shall be held invalid as to any
person or circumstance by any court having jurisdiction, all other terms, covenants or
conditions of this Electric Tariff and their application shall not be affected thereby, but
shall remain in force and effect unless a court holds thatthe provisions are not separable
from all other provisions of this Electric Tariff.
The Washington Water Power Company
FERC Electric Tariff
Original Volume No. 4
Original Sheet No. 13
9. NO DEDICATION OF FACILITIES.
Any undertaking by one party to another party under any provision of this Electric Tariff
shall not constitute the dedication of the electric system or any.portion thereof of the
. undertaking party to the public or to the other party, and it is understood and agreed that
any such undertaking undeiany provision by a party shall cease upon the termination of
such party's obligations.
10.
NO RETAIL SERVICE.
Nothing contained herein shall grant any rights to or obligate any party. to provide any
services hereunder directly to or for retail customers of any party.
11.
SCHEDULING.
Unless otherwise agreed, all transactions under this Electric Tariff shall be prescheduled
subject to any conditions agreed to by the schedulers. Each transaction under this tariff
will be specified by the type and conditions of service, the start time, the end time, the
amount, the rate and the point(s) of delivery and receipt. Rates for all transactions will
be set prospectively, at the same time and the other terms and conditions of service are
agreed to by WWP and the Purchaser. No rates, terms or conditions for any transaction
under this tariff can be set retroactively.
12. TRANSMISSION SERVICE.
WWP and the Purchaser shall mutually agreed upon a point of delivery. The Purchaser
under any service schedule of this Electric Tariff shall be responsible for arranging for
transmission services from the point of delivery and shall bear all costs associated with
transmission services from the point of delivery.
13. THIRD PARTY BENEFICIARY.
This Electric Tariff shall not be constru~ to create rights in, or to grant remedies to, any
third party as a beneficiary or of any duty, obligation or undertaking established herein.
.
The Washington Water Power .company
FERC Electric Tariff
Original Volume No.4
Original Sheet No. 14
14.
LIABILITY.
Subject to applicable state and federal law which specifically limits a party's ability to
enter into this Section 14, no party, its directors, members of its governing bodies,
officers or employees, shall be liable to any other party for any loss or damage to
property, loss of earnings or revenues, personal injury, or any other direct, indirect, or
consequential damages or injury which may occur or result from the performance or non-
performance of this Electric Tariff, including any negligence arising hereunder, unless
actions or claims and resulting liability, judgments and costs were caused by or resulted
from an action taken or not taken by a party or parties at the direction of its or their
directors, members of its or their. governing bodies, officers or employees with
management or administrative responsibility affecting its or their performance which is
knowingly or intentionally taken or not taken with conscious indifference to the
consequences thereof or with intent that injury or damage would result or would.probably
result therefrom.
15.
TERM.
The term of any transaction entered into under this Electric Tariff shall not exceed twelve
(12) months from the date the service is initiated.
16. TERMINATION.
WWP shall have the unilateral right to terminate this Electric Tariff at any time by filing
with the Commission a notice of termination.
17. PRIORITY OF SERVICE.
In the event of conditions on WWP's system that require curtailment or interruption of
electric service in order to maintain system reliability, wwp's firm native system load
and long-term firm power supply and transmission service obligations (those having
terms of more than. twelve (12) months) shall have priority over any services being
provided pursuant to this Electric Tariff.
WP\FORMS\CONTRACT.OO2