Resolution No. 6187
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RESOLUTION NO. 6187
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A SERVICE AGREEMENT UNDER FERC ELECTRIC
TARIFF ORIGINAL VOLUME NO. 1 BY AND BETWEEN THE
CITY OF VERNON AND PORTLAND GENERAL ELECTRIC
COMPANY (PORTLAND) FOR THE PURCHASE, EXCHANGE,
OR SALE OF CAPACITY AND/OR ENERGY
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WHEREAS, Portland from time to time, has available
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surplus capacity and/or energy to sell to public entities within
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the State of California; and
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WHEREAS, the City of Vernon.,. E;I!Om ,time to time, has
available surplus capacity and/or energy to sell to public
entities within the State of California; and
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WHEREAS, the City of Vernon i~ interested in purchasing
surplus capacity and/or energy or selling surplus capacity and/or
energy with Portland at competitive market-based prices; and
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WHEREAS, the execution of an agreement would permit the
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City of Vernon and Portland to purchase and sell said surplus
capacity and/or energy.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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CITY OF VERNON AS FOLLOWS:
SECTION 1: That the City Council of the City of Vernon
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does hereby find and determine 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 hereby
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approves the Service Agreement Under FERC Electric Tariff Original
Volume No. 1 by and between the Portland General Electric Company
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and the City of Vernon, a copy of which has been presented to the
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City Council concurrently with this resolution, and the City
Council hereby orders said Agreement to be received and filed by
the City Clerk.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and City Clerk to execute said Agreement for,
and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon 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 1st day of December, 1992.
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ATTEST: / _ / ~
~___- y~~ V?---C
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6187, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
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the Mayor of the City of Vernon.
on Tuesday, December 1, 1992, and thereafter was duly signed by
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BRUCE V.
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(SEAL)
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City Clerk
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SERVICE AGREEMENT
Between
Portland General Electric Company
under
FERC Electric Tariff Original Volume No. 1
with
PURCHASER: CITY OF VERNON
ADDRESS OF PURCHASER: 4305 Santa Fe Avenue
Vernon CA 90058
SERVICE: Nonfirm energy for resale under the
terms and conditions of Portland General
Electric Company's ICP Service Schedule
PGE-l of FERC Volume No. 1 dated
January 1, 1977, effective May 27, 1977.
QUANTITIES: As agreed between Purchaser and Seller.
APPLICABLE RATES
AND CONDITIONS: All nonfirm energy made available under
this Agreement and rcp Service Schedule
PGE-l will be at Rate Nos. 1, 2, 3, 4,
or 5 as agreed, for quantities agreed to.
TERM: This Agreement may be terminated by
either Party on seven days' written
notice.
EFFECTIVE DATE: Upon execution, subject to approval
by the Federal Energy Regulatory
Commission.
Date and executed this i~ /U{day of ,.f)(!,rk(}tJJ!~ , /9C;7.
PORTLAND GENERAL ELECTRIC COMPANY
CITY OF VERNON
By: j?~
B~e~~~
,,~onis C. l'1a]burg, M~..?r
ATTEST: ~,__, //#~-,~'1
Bruce V. Malkenhorst
City Clerk
DSM/iw
T-2080i
Approved as to Form:.
\)~p 1.2/( \SN2.p- t~
David B. Brearley ~
City Attorney
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First Revised Title Page
Canceling Original Title Page
TITLE PAGE
FILING UTILITY
Portland General Electric Company.
UTILITIES RECEIVING SERVICE
Utilities that are parties to the
Intercompany Pool Agreement (Revised) and others.
DESCRIPTION OF SERVICE
Sale of nonfirm energy.
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2080Ll187
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Second Revised Page 1
Canceling First Revised Page 1
ICP SERVICE SCHEDULE PGE-l
Service Schedule of Portland General Electric Company (PGE) for
wholesale nonfirm energy for resale service:
I . Term
This service schedule shall become effective .as of
January 1, 1986 and shall remain in effect until
superseded by action of PGE.
II. Availability
This service schedule applies to deliveries of nonfirm
energy at such time and in such amounts as PGE in its
sole discretion makes available to wholesale customers,
hereafter referred to as Purchaser.
III. Rates
Energy delivered pursuant to this schedule shall be at
the applicable rate set out below and agreed upon by the
parties prior to delivery.
1. Energy from noncontrollable hydroelectric resources.
A rate not in excess of that charged by the
Bonneville Power Administration (BPA) for the
equivalent type of noncontrollable hydroelectric
surplus energy as set forth in the then applicable
wholesale power rate schedules of BPA confirmed and
on file with the Federal Energy Regulatory
Commission. This is a rate currently not in excess
of 22.2 mills per kilowatt-hour.
2. Energy from controllable hydroelectric resources.
PGE's estimated cost per kilowatt-hour of replacing
the controllable hydro energy delivered hereunder.
This rate will be not less than the rate specified in
No. 1 above nor more than the incremental cost of
production of the PGE thermal resource utilized for
replacement purposes, plus an amount not to exceed
36.95 mills per kilowatt-hour.
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Second Revised Page 2
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3. Energy from thermal resources.
Incremental costs of production as determined by PGE,
plus an amount up to 36.95 mills per kilowatt-hour.
The 36.95 mills per kilowatt-hour is the current
weighted fixed cost of the following five PGE thermal
plants; namely, Trojan, Boardman, Centralia,
Colstrip, and Beaver, one or more of which will be
utilized for the delivery of the energy.
4. Energy from power purchased by PGE.
The total cost per kilowatt-hour of such purchase,
all costs associated with transmission losses and
transmission wheeling, plus an amount not to exceed
1 mill per kilowatt-hour.
5. Share savings.
A rate which equally distribut~s between the parties
the total savings between the Purchaser's alternate
decremental cost and PGE's incremental cost of
producing and delivering the energy. The incremental
cost used by PGE will be a base rate determined by
one of the preceding Paragraphs 1, 2, 3, or 4. The
base rate for the Purchaser will be thedecremental
cost of energy to be replaced on the Purchaser's
system. The rate per kilowatt-hour will be
calculated as the average of PGE's and the
Purchaser's base rates. In no case will this rate be
less than the rate in No. 1 above.
IV. Payment for Enerqy
Payment for energy delivered under this service schedule
shall be made within 15 days of receipt of billing which
shall normally be within 15 days of the end of the month
during which the transaction occurred.
V. Transmission Arranqements
Unless otherwise agreed, arrangements for transmitting or
,wheeling power from PGE's system to the Purchaser's
system shall be the Purchaser's responsibility and the
Purchaser shall bear all costs and expenses associated
herewith, including transmission losses.
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