Resolution No. 6233
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RESOLUTION NO. 6233
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A LETTER AGREEMENT, CONTRACT NO. DE-MS79-
93BP94015, PROVIDING FOR A SEASONAL EXCHANGE OF
CAPACITY AND ASSOCIATED ENERGY WITH BONNEVILLE
POWER ADMINISTRATION ("BPA")
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WHEREAS, the City of Vernon operates a diesel generation
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station to produce electricity to serve its constituents; and
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WHEREAS, the diesel generation station periodically
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requires maintenance; and
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WHEREAS, BPA desires to sell or exchange capacity and
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associated energy to Vernon to enable Vernon to perform
maintenance on the diesel generation plant during the months of
May and June of 1993; and
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WHEREAS, the City of Vernon may return energy to BPA
during the months of November and December of 1993 in payment for
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said capacity and associated energy.
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NOW, THEREFORE, 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 find and determine that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Letter Agreement, Contract No. DE-MS79-93BP94015, a
copy of which has been presented to the city Council concurrently
with this resolution, and the City Council hereby orders said
Letter Agreement to be received and filed by the City Clerk.
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SECTION 3: The City council of the City of Vernon hereby
authorizes the Mayor and City Clerk to execute said Letter
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Agreement for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
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certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 6th day of April, 1993.
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BRUCE V.
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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
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6233, 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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on Tuesday, April 6. 1993, and thereafter was duly signed by the
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Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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(SEAL)
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Department of Energy
Bonneville Power Administration
P.O. Box 491
Vancouver, Washington 98666-0491
April 6, 1993
. PSC
In reply refer to:
Contract No. DE-MS79-93BP94015
Mr. Jorge Somoano
City of V ernon
Power and, Light Department
4305 Santa Fe Avenue
Vernon, CA 90058
Dear ,Mr. Somoano:
The purpose of this letter agreement (Agreement) is to establish the terms and conditions
whereby the City of Vernon (Vernon) and the Bonneville Power Administration (BPA) will
enter into a seasonal exchange (herein collectively referred to as "Parties" and individually
as "Party").
1. Term
The term of this Agr~ement is from 0001 hours on May 1, 1993, and it shall terminate
at2400 hours on December 31, 1993. All obligations shall remain in effect until
satisfied except as provided in Section 7 of this Agreement.
2. Point of Delivery
The Point of Delivery (POD) for Vernon to receive firm energy and for BPA to receive
returned energy shall be the Nevada Oregon Border (NOB) or other PODs as
mutu;:tilyagreed.
3. Supplv of Capacity and Associated Ener~
BPA will make 21 megawatts (MW) of capacity available and Vernon will take a
minimum of5,880 megawatthours (MWh) in May and 6,468 MWh in June. rfVernon
is required to reduce the amount, per Section 5 ofthis Agreement, thenthe minimum
take shall be reduced by the amount, interrupted under Section 5. The capacity
availability and these minimum monthly energy amou.nts are based on BPA's delivery
of21 MW per hour, 14 hours per day, Monday through Friday per week, except
holidays. '
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4. Return of Energy
Energy scheduled for return to BPA by Vernon shall be subject to the following:
a. Vernon will return the amount of energy delivered under Section 3, during the
November 1 through December 31, 1993, period.
b. All return energy shall be delivered at the NOB.
c. Unless otherwise mutually agreed by the Parties, the maximum rate of return
on any hour shall be 30MW.
d. BPA may defe;r receiving energy,returns from Vernon ifBPA experience~
minimum load conditions. Deliveries reduced under this paragraph shall be
rescheduled at times as agreed by the Parties.
e. BPA may,at its option, require Vernon to elect to either purchase or defer an
amount of energy equal to Vernon's prescheduled retu;rn. energy. deliveries during
hours when BPA is marketing nonfirm energy at the standard nonflrm energy
rate on thosesamehours, and the standard nonfirm energy rate is 20 mills per
kilowatthour or less. Such purchases shall be made at the time of preschedule at
the nonfrrm rate. If BP A chose to defer the energy, deliveries of such energy
shall be. rescheduled at times and rates as agreed to by the Parties.
f. If by December 31, 1993, Vernon has been unable to deliver all return energy,
which Ve:rnon is obligated to return under this Agreement, for reasons beyond
Vernon's control or BPA has been unable to receive energy for reasons beyond
BPA's control, then Vernon shall begin deliveries at 2400 hours
December 31, 1993, of21 MW on each hour during Vemon's off-peak. hours only
until the balance of returned energy to be delivered is zero.
g. All returns will be prescheduled pursuant to Section 6 of this Agreement.
5. Interruption Ri~hts
a. BPA's obligation to make available capacity and associated energy provided for
in Section 3 is a firm obligation, contingent only upon uncontrollable forces and
upon BPA's ability to first serve its own firm customer load after fully
committing all of its then available resources.
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b. The Parties agree to exercise reasonable diligence in maintaining their portions
of the transmission system required to enable schedules under this Agreement.
This may include the need to take facilities out of service in order to perform
necessary maintenance consistent with prudent utility practice. TheParties
recognize that schedules ,under this Agreement may have to be reduced during
such maintenance outages. Furthermore, emergency conditions on the system. of
either party . or on the system of a third party which in interconnected with the
parties could also preclude or inhibit transactions under this Agreement.
c. In the event of either an emergency outage or a necessary maintenance outage
which requires schedule curtailments, the Parties agree that transactions under
this Agreement can, be curtailed according to the contract provisions and
accepted utility practices. The Parties shall make all reasonable effort to work to
minimize outage durations and to schedule the outages at mutually agreeable
times. In the event it becomes necessary for BPA to curtail servicet()Vernon,
BPA shall use its best efforts to notify Vernon as far in advance of the
curtailment as possible.
6. Scheduling
a. During the months of May 1 through June 30, 1993, for every normal workday
observed by both Vernon and BP A, Vernon shall provide BPA an hourly schedule
for the next day or days of the energy to be delivered.
b. During the months of November 1 through December 31, 1993, for every normal
workday observed by both Vernon.and BP A, Vernon shall provide BPA an hourly
schedule for the next day or days of the energy to be returned.
c. Schedules shall be submitted by 0930 hours on each workday. Changes to
scheduled deliveries and/or energy returns under this Agreement may be made
only by mutual consent of both Parties,and both Parties endeavor to keep such
changes to a minimum over the term of this Agreement.
7. Nullification
a. Vernon may terminate this Agreement prior to the effective date if Southern
California Edison does not approve this resource as a Special Condition 12
resource in order for Vernon to receive capacity credit.
b. Vernon may also terminate this Agreement prior to the effective date if Vernon
believes the DC Line transmission service is not available or sufficiently reliable.
c. To terminate this Agreement, Vernon must provide written notice to the
Director, Division of Power Supply, prior to April 19, 1993; however, BPA may
extend the above date to April 30, 1993.
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If the above accurately reflects your understanding of our agreement, please indicate your
approval by signing three originals of this Agreement and returning two originals to BPA
The remaining original is for your files.
Sincerely,
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~4rnrkW. Maher
1. · Director, Division of Power Supply
Accepted:
CITY OF VERNON
BY~.0 '
, · eonis C.MaI urg, . .', .'. ..
Title . ayor "
ATTE;y'/.,/[,5f
b~1/!t~ j/#b~
Bruce V. Malkenhorst, City
APPRO~D AS. TO FO,BM: .~..' .......
\)~ \>/bltdU '
David B. Brearley
City Attorney
Date April 12,.' 1993
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