Resolution No. 6274
..
1
RESOLUTION NO. 6274
2
3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A LETTER AGREEMENT, CONTRACT NO. DE-MS79-
93BP94071, PROVIDING FOR A SEASONAL EXCHANGE OF
CAPACITY AND ASSOCIATED ENERGY WITH BONNEVILLE
POWER ADMINISTRATION ("BPA")
4
5
6
7
WHEREAS, the City of Vernon desires to purchase or
exchange energy for capacity and associated energy; and
WHEREAS, BPA desires to sell or exchange capacity and
8
9
10
associated energy to Vernon; and
11
12
WHEREAS, the City of Vernon may return energy to BPA
during the month of January 1994 in payment for said capacity and
13
associated energy.
14
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
15
16
17
SECTION 1: That the City Council of the City of Vernon
does hereby find and determine that the recitals contained
18
hereinabove are true and correct.
19
SECTION 2: The City Council of the City of Vernon hereby
20
21
22
23
approves the Letter Agreement, Contract No. DE-MS79-93BP94071, a
copy of which has been presented to the City Council concurrently
with this resolution, and the City Council hereby orders said
24
Letter Agreement to be received and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon hereby
25
26
authorizes the Mayor and City Clerk to execute said Letter
Agreement for, and on behalf of, the City of Vernon.
27
III
III
28
...
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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 15th day of June, 1993.
ATr~ /4~
BRUCE V. MALKENHORST, City Clerk
-2-
..
...
1
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
2
3
4
I, BRUCE V. MALKENHORST, city Clerk of the City of
5
Vernon, do hereby certify that the foregoing Resolution, being
6
Resolution No. 6274, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
7
8
on Tuesday, June 15. 1993, and thereafter was duly signed by the
9
Mayor of the City of Vernon.
ft-~
BRUCE V. MALKENHORST, ity Clerk
10
11
12 (SEAL)
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-3-
.
9j
~
Department of Energy
Bonneville Power Administration
P.O. Box 491
Vancouver, Washington 98666-0491
JUN 1 6 '993
In reply refer to:
PSC
Contract No. DE-MS79-93BP94071
Mr. Jorge Somoano
City of Vernon
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 ~rms and conditions
whereby the City of Vernon (Vernon) and the Bonneville Power Adm;n;l;tration (BPA)
(herein collectively referred to as ''Parties" and individually as "Party"), will enter into a.
seasonal exchange and a capacity sale.
1. ThIm
The term of this Agreement is from 0001 hours on July 1, 1993, and it shall terminate
at 2400 hours on January 31,1994. All obligations shall remain in effect until
satisfied except as provided in Section 9 of this Agreement.
2. Point of Delivery
The Point of Delivery (POD) for Vernon to receive firm capacity and associated energy
and for BPA to receive returned energy shall be the Nevada-Oregon Border (NOB) or
other PODs as mutually agreed
3. Supply of Ca.pacity and Associated Ener2Y
a. During July, BPA will make 21 megawatts (MW) of capacity available. Vernon
shall schedule for delivery a minimum. of 9,374 megawatthours (MWh). If
Vernon is required to reduce the amount, per Section 6 of this Agreement, then
the minimum. take shall be reduced by the amount interrupted under Section 6.
b. During August, BP A will make 12 MW of capacity available, and Vernon may
take up to 12 hours per day and 60 hours per week. There will be no minimum
take in August.
2
4. Return of Ener~
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
January 1 through January 31, 1994. The total amount of energy will be
reduced by the amount of energy returned to BPA pursuant to Section 4b. below.
b. During the months of July through August, by mutual agreement, BPA may
request and Vernon may deliver 2,250 MWh of energy per month.
c. All return energy shall be delivered at the NOB.
d.. Unless otherwise mutually agreed by the Parties, the maximum rate of return
on any hour shall be 35 MW.
e. BPA may defer receiving energy returns from Vernon ifBPA experiences
minimum flow. conditions. Deliveries reduced under this paragraph shall be
rescheduled at times ,as agreed by the Parties.
f. BPA may, at its option, require Vernon to elect to either purchase or defer an
amount of energy equal to Vernon's prescheduled return energy deliveries during
hours when BP A is marketing nonfirm energy at the standard nonfirm energy
rate on those same hours, and the standard nonfirm energy rate is 20 mills per
kilowatthour or less. Such purchases shall be made at the time ofpreschedule at
the nonfirm rate. If Vernon chooses to defer the energy, deliveries of such energy
shall be rescheduled at times and rates as agreed to by the Parties.
g. If by January 31, 1994, Vernon has been unable to deliver all return energy,
which Vernon is obligated to return under this Agreement, for reasons beyond
Vernon's control or BPA has been unable to receive all return energy for reasons
beyond BP A's control, then Vernon shall begin deliveries at 2400 hours
January 31, 1994, of21 MW on each hour during Vernon's off-peak hours only
until the balance of returned energy to be delivered is zero. Vernon's off-peak
hours are defined as the first six and last two hours of the day during
Monday-Saturdays and all hours on Sundays.
h. All returns will be prescheduled pursuant to Section 6 of this Agreement.
5. Aueust C~acity Char~e
For capacity provided in August 1993 Vernon will pay BPA $3.00 per kilowattmonth
times the maximum demand as given in Section 3b.
3
6. InteITl.\ption Riihts
"
a. BP A'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 BP A's ability to first serve its own firm customer load after fully
committing all of its then available resources.
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 COIlSistent with prudent utility practice. The Parties
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 is 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
yninimize outage durations and to schedule the outages at mutually agreeable
times. In the event it becomes necessary for BPAto curtail service to Vernon,
BP A shall use its best efforts to notify Vernon as far in advance of the
curtailment as possible.
7. Schednlini
a. During the months of July 1 through August 31, 1993, for every normal workday
observed by both Vernon and BPA, Vernon shall provide BPA an hourly schedule
for the next day or days of the energy to be delivered.
b. During the months of January 1 through January 31, 1994, for every normal
workday observed by both Vernon and BPA, 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.
~
..
" .;r
4
8. Billine:fPayment
BPA shall render a monthly bill to Vernon pursuant to Section 5. Such power bill
shall reference this contract number and shall be sent to:
City of Vernon
Director of Light and Power Department
4305 Santa Fe Avenue
Vernon, CA 90058
Vernon shall pay BPA by the close of business on the 20th day after the date of the
bill. Bills for amount due BP A of $50,000 or more must be paid by direct wire
transfer. Bills for amount due BPA under $50,000 may be paid by direct wire transfer
or mailed to:
Bonneville Power Administration
P.O. Box 6040
Portland, OR 97228-6040
The procedures to be followed in making direct wire transfer will be provided by the
Office ofFinancia1 Management'and updated as necessary.
Bills not paid in full on or before close of business on the due date shall be subject to a
penalty charge of $25.. In addition, an interest charge ofone..twentieth percent
(0.05 percent) shall be applied each day to the sum of the unpaid amount and the
, penalty charge. This interest charge shall be assessed ona daily basis until such time
as the unpaid amount and penalty charges are paid in full. Other provisions related
to payment of bills specified in the current General Rate Schedule Provisions shall
apply.
9. 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.
'- , , '""-
'", .', . '1',_.
5
c. To terminate this Agreement, Vernon must provide written notice to the
Director, Division of Power Supply, prior to June 20, 1993; however, BPA may
extend the above date to June 30, 1993.
.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,
~
.k Mark W. Maher '
-V - Director, Division of Power Supply
Accepted:
CITY OF VERNON
~
:t1C - MayOr.... . .... ... .. ... ~PR<iVED P.S TO
FORM: '
6 -do?- 9'.3 · \)~ . t>. J' \7 A o~J.p
City Attorry:y I
Date . ~t2:-I, '7">
Date
P.TT~
BY: -
-p~
Title: City Clerk
Date:
~ -d,2 -~3