Exhibit 10{I)
SIERRA PACIFIC RESOURCES OPERATING
COMPANIES FERC ELECTRIC TARIFF,
FIRST REVISED VOLUME NO. 1
SERVICE AGREEMENT NO. 97
Effective: July 1, 2001
Sierra Pacific Resources Operating Companies
FERC Electric Tariff
First Revised Volume No. 1 Service Agreement No. 97
Open Access Transmission Tariff ----
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Page 1 of 4
Service Agreement For Long-Term
Firm Point-To-Point Transmission Service
1.0 This Service Agreement, dated as of August 1, 2001, is entered into,
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by and between Sierra Pacific Power Company and/or Nevada Power Company as
appropriate ("Transmission Provider"), and Duke Energy Trading and
Marketing, (Duke) ("Transmission Customer").
2.0 The Transmission Customer has been determined by the Transmission Provider
to have a Completed Application for Firm Point-To-Point Transmission
Service under the Tariff.
3.0 The Transmission Customer has provided to the Transmission Provider an
Application deposit in accordance with the provisions of Section 17.3 of
the Tariff.
4.0 Service under this agreement shall commence on the later of (1) the
requested service commencement date, or (2) the date on which construction
of any Direct Assignment Facilities and/or Network Upgrades are completed,
or (3) such other date as it is permitted to become effective by the
Commission. Service under this agreement shall terminate on the actual
termination date or such date as mutually agreed upon by the parties.
5.0 Transmission Customer understands that Transmission Provider is
experiencing high load growth and that Transmission Provider's obligation
to serve Native Load Customers is projected to increase significantly in
the future. For this reason, Transmission Customer understands that there
may not be sufficient transmission capacity for Transmission Provider to
continue to serve Transmission Customer at the expiration of the term of
this Agreement. Accordingly, notwithstanding Section 2.2 of the
Transmission Provider's Tariff, Transmission Customer's right to renew this
Agreement at the expiration of the initial term is subject to a
determination that there is adequate transmission capacity to continue to
serve Transmission Customer in addition to Native Load Customers and other
customers with a higher priority to transmission capacity. If adequate
capacity is not available, Transmission Customer's right to renew this
Agreement is subject to Sections 19-21 of the Transmission Provider's
Tariff and also is subject to Transmission Customer's agreement to pay any
costs of Network Upgrades that Transmission Provider is authorized to
charge to Transmission Customer in accordance with Commission policy.
6.0 The Transmission Provider agrees to provide and the Transmission Customer
agrees to take and pay for Firm Point-To-Point Transmission Service in
accordance with the provisions of Part II of the Tariff and this Service
Agreement.
7.0 Any notice or request made to or by either Party regarding this Service
Agreement shall be made to the representative of the other Party as
indicated below.
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Sierra Pacific Resources Operating Companies
FERC Electric Tariff
First Revised Volume No. 1 Service Agreement No.
Open Access Transmission Tariff ----
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Page 2 of 4
8.0 If any event occurs that will materially affect the time for completion of
new facilities or the ability to complete them, Transmission Provider shall
promptly notify the Transmission Customer. A technical meeting between the
Parties shall be held to evaluate the alternatives available. If the
Transmission Provider and the Transmission Customer mutually agree that no
other reasonable alternatives exist and the requested service cannot be
provided out of existing capability under the conditions of Part II of the
Tariff, the obligation to provide the requested Firm Point-To-Point
Transmission Service shall terminate and any deposit made by the
Transmission Customer shall be returned with interest pursuant to
Commission regulations 35.19a(a)(2)(iii). However, the Transmission
Customer shall be responsible for all prudently incurred costs by the
Transmission Provider through the time construction was suspended.
Transmission Provider:
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Executive Director, Transmission Services
Sierra Pacific Power Company
P.O. Box 10100
Reno, Nevada 89520
and/or
Director, Regional Transmission
Nevada Power Company
P.O. Box 230
Las Vegas, NV 89151
Transmission Customer:
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Manger, New Business Development
Duke Energy Trading and Marketing
4 Triad Center
Suite 1000
Salt Lake City, UT 84180
9.0 The Tariff is incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
Transmission Provider:
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By:
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Name Title Date
Transmission Customer:
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By:
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Name Title Date
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Sierra Pacific Resources Operating Companies
FERC Electric Tariff
First Revised Volume No. 1 Service Agreement No.
Open Access Transmission Tariff ----
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Page 3 of 4
Specifications For Long-Term Firm Point-To-Point
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Transmission Service
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1.0 Term of Transaction: 5 Year(s)
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Start Date: 07-31-03
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Termination Date: 07-30-08
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2.0 Description of capacity and energy to be transmitted by Transmission
Provider including the electric Control Area in which the transaction
originates.
600 MW from Harry Allen 500 kV Substation in Nevada Power Company's Control
Area to Mead 230 kV Substation using the Contract Path Harry Allen 500 kV -
Mead 500 kV - Mead 230 kV.
3.0 Point of Receipt Delivering Party
Harry Allen 500 kV Substation Duke Energy Trading and Marketing
4.0 Point of Delivery Receiving Party
Mead 230 kV Substation Duke Energy Trading and Marketing
Nevada Power will propose the addition of a Mead 500/230 kV transformer
such that this contract path would allow for deliveries to Mead 230 kV.
Nevada Power will work with the appropriate third party utilities to
accomplish the interconnection. Any firm service that is offered by Nevada
Power to Mead 230 kV using this contract path is contingent upon the
successful completion of the transformer installation.
5.0 Maximum amount of capacity and energy to be transmitted (Reserved
Capacity): 600 MW
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6.0 Designation of party(ies) subject to reciprocal service obligation: None
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7.0 Name(s) of any Intervening Systems providing transmission service: None
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Sierra Pacific Resources Operating Companies
FERC Electric Tariff
First Revised Volume No. 1 Service Agreement No.
Open Access Transmission Tariff ----
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Page 4 of 4
8.0 Service under this Agreement may be subject to some combination of the
charges detailed below. (The appropriate charges for individual
transactions will be determined in accordance with the terms and conditions
of the Tariff.)
8.1 Transmission Charge: $1.21/kW-mo.
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8.2 System Impact and/or Facilities Study Charge(s): Pending finalization,
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$30,000 deposit in place. Duke will be responsible for the final
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actual costs.
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8.3 Direct Assignment Facilities Charge: None under this TSA. However,
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Direct Assignment Facilities will be required to provide the
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associated interconnection and are defined in the Interconnection &
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Operation Agreement.
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8.4 Ancillary Services Charges: As negotiated in the future or as defined
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in Interconnection and Operation Agreement.
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8.5. Power Factor Requirements: As defined in Interconnection and Operation
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Agreement.
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