Exhibit 10(Q)
Amendatory Agreement No. 2
Contract No. DE-MS79-88BP92436
Effective at 2400 Hours on the
Amendment Effective Date
AMENDATORY AGREEMENT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through
BONNEVILLE POWER ADMINISTRATION
and
SIERRA PACIFIC POWER COMPANY
Index to Sections
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Section Page
1. Amendment Transfer Service....................................... 2
2. Amendment Term................................................... 2
3. Provisions Relating to Delivery.................................. 2
4. Payment for Transfer of Power.................................... 3
5. Status of Amendment.............................................. 3
6. Multiple Originals............................................... 3
Exhibits revised
Exhibit B (Points of Delivery and Points of Replacement)........ 1
Exhibit C (Transfer Charges and Loss Factors)................... 1
Page 1 of 4
This AMENDATORY AGREEMENT, executed July 5, 2000, is entered into by the
UNITED STATES OF AMERICA (Government), Department of Energy, acting by and
through the Bonneville Power Administration (Bonneville), and SIERRA PACIFIC
POWER COMPANY (Company), a corporation of the State of Nevada. Bonneville and
Company are sometimes referred to collectively as "Parties."
WITNESSETH:
WHEREAS, the Parties entered into a General Transfer Agreement (GTA),
Contract No. DE-MS79-88BP92436, dated February 25, 1988 and amended April 11,
1995, which provides, among other matters, for the transfer of electric power
and energy to Wells Rural Electric Company (Wells). The Company is currently
providing up to 65 MW of transfer service under the GTA. Bonneville delivers
this electric power and energy at the Hilltop Point of Replacement (POR); and
WHEREAS, the Company has completed construction on a 345 kilovolt (kV)
transmission line between the Company's North Valley Road Substation in Reno,
Nevada and the Company's Hilltop Substation near Alturas, California
(Reno-Alturas Transmission Project); and
WHEREAS, the Reno-Alturas Transmission Project is interconnected to
Bonneville's Malin-Warner 230 kV Line (Malin-Warner Line); and
WHEREAS, Bonneville has by letter dated August 3, 1998 exercised its option
to transfer its POR from Midpoint to Hilltop;
NOW, THEREFORE, in consideration of the promises and covenants contained
herein, the Parties agree to amend the GTA as follows:
1. AMENDMENT TRANSFER SERVICE
Exhibit B of the GTA is amended pursuant to the following:
"Company shall provide service under the GTA up to a total demand limit of 110
MW, including service delivered pursuant to Contract Number DE-MS79-79BP90000,
to include Maggie Creek, Carlin, McNabb, Jiggs Lee, and Winnemucca. Point of
Replacement shall be at the Hilltop Point of Interconnection.
2. AMENDMENT TERM
Subject to the approval of the Federal Energy Regulatory Commission, this
Amendment shall be effective at 2400 hours on the date of execution (Amendment
Effective Date).
3. PROVISIONS RELATING TO DELIVERY
Section 4(a) of the GTA is amended to read as follows:
Page 2 of 4
"(a) Electric power and energy shall be made available by the Company at all
times during the term hereof at the points of delivery described in Exhibit
B (Points of Delivery), in the amount of Bonneville's Customer requirements
at such points and at the approximate voltages specified therein; provided,
however, that Bonneville shall make available, pursuant to section 5,
electric power and energy at the Points of Replacement specified in Exhibit
B; provided, however, that in the event of an outage on the Company's 120
kV transmission system serving the Carlin area and the company is unable to
serve both the Company's customer loads and Bonneville's Customer loads, in
which case, to the extent possible, interruption of the loads will be
shared equitably between the Parties.
In no event shall the Company be obligated to import electric power and
energy hereunder at a demand level in excess of the import demand limit
specified in Exhibit B, except where otherwise agreed. If any of
Bonneville's Customer load is interrupted, the Company may provide service
pursuant to section 6 of the GTA.
In the event insufficient import capability to the Company's system exists,
Bonneville shall provide power in excess of the demand limit from inside
the Company's import boundary in a manner specified by the Company, or
reduce deliveries accordingly. The Company will give priority to
residential customers and other critical loads in its use of Valmy
Generation."
4. PAYMENT FOR TRANSFER OF POWER
Section 9(a) of the GTA is amended to read as follows:
"(a) For the use of Company services and facilities in transferring electric
power and energy hereunder, Bonneville shall pay the Company each month in
the term hereof an amount equal to the sum for all Points of Delivery of
the greater of (1), (2) or (3) below for each point of delivery; provided
however, that certain Points of Delivery shall be coincidentally combined
as specified in Exhibit B".
Section 9(a)(3) of the GTA is amended to read as follows:
"(3) The product of [1] the Transmission Reservation shown in Exhibit G for
the current month and [2] the Transfer Charge."
5. STATUS OF AMENDMENT
It is expressly understood and agreed by the Parties that all the terms,
conditions, and provisions of this Amendment are made part of the GTA upon the
Amendment Effective Date as though the GTA were expressly rewritten to
incorporate and include the contents of this Amendment. None of the terms or
conditions in this Amendment shall be considered a precedent for any future
agreement between the Parties.
6. MULTIPLE ORIGINALS
Two (2) copies of this Amendment have been executed by the Parties. Each
executed copy shall be deemed an original.
Page 3 of 4
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment.
SIERRA PACIFIC POWER COMPANY UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
By: By:
---------------------------------------- -------------------------------
Name: Gary Porter Name: Patrick McRae
Title: Executive Director of Transmission Title: Manager, Transmission &
Reserve Services - PBL
Date: 6/30/00 Date: 7/5/00
Page 4 of 4
Amendatory Agreement No. 2
Exhibit B, Page 1 of 4
Contract No. DE-MS79-88BP92436
Sierra Pacific Power Company
Effective at 2400 Hours on the
Amendment Effective Date
POINTS OF DELIVERY AND POINTS OF REPLACEMENT
A. Carlin Substation Point of Delivery - Not to exceed 10MW without prior
notification and approval by Company
Bonneville Customer: Wells.
Location: The point near Wells Carlin Substation where the 115 kV
facilities of the Company and Wells are connected.
Voltage: 120kV.
Metering: Coincidentally with the Maggie Creek Point of Delivery, Jiggs Lee
Point of Delivery, and McNabb Point of Delivery, at the following
locations:
(1) Carlin Point of Metering: In Wells' Carlin Substation in the 25kV
circuit over which such electric power and energy flows.
(2) Rain Point of Metering: In the Rain Point of Delivery located on
Wells' Pine Valley 14.4 / 24.9 kV distribution line where Wells
delivers power and energy to the Company's load.
(3) Sprint Point of Metering: In the U.S. Sprint Point of Delivery on
Wells' Pine Valley 14.4 / 24.9 kV distribution line where Wells
delivers power and energy to the Company's load.
Demand Limit: Service to this Point of Delivery shall not exceed 10 MW
without prior notification and approval by the Company. Service to this
Point of Delivery, the Maggie Creek Point of Delivery, the McNabb Point of
Delivery, the Jiggs Lee Point of Delivery, and the demand pursuant to
Contract Number DE-MS-79-79BP90000, shall not exceed 110 MW, plus losses as
specified in Exhibit C.
Adjustment: There shall be an adjustment for losses between the Points of
Metering and the Point of Delivery.
Amount of Power Delivered: The amount of electric energy and reactive power
delivered hereunder and each of the Integrated Demands for any hour during
the term hereof shall be the sum of the following:
Page 1 of 4
Amendatory Agreement No. 2
Exhibit B, Page 2 of 4
Contract No. DE-MS79-88BP92436
Sierra Pacific Power Company
Effective at 2400 Hours on the
Amendment Effective Date
(1) the amount metered at the Carlin Point of Metering, after adjusting
losses as specified in the GTA, less the sum of the amount metered at
the Rain Point of Metering, after adjusting for losses as specified
above, and the U.S. Sprint Point of Metering, after adjusting for
losses as specified above;
(2) the amount metered at the Maggie Creek Point of Metering, as described
below, after adjusting for losses as specified above;
(3) the amount metered at the McNabb Point of Metering, as described
below, after adjusting for losses as specified above;
(4) the amount metered at the Jiggs Lee Point of Metering, as described
below, after adjusting for losses as specified above; and
(5) the amount metered under Contract Number DE-MS79-79BP9000 for the
Harney Winnemucca Point of Metering.
B. Maggie Creek Point of Delivery - Not to exceed 85 MW without prior
notification and approval by SPPCo.
Bonneville Customer: Wells.
Location: The point in the Company's Eightmile Creek-Maggie Creek 120 kV
transmission line where the tap to Wells' Gold Quarry Substation is
connected.
Voltage: 120kV.
Metering: Coincidentally with the Carlin Substation, Jiggs Lee Point of
Delivery, and McNabb Points of Delivery, in Maggie Creek Substation on the
120 kV line to Gold Quarry.
Demand Limit: Service to this Point of Delivery shall not exceed 85 MW
without prior notification and approval by Company. Service to this Point
of Delivery, the Carlin Substation Point of Delivery, the McNabb Point of
Delivery, the Jiggs Lee Point of Delivery, and the demand pursuant to
Contract Number DE-MS79-79BP90000, shall not exceed 110 MW, plus losses as
specified in Exhibit C.
Amount of Power Delivered: The amount of electric power and energy
delivered shall be determined coincidentally with the Carlin Substation
Point of Delivery, the Jiggs Lee Point of Delivery, and the McNabb Point of
Delivery as specified in the GTA, as well as
Page 2 of 4
Amendatory Agreement No. 2
Exhibit B, Page 3 of 4
Contract No. DE-MS79-88BP92436
Sierra Pacific Power Company
Effective at 2400 Hours on the
Amendment Effective Date
the amount metered under Contract Number DE-MS79-79BP9000 for the Harney
Winnemucca Point of Metering.
Adjustment: There shall be an adjustment for losses between the Point of
Metering and the Point of Delivery.
C. McNabb Point of Delivery - Not to exceed 500 kW without prior notification
and approval by the Company.
Bonneville Customer: Wells.
Location: The point in the Company's Tonkin Springs-Cortez Tap 60 kV
transmission line where the tap to Wells' McNabb substation is located.
Voltage: 60 kV.
Metering: Coincidentally with the Carlin Substation, Jiggs Lee Point of
Delivery, and Maggie Creek Points of Delivery, in McNabb Substation on the
14.40 kV side of the 60 / 14.4 kV transformer.
Demand Limit: Service to this Point of Delivery shall not exceed 500 kW
without prior notification and approval by Company. Service to this Point
of Delivery, the Carlin Substation Point of Delivery, the Maggie Creek
Point of Delivery, Jiggs Lee Point of Delivery, and the demand pursuant to
Contract Number DE-MS79-79BP90000, shall not exceed 110 MW, plus losses as
specified in Exhibit C.
Amount of Power Delivered: The amount of electric power and energy
delivered shall be determined coincidentally with the Carlin Substation
Point of Delivery, the Jiggs Lee Point of Delivery, and the Maggie Creek
Point of Delivery as specified in the GTA, as well as the amount metered
under Contract Number DE-MS79-79BP9000 for the Harney Winnemucca Point of
Metering.
Adjustment: There shall be an adjustment for losses between the Point of
Metering and the Point of Delivery.
D. Jiggs Lee Point of Delivery - Not to exceed 2 MW without prior notification
and approval by Company.
Bonneville Customer: Wells.
Page 3 of 4
Amendatory Agreement No. 2
Exhibit B, Page 4 of 4
Contract No. DE-MS79-88BP92436
Sierra Pacific Power Company
Effective at 2400 Hours on the
Amendment Effective Date
Location: The point in the Company's 208 Distribution line where Company
connects to Wells distribution line. The point in the Company's 208
Distribution line where the Service territory starts.
Voltage: 24.9 kV.
Metering: The point in the Company's 208 Distribution line where Company
connects to Wells distribution line where the Service territory starts.
Demand Limit: Service to this Point of Delivery shall not exceed 2MW
without prior notification and approval by Company. Service to this Point
of Delivery, the Carlin Substation Point of Delivery, the Maggie Creek
Point of Delivery, the McNabb Point of Delivery, and the demand pursuant to
Contract No. DE-MS79-79BP90000, shall not exceed 110 MW, plus losses as
specified in Exhibit C.
Amount of Power Delivered: The amount of electric power and energy
delivered shall be determined coincidentally with the Carlin Substation
Point of Delivery and the Maggie Creek Point of Delivery as specified in
the GTA, as well as the amount metered under Contract Number
DE-MS79-79BP9000 for the Harney Winnemucca Point of Metering.
Adjustment: There shall be an adjustment for losses between the Point of
Metering and the Point of Delivery.
E. Points of Replacement
Hilltop Point of Replacement
Location: The 230 kV bus at the Hilltop Substation where the Company
has a right to accept deliveries of power and energy from Bonneville.
Voltage: 230/345 kV.
Valmy Point of Replacement
Location: The 345 kV bus at the Company's Valmy Substation. This Point
of Replacement is to be used for amounts scheduled from Valmy.
Voltage: 345 kV.
Page 4 of 4
Amendatory Agreement No. 2
Exhibit C, Page 1 of 1
Contract No. DE-MS79-88BP92436
Sierra Pacific Power Company
Effective at 2400 Hours on the
Amendment Effective Date
TRANSFER CHARGES AND LOSS FACTORS
Transfer Charge/1/ Transfer Trip Load Loss Factor/2/
Point of Delivery ($/kW-mo) (MW) (%)
Carlin Substation 3.40 0 4.0
Maggie Creek 3.40 0 4.0
McNabb 3.40 0 4.0
Jiggs Lee 3.40 0 4.0
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/1/ Transfer charge at the FERC-approved rate.
/2/ Based on Company average incremental transmission losses, from Schedule RT,
section T-1, Transmission Service, which is reviewed and adjusted as
necessary.
Page 1 of 1
Amendatory Agreement No. 2
Exhibit G, Page 1 of 1
Contract No. DE-MS79-88BP92436
Sierra Pacific Power Company
Effective at 2400 Hours on the
Amendment Effective Date
TRANSMISSION RESERVATION
1. The forecast monthly peak ("Transmission Reservation") given below, in
megawatts, shall be the basis for calculating the minimum monthly
reservation fee, ie: Transmission Reservation* $3.40kW mo.
2. For the period of August 1995 through July 2000, the annual Transmission
Reservation, as applied in Exhibit E, shall be no less than 100 percent of
the forecast monthly peak demand given below.
3. For the period of August 2000 through July 2005, the annual Transmission
Reservation shall be no less than 85 percent of the forecast monthly peak
demand given below, in megawatts.
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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
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Jan 70.61 71.61 71.61 70.0 70.0 70.1 70.2 70.3 70.3 70.4
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Feb 70.51 71.51 71.51 70.1 70.2 70.3 70.3 70.4 70.5 70.6
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Mar 69.80 70.80 70.80 69.3 69.3 69.4 69.4 69.5 69.6 69.6
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Apr 69.29 70.26 70.26 69.2 69.2 69.3 69.3 69.4 69.5 69.5
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May 69.71 70.71 70.71 68.6 68.6 68.7 68.7 68.8 68.8 68.9
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Jun 71.56 72.56 72.56 68.2 68.2 68.3 68.3 68.4 68.4 68.5
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Jul 69.64 69.64 70.64 69.64 68.6 68.7 68.7 68.8 68.8 68.9 69.0
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Aug 69.71 69.71 70.71 69.71 68.3 68.4 68.4 68.5 68.5 68.6 68.6
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Sep 69.29 69.29 70.29 69.29 68.6 68.6 68.7 68.7 68.8 68.9 68.9
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Oct 69.76 69.76 70.76 69.76 68.4 68.4 68.5 68.5 68.6 68.6 68.7
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Nov 70.22 70.22 71.22 70.22 69.5 69.6 69.6 69.7 69.8 69.9 69.9
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Dec 70.48 70.48 71.48 70.48 70.0 70.1 70.1 70.2 70.3 70.4 70.5
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4. Transmission Reservations for years after July 5, 2004, through 2010 shall
be subject to a Charge for Reduction of Service based on 85 percent of the
Forecasted Monthly Peak Demand.
AMENDMENT TERM
Subject to the approval of the Federal Energy Regulatory Commission, this
Amendment shall be effective at 2400 hours on the date of execution
(Amendment Effective Date) with no adjustments for prior periods under the
terms and conditions of Amendment.
Page 1 of 1