EXHIBIT 10(E)
SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 96
OPEN ACCESS TRANSMISSION TARIFF
Page 1 of 6
SERVICE AGREEMENT FOR LONG-TERM
FIRM POINT-TO-POINT TRANSMISSION SERVICE
1.0 This Service Agreement, dated as of July 9, 2002, is entered into, by and
between Sierra Pacific Power Company and/or Nevada Power Company as
appropriate ("Transmission Provider"), and Calpine Corporation, (Calpine)
("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 (l) 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 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.
6.0 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.
EXHIBIT 10(E)
SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 96
OPEN ACCESS TRANSMISSION TARIFF
Page 2 of 6
7.0 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:
Director, Regional Transmission
Nevada Power Company
P.O. Box 230
Las Vegas, NV 89151
Transmission Customer:
Calpine Corporation
50 West San Fernando Street
San Jose, CA 95133
8.0 The Tariff is incorporated herein and made a part hereof.
9.0 The Transmission Customer may terminate this agreement prior to the date
specified in Section 1.0 as follows:
9.1 The Transmission Customer has submitted requests for service that
would result in a transmission service request for capacity leading
from the Crystal substation to delivery points in the El Dorado
Valley (the "Second Service Request"). The Transmission Customer
shall have the right to terminate this agreement under this Section
9.0 if the Transmission Provider's processing of the Second Service
Request does not result in a transmission service agreement filed at
FERC no later than October 15, 2002, that has the following
attributes:
9.1.1 Firm point-to-point Transmission service for a 25-year term
for 500 MW from the Crystal substation to delivery points in
the El Dorado Valley, provided at the Transmission Provider's
rolled-in transmission rates.
EXHIBIT 10(E)
SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 96
OPEN ACCESS TRANSMISSION TARIFF
Page 3 of 6
9.1.2 Transmission service to commence no later than January 1,
2005.
9.1.3 The amount of the Transmission Customer's regional required
upgrades resulting from the interconnection of the
Transmission Customer's generation facility to the
Transmission Provider's system has not increased solely as a
consequence of the Second Service Request.
9.1.4 Transmission Provider will accept as security any of the
acceptable forms of security listed in the Settlement
Agreement in Docket Nos. ER01-2754, et al. If any upgrades
necessary for the Second Service Request are made exclusively
for the Second Service Request, Transmission Provider will
permit a ramped-up security arrangement whereby security will
be required only as Transmission Provider makes expenditures
for the upgrades. If necessary upgrades are made for the
Second Service Request and other service requests as a group,
Transmission Provider will permit a ramped-up security
arrangement to the extent practical.
9.2 In the event that a transmission service agreement with the above
attributes is not filed at FERC by October 15, 2002, then the
Transmission Customer shall have thirty days to provide the
Transmission Provider with notice of termination of this agreement.
If notice of termination is not provided within 30 days, then the
Transmission Customer shall no longer have any right to terminate
under this Section 9.0.
9.3 In the event that the Transmission Customer does terminate this
agreement pursuant to this Section 9.0, it shall be responsible for
all nonmitigable damages incurred by the Transmission Provider,
provided that in no event shall the Transmission Customer be
obligated to pay more than $10,000,000 in damages (the "Damages
Cap"). The Transmission Provider shall use its reasonable efforts to
mitigate any damages, including but not limited to, permitting
another credit worthy customer to assume all or part of the
Transmission Customer's rights and obligations or reducing the scope
of the upgrade facilities to the extent it is possible to do so and
still satisfy all other requests for service to be satisfied with
such facilities. The Damages Cap shall not be construed to be a
liquidated damages provision and shall not relieve the Transmission
Provider of its obligation to mitigate its damages or prove the
amount of its claim.
EXHIBIT 10(E)
SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 96
OPEN ACCESS TRANSMISSION TARIFF
Page 4 of 6
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.
Transmission Provider:
By: __________________________ __________________ __________________
Name Title Date
Transmission Customer:
By:___________________________ __________________ __________________
Name Title Date
EXHIBIT 10(E)
SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 96
OPEN ACCESS TRANSMISSION TARIFF
Page 5 of 6
Specifications For Long-Term Firm Point-To-Point
Transmission Service
1.0 Term of Transaction: 25 Year(s)
Start Date: 01-01-05
Termination Date: 12-31-29
2.0 Description of capacity and energy to be transmitted by Transmission
Provider including the electric Control Area in which the transaction
originates.
400 MW from Crystal 500 kV Substation in Nevada Power Company's Control
Area to Mead 230 kV Substation .
3.0 Point of Receipt Delivering Party
CRYSTAL 500 KV SUBSTATION CALPINE CORPORATION
4.0 Point of Delivery Receiving Party
MEAD 230 KV SUBSTATION MARKET
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): 400 MW
6.0 Designation of party(ies) subject to reciprocal service obligation:
None
7.0 Name(s) of any Intervening Systems providing transmission service: None
EXHIBIT 10(E)
SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1 SERVICE AGREEMENT NO. 96
OPEN ACCESS TRANSMISSION TARIFF
Page 6 of 6
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.
8.2 System Impact and/or Facilities Study Charge(s):
Pending finalization, $30,000 deposit in place. Calpine will be
responsible for the final actual costs.
8.3 Direct Assignment Facilities Charge: None under this TSA.
However, Direct Assignment Facilities will be required to provide
the associated interconnection and are defined in the
Interconnection & Operation Agreement.
8.4 Ancillary Services Charges: As negotiated in the future or as
defined in Interconnection and Operation Agreement.
8.5. Power Factor Requirements: As defined in Interconnection and
Operation Agreement.