Contract No. 94-SLC-0276
Exhibit 10.5
CONTRACT
AMONG
PACIFICORP
AND
ARIZONA PUBLIC SERVICE COMPANY
AND
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SALT LAKE CITY AREA INTEGRATED PROJECTS
FOR
FIRM TRANSMISSION SERVICE
APS CONTRACT NO. 48253
Contract No. 94-SLC-0276
CONTRACT
BETWEEN
PACIFICORP
AND
ARIZONA PUBLIC SERVICE COMPANY
AND
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SALT LAKE CITY AREA INTEGRATED PROJECTS
FOR
FIRM TRANSMISSION SERVICE
Table of Contents
-----------------
Section Title Page
- ------- ----- ----
1. PREAMBLE......................................................... 1
2. EXPLANATORY RECITALS............................................. 2
3. AGREEMENT........................................................ 2
4. TERM OF CONTRACT................................................. 2
5. FIRM TRANSMISSION SERVICE........................................ 3
6. CONDITIONS FOR DELIVERY OF TRANSMISSION SERVICE.................. 4
7. PAYMENT FOR TRANSMISSION SERVICE FURNISHED BY WESTERN............ 5
8. SCHEDULING, ACCOUNTING, AND BILLING PROCEDURES................... 6
9. GENERAL POWER CONTRACT PROVISIONS................................ 6
10. EXHIBITS......................................................... 7
11. AUTHORITY TO EXECUTE............................................. 7
SIGNATURE CLAUSE.................................................. 8
EXHIBIT A
RATE SCHEDULE SP-FT4
GENERAL POWER CONTRACT PROVISIONS
Contract No. 94-SLC-0276
CONTRACT
BETWEEN
PACIFICORP
AND
ARIZONA PUBLIC SERVICE COMPANY
AND
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SALT LAKE CITY AREA INTEGRATED PROJECTS
FOR
FIRM TRANSMISSION SERVICE
1. PREAMBLE
--------
This Contract is made this 5th day of May, 1995, pursuant to the Act of
Congress approved June 17, 1902 (32 Stat. 388); the Act of Congress
approved April 11, 1956 (70 Stat. 105); the Act of Congress approved
August 4, 1977, (91 Stat 565); and acts amendatory or supplementary to the
foregoing Acts, between the UNITED STATES OF AMERICA, acting by and
through the Administrator, Western Area Power Administration, an agency of
the Department of Energy, hereinafter called "Western," represented by the
officer executing this Contract, a duly appointed successor, or a duly
authorized representative, hereinafter called the "Contracting Officer,"
and PACIFICORP, a corporation duly organized, created, and existing under
and by the laws of the State of Oregon, hereinafter called "PacifiCorp;"
and ARIZONA PUBLIC SERVICE COMPANY, a corporation duly organized, created,
and existing under and by the laws of the State of Arizona, hereinafter
called "APS;" each sometimes hereinafter individually called "Party," and
sometimes hereinafter collectively called the "Parties."
Contract No. 94-SLC-0276
2. EXPLANATORY RECITALS
--------------------
2.1 The Salt Lake City Area Integrated Projects, hereinafter called
the Integrated Projects, encompass certain facilities for the
production of electric power and energy. Western transmits power
and energy over the Colorado River Storage Project (CRSP)
transmission system and transmission systems of other utilities.
2.2 PacifiCorp and APS are engaged in the electric utility business
and desire firm transmission service over the Colorado River
Storage Project's transmission facilities.
2.3 Electrical system interconnections exist either directly or
through third parties which will allow the transmission of power
and energy among Western, PacifiCorp, and APS.
2.4 Western is willing to furnish firm transmission service to
PacifiCorp and APS under the terms and conditions provided herein.
3. AGREEMENT
---------
The Parties agree to the terms and conditions set forth herein.
4. TERM OF CONTRACT
----------------
4.1 This Contract shall become effective on the date of its execution
and shall remain in effect until midnight of the last day of the
May 2022 billing period. The Parties shall agree in advance on the
date transmission service will be initiated hereunder; however,
payment shall begin the later of: (i) the monthly billing period
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Contract No. 94-SLC-0276
beginning May 1, 1997, or (ii) the date of initial commercial
operation of the Mead-Phoenix transmission project.
4.2 PacifiCorp and APS reserve the right to jointly reduce the
transmission amounts in Exhibit A or to jointly terminate this
Contract with three (3) years prior written notification to
Western.
4.3 This Contract may also be terminated at any time upon the
mutual agreement of the Parties.
5. FIRM TRANSMISSION SERVICE
-------------------------
5.1 Western will accept power and energy scheduled by PacifiCorp and
APS at the point(s) of receipt and voltage(s) set forth in Exhibit
A. Western shall transmit and deliver an equivalent amount of
power and energy, less transmission losses, to the points of
delivery set forth in said Exhibit A. Transmission Service
includes all elements as set forth in Section 2 of the attached
Exhibit A, which are listed as Primary and Secondary Transmission.
Primary and Secondary Transmission shall have equal firmness.
Exhibit A may be revised from time to time as provided for herein.
Any revisions to Exhibit A shall be executed by all Parties.
5.2 PacifiCorp and APS will have reciprocal use to each others unused
firm capacity rights at no additional charge by Western or the
other Party. Western shall have subsequent rights to use, on an
interruptible basis, any portion of the capacity in the CRSP
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Contract No. 94-SLC-0276
transmission facilities reserved for but not being used by
PacifiCorp and/or APS. Western reserves the right to grant the use
of any such capacity to others, on an interruptible basis, during
the times PacifiCorp or APS does not schedule the use of such
capacity.
5.3 When any additional point of receipt or delivery from or to
PacifiCorp or APS is jointly established, as provided in Section
5.1 hereof, PacifiCorp and APS shall provide or cause to be
provided, at no expense to Western, such equipment and devices not
provided by Western as, in the opinion of the Contracting Officer,
may be required because of the addition.
5.4 The transmission system loss factor used herein shall be reviewed
by Western at least once every three years after the effective
date of this Contract and shall be adjusted to more nearly conform
to actual average system losses. PacifiCorp and APS will be given
written notice of any adjustment and the adjusted loss factor
shall be set forth in a revision of Exhibit A.
6. CONDITIONS FOR DELIVERY OF TRANSMISSION SERVICE
-----------------------------------------------
6.1 Firm Transmission Service provided under this Contract shall be
considered to have the same transmission priority as other Western
Firm Transmission Contracts, Western's own firm use of the
transmission system, and firm exchanges
made with other contractors.
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Contract No. 94-SLC-0276
6.2 In outage situations, neither PacifiCorp nor APS will be curtailed
until total firm schedules on the path exceed the transfer
capability. When curtailments are necessary, firm schedules will
be reduced among all entities referenced in 6.1 having firm rights
on the path. Reductions will be made pro-rata based on each
entities firm rights.
6.3 Schedules of power under this Contract through the 345/230 kV
facilities onto PacifiCorp's 230-kV Glen Canyon to Sigurd line
shall not diminish the existing rights of Western under Contract
No. 14-06-400-2436 and associated
scheduling procedures.
7. PAYMENT FOR TRANSMISSION SERVICE FURNISHED BY WESTERN
-----------------------------------------------------
7.1 PacifiCorp and APS each shall pay Western monthly for the
Primary Transmission Service reserved in the respective season as
set forth in Exhibit A hereunder in accordance with rates,
charges, and conditions set forth in Rate Schedule SP-FT4 attached
hereto and made a part hereof or any superseding rate schedule
which is applicable.
7.2 The rate set forth in Rate Schedule SP-FT4 attached hereto may be
adjusted in accordance with Section 11 of the attached General
Power Contract Provisions. Western will give PacifiCorp and APS
notice of each superseding rate schedule along with supporting
data at least thirty (30) days in advance of the effective date of
said superseding rate schedule.
5
Contract No. 94-SLC-0276
8. SCHEDULING, ACCOUNTING, AND BILLING PROCEDURES
----------------------------------------------
8.1 Written Scheduling, Accounting, and Billing Procedures,
hereinafter called Procedures, shall be developed and agreed upon
by the authorized representatives of the Parties by the date of
initial service under this Contract. The Procedures are intended
to implement the terms of this Contract but not to modify or amend
it and are therefore, subordinate to this Contract.
8.2 Transmission service furnished hereunder shall be scheduled in
advance, on an hourly basis, emergencies excepted, and accounted
for on the basis of such advance schedules, all in accordance with
Procedures agreed upon in advance between the authorized
representatives.
8.3 In the event PacifiCorp and APS fail or refuse to execute the
initial Procedures or any revised Procedures which Western
determines to be necessary due to changes in this Contract or the
power system of either Party, Western will temporarily implement
essential procedures, as determined by the Contracting Officer,
until mutually acceptable procedures have been developed and
executed by the authorized representatives.
9. GENERAL POWER CONTRACT PROVISIONS
---------------------------------
The General Power Contract Provisions dated January 3, 1989, attached
hereto, are hereby made a part of this Contract the same as if they had
been expressly set forth herein, Provided, That Provisions 3, 9, 17 to 24,
26, and 27 shall not be applicable hereto, Provided Further that the
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Contract No. 94-SLC-0276
words "rate schedule" shall mean the charge for service provided pursuant
to this Contract, and the words, "electric service" shall mean the service
provided pursuant to this Contract.
10. EXHIBITS
--------
Inasmuch as certain provisions of this Contract may change during the term
hereof, they will be set forth in exhibits from time to time agreed upon
by the Parties. The initial Exhibit A and all future exhibits shall be
attached hereto and made a part hereof, and each shall be in full force
and effect in accordance with its terms unless superseded by a subsequent
exhibit.
11. AUTHORITY TO EXECUTE
- --- --------------------
Each individual signing this Contract certifies that the Party represented
has duly authorized such individual to execute this contract that binds
and obligates the Party.
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Contract No. 94-SLC-0276
IN WITNESS WHEREOF, the Parties have caused this Contract to be executed the
date first written above.
WESTERN AREA POWER ADMINISTRATION
By: Kenneth T. Maxey
--------------------------------------
Area Manager
Western Area Power Administration
P.O. Box 11606
Salt Lake City, UT 84147
(SEAL) PACIFICORP
By: John A. Bohling
--------------------------------------
Lenore M. Martin Senior Vice President
- ---------------------------- --------------------------------------
Attest Title:
700 NE Multnomah
Portland, Oregon 97232
--------------------------------------
Address:
(SEAL) ARIZONA PUBLIC SERVICE COMPANY
By: Jack E. Davis
--------------------------------------
Marie A. Papietro Title: Vice President
- ----------------- --------------------------------------
Attest
Address: P.O. Box 53999
Phoenix, Arizona 85072-3999
--------------------------------------
8
Rate Schedule SP-FT4
(Supersedes Schedule SP-FT3)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
COLORADO RIVER STORAGE PROJECT
ARIZONA, COLORADO, NEW NEXICO, WYOMING, UTAH
SCHEDULE OF RATE FOR FIRM TRANMISSION SERVICE
---------------------------------------------
Effective:
- ---------
Beginning on October 1, 1992, and extending through September 30, 1996.
Available:
- ---------
In the area served by the Colorado River Storage Project (CRSP) transmission
system.
Applicable:
- ----------
To firm transmission service customers for which power and energy are supplied
to the CRSP transmission system at points of interconnection with other systems
and transmitted and delivered, less losses, to points of delivery on the CRSP
transmission system established by contract.
Character and Conditions of Service:
- -----------------------------------
Transmission service for alternating current, 60 hertz, three-phase, delivered
and metered at the voltages and points of delivery established by contract.
Rate:
- ----
Transmission service charge: $22.68 per kilowatt-year for each kilowatt of
transmission service contracted for, payable monthly at the rate of $1.89 per
kilowatt-month.
PacifiCorp
Arizona Public Service Company
Contract No. 94-SLC-0276
Exhibit A
Page 1 of 2
EXHIBIT A
---------
MAXIMUM TRANSMISSION OBLIGATION IN KILOWATTS
1. This Exhibit A made this 5th day of May, 1995, to be effective under and as a
part of Contract No. 94-SLC-0276, dated May 5, 1995, shall become effective
on the date that transmission service is initiated under the Contract, and
shall remain in effect until superseded by another Exhibit A; Provided, That
this revised Exhibit A or any superseding Exhibit A shall be terminated by
the termination of said Contract.
2. FIRM TRANSMISSION SERVICE:
-------------------------
2.1 PacifiCorp
----------
Summer Season Winter Season Losses
Point of Receipt Point of Delivery (May-October) (November-April) (%)
---------------- ----------------- ------------- ---------------- -----
Primary Transmission
Pinnacle Peak 230 kV Glen Canyon 230 kV -0- 250,000 kW 5.5
Secondary Transmission
Pinnacle Peak 230 kV Glen Canyon 230 kV 150,000 kW -0- 5.5
PacifiCorp
Arizona Public Service Company
Contract No. 94-SLC-0276
Exhibit A
Page 2 of 2
2.2 Arizona Public Service Company
------------------------------
Summer Season Winter Season Losses
Point of Receipt Point of Delivery (May-October) (November-April) (%)
---------------- ----------------- ------------- ---------------- -----
Primary Transmission
Glen Canyon 230 kV Pinnacle Peak 230 kV 250,000 kW -0- 5.5
Secondary Transmission
Glen Canyon 230 kV Pinnacle Peak 230 kV -0- 150,000 kW 5.5