HomeMy WebLinkAboutresolution.council.045-19 RESOLUTION# 045
(Series of 2019)
A RESOLUTION APPROVING AMENDMENT NUMBER 1 TO THE THIRD REVISED
SUPPLEMENTAL AGREEMENT TO SERVICE SCHEDULE M AND AMENDMENT
NUMBER 2 TO THE THIRD SUPPLEMENTAL AGREEMENT FOR WIND-GENERATED
ENERGY PURCHASES BETWEEN THE CITY OF ASPEN, COLORADO, AND THE
MUNICIPAL ENERGY AGENCY OF NEBRASKA (MEAN), TO SIMPLIFY AND CLARIFY
BILLING AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT
WHEREAS, there has been submitted to the City Council an amendment to the third
revised supplemental agreement between the City of Aspen, Colorado, and MEAN, a copy of
which is annexed hereto and made a part thereof,
WHEREAS, there has been submitted to the City Council an amendment to the third
revised supplemental agreement for wind-generated energy purchases between the City of
Aspen, Colorado, and MEAN, a copy of which is annexed hereto and made a part thereof,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
That the City Council of the City of Aspen hereby approves the amendments to the
agreements between the City of Aspen, Colorado, and MEAN, regarding changes to the Service
Schedule M rates and charges, a copy of which is annexed hereto and incorporated herein, and
does hereby authorize the City Manager of the City of Aspen to execute said contract on behalf
of the City of Aspen.
Dated: 1 ;7-2, 20( q
Steven Sk dron, Mayor
I, Linda Manning, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of that resolution adopted by the City Council of the City of Aspen,
Colorado, at a meeting held Z7,70 l 1
Lina Ni4nmng, ity Clerk
Amendment No.1
To
Third Revised Supplemental Agreement
between
Municipal Energy Agency of Nebraska
And
The City of Aspen,Colorado
This Amendment No. 1 ("Amendment")to the Third Revised Supplemental Agreement executed August
25, 2015("Agreement")between Municipal knergy Agency of Nebraska("MEAN")and the City of Aspen,
Colorado("City") is dated the'Z"2-- day of 20 by and between MEAN and the
City.
RECITALS
WHEREAS,the parties mutually desire to amend certain contractual terms within the Agreement;
NOW,THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties
do mutually agree to the following amendments to the Agreement:
Section 1.shall be deleted in its entirety and shall be replaced by the following:
1. The parties have executed standardized contracts governing the sale of electric
capacity and energy by MEAN to Aspen.These Agreements are the Electrical Resources
Pooling Agreement (Pooling Agreement), dated June 25, 1984, the Service Schedule M
Total Power Requirements Power Purchase Agreement (Schedule M Agreement), dated
June 25, 1984, the Second Supplemental Agreement for Wind-Generated Energy
Purchase, dated August 4, 2005 (collectively referred to as the Preexisting Power
Agreements),which are incorporated herein by this reference. In the event of any conflict
or contradiction between the provisions of one or more of the Preexisting Power
Agreements, and the provisions of this Agreement, this Agreement shall govern and
control.
Section 2 shall be deleted in its entirety and shall be replaced by the following:
2. The City of Aspen,Colorado owns and operates the Ruedi hydroelectric plant under a
permit issued by the Federal Energy Regulatory Commission(FERC)with a rated capacity
of five megawatts and a hydroelectric project known as Maroon Creek with a rated
capacity of.5 megawatts; and Aspen has acquired an interest in a portion of the output
of the Ridgway Hydropower Project(Ridgway);which projects are used to supply capacity
and energy to Aspen for resale to its customers,or in the case of Ridgway,the output is
managed and used by MEAN as described herein. MEAN is fully aware that Aspen is
planning and may construct itself, or jointly with third parties one or more of the
additional proposed hydroelectric projects listed in Exhibit B to this Agreement that may
also be used to supply capacity and energy to Aspen. Aspen has received a Western Area
Power Administration (WAPA)demand allocation under the Post 2004 Resource Pool of
988 kW in the summer season and 1,560 kW In the winter season. The parties
acknowledge that Aspen's purchases under the Schedule M Agreement have been
modified by the Second Supplemental Agreement for Wind-Generated Energy Purchase
dated August 4, 2005, and the Third Supplemental Agreement for Wind-Generated
Energy Purchase dated July 27,2015.The parties agree that Aspen's purchases under the
Schedule M Agreement shall be further reduced by certain Aspen resources as described
in this Agreement; notwithstanding the foregoing, the parties expressly agree that the
hydropower output credited to Aspen under this Agreement for each unit shall be limited
and is deemed not to exceed generation associated with the capacity amount listed for
each respective unit on Exhibit B to this Agreement.
Section 3.B.shall be deleted in its entirety and shall be replaced by the following:
B. Energy Charge. Monthly Billing Energy is determined as follows and will be billed
at the Energy Charge rate set forth in the then-current Exhibit B,Schedule of Rates and
Charges,to the Schedule M Agreement,except as provided in subsection 1 below:On an
hourly basis, MEAN will reconcile the load and generation for Aspen. For each hour,the
amount of supplemental energy supplied by MEAN under the Schedule M Agreement
shall be actual metered energy minus the sum of energy supplied from WAPA and the
energy generated from the hydropower projects listed on Exhibit B. Monthly Billing
Energy equals the net of the amounts determined on an hourly basis for the current
month, less applicable transmission losses as specified in the PSCo Contract, the Holy
Cross Contract and the Tri-State Generation and Transmission Association,Inc.'s network
transmission service agreement for MEAN's delivery of Ridgway,for the current month.
In the event Aspen's resources from the hydropower generation from the facilities listed
on Exhibit B, plus the Second Supplemental Agreement for Wind-Generated Energy
Purchase dated August 4,2005,and Schedule M Agreement purchases equivalent to the
energy which was generated to create the environmental attributes that City purchases
under the Supplemental Agreement for Purchase of Landfill Gas Energy Environmental
Attributes dated August 25,2015(LFG Agreement)exceed the City's total electric power
and energy requirements MEAN will credit the City for the excess amounts at the MEAN
Energy Charge rate set forth in the then-current Schedule of Rates and Charges to the
Schedule M Agreement.Notwithstanding anything to the contrary in this Agreement,no
provision of this Agreement shall reduce,modify or affect the amounts to be charged to
Aspen for purchases under the following agreements between MEAN and Aspen: the
Second Supplemental Agreement for Wind-Generated Energy Purchase,dated August 4,
2005, the LFG Agreement, and as provided in the Third Supplemental Agreement for
Wind-Generated Energy Purchase dated July 27,2015,Schedule M Agreement purchases
equivalent to the energy which was generated to create the environmental attributes that
City purchases under the LFG Agreement;those amounts will be charged notwithstanding
any excess generation from Aspen's hydropower projects on Exhibit B or WAPA. In
addition, in the event that for any month the amount of WAPA firm energy purchases
exceeds the amount of City's Total Metered Energy,as that term is defined in the then-
current Schedule of Rates and Charges to the Schedule M Agreement, minus any wind-
generated energy delivered under a supplemental agreement between City and MEAN,
MEAN will credit the City for the excess amounts at the then-current WAPA energy rate.
1. The Parties acknowledge that energy purchases under the Third
Supplemental Agreement for Wind-Generated Energy Purchase dated July
27, 2015, will be calculated and billed as provided therein in lieu of the
calculation in Section B above.
Terms used but not defined in this Amendment shall have the meaning ascribed thereto in the
Agreement.
This Amendment No. 1 shall take effect as of April 1,2019.
All other provisions of the Agreement shall remain the same and continue in full force and effect
throughout the remaining term of the Agreement.
[SIGNATURE PAGE FOLLOWING]
IN WITNESS WHEREOF,the undersigned parties have duly executed this Amendment No. 1 to the Third
Revised Supplemental Agreement as of the date below.
MUNICIP L ENERGY AGENCY OF NEBRASKA
By
Printed Name Robert L. Poeh ing
Title Executive Director EO
Date May 9, 2019
CITY OF ASPEN,COLORADO
By
Printed Name Q- 'acr, C`r� -
Title Cha"
Date April 22, 2019
K:}Lego1kKIMEANyERPAjAspen,[O�AspenCOAmendmentNolToThirdRevisedSupplementolAgmtFINAL20190121.docx
Amendment No.2
To
Third Supplemental Agreement
For Wind-Generated Energy Purchase
Between Municipal Energy Agency of Nebraska
And
The City of Aspen,Colorado
This Amendment No. 2 ("Amendment") to Third Supplemental Agreement for Wind-Generated
Energy Purchase between Municipal Energy Agency of Nebraska ("MEAN") and the City of Aspen,
Colorado ("City") is dated the 7 day of 20_4_ by and
between MEAN and the City.
RECITALS
WHEREAS, MEAN and the City entered into that certain Third Supplemental Agreement for Wind-
Generated Energy Purchase executed as of August 25, 2015 and an Amendment No. 1 thereto
executed as of December 12,2017(collectively referred to as the"Agreement");and
WHEREAS,MEAN and the City desire to amend certain provisions of the Agreement;and
NOW,THEREFORE,in consideration of the promises and agreements contained herein,the Parties do
mutually agree to the following amendments to the Agreement:
SECTION 2.Oblinations of the Parties. Section 2.A shall be deleted in its entirety and shall be replaced
by the following:
2.A. MEAN shall generate or cause to be generated wind-generated electrical
energy,or,as permitted by this subsection A.,MEAN shall generate or cause to be
generated electrical energy and shall acquire equivalent amounts of
Environmental Attributes,as defined below ("Contract Wind Energy"), and shall
cause to be delivered to City equivalent amounts of electrical energy,in amounts
sufficient to serve City's total power requirements in excess of the following
resources,which are listed in no particular order of priority and shall be applied
to City's invoices from MEAN in the order previously agreed under such
agreements: City's allocation of firm power and energy from the Western Area
Power Administration, resources listed in the then-current Exhibit B to the SSM
Third Revised Supplemental Agreement, City's purchases from MEAN under the
Second Supplemental Wind Agreement, and City's purchases from MEAN under
the Service Schedule Agreement, which will be calculated in an amount
equivalent to the energy which was generated to create the environmental
attributes that City purchases under that certain Supplemental Agreement for
Purchase of landfill Gas Energy Environmental Attributes between MEAN and the
City("LFG Agreement").
True-Up.In the event that in any year the energy generated by the sources listed
on Exhibit C hereto is not sufficient to allow MEAN to fulfill its contractual
obligations for such year regarding sales of wind-generated electrical energy from
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the sources in the MEAN Wind Resource Pool, for reasons including but not
limited to events of force majeure, MEAN shall be permitted to acquire
Environmental Attributes to fulfill its obligations under this Agreement for such
year as described above.MEAN agrees not to enter into this Agreement with the
sole intention of fulfilling this contractual obligation by purchasing Environmental
Attributes. For any year in which MEAN purchases Environmental Attributes to
fulfill its obligations hereunder,MEAN shall provide City with written notification
of such purchase.Such notification shall state the amount of energy generated
by the MEAN Wind Resource Pool for the applicable period of time,the amount
of Environmental Attributes purchased to fulfill MEAN's contractual obligations
to all participants in the MEAN Wind Resource Pool for the applicable time period,
and the justification for such purchase.
SECTION 3. Charges. Section 3.A shall be deleted in its entirety and shall be replaced by the following:
A. City agrees to pay all monthly charges,as set forth in Exhibit A of this Agreement,
associated with generation and delivery of the Contract Wind Energy. The
charges and costs are subject to change from time to time. Written notice of
changes to the wind energy output charge,listed on Exhibit A of this Agreement,
shall be provided by issuance of a revised Exhibit A to City within thirty(30)days
of approval by the MEAN Management Committee or the MEAN Board of
Directors.
SECTION 3. Charges. Section 3.1)shall be deleted in its entirety and shall be replaced by the following:
D. Except with regard to the energy charge,for which an alternative rate is specified
above,all provisions of the then-current Schedule of Rates and Charges for the
Service Schedule Agreement shall apply to City through the term of this
Agreement.
Section 6. Relationship to Other Agreements.Section 6 shall be deleted in its entirety and shall be
replaced by the following:
6. Relationship to Other Agreements.This Agreement shall be separate from and
in addition to the Second Supplemental Wind Agreement, the LFG Agreement,
the Service Schedule Agreement, the ERPA and the SSM Third Revised
Supplemental Agreement thereto.Termination or expiration of this Agreement
shall not impair, amend, or change such other agreements,City's then-current
Service Schedule Agreement for firm power service, the SSM Third Revised
Supplemental Agreement thereto, or the LFG Agreement, and nothing in this
Agreement shall limit the rights of MEAN to enforce such other agreements.
Exhibit A. Exhibit A to the Agreement shall be deleted in its entirety and shall be replaced by the
attached Exhibit A.
Terms used but not defined in this Amendment shall have the meaning ascribed thereto in the
Agreement.
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This Amendment No.2 shall take effect as of April 1,2019.
All other provisions of the Agreement shall remain the same and continue in full force and effect
throughout the remaining term of the Agreement.
IN WITNESS WHEREOF, MEAN and the City have caused this Amendment No. 2 to the Third
Supplemental Agreement for Wind-Generated Energy Purchase between Municipal Energy Agency of
Nebraska and the City of Aspen,Colorado to be executed by these duly authorized officers,the day
and year shown below.
MUNICIP L ENERGY AGENCY OF NEBRASKA
By
Printed Name Robert L. POehl •ng
Title Executive Director/
Date May 9, 2019
CITY OF ASPEN,COLORADO
1312, '�-
Printed Name `- a o, �• o 1�
Title-Lr. "r G i 1�N I"YJ�.►�Ag e-�
Date
K.•I Legall KI MEANT Wind 1 AspenCOAmendNo2to3rd5uppAgmtForWind-GeneratedEnergyPurchoseFINA110190121.docx
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THIRD SUPPLEMENTAL AGREEMENT
FOR WIND-GENERATED ENERGY PURCHASE
EXHIBIT A
Monthly Charges:
1. Wind Energy Output: $46.00/MWh,subject to change from time to time by action of the
MEAN Management Committee or the MEAN Board of Directors.
2. Transmission Charges: Charged at the City's transmission provider's then-current
transmission rate.
3. Other Charges: Other charges shall be those directly attributable to the MEAN Wind
Resource Pool,including but not limited to such things as energy
imbalance charges,ancillary service charges,and scheduling fees.
Other charges will be assessed at the transmission provider's then-
current rates.
4. Adjustments: The rates and charges shall be adjusted to reflect the impact of any
governmental imposition,such as changes in or additions to sales
tax,property tax,energy use tax or other governmental or
regulatory fees,which are adopted,implemented or enforced after
the execution of the Third Supplemental Agreement for Wind-
Generated Energy Purchase or which occur as a result of a change
after the execution of the Third Supplemental Agreement for Wind-
Generated Energy Purchase in the interpretation or enforcement by
the governmental or regulatory body of an existing governmental
imposition.
Point(s)of Delivery: One or more of the resources in the MEAN Wind Resource Pool
Effective date of this Exhibit A: April 1,2019
Supersedes Exhibit A dated effective: August 1,2015
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