HomeMy WebLinkAboutresolution.council.153-17 RESOLUTION # 153
(Series of 2017)
A RESOLUTION APPROVING A CONTRACT AMENDMENT BETWEEN
THE CITY OF ASPEN, COLORADO, AND THE WESTERN AREA POWER
ADMINISTRATON, (WAPA) SETTING FORTH THE TERMS AND
CONDITIONS REGARDING PURCHASED POWER FROM THE COLORADO
RIVER STORAGE PROJECT AND AUTHORIZING THE CITY MANAGER
TO EXECUTE SAID CONTRACT.
WHEREAS, there has been submitted to the City Council a contract
between the City of Aspen, Colorado, and WAPA, a copy of which contract is
annexed hereto and made a part thereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ASPEN, COLORADO:
Section 1
That the City Council of the City of Aspen hereby approves that contract
amendment between the City of Aspen, Colorado, and WAPA regarding the
extension of the contract term and modification of other existing contract
provisions, 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: ' ��k M6(
Steve kad on, Mayor
I, Linda Manning, duly appointed and acting City C erk 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, ata mee 'ng held No ember 13, 2017.
Linda Manning, City Cl k
CONTRACT
BETWEEN
CITY OF ASPEN
AND
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SALT LAKE CITY AREA INTEGRATED PROJECTS
FOR
FIRM ELECTRIC SERVICE
CONTRACT
BETWEEN
CITY OF ASPEN
AND
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SALT LAKE CITY AREA INTEGRATED PROJECTS
FOR
FIRM ELECTRIC SERVICE
Table of Contents
Section Title Page
1. PREAMBLE.......................................................................................................................... 1
2. EXPLANATORY RECITALS.............................................................................................. 2
3. AGREEMENT....................................................................................................................... 6
4. TERM OF CONTRACT........................................................................................................ 7
5. RELATED CONTRACTS..................................................................................................... 7
6. DEFINITIONS....................................................................................................................... 9
7. FIRM ELECTRIC SERVICE.............................................................................................. 13
8. EXCHANGE OF ENERGY AND CAPACITY.................................................................. 29
9. SCHEDULE OF RATES..................................................................................................... 30
10. SCHEDULING, ACCOUNTING, AND BILLING PROCEDURES................................. 30
11. POWER FACTOR............................................................................................................... 31
12. INTEGRATED RESOURCE PLANS AND SMALL CUSTOMER PLANS.................... 32
13. ENVIRONMENTAL ATTRIBUTES ................................................................................. 33
14. GENERAL POWER CONTRACT PROVISIONS............................................................. 33
15. CREDITWORTHINESS ..................................................................................................... 34
16. REVIEW OF FINANCIAL AND WORK PROGRAM DATA.......................................... 34
17. EXHIBITS AND AMENDMENTS .................................................................................... 34
18. AUTHORIZED REPRESENTATIVES OF THE PARTIES.............................................. 35
19. AUTHORITY TO EXECUTE............................................................................................. 35
AUTHORIZING RESOLUTION
EXHIBIT A
RATESCHEDULE
GENERAL POWER CONTRACT PROVISIONS
CREDITWORTHINESS PROCEDURES
ATTACHMENT 1 AHP and Estimated Cost for WRP
ATTACHMENT 2' Milestones of Notices and Requests for Seasonal WRP
ATTACHMENT 3 Timeline of Notices and Requests for Long-term WRP
ATTACHMENT 4 Milestones of Notices and Requests for CDP
ATTACHMENT 5 Agreement for Review of Financial and Work Program Data, as
Supplemented
I
Contract No. 17-SLC-0840
CONTRACT
BETWEEN
CITY OF ASPEN
AND
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SALT LAKE CITY AREA INTEGRATED PROJECTS
FOR
FIRM ELECTRIC SERVICE
1. PREAMBLE
This CONTRACT is made this 13 day ofNO F;� -2 2017,pursuant to the
Act of Congress approved June 17, 1902 (32 Stat.,388), the Act of Congress approved
February 25, 1905 (33 Stat. 814), the Reclamation Project Act of August 4, 1939 (53 Stat.
1187), the Flood Control Act of December 22, 1944 (58 Stat. 887), the Act of Congress
approved July 3, 1952 (66 Stat. 325), 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 "WAPA,"
represented by the officer executing this Contract, a duly appointed successor, or a duly
authorized representative, hereinafter called the"Contracting Officer,"and City of
Aspen,duly organized, created, and existing under and by virtue of the laws of the State
of Colorado hereinafter referred to as the "Contractor," its successors and assigns,
1
Contract No. 17-SLC-0840
each sometimes hereinafter individually called"Party," and both sometimes hereinafter
collectively called the "Parties."
2. EXPLANATORY RECITALS
2.1 The United States Bureau of Reclamation(Reclamation)operates certain Federal
hydroelectric facilities known as the Collbran Project, Rio Grande Project, and the
Colorado River Storage Project.
2.2 WAPA refers to the hydroelectric facilities of the Collbran Project, Rio Grande
Project, and the Colorado River Storage Project collectively as the Salt Lake City
Area Integrated Projects, hereinafter called "SLCA Integrated Projects."
2.3 WAPA markets and transmits hydroelectric power generated at the SLCA
Integrated Projects pursuant to the Act of Congress approved June 17, 1902
(32 Stat. 388), the Act of Congress approved February 25, 1905 (33 Stat. 814), the
Reclamation Project Act of August 4, 1939(53 Stat. 1187), the Flood Control Act
of December 22, 1944 (58 Stat. 887), the Act of Congress approved July 3, 1952
(66 Stat. 325), 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 by the United States of America.
2
Contract No. 17-SLC-0840
2.4 To implement the foregoing authorities, WAPA developed and published the Salt
Lake City Area Integrated Projects Post-1989 General Power Marketing and
Allocation Criteria(hereinafter called the "Criteria" and/or"Post-1989 Marketing
Plan") in the Federal Register on February 7, 1986 (51 FR 4844).
2.5 WAPA and Reclamation are under a continuing obligation to ensure the operation
of Reclamation's hydroelectric facilities complies with Federal law. Due to this,
WAPA maintains flexibility in its contracts to respond if Reclamation changes the
way its facilities are operated.
2.6 As published in the Federal Register on April 2, 1987 (52 FR 10620), WAPA's
Administrator approved final allocations of the hydroelectric power,generated at
the SLCA Integrated Projects, under which the Contractor received Summer and
Winter Season capacity and energy allocations. Minor revisions were
subsequently made to the allocations on August 24, 1989(54 FR 35234).
2.7 WAPA entered into long-term firm power contracts for the delivery of the SLCA
Integrated Projects capacity and energy allocations listed in the April 2, 1987,
Federal Register notice (52 FR 10620), as subsequently revised in the August 24,
1989, Federal Register notice(54 FR 35234) and other Federal Register notices
explained below. These contracts are referred to as the Firm Electric Service
contracts executed with the SLCA Integrated Projects.
3
Contract No. 17-SLC-0840
2.8 Effective November 20, 1995, WAPA published the Energy Planning and
Management Program(Program), 10 C.F.R. Part 905, to implement Section 114
of the Energy Policy Act of 1992 (106 Stat. 2776).
2.9 The Program consists of two components: a requirement that each long-term firm
power customer prepare an integrated resource plan, and a Power Marketing
Initiative(PMI)under which WAPA extended a major portion of the Federal
resource commitments to its existing long-term firm power customers. Subpart C
Power Marketing Initiative of the Program provides for the establishment of
project-specific resource pools and the allocation of power from these pools to
new preference customers.
2.10 WAPA did not consider applying the PMI to the SLCA Integrated Projects until
after completion of the SLCA Integrated Projects Electric Power Marketing
Environmental Impact Statement (EIS). The Record of Decision on that EIS was
issued on November 1, 1996.
2.11 Subsequent to WAPA's proposed application of the PMI to the SLCA Integrated
Projects, the public was provided opportunities to comment on WAPA's proposed
application of the PMI. Public comment was also invited on how WAPA should
market power given recent changes in the electric industry; and, on how much
power should be set aside for new customers, particularly Native American Tribal
entities. On June 25, 1999, WAPA announced its decision in the Federal Register
4
Contract No. 17-SLC-0840
(64 FR 34414) that the term of SLCA Integrated Projects contracts would be
renewed and extended until September 30, 2024. On September 8, 1999, WAPA
established the Power Allocation Procedures and Call for Applications in the
Federal Register(64 FR 48825), for SLCA Integrated Projects Post-2004
Resource Pool.
2.12 On February 4, 2002, WAPA published final allocations of the Post-2004
Resource Pool in the Federal Register(67 FR 5113) and on July 29,2002,
adjusted final allocations as published in the Federal Re ig ster(67 FR 49019).
2.13 In the May 20, 2004, Federal Register(69 FR 29135), WAPA published its
Notice of Determination of the Post-2004 Marketable Resources which stated that
due to drought conditions it was necessary to reduce the energy component of the
SLCA Integrated Projects marketable resources. WAPA stated that it would
reduce the marketable energy available to its Contractors beginning October 1,
.2004, then gradually increase the energy available over a 5-year period, reaching
a level in the fifth year(beginning October 1, 2009)that would remain constant
through September 30, 2024. WAPA also indicated that additional hydroelectric
power could be available to its customers when hydrologic conditions warranted.
On October 1, 2004, most entitlements of Contractors to the long-term firm SLCA
Integrated Projects capacity and energy available at that time were reduced by
seven(7)percent to provide power for new preference customers. WAPA
amended the existing contracts with the Contractors to implement this decision.
5
Contract No. 17-SLC-0840
2.14 The existing contracts expire on September 30, 2024. WAPA published its ,
Proposed 2025 Marketing Plan on December 16, 2015 (80 FR 78222), for the
marketing of SLCA Integrated Projects' hydroelectric power and energy for a
period beginning October 1, 2024.
2.15 In the November 29, 2016, Federal Re ig stet(81 FR 85946) WAPA announced its
Final 2025 Salt Lake City Area Integrated Proiects Marketing Plan (hereinafter
called the "2025 Marketing Plan"), extending existing capacity and energy
allocations to existing Contractors of SLCA Integrated Projects, while
recognizing additional project development may occur in future years. It also
provided for establishing a new Firm Electric Service contract based upon the
existing SLCA Integrated Projects contract.
2.16 The Contractor desires to purchase and WAPA is willing to furnish Firm Electric
Service from the SLCA Integrated Projects under the terms and conditions stated
herein.
3. AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the
Parties hereto agree as follows.
6
Contract No. 17-SLC-0840
4. TERM OF CONTRACT
4.1 This Contract shall become effective as of the date in Section 1 above or
October 1, 2017, whichever is later, and will remain in effect through the end of
the calendar day on September 30, 2057, subject to prior adjustments,
modifications, or termination as provided herein.
4.2 The delivery of Firm Electric Service under this Contract shall commence
October 1, 2024.
4.3 The delivery of Firm Electric Service from the effective date hereof through the
end of the calendar day on September 30, 2024, shall be subject to the terms and
conditions of Contract No. 87-SLC-0048, except that sections 7.1.6, 13, 14, and
15 of this Contract shall become effective for all Finn Electric Service deliveries
on or after the effective date hereof. Except as provided above, in the event of a
conflict between the terms of Contract No. 87-SLC-0048 and the terms of this
Contract, the terms of Contract No. 87-SLC-0048 shall control through the end of
calendar day September 30, 2024, and the terms of this Contract shall control
thereafter.
5. RELATED CONTRACTS
5.1 . The Contractor's SLCA Integrated Projects Contract No. 87-SLC-0048 with
7
Contract No. 17-SLC-0840
WAPA expires by its own terms and terminates in its entirety at the end of the
calendar day on September 30, 2024.
5.2 Termination of Contract No. 87-SLC-0048 and implementation of this Contract
shall occur simultaneously, at the end of the calendar day on September 30, 2024,
with no disruption in delivery of Firm Electric Service.
5.3 In the event that Contract No. 87-SLC-0048 is terminated prior to the end of the
calendar day on September 30, 2024,this Contract shall terminate effective with
the termination of the Contract No. 87-SLC-0048, unless otherwise provided.
5.4 The Contract Rate of Delivery (CROD), as defined in Section 6.2, with associated
energy under Contract No. 87-SLC-0048 may be modified prior to October 1,
2024, based upon the terms in Contract No. 87-SLC-0048. If modifications are
made to Contract No. 87-SLC-0048, such as reductions, withdrawals, restrictions,
limits, penalties, termination, additions, increases, and any other applicable
adjustment prior to October 1, 2024, the same modifications shall be made to this
Contract and any applicable exhibits and attachments.
5.5 If applicable, certain allocation holders identified in Contract No. 87-SLC-0048
have assigned their CROD and associated energy allocations to Contractor, and
those assigned allocations are included in this Contract as allowed by the terms of
the assignment. If Contract No. 87-SLC-0048 terminates prior to the end of the
8
Contract No. 17-SLC-0840
calendar day on September 30, 2024, any applicable allocation assignment
agreement(s) shall terminate concurrently.
6. DEFINITIONS
For the purposes of this Contract:
6.1 Available Hydro Power(AHP) is the maximum amount of hydroelectric capacity
and energy that will be made available to the Contractor monthly as determined
by WAPA based on prevailing water release conditions and set forth in Exhibit A;
Provided, however, that AHP shall not be less than the Contractor's Sustainable
Hydro Power.
6.2 Contract Rate of Delivery(CROD) is the maximum level of long-term capacity
that the Contractor is entitled to receive in each Season as set forth in Section 7
and in Exhibit A of this Contract. The CROD is the Contractor's allocated share
of the SLCA Integrated Projects marketing commitment level established for each
Season through the term of this Contract. CROD is met first with the
Contractor's AHP, and then with Customer Displacement Power or Western
Replacement Power, or a combination thereof.
9
n
Contract No. 17-SLC-0840
6.3 Contractor is a preference customer within the marketing area of the SLCA
Integrated Projects. Contractors refers to all SLCA Integrated Projects customers.
6.4 Contracting Officer is the officer executing this Contract, a duly appointed
successor, or a duly authorized representative.
6.5 Customer Displacement Power(CDP) is the amount of supplemental power
acquired or generated by the Contractor on its own behalf, or by a third party on
behalf of Contractor, which if provided by Contractor under Section 7 may be
used, as required, as part of the Contractor's CROD and Monthly Energy within a
given period.
6.6 Designated Points of Delivery are those points described in Exhibit A where Firm
Electric Service furnished by the SLCA Integrated Projects is delivered to the
Contractor or to a transmission agent for further delivery to the Contractor.
6.7 Firm Electric Service is the firm energy and capacity provided by WAPA at
Designated Points of Delivery.
6.8 Firmin Pg ower is power purchased by WAPA from time-to-time which it
determines to be required in order to meet its commitments for AHP and Seasonal
SHP Energy.
10
Contract No. 17-SLC-0840
6.9 Lone Term Western Replacement Power(Lone Term WRP) is the amount of
Western Replacement Power that WAPA will purchase for the Contractor for a
specified period of at least one (1) year pursuant to Section 7.3 which will be
used, as required, as part of the Contractor's CROD and Monthly.Energy within
the given period.
6.10 Monthly Capacity is the maximum quantity of firm capacity expressed in
kilowatts(kW)that WAPA is committed to deliver and the Contractor is entitled
to receive each month, pursuant to Section 7.8.
6.11 Monthly Energy is the maximum quantity of total firm energy expressed in
kilowatt-hours (kWh) that WAPA is committed to deliver and the Contractor is
entitled to receive each month pursuant to Sections 7.1.3 and 7.8, and as set forth
in Exhibit A.
6.12 Season or Seasonal is Summer or Winter Season.
6.13 Seasonal SHP Energy is the minimum quantity of firm'energy expressed in kWh
the Contractor is entitled to receive each Season as set forth in Section 7.1.2.
6.14 Seasonal Western Replacement Power(Seasonal WRP) is the maximum amount
of Western Replacement Power WAPA will purchase for the Contractor during a
Il '
Contract No. 17-SLC-0840
Season or shorter period of time, pursuant to Section 7.2, which will be used, as
required, as part of the Contractor's CROD and Monthly Energy.
6.15 Summer Season is the six (6)month period from the first day of the April billing
period through the last day of the September billing period of any calendar year.
6.16 Sustainable Hydro,Power(SHP) is a level of long-term operable SLCA Integrated
Projects hydroelectric capacity with energy, projected at an established risk level
and supplemented by WAPA power purchases as may be required from time-to-
time due to hydrological conditions, which level shall be fixed and made available
to the Contractor each Season through a specified contract period. SHP will be
established by WAPA in consultation with the Contractors, and set forth in the
attached Exhibit A.
6.17 Western Replacement Power(WRP) is the amount of supplemental power
requested by the Contractor to be acquired by WAPA on behalf of the Contractor
as part of the Contractor's CROD and Monthly Energy within a given period and
paid for by the Contractor on a pass-through-cost basis. WRP may also be
purchased as Seasonal WRP, as provided for in Section 7.2, or as Long Term
WRP, as provided for in Section 7.3.
12
Contract No. 17-SLC-0840
6.18 Winter Season is the six (6) month period from the first day of the October billing
period of any calendar year through the last day of the March billing period of the
following calendar year.
7. FIRM ELECTRIC SERVICE
7.1 WAPA's Energy and Capacity Obligations: WAPA, under the terms and
conditions specified herein and within the available capacity of the substation and
transmission facilities to deliver the Firm Electric Service at specific Designated
Points of Delivery, will furnish Firm Electric Service to the Contractor, up to the
mutually agreed upon Monthly Energy and Monthly Capacity set forth in
Exhibit A.
7.1.1 The Seasonal CROD, SHP, AHP, and Monthly Capacity shall be as set
forth in Section 3 of Exhibit A.
7.1.2 The Seasonal SHP Energy and Monthly SHP Energy shall be as set forth
in Section 4 of Exhibit A.
7.1.3 The Monthly Energy available with the CROD shall be the sum of the
Contractor's monthly portion of(1) Seasonal SHP Energy or energy
associated with AHP, whichever is greater, plus (2) energy associated with
WRP,plus(3)energy associated with the CDP as set forth in Exhibit A.
13 J
Contract No. 17-SLC-0840
Monthly Energy available with the CROD shall not exceed 100 percent
load factor.
7.1.4 If the Seasonal SHP Energy and the CROD are changed due to exchanges
of energy and capacity in accordance with Section 8 of the Contract, any
such changes will be reflected prior to the beginning of each Season in a
revision to Exhibit A.
7.1.5 Should WAPA determine that hydrology projections, operational or other
changes, show AHP energy or capacity in sufficient quantities to be made
available above that identified as AHP in Exhibit A, WAPA,shall first
offer said energy or capacity to its Contractors. Appropriate written
notification from WAPA will be given to the Contractor.
7.1.6 WAPA may revise the amount of the Contractors Seasonal SHP Energy
or Seasonal CROD as required to respond to changes in hydrology and
river operations, upon five (5) years' notice to the Contractor.
7.2 Seasonal WRP: The procedure for acquiring'Seasonal WRP is as follows, and the
schedule of dates by which the terms of Seasonal VW are to be complied with
are listed in Attachment No. 2.
14
Contract No. 17-SLC-0840
7.2.1 WAPA will notify the Contractor in writing as to what portion of the
CROD in the upcoming season will be supplied from AHP. The
notification will also provide WAPA's estimated price of purchasing
Seasonal WRP for the upcoming Season and any advancement of funds
necessary pursuant to Section 7.5. This notice will be in substantially the
same form as Attachment No. 1.
7.2.2 The Contractor will provide authorization by returning the form to WAPA
indicating the amount of Seasonal WRP that it requests WAPA to
purchase for the upcoming Season. Such written notice will constitute a
commitment by the Contractor to pay its share of WAPA's cost of the
Seasonal WRP pursuant to this Section 7.2, except when power is not
available per Section 7.2.3. The amount of Seasonal WRP for which
notice is provided by the Contractor for a Season may vary by month.
Such monthly amounts must be so indicated in the Contractor's
notification.
7.2.3 Upon receipt of the authorization from the Contractor, pursuant to
Section 7.2.2, WAPA will endeavor to purchase the requested Seasonal
WRP. If the power is not available for purchase by WAPA under the
authorized terms and conditions, WAPA shall notify the Contractor. If the
Contractor then chooses to rescind its request for WRP, it must do so
promptly in writing.
15
Contract No. 17-SLC-0840
7.2.4 At the beginning of the billing period for each Season, WAPA will notify
the Contractor of any revisions to WAPA's estimated price for Seasonal
WRP for each month of the Season.
7.2.5 WAPA will include in its regular monthly power bill to the Contractor
WAPA's cost of providing Seasonal WRP for that month.
7.2.6 The costs associated with Seasonal WRP shall reflect additional costs, if
any, incurred by WAPA for energy purchased as Seasonal WRP, as
compared with the cost WAPA has determined is necessary to support its
monthly energy commitments without Seasonal WRP purchases. Such
additional costs shall be limited to the net cost of such energy calculated
by subtracting from WAPA's total cost of providing the energy(i) the
revenues received by WAPA from the sale of such energy, and (ii) if used
by WAPA for Firming Power, the estimated cost for such Firming Power
that WAPA otherwise would have incurred.
7.2.7 If the Contractor has paid in excess of WAPA's actual cost of the Seasonal
WRP provided to the Contractor during the Season, WAPA will credit the
amount toward payment of the Contractor's next practicable service
month power bill unless otherwise mutually agreed. If the Contractor has
paid less than WAPA's actual costs of Seasonal WRP accepted by the
16
Contract No. 17-SLC-0840
Contractor during the Season, WAPA will bill the Contractor for such
amount in its next practicable service month power bill unless otherwise
mutually agreed. .When advanced funds are needed, pursuant to
Section 7.5, the provisions in Subsection 7.2.7 shall not be applicable.
7.3 Long Term WRP: The procedure for acquiring Long Term WRP is as follows,
and the schedule of dates by which the terms of Long Tenn WRP are to be met is
listed in Attachment No. 3.
7.3.1 WAPA will notify the Contractor as to what portion of the Contractor's
CROD is expected to be supplied from AHP for the remainder of the
Contract.
7.3.2 If the Contractor is interested in acquiring Long Term WRP, the
Contractor will notify WAPA of the amount of Long Term WRP desired,
the period of time for which the Contractor is willing to commit to
purchase that amount, and the maximum price that the Contractor would
be willing to have WAPA pay to purchase Long Term WRP. These will
be used by WAPA in soliciting and evaluating potential power purchase
options and will limit any obligation of WAPA to provide Long Term
WRP.
17
Contract No. 17-SLC-0840
7.3.3 After receipt of the notice(s)referenced in Section 7.3.2, WAPA shall
request proposals from power suppliers for power to supply the request(s)
for Long Term WRP.
7.3.4 Once WAPA receives and evaluates proposals from suppliers, WAPA
shall inform the Contractor of the length of commitment, terms, and
conditions, including adequacy of transmission, under which Long Term
WRP is available. WAPA will also notify the Contractor of any
advancement of funds needed pursuant to Section 7.5.
7.3.5 The Contractor shall provide written authorization to WAPA to contract
for the Long Term WRP under the specified terms and conditions. Such
written authorization will constitute a commitment by the Contractor to
pay its share of the cost of the Long Term WRP under the terms and
conditions specified.
7.3.6 Only upon receipt of written authorization from the Contractor will
WAPA pursue purchasing Long Term WRP for the Contractor. If the
power is not available for purchase by WAPA under the authorized terms
and conditions, WAPA will notify the Contractor of the changes. If the
Contractor then chooses to rescind its request for Long Term WRP, it
must do so promptly in writing. Service shall normally begin on the first
day of the next Season.
18
Contract No. 17-SLC-0840
7.3.7 The Contractor may commit to more than one Long Term WRP
arrangement; Provided, That its request for Long Term WRP, when
combined with the Contractor's SHP, other WRP commitments and CDP
commitments, shall not exceed the Contractor's CROD, or 100 percent
load factor of the CROD.
7.3.8 WAPA will include in its regular monthly power bill to the Contractor
WAPA's cost of Long Term WRP for that month. The cost will be
calculated by placing WAPA's total Long Term WRP costs into a cost
pool for each term of commitment of Long Term WRP, and then prorating
the costs to the Contractor in proportion to its share of Long Term WRP in
that pool.
7.3.9 Determination of WAPA's actual costs for Long Term WRP and excess or
deficient payments by the Contractor for Long Term WRP will be made at
the end of WAPA's fiscal year. If the Contractor has paid in excess of
WAPA's actual costs of the Long Term WRP, WAPA will reflect such
excess amount in a credit to the Contractor's amount of payment to be
made in the next practicable service month power bill, unless otherwise
mutually agreed. If the Contractor has paid less than WAPA's actual costs
of Long Term WRP, WAPA will bill such deficiency to the Contractor in
its next practicable service month power bill, unless otherwise mutually
19
Contract No. 17-SLC-0840
agreed. When advanced funds are needed, pursuant to Section 7.5, these
provisions in Subsection 7.3.9 shall not be applicable.
7.3.10 If requested by the Contractor, WAPA shall attempt to sell any energy
associated with Long Term WRP that is in excess of the Contractor's
needs. If WAPA sells such energy,,WAPA shall credit the Contractor's
charges for Long Term WRP by any revenues obtained, less WAPA's
costs, if any, to provide this service.
7.4 Cost of Providing WRP: WAPA's cost of providing WRP shall not be included
in the capacity and energy rates charged to the Contractor under the SLCA
Integrated Projects Firm Power Rate Schedule.
7.5 Advancement of Funds
7.5.1 WAPA may make purchases of WRP from the funds it has available. In
the event that WAPA does not have sufficient funds to make WRP
purchases, the Contractor will provide its pro-rata share of funds in
advance for WAPA's use in purchasing WRP on the Contractor's behalf.
The notice provided to the Contractor by WAPA pursuant to
Sections 7.2.1 and 7.3.4 will notify the Contractor as to its pro-rata share,
if an advance is needed. The Contractor shall submit the advanced funds
to WAPA with the written authorization pursuant to Sections 7.2.2 or
20
Contract No. 17-SLC-0840
7.3.5. Advanced funds will be credited to a separate account and will be
held by WAPA for the Contractor to be used solely for purchases of WRP.
When advanced funds are needed, Sections 7.2.7 and 7.3.9 shall not be
applicable. The amounts advanced will be determined according to the
following criteria:
7.5.1.1 For Seasonal WRP, the Contractor will advance an amount equal
to (i) one third of the estimated cost of Seasonal WRP to be
purchased by WAPA on behalf of the Contractor in the upcoming
Season, less (ii) the amount, if any, held by WAPA for purchases
of Seasonal WRP on behalf of the Contractor for the current
Season; Provided, That if the amount held by WAPA for the
current Season is greater than the amount required for the
upcoming Season, the difference will either be refunded to the
Contractor after the current Season or, at the Contractor's option,
be reflected as a credit in the Contractor's next power bill.
7.5.1.2 If the Contractor fails to advance WAPA sufficient funds for
Seasonal WRP in accordance with the amounts and schedules set
forth in Sections 7.5.1.1, WAPA will not purchase Seasonal WRP
on the Contractor's behalf for that upcoming Season.
21
Contract No. 17-SLC-0840
7.5.1.3 For Long Term WRP, the Contractor will advance an amount
equal to (i) the next two (2) months of the estimated cost of the
Long Term WRP to be purchased by WAPA on behalf of the
Contractor, less, (ii)the amount, if any, then held by WAPA for
purchases of Long Term WRP on behalf of the Contractor;
Provided, That if the amount then held by WAPA is greater than
the amount required for the next two (2) months, the difference
will either be refunded to the Contractor by WAPA or at the
Contractor's option, be reflected as a credit in the Contractor's
next power bill.
7.5.1.4 Upon termination of the Contract, any funds advanced by the
Contractor that are still held by WAPA and are in excess of
amounts owed to WAPA will be refunded to the Contractor.
7.6 Customer Displacement Power: The procedure for acquiring CDP is as follows,
and the schedule of dates by which the terms of CDP are to be met are listed in
Attachment No. 4.
7.6.1 The Contractor may, individually or in association with other Contractors
of the SLCA Integrated Projects, furnish written notice to WAPA that it
wishes to provide to WAPA, for delivery to the Contractor, CDP for a
portion or all of the power above AHP and WRP up to the CROD and for
22
Contract No. 17-SLC-0840
which it has not otherwise provided notification for Seasonal WRP or
Long Term WRP in accordance with the notification guidelines set forth
in Section 7.2 or 7.3. CDP may only be accepted in time periods offered
for Seasonal or Long Term WRP.
7.6.2 The Contractor will famish with its notification to provide CDP pursuant
to Section 7.6.1, information regarding the source and point of receipt of
power, the amount of power to be provided, the initial month of delivery,
the commitment length, the designation of the scheduling entity, and any
prescheduling and scheduling requirements and restrictions. WAPA will
determine its ability to deliver this CDP in accordance with Section 7.7.3.
7.6.3 The Contractor may request a change or modification to the source(s) or
conditions of CDP at any time prior to or during a Season upon written
notification to WAPA's appropriate scheduling office. WAPA shall make
its best efforts to expedite its determination of its ability to accept this
CDP for delivery to the Contractor and shall so notify the Contractor, in
writing, of its determination as soon as possible. However, WAPA shall
have the sole determination of its ability to accept this CDP under the new
conditions.
23
Contract No. 17-SLC-0840
7.6.4 Any portion of CDP not supplied pursuant to Section 7.6.1 will be deemed
to be supplied pursuant to this Section 7.6. WAPA will not be responsible
for firming CDP purchases made by the Contractor.
7.7 Transmission Provisions
7.7.1 Reserved Firm Capacity(RFC) in the CRSP transmission system will be
maintained by WAPA to deliver the Contractor's CROD, to meet other
firm transmission and firm exchange commitments, and to serve loads
solely dependent upon transmission service on WAPA's system. The
Contractor's AHP, WRP, and CDP, where CDP has been accepted by
WAPA pursuant to Section 7.6.2, will be treated as firm deliveries up to
the Contractor's CROD. Procedures for management of curtailments shall
be contained in Scheduling, Accounting, and Billing Procedures (SABPs),
as referenced in Section 10,jointly developed and executed by both
Parties.
7.7.2 To the extent that actual AHP, combined with the sum of contractual
commitments by the Contractor for purchase of Long Term WRP,
Seasonal WRP, and CDP, result in capacity greater than the Contractor's
CROD, it is the Contractor's responsibility to arrange for transmission and
delivery of any Long Term WRP, Seasonal WRP, and CDP in excess of
the Contractor's CROD. Additionally, the Contractor shall independently
24
Contract No. 17-SLC-0840
arrange for delivery to itself of all CDP over and above CDP accepted by
WAPA for delivery to the Contractor pursuant to Section 7.6.
7.7.3 Pursuant to the CRSP Joint Planning Agreement Principles No. 96-SLC-
0315, as may be amended, WAPA shall engage in a consultative process
with the Contractors for determination of(i)the transmission capacity of
the existing CRSP transmission system and any modification or additions
thereto, (ii)the capacity in the system needed to meet the RFC
requirement of Section 7.7.1, and(iii) any remaining available
transmission capacity that could be made available for other firm
transmission purposes.
7.7.3.1 Determination of transmission availability among competing new
requests for WRP and CDP will be based, among other things, on
the length of the commitment, i.e., for the upcoming Season or in
increments offered by WAPA for Long Term WRP, with requests
of longer commitment lengths being given higher priority. Prior to
the beginning of Long Term WRP, as established in Section 7.3 of
this Contract,the maximum commitment length for WRP and CDP
will be the upcoming Season.
7.7.3.2 For requests of WRP and CDP of equal commitment length, WRP
and CDP will share current RFC pro-rata when such concurrent
25
Contract No. 17-SLC-0840
requests exceed estimated RFC. Prior to the first Long Term WRP
commitment date, as established in Section 7.3 of this Contract,
requests received through the date of the Contractor's notice for
Seasonal WRP will be considered as being received concurrent for
the upcoming Season. Subsequent to the first commitment date for
Long Term WRP, requests for CDP will be considered as outlined
in Attachment No. 4.
7.7.3.3 The commitment length for CDP can be no longer than the
Contractor's purchase commitment to the resource designated at
WAPA's point of receipt.
7.8 Monthly Commitments: At least sixty(60) days before the beginning of each
Season,the Contractor and the Contracting Officer shall establish the Monthly
Energy and Monthly Capacity for the upcoming Season at each Designated Point
of Delivery; Provided, however,that Monthly Capacity in any month may not
exceed the Contractor's CROD as set forth in Section 7.1.1. The Monthly Energy
and Monthly Capacity will be set forth in Exhibit A. Energy or capacity may not
be transferred from month to month without revision to Exhibit A.
7.9 Minimum Hourly Delivery: The Minimum Hourly Delivery shall be 35 percent
of the total*of the Contractor's CROD, or the Contractor's total load, whichever is
less, or as otherwise set forth in Exhibit A. Upon request of the Contractor, the
26
Contract No. 17-SLC-0840
requirement for a Minimum Hourly Delivery may be waived by WAPA, if
operating conditions permit. At no greater than 2-year intervals, WAPA, in
consultation with its Contractors, shall reevaluate, and may revise, the minimum
hourly delivery. Such revision will be reflected in a revised Exhibit A.
7.10 Operating Reserves: WAPA is able to provide operating reserves for the
Contractor for AHP. To the extent that the Contractor's CDP or WRP from a
third-party purchase includes the provision of operating reserves, WAPA shall
allow the Contractor to claim such reserves from any unscheduled portion of CDP
or WRP..
7.11 Designated Point(s)of Delivery and Voltages: Firm Electric Service furnished by
WAPA to the Contractor will be delivered at the point(s) and voltage(s) set forth
in Exhibit A. Charges and losses will be established as follows: (i)any
transmission costs and associated losses incurred in the delivery of AHP to the
Designated Points(s)of Delivery described in Exhibit A shall be the responsibility
of WAPA, (ii) losses in the delivery of WRP and/or CDP shall be the
responsibility of the Contractor, and(iii) any transmission costs and associated
losses in the delivery of Firm Electric Service beyond the Designated Point(s) of
Delivery shall be the responsibility of the Contractor.
7.12 Metering: The point(s) of measurement, metering voltage(s), and ownership of
metering equipment shall be set forth in the SABPs entered into pursuant to
27
Contract No. 17-SLC-0840
Section 10 hereof Insofar as the Firm Electric Service delivered hereunder may .
be measured at point(s) and/or voltage(s) other than the Designated Point(s) of
Delivery, the measured amount(s) may be adjusted for losses between the
Designated Point(s) of Delivery and the point(s) of measurement as set forth in
said SABPs.
7.13 Transmission Agent: Not Applicable.
7.14 Firmin PQ ower
7.14.1 In the event that actual power produced by SLCA Integrated Projects
generation is inadequate to meet AHP or Seasonal SHP Energy as set forth
in Exhibit A, WAPA will purchase Firming Power required to meet any
shortfall. The cost of such Firming Power purchases, as well as revenues
from any associated short tern power sales, shall be included in the
capacity and energy rates charged to the Contractor under the then-current
SLCA Integrated Projects Firm Power Rate Schedule.
28
Contract No. 17-SLC-0840
7.14.2 Any expenses deemed non-reimbursable pursuant to Section 1807 of the
Grand Canyon Protection Act of 1992, Pub. L. 102-575, shall be treated as
non-reimbursable expenses.
8. EXCHANGE OF ENERGY AND CAPACITY
In order to optimize use of SLCA Integrated Projects' resources, WAPA will consider,
subject to the conditions set forth herein, an exchange of energy and/or capacity between
Contractors. If the Contractor desires an exchange of energy and/or capacity, it must
submit a request sixty(60) days prior to the anticipated effective date of the exchange of
energy and/or capacity. WAPA will then review requests on the basis of its operational
requirements. If operational requirements permit, requesting Contractors will be offered
a letter agreement, for ah exchange of energy and/or capacity. The Contractor will return
the signed letter agreement accepting the proposed exchange. The Seasonal Energy and
the Contract Rates of Delivery will then be increased or decreased, as necessary, in a
revision to Exhibit A. Any exchange of energy and/or capacity is at the discretion of
WAPA, and WAPA may elect to not facilitate an exchange. In the event WAPA does
facilitate an exchange, the exchange is for the approved period only, and at the end of.that
approved period the Contractor's Seasonal Energy and Contract Rates of Delivery will
revert to those amounts set forth in Section 7.1.
29
Contract No. 17-SLC-0840
9. SCHEDULE OF RATES
The Contractor shall pay WAPA for the Firm Electric Service famished hereunder in
accordance with rates, charges, and conditions set forth in the General Power Contract
Provisions (GPCPs) dated as of September 1, 2007, and in applicable Rate Schedule, both
attached hereto and made a part hereof, or any superseding rate schedules.
10. SCHEDULING, ACCOUNTING, AND BILLING PROCEDURES
10.1 Written SABPs, shall be developed and agreed upon by the authorized
representatives of the Parties before the date of initial service under this Contract.
The SABPs are intended to implement the terms of this Contract but not to
modify or amend it and are, therefore, subordinate to this Contract. Revisions to
the SABPs may be needed to meet operational requirements and such revisions
shall be made in accordance with Section 10.3. Any revisions to the SABPs shall
be developed in consultation with the Contractor.
10.2 Deliveries of Firm Electric Service hereunder may be scheduled in advance as
determined by the Contracting Officer, on an hourly basis, emergencies excepted,
and accounted for on the basis of such advance schedules, all in accordance with
SABPs agreed upon in advance between the authorized representatives. Said
SABPs will specify the conditions under which inadvertent deliveries,which are
greater or less than scheduled deliveries, shall be corrected in later deliveries. If
operating conditions warrant and WAPA so notifies the Contractor, WAPA may,
30
Contract No. 17-SLC-0840
at its option, revise the Contractor's schedule or request the Contractor to
schedule its resources from the SLCA Integrated Projects to approximate normal
hourly and/or daily load patterns.to avoid abrupt changes in water releases and
generation levels or other undesirable results. The Contractor will initiate hourly
scheduling within ninety(90) days of a request by WAPA.
10.3 In the event the Contractor fails or refuses to execute the initial SABPs or any
revised SABPs which WAPA determines to be necessary due to changes in this
Contract or the power system of either Party, WAPA will temporarily implement
essential procedures as determined by WAPA until mutually acceptable SABPs
have been developed and executed by the authorized representatives.
11. POWER FACTOR
11.1 The Contractor will be expected to maintain the power factor specified in the
attached rate schedule or the GPCPs. If the power factor requirements under
applicable rate schedule(s) and the GPCPs are not the same, the more stringent
requirement will apply.
11.2 If the applicable power factor standard is not complied with, WAPA may, after
giving the Contractor ninety(90) days' written notice to correct the condition or
such additional time as warranted by circumstances, make delivery system
improvements associated with power factor correction at the Contractor's expense
31
Contract No. 17-SLC-0840
to WAPA's system or to the system used by the Contractor with the agreement of
the Contractor and/or Third Party Service Provider. If WAPA is required to pay
for delivery system improvements associated with power factor correction on the
systems of its transmission agents, which are attributable to conditions on the
system used by the Contractor, the Contractor shall pay for the cost of such
improvements.
12. INTEGRATED RESOURCE PLANS AND SMALL CUSTOMER PLANS
12.1 The Contractor shall comply with the Integrated Resource Plan (IRP)or Small
Customer Plan requirements, as applicable, in accordance with the Program. If
the Contractor submits an IRP with a State or Tribal regulatory body, that same
plan may be submitted to WAPA for approval in meeting the IRP or Small
Customer Plan requirements.
12.2 WAPA shall administer the IRP or Small Customer Plan requirements, as
applicable, in accordance with the Program.
12.3 Failure to comply with the IRP or Small Customer Plan requirements, after
exhaustion of all appeals, will result in the application of penalties as specified in
the Program.
32
Contract No. 17-SLC-0840
12.4 In the event that WAPA, or any successor agency, shall promulgate changes to
the IRP portion of the Program following its initial adoption as published in the
Federal Re ig'ster at 60 FR 54151 (October 20, 1995), the Contractor, by written
notice to the Contracting Officer within ninety(90) days after the effective date of
a Program change, may elect to terminate this Contract. The termination shall be
effective one (1) year from the date of receipt of the notice by WAPA.
13. ENVIRONMENTAL ATTRIBUTES
WAPA shall allocate to the Contractor available environmental attributes, such as
renewable energy credits/certificates (RECs), that exist from SLCA Integrated Projects
hydroelectric generation. Environmental attributes are considered bundled with the
energy(kWh) allocation, and the Contractor has the right, but not the obligation, to take
title and ownership to its proportionate share based upon its energy allocation set forth in
Section 7.1.
14. GENERAL POWER CONTRACT PROVISIONS
The GPCPs effective September 1, 2007, attached hereto;are hereby made a part of this
Contract the same as if they had been expressly set forth herein; Provided, That
Articles 1.2 and 20 through 30, shall not apply or be incorporated herein; Provided, That
Contractor transactions utilizing capacity and/or energy under this Contract with an entity
or entities that coordinate, control, monitor, or support operation of the bulk electric
system, or act as a marketplace operator of wholesale power, or procure products or
service on behalf of any such entity, including but not limited to independent system
33
Contract No. 17-SLC-0840
operators, regional system operators, transmission organizations,balancing authorities, or
successor organizations associated with the Contractor's load shall not be considered a
sale for resale.
15. CREDITWORTHINESS
The WAPA Creditworthiness Procedures effective September 1, 2017, attached hereto,
are hereby made a part of this Contract the same as if they had been expressly set forth
herein.
16. REVIEW OF FINANCIAL AND WORK PROGRAM DATA
Letter Agreement No. 92-SLC-0208 dated September 24, 1992, as supplemented, or any
superseding agreement, among the Salt Lake City Area Office of WAPA, the Upper
Colorado Region of the Bureau of Reclamation, and Colorado River Energy Distributors
Association provides for implementation of the Statement of Principles and Joint
Procedures for Contractor review of financial and work program data relating to rates of
the SLCA Integrated Projects. This Letter Agreement and supplement are attached
hereto as Attachment No. 5, and incorporated into this Contract and implemented as
provided for therein.
17. EXHIBITS AND AMENDMENTS
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 authorized
representatives of the Parties. The initial Exhibit A, and all future exhibits shall be
34
Contract No. 17-SLC-0840
attached hereto and made a part hereof, and each shall be in force and effect in
accordance with its terms unless superseded by a subsequent exhibit. This Contract may
be amended or modified only by an amendment or modification duly executed by the
Parties.
18. AUTHORIZED REPRESENTATIVES OF THE PARTIES
Each Party shall, by written notice to the other, designate the representative(s) who is
(are) authorized to act on its behalf with respect to those matters contained herein which
are the functions and responsibilities of its authorized representative(s). Either Party may
change the designation of its authorized representative(s) upon written notice.
19. AUTHORITY TO EXECUTE
The Preamble and Explanatory Recitals of this Contract are incorporated by reference
herein. 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.
35
Contract No. 17-SLC-0840
IN WITNESS WHEREOF, The Parties hereto have caused this Contract to be duly executed the
day and year first written above.
U.S. DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
By:
Title:
Address: CRSP Management Center
299 South Main Street, Suite 200
Salt Lake City, UT 84111
CITY OF ASPEN
By: \'7 3 l tet-V
Title: P6Ssk C'ViV, i V4
Address: 133 C;�' (bit �
36
Exhibit A
City of Aspen
Contract No. 17-SLC-0840
EXHIBIT A
POINTS OF DELIVERY, VOLTAGES, AND DELIVERY OBLIGATIONS
1. This Exhibit A is made this&day of2017, to be effective
October 1, 2024, under and as part of Contract No. 17-SLC-0840, dated
rS N)0 'ZOL , hereinafter called the"Contract,"and shall remain in effect until
superseded by another Exhibit A in accordance with the provisions of the Contract;
Provided,That this Exhibit A or any superseding Exhibit A shall be terminated by the
expiration of the Contract.
2. Point(s) of Delivery and Voltages: SLCA Integrated Projects firm.energy and capacity
will be delivered pursuant to the Contract at the point(s) of delivery and voltages listed
below.
Point(s) of Delivery Nominal Voltage (kV)
Hayden 138-kV
3. Contract Rate of Delivery(CROD), Sustainable Hydro Power(SHP), Available Hydro
Power(AHP), and Monthly Capacity
3.1 SLCA Integrated Projects Monthly Capacity, in kilowatts (kW), will be delivered
pursuant to the Contract in the quantities listed in the Attachment to Exhibit A,
Capacity and Energy Table below. Capacity available to the Contractor from
1
Exhibit A
City of Aspen
Contract No. 17-SLC-0840
hydro power shall be the greater of SHP or AHP. Total Monthly Capacity shall
be the sum of: (1)the greater of SHP or AHP; and (2) WRP and CDP.
3:2 Except as modified by Section 7.1.4 and/or 7.1.6 of the Contract, the Seasonal
CROD shall be as follows:
Winter Season 1,560 kW
Summer Season 988 kW
4. Seasonal SHP Energy and Monthly SHP Energy
4.1 SLCA Integrated Projects firm energy, in kilowatt-hours (kWh) will be delivered
pursuant to the Contract in the quantities listed in the Attachment to Exhibit A,
Monthly Capacity and Energy Table below, at the monthly energy amount
applicable to that billing period. Energy may not be transferred from month to
month without revision to the Attachment to this Exhibit A.
4.2 Except as modified by Section 7.1.4 and/or 7.1.6 of the Contract, the Seasonal
SHP Energy shall be as follows:
Winter Season 3,244,828 kWh
Summer Season 2,079,981 kWh
2
Exhibit A
City of Aspen
Contract No. 17-SLC-0840
5. Attachment to Exhibit A, Monthly Capacity and Energy Table(Attachment): The
Attachment may be revised from time-to-time by mutual agreement of the Parties as
evidenced by signed concurrence to the revision.
IN WITNESS WHEREOF, the Parties hereto have caused this Exhibit A to be duly executed the
day and year first written above.
U.S. DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
By:
Title:
Address: CRSP Management Center
299 South Main Street, Suite 200
Salt Lake City, UT 84111
CITY OF ASPEN
By:
Title: ) S ( (AI i
Address:
3