HomeMy WebLinkAboutA2056 - SCE EDISON POWER PURCHASE COGEN SUNRISE PLAZAV V SOUTHERN CALIFORNIA
4 E®DISON®
An EDISON INTERNATIONAL® Company
August 17, 2010
RETURN TO:
LA I L
CITY CIF P -LM SPHAGS
PDX 2743
PALM SPHiNGS, CA 92263
Jan P. Anderson
Facilities Maintenance Manager
City of Palm Springs
425 N. Civic Drive
Palm Springs, CA 92262
David R. Cox
Manager
Renewable and Alternative Power
Subject: Letter Agreement Extending Reformed Uniform Standard Offer 1 As -
Available Capacity and Energy Power Purchase Agreement between
Southern California Edison Company ("SCE") and City of Palm Springs
(Sunrise Plaza) (RAP ID 2803), Pursuant to Decision No. 07-09-040
Dear Mr. Anderson:
Pursuant to Decision No. 07-09-040 (the "Decision") issued by the California Public
Utilities Commission (the "CPUC") on September 20, 2007, this letter agreement ("PPA
Extension") memorializes the. extension of the Power Purchase Agreement, dated September 8,
2005, between Southern California Edison Company ("SCE") and City of Palm Springs (Sunrise
Plaza) ("Seller") (the "PPA"). Seller and SCE may be referred to individually as a "Party" and
collectively as the "Parties."
Under the Decision, the PPA Extension must extend the non -price terms and conditions
of the expiring contract between the Parties and continue service with the pricing set forth in the
Decision until the final contract is available. Accordingly, for the period during which the PPA
Extension is in effect, SCE will (i) extend the non -price terms and conditions of the PPA; (ii) pay
Seller an as -available capacity price beginning at $39.39/kW-year for 2010, escalating as set
forth in the Decision; and (iii) pay Seller for all energy delivered to SCE at SCE's short -ram
avoided cost of energy, which will be calculated according to the Market Index Formula ("MIF")
as finalized in CPUC Resolution E-4246.
The PPA Extension will become effective upon October 2, 2010, and will remain in
effect until the earlier of: (i) one hundred twenty (120) days following the date of a final CPUC
decision adopting a new form of a standard qualifying facility contract in accordance with the
Decision, or such longer period of time as may be granted by the CPUC for holders of extension
PPAs to elect whether they wish to enter into any such new form of contract; or (ii) the effective
date of any future power purchase agreement (other than the PPA as extended by this PPA
Extension) under which Seller sells electrical energy from the Generating Facility (as defined in
the PPA) to SCE or a third party (e.g., investor owned utility, municipal utility, energy service
provider, community choice aggregator, energy marketer, etc.).
Notwithstanding the foregoing sentence, Seller shall have the right to terminate the
PPA (as extended by this PPA Extension) without penalty, cost or any other surcharge at any
2244 Walnut Grove Ave.
Rosemead, CA 91770
626-302-9513
Fax 626-302-9622 Page 1 of 2
david.cox@sce.com
rage i of i
Kathie Hart
From: Kathie Hart
Sent: September 21, 2010 12:40 PM Q
To: william.mcqueen@sce.com'
Cc: Jan Anderson
Subject: A2055 and A2056 - Letter Agreement with Palm Springs
Importance: High
Attachments: 0650_001. pdf
Mr. McQueen:
The letter agreements with the City of Palm Springs for the Municipal Complex and Sunrise Plaza
has been fully executed by the City of Palm Springs and will be sent to you via Fed Ex this
afternoon. A courtesy copy is attached to this email.
Please feel free to contact our office if there are any questions. Your continued patience has been
appreciated.
v
Kathie Hart, CMC
Chief Deputy City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
(760) 323-8204 1 At. (760) 322-8332
Kathie.Hart@Palm5prin9sCA.9ov
Please note that City Hall is open 8 a.m. to 6 p.m. Monday through Thursday, and closed on Fridays at this time.
------------
From: City Clerk [mailto:iR4570-cm@ci.palm-springs.ca.us]
Sent: September 21, 2010 12:27 PM
To: Kathie Hart
Subject: Attached Image
09/21/10
�S Cal . Edison - Power Purch.
lrise Plaza Cogen Plant
Amendment #1
AGREEMENT #2056
MO 3682, 2-5-86
1 AMENDMENT NO. 1
AGREEMENT NUMBER 2056
2 POWER PURCHASE AGREEMENT
3 BETWEEN
4 SOUTHERN CALIFORNIA EDISON COMPANY
5 AND
6 CITY OF PALM SPRINGS - SUNRISE PLAZA
7
a 1 . PARTIES : This Amendment No. 1 to the Power Purchase
9 Agreement between the City of Palm Springs and Southern
10 California Edison Company ( "Agreement" ) is entered into by
11 City of Palm Springs ( "Seller" ) and Southern California
12 Edison Company ( "Edison" ) , a California Corporation,
13 individually "Party" , collectively "Parties" .
14 2. RECITALS: This Amendment No. 1 to the agreement is made
15 with reference to the following facts , among others:
16 2. 1 The contract capacity in the contract is to be lowered
17 from 351 kW to 225 kW.
18 2. 2 The electric service terms and conditions are to be
19 removed from the Agreement and dealt with in a
20 separate agreement "Application and Contract for
21 Electric Service" .
22 3 . AGREEMEMT: The Parties agree to amend the Agreement as
23 follows :
24 3 . 1 In Section 1 . 5, page 2, line 5 replace "351 kW" with
25 "225 kW" .
26 //
Document No. 3517C _1_
/ Ga
1 3 . 2 In Section 1 . 9 delete :
2 - lines 17 , 18, 19 , 23, 24 , & 25 on page 2
3 - lines 1 , 2 , 3 , 4 , 5, 6 , 7 , & 8 on page 3
4 3. 3 Delete Section 10. 2 , on pages 44-46
5 4 . OTHER AGREEMENT TERMS AND CONDITIONS : Except as expressly
6 amended , the terms and conditions of the original Agreement
7 shall remain in full force and effect.
8 5 . EFFECTIVE DATE: This Amendment No. 1 shall become
9 effective when it has been duly executed by the Parties .
10 6 . SIGNATURE CLAUSE: The signatories hereto represent that
11 they have been appropriately authorized to enter into this
12 Amendment No. 1 to the Agreement on behalf of the Party
13 for whom they sign. This Amendment No. 1 to the Agreement
14 is //hereby executed as of this day of
15 190'O
16
APPROVED As TO FORM: SOUTHERN C IF NIA ED SON COMPANY
17 JOHN R. BURY
Vlu Pie�ldu and enenl C"Pw
18
19 By:
19 Name: EDWARD A. MYERS, JR.
20 Title: Vice President
21
CITY OF PALM SPRINGS
22
23
24 Name: T'C.:).1,^,..^! R. KING
ATTE T Title: CITY MANAGER
25 1 BY
city Clerk
26FD BY7E-, CITY COUNCIL
6y
Document No. 3517C -2-
So. Calif Edison - Power Purch.
agr re Sunrise Plaza Cogener-
ation Plant
AGREEMENT 1k2056 (Orig 4-5-84)
1 MO 3371, 4-4-84
2 ------ -- ------ --- --
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11 POWER PURCHASE CONTRACT
12 BETWEEN
13 SOUTHERN CALIFORNIA EDISON COMPANY
14 AND
15 CITY OF PALM SPRINGS
16 SUNRISE PLAZA
17
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Document No. 1775C
2715 2133
1 TABLE OF CONTENTS
2 SECTION TITLE PAGE
3 1 PROJECT SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
4 2 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 3 TERM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4 GENERATING FACILITY. . 12
5 OPERATING OPTIONS. . 22
6 6 INTERCONNECTION FACILITIES . . . . . . . . . . . . . . . . . . . . 24
9 7 ELECTRIC LINES AND ASSOCIATED EASEMENTS . . . . . . . 26
10 8 METERING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
11 9 POWER PURCHASE PROVISIONS . . . . . . . . . . . . . . . . . . . . 30
12 10 PAYMENT AND BILLING PROVISIONS. . . . . . . . . . . . . . . . 43
13 11 TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
14 12 TERMINATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
15 13 LIABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
16 14 INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
17 15 UNCONTROLLABLE FORCES. . . . . . . . . . . . . . . . . . . . . . . . . 52
16 16 NON-DEDICATION OF FACILITIES . . . . . . . . . . . . . . . . . . 54
19 17 PRIORITY OF DOCUMENTS. . . . . . . . . . . . . . . . . . . . . . . . . 54
20 18 NOTICES AND CORRESPONDENCE. . . . . . . . . . . . . . . . . . . . 55
21 19 PREVIOUS COMMUNICATIONS. . . . . . . . . . . . . . . . . . . . . . . 55
22 20 NON-WAIVER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
23 21 DISPUTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
24 22 SUCCESSORS AND ASSIGNS. . . . . . . . . . . . . . . . . . . . . . . . 57
25 23 EFFECT OF SECTION HEADINGS . . . . . . . . . . . . . . . . . . . . 58
26 24 GOVERNING LAW. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
-i-
27 15 llm+
I TABLE OF CONTENTS
2 SECTION TITLE PAGE
3 25 MULTIPLE ORIGINALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
4 SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
5
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-11-
bm 27-15 11183
1 . PROJECT SUMMARY
1
This Contract is entered into between Southern California
2
Edison Company ( "Edison" ) and the City of Palm Springs
3
( "Seller" ) . Seller is willing to cause the construction
4
of and to operate a Qualifying Facility and to sell
5
electric power to Edison, and Edison is willing to
6
purchase electric power delivered by Seller to Edison at
the Point of Interconnection pursuant to the terms and
8
conditions set forth as follows :
9
1 . 1 All Notices shall be sent to Seller at the
10
11 following address : P .O . Box 1786
Palm Springs , CA 92263-1786
12
1 . 2 Seller' s Generating Facility:
13
a. Nameplate Rating: 650 kW.
14
b. Location : 407 S . Cerritos Dr. , Palm Springs
15
16 C . Type : Cogeneration Facility
17 d . Delivery of power to Edison at a nominal
18 4 , 160 volts .
19 e . Seller shall commence construction of the
20 Generating Facility by the Second quarter of
21 1984 .
22 1 .3 Edison Customer Service District:
23 Palm Springs District
24 36-100 Cathedral Canyon Drive
25 Cathedral City , CA 92234
26
Document 1775C -1
sE 27.15 V53
1 1 . 4 Location of Edison Operating Switching Center:
2 Devers Substation, P. 0. Box 368
3 62030 16th Street , North Palm Springs ,
4 California 92258 Phone: 619-329-6531
5 1 . 5 Contract Capacity: 351 kW
6 1 . 5. 1 Estimated as-available capacity: 0 kW.
7 1 . 6 Expected annual production : 5 ,400 ,000 kWh.
8 1 . 7 Expected Firm Operation for generating unit : 1985
9 1 . 8 Contract Term: 20 years
10 1 . 9 Operating Options pursuant to Section 5 : (Check One )
11 Operating Option I . Entire Generator output
12 dedicated to Edison. No electric service or
13 standby service required .
14 Operating Option II . Entire Generator
15 output dedicated to Edison with separate
16 electric service required .
17 a. Electric service Tariff Schedule No._
18
pursuant to Section 10.2 .
19 b. Contract demand I kW.
20 x Operating Option III . Excess generator
21 output dedicated to Edison with Seller
22 serving own load .
23 a . Electric service Tariff Schedule No. GS-2
24 pursuant to Section 10. 2.
25 b. Contract demand 0 kW.
26
Document 1775C -2-
�SE 27-1511/83
1 C. Standby Demand 286 kW pursuant to
2 Section 10 . 2.
3 d. Maximum electrical requirements expected
q 286 kW.
5 e. Standby electric service Tariff Schedule
6 No. SCG-1 pursuant to Section 10.2.
7 f . Minimum monthly charge for standby service
8 not applicable.
9 1 . 10 Interconnection Facilities Agreement pursuant to
10 Section 6 shall be:
11 - Seller Owned and Operated Basis (Appendix A. 3 )
12 1 .11 The Capacity Payment Option selected by Seller
13 pursuant to Section 9 . 1 shall be : (Check One )
14 Option A - Not Applicable
15 Option B - Firm Capacity
16 Standard Offer No. 2 Capacity Payment
17 Schedule in effect at time of Firm Operation
18 of first generating unit.
19 1 . 12 The Energy Payment Option selected by Seller
20 pursuant to Section 9 . 2 shall be : (Check One )
21 X Option 1 - Forecast of Annual Marginal Cost
22 of Energy in effect at date of execution of
23 this Contract . (Appendix C )
24 Option 2 - Not Applicable
25
26
�Doocument 1775C -3-
27-15 11183
1 For Option 1 or 2, Seller elects to receive the
2 following percentages , in 20% increments , the total
3 of which shall equal 100% :
4 _ 0 percent of Forecast of Marginal Cost of
5 Energy (Annual or Levelized ) , not to exceed
6 20% of the annual forecast for oil/natural
7 gas fueled cogenerators , and
8 100 percent of Edison 's published avoided cost
9 of energy based on Edison ' s full avoided
10 operating costs as updated periodically and
11 accepted by the Commission.
12 Option 3 - Not Applicable
13 1 . 13 Metering Location
14 Seller elects meteringlocation pursuant to
15 Section 8 as follows:
16 Seller 's side of the Interconnection Facilities.
17 Loss compensation factor is equal to 0 .7% .
18 2 . DEFINITIONS
19 When used with initial capitalizations, whether in the
20 singular or in the plural , the following terms shall have
21 the following meanings :
22 2. 1 Adjusted Capacity Price : The $/kid-yr capacity
23 purchase
p price based on the Capacity Payment
24 Schedule in effect at time of Contract execution
25 for the time period beginning on the date of Firm
26
Operation for the first generating unit and ending
Document 1775C
�E 27151V81
1 on the date of termination or reduction of Contract
2 Capacity under Capacity Payment Option B.
3 2. 2 Appendix A. 1 : Interconnection Facilities Agreement
4 -- Added Facilities Basis
5 2. 3 Appendix A. 2 : Interconnection Facilities Agreement
6 -- Capital Contribution Basis
7 2 . 4 Appendix A.3 : Interconnection Facilities Agreement
6 -- Seller Owned and Operated Basis
9 2 . 5 Appendix B : Forecast of Annual As Available
10 Capacity Payment Schedule
11 2. 6 Appendix C : Forecast of Annual Marginal Cost of
12 Energy
13 2 . 7 Appendix D: Forecast of Incremental Energy Rates .
14 2. 8 Capacity Payment Schedule (s ) : Published capacity
15 payment schedule(s ) as authorized by the Commission
16 for as-available or firm capacity.
17 2 .9 Cogeneration Facility: The facility and equipment
18 which sequentially generate thermal and electrical
19 energ
y as defined in Title 18 , Code of Federal
20 Regulations , Section 292 .202.
21 2. 10 Commission: The Public Utilities Commission of the
22 State of California.
23 2. 11 Contract: This document and Appendices , as amended
24 from time to time.
25
26
Document 1775C -5-
=CE
17as 11181
1 2.12 Contract Capacity : The electric power producing
2 capability of the Generating Facility which is
3 committed to Edison .
4 2. 13 Contract Capacity Price : The capacity purchase
5 price from the Capacity Payment Schedule approved
6 by the Commission for Capacity Payment Option B.
7 2 .14 Contract Term: Period in years commencing with
6 date of Firm Operation for the first generating
9 unit (s ) during which Edison shall purchase electric
10 power from Seller.
11 2 . 15 Current Capacity Price : The $/kW-yr capacity price
12 provided in the Capacity Payment Schedule
13 determined by the year of termination or reduction
14 of Contract Capacity and the number of years from
15 such termination or reduction to the expiration of
16 the Contract Term for Capacity Payment Option B.
17 2. 16 Edison: The Southern California Edison Company.
18 2 . 17 Edison Electric System Integrity: The state of
19 operation of Edison 's electric system in a manner
20 which is deemed to minimize the risk of injury to
21 persons and/or
P / property and enables Edison to
22 provide adequate and reliable electric service to
23 its customers .
24 2 . 18 Emergency : A condition or situation which in
25 Edison ' s sole judgment affects Edison Electric
26 System Integrity.
Document 1775C
F_ 27 1511I5'
1 2 .19 Energy : Kilowatthours generated by the Generating
2 Facility which are purchased by Edison at the Point
3 of Interconnection.
4 2 .20 Firm Operation : The date agreed on by the Parties
5 on which each generating unit (s ) of the Generating
6 Facility is determined to be a reliable source of
7 generation and on which such unit can be reasonably
8 expected to operate continuously at its effective
9 rating (expressed in kW) .
10 2.21 First Period : The period of the Contract Term
11 specified in Section 3 . 1 .
12 2 .22 Forced Outage : Any outage other than a scheduled
13 outage of the Generating Facility that fully or
14 partially curtails its electrical output.
15 2 .23 Generating Facility : All of Seller 's generators ,
16 together with all protective and other associated
17 equipment and improvements , necessaryto produce
18 electrical power at Seller 's Facility excluding
19 associated land , land rights , and interests in land .
20 2. 24 Generator: The generator(s ) and associated prime
21 mover(s ) , which are a part of the Generating
22 Facility .
23 2.25 Incremental Heat Rate (s ) : Those Edison system
24 values expressed in Btu/kWh by time of delivery for
25 the Summer and Winter Periods which are authorized
26 and adopted by the Commission to be used in the
Document 1775C _7_
MCE 27 15 11183
1 calculation of Edison 's published avoided cost of
2 energy .
3 2 .26 Interconnection Facilities : Those protection ,
a metering , electric line (s ) , and other facilities
5 required in accordance with generally accepted
6 utility industry practice and Edison ' s sole
7 judgment as reasonably exercised to permit an
8 electrical interface between Edison 's system and
9 the Generating Facility in accordance with Edison ' s
10 Tariff Rule No. 21 titled Cogeneration and Small
11 Power Production Interconnection Standards filed
12 with the Commission.
13 2. 27 Interconnection Facilities Agreement: That
14 document which is specified in Section 1 . 10 and is
15 attached hereto.
16 2. 28 KVAR: Reactive kilovolt-ampere, a unit of measure
17 of reactive power.
18 2. 29 Operate: To provide the engineering, purchasing,
19 repair, supervision, training , inspection , testing,
20 protection, operation, use, management, replacement ,
21 retirement , reconstruction, and maintenance of and
22 for the Generating Facility in accordance with
23 applicable California utility standards and good
24
engineering practices.
25 2 .30 02erating Representatives: Individuals ) ap
pointed
26 b each Part for the Y y purpose of securing effective
Document 1775C
,-CE 271511183
1 cooperation and interchange of information between
2 the Parties in connection with administration and
3 technical matters related to this Contract.
4 2 .31 Parties : Edison and Seller.
5 2. 32 Party: Edison or Seller.
6 2 .33 Peak Months : Those months which the Edison annual
7 system peak demand could occur. Currently , but
6 subject to change with notice, the peak months for
9 the Edison system are June, July, August , and
10 September.
11 2 .34 Point of Interconnection : The point where the
12 transfer of electrical energy between Edison and
13 Seller takes place.
14 2 .35 Project : The Generating Facility and
15 Interconnection Facilities required to permit
16 operation of Seller ' s Generator in parallel with
17 Edison 's electric system.
1s 2 .36 Protective Apparatus : That equipment and ppapparatus
t9 installed by Seller and/or Edison pursuant to
20 Section 4 . 2.
21 2.37 Qualifying Facility: Cogeneration or Small Power
22 Production Facility which meets the criteria as
23 defined in Title 18 , Code of Federal Regulations ,
24 Section 292 .201 through 292 .207.
25
26
�Dpocument 1775C -9-
�+ 271511182
1 2 .38 Renewable Resources : Wind parks , small
2 hydroelectric , solar, and geothermal resources
3 which produce electric power.
4 2 .39 Second Period: The period of the Contract Term
5 specified in Section 3 . 2 .
6 2 .40 Seller: The Party identified in Section 1 . 0 .
7 2 .41 Seller ' s Facility: The premises and equipment of
6 Seller located as specified in Section 1 . 2 .
9 2 .42 Small Power Production Facility: The facilities
10 and equipment which use biomass , waste , or
11 Renewable Resources , including wind , solar,
12 geothermal , and water, to produce electrical energy
13 as defined in Title 18 , Code of Federal..
14 Regulations , Section 292 .201 through 292. 207.
15 2 .43 Standby Demand : Seller ' s electrical load
16 requirement that Edison is expected to serve when
17 Seller 's Generating Facility is not available.
18 2. 44 Summer Period : Defined in Edison 's Tariff Schedule
t9 No. TOU-8 as now in effect or as may hereafter be
20 authorized by the Commission.
21 2 .45 Tariff Schedule No. TOU-8 : Edison 's time-of-use
22 energy tariff for electric service exceeding
23 500 kW, as now in effect or as may hereafter be
24 authorized by the Commission.
25 2 .46 Uncontrollable Forces : Any occurrence beyond the
26 control of a Party which causes that Party to be
Document 1775C -10-
D- 27 15 11183
1 unable to perform its obligations hereunder and
2 which a Party has been unable to overcome by the
3 exercise of due diligence, including but not
4 limited to flood , drought , earthquake, storm, fire ,
5 pestilence, lightning and other natural catastrophes ,
6 epidemic, war, riot , civil disturbance or
7 disobedience, strike, labor dispute, action or
8 inaction of legislative , judicial , or regulatory
9 agencies , or other proper authority, which may
10 conflict with the terms of this Contract , or
11 failure, threat of failure or sabotage of
12 facilities which have been maintained in accordance
13 with good engineering and operating practices in
14 California.
15 2 .47 Winter Period : Defined in Edison 's Tariff Schedule
16 No. TOU-8 as now in effect or as may hereafter he
17 authorized by the Commission.
18 3. TERM
19 This Contract shall be effective upon execution by the
20 Parties and shall remain effective until either Party
21 gives 90 days prior written notice of termination to the
22 other Party, except that such notice of termination shall
23 not be effective to terminate this Contract prior to
24 expiration of the Contract Term specified in Secton 1 .8 .
25 3. 1 The First Period of the Contract Term shall
26 commence upon date of Firm Operation but not later
Document 1775C -11-
D- 271511183
1 than 5 years from the date of execution of this
2 Contract .
3 a . If the Contract Term specified in Section 1 . 8
4 is 15 years , the First Period of the Contract
5 Term shall be for 5 years .
6 b. If the Contract Term specified in Section 1 .8
7 is 20, 25, or 30 years , the First Period of the
6 Contract Term shall be for 10 years .
9 C . For Energy Payment Option 3 only , the First
10 Period of the Contract Term shall be 15 years ,
11 but shall not extend beyond 1998 .
12 3 . 2 The Second Period of the Contract Term shall
13 commence upon expiration of the First Period and
14 shall continue for the remainder of the Contract
15 Term.
16 4 . GENERATING FACILITY
17 4 . 1 Ownership
16 The Generating Facility shall be owned by the City
19 of Palm Springs Public Facilities Corporation .
20 4 . 2 Design
21 4.2 . 1 Seller, at no cost to Edison, shall :
22 a . Design the Generating Facility.
23 b. Acquire all permits and other approvals
24 necessary for the construction,
25 operation, and maintenance of the
26 Generating Facility.
�Dpocument 1775C _12_
�+ 27-15 11183
I C . Complete all environmental impact
2 studies necessary for the construction ,
3 operation, and maintenance of the
a Generating Facility.
5 d. Furnish and install the relays , meters ,
6 power circuit breakers , synchronizer,
7 and other control and Protective
8 Apparatus as shall be agreed to by the
9 Parties as being necessary for proper
10 and safe operation of the Project in
11 parallel with Edison 's electric system.
12 4 . 2 . 2 Edison shall have the right to:
13 a. Review the design of the Generating
14 Facility ' s electrical system and the
15 Seller 's Interconnection Facilities.
16 Such review shall be done in a
17 reasonable and timely manner and may
18 include, but not be limited to, the
19 Generator, governor, excitation system,
20 synchronizing equipment ,
y g e q pment , protective
21 relays , and neutral grounding.
22 b. Request modifications to the design of
23 the Generating Facility's electrical
24 system and the Seller ' s Interconnection
25 Facilities . Such modifications shall be
26 required if , and only if , necessary to
�Dpocument 1775C -13-
C 27 15 11183
maintain Edison Electric System
2 Integrity when in parallel with the
3 Edison electric system. If Seller does
4 not agree to such required
5 modifications , resolution of the
6 difference between the Parties shall be
7 made pursuant to Section 21 .
g 4 . 3 Construction
g Edison shall have the right to review, Seller 's
10 construction schedule, to consult with Seller
11 regarding the construction schedule , and to
12 monitor the construction and start-up of the
13 Project. This right of review, consultation, and
14 monitoring may not be excercised so as to delay
15 construction and start-up of the project. Seller
16 shall have the right to review and to consult with
17 Edison regarding Edison 's schedule for performance
16 of obligations of Edison under this Contract.
19 Seller shall notify Edison, of changes in Seller 's
20 Construction Schedule which may significantly
21 affect the date of Firm Operation and Edison shall
22 make a best effort to comply with such changes .
23 4 .4 Operation
24 4.4 . 1 The Generating Facility and Seller 's
25 Protective Apparatus shall be operated and
26 maintained in accordance with applicable
Document 1775C -14-
�E 2715 nie3
California utility industry standards and
2 good engineering practices with respect to
3 synchronizing, voltage and reactive power
4 control . Edison shall have the right to
5 reasonable monitoring of the operation of
6 the Project . Edison may require changes in
7 Seller 's method of operation if such changes
8 are necessary, in Edison ' s sole judgment , to
9 maintain Edison Electric System Integrity
10 and are consistent with generally accepted
11 utility industry practice.
12 4 .4 . 2 Seller shall notify in writing Edison ' s
13 Operating Representative at least 14 days
14 prior to:
15 (a ) the intial testing of Seller 's
16 Protective Apparatus ; and
17 (b ) the initial parallel operation of
18 Seller ' s Generators with Edison 's
19 electrical system.
20 Edison shall have the right to have a
21 representative present at each event.
22 4 .4 . 3 Edison shall have the right to require
23 Seller to disconnect the Generator from the
24 Edison electric system or to reduce the
25 electrical output from the Generator into
26 the Edison electric system, whenever Edison
Document 1775C -15-
SCE 27 15 11I63
1 determines , in its sole judgement, that such
2 a disconnection is necessary to facilitate
3 maintenance of Edison 's facilities , or to
4 maintain Edison Electric System Integrity .
5 If Edison requires Seller to disconnect the
6 Generator from the Edison electric system
7 pursuant to this Section 4 .4 .3 , Seller shall
3 have the right to continue to serve its
9 total electrical requirements provided
10 Seller has elected Operating Option III .
11 Each Party shall endeavor to correct , within
12 a reasonable period , the condition on its
13 system which necessitates the disconnection
14 or the reduction of electrical output . The
15 duration of the disconnection or the
16 reduction in electrical output shall be
17 limited to the period of time such a
16 condition exists . Upon written request of
19 Seller, and in the event that there is a
20 disconnection, Edison shall provide a full
21 explanation of the causes and basis for the
22 disconnection to the Seller within 30 days
23 of receipt of said request.
24 4 .4 .4 The Generating Facility shall be operated
25 with all of Seller 's Protective Apparatus in
26 service whenever the Generator is connected
Document 1775C -16-
271511183
1 to or is operated in parallel with the
2 Edison electric system., Any deviation for
3 brief periods of emergency or maintenance
4 shall only be by agreement of the Parties .
5 4 .4 . 5 Each Party shall keep the other Party 's
6 Operating Representative informed as to the
7 operating schedule of their respective
8 facilities affecting each other ' s operation
9 hereunder, including any reduction in
10 Contract Capacity availability . In
11 addition, Seller shall provide Edison with
12 reasonable advance notice regarding its
13 scheduled outages including any reduction in
14 Contract Capacity availability . Reasonable
15 advance notice is as follows :
16 SCHEDULED OUTAGE ADVANCE NOTICE
EXPECTED DURATION TO EDISON
17 Less than one day 24 Hours
One day or more
18 (except major overhauls ) 1 Week
Major overhaul 6 Months
19
4 .4 . 6 Notification by each Party's Operating
20
Representative of outage date and duration
21
should be directed to the other Party 's
22
Operating Representative by telephone.
23
4 .4 .7 Seller shall not schedule major overhauls
24
during Peak Months .
25
26
Document 1775C _17_
b- 271 5 11183
1 4 .4 . 8 Seller shall maintain an operating log at
2 Seller 's Facility with records of: real and
3 reactive power production ; changes in
4 operating status , outages , Protective
5 Apparatus operations ; and any unusual
6 conditions found during inspections .
7 Changes in setting shall also be logged for
8 Generators which are "block-loaded" to a
9 specific kW capacity . In addition, Seller
10 shall maintain records applicable to the
11 Generating Facility, including the
12 " electrical characteristics of the Generator
13 and settings or adjustments of the Generator
14 control equipment and protective devices .
15 Information maintained pursuant to this
16 Section 4. 4 . 8 shall be provided to Edison',
17 within 30 days of Edison 's request.
18 4 .4 . 9 If , at any time , Edison has reasonable
19 doubts about the integrity of any of
20 Seller 's Protective Apparatus , based on
21 accepted utility industry practice, and
22 believes that such loss of integrity would
23 impair the Edison Electric System Integrity,
24 Seller shall demonstrate, to Edison 's
25 satisfaction, the correct calibration and
26 operation of the equipment in Pquestion.
Document 1775C _18_
D- 27 15 11183
1 4 .4 . 10 Seller shall test all protective devices
2 specified in Section 4 . 2 with qualified
3 Edison personnel present at intervals not to
4 exceed four years .
5 4 .4 . 11 Seller shall, to the extent possible,
6 provide reactive power for its own
7 requirements , and where applicable , the
6 reactive power losses of interfacing
9 transformers . Seller shall not deliver
10 excess reactive power to Edison unless
11 otherwise agreed upon between the Parties.
12 4 .4 .12 The Seller warrants that the Generating
13 Facility meets the requirements of a
14 Qualifying Facility as of the effective date
15 of this Contract and continuing through the
16 Contract Term.
17 4 .4 .13 The Seller warrants that the Generating
16 Facility shall at all times conform to all
19 applicable laws and regulations . Seller
20 shall obtain and maintain any governmental
21 authorizations and permits for the continued
22 operation of the Generating Facility . If at
23 any time Seller does not hold such
24 authorizations and permits , Seller agrees to
25 reimburse Edison for any loss which Edison
26 incurs as a result of the Seller 's failure
Document 1775C -19-
SCE 27 1511183
to maintain governmental authorization and
2 permits .
3 4 . 4 . 14 At Edison 's request, Seller shall make all
4 reasonable effort to deliver power at an
5 average rate of delivery at least equal to
6 the Contract Capacity during periods of
7 Emergency. In the event that the Seller has
8 previously scheduled an outage coincident
9 with an Emergency , Seller shall make all
10 reasonable efforts to reschedule the
11 outage. The notification periods listed in
12 Section 4 . 4 . 5 shall be waived by Edison if
13 Seller reschedules the outage.
14 4 .4 .15 Seller shall demonstrate the ability to
15 provide Edison the specified Contract Capacity
16 within 30 days of the date of Firm Operation .
17 Thereafter, at least once per year at Edison ' s
18 request , Seller shall demonstrate the ability
19 to provide Contract Capacity for a reasonable
20 period of time as required by Edison.
21 Seller 's demonstration of Contract Capacity
22 shall be at Seller ' s expense and conducted
23 at a time and pursuant to p procedures
24 mutually agreed upon by the Parties . If
25 Seller fails to demonstrate the ability to
26 provide the Contract Capacity, the Contract
SCE
1775C _20_
C 27 15 11183
•
1 Capacity shall be reduced by agreement of
2 the Parties pursuant to Section 9.1 .2 . 6 .
3 4 . 5 Maintenance
4 4. 5. 1 Seller shall maintain the Generating Facility
5 in accordance with applicable California
6 utility industry standards and good
7 engineering and operating practices . Edison
8 shall have the right to reasonable monitoring
9 of such maintenance of the Generating
16 Facility. Seller shall maintain and deliver
11 a maintenance record of the Generating
12 Facility to Edison 's Operating Representatives
13 within 30 days of request therefor.
14 4 .5. 2 Seller shall make a reasonable effort to
15 schedule routine maintenance during Off-Peak
16 Months and expected minimal generation
17 periods for renewable resources . Outages
18 for scheduled maintenance shall not exceed a
19 total of 30 peak hours for the Peak Months .
20 4 .5 .3 The allowance for scheduled maintenance is
21 as follows:
22 a . Outage periods for scheduled maintenance
23 shall not exceed 840 hours ( 35 days ) in
24 any 12-month period. This allowance may
25 be used in increments of an hour or longer
26 on a consecutive or nonconsecutive basis .
Document 1775C -21-
D_ 27-1511183
•
b. Seller may accumulate unused maintenJa
2 hours on a year-to-year basis up to 3 maximum of 1 ,080 hours ( 45 days ) . T
4 _ accrued time must be used consecutively
5 and only for major overhauls.
6 4 . 6 Any review by Edison of the design, construction ,
7 operation, or maintenance of the Project is solely
8 for the information of Edison . By making such
9 review, Edison makes no representation as to the
10 economic and technical feasibility, operational
11 capability, or reliability of the Project. Seller
12 shall in no way represent to any third party that
13 any such review by Edison of the Project , including
14 but not limited to, any review of the design,
15 construction, operation, or maintenance of the
16 Project by Edison is a representation by Edison as
17 to the economic and technical feasibility,
18 operational capability , or reliability of said
19 facilities. Seller is solely responsible for
20 economic and technical feasibility
, operational
21 capability,p y, or reliability thereof .
22 5. OPERATING OPTIONS
23 5. 1 Seller shall elect in Section 1 .9 to Operate its
24 Generating Facility in paralled with Edison 's
25 electric system
y pursuant to one of the following
26
options:
SCE
1775C -22-
C 27-15 11183
•
a. Operating Option I : Seller dedicates the
2 entire Generator output to Edison with no
3 electrical service required from Edison.
4 b. Operating Option II : Seller dedicates the
5 entire Generator output to Edison with
6 electrical service required from Edison.
7 C . Operating Option III : Seller dedicates to
8 Edison only that portion of the Generator
9 output in excess of Seller 's electrical service
10 requirements . As much as practicable, Seller
11 intends to serve its electrical requirements
12 from the Generator output and will require
13 electrical standby from Edison as designated in
14 Section 1 .9.
15 5 .2 After expiration of the First Period of the
16 Contract Term, Seller may change the Operating
17 Option, but not more than once per year upon at
18 least 90 days prior written notice to Edison. A
19 reduction in Contract Capacity as a result of a
20 change in operating options shall be subject to
21 Section 9. 1 .2 . 6 . Edison shall not be required to
22 remove or reserve capacity of any appendant
23 facilities as may be owned by Edison and made idle
24 by a change in operating options . Edison may
25 dedicate any such idle appendant facilities at any
26 time to serve other customers or to interconnect
�Dopcument 1775C -23-
2715 11183
I with other electric power sources . Edison shall
2 process requests for changes of operating option in
3 the chronological order received.
4 5 .2 .1 When the Seller wishes to reserve appendant
5 facilities paid for by the Seller, owned by
6 Edison, but idled by a change in operation
7 option , Edison may impose a special
a facilities charge related to the operation
9 and maintenance of such appendant
10 facilities . When the Seller no longer needs
11 said Appendant Interconnection Facilities
12 for which it has paid, the Seller shall
13 receive credit for the net salvage value of
14 such Appendant Interconnection Facilities .
15 If Edison is able to make use of these
16 facilities to serve other customers , the
17 Seller shall receive the fair market value
16 of the facilities determined as of the date
19 the Seller either decides no longer to use
20 said facilities or fails to pay the required
21 maintenance fee.
22 6. INTERCONNECTION FACILITIES
23 6 . 1 The Parties shall execute an Interconnection
24 Facilities Agreement selected by Seller in
25 Section 1 . 10, covering the design, installation ,
26 operation and maintenance of the Interconnection
Document 1775C -24-
,-r-E 27 15 11/83
0
1 Facilities required in Edison ' s sole judgment , to
2 permit an electrical interface between the Parties
3 pursuant to Edison ' s Tariff Rule No. 21 .
4 6 .2 The cost for the appendant facilities set forth in
5 the appendices specified in Section 1 .10 , are
6 estimates only for Seller 's information and will be
7 adjusted to reflect recorded costs after
8 installation is complete; except that , upon
9 Seller 's written request to Edison, Edison shall
10 provide a binding estimate which shall be the basis
11 for the appendant facilities cost in the
12 Interconnection Facilities Agreement executed by
13 the Parties .
14 6 . 3 The nature of the appendant facilities and the
15 Point of Interconnection shall be set forth either
16 by equipment lists or appropriate one-line diagrams
17 and shall be attached to the appropriate appendix
18 specified in Section 1 .10 .
19 6 .4 The design, installation, operation, maintenance,
20 and modifications of the Interconnection Facilities
21 shall be at Seller ' s expense, as specified in the
22 Interconnection Facilities Agreement selected by
23 seller in Section 1 . 10.
24 6 .5 Seller shall not commence parallel operation of the
25 GeneratingFacility until written Y approval for
26 operation of the Interconnection Facilities has
Document 1775C -25-
,-CE 2715111BI
•
1 been received from Edison. Such written approval
2 shall not be unreasonably withheld or delayed. The
3 Seller shall notify Edison at least forty-five days
4 prior to the initial energizing of the Point of
5 Interconnection. Edison shall have the right to
6 inspect the Interconnection Facilities within
7 thirty days of receipt of such notice. If the
8 facilities do not pass Edison ' s inspection , Edison
9 shall provide in writing the reasons for this
10 failure within five days of the inspection.
11 6 . 6 Seller, at no cost to Edison, shall acquire all
12 permits and approvals and complete all
13 environmental impact studies necessary for the
14 design, installation, operation , and maintenance of
15 the Interconnection Facilities.
16 7. ELECTRIC LINES AND ASSOCIATED EASEMENTS
17 7 . 1 Edison shall , as it deems necessary or desirable ,
18 build electric lines , facilities and other
19 equipment, both overhead and underground, on and
20 off Seller 's Facility, for the purpose of effecting
21 the agreements contained in this Contract. The
22 physical location of such electric lines,
23 facilities and other equipment on Seller 's Facility
24 shall be determined by agreement of the Parties .
25 7 .2 Seller shall reimburse Edison for the cost of
26 acquiring
q g property rights off Sellers ' s Facility
Document 1775C -26-
SCE 27 1511183
• r
1 required by Edison to meet its obligations under
2 this Contract .
3 7.3 Seller shall grant to Edison, without cost to
4 Edison, and by an instrument of conveyance,
5 acceptable to Edison , rights of way, easements and
6 other property interests necessary to construct,
7 reconstruct , use, maintain, alter, add to, enlarge ,
8 repair, replace, inspect and remove, at any time,
9 the electric lines , facilities or other equipment ,
10 required, installed, and owned by Edison to effect
11 the agreements contained in the Contract. The
12 rights of ingress and egress at all reasonable
13 times necessary for Edison to perform the
14 activities contemplated in the Contract.
15 7 .4 The electric lines , facilities , or other equipment
16 referred to in this Section 7 installed by Edison
17 on or off Seller ' s Facility shall be and remain the
18 property of Edison.
19 7 . 5 Edison shall have no obligation to Seller for any
20 delay or cancellation due to inability to acquire a
21 satisfactory right of way, easements , or other
22 property interests .
23 8 . METERING
24 8 . 1 All meters and equipment used for the measurement
25 of electric power for determining Edison 's payments
26 to Seller pursuant to this Contract shall he
Document 1775C _27_
bCE 27 15 11183
•
1 provided, owned, and maintained by Edison at
2 Seller 's expense in accordance with Edison 's Tariff
3 Rule No. 21 .
4 8 .2 All meters and equipment used for billing Seller
5 for electric service provided to Seller by Edison
6 under Operating Options II or III shall be
7 provided, owned , and maintained by Edison at
8 Edison 's expense in accordance with Edison 's Tariff
9 Rule No. 16.
10 8 .3 The meters and equipment used for measuring the
11 Energy sold to Edison shall be located on the side
12 of the Interconnection Facilities as specified by
13 Seller in Section 1 .13 . If the metering equipment
14 is located on Seller 's side of the Interconnection
15 Facilities , then a loss compensation factor agreed
16 upon by the Parties shall be applied .
t7 8 .4 For purposes of monitoring the Generator operation
18 and the determination of standby charges , Edison
19 shall have the right to require, at Seller 's
20 expense, the installation of generation metering.
21 Edison may also require the installation of
22 telemetering equipment at Seller 's expense for
23 GeneratingFacilities equal to or q greater than 10
24 MW. Edison may require the installation of
25 telemetering equipment at Edison 's expense for
26 Generating Facilities less than 10 MW.
�Dpocument 1775C _28_
�+ 2i-1511183
1 8 . 5 Edison 's meters shall be sealed and the seals shall
2 be broken only when the meters are to be inspected ,
3 tested, or adjusted by Edison. Seller shall he
4 given reasonable notice of testing and have the
5 right to have its Operating Representative present
6 on such occasions .
7 8 .6 Edison 's meters installed pursuant to this Contract
8 shall be tested by Edison, at Edison ' s expense, at
9 least once each year and at any reasonable time
10 upon request by either Party, at the requesting
11 Party 's expense. If Seller makes such request ,
12 Seller shall reimburse said expense to Edison
13 within thirty days after presentation of a bill
14 therefore. Such reimbursement need not be made if
15 testing requested by seller shows a metering
16 inaccuracy in excess of 2%.
17 8 . 7 Metering equipment found to be inaccurate shall be
18 repaired , adjusted , or replaced by Edison such that
19 the metering accuracy of said equipment shall he
20 within two percent . If metering equipment
21 inaccuracy exceeds two percent, the correct amount
22 of Energy and Contract Capacity delivered during
23 the period of said inaccuracy shall be estimated by
24 Edison and agreed upon by the Parties.
25
26
Document 1775C _29_
SCE 2]15 11l83
0
1 9. POWER PURCHASE PROVISIONS
2 Prior to the date of Firm Operation, Seller shall be paid
3 for Energy only pursuant to Edison 's published avoided
4 cost of energy based on Edison 's full avoided operating
5 cost as periodically updated and accepted by the
6 Commission. If at any time Energy can be delivered to
7 Edison and Seller is contesting the claimed jurisdiction
8 of any entity which has not issued a license or other
9 approval for the Project, Seller, in its sole discretion
10 and risk , may deliver Energy to Edison and for any Energy
11 purchased by Edison Seller shall receive payment from
12 Edison for ( i ) Energy pursuant to this Section , and ( ii )
13 as-available capacity based on a capacity price from the
14 Standard Offer No. 1 Capacity Payment Schedule as
15 approved by the Commission. Unless and until all
16 required licenses and approvals have been obtained ,
17 Seller may discontinue deliveries at any time.
18 9 . 1 Capacity Payments
19 Seller shall sell to Edison and Edison shall
20 purchase from Seller capacity pursuant to the
21 Capacity Payment Option selected by Seller in
22 Section 1 .11 . The Capacity Payment Schedules will
23 be based on Edison 's full avoided operating costs
24 as approved by the Commission throughout the life
25 of this Contract. Data used to derive Edison 's
26 full avoided costs will be made available to the
�Dpocument 1775C -30-
27-1511/83
1 Seller, to the extent specified by Seller upon
2 request .
3 9 .1 . 1 Capacity Payment Option A -- As Available
4 Capacity . Not applicable.
5 9 .1 . 2 Capacity Payment Option B -- Firm Capacity
6 Purchase
7 Seller shall provide to Edison for the
6 Contract Term the Contract Capacity
9 specified in Section 1 . 5, or as adjusted
10 pursuant to Section 9 . 1 . 2 . 6 , and Seller
11 shall be paid as follows:
12 9 . 1 .2 . 1 If Seller meets the performance
13 requirements set forth in
14 Section 9 . 1 .2. 2 , Seller shall be
15 paid a Monthly Capacity Payment ,
16 beginning from the date of Firm
17 Operation equal to the sum of
16 the on-peak , mid-peak , and
19 off-peak Capacity Period
20 Payments . Each capacity period
21 payment is calculated pursuant
22 to the following formula:
23 Monthly Period Capacity = A x B x C x D
24 /�Payment
25
26
Document 1775C -31-
2715 11183
1 Where A = Contract Capacity Price
2 specified in Section 1 .11 based
3 on the Standard Offer No. 2
4 Capacity Payment Schedule.
5 B = Conversion factors to convert
6 annual capacity prices to
7 monthly payments by time of
8 delivery as specified in
g Standard Offer No. 2 Capacity
10 Payment Schedule and subject to
11 periodic modifications as
12 approved by the Commission.
13 C = Contract Capacity specified in
14 Section 1 .5 .
15 D = Period Performance Factor, not
16 to exceed 1 .0 , calculated as
17 follows:
18 Period kWh purchased
by Edison limited by the
19 level of Contract Capacity
0 .8 x Contract Capacity x (Period
20 Hours minus Maintenance Hours
Allowed in Section 4 .5. )
21
22
23
24
25
26
Document 1775C -32-
2715 11183
1 9 . 1 .2 . 2 Performance Requirements
2 To receive the Monthly Capacity
3 Payment in Section 9 . 1 . 2.1 , Seller
4 shall provide the Contract Capacity
5 in each Peak Month for all on-peak
6 hours as such peak hours are defined
7 in Edison ' s Tariff Schedule No. TOU-8
6 on file with the Commission , except
9 that Seller is entitled to a 20%
10 allowance for Forced Outages for each
11 Peak Month . Seller shall not be
12 subject to such performance
13 requirements for the remaining hours
14 of the year.
15 a . If Seller fails to meet the
16 requirements specified in
17 Section 9 . 1 .2. 2, Seller, in
15 Edison 's sole discretion , may be
19 laced on p probation for a period
20 not to exceed 15 months . If
21 Seller fails to meet the
22 requirements specified in
23 Section 9 . 1 .2 . 2 during the
24 probationary period, Edison may
25 derate the Contract Capacity to
26 the greater of the capacity
.SCE D ocument 1775C -33-
27-1511183
1 actually delivered during the
2 probationary period, or the
3 capacity at which Seller can
4 reasonably meet such
5 requirements . A reduction in
6 Contract Capacity as a result of
7 this Section 9 . 1 .2 . 2 shall be
6 subject to Section 9 . 1 . 2 .5.
5 b. If Seller fails to meet the
10 requirements set forth in
11 Section 9 .1 . 2 . 2 due to a Forced
12 Outage on the Edison system or a
13 request to reduce or curtail
14 delivery under Section 9 .4 , Edison
15 shall continue Monthly Capacity
16 Payments pursuant to Capacity
17 Payment Option B . The Contract
18 Capacity curtailed shall be
19 treated the same as scheduled
20 maintenance outages in the
21 Calculation of the Monthly
22 Capacity Payment.
23 9 .1 .2. 3 If Seller is unable to provide
24 Contract Capacity due to
25 Uncontrollable Forces , Edison shall
26 continue Monthly Capacity Payments
Document 1775C -34-
27 15 11183
for 90 days from the occurrence of
2 the Uncontrollable Force . Monthly
3 Capacity Payments payable during a
4 period of interruption or reduction
5 by reason of an Uncontrollable Force
6 shall be treated the same as
7 scheduled maintenance outages.
8 9 .1 . 2 . 4 Capacity Bonus Payment
9 For Capacity Payment Option B , Seller
10 may receive a Capacity Bonus Payment
11 as follows :
12 a . Bonus During Peak Months -- For a
13 Peak Month , Seller shall receive a
14 Capacity Bonus Payment if ( i ) the
15 requirements set forth in
16 Section 9. 1 . 2 .2 have been met,
17 and ( ii ) the on-peak capacity
18 factor exceeds 85% .
19 b. Bonus During Non-Peak
20 Months -- For a non-peak month ,
21 Seller shall receive a Capacity
22 Bonus Payment if ( i ) the
23 requirements set forth in
24 Section 9.1 .2 .2 have been met,
25 (ii ) the on-peak capacity factor
26 for each Peak Month during the
Document 1775C -35-
.5CE 27-1511183
1 year was at least 85% , and
2 ( iii ) the on-peak capacity factor
3 for the non-peak month exceeds 850 .
a c. For any eligible month, the
5 Capacity Bonus Payment shall be
6 calculated as follows:
7 Capacity Bonus Payment = A x B x C x D
8 Where A = ( 1 . 2 x On-Peak Capacity Factor) - 1 .02
9 Where the On-Peak Capacity Factor, not to
10 exceed 1 .0 , is calculated as follows :
11 Period kWh purchased by Edison
limited by the level of Contract
12 Capacity
(Contract Capacity ) x (Period Hours
13 minus Maintenance Hours Allowed in
14
Section 4 . 5)
15 B = Contract Capacity Price specified in
16
Section 1 . 11 for Capacity Payment
17 Option B
18 C = 1/12
19 D = Contract Capacity specified in
20
Section 1 .5
21
d. When Seller is entitled to
22 receive a Capacity Bonus
23 Payment , the Monthly Capacity
24
Payment shall be the sum of the
25
Monthly Capacity Payment
26 pursuant to Section 9.1 . 2 . 1 and
SCE D ocument 1775C -3F-
27 15 11183
1 the Monthly Capacity Bonus
2 Payment pursuant to this Section .
3 e. For Capacity Payment Option B ,
4 Seller shall be paid for
5 capacity in excess of Contract
6 Capacity based on the as-
7 available capacity price in
8 Standard Offer No. 1 Capacity
9 Payment Schedule, as updated and
10 approved by the Commission .
11 9 .1 . 2 . 5 Capacity Reduction
12 a. Seller may reduce the Contract
13 Capacity specified in
14 Section 1 . 5, provided that
15 Seller gives Edison 30 days '
16 prior written notice.
17 b. Subject to Section 10 .3 , Seller
18 shall refund to Edison with
19 interest at the current
20 published Federal Reserve Board
21 three months prime commercial
22 paper rate an amount equal to
23 the difference between ( i ) the
24 accumulated Monthly Capacity
25 Payments paid by Edison pursuant
26 to Capacity Payment Option B up
Document 1775C -37-
CC 27-15 11183
1 to the time the reduction notice
2 is received by Edison, and
3 ( ii ) the total capacity
p y payments
4 which Edison would have paid if
5 based on the Adjusted Capacity
6 Price .
7 C . From the date the reduction
8 notice is received to the date
9 of actual capacity reduction,
10 Edison shall make capacity
11 payments based on the Adjusted
12 Capacity Price for the amount of
13 Contract Capacity being reduced .
14 d . Seller may reduce Contract
15 Capacity without the notice
16 prescribed in Section 9 . 1 . 2 . 5(a ) ,
17
provided that Seller shall
78 refund to Edison the amount
19 specified in Section 9 . 1 . 2 . 5(b)
20 and an amount equal to: ( i ) the
21 amount of Contract Capacity
22 being reduced , times ( ii ) the
23 difference between the Current
24
Capacity Price and the Contract
25
Capacity Price , times (iii ) the
26
number of years and fractions
Document 1775C _38_
SM 27d511183
1 thereof (not less than one year )
2 by which the Seller has been
3 deficient in giving prescribed
4 notice. If the Current Capacity
5 Price is less than the Contract
6 Capacity Price , only payment
7 under Section 9 . 1 . 2 . 5(b ) shall
a be due to Edison.
9 9 . 1 .2 . 6 Adjustment to Contract Capacity
10 The Parties may agree in writing at
ii any time to adjust the Contract
12 Capacity. Seller may reduce the
13 Contract Capacity pursuant to
14 Section 9. 1 . 2 .5 . Seller may
i5 increase the Contract Capacity up to
16 650 kW before the year 1990 , with
17 30-day notice , without Edison 's
18 approval or with Edison 's approval
19 at any time . Thereafter Seller shall
20 receive payment for the increased
21 capacity in accordance with the
22 Contract Capacity Price for the
23 Capacity Payment Option selected by
24 Seller for the remaining Contract
25 Term.
26
�Doocument 1775C -39-
SJ 271511103
1 9 .2 Energy Payments - First Period
2 During the First Period of the Contract Term, Seller
3 shall be paid a Monthly Energy Payment for the
4 Energy delivered by the Seller to Edison at the
5 Point of Interconnection pursuant to the Energy
6 Payment Option selected by Seller in Section 1 . 12 ,
7 as follows . ( Data used to derive Edison 's Energy
8 payments for the First Period will be made available
9 to the Seller, to the extent specified by Seller,
10 upon request. )
11 9 .2 . 1 Energy Payment Option 1 -- Forecast of Annual
12 Marginal Cost of Energy . If Seller selects
13 Energy Payment Option 1 , then, during the
14 First Period of the Contract Term, Seller
15 shall be paid a Monthly Energy Payment for
16 Energy delivered by Seller and purchased by
17 Edison during each month in the First Period
16 of the Contract Term pursuant to the
19 following formula:
20 Monthly Energy Payment = (A x D) + (B x D) + (C x D)
21 Where A = kWh purchased by Edison during
22 on-peak periods defined in
23 Edison ' s Tariff Schedule
24
No. TOU-8 .
25
26
Document 1775C -40-
b"- 271511183
B = kWh purchased by Edison during
2 mid-peak periods defined in
3 Edison ' s Tariff Schedule
4 No. TOU-8 .
5 C = kWh purchased by Edison during
6 off-peak periods defined in
7 Edison ' s Tariff Schedule
8 No. TOU-8 .
9 D = The sum of :
10 ( i ) the appropriate time-
11 differentiated energy price from
12 the Forecast of Annual Marginal
13 Cost of Energy , multiplied by
14 the decimal equivalent of the
15 percentage of the forecast
16 specified in Section 1 . 12 , and
17 (ii ) the appropriate time-
18 differentiated energy price from
19 Edison ' s published avoided cost
20 of energy multiplied by the
21 decimal equivalent of the
22 percentage of the published
23
energy price specified in
24 Section 1 .12.
25 9 . 2 . 2 Energy Payment Option 2 -- Levelized Forecast
26 Not Applicable
Document 1775C -41-
SCE 2➢15 11183
•
1 9 . 2 .3 Energy Payment Option 3 - Forecast of
2 Incremental Energy Rate ( IER)
3 Not Applicable
4 9 .3 Energy Payments - Second Period
5 During the Second Period of the Contract Term,
6 Seller shall be paid a Monthly Energy Payment for
7 Energy delivered by Seller and purchased by Edison
8 at a rate equal to 100% of Edison ' s published
9 avoided cost of energy based on Edison 's full
10 avoided operating cost as updated periodically and
11 accepted by the Commission, pursuant to the
12 following formula:
13 Monthly Energy Payment = kWh purchased by Edison for each
14 on-peak , mid-peak , and off-peak
1s time period defined in Edison 's
16 Tariff Schedule No. TOU-8
17 x Edison 's published avoided cost
18 of energy by time of delivery
19 for each time period.
20 Data used to derive Edison ' s full avoided costs will
21 be made available to the Seller, to the extent
22 specified by Seller, upon request.
23 9 . 4 Edison shall not be obligated to accept or pay for
24 Energy, and may request Seller whose Generating
25 Facility is one ( 1 ) MW or greater to discontinue or
26 reduce deliver of y Energy, for not more than 300
Document 1775C -42-
E;CE 271511183
1 hours annually during off-peak hours when ( i )
2 purchases would result in costs greater than those
3 which Edison would incur if it did not purchase
4 Energy from Seller but instead utilized an
5 equivalent amount of Energy generated from another
6 Edison source, or ( ii ) the Edison Electric System
7 demand would require that Edison hydro-energy be
6 spilled to reduce generation.
9 10 . PAYMENT AND BILLING PROVISIONS
10 10.1 For Energy and capacity purchased by Edison:
11 10 . 1 . 1 Edison shall mail to Seller not later than
12 thirty days after the end of each monthly
13 billing period ( 1 ) a statement showing the
14 Energy and Contract Capacity delivered to
15 Edison during the on-peak , mid-peak , and
16 off-peak periods , as those periods are
17 specified in Edison ' s Tariff Schedule No .
18 TOU-8 for that monthly billing period, ( 2 )
19 Edison ' s computation of the amount due
20 Seller, and ( 3) Edison 's check in payment of
21 said amount.
22 10. 1 .2 If the monthly payment period involves
23 portions of two different published Energy
24 schedule
payment periods, the monthly Energy
25 payment shall be prorated on the basis of the
26 percentage of days at each price.
Document 1775C -43-
27.15 11183
1 10. 1 . 3 If the payment period is less than 27 days or
2 greater than 33 days , the capacity payment
3 shall be prorated on the basis of the average
4 days per month per year.
5 10. 1 .4 If within ninety days of receipt of the
6 statement Seller does not make a report in
7 writing to Edison of an error, Seller shall
8 be deemed to have waived any error in
9 Edison 's statement , computation, and payment ,
10 and they shall be considered correct and
11 complete.
12 10 .2 For electric service provided by Edison:
13 10.2 . 1 Under Operating Option III pursuant to
14 Section 5. 1 , standby electric service shall
15 be provided under terms and conditions of
16 Edison 's tariff schedule indicated below as
17 now in effect or as may hereafter be
18 authorized by the Commission to be revised.
19 The applicable tariff schedules are:
20 STANDBY TARIFF ELECTRIC SERVICE TARIFF
21 SCHEDULE NO.
22 SCG-1 GS-2
23 10.2 .1 . 1 The Standby Demand for calculation
24 of the standby charge in SCG-1 as
25 specified in Section 1 .9 . Edison
26
reserves the right to adjust the
Document 1775C -44-
SCE 2715 n183
1 Standby Demand based on recorded
2 demand during periods standby power
3 is required.
4 10. 2 . 1 .2 The capacity rating for
5 determination of standby waiver.
6 qualifications shall be Contract
7 Capacity plus the maximum electric
8 load served by the Generating
9 Facility during the on-peak time
10 period recorded during the preceding
11 12-month time period .
12 10. 2 . 1 . 3 A minimum monthly charge may be
13 established for standby electric
14 service as provided in the tariff
15 schedule elected in Section 1 . 9.
16 Said minimum monthly charge shall be
17 specified in Section 1 . 9.
16 10 .2 .2 Under Operating Options II and III pursuant
19 to Section 5 . 1 , electric service shall be
20 provided under terms , conditions, and rates
21 of Edison 's tariff schedule indicated below
22 as now in effect or as may hereafter be
23 authorized by the Commission to be revised .
24 The applicable tariff schedule is GS-2. The
25 contract demand for calculation of the
26
Document 1775C -45-
D- 271511183
minimum demand charge in the applicable
2 tariff schedules is specified in Section 1 .9 .
3 10 .2 .3 Edison shall commence billing Seller for
4 electric service rendered pursuant to the
5 applicable tariff schedule on the date that
6 the Point of Interconnection is energized .
7 10 .3 Monthly charges associated with Interconnection
8 Facilities shall be billed pursuant to the
9 Interconnection Facilities Agreement contained in
10 the Appendix specified in Section 1 . 10.
11 10. 4 Payments due to Contract Capacity Reduction
12 10.4 .1 The Parties agree that the refund and
13 payments provided in Section 9 . 1 . 2 .6
14 represent a fair compensation for the
15 reasonable losses that would result from such
16 reduction of Contract Capacity.
17 10 .4 . 2 In the event of a reduction in Contract
18 Capacity, the quantity, in kW, by which the
19 Contract Capacity is reduced shall be used to
20 calculate the refunds and payments due Edison
21 in accordance with Section 9. 1 . 2 . 6, as
22 applicable .
23 10. 4 . 3 Edison shall provide invoices to Seller for
24 all refunds and payments due Edison under
25 this section which shall be due within
26 60 days .
�
Document 1775C -46-
� 27-15 11183
1 10. 4 .4 If Seller does not make payments as required
2 in Section 10 .4 . 3 , Edison shall have the right
3 to offset any amounts due it against any
4 present or future payments due Seller and may
5 pursue any other remedies available to Edison
g as a result of Seller 's failure to perform.
7 11 . TAXES
g 11 . 1 If ad valorem taxes or other taxes attributable to
g the Project are assessed or levied against Edison,
10 Seller shall pay Edison for such assessment or levy.
>> 11 . 2 If ad valorem taxes or other taxes properly
12 attributed to land, land rights , or interest in land
13 for the Project are assessed or levied against
14 Edison, Seller shall pay Edison for such assessment
15 or levy.
is 11 . 3 For appendant facilities owned by Edison, Edison
17 shall pay ad valorem taxes and other taxes properly
ie attributed to said facilities. If such taxes are
19 assessed or levied against Seller, Edison shall pay
20 Seller for such assessment or levy.
21 11 .4 Seller or Edison shall provide information concerning
22 the Project to any requesting taxing authority.
23 12 . TERMINATION
24 12.1 This Contract shall terminate if Firm Operation does
25 not occur within 5 years of the date of Contract
26 execution.
Document 1775C _47_
27-15 9183
1 13. LIABILITY
2 13 . 1 Each Party (First Party) releases the other Party
3 (Second Party ) , its directors , officers , employees
4 and agents from any loss , damage, claim, cost ,
5 charge, or expense of any kind or nature ( including
6 any direct, indirect or consequential loss , damage,
7 claim, cost, charge, or expense ) , including
8
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10 //
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13
14
15
16
17
18
19
20
21
22
23
24
25
26
Document 1775C -47A-
SM 27159163
1 attorney 's fees and other costs of litigation
2 incurred by the First Party in connection with
3 damage to property of the First Party caused by or
4 arising out of the Second Party 's construction,
5 engineering, repair, supervision, inspection,
6 testing, protection, operation, maintenance ,
7 replacement , reconstruction, use or ownership of its
8 facilities, to the extent that such loss , damage,
9 claim, cost , charge, or expense is caused by the
10 negligence of Second Party, its directors , officers ,
11 employees , agents , or any person or entity whose
12 negligence would be imputed to Second Party.
13 13 .2 Each Party shall indemnify and hold harmless the
14 other Party, its directors , officers , and employees
15 or agents from and against any loss , damage , claim,
16 cost, charge, ( including direct, indirect or
17 consequential loss , damage , claim, cost charge , or
18 expense ) , including attorney 's fees and other costs
19 of litigation incurred by the other Party in
20 connection with the injury to or death of any person
21 or damage to property of a third party arising out
22 of the indemnifying Party 's construction,
23 engineering,g g, repair, supervision, inspection,
24 testing, protection, operation, maintenance,
25 replacement , reconstruction, use, or ownership of
26 its facilities , to the extent that such loss,
Document 1775C _48_
27-15 11163
1 damage, claim, cost , charge, or expense is cause by
2 the negligence of the indemnifying Party , its
3 directors , officers , employees, agents , or any
4 person or entity whose negligence would be imputed
5 to the indemnifying Party; provided, however, that
6 each Party shall be solely responsible for and shall
7 bear all cost of claims brought by its contractors
8 or its own employees and shall indemnify and hold
9 harmless the other Party for any such costs
10 including costs arising out of any workers
11 compensation law. Seller releases and shall defend
12 and indemnify Edison from, any claim, cost , loss,
13 damage, or liability arising from any contrary
14 representation concerning the effect of Edison 's
15 review of the design, construction, operation, or
16 maintenance of the Project.
17 13.3 The provisions of this Section 13 shall not be
18 construed so as to relieve any insurer of its
19 obligations to pay any insurance claims in
20 accordance with the provisions of any valid
21 insurance policy.
22 13 .4 Neither Party shall be indemnified under this
23 Section 13 for its liability or loss resulting from
24 its sole negligence or willful misconduct.
25
26
Document 1775C _49_
21.15 11153
1 14 . INSURANCE
2 14. 1 Until Contract is terminated, Seller shall obtain
3 and maintain in force as hereinafter provided
4 comprehensive general liability insurance , including
5 contractual liability coverage, with a combined
6 single limit of ( i ) not less than $1 ,000 , 000 each
7 occurrence for Generating Facilities 100 kW or
8 greater; ( ii ) not less than $500, 000 for each
g occurrence for Generating Facilities between 20 kW
10 and 100 kW; and ( iii ) not less than $100 ,000 for
11 each occurrence for Generating Facilities less than
12 20 kW. The insurance carrier or carriers and form
13 of policy shall be subject to review and approval by
14 Edison.
15 14. 2 Prior to the date Seller 's Generating Facility is
16 first operated in parallel with Edison ' s electric
17 system, Seller shall ( i ) furnish certificate of
18 insurance to Edison, which certificate shall provide
19 that such insurance shall not be terminated nor
20 expire except on thirty days prior written notice to
21 Edison, ( ii ) maintain such insurance in effect for
22 so long as Seller 's Generating Facility is operated
23 in parallel with Edison 's electric system, and
24 ( iii ) furnish to Edison an additional insured
25 endorsement with respect to such insurance in
26 substantially the following form:
�
Document 1775C -50-
� 27-1511183
1 "In consideration of the premium charged,
2 Southern California Edison Company ( Edison ) is
3 named as additional insured with respect to all
4 liabilities arising out of Seller 's use and
5 ownership of Seller ' s Generating Facility.
6 "The inclusion of more than one insured under
7 this policy shall not operate to impair the
8 rights of one insured against another insured
9 and the coverages afforded by this policy will
10 apply as though separate policies had been
11 issued to each insured. The inclusion of more
12 'than one insured will not, however, operate to
13 increase the limit of the carrier ' s liability.
14 Edison will not, by reason of its inclusion
15 under this policy , incur liability to the
16 insurance carrier for payment of premium for
17 this policy.
18 "Any other insurance carried by Edison which
19 may be applicable shall be deemed excess
20 insurance and Seller 's insurance primary for
21 all purposes despite any conflicting provisions
22 in Seller 's policy to the contrary. "
23 If the requirement of Section 14 . 2 ( iii ) prevents
24 Seller from obtaining the insurance required in
25 Section 14 . 1 then upon written notification by
26 Seller to Edison, Section 14 .2( iii ) shall be waived.
Document 1775C -51-
27 15 11183
1 14.3 The requirements of this Section 14 shall not apply
2 to Seller who is a self-insured governmental agency
3 with established record of self-insurance.
4 14 . 4 If Seller fails to comply with the provisions of
5 this Section 14 , Seller shall , at its own cost ,
6 defend, indemnify, and hold harmless Edison, its
7 directors , officers , employees, agents , assigns , and
6 successors in interest from and against any and all
9 loss , damage, claim, cost , charge, or expense of any
10 kind of nature ( including direct , indirect or
11 consequential loss , damage, claim, cost, charge , or
12 expense, including attorney 's fees and other costs
13 of litigation ) resulting from the death or injury to
14 any person or damage to any y property, including the
15 personnel and property of Edison, to the extent that
16 Edison would have been protected had Seller complied
17 with all of the provisions of this Section 14 .
16 15. UNCONTROLLABLE FORCES
19 15. 1 Neither Party shall be considered to be in default
20 in the performance of any of the agreements
21 contained in this Contract, except for obligations
22 to pay money , when and to the extent failure of
23 performance shall be caused by an Uncontrollable
24 Force.
25 15.2 If either Party because of an Uncontrollable Force
26 is rendered whollyor partly unable to p y perform its
SCE
1775C -52-
C 27-1511183
1 obligations under this Contract , the Party shall be
2 excused from whatever performance is affected by the
3 Uncontrollable Force to the extent so affected
4 provided that:
5 ( 1 ) the non-performing Party, within thirty days
6 after the occurrence of the Uncontrollable
7 Force, gives the other Party written notice
8 describing the particulars of the occurrence,
9 ( 2) the suspension of performance is of no greater
10 scope and of no longer duration than is
11 required by the Uncontrollable Force,
12 ( 3 ) the non-performing Party uses its best efforts
13 to remedy its inability to perform ( this
14 subsection shall not require the settlement of
15 any strike, walkout, lockout or other labor
16 dispute on terms which, in the sole judgment of
17 the Party involved in the dispute, are contrary
18 to its interest . It is understood and agreed
19 that the settlement of strikes , walkouts ,
20 lockouts or other labor disputes shall be at
21 the sole discretion of the Party having the
22 difficulty ) ,
23 ( 4) when the non-performing Party is able to resume
24 performance of its obligations under this
25 Contract, that Party shall give the other Party
26 written notice to that effect, and
Document 1775C -53-
SCE 27R151V8'
1 ( 5 ) capacity payments during such periods of
2 Uncontrollable Force on Seller 's part shall be
3 governed by Section 9 .1 .2 . 3.
4 15. 3 In the event that either Party 's ability to perform
5 cannot be corrected when the Uncontrollable Force is
6 caused by the actions or inactions of legislative,
7 judicial or regulatory agencies or other proper
8 authority, this Contract may be amended to comply
9 with the legal or regulatory change which caused the
10 nonperformance.
11 If a loss of Qualifying Facility status occurs due
12 to an Uncontrollable Force and Seller fails to make
13 the changes necessary to maintain its Qualifying
14 Facility status , the Seller shall compensate Edison
15 for any economic detriment incurred by Edison as a
16 result of such failure.
17 16. NON-DEDICATION OF FACILITIES
18 Edison, by this Contract , does not dedicate any part of
19 its facilities involved in this Project to the public or
20 to the service provided under the Contract, and such
21 service shall cease upon termination of the Contract.
22 17. PRIORITY OF DOCUMENTS
23 If there is a conflict between this document and any
24 Appendix, the provisions of this document shall govern.
25 Each Party shall notify the other immediately upon the
26 determination of the existence of any such conflict.
�Doocument 1775C -54-
�+ 27 15 11191
1 18. NOTICES AND CORRESPONDENCE
2 All notices and correspondence pertaining to this
3 Contract shall be in writing and shall be sufficient if
a delivered in person or sent by certified mail, postage
5 prepaid, return receipt requested, to Seller as specified
6 in Section 1 .1 , or to Edison as follows:
7 Southern California Edison Company
Post Office Box 800
8 Rosemead, California 91770
9 Attention: Secretary
All notices sent pursuant to this Section 18 shall be
1a
effective when received, and each Party shall be entitled
11
12 to specify as its proper address any other address in the
13 United States upon written notice to the other Party.
19. PREVIOUS COMMUNICATIONS
14
15 This Contract contains the entire agreement and
16 understanding between the Parties , their agents , and
n employees as to the subject matter of this contract, and
18 merges and supersedes all prior agreements , commitments ,
19 representations , and discussions between the Parties . No
zo Party shall be bound to any other obligations ,
21 conditions , or representations with respect to the
22 subject matter of this Contract.
20. NON-WAIVER
23
24 None of the provisions of the Contract shall be
25 considered waived by either Party except when such waiver
26 is given in writing. The failure of either Edison or
Document 1775C -55-
SCE 27 1511183
1 Seller to insist on any one or more instances upon strict
2 performance of any of the provisions of the Contract or
3 to take advantage of any of its rights hereunder shall
4 not be construed as a waiver of any such provisions or
5 the relinquishment of any such rights for the future, but
6 the same shall continue to remain in full force and
7 effect.
8 21 . DISPUTES
9 21 .1 Any dispute arising between the Parties relating to
10 interpretation of the provisions of this Contract or
11 to performance of the Parties hereunder, other than
12 matters which may not be settled without the consent
13 of an involved insurance company, shall be reduced
14 to writing stating the complaint and proposed
15 solution and submitted to Edison 's manager of the
16 area wherein the Generating Facility is located as
17 specified in Section 1 .3 , whose interpretation and
18 decision thereon shall be incorporated into a
19 written document which shall specify Edison 's
20 position and that it is the final decision of such
21 manager. A copy of such document shall be furnished
22 to Seller within ten days following the receipt of
23 Seller 's written complaint.
24 21 . 2 The decision of such manager pursuant to
25 Section 21 .1 shall be final and conclusive from the
26 date of receipt of such copy by the complaining
Document 1775C -56-
D_ 27 161V83
1 Party , unless , within thirty days Seller furnishes a
2 written appeal to such manager. Following receipt
3 of such appeal , a joint hearing shall be held within
4 _ fifteen days of said appeal, at which time the
5 Parties shall each be afforded an opportunity to
6 present evidence in support of their respectvie
7 positions . Such joint hearing shall be conducted by
8 one authorized representative of Seller and one
9 authorized representative of Edison and other
10 necessary persons . Pending final decision of a
11 dispute hereunder, the Parties shall proceed
12 diligently with the performance of their obligations
13 under this Contract and in accordance with Edison 's
14 position pursuant to Section 21 . 1 .
15 21 . 3 The final decision by the Parties ' authorized
16 representatives shall be made within fifteen days
17 after presentation of all evidence affecting the
18 dispute, and shall be reduced to writing. The
19 decision shall be final and conclusive.
20 21.4 If the authorized representatives cannot reach a
21 final decision within the fifteen-day period , any
22 remedies which are provided by law may be pursued.
23 22. SUCCESSORS AND ASSIGNS
24 Neither Party shall voluntarily assign its rights nor
25 delegate its duties under this Contract , or any part of
26 such rights or duties , without the written consent of the
Document 1775C -57-
97 15 111.1
1 other Party, except in connection with the sale or merger
2 of a substantial portion of its properties . Any such
3 assignment or delegation made without such written
4 consent shall be null and void . Consent for assignment
5 shall not be withheld unreasonably . Such assignment
6 shall include, unless otherwise specified therein, all of
7 Seller's rights to any refunds which might become due
6 under this Contract.
9 23. EFFECT OF SECTION HEADINGS
10 Section headings appearing in this Agreement are inserted
11 for convenience only , and shall not be construed as
12 interpretations of text.
13 24. GOVERNING LAW
14 This Contract shall be interpreted , governed, and
15 construed under the laws of the State of California as if
16 executed and to be performed wholly within the State of
17 California.
16
18
20
21
22
23
24
25
26
Document 1775C _58_
ism 27-15 11/83
1 25. MULTIPLE ORIGINALS
2 This Contract is executed in two counterparts , each of
3 which shall be deemed an original .
4 SIGNATURES
5 IN WITNESS WHEREOF, the Parties hereto have executed this
6 Contract this ;?t , of
7
8
SOUTHERN CALIFORNIA EDISON COMPANY
9
10
r
12 +�,^ aP`"t7t)YSD AS Tr; p-�, Y
Pf ZHN R BURY {/
kd I fns Name Fc+'a•,2.d°°� J'� . .aL3_.,=;� �,-.V.
13 Title
14
15
16
17 (Seller )
18
19
20 By
r
J
21 Name
NGRM.AN R f`INQ
22 Title CITY MANAGER
23
24
25
26
��Doppcument 1775C -59-
b'- 271511103
APPENDIX A.3
2 INTERCONNECTION FACILITIES - SELLER OWNED AND OPERATED FACILITY
3 A. 3 . 1 Seller shall design, purchase, construct, operate
4 and maintain Seller owned Interconnection Facilities
5 at its sole expense. Edison shall have the right to
6 review the design as to the adequacy of the
7 Protective Apparatus provided. Any additions or
6 modifications required by Edison shall be
9 incorporated by Seller.
10 A. 3 . 2 Notwithstanding the provisions of Section 15,
t1 Seller, having elected to own, operate, and maintain
12 the Interconnection Facilities , shall accept all
13 liability and release Edison from and indemnify
14 Edison against any liability for faults or damage to
15 Seller 's Interconnection Facility, the Edison
16 electric system and the public as a result of the
17 operation of Seller 's project.
18 A. 3 . 3 Edison shall have the right to observe the
19 construction of the Interconnection Facilities , and
20 inspect said facilities after construction is
21 completed at the Seller 's expense.
22 A.3 .4 ( If applicable ) Facilities which are deemed
23 necessary by Edison for the proper and safe
24 operation of the Interconnection Facilities and
25 which Seller desires Edison to own and operate at
26 Seller 's expense shall be provided as appendant
�
�DoCcument No. 1775C A. 3-1
27 15 11183
1 facilities . Edison shall own, operate and maintain
2 any necessary appendant facilities which may be
3 installed in connection with the Interconnection
4 Facilities at Seller 's expense. Edison may, as it
5 deems necessary, modify the aforementioned
6 facilities at Seller 's expense.
7 A.3 . 5 For the appendant facilities , Seller elects (check
8 one) :
9 X Option I : Edison shall install , own, operate
10 and maintain the appendant facilities and Seller
11 shall pay to Edison the total estimated cost for the
12 appendant facilities prior to the start of
13 construction of the appendant facilities .
14 Option II : Seller shall install at Seller ' s
15 expense its portion of the appendant facilities in
16 accordance with Rule 21 . Within 30 days after
17 installation is complete, Seller shall transfer
18 ownership of the appendant facilities to Edison in a
19 manner acceptable to Edison.
20 A.3 . 6 Maintenance of facilities referred to in Section
21 A. 3 .4 shall be paid by Seller pursuant to the
22 attached Application and Contract for
23 Interconnection Facilities Plus Operation and
24 Maintenance .
25
26
Document No. 1775C A.3-2
bM 2745 1 V83
- • i
1 A. 3. 7 To the extent that Edison deems it necessary to
2 effect the arrangements contemplated by this
3 Agreement , Edison may, from time to time, request
4 the Seller to design, install, operate, maintain,
5 modify, replace, repair or remove any or all of the
6 Interconnection Facility. Such equipment and/or
7 Protective Apparatus shall be treated as
8 Interconnection Facilities and added to the
9 Interconnection Facilities Contract by amendment
10 pursuant to Section A.3 .4.
11 A. 3 . 8 Edison shall have the right to review any changes
12 in the design of the Interconnection Facilities and
13 recommend modification(s ) to the design as it deems
14 necessary for proper and safe operation of the
15 Project when in parallel with the Edison electric
16 system.
17 A. 3 . 9 If Seller does not agree to modifications in this
18 Appendix, the differences between the Parties shall
19 be resolved pursuant to Part I , Section 18.
20
21
22
23
24
25
26
Document No. 1775C A. 3-3
SCE 27 15 11183
1 APPLICATION AND CONTRACT FOR INTERCONNECTION FACILITIES
2 PLUS OPERATION AND MAINTENANCE
3 The undersigned Seller hereby requests the Southern
4 California Edison Company (Edison ) to provide the appendant
5 facilities described on the last page hereof and by this
6 reference herein incorporated, hereinafter called
7 "Interconnection Facilities . " Interconnection Facilities as
g defined and used herein are a group of Added Facilities which
g have been designated as Interconnection Facilities , to
10 accommodate negotiation and preparation of contracts for
11 parallel generation projects . Interconnection Facilities , as
12 are Added Facilities , shall be provided in accordance with the
13 applicable Tariff Schedules of Edison. Such Interconnection
14 Facilities are to be owned, operated and maintained by Edison.
15 In consideration of Edison ' s acceptance of this
16 application, Seller hereby agrees to the following :
17 1 . If Seller elects Option I in Section A.3 . 5 , Seller shall
18 pay to Edison, prior to the start of construction of the
19 Interconnection Facilities , the total estimated costs for
20 the Interconnection Facility as determined by Edison and
21 entered on the last page hereof . In the event Seller
22 abandons its plans for installation of such
23 Interconnection Facility, for any reason whatsoever,
24 including failure to obtain any required permits, Seller
25 shall reimburse Edison upon receipt of supporting
26 documentation for any and all expenses incurred by Edison
Document No. 1775C -1- Attachment to Appendix A. 3
D- 27 15 11183
1 pursuant to this agreement within thirty ( 30 ) days after
2 presentation of a bill .
3 2 . If Seller elects Option II in Section A. 3. 5, Edison shall
4 have the right to observe the construction of the
5 Interconnection Facilities and inspect and test said
6 facilities after construction is completed at the Seller ' s
7 expense.
6 3 . The parties also understand and agree that due to
9 equipment acquisition lead time and construction time
10 requirements , Edison requires a minimum of 12 months from
11 the time of authorization to construct the aforementioned
12 Interconnection Facility and place it in operation.
13 Edison shall have no obligation to Seller with regard to
14 any target date established by Seller which is less than
15 eighteen ( 18) months from the date this application is
16 executed. However, Edison shall exercise its best effort
17 to meet Seller 's projected operational date.
18 4 . Seller shall pay a monthly charge for the Interconnection
19 Facilities ' operation and maintenance in the amount of
20 0 .90 of the added equipment investment as determined by
21 Edison and as entered by Edison on the last page hereof .
22 The monthly charge shall be adjusted periodically in
23 accordance with the pro-rata operation and maintenance
24 charges for added facilities pursuant to Rule
25 No. 2.H .2.f . The monthly charge may be based upon
26 estimated costs of the Interconnection Facilities and when
SCE
No. 1775C -2- Attachment to Appendix A.3
C 2715111V
1 the recorded book cost of the Interconnection Facilities
2 has been determined by Edison, the charges shall be
3 adjusted retroactively to the date when service is first
4 rendered by means of such Interconnection Facilities.
5 Additional charges resulting from such adjustment shall,
6 unless other terms are mutually agreed upon, be payable
7 within thirty ( 30) days from the date of presentation of a
8 bill therefor. Any credits resulting from such adjustment
g will , unless other terms are mutually agreed upon, be
10 refunded upon demand of Seller.
11 5 . Whenever a change is made in the Interconnection
12 Facilities which results in changes in the added equipment
13 investment, the monthly charge will be adjusted on the
14 basis of the revised added equipment investment. The cost
15 of such change shall be payable by Seller within sixty
16 ( 60 ) days from the date of presentation of a bill
17 thereof . The description of the Interconnection
18 Facilities will be amended by Edison on the last page
19 hereof to reflect any changes in equipment , installation
20 and removal cost, amount of added equipment investment,
21 and monthly charge resulting from any such change in the
22 Interconnection Facilities or adjustment as aforesaid.
23 6 . The monthly charges payable hereunder shall commence upon
24 the date when said Interconnection Facilities are
25 available for use but not before service is first
26 established and rendered through Edison 's normal
Document No. 1775C -3- Attachment to Appendix A. 3
,-CE �,15+1181
1 facilities and shall first be payable when Edison shall
2 submit the first energy bill after such date and shall
3 continue until the abandonment of such Interconnection
4 Facilities by Seller, subject to the provisions of
5 Paragraphs 5, and 6 . hereof .
6 7 . Seller agrees to utilize said Interconnection Facilities
7 in accordance with good operating practice and to
e reimburse Edison for damage to said Facilities occasioned
9 or caused by the Seller or any of his agents , employees or
10 licensees. Failure so to exercise due diligence in the
11 utilization of said Interconnection Facilities will give
12 Edison the right to terminate this agreement.
13 8 . Edison 's performance under this Contract is subject to the
14 availability of materials required to provide the
15 Interconnection Facilities provided for herein and to all
16 applicable Tariff Schedules of Edison.
17 9 . This Application and Contract for Interconnection
18 Facilities supplements the appropriate application and
19 contract (s ) for electric service presently in effect
20 between Seller and Edison.
21
22
23
24
25
26
Document No. 1775C -4- Attachment to Appendix A. 3
5CE .,
1 10 . This Contract shall at all times be subject to such
2 changes or modifications by the Public Utilities
3 Commission of the State of California as said Commission
4 may, from time to time, direct in the exercise of its
5 jurisdiction.
6
7
8
DATED: ANR SELLER: i�ALP4 3PPINGS
9
10 WITNESS (/ `'. — < id BY: ./'/ � Z�z
J 1\Yarj°":IfPIN R. funk
11 CITY CLERK
7l1C COS CITY MANAGER
IY CLERK
12 Approved and Accepte f r
13 SOUTHERN CALIFORNI Fa�O CQ PANY
14 Mail (Address )
r ;
15
16
17 i
18 By
19
20
21
22
23
24
25
26
Document No. 1775C -5- Attachment to Appendix A. 3
.B4+ 2715111W+
1
2 SERVICE ADDRESS : 407 South Cerritos Dr. , Palm Springs
DATE APPLICANT DESIRES INTERCONNECTION FACILITIES
3 AVAILABLE: January 1985
4 DATE APPLICANT WILL BEGIN CONSTRUCTION OF THE GENERATING
FACILITY: 2nd Quarter 1984
5
6 DESCRIPTION OF INTERCONNECTION FACILITIES :
7 150 kVA Ground Bank
6 Ground Bank Enclosure
15 kV Current Transformer
9 Metering
10 TOTAL COST OF INTERCONNECTION FACILITIES* : ESTIMATED $17 ,000
11 ADDED INVESTMENT* : ESTIMATED $17 ,000
12 ADDED INVESTMENT: RECORDED BOOK COST $
13 ESTIMATED INSTALLATION AND REMOVAL COST*: $10 ,200
14
DATE SERVICE FIRST RENDERED BY MEANS OF THE
15 INTERCONNECTION FACILILTIES :
16
17
18
19
20
21
22
23
24
*Cost estimates are for information purposes only and are
P5 not binding unless provided in writing by Edison pursuant
to a written request by Seller.
26
Document No. 1775C -6- Attachment to Appendix A. 3
#"Morn Caffornfa[ayaon Co*fty PRELIMINARY
.QG r�1 Siof2 i.✓iJ 5�..�.!/ tE c.oi•4
NOTES.
t. " r " indicates devices required by Edison Others are shown as
conventional practice.
t. For device functions sae Fig 4.5.
3. Transformation (as required) by Edison
4. Grounding transformer or ground defector (by Edison)
5 Protective and synchronizing relays required if customer desires to
serve isolated load during Edison outage M not provided et main
circuit breaker, these functions should be provided at generator
breaker. -z&E lie ev
�✓�w
Z s.vo. air.
S 3-So /Cvtr
?too-/le/tIey K
/caoo.rVAML I
/t�000- lQoO�4ALo y. �l
EDISO N EDISON
— cVSTO>r
1:5 C&ST. 7e I.VSr4C4.
1 /b/A.W arC t.
MOTE e " • •'S 'S i
M SCG-/
4? i
Its
cWSTOWER'S
FEEDERS
n O dew oEM.
40
46
ry
HAI 6.50 dew
ReU /-/2-64 ru�P
FIGURE 4.2 Typical Parallel Generation with Customer Probation
,t