HomeMy WebLinkAbout10/6/1999 - STAFF REPORTS (14) DATE: October 6, 1999
TO: City Council
FROM: Assistant City Manager-Operations
MUNICIPAL COGEN EDISON CONTRACT AMHNDMENT#3
RECOMMENDATION:
It is recommended that City Council approve Amendment#3 to Agreement#2055 with Southern
California Edison Company and arrthorize the payback of excess capacity payments.
BACKGROUND:
The City has a contract with Southern California Edison Company for the sale of excess capacity
(electricity) from the Municipal Cogeneration Plant. The City currently guarantees that it will
provide 40 KW capacityto Edison. With the expansion ofthb Airport,all available elechicity from
die Cogen Plant will be utilized by the Airport.
The attached Amendment from Southern California Edison would modify the contact to where the
City has no obligation to provide power. The original contract and the Amendment require the
repaymentofbonus capacity payments that the City has received for providing the40 KW capacity,
that is estimated at$8,058.75. (This number will change depending on the actual approval day.)
TheAuportbond issue contemplatedtherepaymentoftheeapacitypaymentsanddbnds are available
in Airport Terminal Construction Account 415-6326-43245.
A Minute Order is attached for City Council consideration.
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AMR F.SMOOT,AAE
Assistant City a Qper ions
APPROVED FF
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ATTACEbIENT:
1. Minute Order
2. Amendment#3
Cer
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So. Calif.Edison Co.
CITY CLERK Power Purchase9Agreement
C"OF PA1.sA SMIMGS AGREEMENT 92055
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PALM !A W2W
AMENDMENT NO.3
POWER PURCHASE AGREEMENT
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
CITY OF PALM SPRINGS-MUNICIPAL COMPLEX
(QFI)NO.2040)
1. PARTIES: The City of Palm Springs("Seller"),a municipal entity,and Southern
California Edison Company("SCE"),a California corporation,hereby enter into
this Amendment No.3 ("Amendment")to the Power Purchase Contract
("Coutred')between them. Seller and SCE are sometimes referred to herein
individually as a"Party," and jointly as the"Parties."
2. R.ECTl'A.LS: This Amendment is made with reference to the following facts,
among others:
2.1 On April 5, 1994,the Parties executed the Contract to provide the terms
and conditions for Seller's sale and SCE's purchase of electric power from
Seller's Municipal Complex(as defined m the Coutract).
2.2 On February 5, 1986,the Parties executed Amendment No. I to the
Agreement It reduced the contract Capacity ftom 1,022 kilowatts(kW)
to 380 kW.
2.3 On December 12, 1990, SCE derated the Contract Capacity from 380 kW
to 118 kW due to Selle's failure to meet the Contract's performance
requirements.
2.4 On July 3, 1996,SCE fbtther derated the Contract Capacity from 118 kW
to 40 kW due to Seller's failure to meet the Contract's performance
requirements.
2.5 On October 23, 1996,the Patties executed Amendment No.2 to the
Agreement It reduced the Contract Capacity from 118 kW to 40 kW to
reflect the July 3, 1996 deration.
2.6 The Parties wish to amend the Agreement to fiuther reduce the Contract
Capacity fiom 40 kW to zero kW,in anticipation of an increase in the
amount of Sellefs electrical load,which will reduce the electric power
available for sale to SCE.
2.7 In light of the reduction of the Contract Capacity from 40 kW to zero kW,
Seller acknowledges its obligation to refund to SCE the amount calculated
pursuant to Section 9.1.2.5 of the Contract. Concurrently with execution
of this Agreement,Seller shall pay this refund by delivering a check to
SCE in the estimated amount of the refund.
2040eme 4doo 1
7. SIGNATURE CLAUSE: The signatories hereto represent that they have been
appropriately authorized to enter into this Amendment on behalf o Party for
whom they sign. This Amendment is hereby executed as of this rday of
1999.
SOUTHERN CALIFORNIA EDISON COMPANY
ATTEST: By: ?g&=
Name: ALARS WBERGbAM
Title: DIRECTOR O QF RESOURCES
CITY CLERK'
OF PALM S
By:
CI IMNAGER
APPROVED BY THE CITY COUNCIL
-&PROVED AS TO FORM BY: /no 5D I
t�sea
2040amond.doc 3
MINUTE ORDER NO. (PsD D.
APPROVING AMENDMENT 93 TO AGREEMENT
#2055 WTTII SOUTHERN CALIFORNIA EDISON
COMPANY REDUCING CONTRACT CAPACITY TO
W K W AND AU THORIZ IN O REPAYM EN T OF UP TO
S9000.00 IN EXCESS CAPACITY PAYMENTS.
IIIE MY CERTIFYthatthisMinuto Order,approvingAmendment#3 to
Agreement #2055 with Southem California Edison Company reducing
contract capacity to W KW and authorizing repayment of up to$9000.00
in excess capacity payments,was adopted by the City Council ofthe City
of Palm Sprialm California, in a meeting thereof held on the a day of
October 1999.
PATRICIA A.SANDERS
City Clark
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