HomeMy WebLinkAbout7/6/2005 - STAFF REPORTS (26) c
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Cq'/FORN�p City Council Staff Report
DATE: July 6, 2005 CONSENT CALENDAR
SUBJECT: Natural Gas Transmission Charges
FROM: David H. Ready, City Manager
BY: Public Works and Procurement and Contracting
SUMMARY
This action would approve a two-year agreement with Southern California Gas
Company (SC Gas) for delivery of natural gas for the City's co-generation plants. SC
Gas is the only firm that has a distribution network capable of delivering gas to the City's
Municipal and Sunrise plants.
RECOMMENDATION:
1. Adopt Minute Order No. approving an agreement with Southern
California Gas Company for delivery of natural gas for two years at the GT-F
tarriffed rate schedule;
2. .Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The City purchases natural gas to fuel the engines at two co-generation facilities that
provide electricity and cooling to City facilities. While purchases of gas may be made
from more than one supplier, any gas purchased by the City must be delivered to the
City's facilities through a gas pipeline operated by SC Gas.
The rates for the pipeline or transmission charges are regulated by the State. The City
is considered a noncore customer under the SC Gas rate structures. As a noncore
customer, the GT-F rate schedule best suits the City's need for firm delivery of gas to
run the City's facilities. Under this rate schedule, the City is assured of a Monthly
Scheduled Quantity of gas sufficient to meet the operational requirements of the City
plants.
Item No. 2 . 0 .
City Council Staff Report
July 6, 2005 -- Page 2
Natural Gas Transmission
FISCAL IMPACT:
It is anticipated that annual transmission charges will be approximately $130,000. Total
charges for the 2-year term of this agreement will approximate $260,000.
Funds are budgeted in Account Nos. 5806-42010 and 5807-42010.
Marcus L. Fuller David H. Ready, City Manager;�'
Assistant Director of Public Works
SoX L. Butz ff
Aistant Cit 1M�nager
Attachment:
Minute Order
MINUTE ORDER NO.
APPROVING AN AGREEMENT WITH SOUTHERN
CALIFORNIA GAS COMPANY FOR DELIVERY OF
NATURAL GAS FOR TWO YEARS AT THE GT-F
TARRIFFED RATE SCHEDULE.
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this
Minute Order approving Agreement No. with Southern California Gas Company
for delivery of natural gas for two years at the GT-F tarriffed rate schedule, was adopted
by the City Council of the City of Palm Springs, California, in a meeting thereof held on
the 6th day of July, 2005.
James Thompson, City Clerk
Addendum A, Page 1: Noncore Tariff Comparison
Rate GT-F (Firm- Full Requirements) GT-1 (Interruptible) GT-F Partial Requirements Service',
Online tariff http://www.socalgas.com/regulatory/ http://www.socalgas.com/regulatory/tariffs/t http:l/www.socaigas.com/regulatoryltariffs/tm
address tariffsltm2/pdf/GT-F.pdf m2/pdf/GT-I.pdf 2/pdf/GT-F.pdf
Applicability Commercial and industrial meeting Commercial and industrial meeting the size Commercial and industrial meeting the size
the size requirements, and electric requirements, and electric generation requirements, and electric generation plants,
generation plants. plants.
Minimum 2 years One month 2 years
Contract Term
Transportation Same as GT-1 (see tariff) Same as GT-F (see tariff) Same as GT-1 or GT-F (see tariff)
Cost
Curtailment GT-F customers are curtailed after GT-I customers are curtailed before GT-F The designated GT-I volume will be curtailed first.
all GT-I customers have been customers. Service Interruption Credit Service Interruption Credit does not apply for this
curtailed. A Service Interruption does not apply. There is no limit to the portion of the load.After all GT-1 customers have
Credit applies for firm customers number of interruptions or the length of the been curtailed(including your volumes),the
who experience more than one interruption. designated sequence GT-F volume would be
Interru interruption in a 10- ear curtailed. The Service Interruptible Credit would
qualifying P Y apply only to the GT-F volumes and only after
period of time a experiencing more than one qualifying interruption
- in a 10-year period of time.3
Contract YES YES YES
Required
Requirements Prohibited from using alternative Not prohibited from using alternative fuels. Must contract for an annual quantity. Not
fuels or bypass pipeline services prohibited from using alternative fuels for GT-
I volumes.
Use-or-pay NO, except for unauthorized NO YES°1
charges alternate-fuel use or bypass'
Imbalance YES YES YES
Charges
How are contract MSQs are used during curtailments MSQs are used during curtailments and MSQs are used during curtailments and
annual quantities and Operational Flow Orders Operational Flow Orders (OFOs)—see Operational Flow Orders(OFOs)—see
and monthly (OFOs)—see Addendum C: Service Addendum C: Service Options and MSQs. Addendum C: Service Options and MSQs.
scheduled Annual contract quantities are used to calculate
quantities(MSQS) Options and MSQs. use-or-pay charges when the customer's annual
used? consumption is less than 75% of firm annual
contract quantity(sum of GT-F MSQs)s
'The annual contract quantity must be broken down by month into fixed monthly service quantities for each rate The sum of each sequential Monthly Scheduled Quantity(MSQ)must match
your contracted Annual Quantity. MSQ are the quantities to be delivered each month under the specified Rate Schedule.
The last sequence should always be Rate Schedule GT-1 with an MSQ of at least ltherm.
'See Rule 23,Section L.
'See Rate Schedule GT-F,Special Conditions 11 &12
'See Rate Schedule GT-F,Special Conditions 13,14&15.
AddendumA.doc.
Addendum A, Page 2: Core Tariff Comparison for Noncore to Core Transfers
Rate GN-10(Bundled Core Service) GT-10 (Core Transportation Only) GT-1ON (Large Core Transportation Only)
Online tariff http://www.socalgas.com/regulatory http://www.socalgas.com/regulatory/tariffs/tm http:!/www.socalgas.com/regulatory/tariffs/tm2
address: /tariffs/tm2/pdf/GN-10.pdf 2/hpdf/GT-10.pdf /pdf/GT-10.pdf
Applicability Applicable to core non-residential Applicable to non-residential core Applicable to non-residential core
natural gas service excluding Transportation Service in accordance with Transportation Service in accordance with
electric generation, refinery and Rule 32, excluding electric generation, Rule 32, excluding electric generation,
enhanced oil recovery customers refinery and enhanced oil recovery refinery and enhanced oil recovery customers
exceeding 20,800 therms/mo customers exceeding 20,800 therms/mo exceeding 20,800 therms/mo average usage.
average usage. average usage. GT10N customers must use at least 250,000
therms/yr
Minimum Term '5 years for noncore-to-core '5 years on core service for noncore-to-core '5 years on core service for noncore-to-core
transfers; Must remain on core transfers; At least 1 year on GT-10, then may transfers;At least 1 year on GT-1 ON, then
procurement for entire term. transfer to procurement for balance of 5 may transfer to procurement for balance of 5
years years
Commodity Yes, this is a full service bundled No,customers must purchase natural gas No, customers must purchase natural gas
Included? rate. through an approved Energy Service themselves or through an approved Gas
Provider(ESP), formerly known as Core Marketer.
Aggregators.
Rates See GN10 Tariff; commodity See GT10 Tariff Same as GT-10 less SoCalGas' embedded
charged under rate G-CPNRC interstate pipeline demand charges allocated
("Cross-Over Charge")for 1st 12- to core (see Tariff). Customer or their
months for transfers to core from Marketer must take assignment of interstate
noncore or from GT-10 >50,000 pipeline capacity, 2Interstate pipeline demand
therms/year;thereafter on G-CP charges will be billed directly to customer or
its Marketer, by the pipeline.
Curtailment 'GN10 Customers are curtailed 3GT-10 Customers are curtailed after all GT- 'GT-10N Customers are curtailed after all
after all GT-I and GTF customers I and GTF customers have been curtailed. GT-I and GTF customers have been curtailed.
have been curtailed. Service is designed to provide no more than Service is designed to provide no more than
Service is designed to provide no 1 interruption in 35 years 1 interruption in 35 years
more than 1 interruption in 35 yrs
Contract 'YES for transfers to core from YES for noncore-to-core transfers 'YES
Required noncore orfrom GT-10 > 50,000
therms/year
Imbalance NO °YES °YES
Charges
' See GN-10 tariff,Special Condition 7
2 See GT-10 tariff, Special Condition 4
f 3See Rule 23, Section C1
°Customer is ultimately responsible for imbalance charges if the customer's Marketer or Energy Service Provider defaults on these payments to the utility.
0 510 3/2 0 0 5
Addendumkdoc.
Major Markets Customer Services
Addendum C: Service Options and MSQs
Service Optionsl-
You may have both noncore and core gas service options available to you,'and it is important to
determine which rate service is best for you.
Noncore
Currently, there are three noncore rate schedules to choose from: GT-F (firm—full requirements), GT-1
(interruptible)or GT-F Partial (firm—partial requirements). You may view these authorized tariffs at
www.socalgas.com or call your Account Executive for additional information. These service options are
summarized in Addendum A. Customers electing firm service Rate Schedule GT-F must agree to a two-
year term. Customers electing interruptible service Rate Schedule GT-I will be served on a month-to-
month basis. Customers may elect a combination of these two rate schedules under Rate Schedule GT-
F Partial Requirements, which combines features from Rate Schedules GT-F and GT-1. Rate Schedule
GT-F Partial Requirements allows you to designate volumes under firm and interruptible rates, thus
assigning a separate curtailment priority for each rate designation. You may also add a core rate option,
described below, to your contract.
Please note that Rate Schedule GT-I has a lower service priority in the event of curtailment pursuant to
SoCalGas'Tariff Rule 23. If you are on Rate Schedule GT-1, you may choose to go back to Rate
Schedule GT-F at the beginning of any month, provided that adequate firm capacity is available on the
SoCalGas system in your area at the time of your request and that you give SoCalGas 20 days prior
written notice.
Core
Core rate schedules have a higher service priority than noncore service in the event of curtailment.
Service under core service Rate Schedules GN-10, GT-10 and GT-1 ON is summarized in Addendum A.
Rate Schedule GN-10 is a fully-bundled service including gas commodity. If you area customer taking
service for gas air conditioning, agricultural water pumping, natural gas vehicles, or your facilities are in
the City of Vernon, please be sure to inquire about special tariff schedules you may qualify for. Core rate
schedules are not available to electric generators (EGs), refinery and enhanced oil recovery customers
with average usage exceeding 20,800 therms/month 2 Core rate schedules for commercial and industrial
customers may not be available in some areas.
Additional Requirements for Noncore-to-Core Transfers
"Grandfathered " noncore status is permanently lost once core service is elected. Subsequent requests
to return to noncore service will be based on then-effective eligibility requirements. Transferring from
noncore transportation service to core procurement service may require re-establishing credit. SoCalGas'
Tariff Rule 19 prohibits rate schedule changes more often than once per year in most situations.
Additionally, noncore customers electing to transfer to core service shall be required to 1) sign a contract
for a five-year commitment to core service, and 2) pay a "Cross-Over Rate"for the first 12-months.
The Cross-Over Rate is the higher of 1) the posted monthly core procurement rate or 2) an Adjusted
California Border Price. For more details, see rate schedule G-CP(NRC)
http://socalgas.com/requlatory/tariffs/tm2/pdf/G-CPA.pdf.
'To view all of our tariffs,visit http//www.socalgas.com/requlatory/tariffs/index tariffs.shtml or call your Account Executive
2 Pursuant to Rule No.23 regarding core EG,refinery,and enhanced oil recovery,usage cannot exceed 20,800 therms per active
month on an annualized basis for any period of 12 contiguous months within the most recent 24-month period.
'Customers receiving service under a commercial/industrial noncore rate schedule as of September 29, 1993 may continue to
receive noncore service regardless of size,consistent with the grandfathering of noncore customers established in D.93-09-082.
Customers who elect core service or close their facilities(excluding changes in name or ownership)shall no longer be eligible for
service under this noncore schedule in the future unless they meet the size requirements set forth for noncore customers under
Rule No.23 (See GT-F,Special Condition 7.)
Updated: 05/03/2005 Page 1 of 3
Major Markets Customer Services
Monthlv Scheduled Quantities ("MSQ")
MSQ volumes in GT-I Schedule A contracts and in Full Requirements GT-F Schedule A contracts do not
set a minimum or maximum usage requirement for the facility, except during curtailments as described
below.
Only customers with Partial Requirements GT-F Schedule A contracts must be concerned with Use-Or-
Pay charges related to the gas quantities specified in their contracts.
All noncore contract MSQ volumes are used in the event of a curtailment or OFO (Operation Flow Order)
event as described below4.
In the event of a noncore curtailment episode, the monthly scheduled quantity("MSQ")specified in a
customer's Schedule A: Intrastate Transmission Service contract("Schedule A contract")can affect a
customer's operations. Specifically, the MSQ specified in the Schedule A contract will be used to
determine the volume a customer has the right to continue to burn during the noncore curtailment
episode. Per SoCalGas'Tariffs Rule 23 (section K.3), the MSQ and operating days of the week(also
specified in the Schedule A contract) are used to determine the authorized curtailment quantity("ACQ")
during any noncore curtailment episode. The ACQ is that amount of gas a customer is authorized to burn
during a curtailment episode. As described in Rule 23(K)(3), a customer's ACQ is equal to the customer's
contract MSQ divided by the contracted operating days in that month.
Because these contract volumes play such an important role during a noncore curtailment, it is very
important that customers understand the potential impact of the volumes they contract for.
The MSQ and ACQ treatment will be as follows:
• During a partial noncore curtailment of Interruptible service, "pro rate"reduction of usage requested of
a GT-I customer will be based upon that customer's Schedule A contract volumes. For example, if
SoCalGas requires a 50% pro rate reduction of interruptible service volumes, each interruptible
service customer will have an ACQ based upon a 50% reduction of the GT-I volume specified in their
Schedule A contract.
• After a 100% curtailment of Interruptible (GT-1) customers, GT-F"full requirements"customers are
affected. ACA's for these customers will be based upon their Schedule A contract volumes.
Specifically, any usage above the customer's ACQ will be treated as a curtailment violation and will
be subject to all associated charges which are set forth in the applicable tariffs.
Operating Day Schedule
In addition to the volumes specified in their contracts, customers need to pay close attention to the
operating days (i.e., days of the week)they select in their contract. The operating days specified in the
Schedule A contract will determine the days a customer is authorized to use gas during a curtailment
episode.
• For example, assume a customer specified only Monday-Friday operations in their Schedule A
contract. If a curtailment took place over the weekend any gas they used on Saturday or Sunday
may be subject to applicable charges. If a customer did not elect Saturday or Sunday as operating
days in its Schedule A then they will not have an ACQ on those days.
4 When MSQ volumes are present in a Schedule A contract for core service,they usually are for utility informational purposes,and
they do not function to limit usage during curtailment. An exception would be when multiple sequences of gas service are specified
for the same facility(e.g.specifying noncore Rate Schedule GT-F volumes with core Rate Schedule GN-10 volumes through the
same meter). In this instance,the core MSQs specified in the Schedule A contract will be used to determine the volume a customer
has the right to continue to burn during a noncore curtailment episode. �++
Updated: 05/03/2005 Page 2 of 3
Major Markets Customer Services
Application of Contract MSQs during OFO events
Monthly Scheduled Quantities specified in the transportation agreements are used to limit deliveries
during Operational Flow Order("OFO") events. An OFO event occurs when the Utility determines that
the transportation nominations received for a specific date of gas flow("flow date") exceed its expected
system capacity(including storage) on such flow date.
During an OFO, the annual total of the MSQs will be converted into daily quantities for the nomination
process. These daily quantities or Transportation Service Access Quantity (TSAQ) will be assigned to
each customer and can be used by the customer or their marketer in aggregate (for their customer group)
to submit nominations up to their TSAQ limit. The customer or their marketer in aggregate must keep
their scheduled deliveries to no more than 110% of their actual usage during OFO days. Details regarding
how nominations are managed during an OFO and potential consequences if nominations exceed 110%
of a customer's (or marketer's customer group) burn during an OFO can be found in Rule Number 30,
Transportation of Customer Owned Gas. http://www.socalqas.com/requlatory/tariffs/tm2/pdf/30.pdfh
Contract MSQ
SoCalGas wants to ensure each customer closely assesses its volume needs. To that end,we have data
to help you make your decision regarding the monthly volumes you selected for your Schedule A
contract. Your Account Executive/Manager has more information for you to consider.
The MSQ data provided to you takes into account your usage patterns over the last two years. SoCalGas
examined peak day or month volumes to arrive at monthly default MSQ values. Customers may elect
MSQs lower than the default MSQ. Customer requests for MSQs higher than the default MSQ are
subject to approval by SoCalGas.
Updated: 05/03/2005 Page 3 of 3
MASTER SERVICES CONTRACT
SCHEDULE A
INTRASTATE TRANSMISSION SERVICE
This Agreement is entered into by and between Southern California Gas Company ("Utility")
and CITY OF PALM SPRINGS ("Customer")as of the 10th day of May,2005 . This Agreement shall be
deemed attached to and incorporated as a Schedule in the Master Services Contract("MSC") executed
by the Parties.
NOW THEREFORE, in consideration of the promises and mutual undertakings set forth herein, the
parties agree as follows:
Section 1 -Scope
A. Intent
This Agreement sets forth the general terms and conditions under which Utility will transport gas, or
transport and procure gas, for Customer in California pursuant to Utility's applicable Tariff Rate Schedules
and Tariff Rules ("Tariffs")on file with the Public Utilities Commission of the State of California ("CPUC"),
as are in effect from time to time.
To the extent not inconsistent herewith, the provisions of the MSC are incorporated by reference in
this Agreement.All transmission services by Utility shall be paid for by Customer at the rates specified in
the applicable Tariffs, except as otherwise specified herein. Nothing in this Agreement shall be construed
as preventing Utility and Customer from mutually agreeing to conditions which are more stringent than set
forth in the Tariffs.
B. Effective Date/Term
(1)The Effective Date of this Agreement shall be as of 12:00 AM on August 1st,2005.
(2)The initial term of this Agreement shall end on August 1st,2007.
(3) Billing Schedule Sequences for terms less than the initial term of this Agreement may be
amended or renewed upon expiration as permitted or required in the applicable Tariffs on file with
the CPUC. In the event any such Billing Schedule Sequences are not amended or renewed by
the Customer, an available Tariff Service that allows a month term may be provided.
At the end of the initial term, this Agreement shall continue thereafter on a month to month basis
unless terminated by written notice from one party to the other given not less than twenty(20)days prior
to the last day of the initial term or any month thereafter.
Section 2 -Services Provided and Redelivery Locations
Customer has requested and agreed to pay for, and Utility has determined that Customer is qualified
for transmission services to the following locations (the data provided will be utilized by Utility in
determinations regarding curtailment):
Form 6597-1 -Revised 6/2003 1 MSC#41824 Contract#2236plir'y- q
Facility A
Facility Name: CTY OF PS-MUNICIPAL
Account Number: 18-8390-074-801-1
Address: 3200 E. TAHQUITZ MCCALLUM WY.
PALM SPRINGS, CA 92262
Mail copy of Bill to this Facility: NO
Facility Mailing Address:
Supplemental Facility Account Number(s):
N/A
Full Requirements YES (Noncore only)
Facility Customer Contacts
Operations Emergency
Name: Mr. STEVE VINCI Name: Mr. STEVE VINCI
Title: Title:
Address: 3200 E.TAHQUITZ CANYON WAY. Address: 3200 E.TAHQUITZ CANYON WAY.
PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262
Tel. No: (760)323-8167 Tel. No: (760)323-8167
Fax No: (760)322-5581 Fax No: (760) 322-5581
Customer shall notify Utility in the event of any change in the gas requirements or notification designations
for this facility,
BILLING SCHEDULE SEQUENCE'01
Otherwise
Net ranrsssion Rates Applicable
Rate Schedule Priority Billed egotiated Rate
GT-F5 FIRM N/A ARIFF-
The term of this sequence is for: 2 YEARS .
MONTHLY SCHEDULED QUANTITY(THERMS)
January 120,435 July 128,681
February 109,844 August 129,332
March 118,947 September 121,080
April 118,830 October 128,340
May 128,588 November 118,380
June 123,060 December 123,969
Annual Quantity 1,469,486 Use or Pay Aggregator(Yes/No) NO
Customer's regular days for operations under this sequence are:
M x T x W x Th x F x Sat x Sun x
Form 6597-1 -Revised 6/2003 2 MSC#41824 Contract#223611 vl q
Section 3 -Other Existinq Transportation/Exchange Arrangements
(1) Customer has existing intrastate transportation/exchange arrangements with Utility:
(2) Date of Arrangement:
(3)Term of Arrangement:
(4)This Agreement shall have no impact on such existing arrangement except:
Section 4 -Transportation Services
Customers"Order Control Code" (OCC)for gas transportation by Utility is : C196
In the event Customer has elected Transportation Services herein, a Transportation Services
Addendum must be completed to indicate the specific account to which any applicable imbalance charges
pursuant to imbalance service provided under Tariff Schedule G-IMB shall be applied. Additional
elections may be made by the customer, including but not limited to the use of Agent or Contracted
Marketer services.Any elections, or changes thereto, made on the Transportation Services Addendum
shall be applicable to all Customer Agreements and facilities utilizing the same Order Control Code.
Section 5- Billing and Payment
Billing and Payment for services hereunder shall be as provided in Utility's Tariff Rule No. 9. Any
special billing instructions should be noted in Section 7(E).
Section 6-Transfer of Riqhts
Subject to Section 7(A), this Agreement and the rights and obligations hereunder shall only be
transferred or assigned with the prior written consent of Utility which shall not be withheld unreasonably,
provided that any successor first establishes its "creditworthiness"and assumes such contractual rights
and obligations in writing.
Section 7 - Miscellaneous
A. Use or PaV Aqqreqator: N/A
Use or Pay Aggregators will automatically be authorized to access Customer's meter usage. To the
extent applicable, appropriate authorization by Customer(including the terms and conditions thereof)has
been executed and incorporated by reference (as supplemented from time to time) in this Agreement.
B. Contacts/Notices:
Any written notices from one party to the other affecting this Agreement shall be sent to the following
locations (unless changed by seven days prior written notice):
Customer Utility
CITY OF PALM SPRINGS Southern California Gas Company
425 N. CIVIC DR. P.O. BOX 3003
PALM SPRINGS, CA 92263-2743 REDLANDS, CA 92373
Attn: MR.JAN ANDERSON Attn: Mr. Scott Ackley
Title: FACILITIES MAINT. MGR. Title: Account Executive
Form 6597-1 -Revised 6/2003 3 MSC#41824 Contract#223651
C. Definitions:
All definitions set forth in the Tariffs, including without limitation Utility Rule No. 1, are incorporated
herein by reference as if set forth in full.
D. Miscellaneous Legal Provisions:
This Agreement incorporates by reference all terms and conditions of the MSC.
E. Special Conditions: The following special conditions of service are applicable hereto:
N/A
IN WITNESS WHEREOF, the authorized representatives of the parties have executed two duplicate
original copies hereof.
Customer Utility
CITY OF PALM SPRINGS Southern California Gas Company
Signature: Signature:
Name: MR. DAVID H READY Name: Ms. Alexandra DeCarlo
Title: CITY MANAGER Title: Major Industrial Sry Mgr
ATTEST:
City Clerk
Form 6597-1 -Revised 612003 4 MSC#41624 Contract#223651
MASTER SERVICES CONTRACT
SCHEDULE A—INTRASTATE TRANSMISSION SERVICE
TRANSPORTATION SERVICES ADDENDUM
Order Control Code: C196
The Customer acknowledges that the above Order Control Code (OCC)shall be used to associate
Customer's nominations and deliveries to individual Customer facilities. Any rights or access granted
herein by the Customer shall be applicable to all Agreements and facilities utilizing the above OCC.
Any applicable imbalance charges pursuant to Tariff Schedule G-IMB associated with the OCC
selected above shall be charged to account number: 18-2122-200-871-1. For any Customer utilizing the
services of a Contracted Marketer, a summary of transactional activities shall be provided to the following
designated account: 18-8390-074.801-1.
Contracted Marketer Services:
In accordance with Tariff Rule No. 35, Customers may elect a Contracted Marketer to purchase,
nominate, trade and balance the Customer's gas requirements. This election, along with confirmation of
this election by the Contracted Marketer, and any changes to this election, must be received by Utility not
less than ten days prior to the effective date of the election.
Customer hereb designates terminates (circle one) : OCCIDENTAL ENERGY MARKETING, INC.
OEMI as the Contrac a eter for the above OCC.
Authorized to access Customer's meter usage: YES
Will nominate on Customer's behalf:YES
Will trade on Customer's behalf:YES
Aqent Services:
Customers may elect an Agent to purchase, nominate, and trade on their behalf. Any changes to
the Agent designations below must be received by the Utility not less than ten days prior to the effective
date of the election.
Customer hereby designates/terminates (circle one): N/A as an Agent for the above OCC.
Authorized to access Customer's meter usage: N/A
Will nominate on Customer's behalf: NIA
Will trade on Customer's behalf: NIA
If Customer designates an Agent or Contracted Marketer, any communications made by such Agent
or Contracted Marketer shall be binding on Customer and shall prevail in any conflict during the period
such authorization remains in effect. Such authorization shall remain in effect for the term of this
Agreement unless otherwise specified in the initial authorization, or unless terminated pursuant to written
notification received by the Utility.
Effective the first day of: I® (month/year)
Customer:
Signature: Date:
Name: Title:
ATTEST:
„ 11,
Form 8597-21 -6/2003 City Clerk Msc#ataza contract#zz3�1.._� � ?;
MASTER SERVICES CONTRACT
SCHEDULE A
INTRASTATE TRANSMISSION SERVICE
This Agreement is entered into by and between Southern California Gas Company("Utility")
and CITY OF PALM SPRINGS ("Customer")as of the 10th day of May, 2005 . This Agreement shall be
deemed attached to and incorporated as a Schedule in the Master Services Contract("MSC") executed
by the Parties.
NOW THEREFORE, in consideration of the promises and mutual undertakings set forth herein, the
parties agree as follows:
Section 1 -Scope
A. Intent
This Agreement sets forth the general terms and conditions under which Utility will transport gas, or
transport and procure gas, for Customer in California pursuant to Utility's applicable Tariff Rate Schedules
and Tariff Rules ("Tariffs")on file with the Public Utilities Commission of the State of California ("CPUC"),
as are in effect from time to time.
To the extent not inconsistent herewith, the provisions of the MSC are incorporated by reference in
this Agreement.All transmission services by Utility shall be paid for by Customer at the rates specified in
the applicable Tariffs, except as otherwise specified herein. Nothing in this Agreement shall be construed
as preventing Utility and Customer from mutually agreeing to conditions which are more stringent than set
forth in the Tariffs.
B. Effective Daterrerm
(1)The Effective Date of this Agreement shall be as of 12:00 AM on August 1st,2005.
(2)The initial term of this Agreement shall end on August 1st,2007.
(3) Billing Schedule Sequences for terms less than the initial term of this Agreement may be
amended or renewed upon expiration as permitted or required in the applicable Tariffs on file with
the CPUC. In the event any such Billing Schedule Sequences are not amended or renewed by
the Customer, an available Tariff Service that allows a month term may be provided.
At the end of the initial term, this Agreement shall continue thereafter on a month to month basis
unless terminated by written notice from one party to the other given not less than twenty(20)days prior
to the last day of the initial term or any month thereafter.
Section 2 -Services Provided and Redelivery Locations
Customer has requested and agreed to pay for, and Utility has determined that Customer is qualified
for transmission services to the following locations (the data provided will be utilized by Utility in
determinations regarding curtailment):
Form 6597-1 -Revised 6/2003 1 MSC#41824 Contract#2230`,
}
Facility A
Facility Name: CTY OF PS-MUNICIPAL
Account Number: 18-8390-074-801-1
Address: 3200 E. TAHQUITZ MCCALLUM WY.
PALM SPRINGS, CA 92262
Mail copy of Bill to this Facility: NO
Facility Mailing Address:
Supplemental Facility Account Number(s):
N/A
Full Requirements YES (Noncore only)
Facility Customer Contacts
Operations Emergency
Name: Mr. STEVE VINCI Name: Mr. STEVE VINCI
Title: Title:
Address: 3200 E.TAHQUITZ CANYON WAY. Address: 3200 E.TAHQUITZ CANYON WAY.
PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 _
Tel. No: (760) 323-8167 Tel. No: (760) 323-8167
Fax No: (760)322-5581 Fax No: (760)322-5581
Customer shall notify Utility in the event of any change in the gas requirements or notification designations
for this facility.
L BILLING SCHEDULE SEQUENCE 01
r Otherwise
Net Transmission Rates Applicable
Rate Schedule Priority Billed Tariff/Negotiated Rate
GT-F5 FIRM N/A -TARIFF-
The term of this sequence is for: 2 YEARS .
MONTHLY SCHEDULED QUANTITY(THERMS)
January 120,435 July 128,681
February 109,844 August 129,332
March 118,947 September 121,080
April 118,830 October 128,340
May 128,588 November 118,380
June 123,060 December 123,969
Annual Quantity 1,469,486 Use or Pay Aggregator(Yes/No) NO
Customer's regular days for operations under this sequence are:
M x T x W x Th x F x Sat x Sun x
Form 6597-1-Revised 6/2003 2 MSC#41824 Contract#224fi51.1,,., ,
Section 3 - Other Existing Transportation/Exchange Arrangements
(1) Customer has existing intrastate transportation/exchange arrangements with Utility:
(2) Date of Arrangement:
(3)Term of Arrangement:
(4)This Agreement shall have no impact on such existing arrangement except:
Section 4 -Transportation Services
Customers"Order Control Code" (OCC)for gas transportation by Utility is : C196
In the event Customer has elected Transportation Services herein, a Transportation Services
Addendum must be completed to indicate the specific account to which any applicable imbalance charges
pursuant to imbalance service provided under Tariff Schedule G-IMB shall be applied. Additional
elections may be made by the customer, including but not limited to the use of Agent or Contracted
Marketer services.Any elections, or changes thereto, made on the Transportation Services Addendum
shall be applicable to all Customer Agreements and facilities utilizing the same Order Control Code.
Section 5 -Billing and Payment
Billing and Payment for services hereunder shall be as provided in Utility's Tariff Rule No. 9. Any
special billing instructions should be noted in Section 7(E).
Section 6 -Transfer of Rights
Subject to Section 7(A), this Agreement and the rights and obligations hereunder shall only be
transferred or assigned with the prior written consent of Utility which shall not be withheld unreasonably,
provided that any successor first establishes its"creditworthiness"and assumes such contractual rights
and obligations in writing.
Section 7- Miscellaneous
A. Use or Pav Aggregator: NIA
Use or Pay Aggregators will automatically be authorized to access Customer's meter usage. To the
extent applicable, appropriate authorization by Customer(including the terms and conditions thereof) has
been executed and incorporated by reference (as supplemented from time to time) in this Agreement.
B. Contacts/Notices:
Any written notices from one party to the other affecting this Agreement shall be sent to the following
locations (unless changed by seven days prior written notice):
Customer Utility
CITY OF PALM SPRINGS Southern California Gas Company
425 N. CIVIC DR. P.O. BOX 3003
PALM SPRINGS, CA 92263-2743 REDLANDS, CA 92373
Attn: MR. JAN ANDERSON Attn: Mr. Scott Ackley
Title: FACILITIES MAINT. MGR. Title: Account Executive
Form 6597-1 -Revised 6/2003 3 MSC#41824 Contract#22365'I Y'VI ,,,
C. Definitions:
All definitions set forth in the Tariffs, including without limitation Utility Rule No. 1, are incorporated
herein by reference as if set forth in full.
D. Miscellaneous Leqal Provisions:
This Agreement incorporates by reference all terms and conditions of the MSC.
E. Special Conditions: The following special conditions of service are applicable hereto:
NIA
IN WITNESS WHEREOF, the authorized representatives of the parties have executed two duplicate
original copies hereof.
Customer Utility
CITY OF PALM SPRINGS Southern California Gas Company
Signature: Signature:
Name: MR. DAVID H READY Name: Ms. Alexandra DeCarlo
Title: CITY MANAGER Title: Major Industrial Sry Mgr
ATTEST:
City Clerk
Form 6597-1 -Revised 6/2003 4 MSC#41824 Contract#223651
MASTER SERVICES CONTRACT
SCHEDULE A—INTRASTATE TRANSMISSION SERVICE
TRANSPORTATION SERVICES ADDENDUM
Order Control Code: C196
The Customer acknowledges that the above Order Control Code (OCC)shall be used to associate
Customer's nominations and deliveries to individual Customer facilities. Any rights or access granted
herein by the Customer shall be applicable to all Agreements and facilities utilizing the above OCC.
Any applicable imbalance charges pursuant to Tariff Schedule G-IMB associated with the OCC
selected above shall be charged to account number: 18-2122-200-871-1. For any Customer utilizing the
services of a Contracted Marketer, a summary of transactional activities shall be provided to the following
designated account: 18-8390.074-801-1.
Contracted Marketer Services:
In accordance with Tariff Rule No. 35, Customers may elect a Contracted Marketer to purchase,
nominate,trade and balance the Customer's gas requirements. This election, along with confirmation of
this election by the Contracted Marketer, and any changes to this election, must be received by Utility not
less than ten days prior to the effective date of the election.
Customer her by designate% rminates (circle one) : OCCIDENTAL ENERGY MARKETING, INC.
O( EMI) as the Contr r for the above OCC.
Authorized to access Customer's meter usage:YES
Will nominate on Customer's behalf:YES
Will trade on Customer's behalf:YES
Aqent Services:
Customers may elect an Agent to purchase, nominate, and trade on their behalf. Any changes to
the Agent designations below must be received by the Utility not less than ten days prior to the effective
date of the election.
Customer hereby designates/terminates (circle one): NIA as an Agent for the above OCC.
Authorized to access Customer's meter usage: NIA
Will nominate on Customer's behalf: N/A
Will trade on Customer's behalf: N/A
If Customer designates an Agent or Contracted Marketer, any communications made by such Agent
or Contracted Marketer shall be binding on Customer and shall prevail in any conflict during the period
such authorization remains in effect. Such authorization shall remain in effect for the term of this
Agreement unless otherwise specified in the initial authorization, or unless terminated pursuant to written
notification received by the Utility.
Effective the first day of: / (month/year)
I
Customer:
Signature: Date:
Name: Title:
rA�ATTEST:
IITQQ:
F6f N5P!� ' �/2003 MSC#41824 Contract f?231,5,19