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HomeMy WebLinkAbout02056 - SCE EDISON POWER PURCHASE COGEN SUNRISE PLAZA �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 ------ -- ------ --- -- 3 4 5 6 7 8 9 10 11 POWER PURCHASE CONTRACT 12 BETWEEN 13 SOUTHERN CALIFORNIA EDISON COMPANY 14 AND 15 CITY OF PALM SPRINGS 16 SUNRISE PLAZA 17 18 19 20 21 22 23 24 25 26 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 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 -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 9 10 // 12 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