HomeMy WebLinkAbout15 Attachment 2 - WAPA Base Resource Contract
Contract 20-SNR-02339
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
CONTRACT FOR ELECTRIC SERVICE
BASE RESOURCE
WITH
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
ATTACHMENT NO. 2
Contract 20-SNR-02339
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UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA REGION CONTRACT FOR ELECTRIC SERVICE BASE RESOURCE WITH TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Section Table of Contents Page
1. Preamble .............................................................................................................. 1
2. Explanatory Recitals ............................................................................................. 1
3. Agreement ............................................................................................................ 3
4. Effective Date and Term of Contract .................................................................... 3
5. Definition of Terms ............................................................................................... 3
6. Base Resource Estimates and Availability Forecast ............................................. 9
7. Electric Service Furnished by WAPA .................................................................... 9
8. Delivery Arrangements ....................................................................................... 11
9. Scheduling Procedures, Business Practices and Protocols ............................... 11
10. Exchange Program ............................................................................................. 13
11. Independent System Operator or Regional Transmission Organization ............. 14
12. WAPA Rates....................................................................................................... 15
13. Integrated Resource Plan ................................................................................... 16
14. Adjustment of Base Resource Percentage ......................................................... 16
15. Metering and Power Measurement Responsibilities ........................................... 17
16. Changes in Organizational Status ...................................................................... 19
17. Protocols, Business Practices and Procedures .................................................. 20
18. Enforceability ...................................................................................................... 21
19. General Power Contract Provisions .................................................................... 21
20. Exhibits Made Part of Contract ........................................................................... 21
21. Execution by Counterparts ................................................................................. 22
22. Electronic Signatures .......................................................................................... 22
Signature Clause
Resolution/Certificate
General Power Contract Provisions
Exhibit A – Base Resource Percentage and Point(s) of Delivery
Exhibit B – Exchange Program
Exhibit C – Regulation and Reserves
Exhibit D – Rate Schedule
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Contract 20-SNR-02339
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
CONTRACT FOR ELECTRIC SERVICE
BASE RESOURCE
WITH
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
1. PREAMBLE: This Contract is made this ______ day of ___________________,
202___, pursuant to the Acts of Congress approved June 17, 1902, (32 Stat. 388);
August 26, 1937, (50 Stat. 844); August 4, 1939, (53 Stat. 1187); and August 4, 1977,
(91 Stat. 565); and Acts amendatory or supplementary to the foregoing Acts; between
the UNITED STATES OF AMERICA (United States), acting by and through the
Administrator, Western Area Power Administration, Department of Energy, hereinafter
called WAPA, represented by the officer executing this Contract, or a duly appointed
successor, hereinafter called the Contracting Officer; and TRUCKEE DONNER PUBLIC
UTILITY DISTRICT, a public utility district, organized and existing under the laws of the
State of California, hereinafter called the Contractor or TDPUD, its successors and
assigns; each sometimes hereinafter individually called the Party, and both sometimes
hereinafter collectively called the Parties.
2. EXPLANATORY RECITALS:
2.1 WAPA markets the surplus generation from, and operates a high-voltage
transmission system as a part of, the Central Valley Project (CVP).
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2.2 WAPA and the U.S. Department of the Interior, Bureau of Reclamation
(Reclamation), have agreed to work together to efficiently serve Project Use and
Preference Customer loads.
2.3 On August 15, 2017, WAPA’s final 2025 Power Marketing Plan (Marketing
Plan) was published in the Federal Register (82 FR 38675). The Marketing Plan
sets forth how WAPA’s Sierra Nevada Region will market the power generated
from the CVP and Washoe Project.
2.4 The Marketing Plan provides that starting on January 1, 2025, WAPA will
provide 98 percent of available CVP power to its existing Customers. Existing
Customers will have the right to extend 98 percent of their current Base
Resource percentage as provided in the Marketing Plan and under the terms and
conditions of this Contract.
2.5 On June 17, 2019, WAPA’s Notice of Final 2025 Resource Pool
Allocations was published in the Federal Register (84 FR 28039), and TDPUD
received an allocation.
2.6 TDPUD desires to purchase and WAPA is willing to provide a percentage
of the Base Resource consistent with the Marketing Plan and the terms and
conditions of this Contract.
2.7 Under the Marketing Plan, WAPA requires that its Customers schedule
power in accordance with applicable operating requirements, including those of
the balancing authority area operator and WAPA’s sub-balancing authority area
requirements.
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2.8 WAPA markets power to Federal Preference Customers at the lowest
possible rates consistent with sound business principles pursuant to Section 1.1
of Delegation Order 00-037.00B.
3. AGREEMENT:
The Parties agree to the terms and conditions set forth herein.
4. EFFECTIVE DATE AND TERM OF CONTRACT:
4.1 This Contract shall become effective on the date of execution and shall
remain in effect until midnight of December 31, 2054, subject to prior termination
as otherwise provided for herein.
4.2 TDPUD may reduce its Base Resource percentage or terminate this
Contract for any reason through June 30, 2024.
4.3 The date of initial service under this Contract is January 1, 2025.
5. DEFINITION OF TERMS:
As used herein, the following terms whether singular or plural, or used with or without
initial capitalization, shall have the following meanings:
5.1 “Ancillary Services” means those services that are necessary to support
the transmission of capacity and energy from resources to loads while
maintaining reliable operation of the transmission system in accordance with
Good Utility Practice.
5.2 “BANC” means the Balancing Authority of Northern California or its
successor.
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5.3 “Base Resource” means CVP and Washoe Project power (capacity and
energy) output determined by WAPA to be available for Customers, including the
Environmental Attributes, only after meeting the requirements of Project Use and
First Preference Customers, and any adjustments for maintenance, reserves,
system losses, and certain ancillary services.
5.4 “Base Resource Operating Capability” means that portion of the Maximum
Operating Capability that WAPA determines to be available to Customers in any
hour.
5.5 “CAISO” means the California Independent System Operator or its
successor.
5.6 “Capacity” means the electrical capability of a generator, transformer,
transmission circuit or other equipment.
5.7 “Central Valley Project (CVP)” means the multipurpose Federal water
development project extending from the Cascade Range in northern California to
the plains along the Kern River, south of the City of Bakersfield.
5.8 “Custom Product” means a combination of products and services which
may be made available by WAPA per Customer request.
5.9 “Customer” means an entity with a contract and receiving electric service
from WAPA’s Sierra Nevada Region.
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5.10 “Energy” means capacity measured in terms of the work it is capable of
doing over a period of time; electric energy is usually measured in kilowatthours
or megawatthours.
5.11 “Environmental Attributes” means any and all credits, benefits, emissions
reductions, offsets, and allowances, howsoever entitled, attributable to the Base
Resource, and its avoided emission of pollutants.
5.12 “FERC” means the Federal Energy Regulatory Commission or its
successor.
5.13 “First Preference Customer” means a Preference Customer within a
county of origin (Trinity, Calaveras, and Tuolumne) as specified under the Trinity
River Division Act (69 Stat. 719) and the New Melones Project provisions of the
Flood Control Act of 1962 (76 Stat. 1173, 1191-1192).
5.14 “Full Load Service Customer” means a Customer that will have its entire
load at its delivery point(s) met by WAPA, and its Portfolio Manager functions for
those delivery point(s) performed by WAPA.
5.15 “Marketing Plan” means WAPA’s final 2025 Power Marketing Plan for the
Sierra Nevada Region.
5.16 “Maximum Operating Capability” means the maximum electrical capability
from CVP generation available to produce energy, capacity and/or provide
ancillary services in any one or more hours.
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5.17 “Minimum Base Resource” means the amount of Base Resource energy
generated each hour as a result of CVP minimum water releases.
5.18 “NERC” means the North American Electric Reliability Corporation or its
successor.
5.19 “Operating Reserves” means the combination of spinning and non-
spinning reserves required to meet WECC, NERC, and operating requirements,
including those of the balancing authority area or WAPA’s sub-balancing
authority area.
5.20 “Portfolio Manager” means an entity responsible for determining balanced
hourly load and resource schedules for a Customer.
5.21 “Power” means capacity and energy.
5.22 “Preference” means the requirements of Reclamation Law that provide for
preference in the sale of Federal power be given to certain entities, such as
governments (state, Federal and Native American), municipalities and other
public corporations or agencies, and cooperatives and other nonprofit
organizations financed in whole or in part by loans made pursuant to the Rural
Electrification Act of 1936 (See, e.g., Reclamation Project Act of 1939,
Section 9(c), 43 USC 485h(c)).
5.23 “Primary Marketing Area” means the area generally encompassing
northern and central California, extending from the Cascade Range to the
Tehachapi Mountains and west-central Nevada.
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5.24 “Project Use” means power as defined by Reclamation Law and/or used to
operate CVP and Washoe Project facilities.
5.25 “Rate” means the monetary charge or the formula for computing such a
charge for any electric service provided by WAPA, including but not limited to
charges for capacity (or demand), energy, or transmission service; however, it
does not include leasing fees, service facility charges, or other types of facility
use charges. A Rate will be set forth in a Rate Schedule or in a contract.
5.26 “Rate Adjustment” means a change in an existing Rate or Rates, or the
establishment of a Rate or Rates for a new service. It does not include a change
in Rate Schedule provisions or in contract terms, other than changes in the price
per unit of service, nor does it include changes in the monetary charge pursuant
to a formula stated in a Rate Schedule or a contract.
5.27 “Rate Adjustment Procedures” means those procedures for Rate
Adjustments developed by WAPA, Department of Energy (DOE) or FERC which
include DOE Order 00-037.00B, DOE Order RA 6120-2, 10 CFR 903, and
18 CFR 300, as may be amended.
5.28 “Rate Effective Date” means the first date of the billing period to which a
Rate Schedule or Rate Schedule extension applies. WAPA will provide notice to
the Customers of the Rate Effective Date.
5.29 “Rate Schedule” means a document identified such as a “Rate Schedule,”
“Schedule of Rates,” or “Schedule Rate” which designates the Rate or Rates
applicable to a class of service specified therein and may contain other terms
and conditions relating to the service. On the effective date of this Contract,
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18 CFR 300.1(b)(6) provides FERC may not approve a WAPA Rate Schedule for
a period that exceeds five (5) years. The Rate Schedule shall include the Rate
Effective Date and the effective period of the Rate Schedule.
5.30 “Regional Transmission Organization (RTO)” means an organization that
meets the minimum characteristics and performs the minimum functions
specified in FERC Order 2000, as that order may be amended or superseded.
5.31 “Regulation” means the service provided by generating units equipped
and operating with automatic generation control which will enable such units to
respond to direct control signals in an upward or downward direction to match, on
a real time basis, demand and resources, consistent with WECC, NERC, and the
balancing authority area operator’s criteria.
5.32 “Scheduling Coordinator” means an entity that is responsible for providing
hourly load and resource schedules to the balancing authority area operator or
WAPA’s sub-balancing authority area, in accordance with a FERC-approved tariff
or WAPA’s procedures and practices.
5.33 “Variable Resource Customer” means a Customer that is responsible for
managing its own energy portfolio.
5.34 “Washoe Project” means the Federal water project located in the
Lahontan Basin in west-central Nevada and east-central California.
5.35 “WECC” means the Western Electricity Coordinating Council or its
successor.
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6. BASE RESOURCE ESTIMATES AND AVAILABILITY FORECAST:
6.1 At the beginning of each water year, WAPA will post to WAPA’s external
website a five-year forecast of Base Resource Operating Capability estimated to
be available, based on high, average, and low hydrological conditions. The
forecast will contain the following information:
6.1.1 Maximum Operating Capability of the CVP for each month;
6.1.2 Energy required for estimated Project Use loads, First Preference
Customers’ loads, and ancillary service requirements.
6.2 Each month, WAPA will post to WAPA’s external website a monthly Base
Resource forecast of Base Resource Operating Capability and energy estimated
to be available for each month on a rolling twelve-month basis, based on high,
average, and low hydrological conditions. The monthly forecast will contain the
following information:
6.2.1 Maximum Operating Capability of the CVP for each month;
6.2.2 Energy required for estimated Project Use loads, First Preference
Customers’ loads, and ancillary service requirements.
6.3 WAPA shall make reasonable efforts, within its control, to ensure the
forecasted Base Resource will be available.
7. ELECTRIC SERVICE FURNISHED BY WAPA:
7.1 TDPUD will be entitled to receive a percentage of the Base Resource as
set forth in Exhibit A.
7.2 The estimated amount of energy available to TDPUD shall be determined
by multiplying its Base Resource percentage by the total amount of Base
Resource energy available during that period.
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7.3 The minimum amount of energy TDPUD will be required to schedule for
each hour shall be determined by multiplying its Base Resource percentage by
the Minimum Base Resource, unless otherwise agreed to by WAPA. However, if
TDPUD does not have sufficient load to take its percentage of the Minimum Base
Resource, any excess energy shall be made available to WAPA for the
Exchange Program as described later in this Contract under Section 10 and
Exhibit B.
7.4 The maximum amount of energy TDPUD may schedule in any hour shall
be determined by multiplying its Base Resource percentage by the Base
Resource Operating Capability. However, TDPUD may schedule energy in
excess of this maximum, if approved by WAPA, to accommodate purchases or
exchanges from the Exchange Program.
7.5 TDPUD will be entitled to the benefit of available regulation and operating
reserves from the CVP in proportion to its Base Resource percentage. The
method for calculating regulation and operating reserves is set forth in Exhibit C.
7.6 WAPA’s obligation to provide TDPUD’s Base Resource is limited to the
actual CVP generation available on a real-time basis. WAPA shall have no
obligation to replace any Base Resource that is unavailable; for instance, Base
Resource that is unavailable due to scheduled maintenance, system
emergencies, forced outages, or other constraints. Any costs incurred by either
Party as a result of deviations between actual and scheduled Base Resource
energy shall be the responsibility of TDPUD. WAPA will notify TDPUD as soon
as reasonably practicable of any situation that will impact the availability of the
Base Resource, and will modify schedules accordingly, on a pro-rata basis.
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7.7 Due to the variable nature of the Base Resource, WAPA may provide a
Custom Product upon a Customer’s request. Any Custom Product will be the
subject of a separate contractual arrangement.
8. DELIVERY ARRANGEMENTS:
8.1 WAPA will make TDPUD’s Base Resource available at the generator bus
or such other delivery point(s) on the CVP transmission system as the Parties will
mutually agree, as specified in Exhibit A. WAPA reserves Network Integration
Transmission Service for the delivery of Base Resource on the CVP transmission
system under its Open Access Transmission Tariff (OATT). The rates and terms
of this service shall be in accordance with WAPA’s then-current rate schedule
and OATT.
8.2 If requested by WAPA, TDPUD must provide written notification to WAPA
by July 1, 2024, demonstrating that it has arranged for delivery of its Base
Resource energy to its load. Such notification shall include both transmission
and distribution level arrangements, as applicable. WAPA shall have no
obligation to make Base Resource available to TDPUD if delivery arrangements
are not in effect. However, TDPUD shall not be relieved of its obligation to pay
its percentage share of the Base Resource during the time in which delivery
arrangements are not in effect.
9. SCHEDULING PROCEDURES, BUSINESS PRACTICES AND PROTOCOLS:
9.1 All energy furnished by WAPA to TDPUD will be provided on a scheduled
basis. TDPUD agrees to abide by the scheduling procedures, business practices
and protocols of the applicable balancing authority area or WAPA’s sub-
balancing authority area, as set forth on WAPA’s website. The Parties recognize
that the scheduling procedures, business practices and protocols may require
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modification from time-to-time to reflect updated operating procedures that may
become applicable to the Parties. In such event, WAPA will make such changes
in accordance with Section 17 of this Contract.
9.2 Designation of Scheduling Coordinator (SC): If TDPUD is required to
have a Scheduling Coordinator; TDPUD shall notify WAPA of its designated
Scheduling Coordinator not less than ninety (90) days prior to the date of initial
service under this Contract. In the event that TDPUD’s Scheduling Coordinator
arrangement changes, TDPUD shall notify WAPA in writing, not less than thirty
(30) days prior to the change, unless a shorter notification period is agreed to by
WAPA.
9.3 If WAPA is TDPUD’s Portfolio Manager, as set forth in a separate
Custom Product Contract, all scheduling activities and responsibilities will
be performed by WAPA on behalf of TDPUD. At such time as WAPA is no
longer TDPUD’s Portfolio Manager, then TDPUD will be responsible for
performance of its duties under this Section 9.
9.4 WAPA will provide Customers with the opportunity to comment on
WAPA’s maintenance and operations plans. WAPA will facilitate Customer
meetings with the Bureau of Reclamation regarding cost and operation planning.
9.5 In the event that TDPUD does not abide by the protocols, business
practices and procedures and WAPA incurs costs as a result, TDPUD is
responsible for and shall pay such costs.
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10. EXCHANGE PROGRAM:
10.1 WAPA will establish and manage an Exchange Program to allow all
Customers to fully and efficiently use their Base Resource percentage. The
Exchange Program is a mechanism to:
10.1.1 Make available to WAPA, for provision to other Customers, any
Base Resource energy a Customer cannot use on a pre-scheduled basis
due to insufficient load; and
10.1.2 Help mitigate the costs incurred by a Customer for the power it is
obligated to pay for, but may not be able to use.
10.2 Under the Exchange Program, all Base Resource energy in excess of
TDPUD’s load will be retained by WAPA and offered by WAPA for sale to other
Customers. TDPUD may purchase energy from the Exchange Program. While
WAPA’s retention of excess Base Resource is mandatory, purchasing from the
Exchange Program is voluntary.
10.3 The Exchange Program procedures are set forth in Exhibit B. WAPA may
change the program and procedures of the Exchange Program in accordance
with Section 17 of this Contract.
10.4 WAPA will also offer a seasonal Exchange Program. Under the seasonal
Exchange Program, TDPUD may elect to make available to WAPA that portion of
its Base Resource percentage that it is unable to use due to insufficient load.
TDPUD, through WAPA, will be able to exchange its unusable Base Resource
percentage with other Customers. Any Customer may submit a request to
WAPA to exchange or purchase energy through the seasonal Exchange
Program. Details of a seasonal exchange will be developed with the Customer
upon request by that Customer.
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10.5 Exchanges of the Base Resource between TDPUD and others outside of
the WAPA-managed Exchange Programs, or other WAPA-managed programs,
are prohibited.
11. INDEPENDENT SYSTEM OPERATOR OR REGIONAL TRANSMISSION
ORGANIZATION:
11.1 WAPA is a sub-balancing authority area within BANC. WAPA operates in
conformance with its sub-balancing authority area and BANC’s balancing
authority area protocols, business practices and procedures. In the event of
changes to any protocols, business practices and procedures, WAPA may make
any changes necessary to this Contract to conform to the operating and
scheduling protocols, business practices and procedures in accordance with
Section 17 of this Contract.
11.2 The Parties understand that, in the future, WAPA may also change its
operating configuration such as by: (1) joining an independent system operator or
RTO or (2) participating in future markets such as energy imbalance markets; or
(3) making system configurations to meet future operating requirements. In such
an event, if WAPA is required to conform to the protocols, business practices or
procedures, WAPA shall make changes to this Contract to conform to the terms
and conditions required by such events in accordance with Section 17 of this
Contract.
11.3 In the event that: 1) WAPA incurs costs from the balancing authority area,
WAPA’s sub-balancing authority area, CAISO, an RTO, or a different balancing
authority area for serving TDPUD’s load; or 2) TDPUD does not abide by the
protocols business practices, or procedures of the balancing authority area, an
RTO, or other balancing authority area operator that are applicable to WAPA and
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WAPA incurs costs as a result, TDPUD agrees to pay all such costs attributable
to TDPUD.
12. WAPA RATES:
12.1 The Base Resource will be provided on a take-or-pay basis. TDPUD will
be obligated to pay its Base Resource percentage share in accordance with the
Rate Schedule attached hereto, whether or not it takes or uses its full Base
Resource percentage.
12.2 TDPUD shall pay for the electric service furnished hereunder in
accordance with the Rates, charges, and conditions set forth in the CVP
Schedule of Rates applicable to the Base Resource, effective January 1, 2025,
or any superseding Rate Schedule.
12.3 Rates applicable under this Contract shall be subject to change by WAPA
in accordance with appropriate Rate Adjustment Procedures. If, at any time,
WAPA announces that it has received approval of a Rate Schedule, or extension
of an existing Rate Schedule applicable to this Contract, or if a Rate Adjustment
Procedure is amended, WAPA will promptly notify TDPUD thereof.
12.4 TDPUD, by providing written notice to WAPA within ninety (90) days after
the Rate Effective Date of a Rate Schedule or Rate Schedule extension
applicable to this Contract, may elect to reduce its Base Resource percentage or
terminate this Contract. TDPUD shall designate a Base Resource percentage
reduction or termination effective date that will be effective on the last day of the
billing month not later than two (2) years after the Rate Effective Date. If the
termination effective date is after the Rate Effective Date, the new or extended
Rates shall apply for service taken by TDPUD until the termination effective date.
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Once TDPUD provides notice to terminate or reduce its Base Resource
percentage, WAPA will begin the process to reallocate the Base Resource to
other Preference Customers. TDPUD may not revoke its notice to terminate or
reduce its Base Resource unless WAPA provides written consent.
12.5 Rates shall become effective under this Contract on the Rate Effective
Date stated in a Rate notice.
13. INTEGRATED RESOURCE PLAN:
13.1 In accordance with the Energy Policy Act of 1992, TDPUD is required to
meet the requirements of WAPA’s Energy Planning and Management Program
(EPAMP). To fulfill the requirements of EPAMP, TDPUD must develop and
submit an integrated resource plan or alternative report, as applicable. Specific
EPAMP requirements are set forth in the Federal Register at (64 FR 62604) and
may be found on WAPA’s website. Failure to comply with WAPA’s EPAMP
requirements may result in penalties as specified therein. TDPUD understands
that WAPA may re-evaluate its EPAMP requirements and change them from
time-to-time as appropriate. Such changes will be subject to a public process
and publication in the Federal Register.
13.2 Should the EPAMP requirements be eliminated, TDPUD shall have no
responsibilities under Section 13.1.
14. ADJUSTMENT OF BASE RESOURCE PERCENTAGE:
14.1 Prior to the date of initial service, WAPA may adjust TDPUD’s Base
Resource percentage, as set forth in Exhibit A herein, if WAPA determines that
TDPUD’s Base Resource percentage is greater than its actual usage, as
specified in the Marketing Plan.
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14.2 After the date of initial service, WAPA may adjust TDPUD’s Base
Resource percentage under any of the following conditions:
14.2.1 TDPUD sells energy associated with its Base Resource
percentage to another entity for resale by that entity;
14.2.2 TDPUD uses the energy associated with its Base Resource
percentage to serve loads outside of the Sierra Nevada Region’s Primary
Marketing Area;
14.2.3 TDPUD’s annual energy associated with its Base Resource
percentage, is ten percent or more than its actual annual energy usage.
14.3 If WAPA determines that TDPUD has met any of the conditions in
Section 14.2 above, WAPA will take the following steps:
14.3.1 Notify TDPUD of the nature of the concern;
14.3.2 Analyze TDPUD’s usage of the energy associated with its Base
Resource percentage and determine if an adjustment is necessary on a
case-by-case basis, with due consideration of any circumstance that may
have temporarily altered TDPUD’s energy usage;
14.3.3 If an adjustment is determined to be necessary, provide a 90-day
written notice of such adjustment; and
14.3.4 Reduce or rescind TDPUD’s Base Resource percentage
permanently on the effective date specified in the notice.
15. METERING AND POWER MEASUREMENT RESPONSIBILITIES:
TDPUD shall be responsible for electric power metering equipment requirements and
power measurement data associated with the use of WAPA power under this Contract
as follows:
15.1 Unless previously installed and furnished by WAPA, TDPUD shall furnish,
install, operate, maintain, and replace, meters and associated metering
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equipment required for deliveries of WAPA power scheduled to each delivery
point on the WAPA grid, the CAISO-controlled grid, a utility distribution company
grid, or other electrical system, as may be applicable. Such meters shall comply
with the all applicable meter requirements. For instance, meters on:
15.1.1 WAPA’s system must meet WAPA’s meter requirements;
15.1.2 CAISO’s system must meet CAISO’s meter requirements; and/or
15.1.3 Pacific Gas and Electric Company’s (PG&E) system must meet
PG&E’s meter requirements.
15.2 TDPUD shall measure power deliveries and provide certified settlement-
quality metering data to WAPA as requested. It is generally contemplated that
WAPA will require this data on a monthly basis.
15.3 If WAPA previously installed and furnished a meter to TDPUD, WAPA
shall be allowed unrestricted, unescorted access to its revenue meter equipment.
TDPUD shall provide a minimum of three (3) keys or the combination to
TDPUD’s existing locks. Alternatively, WAPA may provide a WAPA-owned
padlock(s). Access shall include all gates and/or doors required to access the
metering equipment.
15.4 Upon request by TDPUD, to evidence receipt of the Environmental
Attributes, WAPA shall timely provide meter data or other mutually agreed upon
data to TDPUD measuring the amount of CVP energy that is generated and
delivered to TDPUD. Upon mutual agreement of Customers, WAPA and
Reclamation, such meters shall be modified or replaced to meet appropriate
standards or requirements to convey CVP Environmental Attributes to
Customers.
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16. CHANGES IN ORGANIZATIONAL STATUS:
16.1 If TDPUD changes its organizational status or otherwise changes its
obligation to supply electric power to Preference loads, WAPA reserves the right
to adjust WAPA’s power sales obligations under this Contract or to terminate this
Contract, as WAPA deems appropriate. Changes in organizational status
include but are not limited to:
16.1.1 Merging with another entity;
16.1.2 Acquiring or being acquired by another entity;
16.1.3 Creating a new entity from an existing one;
16.1.4 Joining or withdrawing from a member-based power supply
organization; or
16.1.5 Adding or losing members from its membership organization.
16.2 For the purposes of this Section 16, a member is any Preference entity
that is included in a membership, which has the responsibility of supplying power
to the end-use consumer or Customer. Memberships include but are not limited
to:
16.2.1 Municipality;
16.2.2 Cooperative;
16.2.3 Joint powers authority; or
16.2.4 Governmental agency.
16.3 For purposes of this Section 16, participation in a State promulgated direct
access program shall not be deemed to be a change in a Customer’s
organizational status or its obligation to supply electric power to Preference
loads.
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16.4 Prior to making an organizational change, TDPUD may request an opinion
from WAPA as to whether TDPUD’s proposed organizational change will result in
an adjustment of TDPUD’s Base Resource percentage or termination under this
Section 16. TDPUD shall provide WAPA with all relevant documents and
information regarding the proposed organizational change. Based on the
documents and information furnished, WAPA will provide TDPUD with an
opinion.
16.5 In addition to the above, if the change in organizational status results in a
proposed transfer of the Contract, or any portion thereof, Section 37 of the
General Power Contract Provisions (GPCP), “Transfer of Interest in Contract,”
generally requires the Customer to obtain prior written approval from WAPA’s
Administrator. Organizational changes that typically propose transfer of the
Contract, or a portion of the Contract, and require prior written approval from
WAPA include but are not limited to:
16.5.1 Merging with another entity;
16.5.2 Acquiring or being acquired by another entity;
16.5.3 Joining an entity; and
16.5.4 Creating a new entity.
17. PROTOCOLS, BUSINESS PRACTICES AND PROCEDURES:
WAPA reserves the right to make changes to protocols, business practices and
procedures, as needed. Prior to making any changes, WAPA will provide notice to
TDPUD and provide TDPUD with an opportunity to comment on such changes. WAPA
will consider any comments made by TDPUD before making any changes, and shall
provide a written response to the comments. After a final decision is made by WAPA, if
TDPUD is not satisfied with the decision, TDPUD shall have thirty (30) days from the
date of WAPA’s final decision to appeal the change to WAPA’s Administrator. WAPA
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will not implement a change that has been appealed until a final decision by the
Administrator. Notwithstanding the provisions within this Section 17, TDPUD shall
retain its right to pursue other legal remedies available to it.
18. ENFORCEABILITY:
It is not the intent of the Parties that this Contract confer any rights on third parties to
enforce the provisions of this Contract except as required by law or express provision in
this Contract. Except as provided in this Section, this Contract may be enforced, or
caused to be enforced, only by WAPA or TDPUD, or their successors or assigns.
19. GENERAL POWER CONTRACT PROVISIONS:
The GPCP, effective September 1, 2007, attached hereto, are hereby made a part of
this Contract, the same as if they had been expressly set forth herein; Except
Section 11 shall not be applicable to this Contract. In the event of a conflict between
the GPCP and the provisions in the body of this Contract, the Contract shall control.
The usage of the term “Contractor” in the GPCP shall mean TDPUD. The usage of the
term “firm” in Articles 17 and 18 of the GPCP shall be deemed to be replaced with the
words “Base Resource.”
20. EXHIBITS MADE PART OF CONTRACT:
Exhibit A (Base Resource Percentage and Point(s) of Delivery), Exhibit B (Exchange
Program), Exhibit C (Regulation and Reserves), and Exhibit D (Rate Schedule) existing
under this Contract may vary during the term hereof. Each of said exhibits shall
become a part of this Contract during the term fixed by its provisions. Exhibits A, B, C,
and D are attached hereto, and each shall be in force and effect in accordance with its
terms until respectively superseded by a subsequent exhibit.
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21. EXECUTION BY COUNTERPARTS:
This Contract may be executed in any number of counterparts and, upon execution and
delivery by each Party, the executed and delivered counterparts together shall have the
same force and effect as an original instrument as if all Parties had signed the same
instrument. Any signature page of this Contract may be detached by any counterpart of
the Contract without impairing the legal effect of any signatures thereon, and may be
attached to another counterpart of this Contract identical in form hereto, by having
attached to it one or more signature pages.
22. ELECTRONIC SIGNATURES:
The Parties agree that this Contract may be executed by handwritten signature or
digitally signed using Adobe Sign or Adobe E-Signature. An electronic or digital
signature is the same as a handwritten signature and shall be considered valid and
acceptable.
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Contract 20-SNR-02339 23
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IN WITNESS WHEREOF, the Parties have caused this Contract to be executed the day
and year first above written.
WESTERN AREA POWER ADMINISTRATION
By:
Name: Arun K. Sethi
Title: Vice President of Power Marketing
for Sierra Nevada Region
Address: 114 Parkshore Drive
Folsom, CA 95630-4710
Attest:
By:
Name:
TRUCKEE DONNER PUBLIC UTILITY
DISTRICT
By:
Name: Christa Finn
Title: President of the Board
Address: 11570 Donner Pass Road
Title: Truckee, CA 96161
Contract 20-SNR-02339
1
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Resolution/Certificate
Truckee Donner Public Utility District
Exhibit A to
Contract 20-SNR-02339
Exhibit A to Contract 20-SNR-02339 Page 1 of 1
EXHIBIT A
(Base Resource Percentage and Point(s) of Delivery)
1. This Exhibit A, to be effective under and as part of Contract 20-SNR-02339
(Contract), shall become effective upon execution of the Contract; and shall remain in
effect until either superseded by another Exhibit A or termination of the Contract.
2. Pursuant to the Marketing Plan, TDPUD’s extended Base Resource percentage
is 0.27146.
3. Pursuant to the Final 2025 Resource Pool Allocations, TDPUD received
0.03716 percent of the Base Resource.
4. On the effective date of this Exhibit A, TDPUD’s percentage of the Base
Resource is 0.30862.
5. TDPUD’s Base Resource percentage may be adjusted by WAPA as specified in
the Contract.
6. TDPUD’s Base Resource percentage will be adjusted effective January 1, 2040,
in accordance with the Marketing Plan, to establish the 2040 Resource Pool for new
power allocations.
7. The point(s) of delivery on the CVP transmission system for Shelter Cove’s Base
Resource shall be either WAPA’s Tracy 230-kV or Tracy 500-kV or Cottonwood 230-kV
Substations, or as requested by TDPUD and approved by WAPA.
8. All power deliveries provided under this Contract shall be adjusted for the
applicable transformation and transmission losses on the 230-kV system. Additional
transformation and/or transmission losses shall be applied to deliveries at other than the
230-kV level.
9. This Exhibit A shall be replaced by WAPA as necessary under the terms and
conditions set forth in the Contract, and a signature is not required by either Party.
Truckee Donner Public Utility District
Exhibit B to
Contract 20-SNR-02339
Exhibit B to Contract 20-SNR-02339 Page 1 of 2
EXHIBIT B
(Exchange Program)
1. This Exhibit B, to be effective under and as a part of Contract 20-SNR-02339,
(Contract) shall become effective upon execution of the Contract; and, shall remain in
effect until superseded by another Exhibit B or termination of the Contract.
2. TDPUD is in agreement with the procedures set forth herein.
3. If necessary, WAPA retains the right to make subsequent revisions to Exhibit B
after consultation with its Customers. At such time as WAPA promulgates a revision of
this Exhibit B, TDPUD shall have the option of either accepting the new revision to this
Exhibit B or opting out of making purchases from the Exchange Program. If WAPA
does not receive notice from TDPUD opting out of making purchases from the
Exchange Program within 30 days of TDPUD’s receipt of a revised Exhibit B, TDPUD
may automatically continue to make purchases from the Exchange Program if already
participating.
4. Exchange Program:
4.1 WAPA has established separate Exchange Program for the Full Load
Service Customer group and the Variable Resource Customer group. A
Customer cannot be in both the Full Load Service Customer group and the
Variable Resource Customer group at the same time.
4.2 The Exchange Program will take place on a pre-scheduled basis.
4.3 Base Resource power in excess of a Customer’s load in any hour will be
distributed by WAPA in the applicable Exchange Program group (Full Load
Service or Variable Resource).
4.4 A Customer may choose whether to make purchases from the Exchange
Program for its group. Participation in making purchases from the Exchange
Program requires a Customer to accept Exchange Program power if it has load
in that hour. However, even if a Customer chooses not to participate in making
purchases, if that Customer’s Base Resource amount exceeds its load in any
hour, the excess will go into the Exchange Program for that Customer’s group for
that hour, for use by participating Customers with load not met by Base Resource
power in that hour. In other words, the retention of Base Resource in excess of a
Customer’s load is mandatory, while participation in making purchases from the
Exchange Program is voluntary.
Truckee Donner Public Utility District
Exhibit B to
Contract 20-SNR-02339
Exhibit B to Contract 20-SNR-02339 Page 2 of 2
4.5 If a Customer chooses not to make purchases from the Exchange
Program, a written notice to that effect must be submitted to WAPA by
November 1, 2024. Thereafter, a Customer must submit a written notice to
WAPA at least one (1) month prior to changing its participation status; Except if a
Customer has elected to make purchases from the Exchange Program and
subsequently changes its participation status, the Customer must wait a
minimum of one (1) year to again participate in the Exchange Program.
Participation status will change on the first day of the month following the
required notice period or the minimum one (1) year waiting period.
4.6 A Customer must use its Base Resource power prior to using any other
source to meet its load, unless agreed to by WAPA in writing. A Customer
participating in the Exchange Program must use Exchange Program power prior
to any other source to meet its load, unless agreed to by WAPA in writing.
4.7 Each participating Customer in each group will receive an equal share in
megawatts of that group’s Exchange Program power available for that hour, up to
the Customer’s unmet load in that hour.
4.8 Any Exchange Program power that is excess to a Customer’s unmet load
will go back to the Exchange Program for the group to which the Customer
belongs, for that same hour. This power will be reallocated to participating
Customers in that group on an equal basis until either that group’s Exchange
Program has no remaining power in that hour, or no participating Customers in
that group have unmet load in that hour.
4.9 If there is power remaining in the Full Load Service Exchange Program or
the Variable Resource Exchange Program in any hour, and none of the
participating Customers in that group have unmet load in that hour, the remaining
power will go to the other group’s Exchange Program for that same hour.
4.10 If, in any hour, no participating Customers have unmet load but there is
power remaining in either group’s Exchange Program, that power may be offered
for sale by WAPA unless the amount of power is de minimis.
4.11 Customers’ power bills will be adjusted to reflect transactions into and out
of the Exchange Program.
Truckee Donner Public Utility District
Exhibit C to
Contract 20-SNR-02339
Exhibit C to Contract 20-SNR-02339 Page 1 of 1
EXHIBIT C
(Regulation and Reserves)
1. This Exhibit C to be effective under and as a part of Contract 20-SNR-02339
(Contract), shall become effective upon execution of the Contract; and, shall remain in
effect until superseded by another Exhibit C or termination of the Contract.
2. Definitions of Terms:
2.1 Contingency Reserve: An additional amount of operating reserves
sufficient to reduce Area Control Error (ACE) to zero in ten minutes following loss
of generating capacity, which would result from the most severe single
contingency. Contingency Reserves will consist of Spinning and Nonspinning
Reserves.
2.2 Frequency Response Reserves: Spinning Reserves which provide the
required Frequency Response needed for the reliable operation of an
interconnection. The energy is provided by the generator’s governor’s response
to a frequency deviation from scheduled system frequency.
2.3 Nonspinning Reserve: That operating reserve not connected to the
system but capable of serving demand within ten minutes, or interruptible load
that can be removed from the system within ten minutes.
2.4 Spinning Reserve: Unloaded generation which is synchronized and ready
to serve additional demand.
3. WAPA’s Disposition of Contingency Reserves and Regulation:
3.1 Contingency Reserves: WAPA will provide all Base Resource schedules
with Contingency Reserves, including Spinning, Nonspinning, and Frequency
Response Reserves. Contingency Reserves will be provided from CVP
generation as available, or procured from other sources as necessary.
3.2 Regulation: WAPA will not provide Regulation with Base Resource
schedules. Any sales of Regulation by WAPA will be credited against the Power
Revenue Requirement.
Truckee Donner Public Utility District
Exhibit D to
Contract 20-SNR-02339
Exhibit D to Contract 20-SNR-02339 Page 1 of 9
EXHIBIT D
(Rate Schedule)
1. This Exhibit D to be effective under and as a part of Contract 20-SNR-02339
(Contract), shall become effective upon execution of the Contract; and, shall remain in
effect until superseded by another Exhibit D or termination of the Contract.
2. The CVP Schedule of Rates for Base Resource and First Preference Power
(CV-F13) begins on page 2 of this Exhibit D.
3. This Exhibit D shall be replaced by WAPA as necessary under the terms and
conditions set forth in the Rate Schedule, and a signature is not required by either
Party.
Page 2 of 9
Exhibit D
to Base Resource Contracts/Agreements
Rate Schedule CV-F13
(Supersedes Schedule CV-F12)
UNITED STATES DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
SCHEDULE OF RATES FOR BASE RESOURCE AND FIRST PREFERENCE POWER
Effective:
October 1, 2011, through September 30, 2019. [Note: This rate schedule was extended
by Rate Order No. WAPA-185 through September 30, 2024.]
Available:
Within the marketing area served by the Western Area Power Administration (Western),
Sierra Nevada Customer Service Region.
Applicable:
To the Base Resource (BR) and First Preference (FP) Power Customers.
Character and Conditions of Service:
Alternating current, 60-hertz, three-phase, delivered and metered at the voltages and
points established by contract. This service includes the Central Valley Project (CVP)
transmission (to include reactive supply and voltage control from Federal generation sources
needed to support the transmission service), spinning reserve service, and supplemental reserve
service.
Power Revenue Requirement (PRR):
Western will develop the PRR prior to the start of each fiscal year (FY). The PRR will
be divided in two 6-month periods, October through March and April through September, based
Page 3 of 9
on FP and BR percentages. The PRR for the April-through-September period will be reviewed
in March of each year. The review will analyze financial data from the October-through-
February period, to the extent information is available, as well as forecasted data for the March-
through-September period. If there is a change of $5 million or more, the PRR will be
recalculated for the entire FY. The PRR is allocated to FP Customers and BR Customers based
on formula rates, as adjusted for Hourly Exchange (HE), FP true-up calculation, and midyear
adjustments.
Example of PRR Allocation to FP and BR
Component Formula Allocation
Annual PRR $70,000,000
FP Customers’ Allocation (Total
FP % = 5%)
$70,000,000 x 5% $3,500,000
Remaining PRR Allocated to BR $70,000,000 - $3,500,000 $66,500,000
Note: This example is intended to show the PRR allocation to the customer groups and is not
adjusted for billing, midyear adjustments or FP true-up calculation.
FP Power Formula Rate:
The annual FP customer allocation is equal to the annual PRR multiplied by the relevant
FP percentage. The formula rate for FP power has three components.
Component 1:
FP Customer Percentage = FP Customer Load
Gen + Power Purchases - Project Use FP Customer Charge
= FP Customer Percentage x MRR
Where:
FP Customer Load = An FP Customer’s forecasted annual load in megawatthours (MWh).
Gen = The forecasted annual CVP and Washoe generation (MWh).
Power Purchases = Power purchases for Project Use and FP loads (MWh).
Project Use = The forecasted annual Project Use loads (MWh).
MRR = Monthly PRR.
Page 4 of 9
Western will develop each FP customer’s percentage prior to the start of each FY.
During March of each FY, each FP customer’s percentage will be reviewed. If, as a result of the
review, there is a change in a FP customer’s percentage of more than one-half of 1 percent, the
percentage will be revised for the April-through-September period and billing adjustments made
for the October-through-March period to reflect the revised percentage.
Table 1: Estimated and Actual Year 1 PRR Allocation Due to FP % True-up
FP Customer Year 1 FP %
(Based on
estimate)
Year 1 FP and BR
PRR Allocation
Year 1 Actual FP %
(Determined during
Year 2)
Year 1 FP and BR
Actual (adjusted)
PRR Allocation
Difference
(Applied in
Year 3)
Customer A 0.35% $262,500 0.38% $285,000 $22,500
Customer B 0.90% $675,000 0.85% $637,500 ($37,500)
Customer C 2.80% $2,100,000 2.90% $2,175,000 $75,000
Customer D 0.75% $562,500 0.75% $562,500 $0
Total 4.80% $3,600,000 4.88% $3,660,000 $60,000
BR Customers Contractual % $71,400,000 Contractual % $71,340,000 ($60,000)
Total PRR
(Year 1)
$75,000,000 Total PRR $75,000,000 $0
In addition, Western is adopting a true-up methodology for FP Customers each year in
order to ensure FP Customers pay their proportionate share of the PRR. The FP percentage
true-up calculation will use actual data for the FY being adjusted. Changes to the PRR based on
FP percentage true-up calculations will be incorporated in the PRR at the beginning of each FY
as shown in the example below. As shown in the example in Table 1, the total PRR for Year 1,
on October 1, is $75 million, and estimated revenue requirements are allocated to customers
based on their estimated FP and BR percentages. A true-up of each FP percentage for Year 1
occurs in Year 2 and the difference between the estimated and actual will be reflected in the PRR
in Year 3.
Beginning in Year 3, the PRR, as published on October 1, is $73,000,000. Based on the
true-up methodology, the adjustment (difference seen in Table 1) from Year 1 is factored in the
PRR for Year 3, and payment obligations for both FP and BR Customers are appropriately
adjusted as shown in the Table 2 below.
Page 5 of 9
Table 2: FP % Adjustment from Year 1 (Actual to Estimated) Applied in Year 3
FP Customer Year 3 Est. FP % Year 3 Estimated
PRR Payment
PY FP True-Up
(Year 1 True-Up
Amount)
Total Year 3 Bill
Customer A 0.35% $255,500 $22,500 $278,000
Customer B 0.90% $657,000 ($37,500) $619,500
Customer C 2.85% $2,080,500 $75,000 $2,155,500
Customer D 0.77% $562,100 $0 $562,100
Total 4.87% $3,555,100 $60,000 $3,615,100
BR Customers Contractual % $69,444,900 ($60,000) $69,384,900
Total PRR (Year 3) $73,000,000 $0 $73,000,000
Based on the true-up adjustment from Year 1, the adjusted PRR for Year 3 is
appropriately allocated to both FP and BR Customers.
The percentages in the table below are the maximum percentages for each FP customer
that will be applied to the MRR during the rate period October 1, 2011, through September 30,
2016. The maximum percentages were determined based on a critically dry year where there
are hydrologic conditions that result in low CVP generation and, consequently, low levels of BR.
An FP percentage cannot exceed the maximum except in instances where individual FP customer
percentages increase due to load growth. If these maximum percentages are used for
determining the FP customer charges for more than one year, Western will evaluate customer
percentages from the formula rate versus the maximum percentage and make adjustments as
appropriate.
FP Actual Maximum Percentages
Effective Rate Period FY 2012 through FY 2016
FP Customer Maximum FP Customer Percentage
Applied to the MRR
Sierra Conservation Center 1.58%
Calaveras Public Power Agency 3.81%
Trinity Public Utilities District 12.01%
Tuolumne Public Power Agency 3.16%
Total 20.56%
Page 6 of 9
Below is a sample calculation for an FP customer’s monthly charge for power.
Example: FP Monthly Customer Charge Calculation
Numerator
FP Customer’s Load - MWh 10,000
Denominator
Washoe Generation - MWh 2,500
CVP Generation - MWh 3,700,000
PU Load - MWh (1,200,000)
PU Purchase - MWh 47,000
Calculated Percentage
FP Customer’s Percentage 0.39%
Monthly Power Revenue Requirement (MRR) $3,333,333
FP Customer Monthly Charge = (FP % x MRR) $13,000
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by the Federal Energy Regulatory
Commission (FERC) or other regulatory bodies will be passed on to each relevant customer.
The FERC’s or other regulatory bodies’ accepted or approved charges or credits apply to the
service to which this rate methodology applies. When possible, Western will pass through
directly to the relevant customer FERC’s or other regulatory bodies’ accepted or approved
charges or credits in the same manner Western is charged or credited. If FERC’s or other
regulatory bodies’ accepted or approved charges or credits cannot be passed through directly to
the relevant customer in the same manner Western is charged or credited, the charges or credits
will be passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the Host Balancing Authority (HBA) applied to Western for
providing this service will be passed through directly to the relevant customer in the same
manner Western is charged or credited to the extent possible. If the HBA’s costs or credits
cannot be passed through to the relevant customer in the same manner Western is charged or
credited, the charges or credits will be passed through using Component 1 of the formula rate.
Page 7 of 9
BR Formula Rate:
The annual BR allocation is equal to the annual PRR less the annual FP customer
allocation. The formula rate for BR has three components.
Component 1:
BR Customer Allocation = (BR RR x BR%)
Where:
BR RR = BR Monthly Revenue Requirement (RR)
BR% = BR percentage for each customer as indicated in the BR contract after adjustments for
programs, such as HE, if applicable.
After the FP Customers’ share of the annual PRR has been determined, including a prior
period true-up from the FP formula rate, the remainder of the annual PRR is recovered from the
BR Customers. BR Customers’ allocation will also be adjusted by the amount of under- or
overpayment by FP Customers. The BR RR will be collected in two 6-month periods. For
October through March, 25 percent of the BR RR will be collected. For April through
September, 75 percent of the BR RR will be collected. The monthly BR RR is calculated by
dividing the BR 6-month RR by six. The revenues from the sale of surplus BR will be applied
to the annual BR RR for the following FY.
An example of a reallocation program is the HE program. BR Customers pay for
exchange energy, hourly or seasonally, by adjusting the BR percentage that is applied to the BR
RR. Adjustments to a customer’s BR percentage for seasonal exchanges will be reflected in the
customer’s BR contract.
An illustration of the adjustment to a customer’s BR percentage for HE energy is shown in
the example below.
Page 8 of 9
Example of BR Percentage Adjustments for HE Energy
BR Customer BR % from
Contract
Hourly BR
= 30 MWh
Customer’s BR >
Load
Customers
Receiving
HE
BR Delivered
(Adj’d for HE)
Revised
BR %
Customer A 20% 6 3 0 3 10.0%
Customer B 10% 3 0 1 4 13.3%
Customer C 70% 21 0 2 23 76.7%
Total 100% 30 3 3 30 100.0%
Component 2:
Any charges or credits associated with the creation, termination, or modification to any
tariff, contract, or rate schedule accepted or approved by FERC or other regulatory bodies will be
passed on to each relevant customer. The FERC’s or other regulatory bodies’ accepted or
approved charges or credits apply to the service to which this rate methodology applies. When
possible, Western will pass through directly to the relevant customer FERC’s or other regulatory
bodies’ accepted or approved charges or credits in the same manner Western is charged or
credited. If FERC’s or other regulatory bodies’ accepted or approved charges or credits cannot
be passed through directly to the relevant customer in the same manner Western is charged or
credited, the charges or credits will be passed through using Component 1 of the formula rate.
Component 3:
Any charges or credits from the HBA applied to Western for providing this service will
be passed through directly to the relevant customer in the same manner Western is charged or
credited to the extent possible. If the HBA’s costs or credits cannot be passed through to the
relevant customer in the same manner Western is charged or credited, the charges or credits will
be passed through using Component 1 of the formula rate.
Billing:
Billing for BR and FP power will occur monthly using the respective formula rate. Any
adjustment made at midyear is applicable to the entire FY and billed over the remainder the FY.
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Adjustment for Losses:
Losses will be accounted for under this rate schedule as stated in the service agreement.
Adjustment for Audit Adjustments:
Financial audit adjustments that apply to the formula rate under this rate schedule will be
evaluated on a case-by-case basis to determine the appropriate treatment for repayment and cash
flow management.