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Home My WebLink About10 Sierra Pacific Power Agreement Agenda Item # 10 Public Utility District CONSENT To: Board of Directors From: Stephen Hollabaugh Date: November 03, 2010 Subject: Consideration of an Amendment to the Fringe Agreement with Sierra Pacific Power 1. WHY THIS MATTER IS BEFORE THE BOARD This matter is before the Board for possible approval of the Sierra Pacific Power Company (SPPC) and Truckee Donner PUD First Amendment to Fringe Agreement. 2. HISTORY Sierra and CalPeco entered into an Asset Purchase Agreement dated April 22, 2009 pursuant to which Sierra agreed to sell, and CalPeco agreed to purchase, certain electric distribution and generation assets located in California. On October 16, 2009, Sierra and CalPeco filed with the California Public Utilities Commission ("CPUC") a Joint Application for Transfer of Control and Additional Requests Relating to the Proposed Transaction. On November 23, 2009, TDPUD filed with the CPUC a protest to the application, in which it made claims related to Sierra, CalPeco, and the transaction. On January 19, 2010, the three parties executed a term sheet outlining the principal terms and conditions to be memorialized in the final agreement, and in which the three parties agreed to negotiate in good faith with the intent to execute a binding settlement agreement. On February 17, 2010, the Board approved the final settlement agreement with Sierra and CalPeco. This settlement agreement described the "Fringe Area Agreement" and the "Reliability Support Agreement" that would follow the final settlement. On April 7, 2010, the Board approved the Fringe Agreement with Sierra Pacific Power Company. 3. NEW INFORMATION The Union Pacific Rail Road Company (UPRR) has requested electric distribution service to certain of its facilities located within Sierra's service territory. Sierra and TDPUD have agreed that based on the location of the load that the most cost effective way to provide service to UPRR would be to have TDPUD build the facilities necessary to serve them. Sierra and TDPUD desire to amend the Fringe Agreement so that TDPUD can provide the service requested by UPRR. Sierra and TDPUD have agreed to amend the Fringe Agreement to include "Schedule B" which the lists the UPRR parcels where the service is requested. The "First Amendment to Fringe Agreement" is attached and includes a map and a list of parcels in Schedule B. UPRR will pay for all needed facilities associated with these new services per our application for construction and new service. In order to serve UPRR, an "Out of Territory Service Agreement" or annexation of the subject properties into the District's service territory will be required. These steps will be part of a future action and are not part of this action item. 4. FISCAL IMPACT There is no financial impact for this item. 5. RECOMMENDATION Authorize the Board President to sign the "First Amendment to Fringe Agreement for Electric Service between Sierra Pacific Power Company and Truckee Donner Public Utility District. S ephen Hollabaugh Mic ael D. Holley Assistant General Manager General Manager FIRST AMENDMENT TO FRINGE AGREEMENT FOR ELECTRIC SERVICE BETWEEN SIERRA PACIFIC POWER COMPANY AND TRUCKEE-DONNER PUBLIC UTILITY DISTICT This First Amendment to Fringe Agreement for Electric Service Between Sierra Pacific Power Company And Truckee-Donner Public Utility District, dated April 7, 2010 ("Agreement"), made by and between Sierra Pacific Power Company("Sierra") and Truckee- Donner Public Utility District ("TDPUD") collectively referred to as the "Parties" is made October , 2010 as follows: RECITALS A. WHEREAS, Union Pacific Rail Road Company ("UPRR") has requested electric distribution service to certain of its facilities located within Sierra's service territory; and B. WHEREAS, the Parties agree that based on the location of the load that the most cost effective way to provide UPRR service would be to have TDPUD build the facilities necessary to serve them; and C. WHEREAS Sierra and TDPUD desire to amend the Agreement so that TDPUD can provide the service requested by UPRR. AGREEMENT NOW,THEREFORE, the Sierra and TDPUD agree as follows: 1. Section 2.1(a) of the Agreement is hereby amended to read in its entirety as follows: "During the term of this Agreement, each Serving Utility will provide electric distribution service to its Fringe Customers (as set forth on Schedule "A" and Schedule "B" attached hereto) upon the terms and conditions set forth in this Agreement. The provision of electric distribution service under this Agreement includes the provision of electrical energy." 2. A new Schedule ''B," in the form attached hereto, is hereby added to the Agreement. 3. Except as specifically amended by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. 4. This First Amendment may be executed in one or more counterparts (including by facsimile or similar electronic transmission), all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other patty. SIERRA APAF POWER MPANYd/b/a NYBy: Name: Title: Date: TRUCKEE-DONNER PUBLIC UTILITY DISTRICT By: Name: Title: Board President Date: 2 Schedule "B" attached hereto) upon the terms and conditions set forth in this Agreement. The provision of electric distribution service under this Agreement includes the provision of electrical energy." 2. A new Schedule "B," in the form attached hereto, is hereby added to the Agreement. 3. Except as specifically amended by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. 4. This First Amendment may be executed in one or more counterparts (including by facsimile or similar electronic transmission), all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party. SIERRA PACIFIC POWER COMPANY d/b/a NV ENERGY By: Name: Title: Date: TRUCKEE-DONNER PUBLIC UTILITY DISTRICT By: Name: Title: Board President Date: 2 Schedule"B" and Schedule"B"Mau Legend Requested Service Locations Existing Service Locations ; 1 Requested Service Parcels # W tti s Parcels Serviced by TC?PUQ ns, Existing Service Boundary Border �a Existing Servloe Locations21 r A ?ate,mi11A Rd- 3 \` `��, 4' � � r` 'rf£ .�• u�i`�%X*%k y�Jrc �w�,s' �t�Y i :r¢�+ rWr k �- \�� Requested Service Locatlarrs TRUCKEE DONNER PUBLIC UTILITY MFFRICI a `F kI TRUCKEE �a Y DO ER— Schedule'U Ma $ ro s sr l r '"'°E"°° Fringe Agreement r'' f �-=jai ..«.,... m+.+» La so Schedule"B"to Fringe Agreement for Electric Service Between Sierra Pacific Power Company And Truckee-Donner Public Utility District TDPUD Service to UPRR Pursuant to First Amendment Parcel Number Classification In-Service 080 010 028 000 Railroad Improved 080 010 029 000 Railroad Improved 080 070 008 000 Railroad Improved 069 190 Ol l 000 Railroad Improved 069 190 009 000 Railroad Improved 069 130 027 000 Railroad Improved 080 010 027 000 Railroad Improved 080 010 026 000 Railroad Improved 069 130 055 000 Railroad Improved 069 130 005 000 Railroad Improved