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Home My WebLink AboutRES 1982-25 - Board fi • ar RESOLUTION NO. 82 OF I'HE TRUCKEE DONNER PUBLIC UTILITY DISTRICT AUTHORIZING EXECUTION OF AGREEMENT WITH SIERRA PACIFIC POWER COMPANY RESPECTING RESALE ELECTRIC RATE INCREASE WHERE-AS., upon recommendation of Special Counsel Martin McDonough, the Board of Directors, on May 3, 1982, authorized the President to execute the Sierra Pacific Power Company letter of intent concerning settlement of the rate case presently before the Federal Energy Regulatory Commission, Docket No. ER82-105-000; and WHEREAS, District Counsel has reviewed the Settlement Agreement pre- pared by Sierra Pacific Power Company and found it to be in compliance with the letter of intent; NOW, THEREFOREf BE IT RESOLVED by the B(-,)ar-d of Directors of the Truckee Donner Public Utility District a.,--; follows: - That the President of the Truckee Donner Pub- tic Utility District is hereby authorized to execute the agreeme.-lit between the Dis- trict and Sierra Pacific Power ComL)any relative to the applica- tion of Sierra. Pacific Power Company to increase resale electric rates, Docket No. ER82-1-05-000. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at., a regular meeting thereof duly called and held in the District on the day of 1982, by the following roll call vote: AYES: NOES: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By- mes A. Maass, President ATTEST: Susan M. Craig.. Deputy Distric;t Clerk F-.'•T-*m.'r'T'.'."'m—T':."'r"+r"'" --•.7:'—z27 a. f�y I f UN I`rI:v STATES Of'' AME'R[C.A BEFORE THE FED RAL ENEIZGY REGULATORY COMMISSION SIERRA PACIFIC POWER C;C)MPANY } Docket No. El�82-105--000 4 1 SETTLEMIJNT AGREEMENT THIS AGREEMENT entered into this �� day of MAY , 1982, by and between SIIJRRA PACIFIC POWER COMPANY, a Nevada corporation, here- ina f ter referred to as "Sierra Pacific", and TRUCREE--DONNER PUBLIC UTILITY DISTRICT, hereinafter referred to as "Customer", WITNESSETH WHEREAS, Sierra Pacific is a public utility engaged in the production, distribution, sale and delivery of electric energy under the jurisdiction of the California Public Utilities Commission, the Nevada Public Service Commission, and the Federal Energy Regulatory Commission; and WHEREAS, Customer purchases electric power and energy from Si.er ra Pacific for resale pursuant to Sierra Pac'f i_c's rates on file with the Federal Energy Regulatory Commission, hereinafter referred to as 11FERC11; and WHEREAS, Sierra Pacific ,, pursuant to Section 205 (d) of the Federal. Power Act and Part 35 of the Commission' s regulations, .filed for an increase in rates and charges applicable to resale service under Schedule R, which Phase I rates became effective subject to refund on January 1.8, 1982; and WHEREAS, tentative agreement of settlement principles was reached by and between Sierra Pacific Power Company, Mt. Wheeler Power, Inc. , Pacific Gas and Electric Company, Truckee--Donner Public Utility District, the United States Army Ammunition Depot at Hawthorne, and the City of Fallon, Nevada, at an April 2, 1982, Reno Settlement Conference in regard to Docket. ER82-105-000. NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements herein contained, Sierra Pacific and Customer do agree as follows: 1. Overall revenues produced by the settlement rates shall be $7 ,842,000 based on billing determinants shown in VOlu.me. 2, Statement. BG, of Docket ER82-105 , and as revised by other settlement principles This represents a 32% increase above revenues of $5,941,000, the overall revenues generated by rates effective prior to January 1_8, 1982. Exhibit A, attached hereto, shows the overall 32% increase broken down by individual customers. +;,b"g.{.'.t+. .... _ . , 2. A J)'()k%Fer ZId 11.SLttlei1L C I. I t IS Ul IS 1(A I I 1W Ndded CA) tine R12saie Ka to Schedule which 1)rov id es f o r Lhe inclus�toii o fcos Ls exclusive Of fuel, result:ingfrom power purchaser Made by Sierra I)Cicific froiti CD other utilities subJect to 14E1\1C jurisdiction for the purpose of meeting the requirements of Sierra Pacific's resale customers. Changes in purchase power costs, excluding fuel, resulting from power I)Lircliases from other utilities subjecL to FERC jur_isdictoli, IS-11all be recovered in the energy charge rate. Filings shall [)e made with the FERC changing the energy charge concurrently with the purchased power cost change. Sufficient documentation shall be filed with the rate change to show the cost determination, projected system firm sales, and u *t rate determination. The unit energy rate adjustment per kWh shall ni -be determined by dividing the annual increased purchased power. cost (excluding fuel costs) by the total firm power sales for the 12-morith period 'immediately following the effective date of the authorized increase or decrease in purchased power. Such unit rate shall be adjusted for losses by multiplying the unit rate by a factor of 0.936. Any supplier refunds relating to purchased power costs, as defined above, which have been flowed through to resale custoi,,,(_D-rs under this purchased power adjustment shall be refunded to the resale customer* This purchased power adjustment is a settlement provision in Docket No. ER82-105 and shall terminate at Stich time a general rate revision "IS filed under Section 205(d) of the federal Power Act and Part 35 of the Commission's regulations after -May 1, 1-984. 3. The following rate design changes shall be made: (a) Two rate schedules shall be created. OLle, designated Schedule R-1, shall apply to full requirements service applicable to Fallon, Truckee-Donne-L--, Army Ammunition Depot and Pacific Gas and Electric Company* The other rate schedule shall be designated Schedule R-2 and shall be applicable to Mt. Wheeler for partial requirements service. (b) Schedule R-1 shall be for transmission service for voltages 34.5 kV and higher. An additional charge of 6% shall be added for distribution level delivery. (c) Schedule R-1 shall have a billing demand equal to each billing period maximum demand. (d) Schedule R-2 shall be for transmission service to Mt. Wheeler arid continue the billinp demand r-itcliet present:ly applical 10 to Schedule R. (e) Rate levels shall be determined in a manner similar to that: which is described in Volume 21, Statement BL of Docket ER82-105, shall reflect a reventUe requirement: of $7,842,000, and shall incorporate the rate design changes mentioned in this sett I.ement agreement. ��a Z41 _M_I w E, t 1.) shows t1fe develoj)irietiL of rates used in Exhibit A to derive the overall. $7 ,842,000 revenvie. r(_)_,quireme.nt_. E-f-%,'hibit C shows the -i t D this s revised rate schedules reflecting the settlemet provisio s of t1 agreement Settlement rates shall become effective on May 28, 1982. Refunds shall be calculated , including interest at 12. 5%, from January 18, 1982, the effective date of Phase I rates. Refunds shall be made to the Army Ammunition Depot in four payments as a credit to the bills rendered for June, July, August and September. All other customers shall receive a refund credit with the June bill. If refunds are greater than the bill, a net refund payment shall be made. Exhibit D shows the estimated total. refunds by customers. All months except April and May reflect actual billings.. Actual billings will be substituted in the calculation when May bills are rendered in early June. 5. Sierra Pacific shall not request that fa subsequent general rate increase applicable to Sierra Pacific's FERC resale customers become effective prior to May 1, 1984, UnICSS tIie purchased power adjustment procedure referenced in paragraph 2 above is not approved by the FERC In the event of disapproval of the purchase power adjustment procedure by the FERC, Sierra Pacific shall have the right to seek rate increases for Such Costs pursuant to Section 205 of the Federal Power Act. 6. Mt. Wheeler shall retc,lill 1'..ts right to independently litigate its billing demand ratchet and voltage discount issues of ter this settlement is accepted by the FERC, and Mt. Wheeler data requests of record have been responded to by Sierra Pacific. Any resulting decision on these issues will have no impact on other customers. Any refund resulting from litigation shall be determined back to January _18, 1982, with interest at 12.5%. 7. The procedural schedule shall be vacated pending acceptance or rejection of the negotiated settlement by the FERC. 8, A price squeeze issue stemming from this settlement agreement may be raised by any of the parties but only under the pr ovis-Ji-ons contained in Section 206 of the Federal. Power Act, or through appropriate judicial proceeding premised upon anti-trust grounds. 9. By acceptance of this settlement, the parties shall not be deemed to have approved, accepted, agreed to or consented to any rate- making principle, or any method of cost of service or other determination, or any allocation underlying or supposed to underlie any of the rates provided for herein, 3 AeCMA tA9001AIL 4090��. =-L Wk U 4i"!�L,4WA,:.0 IN WITNI SS WHEI 1 E ffl-"4 ) Lhe parties hereto have (2x(-.'-c-%t1t--ed this agreement " j by their duly c,luthorized officials on the day and year first above wr i t ten. SIERRA PACIFIC POWER COMPANY CUSTOMEI� TRUCKEE-DONNER PUBLIC UT11,117f DISTRICT B B y y -Fi t e Title 4. '14.44