Regulation
P.O. Box 800 2244 Walnut Grove Ave. Rosemead, CA 91770
Director FERC Rates & Regulation
July 24, 2012
Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC 20426
Dear Ms. Bose:
Pursuant to Section 35.13 of the Federal Energy Regulatory Commission’s
(“Commission” or “FERC”) regulations under the Federal Power Act (18 C.F.R. §
35.13), Southern California Edison Company (“SCE”) tenders for filing an amended
Interconnection Facilities Agreement (“Amended IFA”) and an amended Service
Agreement for Wholesale Distribution Service (“Amended Service Agreement”) between
SCE and Sierra Power Corporation (“Sierra Power”) (collectively “Parties”), Service
Agreement Nos. 68 and 69, respectively, under SCE’s Wholesale Distribution Access
Tariff (“WDAT”), FERC Electric Tariff, Volume No. 5.
The documents submitted with this filing consist of this letter of transmittal and
all attachments hereto, and the Amended IFA and the Amended Service Agreement in
both clean and redline formats.
Background
On July 31, 2002, SCE filed an unexecuted Interconnection Facilities Agreement
(“IFA”) and WDAT Service Agreement (together, the “Agreements”) with the
Commission. The Service Agreement provides for Distribution Service1 for Sierra
Power’s Terra Bella generating facility, located in Terra Bella, California, for the
delivery of energy to the California Independent System Operator Corporation’s 1 All capitalized terms used herein, and not otherwise defined, shall have the meanings ascribed to such terms in the Amended IFA.
Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission Page 2 July 24, 2012 (“CAISO”) grid at SCE’s Vestal Substation (“Project”). The IFA provides the terms and
conditions for SCE to provide interconnection; for SCE to own, operate and maintain the
Interconnection Facilities; for SCE to engineer, design, construct, install, own, operate
and maintain any Capital Additions thereto; and for Sierra Power to pay for such service,
Interconnection Facilities and Capital Additions.
The Agreements were accepted for filing by the Commission by a letter order
dated September 27, 2002, rendered in Docket No. ER02-2391-000. SCE began
providing interconnection and Distribution Service to the Project effective July 26, 2002.
The Agreements are scheduled to terminate on July 26, 2012. On July 14, 2011,
Sierra Power requested to extend the life of the Agreements by an additional five years.
Amended Agreements
The Amended IFA reflects: (i) updated recitals to specify the reasons for
amending the IFA; (ii) updates to the definition of Applicable Reliability Council,
Applicable Reliability Standards, and North American Electric Reliability Corporation;
(iii) addition of terms including Balancing Authority, Balancing Authority Area, Point of
Change of Ownership, and Point of Interconnection; and (iii) updated one line diagram to
reflect the Point of Change of Ownership and Point of Interconnection. The Amended
Service Agreement reflects: (i) the current WDAT Service Agreement now in effect as
filed at FERC; (ii) the amended termination date; and (iii) updated contact information.
A copy of the letter agreement memorializing the Parties agreement to the
Amended Agreements is provided as Attachment A to this filing letter.
Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission Page 3 July 24, 2012 eTariff Filing Changes
As a result of converting from the paper, sheet-based document to a whole
document format in the eTariff submission process, SCE made certain formatting
changes to the Amended IFA and Amended Service Agreement as described below.
Item Description of Change
1 Order No. 614 headers and footers have been removed from all pages of the
Amended Agreements.
2 The requirements on page 7 of the Implementation Guide have been added to the
title pages.
3 Page numbers in the Table of Contents have been updated in the Amended IFA.
Waiver
SCE respectfully requests, pursuant to Section 35.11 (18 C.F.R. § 35.11) of the
Commission’s regulations, waiver of the 60-day prior notice requirements specified in
Section 35.3 (18 C.F.R. § 35.3), and requests the Commission to assign an effective date
of July 26, 2012, to the Amended IFA and Amended Service Agreement. Such waiver
would be consistent with the Commission’s policy set forth in Central Hudson Gas &
Electric Corp. et al., 60 FERC ¶ 61,106 (1992), reh’g denied, 61 FERC ¶ 61,089 (1992),
that waiver of the 60-day prior notice requirement will generally be granted when the
filing has no rate impact. In order to ensure continuity of service, the Amended IFA and
Amended Service Agreement should be made effective on July 26, 2012, which is the
day that the IFA is scheduled to terminate. The granting of this waiver will not have any
impact on SCE’s other rate schedules.
Other Filing Requirements
No expenses or costs included in the rates tendered herein have been alleged or
judged in any administrative or judicial proceeding to be illegal, duplicative, or
FEDERAL ENERGY REGULATORY COMMISSION
Mailing List
NAME ADDRESS Public Utilities Commission Frank Lindh, General Counsel Harvey Y. Morris, General Counsel State of California Legal Division [email protected] [email protected]
State Building 505 Van Ness Avenue San Francisco, California 94102
Sierra Power Corporation Attn: Kent Duysen [email protected]
9000 Road 234 Terra Bella, California 93270
Title Page
Southern California Edison Company FERC FPA Electric Tariff Tariff Title: Wholesale Distribution Access Tariff Tariff Record Title: First Revised Service Agreement No. 68
INTERCONNECTION FACILITIES AGREEMENT
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
SIERRA POWER CORPORATION
Contract Effective Date: 07/26/2002 Tariff Record Proposed Effective Date: 7/26/2012 905.68.5 Version Number: 0.0.0 WDT118 Option Code: A
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INTERCONNECTION FACILITIES AGREEMENT BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY
AND SIERRA POWER CORPORATION
TABLE OF CONTENTS
1. Parties .............................................................................................................................................2 2. Recitals ...........................................................................................................................................2 3. Agreement ......................................................................................................................................3 4. Definitions .....................................................................................................................................3 5. Effective Date and Term ................................................................................................................5 6. Agreement Pursuant to the WDAT ................................................................................................5 7. Creditworthiness ............................................................................................................................5 9. Capital Additions To Interconnection Facilities ............................................................................6 10. Removal Of Interconnection Facilities ......................................................................................7 11. Charges ......................................................................................................................................7 12. Billing and Payment ...................................................................................................................7 13. Billing and Payment Notification ..............................................................................................8 14. Disputes .....................................................................................................................................9 15. Audits .........................................................................................................................................9 16. Operating Representatives .........................................................................................................9 17. Regulatory Authority .................................................................................................................9 18. No Dedication Of Facilities .....................................................................................................10 19. No Third Party Rights ..............................................................................................................10 20. Relationship Of Parties ............................................................................................................10 21. Waivers ....................................................................................................................................10 22. Governing Law ........................................................................................................................10 23. Notices .....................................................................................................................................10 24. Severability ..............................................................................................................................10 25. Entire Agreement .....................................................................................................................11 26. Ambiguities ..............................................................................................................................11 27. Signature Clause ......................................................................................................................12 Exhibit B ..............................................................................................................................................15 Exhibit C ..............................................................................................................................................16
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INTERCONNECTION FACILITIES AGREEMENT BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY
AND SIERRA POWER CORPORATION
1. Parties:
The Parties to this Southern California Edison Company – Sierra Power Corporation Interconnection Facilities Agreement are Southern California Edison Company (“SCE”), a California corporation, and Sierra Power Corporation (“Sierra Power”), a California corporation, hereinafter sometimes referred to individually as “Party” and collectively as “Parties.”
2. Recitals:
This Agreement is made with reference to the following facts, among others: 2.1. SCE is a California public utility engaged in the business of generating and transmitting
electric energy in the States of Arizona, California, Nevada, and New Mexico. SCE is further engaged in the business of distributing such energy in the State of California.
2.2. Sierra Power is a California Corporation that owns the Terra Bella generating facility, which generates electricity from biomass.
2.3. The Sierra Power Terra Bella generating facility is a qualifying facility for the purposes of the Public Utility Regulatory Policies Act of 1978, as amended, and is self certified as a Qualifying Facility.
2.4. Sierra Power and SCE executed a CPUC-jurisdictional Power Purchase Contract on December 18, 1984. The Power Purchase Contract as amended obligated SCE to purchase up to 7.5 MW of firm capacity, 1.875 MW of as-available capacity and energy generated from a nominal 9.375 MVA nameplate generator for the 30-year term of the Power Purchase Contract. In 1994, the Parties entered into an agreement to terminate the Power Purchase Contract.
2.5. SCE's and Sierra Power's electrical systems are interconnected via the 12 kV Zion circuit out of SCE's Terra Bella Substation. Interconnection facilities were constructed by SCE to interconnect Sierra Power's Terra Bella generating facility with SCE's Distribution System. Such interconnection facilities are owned, operated and maintained by SCE.
2.6. Sierra Power paid the annual costs of SCE's ownership, operation, and maintenance of those facilities constructed by SCE to accommodate its generating facility under the Power Purchase Contract and associated interconnection facilities agreement. The charge for such facilities was based on SCE's rate most recently adopted by the CPUC for application to retail customers for SCE-financed added facilities. This added facilities rate is based on an average, levelized cost recovery methodology adopted by the CPUC.
2.7. Pursuant to SCE’s WDAT, Sierra Power submitted an application to SCE for 9.0 MW of wholesale Distribution Service from Sierra Power's Terra Bella generating facility to the ISO Grid at SCE’s Vestal Substation for a period of one (1) year.
2.8. Sierra Power and SCE executed an interconnection facilities agreement and a WDAT service agreement on March 1, 2001. The interconnection facilities agreement specified the terms for SCE to own, operate and maintain the Interconnection Facilities and for Sierra Power to pay SCE for such Interconnection Facilities. The service agreement specified the terms for SCE to provide and for Sierra Power to receive Distribution Service from the Point of Interconnection to the ISO Grid. On March 6, 2002, the interconnection facilities agreement and service agreement terminated.
2.9. Pursuant to SCE’s WDAT, Sierra Power submitted a new application to SCE for 9.0 MW of wholesale Distribution Service from Sierra Power's Terra Bella generating facility to the ISO
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Grid at SCE’s Vestal Substation for a period of ten (10) years. 2.10. The Parties entered into this Agreement on July 26, 2002 to specify the terms for SCE to own,
operate and maintain the Interconnection Facilities and engineer, design, construct, install, own, operate and maintain any Capital Additions thereto required for SCE to provide Distribution Service to Sierra Power, and payment by Sierra Power to SCE for said Interconnection Facilities and Capital Additions.
2.11. This Agreement implements wholesale Distribution Service under SCE's WDAT in connection and concurrent with that certain Service Agreement for Wholesale Distribution Service between the Parties.
2.12. On March 14, 2003 the Pad Mounted Auto Re-closure equipment (“A/R Equipment”) failed. SCE replaced the damaged equipment and placed it into service on June 1, 2003.
2.13. In November, 2006 the A/R Equipment failed again. SCE replaced the damaged equipment on November 14, 2006.
2.14. On January 27, 2009, the Parties entered into a letter agreement to 1) amend this Agreement to show the actual recorded costs for the facilities described in Section 2.12 and 2.13; 2) provide for SCE financing for such facilities; and 3) allow for the inclusion of NERC reliability requirements for connected generators.
2.15. On August 31, 2009, the Parties entered into a letter agreement to 1) amend the definition of Capital Additions Charge to reinstate use of Customer-Financed Monthly Rate, 2) amend this Agreement to restore the Customer-Financed Monthly Rate for future Capital Additions, and 3) make certain other minor modifications to clarify the terms for future Capital Additions.
2.16. Following the execution of this Agreement, this Agreement was amended to incorporate the appropriate NERC compliance language to ensure that the Parties understand their respective obligations under the NERC compliance standards currently in effect. Such language is incorporated into this Agreement.
3. Agreement:
In consideration of the premises and the mutual covenants and agreements contained herein, the Parties agree as follows:
4. Definitions:
All terms with initial capitalization not otherwise defined herein shall have the meanings assigned to them in SCE’s WDAT as that Tariff may be amended from time to time. The following terms, when used herein with initial capitalization, whether in the singular or the plural, shall have the meanings specified: 4.1. Accounting Practice: Generally accepted accounting principles and practices applicable to
electric utility operations. 4.2. Agreement: This Interconnection Facilities Agreement between Southern California Edison
Company and Sierra Power Corporation. 4.3. Applicable Laws and Regulations: All duly promulgated applicable federal, state and local
laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority.
4.4. Applicable Reliability Council: The Western Electricity Coordinating Council (“WECC”), or its successor organization.
4.5. Applicable Reliability Standards: The requirements and guidelines of NERC, the Applicable Reliability Council, and the Balancing Authority Area of SCE’s Distribution System to which
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the Sierra Power Facilities are directly interconnected, including requirements adopted pursuant to Section 215 of the Federal Power Act.
4.6. Balancing Authority: The responsible entity that integrates resource plans ahead of time, maintains load-interchange-generation balance within a Balancing Authority Area, and supports interconnection frequency in real time.
4.7. Balancing Authority Area: The collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority. The Balancing Authority maintains load-resource balance within this area.
4.8. Capital Additions: Any Units of Property which are added to the Interconnection Facilities; the enlargement, modification or betterment of any Units of Property constituting a part of the Interconnection Facilities; and the replacement of any Units of Property constituting a part of the Interconnection Facilities, irrespective of whether such replacement constitutes an enlargement, modification or betterment of that which it replaces, the costs of which additions, betterments, modifications, enlargements, and replacements in accordance with Accounting Practice would be capitalized and have not previously been included in the Interconnection Facilities Cost. The Capital Additions are specified in Exhibit C.
4.9. Capital Additions Cost: All costs, excluding ITCC and One-Time Costs, determined by SCE to be associated with the design, engineering, procurement, construction and installation of Capital Additions. The Capital Additions Cost is provided in Exhibit C.
4.10. CPUC: The California Public Utilities Commission, or its regulatory successor. 4.11. Capital Additions Charge: The monthly charge to Sierra Power to recover the revenue
requirements for Capital Additions, calculated as the product of the Customer-Financed Monthly Rate and the Capital Additions Cost. The Capital Additions Charge is provided in Exhibit C.
4.12. Customer-Financed Monthly Rate: The rate most recently adopted by the CPUC for application to SCE’s retail electric customers for customer financed added facilities, which does not compensate SCE for replacement of added facilities. The currently-effective Customer-Financed Monthly Rate is stated in Exhibit C.
4.13. FERC: Federal Energy Regulatory Commission, or its regulatory successor. 4.14. Interconnection Facilities: Facilities, as specified in Exhibit A and as shown in Exhibit B,
constructed by SCE to interconnect the Sierra Power Facilities to the Distribution System. 4.15. Governmental Authority: Any federal, state, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include Sierra Power, SCE, or any affiliate thereof.
4.16. Interconnection Facilities Charge: The monthly charge to Sierra Power to recover the revenue requirements for Interconnection Facilities, calculated as the product of the SCE-Financed Monthly Rate and the Interconnection Facilities Cost. The Interconnection Facilities Charge is provided in Exhibit A.
4.17. Interconnection Facilities Cost: All costs determined by SCE to be associated with the design, engineering, procurement, construction and installation of the Interconnection Facilities, as may be adjusted pursuant to Section 12.1.4.3. The Interconnection Facilities Cost is provided in Exhibit A.
4.18. ITCC: The Income Tax Component of Contribution specified in the Preliminary Statement, Part M of SCE’s tariff on file with the CPUC, as applicable to the Capital Additions Cost.
4.19. NERC: North American Electric Reliability Corporation, or its successor organization. 4.20. One-Time Costs: All costs determined by SCE to be associated with the installation of Capital
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Additions which are not capitalized in accordance with Accounting Practice. 4.21. Point of Change of Ownership: The point, as set forth in Exhibit B to this Agreement, where
SCE’s Interconnection Facilities connect to the Sierra Power Facilities. 4.22. Point of Interconnection: The point, as set forth in Exhibit B to this Agreement, where the
Interconnection Facilities connect to SCE’s Distribution System. 4.23. SCE-Financed Monthly Rate: The rate most recently adopted by the CPUC for application to
SCE’s retail electric customers for added facilities, which does not compensate SCE for replacement of added facilities. The currently-effective SCE-Financed Monthly Rate is stated in Exhibit A.
4.24. Service Agreement: The Service Agreement For Wholesale Distribution Service between the Parties executed concurrently herewith.
4.25. Sierra Power Facilities: All equipment and facilities comprising the Sierra Power Terra Bella generating facility, as provided by Sierra Power in its WDAT application, including but not limited to one 9,375 kVA synchronous generator, one 10,000 kVA autotransformer, meters and metering equipment and appurtenant equipment.
4.26. Units of Property: As described in FERC's “List of Units of Property for Use in Connection with Uniform System of Accounts Prescribed for Public Utilities and Licensees” in effect as of the date of this Agreement, and as such list may be amended from time to time.
4.27. Vestal Substation: SCE’s 220/66 kV substation located at Famosa-Porterville Hwy., in Richgrove, California.
4.28. WDAT: SCE's Wholesale Distribution Access Tariff. 4.29. WECC: The Western Electricity Coordinating Council or its successor.
5. Effective Date and Term:
5.1. This Agreement shall be effective upon the later of (i) date of execution, or (ii) upon acceptance for filing by FERC without suspension; provided however, that if upon such filing the FERC enters into a hearing to determine whether this Agreement is just and reasonable, this Agreement shall not become effective until the date when an order no longer subject to judicial review has been issued by FERC determining this Agreement to be just and reasonable without changes or new conditions unacceptable to either Party.
5.2. This Agreement shall terminate on the earlier of (i) the termination date of the Service Agreement, or (ii) the date specified by Sierra Power upon 180 days advance written notice to SCE.
5.3. Any obligations of one Party to the other, including payment obligations, as a result of this Agreement, which accrued prior to or as a result of termination of this Agreement, shall survive termination.
5.4. If Sierra Power has given notice of termination and a filing with FERC is required to terminate this Agreement, Sierra Power shall support such filing before the FERC if requested by SCE.
6. Agreement Pursuant to the WDAT:
This Agreement provides terms regarding Interconnection Facilities associated with wholesale Distribution Service pursuant to the WDAT. Accordingly, the Interconnection Facilities associated with the wholesale Distribution Service provided to Sierra Power, and Sierra Power's use of and payment for said Interconnection Facilities, are subject to the provisions of the WDAT and the Service Agreement, as those provisions may from time to time be modified.
7. Creditworthiness:
SCE may require Sierra Power to provide and maintain in effect during the term of this Agreement,
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an unconditional and irrevocable letter of credit in a form reasonably acceptable to SCE as security to meet its responsibilities and obligations under the WDAT, or an alternative form of security proposed by Sierra Power and acceptable to SCE, and consistent with commercial practices established by the Uniform Commercial Code, that protects SCE against the risk of non-payment.
8. Interconnection Facilities:
8.1. The maximum capacity of the Interconnection Facilities made available by SCE to Sierra Power for the purpose of interconnecting to SCE's electrical system and delivering energy and other services to the ISO under this Agreement shall be 9.0 MW. Sierra Power acknowledges that if Sierra Power wishes to increase the amount of interconnection capacity provided pursuant to this Agreement, Sierra Power shall be required to submit a new Application for Interconnection in accordance with the terms and conditions of the WDAT.
8.2. The costs associated with any mitigation measures required to third party transmission systems resulting from the interconnection of the Sierra Power Facilities to SCE’s electrical system are not reflected in this Agreement. Such costs, if any, shall be the sole responsibility of Sierra Power.
8.3. Each Party shall comply with Applicable Reliability Standards and the Applicable Reliability Council requirements. Each Party shall provide to the other Party all information that may reasonably be required by the other Party to comply with Applicable Laws and Regulations and Applicable Reliability Standards.
8.4. Neither Party’s facilities shall cause excessive voltage flicker or introduce excessive distortion to the sinusoidal voltage or current waves as defined by ANSI Standard C84.1-1989, in accordance with IEEE Standard 519, or any applicable superseding electric industry standard or any alternative Applicable Reliability Standard or Applicable Reliability Council standard. In the event of a conflict among ANSI Standard C84.1-1989, or any applicable superseding electric industry standard, or any alternative Applicable Reliability Standard or Applicable Reliability Council standard, the alternative Applicable Reliability Standard or Applicable Reliability Council standard shall control.
8.5. Sierra Power shall comply with all Applicable Reliability Standards for the Sierra Power Facilities. SCE will not assume any responsibility for complying with mandatory reliability standards for such facilities and offers no opinion whether Sierra Power must register with NERC. Such determination is the responsibility of Sierra Power. If required to register with NERC, Sierra Power shall be responsible for complying with all Applicable Reliability Standards for the Sierra Power Facilities up to the Point of Change of Ownership as described in Exhibit B of this IFA.
8.6. Sierra Power shall cause the Sierra Power Facilities to participate in ISO congestion management. SCE is aware that the Sierra Power Facilities will compete with other market generation for available transmission capacity in accordance with ISO protocols.
9. Capital Additions To Interconnection Facilities:
9.1. SCE shall engineer, design, construct, install, own, operate and maintain all Capital Additions. 9.2. Except as otherwise provided in Section 9.3, whenever Capital Additions to the
Interconnection Facilities are required by SCE pursuant to Good Utility Practice (which may include compliance with system or regulatory requirements), Sierra Power shall bear the cost responsibility for such Capital Additions. SCE shall bill Sierra Power for the estimated Capital Additions Cost, including ITCC, and any associated One-Time Costs in accordance with Section 12. SCE shall not be required to commence any work on any Capital Additions until such bill is paid by Sierra Power in accordance with Section 12.
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9.3. In the event that Capital Additions are required to the Interconnection Facilities in order to benefit SCE, or because of damage caused by negligence or willful misconduct of SCE, Sierra Power shall not bear cost responsibility for such Capital Additions; no adjustment will be made to the Interconnection Facilities Cost and no One-Time Costs will be charged to Sierra Power for such Capital Additions.
10. Removal Of Interconnection Facilities:
Upon termination of this Agreement for any reason whatsoever, SCE will remove the Interconnection Facilities from service to Sierra Power.
11. Charges:
11.1. Sierra Power shall pay to SCE, in accordance with Section 12, the following charges with respect to the Interconnection Facilities, Capital Additions and this Agreement: (a) Interconnection Facilities Charges; (b) One-Time Costs; (c) Capital Additions Cost pursuant to Section 9; (d) ITCC; (e) Capital Additions Charge; and (f) any reimbursable FERC fees pursuant to Section 17.3.
11.2. The Interconnection Facilities Cost, One-Time Costs, ITCC and Capital Additions Cost shall be compiled in accordance with established Accounting Practice.
11.3. If, during the term of this Agreement, the Interconnection Facilities and Capital Additions are utilized to provide service to another customer, the charges due hereunder shall be adjusted to appropriately reflect such service based on SCE's costs allocation principles in effect at such time and shall be subject to FERC approval.
12. Billing and Payment:
12.1. Billing Procedure. 12.1.1. Except as otherwise specifically provided herein, commencing on or following the
effective date of this Agreement, SCE will render bills to Sierra Power for charges under this Agreement, and Sierra Power shall pay such bills, in accordance with the Billing and Payment provisions of the WDAT.
12.1.2. Commencing on or following the effective date of this Agreement, SCE will render bills to Sierra Power for the Interconnection Facilities Charge.
12.1.3. The Interconnection Facilities Charge for the first and last month of service hereunder shall be pro-rated based on the number of days in which service was provided during said months.
12.1.4. Prior to commencing any work on any Capital Additions in accordance with Section 9, SCE will bill Sierra Power for the Capital Additions Cost, associated ITCC, and associated One-Time Costs. Such billing shall initially be based on SCE's cost estimates and shall be subject to later adjustment pursuant to Sections 12.1.4.1 and 12.1.4.2. 12.1.4.1. If the amount paid for the estimated Capital Additions Cost, associated
ITCC and associated One-Time Costs is less than the actual recorded Capital Additions Cost, associated ITCC and associated One-Time Costs, SCE will bill Sierra Power for the difference between the amount previously paid by Sierra Power and the actual recorded costs, without interest, on the next regular billing.
12.1.4.2. If the amount paid for the estimated Capital Additions Cost, associated ITCC and associated One-Time Costs, is greater than the actual
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recorded Capital Additions Cost, associated ITCC and associated One-Time Costs, SCE will refund to Sierra Power the difference between the amount previously paid by Sierra Power and actual recorded costs, without interest, on the next regular billing.
12.1.4.3. If certain Interconnection Facilities are removed to accommodate such Capital Additions and such removal results in a change in the Interconnection Facilities Cost, the Interconnection Facilities Charge shall be adjusted as of the in-service date of such Capital Additions to reflect the change in the Interconnection Facilities investment.
12.1.4.4. If the amounts paid for the Capital Additions Charge are less than the amounts due for the Capital Additions Charge as determined from the actual recorded Capital Additions cost, SCE will bill Sierra Power for the difference between the amounts previously paid by Sierra Power and the amounts which would have been paid based on actual recorded costs, without interest, on the next regular billing.
12.1.4.5. If the amounts paid for the Capital Additions Charge are greater than the amounts due for the Capital Additions Charge as determined from the actual recorded Capital Additions Cost, SCE will credit Sierra Power the difference between the amounts previously paid by Sierra Power and the amounts which would have been paid based on actual recorded costs, without interest, on the next regular billing.
12.1.5. Commencing on or following the in-service date of the Capital Additions, SCE will render bills to Sierra Power for the Capital Additions Charge.
12.1.6. SCE will render bills to Sierra Power for any reimbursable FERC fees in accordance with Section 17.3. Such charges shall be for any reimbursable FERC fees or costs incurred since the preceding billing.
12.2. Interest on Unpaid Balances.
Interest on any unpaid amounts shall be calculated in accordance with the methodology specified in the Interest on Unpaid Balances provision of the WDAT.
12.3. Default and Billing Dispute.
Any default or billing dispute shall be handled in accordance with the methodology specified in the Customer Default provision of the WDAT.
13. Billing and Payment Notification:
13.1. All payments to be made by Sierra Power to SCE shall be sent to: Southern California Edison Company Accounts Receivable Box 600 Rosemead, California 91770-0600
SCE may, at any time, by written notice to Sierra Power pursuant to Section 6 of the Service Agreement for Wholesale Distribution Service, change the address to which payments will be sent.
13.2. All billings to be presented by SCE to Sierra Power shall be sent to:
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Sierra Power Corporation P.O. Box 10060 9000 Road 234 Terra Bella, California 93270-0060 Fax: (559) 535-4515
Sierra Power may, at any time, by written notice to SCE pursuant to Section 6 of the Service Agreement for Wholesale Distribution Service, change the address to which billings will be sent.
14. Disputes:
With the exception of any billing dispute as provided pursuant to Section 12.3 herein, or as otherwise limited by law, the Dispute Resolution Procedures set forth in the WDAT shall apply to all disputes between Sierra Power and SCE which arise under this Agreement; provided, however, that the Dispute Resolution Procedures set forth in the WDAT shall not apply as to disputes regarding whether rates and charges set forth in this Agreement are just and reasonable under the Federal Power Act.
15. Audits:
SCE will maintain records and accounts of all costs incurred in sufficient detail to allow verification of all costs incurred, including, but not limited to, labor and associated labor costs, material and supplies, outside services, and administrative and general expenses. For two years following the effective date of this Agreement, or with respect to any Capital Additions made pursuant to Section 9, for two years following the in-service date of such Capital Additions, Sierra Power will have the right, upon reasonable notice, at a reasonable time and place, and at its own expense, to audit SCE’s records as necessary and as appropriate in order to verify costs incurred by SCE.
16. Operating Representatives:
The responsibilities assigned to the Operating Representatives appointed pursuant to Section 13.4 of the Specifications for Wholesale Distribution Service attached to and incorporated within the Service Agreement shall extend to the activities required under this Agreement.
17. Regulatory Authority:
17.1. No later than thirty (30) days following the execution of this Agreement, SCE shall tender this Agreement for filing with FERC with a request that it be made effective upon acceptance without suspension, and Sierra Power shall support SCE in obtaining all necessary authorizations and approvals for this Agreement.
17.2. Nothing contained herein shall be construed as affecting in any way: (i) the right of SCE to unilaterally make application to the FERC for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Rules and Regulations promulgated by FERC thereunder; (ii) the right of Sierra Power to oppose such changes under Section 205 of the Federal Power Act; (iii) the right of Sierra Power to file a complaint requesting a change in rates, charges, classification, or service, or any rule, regulation or contract relating thereto, or rate methodology or design relating to services provided hereunder, under Section 206 of the Federal Power Act and pursuant to the rules and regulations promulgated by the FERC
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thereunder; or (iv) the right of SCE to oppose such complaint by Sierra Power under Section 206 of the Federal Power Act. Any change shall become effective pursuant to Section 205 of the Federal Power Act.
17.3. Sierra Power shall reimburse SCE for all fees and charges imposed on SCE by the FERC attributable to the service provided under this Agreement, or any amendments thereto.
18. No Dedication Of Facilities:
Any undertaking by one Party to the other Party under this Agreement shall not constitute the dedication of the electrical system or any portion thereof of the undertaking Party to the public or to the other Party, and it is understood and agreed that any such undertaking by a Party shall cease upon the termination of its obligations hereunder.
19. No Third Party Rights:
Unless otherwise specifically provided in this Agreement, the Parties do not intend to create rights in or grant remedies to any third party as a beneficiary of this Agreement or of any duty, covenant, obligation, or undertaking established hereunder.
20. Relationship Of Parties:
The covenants, obligations, and liabilities of the Parties are intended to be several and not joint or collective, and nothing contained in this Agreement shall ever be construed to create an association, joint venture, trust, or partnership, or to impose a trust or partnership covenant, obligation, or liability on or with regard to either Party. Each Party shall be individually responsible for its own covenants, obligations, and liabilities as provided in this Agreement. Neither Party shall be under the control of or shall be deemed to control the other Party. Neither Party shall be the agent of or have a right or power to bind the other Party without such other Party's express written consent.
21. Waivers:
Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matter arising in connection with this Agreement, shall not be deemed a waiver with respect to any other or subsequent default or other matter arising in connection therewith. Any delay, short of any statutory period of limitation, in asserting or enforcing any right, shall not be deemed a waiver of such right.
22. Governing Law:
Except as otherwise provided by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the state of California.
23. Notices:
Any notice, demand, or request provided in this Agreement, or served, given, or made in connection with it, shall be made in accordance with Section 6 of the Service Agreement.
24. Severability:
In the event that any term, provision, covenant, or condition of this Agreement or the application of
Page 11
any such term, covenant, or condition shall be held invalid as to any person, entity, or circumstance by any court, arbitration, or regulatory authority having jurisdiction, the invalidity of such term, covenant or condition shall not affect the validity of any other term, provision, condition or covenant and such term, provision, covenant or condition shall remain in force and effect as applied to this Agreement to the maximum extent permitted by law. The Parties hereto further agree to negotiate in good faith to establish new and valid terms, conditions and covenants to replace any found invalid so as to place each Party as nearly as possible in the position contemplated by this Agreement.
25. Entire Agreement:
This Agreement constitutes the complete and final expression of the agreement between the Parties and is intended as a complete and exclusive statement of the terms of their agreement which supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and other agreements which may have been made in connection with the subject matter of this Agreement.
26. Ambiguities:
Ambiguities or uncertainties in the wording of this Agreement shall not be construed for or against any Party, but will be construed in the manner that most accurately reflects the Parties’ intent as of the date they executed this Agreement.
Page 12
27. Signature Clause:
The signatories hereto represent that they are authorized to enter into this Agreement on behalf of the Party for whom they sign. This Agreement is hereby executed as of the 26th day of ___July____, 2002.
SOUTHERN CALIFORNIA EDISON COMPANY By: ____/s/ A. Larry Grant_____ Name: A. Larry Grant Title: Vice President SIERRA POWER CORPORATION By: ___/s/ Kent Duysen________ Name: Kent Duysen Title: President
Page 13
Exhibit A Interconnection Facilities
Description and Cost
1. SCE-Financed Interconnection Facilities Actual Costs (“Original Facilities”):
Description Amount 1. 1,700 ft. 12 kV line $37,312.24 2. 12 kV recloser equipment and padmounted relay protection package $125,092.40 3. Metering Equipment $4,425.22 4. 1500 kVA, 12000-277/480 V pad-mounted transformer and 75 feet of 3-1/C 1/0 primary cable $22,337.14 Original Facilities Total: $189.167.00 2. SCE-Financed Interconnection Facilities Actual Costs 2003 Replacement (“Additional Facilities 1”): 1. Installation of one Pad Mount Auto Re-closure, one
Controller and miscellaneous materials and supplies $82,612.71 2. Removed one Load Interrupter, type C, 3-Phase, 14.4 kV ($15,175.56)** Additional Facilities 1 Total: $67,437.15 **This amount excludes the Sierra Power Corporation Payment of $6,452.26 on April 22, 2004 for removal cost. 3. SCE-Financed Interconnection Facilities Actual Costs 2006 Replacement “Additional Facilities 2”): 1. Installation of one Pad Mounted Auto Re-closure $51,778.64 2. Original installed cost of Pad Mounted Auto Re-Closure ($36,149.38) installed June 1, 2003. Additional Facilities 2 Total: $15,629.26
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Exhibit A
Interconnection Facilities Description and Cost
(Cont.) 4. Total Interconnection Facilities Cost In-Service Date:
Facilities Interconnection Facilities Cost
Total Interconnection Facilities Cost
07/26/02 Original Facilities
$189,167.00 $189,167.00
6/1/03 Additional Facilities 1
$67,437,15 $256,604.15
11/14/06 Additional Facilities 2
$15,629.26 $272,233.41
5. Interconnection Facilities Charge Effective Date SCE-Financed Monthly
Rate Interconnection Facilities Cost
Interconnection Facilities Charge
07/26/02 to 05/31/03 1.31% $189,167.00 $2,478.09 06/1/03 to 07/17/04 1.31% $256,604.15 $3,361.51 07/18/04 to 05/31/06 1.35% $256,604.15 $3,464.16 06/01/06 to 11/13/06 1.33% $256,604.15 $3,412.84 11/14/06 to 04/03/09 1.33% $272,233.41 $3,620.70 04/4/09 to present 1.34% $272,233.41 $3,647.93
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Exhibit C
Capital Additions Description and Cost
1. Capital Additions: (None at this time) 2. Cost: Estimated Cost In-Service Date:
Description of
Modification
Capital Additions
Cost
One-Time Cost
ITCC Total Cost
Actual Cost In-Service Date:
Description of
Modification
Capital Additions
Cost
One-Time Cost
ITCC Total Cost
3. Capital Additions Charge: Effective Date
Customer-Financed
Monthly Rate
Estimated Capital Additions Cost
Capital Additions Charge based on Estimated Capital
Additions Cost
Actual Capital Additions
Cost
Capital Additions
Charge based on Actual
Capital Additions
Cost In-Service Date of Capital Addition
0.38%
Title Page
Southern California Edison Company FERC FPA Electric Tariff Tariff Title: Wholesale Distribution Access Tariff Tariff Record Title: First Revised Service Agreement No. 69
SERVICE AGREEMENT FOR WHOLESALE DISTRIBUTION SERVICE
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
SIERRA POWER CORPORATION
Contract Effective Date: 7/26/2002 Tariff Record Proposed Effective Date: 7/26/2012 905.69.1 Version Number: 0.0.0 WDT118 Option Code: A
SERVICE AGREEMENT FOR WHOLESALE DISTRIBUTION SERVICE
1. This Service Agreement, dated as of the date executed by the Distribution Customer
under Section 7 of this Service Agreement, is entered into, by and between Southern
California Edison Company (“Distribution Provider”), and Sierra Power Corporation
(“Distribution Customer”).
2. The Distribution Customer has been determined by the Distribution Provider to have
a Completed Application for Distribution Service under the Tariff.
3. The Distribution Customer has provided to the Distribution Provider an Application
deposit in the amount of waived, in accordance with the provisions of Section 6.2 of the
Tariff.
4. Service under this Service Agreement shall commence on the later of (1) date of
execution, or (2) the date on which construction of any Direct Assignment Facilities and/or
Distribution System Upgrades specified in Section 8.0 and 9.0 of the attached Specification
For Wholesale Distribution Service is completed and all additional requirements are met
pursuant to Section 7.4 of the Tariff, or (3) such other date as it is permitted to become
effective by the Commission. Service under this Service Agreement shall terminate on the
earliest of (1) July 26, 2017, or (2) the termination date of the Interconnection Facilities
Agreement between Distribution Provider and Distribution Customer, or (3) Distribution
Provider’s option, upon failure by Distribution Customer to provide advance notice to
Distribution Provider of changes (other than maintenance which is addressed in Section
13.3.2.4 of the attached Specifications For Wholesale Distribution Service) made to
Distribution Customer’s generation or power transformation facilities which are connected to
Distribution Provider’s electrical system pursuant to this Service Agreement. Distribution
Customer shall provide advance notice to Distribution Provider when such changes are
contemplated so that the Distribution Provider can evaluate any potential system impacts
which may occur as a result of the change or whether a new Application under the Tariff
needs to be submitted.
5. The Distribution Provider agrees to provide and the Distribution Customer agrees to
take and pay for Distribution Service in accordance with the provisions of the Tariff and this
Service Agreement.
6. Any notice or request made to or by either Party regarding this Service Agreement
shall be made to the representative of the other Party as indicated below.
Distribution Provider:
Southern California Edison Company Manager, Grid Contract Management P.O. Box 800 2244 Walnut Grove Avenue Rosemead, California 91770 Telefax No. (626) 302-1152 Telephone No. (626) 302-9640
Distribution Customer:
Sierra Power Corporation 9000 Road 234 Terra Bella, CA 93270 Telefax No. (550) 535-4515 Telephone No. (559) 535-4893
7. The Tariff and attached Specifications For Wholesale Distribution Service are
incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by
their respective authorized officials.
Distribution Provider:
By: /s/ A. Larry Grant V.P. 7-24-02
Name Title Date
Distribution Customer:
By: /s/ Kent Duysen President 7-26-02
Name Title Date
SPECIFICATIONS FOR WHOLESALE DISTRIBUTION SERVICE
1. Term of Transaction: See Section 4 of the Service Agreement
Service Commencement Date: See Section 4 of the Service Agreement
Termination Date: See Section 4 of the Service Agreement
2. Description of capacity and energy to be transmitted by Distribution Provider
including the electric Control Area in which the transaction originates and, for a Resource
connected to the Distribution Provider’s Distribution System, a five year forecast of monthly
Generation. Up to 9 MW from Distribution Customer’s Terra Bella Generating Facility.
3. Point of Receipt: The generator side of the pad mounted disconnect switch tie to the
12.4 kV Zion circuit connected to Distribution Provider’s Terra Bella Substation, as shown in
Exhibit B of the Interconnection Facilities Agreement between Distribution Provider and
Distribution Customer.
Point of Delivery: The ISO Controlled Grid at the Distribution Provider’s Vestal
Substation
Receiving Party: The California Independent System Operator Corporation.
4. Description of Wholesale Distribution Load at the Point of Delivery (including a five
year forecast of monthly load requirements): Not Applicable
5. Interruptible Load amount (summer and winter), location and conditions/limitations
(five year forecast): Not Applicable
6. Maximum amount of capacity and energy to be transmitted: 9.0 MW operating within
the power factor range of 0.95 leading and 0.95 lagging. The ISO metering facilities shall be,
notwithstanding Section 13.1 of this Service Agreement, owned by the Distribution
Customer and located on the Distribution Customer’s side of the Point of Receipt.
Distribution Customer shall be responsible for the installation, maintenance, testing, and
certification of the ISO metering facilities in accordance with applicable ISO Tariff
provisions and Metering Protocol. Distribution Customer shall be responsible for all costs
associated with the testing and certification of ISO metering facilities.
7. Designation of party(ies) subject to reciprocal service obligation: Waived.
8. Direct Assignment Facilities: Provided for in the Interconnection Facilities
Agreement between Distribution Provider and Distribution Customer executed concurrently
herewith.
9. Distribution System Upgrades required prior to the commencement of service: None
10. Real Power Loss Factors: 3.73% Credit to Distribution Customer
11. Distribution Service under this Agreement will be subject to the charges detailed
below.
11.1 Customer Charge: None
11.2 Demand Charge: None, pursuant to Section 10.2.2 of the Tariff
11.3 Facilities Charge: The applicable monthly charges under the
Interconnection Facilities Agreement between Distribution Provider and Distribution
Customer.
11.4 System Impact and/or Facilities Study Charge(s): None
11.5 Failure to respond to load shedding and curtailment procedures charge:
If the Distribution Customer fails to curtail its transactions or shed load in
accordance with this Service Agreement and Tariff, then the Distribution
Customer shall pay the Distribution Provider one hundred mills per
kilowatt-hour for each kilowatt-hour of Generation or Wholesale
Distribution Load it failed to curtail or shed
12. Letter of credit or alternative form of security to be provided and maintained by
Distribution Customer pursuant to Sections 7.4 and 15 of the Tariff: Provided for in
the Interconnection Facilities Agreement between Distribution Provider and
Distribution Customer executed concurrently herewith.
Title Page
Southern California Edison Company FERC FPA Electric Tariff Tariff Title: Wholesale Distribution Access Tariff Tariff Record Title: First Revised Service Agreement No. 68
INTERCONNECTION FACILITIES AGREEMENT
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
SIERRA POWER CORPORATION
Contract Effective Date: 07/26/2002 Tariff Record Proposed Effective Date: 7/26/2012 905.68.45 Version Number: 0.0.0 WDT118 Option Code: A
Page 1
INTERCONNECTION FACILITIES AGREEMENT BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY AND
SIERRA POWER CORPORATION
TABLE OF CONTENTS 1. Parties: ......................................................................................................................................................... 2 2. Recitals: ....................................................................................................................................................... 2 3. Agreement: .................................................................................................................................................. 3 4. Definitions: .................................................................................................................................................. 3 5. Effective Date and Term: ............................................................................................................................ 5 6. Agreement Pursuant to the WDAT: ............................................................................................................ 5 7. Creditworthiness: ........................................................................................................................................ 5 8. Interconnection Facilities: ........................................................................................................................... 6 9. Capital Additions To Interconnection Facilities: ........................................................................................ 6 10. Removal Of Interconnection Facilities: .................................................................................................. 6 11. Charges: .................................................................................................................................................. 6 12. Billing and Payment: .............................................................................................................................. 7 13. Billing and Payment Notification: .......................................................................................................... 8 14. Disputes: ................................................................................................................................................. 9 15. Audits: ..................................................................................................................................................... 9 16. Operating Representatives: ..................................................................................................................... 9 17. Regulatory Authority: ............................................................................................................................. 9 18. No Dedication Of Facilities: ................................................................................................................. 10 19. No Third Party Rights: .......................................................................................................................... 10 20. Relationship Of Parties: ........................................................................................................................ 10 21. Waivers: ................................................................................................................................................ 10 22. Governing Law: .................................................................................................................................... 10 23. Notices: ................................................................................................................................................. 11 24. Severability: .......................................................................................................................................... 11 25. Entire Agreement: ................................................................................................................................. 11 26. Ambiguities: .......................................................................................................................................... 11 27. Signature Clause: .................................................................................................................................. 12 Exhibit A ............................................................................................................................................................ 13 Exhibit B ............................................................................................................................................................ 14 Exhibit C ............................................................................................................................................................ 15
1. Parties ...........................................................................................................................................32 2. Recitals .........................................................................................................................................32 3. Agreement ....................................................................................................................................43 4. Definitions ...................................................................................................................................43 5. Effective Date and Term ..............................................................................................................65 6. Agreement Pursuant to the WDAT ..............................................................................................65 7. Creditworthiness ............................................................................................................................6 9. Capital Additions To Interconnection Facilities ..........................................................................76 10. Removal Of Interconnection Facilities ....................................................................................87 11. Charges ....................................................................................................................................87
Page 2
12. Billing and Payment .................................................................................................................87 13. Billing and Payment Notification ............................................................................................98 14. Disputes .................................................................................................................................109 15. Audits .....................................................................................................................................109 16. Operating Representatives .....................................................................................................109 17. Regulatory Authority .............................................................................................................109 18. No Dedication Of Facilities .................................................................................................1110 19. No Third Party Rights ..........................................................................................................1110 20. Relationship Of Parties ........................................................................................................1110 21. Waivers ................................................................................................................................1110 22. Governing Law ....................................................................................................................1110 23. Notices .................................................................................................................................1110 24. Severability ..............................................................................................................................11 25. Entire Agreement .................................................................................................................1211 26. Ambiguities ..........................................................................................................................1211 27. Signature Clause ..................................................................................................................1312 Exhibit B ..........................................................................................................................................1715 Exhibit C ..........................................................................................................................................1916
Page 3
INTERCONNECTION FACILITIES AGREEMENT BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY
AND SIERRA POWER CORPORATION
1. Parties:
The Parties to this Southern California Edison Company – Sierra Power Corporation Interconnection Facilities Agreement are Southern California Edison Company (“SCE”), a California corporation, and Sierra Power Corporation (“Sierra Power”), a California corporation, hereinafter sometimes referred to individually as “Party” and collectively as “Parties.”
2. Recitals:
This Agreement is made with reference to the following facts, among others: 2.1. SCE is a California public utility engaged in the business of generating and transmitting
electric energy in the States of Arizona, California, Nevada, and New Mexico. SCE is further engaged in the business of distributing such energy in the State of California.
2.2. Sierra Power is a California Corporation that owns the Terra Bella generating facility, which generates electricity from biomass.
2.3. The Sierra Power Terra Bella generating facility is a qualifying facility for the purposes of the Public Utility Regulatory Policies Act of 1978, as amended, and is self certified as a Qualifying Facility.
2.4. Sierra Power and SCE executed a CPUC-jurisdictional Power Purchase Contract on December 18, 1984. The Power Purchase Contract as amended obligated SCE to purchase up to 7.5 MW of firm capacity, 1.875 MW of as-available capacity and energy generated from a nominal 9.375 MVA nameplate generator for the 30-year term of the Power Purchase Contract. In 1994, the Parties entered into an agreement to terminate the Power Purchase Contract.
2.5. SCE's and Sierra Power's electrical systems are interconnected via the 12 kV Zion circuit out of SCE's Terra Bella Substation. Interconnection facilities were constructed by SCE to interconnect Sierra Power's Terra Bella generating facility with SCE's distribution Distribution systemSystem. Such interconnection facilities are owned, operated and maintained by SCE.
2.6. Sierra Power paid the annual costs of SCE's ownership, operation, and maintenance of those facilities constructed by SCE to accommodate its generating facility under the Power Purchase Contract and associated interconnection facilities agreement. The charge for such facilities was based on SCE's rate most recently adopted by the CPUC for application to retail customers for SCE-financed added facilities. This added facilities rate is based on an average, levelized cost recovery methodology adopted by the CPUC.
2.7. Pursuant to SCE’s WDAT, Sierra Power submitted an application to SCE for 9.0 MW of wholesale Distribution Service from Sierra Power's Terra Bella generating facility to the ISO Grid at SCE’s Vestal Substation for a period of one (1) year.
2.8. Sierra Power and SCE executed an interconnection facilities agreement and a WDAT service agreement on March 1, 2001. The interconnection facilities agreement specified the terms for SCE to own, operate and maintain the Interconnection Facilities and for Sierra Power to pay SCE for such Interconnection Facilities. The service agreement specified the terms for SCE to provide and for Sierra Power to receive Distribution Service from the Point of Interconnection to the ISO Grid. On March 6, 2002, the interconnection facilities agreement and service agreement terminated.
2.9. Pursuant to SCE’s WDAT, Sierra Power submitted a new application to SCE for 9.0 MW of wholesale Distribution Service from Sierra Power's Terra Bella generating facility to the ISO
Page 4
Grid at SCE’s Vestal Substation for a period of ten (10) years. 2.10. The Parties entered into this Agreement on July 26, 2002 to specify the terms for SCE to own,
operate and maintain the Interconnection Facilities and engineer, design, construct, install, own, operate and maintain any Capital Additions thereto required for SCE to provide Distribution Service to Sierra Power, and payment by Sierra Power to SCE for said Interconnection Facilities and Capital Additions.
2.11. This Agreement implements wholesale Distribution Service under SCE's WDAT in connection and concurrent with that certain Service Agreement for Wholesale Distribution Service between the Parties.
2.12. On March 14, 2003 the Pad Mounted Auto Re-closure equipment (“A/R Equipment”) failed. SCE replaced the damaged equipment and placed it into service on June 1, 2003.
2.13. In November, 2006 the A/R Equipment failed again. SCE replaced the damaged equipment on November 14, 2006.
2.14. On January 27, 2009, the Parties entered into a letter agreement to 1) amend this Agreement to show the actual recorded costs for the facilities described in Section 2.12 and 2.13; 2) provide for SCE financing for such facilities; and 3) allow for the inclusion of NERC reliability requirements for connected generators.
2.15. On August 31, 2009, the Parties entered into a letter agreement to 1) amend the definition of Capital Additions Charge to reinstate use of Customer-Financed Monthly Rate, 2) amend this Agreement to restore the Customer-Financed Monthly Rate for future Capital Additions, and 3) make certain other minor modifications to clarify the terms for future Capital Additions.
2.16. Following the execution of this Agreement, this Agreement was amended to incorporate the appropriate NERC compliance language to ensure that the Parties understand their respective obligations under the NERC compliance standards currently in effect. Such language is incorporated into this Agreement.
3. Agreement:
In consideration of the premises and the mutual covenants and agreements contained herein, the Parties agree as follows:
4. Definitions:
All terms with initial capitalization not otherwise defined herein shall have the meanings assigned to them in SCE’s WDAT as that Tariff may be amended from time to time. The following terms, when used herein with initial capitalization, whether in the singular or the plural, shall have the meanings specified: 4.1. Accounting Practice: Generally accepted accounting principles and practices applicable to
electric utility operations. 4.2. Agreement: This Interconnection Facilities Agreement between Southern California Edison
Company and Sierra Power Corporation. 4.3. Applicable Laws and Regulations: All duly promulgated applicable federal, state and local
laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority.
4.4. Applicable Reliability Council: The Western Electricity Coordinating Council (“WECC”), or its successor organization.
4.5. Applicable Reliability Standards: The requirements and guidelines of NERC, the Applicable Reliability Council, and the control areaBalancing Authority Area of the electric systemSCE’s
Page 5
Distribution System to which the Sierra Power Facilities are directly interconnected, including the requirements adopted pursuant to Section 215 of the Federal Power Act.
4.6. Balancing Authority: The responsible entity that integrates resource plans ahead of time, maintains load-interchange-generation balance within a Balancing Authority Area, and supports interconnection frequency in real time.
4.7. Balancing Authority Area: The collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority. The Balancing Authority maintains load-resource balance within this area.
4.8. Capital Additions: Any Units of Property which are added to the Interconnection Facilities; the enlargement, modification or betterment of any Units of Property constituting a part of the Interconnection Facilities; and the replacement of any Units of Property constituting a part of the Interconnection Facilities, irrespective of whether such replacement constitutes an enlargement, modification or betterment of that which it replaces, the costs of which additions, betterments, modifications, enlargements, and replacements in accordance with Accounting Practice would be capitalized and have not previously been included in the Interconnection Facilities Cost. The Capital Additions are specified in Exhibit C.
4.9. Capital Additions Cost: All costs, excluding ITCC and One-Time Costs, determined by SCE to be associated with the design, engineering, procurement, construction and installation of Capital Additions. The Capital Additions Cost is provided in Exhibit C.
4.10. CPUC: The California Public Utilities Commission, or its regulatory successor. 4.11. Capital Additions Charge: The monthly charge to Sierra Power to recover the revenue
requirements for Capital Additions, calculated as the product of the Customer-Financed Monthly Rate and the Capital Additions Cost. The Capital Additions Charge is provided in Exhibit C.
4.12. Customer-Financed Monthly Rate: The rate most recently adopted by the CPUC for application to SCE’s retail electric customers for customer financed added facilities, which does not compensate SCE for replacement of added facilities. The currently-effective Customer-Financed Monthly Rate is stated in Exhibit C.
4.13. FERC: Federal Energy Regulatory Commission, or its regulatory successor. 4.14. Interconnection Facilities: Facilities, as specified in Exhibit A and as shown in Exhibit B,
constructed by SCE to interconnect the Sierra Power Facilities to the Distribution System. 4.15. Governmental Authority: Any federal, state, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include Sierra Power, SCE, or any affiliate thereof.
4.16. Interconnection Facilities Charge: The monthly charge to Sierra Power to recover the revenue requirements for Interconnection Facilities, calculated as the product of the SCE-Financed Monthly Rate and the Interconnection Facilities Cost. The Interconnection Facilities Charge is provided in Exhibit A.
4.17. Interconnection Facilities Cost: All costs determined by SCE to be associated with the design, engineering, procurement, construction and installation of the Interconnection Facilities, as may be adjusted pursuant to Section 12.1.4.3. The Interconnection Facilities Cost is provided in Exhibit A.
4.18. ITCC: The Income Tax Component of Contribution specified in the Preliminary Statement, Part M of SCE’s tariff on file with the CPUC, as applicable to the Capital Additions Cost.
4.19. NERC: North American Electric Reliability Corporation, or its successor organization. 4.20. One-Time Costs: All costs determined by SCE to be associated with the installation of Capital
Page 6
Additions which are not capitalized in accordance with Accounting Practice. 4.21. Point of Change of Ownership: The point, as set forth in Exhibit B to this Agreement, where
SCE’s Interconnection Facilities connect to the Sierra Power Facilities. 4.20.4.22. Point of Interconnection: The point, as set forth in Exhibit B to this Agreement, where
the Interconnection Facilities connect to SCE’s Distribution System. 4.21.4.23. SCE-Financed Monthly Rate: The rate most recently adopted by the CPUC for
application to SCE’s retail electric customers for added facilities, which does not compensate SCE for replacement of added facilities. The currently-effective SCE-Financed Monthly Rate is stated in Exhibit A.
4.22.4.24. Service Agreement: The Service Agreement For Wholesale Distribution Service between the Parties executed concurrently herewith.
4.23.4.25. Sierra Power Facilities: All equipment and facilities comprising the Sierra Power Terra Bella generating facility, as provided by Sierra Power in its WDAT application, including but not limited to one 9,375 kVA synchronous generator, one 10,000 kVA autotransformer, meters and metering equipment and appurtenant equipment.
4.24.4.26. Units of Property: As described in FERC's “List of Units of Property for Use in Connection with Uniform System of Accounts Prescribed for Public Utilities and Licensees” in effect as of the date of this Agreement, and as such list may be amended from time to time.
4.25.4.27. Vestal Substation: SCE’s 220/66 kV substation located at Famosa-Porterville Hwy., in Richgrove, California.
4.26.4.28. WDAT: SCE's Wholesale Distribution Access Tariff. 4.27.4.29. WECC: The Western Electricity Coordinating Council or its successor.
5. Effective Date and Term:
5.1. This Agreement shall be effective upon the later of (i) date of execution, or (ii) upon acceptance for filing by FERC without suspension; provided however, that if upon such filing the FERC enters into a hearing to determine whether this Agreement is just and reasonable, this Agreement shall not become effective until the date when an order no longer subject to judicial review has been issued by FERC determining this Agreement to be just and reasonable without changes or new conditions unacceptable to either Party.
5.2. This Agreement shall terminate on the earlier of (i) the termination date of the Service Agreement, or (ii) the date specified by Sierra Power upon 180 days advance written notice to SCE.
5.3. Any obligations of one Party to the other, including payment obligations, as a result of this Agreement, which accrued prior to or as a result of termination of this Agreement, shall survive termination.
5.4. If Sierra Power has given notice of termination and a filing with FERC is required to terminate this Agreement, Sierra Power shall support such filing before the FERC if requested by SCE.
6. Agreement Pursuant to the WDAT:
This Agreement provides terms regarding Interconnection Facilities associated with wholesale Distribution Service pursuant to the WDAT. Accordingly, the Interconnection Facilities associated with the wholesale Distribution Service provided to Sierra Power, and Sierra Power's use of and payment for said Interconnection Facilities, are subject to the provisions of the WDAT and the Service Agreement, as those provisions may from time to time be modified.
7. Creditworthiness:
SCE may require Sierra Power to provide and maintain in effect during the term of this Agreement,
Page 7
an unconditional and irrevocable letter of credit in a form reasonably acceptable to SCE as security to meet its responsibilities and obligations under the WDAT, or an alternative form of security proposed by Sierra Power and acceptable to SCE, and consistent with commercial practices established by the Uniform Commercial Code, that protects SCE against the risk of non-payment.
8. Interconnection Facilities:
8.1. The maximum capacity of the Interconnection Facilities made available by SCE to Sierra Power for the purpose of interconnecting to SCE's electrical system and delivering energy and other services to the ISO under this Agreement shall be 9.0 MW. Sierra Power acknowledges that if Sierra Power wishes to increase the amount of interconnection capacity provided pursuant to this Agreement, Sierra Power shall be required to submit a new Application for Interconnection in accordance with the terms and conditions of the WDAT.
8.2. The costs associated with any mitigation measures required to third party transmission systems resulting from the interconnection of the Sierra Power Facilities to SCE’s electrical system are not reflected in this Agreement. Such costs, if any, shall be the sole responsibility of Sierra Power.
8.3. Each Party shall comply with Applicable Reliability Standards and the Applicable Reliability Council requirements. Each Party shall provide to the other Party all information that may reasonably be required by the other Party to comply with Applicable Laws and Regulations and Applicable Reliability Standards.
8.4. Neither Party’s facilities shall cause excessive voltage flicker or introduce excessive distortion to the sinusoidal voltage or current waves as defined by ANSI Standard C84.1-1989, in accordance with IEEE Standard 519, or any applicable superseding electric industry standard or any alternative Applicable Reliability Standard or Applicable Reliability Council standard. In the event of a conflict among ANSI Standard C84.1-1989, or any applicable superseding electric industry standard, or any alternative Applicable Reliability Standard or Applicable Reliability Council standard, the alternative Applicable Reliability Standard or Applicable Reliability Council standard shall control.
8.5. Sierra Power shall comply with all Applicable Reliability Standards for the Sierra Power Facilities. SCE will not assume any responsibility for complying with mandatory reliability standards for such facilities and offers no opinion whether Sierra Power must register with NERC pursuant to Section 215 of the Federal Power Act. Such determination is the responsibility of Sierra Power. If required to register with NERC, Sierra Power shall be responsible for complying with all Applicable Reliability Standards for the Sierra Power Facilities up to the Ppoint of Cchange of oOwnership as described in Exhibit B of this IFA.
8.6. Sierra Power shall cause the Sierra Power Facilities to participate in ISO congestion management. SCE is aware that the Sierra Power Facilities will compete with other market generation for available transmission capacity in accordance with ISO protocols.
9. Capital Additions To Interconnection Facilities:
9.1. SCE shall engineer, design, construct, install, own, operate and maintain all Capital Additions. 9.2. Except as otherwise provided in Section 9.3, whenever Capital Additions to the
Interconnection Facilities are required by SCE pursuant to Good Utility Practice (which may include compliance with system or regulatory requirements), Sierra Power shall bear the cost responsibility for such Capital Additions. SCE shall bill Sierra Power for the estimated Capital Additions Cost, including ITCC, and any associated One-Time Costs in accordance with Section 12. SCE shall not be required to commence any work on any Capital Additions until such bill is paid by Sierra Power in accordance with Section 12.
Page 8
9.3. In the event that Capital Additions are required to the Interconnection Facilities in order to benefit SCE, or because of damage caused by negligence or willful misconduct of SCE, Sierra Power shall not bear cost responsibility for such Capital Additions; no adjustment will be made to the Interconnection Facilities Cost and no One-Time Costs will be charged to Sierra Power for such Capital Additions.
10. Removal Of Interconnection Facilities:
Upon termination of this Agreement for any reason whatsoever, SCE will remove the Interconnection Facilities from service to Sierra Power.
11. Charges:
11.1. Sierra Power shall pay to SCE, in accordance with Section 12, the following charges with respect to the Interconnection Facilities, Capital Additions and this Agreement: (a) Interconnection Facilities Charges; (b) One-Time Costs; (c) Capital Additions Cost pursuant to Section 9; (d) ITCC; (e) Capital Additions Charge; and (f) any reimbursable FERC fees pursuant to Section 17.3.
11.2. The Interconnection Facilities Cost, One-Time Costs, ITCC and Capital Additions Cost shall be compiled in accordance with established Accounting Practice.
11.3. If, during the term of this Agreement, the Interconnection Facilities and Capital Additions are utilized to provide service to another customer, the charges due hereunder shall be adjusted to appropriately reflect such service based on SCE's costs allocation principles in effect at such time and shall be subject to FERC approval.
12. Billing and Payment:
12.1. Billing Procedure. 12.1.1. Except as otherwise specifically provided herein, commencing on or following the
effective date of this Agreement, SCE will render bills to Sierra Power for charges under this Agreement, and Sierra Power shall pay such bills, in accordance with the Billing and Payment provisions of the WDAT.
12.1.2. Commencing on or following the effective date of this Agreement, SCE will render bills to Sierra Power for the Interconnection Facilities Charge.
12.1.3. The Interconnection Facilities Charge for the first and last month of service hereunder shall be pro-rated based on the number of days in which service was provided during said months.
12.1.4. Prior to commencing any work on any Capital Additions in accordance with Section 9, SCE will bill Sierra Power for the Capital Additions Cost, associated ITCC, and associated One-Time Costs. Such billing shall initially be based on SCE's cost estimates and shall be subject to later adjustment pursuant to Sections 12.1.4.1 and 12.1.4.2. 12.1.4.1. If the amount paid for the estimated Capital Additions Cost, associated
ITCC and associated One-Time Costs is less than the actual recorded Capital Additions Cost, associated ITCC and associated One-Time Costs, SCE will bill Sierra Power for the difference between the amount previously paid by Sierra Power and the actual recorded costs, without interest, on the next regular billing.
12.1.4.2. If the amount paid for the estimated Capital Additions Cost, associated ITCC and associated One-Time Costs, is greater than the actual
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recorded Capital Additions Cost, associated ITCC and associated One-Time Costs, SCE will refund to Sierra Power the difference between the amount previously paid by Sierra Power and actual recorded costs, without interest, on the next regular billing.
12.1.4.3. If certain Interconnection Facilities are removed to accommodate such Capital Additions and such removal results in a change in the Interconnection Facilities Cost, the Interconnection Facilities Charge shall be adjusted as of the in-service date of such Capital Additions to reflect the change in the Interconnection Facilities investment.
12.1.4.4. If the amounts paid for the Capital Additions Charge are less than the amounts due for the Capital Additions Charge as determined from the actual recorded Capital Additions cost, SCE will bill Sierra Power for the difference between the amounts previously paid by Sierra Power and the amounts which would have been paid based on actual recorded costs, without interest, on the next regular billing.
12.1.4.5. If the amounts paid for the Capital Additions Charge are greater than the amounts due for the Capital Additions Charge as determined from the actual recorded Capital Additions Cost, SCE will credit Sierra Power the difference between the amounts previously paid by Sierra Power and the amounts which would have been paid based on actual recorded costs, without interest, on the next regular billing.
12.1.5. Commencing on or following the in-service date of the Capital Additions, SCE will render bills to Sierra Power for the Capital Additions Charge.
12.1.6. SCE will render bills to Sierra Power for any reimbursable FERC fees in accordance with Section 17.3. Such charges shall be for any reimbursable FERC fees or costs incurred since the preceding billing.
12.2. Interest on Unpaid Balances.
Interest on any unpaid amounts shall be calculated in accordance with the methodology specified in the Interest on Unpaid Balances provision of the WDAT.
12.3. Default and Billing Dispute.
Any default or billing dispute shall be handled in accordance with the methodology specified in the Customer Default provision of the WDAT.
13. Billing and Payment Notification:
13.1. All payments to be made by Sierra Power to SCE shall be sent to: Southern California Edison Company Accounts Receivable Box 600 Rosemead, California 91770-0600
SCE may, at any time, by written notice to Sierra Power pursuant to Section 6 of the Service Agreement for Wholesale Distribution Service, change the address to which payments will be sent.
13.2. All billings to be presented by SCE to Sierra Power shall be sent to:
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Sierra Power Corporation P.O. Box 10060 9000 Road 234 Terra Bella, California 93270-0060 Fax: (559) 535-4515
Sierra Power may, at any time, by written notice to SCE pursuant to Section 6 of the Service Agreement for Wholesale Distribution Service, change the address to which billings will be sent.
14. Disputes:
With the exception of any billing dispute as provided pursuant to Section 12.3 herein, or as otherwise limited by law, the Dispute Resolution Procedures set forth in the WDAT shall apply to all disputes between Sierra Power and SCE which arise under this Agreement; provided, however, that the Dispute Resolution Procedures set forth in the WDAT shall not apply as to disputes regarding whether rates and charges set forth in this Agreement are just and reasonable under the Federal Power Act.
15. Audits:
SCE will maintain records and accounts of all costs incurred in sufficient detail to allow verification of all costs incurred, including, but not limited to, labor and associated labor costs, material and supplies, outside services, and administrative and general expenses. For two years following the effective date of this Agreement, or with respect to any Capital Additions made pursuant to Section 9, for two years following the in-service date of such Capital Additions, Sierra Power will have the right, upon reasonable notice, at a reasonable time and place, and at its own expense, to audit SCE’s records as necessary and as appropriate in order to verify costs incurred by SCE.
16. Operating Representatives:
The responsibilities assigned to the Operating Representatives appointed pursuant to Section 13.4 of the Specifications for Wholesale Distribution Service attached to and incorporated within the Service Agreement shall extend to the activities required under this Agreement.
17. Regulatory Authority:
17.1. No later than thirty (30) days following the execution of this Agreement, SCE shall tender this Agreement for filing with FERC with a request that it be made effective upon acceptance without suspension, and Sierra Power shall support SCE in obtaining all necessary authorizations and approvals for this Agreement.
17.2. Nothing contained herein shall be construed as affecting in any way: (i) the right of SCE to unilaterally make application to the FERC for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Rules and Regulations promulgated by FERC thereunder; (ii) the right of Sierra Power to oppose such changes under Section 205 of the Federal Power Act; (iii) the right of Sierra Power to file a complaint requesting a change in rates, charges, classification, or service, or any rule, regulation or contract relating thereto, or rate methodology or design relating to services provided hereunder, under Section 206 of the Federal Power Act and pursuant to the rules and regulations promulgated by the FERC
Page 11
thereunder; or (iv) the right of SCE to oppose such complaint by Sierra Power under Section 206 of the Federal Power Act. Any change shall become effective pursuant to Section 205 of the Federal Power Act.
17.3. Sierra Power shall reimburse SCE for all fees and charges imposed on SCE by the FERC attributable to the service provided under this Agreement, or any amendments thereto.
18. No Dedication Of Facilities:
Any undertaking by one Party to the other Party under this Agreement shall not constitute the dedication of the electrical system or any portion thereof of the undertaking Party to the public or to the other Party, and it is understood and agreed that any such undertaking by a Party shall cease upon the termination of its obligations hereunder.
19. No Third Party Rights:
Unless otherwise specifically provided in this Agreement, the Parties do not intend to create rights in or grant remedies to any third party as a beneficiary of this Agreement or of any duty, covenant, obligation, or undertaking established hereunder.
20. Relationship Of Parties:
The covenants, obligations, and liabilities of the Parties are intended to be several and not joint or collective, and nothing contained in this Agreement shall ever be construed to create an association, joint venture, trust, or partnership, or to impose a trust or partnership covenant, obligation, or liability on or with regard to either Party. Each Party shall be individually responsible for its own covenants, obligations, and liabilities as provided in this Agreement. Neither Party shall be under the control of or shall be deemed to control the other Party. Neither Party shall be the agent of or have a right or power to bind the other Party without such other Party's express written consent.
21. Waivers:
Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matter arising in connection with this Agreement, shall not be deemed a waiver with respect to any other or subsequent default or other matter arising in connection therewith. Any delay, short of any statutory period of limitation, in asserting or enforcing any right, shall not be deemed a waiver of such right.
22. Governing Law:
Except as otherwise provided by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the state of California.
23. Notices:
Any notice, demand, or request provided in this Agreement, or served, given, or made in connection with it, shall be made in accordance with Section 6 of the Service Agreement.
24. Severability:
In the event that any term, provision, covenant, or condition of this Agreement or the application of
Page 12
any such term, covenant, or condition shall be held invalid as to any person, entity, or circumstance by any court, arbitration, or regulatory authority having jurisdiction, the invalidity of such term, covenant or condition shall not affect the validity of any other term, provision, condition or covenant and such term, provision, covenant or condition shall remain in force and effect as applied to this Agreement to the maximum extent permitted by law. The Parties hereto further agree to negotiate in good faith to establish new and valid terms, conditions and covenants to replace any found invalid so as to place each Party as nearly as possible in the position contemplated by this Agreement.
25. Entire Agreement:
This Agreement constitutes the complete and final expression of the agreement between the Parties and is intended as a complete and exclusive statement of the terms of their agreement which supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and other agreements which may have been made in connection with the subject matter of this Agreement.
26. Ambiguities:
Ambiguities or uncertainties in the wording of this Agreement shall not be construed for or against any Party, but will be construed in the manner that most accurately reflects the Parties’ intent as of the date they executed this Agreement.
Page 13
27. Signature Clause:
The signatories hereto represent that they are authorized to enter into this Agreement on behalf of the Party for whom they sign. This Agreement is hereby executed as of the 26th day of ___July____, 2002.
SOUTHERN CALIFORNIA EDISON COMPANY By: ____/s/ A. Larry Grant_____ Name: A. Larry Grant Title: Vice President SIERRA POWER CORPORATION By: ___/s/ Kent DuysanDuysen________ Name: Kent DuysanDuysen Title: President
Formatted: Font: Bold
Page 15
Exhibit A Interconnection Facilities
Description and Cost
1. SCE-Financed Interconnection Facilities Actual Costs (“Original Facilities”):
Description Amount 1. 1,700 ft. 12 kV line $37,312.24 2. 12 kV recloser equipment and padmounted relay protection package $125,092.40 3. Metering Equipment $4,425.22 4. 1500 kVA, 12000-277/480 V pad-mounted transformer and 75 feet of 3-1/C 1/0 primary cable $22,337.14 Original Facilities Total: $189.167.00 2. SCE-Financed Interconnection Facilities Actual Costs 2003 Replacement (“Additional Facilities 1”): 1. Installation of one Pad Mount Auto Re-closure, one
Controller and miscellaneous materials and supplies $82,612.71 2. Removed one Load Interrupter, type C, 3-Phase, 14.4 kV ($15,175.56)** Additional Facilities 1 Total: $67,437.15 **This amount excludes the Sierra Power Corporation Payment of $6,452.26 on April 22, 2004 for removal cost. 3. SCE-Financed Interconnection Facilities Actual Costs 2006 Replacement “Additional Facilities 2”): 1. Installation of one Pad Mounted Auto Re-closure $51,778.64 2. Original installed cost of Pad Mounted Auto Re-Closure ($36,149.38) installed June 1, 2003. Additional Facilities 2 Total: $15,629.26
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Exhibit A
Interconnection Facilities Description and Cost
(Cont.) 4. Total Interconnection Facilities Cost In-Service Date:
Facilities Interconnection Facilities Cost
Total Interconnection Facilities Cost
07/26/02 Original Facilities
$189,167.00 $189,167.00
6/1/03 Additional Facilities 1
$67,437,15 $256,604.15
11/14/06 Additional Facilities 2
$15,629.26 $272,233.41
5. Interconnection Facilities Charge Effective Date SCE-Financed Monthly
Rate Interconnection Facilities Cost
Interconnection Facilities Charge
07/26/02 to 05/31/03 1.31% $189,167.00 $2,478.0906/1/03 to 07/17/04 1.31% $256,604.15 $3,361.5107/18/04 to 05/31/06 1.35% $256,604.15 $3,464.1606/01/06 to 11/13/06 1.33% $256,604.15 $3,412.8411/14/06 to 04/03/09 1.33% $272,233.41 $3,620.7004/4/09 to present 1.34% $272,233.41 $3,647.93
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Exhibit C
Capital Additions Description and Cost
1. Capital Additions: (None at this time) 2. Cost: Estimated Cost In-Service Date:
Description of
Modification
Capital Additions
Cost
One-Time Cost
ITCC Total Cost
Actual Cost In-Service Date:
Description of
Modification
Capital Additions
Cost
One-Time Cost
ITCC Total Cost
3. Capital Additions Charge: Effective Date
Customer-Financed
Monthly Rate
Estimated Capital Additions Cost
Capital Additions Charge based on Estimated Capital
Additions Cost
Actual Capital Additions
Cost
Capital Additions
Charge based on Actual
Capital Additions
CostIn-Service Date of Capital Addition
0.38%
Title Page
Southern California Edison Company FERC FPA Electric Tariff Tariff Title: Wholesale Distribution Access Tariff Tariff Record Title: First Revised Service Agreement No. 69
SERVICE AGREEMENT FOR WHOLESALE DISTRIBUTION SERVICE
BETWEEN
SOUTHERN CALIFORNIA EDISON COMPANY
AND
SIERRA POWER CORPORATION
Contract Effective Date: 7/26/2002 Tariff Record Proposed Effective Date: 7/26/2012 905.69.1 Version Number: 0.0.0 WDT118 Option Code: A
SERVICE AGREEMENT FOR WHOLESALE DISTRIBUTION SERVICE
1. This Service Agreement, dated as of the date executed by the Distribution Customer
under Section 7 of this Service Agreement, is entered into, by and between Southern
California Edison Company (“Distribution Provider”), and Sierra Power Corporation
(“Distribution Customer”).
2. The Distribution Customer has been determined by the Distribution Provider to have
a Completed Application for Distribution Service under the Tariff.
3. The Distribution Customer has provided to the Distribution Provider an Application
deposit in the amount of waived, in accordance with the provisions of Section 6.2 of the
Tariff.
4. Service under this Service Agreement shall commence on the later of (1) date of
execution, or (2) the date on which construction of any Direct Assignment Facilities and/or
Distribution System Upgrades specified in Section 8.0 and 9.0 of the attached Specification
For Wholesale Distribution Service is completed and all additional requirements are met
pursuant to Section 7.4 of the Tariff, or (3) such other date as it is permitted to become
effective by the Commission. Service under this Service Agreement shall terminate on the
earliest of (1) ten (10) years from the commencement date of Distribution Service under this
Service AgreementJuly 26, 2017, or (2) the termination date of the Interconnection Facilities
Agreement between Distribution Provider and Distribution Customer, or (3) Distribution
Provider’s option, upon failure by Distribution Customer to provide advance notice to
Distribution Provider of changes (other than maintenance which is addressed in Section
13.3.2.4 of the attached Specifications For Wholesale Distribution Service) made to
Distribution Customer’s generation or power transformation facilities which are connected to
Distribution Provider’s electrical system pursuant to this Service Agreement. Distribution
Customer shall provide advance notice to Distribution Provider when such changes are
contemplated so that the Distribution Provider can evaluate any potential system impacts
which may occur as a result of the change or whether a new Application under the Tariff
needs to be submitted.
5. The Distribution Provider agrees to provide and the Distribution Customer agrees to
take and pay for Distribution Service in accordance with the provisions of the Tariff and this
Service Agreement.
6. Any notice or request made to or by either Party regarding this Service Agreement
shall be made to the representative of the other Party as indicated below.
Distribution Provider:
Southern California Edison Company Manager, Grid Contract Managements and Business Development P.O. Box 800 2244 Walnut Grove Avenue Rosemead, California 91770 Telefax No. (626) 302-92921152 Telephone No. (626) 302-96401771
Distribution Customer:
Sierra Power Corporation 9000 Road 234 Terra Bella, CA 93270 Telefax No. (550) 535-4515 Telephone No. (559) 535-4893
7. The Tariff and attached Specifications For Wholesale Distribution Service are
incorporated herein and made a part hereof.
IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be executed by
their respective authorized officials.
Distribution Provider:
By: /s/ A. Larry Grant V.P. 7-24-02
Name Title Date
Distribution Customer:
By: /s/ Kent Duysen President 7-26-02
Name Title Date
SPECIFICATIONS FOR WHOLESALE DISTRIBUTION SERVICE
1. Term of Transaction: See Section 4 of the Service Agreement
Service Commencement Date: See Section 4 of the Service Agreement
Termination Date: See Section 4 of the Service Agreement
2. Description of capacity and energy to be transmitted by Distribution Provider
including the electric Control Area in which the transaction originates and, for a Resource
connected to the Distribution Provider’s Distribution System, a five year forecast of monthly
Generation. Up to 9 MW from Distribution Customer’s Terra Bella Generating Facility.
3. Point of Receipt: The generator side of the pad mounted disconnect switch tie to the
12.4 kV Zion circuit connected to Distribution Provider’s Terra Bella Substation, as shown in
Exhibit B of the Interconnection Facilities Agreement between Distribution Provider and
Distribution Customer.
Point of Delivery: The ISO Controlled Grid at the Distribution Provider’s Vestal
Substation
Receiving Party: The California Independent System Operator Corporation.
4. Description of Wholesale Distribution Load at the Point of Delivery (including a five
year forecast of monthly load requirements): Not Applicable
5. Interruptible Load amount (summer and winter), location and conditions/limitations
(five year forecast): Not Applicable
6. Maximum amount of capacity and energy to be transmitted: 9.0 MW operating within
the power factor range of 0.95 leading and 0.95 lagging. The ISO metering facilities shall be,
notwithstanding Section 13.1 of this Service Agreement, owned by the Distribution
Customer and located on the Distribution Customer’s side of the Point of Receipt.
Distribution Customer shall be responsible for the installation, maintenance, testing, and
certification of the ISO metering facilities in accordance with applicable ISO Tariff
provisions and Metering Protocol. Distribution Customer shall be responsible for all costs
associated with the testing and certification of ISO metering facilities.
7. Designation of party(ies) subject to reciprocal service obligation: Waived.
8. Direct Assignment Facilities: Provided for in the Interconnection Facilities
Agreement between Distribution Provider and Distribution Customer executed concurrently
herewith.
9. Distribution System Upgrades required prior to the commencement of service: None
10. Real Power Loss Factors: 3.73% Credit to Distribution Customer
11. Distribution Service under this Agreement will be subject to the charges detailed
below.
11.1 Customer Charge: None
11.2 Demand Charge: None, pursuant to Section 10.2.2 of the Tariff
11.3 Facilities Charge: The applicable monthly charges under the
Interconnection Facilities Agreement between Distribution Provider and Distribution
Customer.
11.4 System Impact and/or Facilities Study Charge(s): None
11.5 Failure to respond to load shedding and curtailment procedures charge:
If the Distribution Customer fails to curtail its transactions or shed load in
accordance with this Service Agreement and Tariff, then the Distribution
Customer shall pay the Distribution Provider one hundred mills per
kilowatt-hour for each kilowatt-hour of Generation or Wholesale
Distribution Load it failed to curtail or shed
12. Letter of credit or alternative form of security to be provided and maintained by
Distribution Customer pursuant to Sections 7.4 and 15 of the Tariff: Provided for in
the Interconnection Facilities Agreement between Distribution Provider and
Distribution Customer executed concurrently herewith.
13. Technical and Operational Implementation of Tariff:
13.1 Metering And Communications Equipment
13.1.1 Distribution Provider shall install, own, and maintain revenue quality meters at the
point of interconnection between the Distribution Provider’s Distribution System and
the Distribution Customer’s Resource or Wholesale Distribution Load. If feasible,
such meters shall be installed at the high voltage bus at each such point of
interconnection. The meters shall measure and record real power (watts) and reactive
power (vars) flow, if applicable, in both directions and shall meet the requirements of
the ISO. Meters not installed at the high voltage bus or at the point of interconnection
shall be compensated for line losses and transformation losses to the point of
interconnection, if applicable.
13.1.1.1 Distribution Provider shall read or retrieve meter data on the first normal business day
after the end of each billing cycle or such other date as may be required to carry out
the provisions of the Tariff. Distribution Provider shall use the meter data for
determining accounting and billing information and shall report the data to the ISO,
Formatted: Indent: Left: 0.75"
Distribution Customer’s scheduling coordinator and Distribution Provider’s
scheduling coordinator, as applicable.
13.1.1.2 The revenue meters shall be tested by the Distribution Provider at least once a year
and within ten normal business days after a request by the Distribution Customer.
The Distribution Customer shall pay for the cost of the requested test if the meter has
been tested within the previous twelve months. The Distribution Customer will be
afforded the opportunity to be present during any meter test. The Distribution
Provider shall immediately repair, adjust, or replace any meter or associated
equipment found to be defective or inaccurate.
13.1.1.3 The Distribution Provider shall adjust the recorded data to compensate for the effect
of an inaccurate meter. Such adjustment shall be made for a maximum period of
thirty days prior to the date of the test or for the period during which such inaccuracy
may be determined to have existed, whichever period is shorter. No adjustment prior
to the beginning of the next preceding month shall be made except by agreement of
the parties. Should any meter fail to register, the Distribution Provider shall estimate,
from the best information available, the demand created, energy flow, and var flows
during the period of the failure. The Distribution Provider shall, as soon as possible,
correct the bills rendered to the Distribution Customer by the Distribution Provider
which are affected by the inaccurate meter. That correction, when made, shall
constitute full adjustment of any claim arising out of the inaccurate meter for the
period of the correction.
13.1.2 The Distribution Customer and the Distribution Provider shall install communications
facilities, equipment, and software to schedule and monitor the Distribution
Customer’s Resource or Wholesale Distribution Load connected to the Distribution
Provider’s Distribution System, to exchange data, and for any other purpose as
reasonably required to implement this Service Agreement and the Tariff in
accordance with Good Utility Practice.
13.1.3 All metering, communications, and data exchanges required to implement this
Service Agreement and the Tariff shall be automated to the greatest extent practical.
The Operating Representatives shall coordinate standards and specifications for
metering and communications equipment as well as any related hardware and
software required to implement this Service Agreement and the Tariff, provided such
metering and communications equipment and any related hardware and software
shall, if possible, be compatible with the Distribution Provider’s existing or planned
facilities or software, meet all applicable ISO, Western Systems Coordinating Council
(“WSCC”) and North American Electric Reliability Council (“NERC”) requirements,
and be consistent with Good Utility Practice.
13.1.4 The Distribution Customer shall procure, install and maintain, at its sole expense,
communications equipment, and any related hardware and software required to be
installed on its system in accordance with Section 13.1. The Distribution Customer
shall reimburse the Distribution Provider for all expenses incurred by the Distribution
Provider for any metering and communications equipment, and related hardware and
software, including any modifications to existing facilities or software required for
the Distribution Provider to provide service in accordance with this Service
Agreement and the Tariff.
13.2 Interconnection of Distribution Customer’s Wholesale Distribution
Load:
13.2.1 Facilities for the interconnection of the Distribution Customer’s Wholesale
Distribution Load to the Distribution Provider’s Distribution System shall be
installed, operated and maintained in accordance with Good Utility Practice.
13.2.2 The Distribution Customer shall specify: (i) the voltage level of service desired,
provided such voltage shall be compatible with standard voltages used on the
Distribution Provider’s system, and (ii) any applicable service criteria of the
Distribution Customer, including, but not limited to, any redundancy desired in
elements available to service Wholesale Distribution Load from Distribution
Provider’s Distribution System. If technically feasible, the Distribution Provider shall
provide service at such voltage and in accordance with such criteria, conditioned on
the Distribution Provider obtaining any necessary regulatory permits and complying
with any other federal, state, or local requirements for the construction of any such
facilities.
13.2.3 The Distribution Customer shall keep the Distribution Provider informed on a timely
basis of changes in Wholesale Distribution Load and cooperate in planning any
addition to or upgrade of interconnection facilities to accommodate load growth or
additions. The Distribution Customer shall provide to the Distribution Provider by
September 1 of each year an update of the information set forth in Sections 4 and 5
for the following five calendar years.
13.2.4 The Distribution Provider shall own, operate, and maintain all interconnection
facilities on the Distribution Provider’s side of the Point of Delivery. The
Distribution Customer shall pay all costs and expenses for such interconnection
facilities that are used exclusively to provide Distribution Service to the Distribution
Customer including, but not limited to, the costs of permitting, planning, procuring,
constructing, owning, maintaining, and operating any such facilities.
13.2.5 The Distribution Customer shall provide and maintain, at its sole expense, facilities
on its side of the Point of Delivery in accordance with Good Utility Practice. The
Distribution Customer shall install protective equipment on its system and take any
other reasonable measures to protect the safe and reliable operation of the
Distribution Provider’s system from disturbances on the Distribution Customer’s
system in accordance with Good Utility Practice.
13.2.6 If the Distribution Customer does not maintain its power factor pursuant to Section
8.3 of the Tariff, then the Distribution Provider may, at its option, install the
necessary distribution capacitors or other power factor correction devices at the
Distribution Customer’s expense, including installation and on-going costs of
ownership.
13.2.6 7 The Distribution Customer shall provide the Distribution Provider access to the
Distribution Customer’s interconnection facilities to the extent necessary for the
Distribution Provider to construct, operate, or maintain interconnection facilities. The
Distribution Customer agrees to grant the Distribution Provider all necessary
easements and rights of way, including adequate and continuing access rights, on the
property of the Distribution Customer to transport, install, operate, maintain, replace,
and remove the interconnection facilities, and any equipment or line extension that
may be provided, owned, operated and maintained by the Distribution Provider on the
property of the Distribution Customer. The Distribution Customer agrees to grant
such easements and rights of way to the Distribution Provider at no cost and in a form
satisfactory to the Distribution Provider and capable of being recorded in the office of
the county recorder.
13.2.8 The Parties shall cooperate with one another in scheduling maintenance to any
interconnection facility or in taking any interconnection facility out of service,
provided that in an emergency the Distribution Provider may take facilities out of
service if necessary to protect the Distribution Provider’s system.
13.3 Interconnection of Distribution Customer’s Resource:
13.3.1 The Distribution Customer shall interconnect its Resource with the Distribution
Provider’s Distribution System in accordance with all applicable ISO, WSCC and
NERC criteria, and Good Utility Practice.
13.3.2 The Distribution Customer, at its sole expense, shall design, own, procure, install,
operate and maintain all equipment and facilities, including the Resource, on its side
of the Point of Receipt (Distribution Customer’s Facilities). The Distribution
Provider shall design, own, install, and maintain all facilities necessary to
interconnect the Distribution Customer’s Resource on the Distribution Provider’s side
of the Point of Receipt (Distribution Provider’s Facilities) at the Distribution
Customer’s sole expense to the extent permitted by Commission policies. Such
facilities shall include any equipment necessary to protect the Distribution Provider’s
electric system, employees, and customers from damage or injury arising out of or
connected with the operation of the Distribution Customer’s Facilities, including, but
not limited to, short circuit protection, breaker closing/reclosing control, unit tripping,
loss of synchronism, overcurrent/under current devices such as relays, remote
terminal units, circuit breakers, and meters. The Distribution Customer’s Facilities,
and their operation and maintenance, shall meet the Distribution Provider’s
specifications and shall be subject to inspection and testing by the Distribution
Provider. The Distribution Customer’s Facilities shall be designed, constructed,
operated and maintained as follows:
13.3.2.1 Design
(a) The Distribution Customer, at Distribution Customer’s sole expense, shall:
(1) Design Distribution Customer’s Facilities;
(2) Acquire all permits and other approvals necessary for the construction, operation, and
maintenance of Distribution Customer’s Facilities; and
(3) Complete all environmental impact studies necessary for the construction, operation,
and maintenance of Distribution Customer’s Facilities.
(b) At the Distribution Provider’s request, the Distribution Customer shall provide to the
Distribution Provider the Distribution Customer’s electrical specifications and design
drawings pertaining to Distribution Customer’s Facilities for the Distribution
Provider’s review prior to finalizing the design of Distribution Customer’s Facilities
and before beginning construction work based on such specifications and drawings.
The Distribution Customer shall provide to the Distribution Provider reasonable
advance written notice of any changes in Distribution Customer’s Facilities and
provide to the Distribution Provider specifications and design drawings of any such
changes for the Distribution Provider’s review and approval. The Distribution
Provider may require modifications to such specifications and designs as it deems
necessary to allow the Distribution Provider to operate the Distribution Provider’s
electric system in accordance with Good Utility Practice.
(c) The total installed capacity (net of Station Use) of the Distribution Customer’s
Resources shall not exceed the Nameplate Rating of 9.375 MVA.
13.3.2.2 Construction
(a) The Distribution Customer, at the Distribution Customer’s sole expense, shall
construct Distribution Customer’s Facilities.
(b) The Distribution Provider shall have the right to review and consult with the
Distribution Customer regarding the Distribution Customer’s construction schedule.
(c) The Distribution Provider shall have the right to periodically inspect the Distribution
Customer’s Facilities prior to initial operation upon advance notice to the Distribution
Customer. The Distribution Customer, at its option, may be present at such
inspection.
13.3.2.3 Operation
(a) The Distribution Customer shall operate Distribution Customer’s Facilities in
accordance with any applicable ISO, NERC or WSCC criteria and Good Utility
Practice, including, but not limited to, following voltage schedules, free governor
response, meeting power factor requirements at the Point of Receipt, equipment
maintenance coordination, and communication of necessary data, information, or
reports.
(b) The Distribution Customer shall operate its Resource to generate such reactive power
factor correction as necessary to maintain voltage levels and reactive power support
as may be required by the Distribution Provider. The Distribution Customer shall not
deliver excess reactive power to the Distribution Provider unless otherwise agreed
upon between the Parties. If the Distribution Customer fails to provide reactive
power support, the Distribution Provider may do so at the Distribution Customer’s
expense.
(c) The Distribution Customer’s Resource shall be designed and operated so as to prevent
or protect against the following adverse conditions on the Distribution Provider’s
electric system: inadvertent and unwanted re-energization of a utility dead line or
bus; interconnection while out of synchronization, overcurrent, voltage imbalance;
ground faults; generated alternating current frequency outside permitted safe limits,
poor power factor or reactive power outside permitted limits; and abnormal
waveforms.
(d) Distribution Customer’s Facilities shall be operated with all of the Distribution
Customer’s protective apparatus in service whenever its Resource is connected to, or
is operated in parallel with, the Distribution Provider’s electric system. Any
deviation for brief periods of emergency or maintenance shall only be by agreement
of the Parties.
(e) The Distribution Customer shall maintain operating communications with the
Distribution Provider’s designated switching center. The operating communications
shall include, but not be limited to, system parallel operation or separation, scheduled
and unscheduled outages, equipment clearances, protective relay operations, and
levels of operating voltage and reactive power.
(f) The Distribution Provider may require the Distribution Customer, at the Distribution
Customer’s expense, to demonstrate to the Distribution Provider’s satisfaction the
correct calibration and operation of the Distribution Customer’s protective apparatus
at any time the Distribution Provider has reason to believe that said protective
apparatus may impair the Distribution Provider’s electric system integrity.
13.3.2.4 Maintenance
(a) The Distribution Customer shall maintain Distribution Customer’s Facilities in
accordance with Good Utility Practice.
(b) The Parties shall cooperate with one another in scheduling maintenance to any
interconnection facility or in taking any interconnection facility out of service,
provided that in an emergency the Distribution Provider may take facilities out of
service if necessary to protect the Distribution Provider’s system.
(c) The Distribution Customer shall notify the Distribution Provider by January 1, May 1,
and September 1 of each year, of the estimated scheduled maintenance for the
succeeding four months.
13.3.2.5 The Distribution Customer shall not commence parallel operation of Distribution
Customer’s Facilities with the Distribution Provider’s electric system until written
approval for operation of the interconnection facilities has been given by the
Distribution Provider. Such approval shall not be unreasonably withheld. The
Distribution Customer shall notify the Distribution Provider of the Distribution
Customer’s intent to energize the interconnection facilities not less than forty-five
(45) calendar days prior to such energizing. The Distribution Provider shall have the
right to inspect Distribution Customer’s Facilities within thirty (30) calendar days of
receipt of such notice. If the Distribution Customer’s Facilities are not approved by
the Distribution Provider, the Distribution Provider shall provide written notice to the
Distribution Customer stating the reasons for the Distribution Provider’s disapproval
within five (5) calendar days of inspection.
13.3.2.6 The Distribution Customer shall provide written notice to the Distribution Provider at
least fourteen (14) calendar days prior to the initial and subsequent testing of the
Distribution Customer’s protective apparatus. The Distribution Customer’s
protective apparatus shall be tested thereafter at intervals not to exceed four (4) years
for system voltages less than 66kV, two (2) years for system voltages of 66kV to
200kV, and one (1) year for system voltages of 200kV and above. All such tests shall
be performed using qualified personnel. The Distribution Provider shall have the
right to have a representative present at the initial and subsequent testing of the
Distribution Customer’s protective apparatus and to receive copies of the test results.
13.3.2.7 The Distribution Provider shall not assume any responsibility for protection of
Distribution Customer’s Facilities. The Distribution Customer shall be fully
responsible for protecting Distribution Customer’s Facilities in such a manner that
faults or other disturbances on the Distribution Provider’s electric system do not
cause damage to Distribution Customer’s Facilities.
13.3.2.8 Review by the Distribution Provider of the design, construction, operation, or
maintenance of Distribution Customer’s Facilities shall not constitute any
representation as to the economic or technical feasibility, operational capability, or
reliability of such facilities. The Distribution Customer shall in no way represent to
any third party that any such review by the Distribution Provider of such facilities
including, but not limited to, any review of the design, construction, operation or
maintenance of such facilities by the Distribution Provider is a representation by the
Distribution Provider as to the economic or technical feasibility, operational
capability, or reliability of such facilities. The Distribution Customer is solely
responsible for economic and technical feasibility, operational capability, and
reliability of Distribution Customer’s Facilities.
13.3.2.9 The Distribution Customer agrees to grant the Distribution Provider all necessary
easements and rights of way, including adequate and continuing access rights, on
property of the Distribution Customer to transport, install, operate, maintain, replace,
and remove the Distribution Provider’s interconnection facilities, and any equipment
or line extension that may be provided, owned, operated and maintained by the
Distribution Provider on the property of the Distribution Customer. The Distribution
Customer agrees to grant such easements and rights of way to the Distribution
Provider at no cost and in a form satisfactory to the Distribution Provider and capable
of being recorded in the office of the county recorder.
13.3.3 The Distribution Customer shall keep the Distribution Provider informed on a timely
basis of changes in Generation and cooperate in planning any addition to or upgrade
of interconnection facilities to accommodate additions to Generation. The
Distribution Customer shall provide to the Distribution Provider by September 1 of
each year an update of thee information set forth in Section 2 for the following five
calendar years.
13.4 Each party shall appoint an Operating Representative for the purpose of facilitating
communication between the parties, exchanging data on forecasted Wholesale
Distribution Load or Generation necessary for long-term planning, coordinating
operating criteria and activities, developing detailed operating procedures as
necessary, and addressing other technical and operational considerations required for
implementation of this Service Agreement and Tariff. The Operating Representatives
shall not have any authority to modify, amend, terminate, or supersede any provision
of this Service Agreement or Tariff; or to require any expansion of or addition to the
Distribution Provider’s Distribution System. The Distribution Provider shall have the
authority to adopt rules or procedures for the implementation of the Service
Agreement and the Tariff that are consistent with such Service Agreement and Tariff,
provided that the Distribution Customer shall not be deemed to have waived any right
it may have to contest such rules or be deemed to have waived any right it may have
to contest such rules or procedures before the Commission or any other forum having
jurisdiction over the Service Agreement.
13.5 The Distribution Customer shall, upon request, provide the Distribution Provider with
such reports and information concerning its operation as are reasonably necessary to
enable the Distribution Provider to operate the Distribution System safely and
efficiently.
14. Load Shedding and Curtailment Procedures:
14.1 If a system contingency requires Curtailment of ISO schedules, the Distribution
Customer shall curtail its ISO schedules as requested by the Distribution Provider.
Such ISO schedule Curtailments shall be implemented only to the extent that they
effectively relieve the constraint or that they are directed by the ISO, and to the extent
practical, shall be made on a pro-rate basis, based on the share of the total load served
from the constrained facility, with all other distribution service users of the affected
path, including the Distribution Provider.
14.2 The Parties shall implement Load Shedding programs to maintain the reliability and
integrity of the electric system, as provided in Section 9 of the Tariff.
14.2.1 Load Shedding shall include any combination of the following: (i) automatic Load
Shedding; (ii) manual Load Shedding; and (iii) rotating interruption of customer load.
The Distribution Provider will order Load Shedding to maintain the relative sizes of
load served within the area requiring Load Shedding to the extent practicable, unless
otherwise required by circumstances beyond the control of the Distribution Provider
or the Distribution Customer or unless otherwise directed by the ISO.
14.2.2. Automatic load shedding devices will operate without notice. When manual load
shedding or rotating interruptions are necessary, the Distribution Provider shall notify
the Distribution Customer’s dispatchers or schedulers of the required action and the
Distribution Customer shall comply as directed by the Distribution Provider.
14.2.3 The Distribution Customer shall, at its own expense, provide, operate, and maintain in
service high-speed, digital under-frequency load-shedding equipment. The
Distribution Customer’s equipment shall be: (i) compatible and coordinate with the
Distribution Provider’s load shedding equipment, and (ii) set for the amount of load
to be shed, with frequency trips and tripping time as determined by the Distribution
Provider. In the event the Distribution Provider modifies the load-shedding system,
the Distribution Customer shall, at its own expense, make changes to the equipment
and setting of such equipment, as required. The Distribution Customer shall test and
inspect the load-shedding equipment within ninety days of taking Distribution Service
under the Tariff and at least once every two years thereafter and promptly provide a
written report to the Distribution Provider of the results of such test. The Distribution
Provider may request a test of the load-shedding equipment with reasonable notice.