HomeMy WebLinkAboutResolution - 386 - Agreement - SWPSC - Secure Electric Power & Energy For LP&L - 01/10/1980Resoltuion #386 - 1/10/80
RESOLUTION
WHEREAS, the City of Lubbock, Texas, a Home Rule Municipality located in
Lubbock County, Texas, owns and operates a utility company known as Lubbock
Power and Light, and
WHEREAS, the City of Lubbock is desirous of securing an additional source
of electric power and energy for Lubbock Power and Light, and
WHEREAS, the City of Lubbock is desirous of entering into an Agreement
with Southwestern Public Service Company, a New Mexico corporation, whereby
the City of Lubbock would secure an additional source of electric power and
energy from Southwestern Public Service Company, NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor is authorized and directed to execute for and on behalf of
the City of Lubbock an Agreement between the City of Lubbock, Texas, and
Southwestern Public Service Company under which the City of Lubbock will secure
from Southwestern Public';Service Company electric power and energy, and such
Agreement being attachedherewith shall be spread upon the minutes of the
Council and as spread upon the minutes of this Council shall constitute and be
a pant of this Resolution as if fully copied herein in detail.
Passed by the City Council this loth
'ATT1:3T. = �:
velyn Gaffga,-Gity S cr ary-Treasurer
APPROVED ,AS TO -CONTENT:;
Carroll McDonald, Director of Utility
Sales and Service
APPROVED AS TO FORM:
David W. Reagan, Assi rity Attorney
day of January ,1980.
i
`A1 "N ArN'R,y; `''Aagor o Tem
RESOLUTION #386 - 1/10/80
This agreement, made and entered into by and between the CITY OF
LUBBOCK, TEXAS, a municipal corporation (hereinafter referred to as "the
City") and SOUTHWESTERN PUBLIC SERVICE COMPANY, a New Mexico corporation
(hereinafter referred to as "the Company"), is as follows:
WHFREA,S, both of the parties hereto own and operate facilities for the
generation and distribution of electric power and energy to the consuming
public, and;'
WHEREAS, the City is desirous of securing an additional source of
electric power and energy, and;
WHEREAS, a 230,000 volt source of electric power and energy owned by
the Company and facilities of the City are so located that they can be
connected by constructing a 230,000 volt transmission line and a step -dawn
substation, and;
WliERFAS, the parties hereto have determined that each of them can
realize substantial benefits through improved service to the City's customers
and the sale of electric power and energy under the terms of this agreement;
NOW, THEREFORE, for and in consideration of the premises and the
covenants and agreements hereinafter set forth, the parties hereto agree as
follows:
ARTICLE I
FACILITIES TO BE PRUVIDED
Section 1.1. The Company agrees to purchase and install an oil
circuit breaker and associated equipment sufficient to tap the 230,000 volt
bus of the Company's Clifford B. Jones Station (hereinafter called ,the
Station") located southeast of Lubbock, Texas, which oil circuit breaker
and associated equipment shall be maintained and operated by the Company
during the term of this agreement and any extensions or renewals thereof.
The City hereby agrees to pay to the Company, within thirty (30) days of
the receipt by the City of an invoice therefor, all costs of the purchase,
installation, maintenance and repair of such oil circuit breaker and associated
equipment during the term of this agreement or any extensions or renewals
thereof. Upon termination of this agreement, as herein provided, all
associated equipment shall become the property of the Company without
further compensation to the City and further, the Company shall have the
first option to purchase from the City the above described oil circuit
breaker at the City's depreciated book value thereof at the time. Should
the Company fail to exercise its option to purchase said oil circuit breaker
as hereinabove provided, within thirty (30) days of the termination of this
agreement, the City shall remove such oil circuit breaker from the premises
of the Company immediately, leaving the premises of the Company in a good
state of repair.
Section 1.2. The City will construct, at its sole expense, a shielded
230,000 volt transmission line of a type and design previously approved in
writing by the Company frau the Station to the City's Holly Avenue Power
Plant location and will provide a step-down substation from 230,000 volts
to the City's transmission system, together with control, switching and
Protective equipment of a type and design previously approved in writing by
Company, which will permit the Company to deliver and the City to
receive electric power and energy as provided for herein.
Section 1.3. The City agrees that it will install all necessary
apparatus and equipment required by the Company for the performance of this
agreement and will at all times so maintain and operate such apparatus and
equipment so as to avoid undue electrical disturbance to the Company's
system.
Section 1.4. It is the intent of the parties hereto that the instal-
lations of the various equipment and lines described in Sections 1.1., 1.2.'
and 1.3 above shall be completed by the lst day of July 1982 r°,r
P�
ARTICLE II
METERING
Section 2.1. The Company will provide, maintain and operate, at its
expense, metering equipment for proper indication of electric energy flow
to the City and telemetering equipment for transmission of metering signals
to the Company's control center. The amounts of electric power and energy
supplied to the City in acoordance with the terms of this agreement shall
be determined by the metering facilities as hereinabove described.
Section 2.2. Metering equipment shall be tested by the Company in
accordance with all applicable standards published by the American National
Standards Institute. If any meter test requested by the City other than
those tests normally performed by the Company discloses metering equipment
to be registering outside acceptable limits of accuracy (2% above or below
comparison with calibrated standards), then the Company shall bear the
expense of such tests; otherwise, the expense of such tests shall be borne
by the City. Representatives of the City shall be afforded an opportunity
to be present at all tests.
Section 2.3. If any metering test discloses that a meter is in error
by more than plus or minus two per cent (+ or - 2%) the account between the
parties hereto shall be adjusted by the Company to correct for the full
percentage of inaccuracy. Such adjustment shall be made for a maximum.
period of ninety (90) days prior to the date of such test or for the period
during which such inaccuracy may be determined to have existed, whichever
period is shorter. If any metering equipment, at any time, fails to register,
or if the registration thereof be so erratic as to be meaningless, all
electric energy delivered to the City during such period of time shall be
determined by the Company from the best available data.
Section 2.4. The City shall have the right, at any time, to install
its own metering equipment at its sole expense of a type and design pre-
viously approved in writing by the Company for the purpose of checking the
meters installed by the Company.
AR'T'ICLE III
RATES AND ,TERMS
Section 3.1. Electric power and energy supplied to the City pursuant
to this agreement shall be supplied, during the term of this agreement, in
accordance with the terms and conditions and at rates set forth in Service
Schedules A, B and C (attached to this agreement), however, nothing contained
herein shall be construed as affecting in any way the right of any party
furnishing or receiving service under these rate schedules to unilaterally
make application to the Federal Energy Regulatory Commission or other
governmental- body having jurisdiction for a change in rates, charges,
classification, or service, or in any rule, regulation, or contract relat-
ing thereto, or to petition for investigation of existing rates, under
Section 205 and 206 of the Federal Power Act, whichever shall be applicable,
and pursuant to the Commission's rules and regulations promulgated thereunder.
Should any such changes be made, the parties hereto agree to implement such
changes, as ordered or directed, without the necessity of further agreement
between the parties.
ARTICLE IV
RESTRICTION CF USE
Section 4.1. Electric energy supplied by the Company in accordance
with the terms of this agreement shall not be used by the City in conjunc-
tion with any other source of electric energy other than the City's, without
two (2) years prior written notice to the Company, except that if electric
energy supplied by the Company should fail or be interrupted and if the
City's system is (and during such time period remains) electrically isolated
from the Company's system, the City may, during such period of isolation,
use any other source of electric energy without such notice.
-2-
ARTICLE V
DELIVERY POINT
Section 5.1. The delivery point (hereinafter called "delivery point")
of electric power and energy provided for hereunder shall be.the
point
where the Company's facilities connect to the City's facilities, as shown
on Exhibit 1 to this agreement.
ARTICLE VI
CO41MCATIONS DQUIPMENT
Section 6.1. The City hereby agrees to furnish all necessary common-
'cations equipment, and agrees to have on duty, at all times, sufficient
personnel so that voice communication can be established between the City
and the Company's control center located at Amarillo, Texas, for the schedul-
ing and dispatching of electric energy flow to the City.
ARTICLE VII
REACTIVE AMPERES
Section 7.1. The parties hereto acknowledge that certain operational
and technical problems may arise in the control of the flow of reactive
amperes. It is, therefore, agreed that the operating department of both of
the parties hereto, through their respective duly authorized representatives,
shall cooperate with each other in such matters, so that, as nearly as
practicable, the delivery and receipt of electric power and energy shall be
accomplished with the least interference with the respective systems of
each party. During the term of this agreement, or any extension thereof,
the Company shall not be obligated to carry, what the Company considers to
be abnormal reactive current which would adversely affect or interfere with
or limit the operation of the Company's use of its other facilities or
would require the operation by the Company of generating equipment not
normally operated by it.
ARTICLE VIII
BILLING AND PAYNENT
Section 8.1. As soon as practicable, monthly, after any meter reading
date, the Company will render to the City a statement showing the total
amounts due to the Company for the electric power and energy supplied to
the City in accordance with this agreement. All statements for electric
power and energy supplied to the City in accordance with the terms hereof
shall be due and payable to the Company at the Company's office at Amarillo,
Texas on the 10th day following receipt of such statement by the City.
ARTICLE IX
INDEMNIFICATION
Section 9.1. Electric power and energy supplied in accordance with
the terms of this agreement.is supplied upon the express condition that,
after it'' passes the delivery point as hereinabove described, it becomes the
property'of and the responsibility of the City. The City hereby agrees to
indemnify and hold the Company harmless from any and all liability, loss,
damages for injury to persons, including death, and all damages to or
destruction of property arising out of the transactions contemplated hereby
which are determined to have been caused by the sole negligence of the
officers; agents, or employees of the City; likewise, the Company hereby
agrees to indemnify and hold the City harmless from any and all liability,
loss, damages for injury to persons, including death, and all damages to or
destruction of property arising out of the transactions contemplated
hereby which are determined to have been caused by the sole negligence of
the officers, agents, or employees of the Company. Should any tribunal of
competent jurisdiction, by final decree, find that such liability, loss,
damages for injury to persons, including death, and damages to or destruc-
tion of property arising out of the transactions contemplated hereby were
caused by the joint negligence of the officers, agents, or employees of
the parties hereto, then, in such instance, the parties hereto agree to
abide by such final decree in accordance with the applicable laws of com-
parative negligence.
-3-
ARTICLE X
FORCE MAJEURE
Section 10.1. If by reason of force majeure either party hereto is
unable totally or in part to carry out its agreement on its part herein
contained, s ch party shall not be deemed in default during the continuance
of such inability.
Section 10.2. The term force majeure as used herein shall mean the
following: is of God, strikes, lock -outs or other industrial disturbances,
acts of public enemies, orders, acts or laws of any governmental authority
or any of their subdivisions, departments, agencies, or officials, or any
civil or military authority, fuel interruptions, insurrections, riots,
epidemics, landslides, lightning, earthquake, fire, hurricanes, storms,
floods, washouts, droughts, arrests, restraint of government and people,
civil disturblances, explosions, breakage or accident to machinery, trans-
mission pipes or canals or lines, partial or entire failure of utilities or
any other cause or event not reasonably within the control of parties
hereto. The parties agree, however, bo remedy, with all reasonable dispatch,
the cause or causes preventing the respective parties from carrying out
their agreements, provided, that settlement of strikes, lock -outs and other
industrial disturbances shall be entirely within the discretion, of the
respective patties, and they shall not be required to make settlements of
strikes, lockouts and other industrial disturbances by acceding to the
:demands of th opposing party or parties when such course is, in the judg-
ment of such inarty, unfavorable to that party.
ARTICLE XI
TERMINATION BY DEFAULT
Section 1.1. The failure of either party hereto to fly with all
of the terms conditions of.this agreement shall place such defaulting
party in breach of this agreement and
agr upon the happening of such event, the
non-defaultir party shall have the option to terminate this agreement as
herein provided. Upon .discovering said default, the non -defaulting party
shall give written notice to the defaulting party that such breach be cured
within thirty (30) days of receipt by the defaulting party of the notice.
Should such defaulting party fail to cure its breach of this agreement
within said thirty day period, the non -defaulting party may terminate this
agreement by a subsequent written notice to the defaulting party and this
agreement shall be deemed terminated upon receipt by the defaulting party
of such subs ent notice. These default provisions shall not preclude
either party ereto frcm any remedy or remedies prescribed by law for any
breach of thi agreement.
ARTICLE XII
TERM
Section 2.1. This agreement shall become effective as of the date of
the execution hereof by both parties and shall continue, subject to the
rights of termination set out above, for a period of ten (10) years from
and after the first delivery of electric energy by the Company to the City
in accordance ith the terms hereof. After such initial ten year term,
this agreement shall continue from year to year thereafter subject to
termination by either party hereto by written notice of intention to termi-
nate to the other party at least two (2) years prior to such intended
termination.
ARTICLE XIII
MISCELLANEOUS
Section 1;3.1. The City hereby agrees to keep log sheets and other
records as may be needed to afford a history of the amounts of electric
energy involved in the transaction hereunder. The originals of all such
records shall open to inspections by representatives of the Company at
all reasonable, )), tunes.
I
-4-
Section 13.2. Waiver at any time by either party hereto of its right
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 subsequent default or matter.
Section 13.3. This agreement and all of the obligations contained
herein are conditioned upon the valid orders of and the granting of approval
and authorization by any commission or regulatory body, having jurisdiction
or whose approval or authorization may be required by law.
Section 13.4. Each party hereto hereby grants to the other party
hereto, reasonable access to such party's facilities for any lawful purpose
when accompanied by a duly authorized representative of such party.
Section 13.5. The Company does not guarantee that the supply of
electric power and energy in accordance with the terms hereof will be free
from temporary interruptions and it is hereby agreed by the parties hereto
that temporary interruptions of the Company's service hereunder shall not
constitute a breach of this contract on the part of the Company. In the
event of temporary interruptions to service, the Company will restore
service as soon as it can reasonably do so, and will at all tires exert
itself toward the end of supplying as nearly constant service as is reason-
ably practicable.
Section 13.6. This contract is performable in Amarillo, Potter
County, Texas and all payments due to the Company are payable at Amarillo,
Potter County, Texas and the parties hereby agree that venue for any legal
actions brought hereunder is properly laid in Potter County, Texas.
EXECUTED THIS 10th day of
ATTEST:
Evelyn Gaga
City Secretary -Treasurer
APPROVED AS TO CON=:
G
_el� i
Carroll McDonal
Director of Electric Utilities
Sales and Service
January 1980
CITY OF IJJBBOCK, TEXAS
A Municipal Corporation
By
Alan I ienry, Mayor Tro-T�
APPROVED AS TO FORM:
David W.4
.
Rea
Assistant City A torney
SOU.I'FRIESTERN PUBLIC SERVICE COMPANY,
A New Mexico Corporation
1.
By
• F. roar, Vice President
-5-
THE STATE OF TEXAS §
§
COUNTY OF LUBBOCK §
BEFORE NE, the undersigned authority, in and for said County, Texas, on this
day personally appeared Alun Henry, Mayor Pro Tem
known tot to be the person
ins and officer whose name is subscribed to the foregoing
LUBBOCK,KT Tand acknowledged to me that the same was the act of the said CITY OF EXAS, a municipal corporation, and that he executed the same as the act
of such corporation for the purposes and consideration thereinressed and in
the capacity therein stated. •
GIVEN UNDER MY HAND AND SEAL OF OFFICE, This it day of
A.D., 19 ,
Notary Public, Lubbock Count -Texas
My commission expires
THE STATE OF TEXAS §
COUNTY OF PC7ITER §
BEFORE ME, the undersigned authority, in and or sAid County,
day Personally appeared .Texas, on this
known to me to be the person an officer w ose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the said SOUTHWESTERN
PUBLIC SERVICE COMPANY, a New Mexico corporation, and that he executed the same as
the act of such corporation for the purposes and consideration therein expressed,
and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, This
A.D., -_ day of
Notary Public, Potter County, Teras
My commission expires
-6-
SERVICE SCMMME A
to Agreement between the City of Lubbock, Texas
and Southwestern Public Service
Company
ARTICLE A-1
DEFINITIONS
In addition to the words and terms defined in the Agreement to which
this Schedule is attached, the following words and terms as used in this
Schedule, shall have the following meanings unless the o�ntext or use indi-
cates another or different meaning or intent.
Section A-1.1. The term "firm power" as that term is used herein shall
mean thatti
quan ty of electric power and energy, that.the Company will have
available monthly to the City in accordance with the terms and conditions of
this Agreement.
Section A-1.2. The term "kw" as that term is used herein shall mean
kilowatt hour per hour.
Section A-1.3. The term "billing demand" "
mean the
as that term
shall i
s used herein
quantity of fine power, expressed in kilowatts designated as
ill provided in Section A-2.1. hereof and
A-4.1. and A-4.2. hereof. subject to the provisions of Sections
ARTICLE A-2
Designations of Quantities of Firm Pacer
Section A-2.1. On execution of the Agreement to which this Schedule is
attached, the City shall submit to the Company, in writing,
Paver demand for the first twelve (12) months of delivery the City's firm
and energy to the City by the �Y of electric pacer
Company. Upon acceptance, in writing,b the
Company to the effect that the Ci rY
City's firm power demand for the first twelve
months of delivery is satisfactory.to the Company, such
Paver shall be deli quantities of electric
designated as firm power for such initial twelve months.
Thereafter, annually one (1) month prior to the anniversary date of the first
delivery of firm power in accordance with this agreement, the City will
submit to the Company, in writing, the City's firm power demand for the next
succeeding twelve (12) month period. (Each such period to commence on the
anniversary date of the first delivery of firm power in accordance with this
agreement.) Upon acceptance, in writing, by the Company to the effect that
each annual firm power demand subsequent to the initial twelve months period
will be satisfactory to the Company, such quantities of electric
power shall
be designated as firm
power for the applicable period.
ARTICLE A-3
RATES FOR FIRM POWER
Section A-3.1. Duringthe term
of
this
A e
e
t
or
extensions on
s
ormenanYrenewals thereof, subject to change
provided,
hereby agrees to Pay Company for firm power at the following the City
'
monthly rates;
$21300 per month for the first 500 kw of firm power,
or less, of billing demand Plus
$4.48 per kw per month of f'
i.rmIer for all
a'.
P� 1 additional
billing demand,P lus
1.03 cents per kwh for all energy delivered hereunder.
Section A-3.2. In addition to the rates provided for above in Section A-
3.1 hereof, such amounts shall be increased or decreased per kwh of sales
equal to the difference between the fuel cost per kwh of sales in the base
period and estimated cost per kwh of sales in the current month adjusted for
the preceding month estimate error. Fuel cost per kwh of net generation
during the base period was 0.9000 cents.
sale is 4.4�. The ever charge The loss adjustment to the point of
energy rge adjustment will be calculated in compliance
with the formula and conditions set forth in Section 35.14 of the
under the Federal Power Act (Title 18, Part I, Subchapter B of the Code o ons
Federal Regulations)..
Section A-3.3. Billings under this Schedule may be increased by an
amount equal'.to the sum of the taxes payable under federal, state and local
sales tax acts, and all of the additional taxes, fees, or charges, (exclusive
of ad valorein, state and federal income taxes) payable b the
Y Company and
levied or assessed
by any governmental authority on the Company services
rendered, or'on the right or privilege of rendering the service, or is any
object or event incidental to the rendition of the service, as the result of
any new amended laws after September 1, 1978.
ARTICLE A-4
BILLING DEMAND ADjUSTMEN'I5
Billing demand shall be subject to the following adjustments;
Section A-4.1. In the event the Company is unable to furnish the quanti-
ties ofifirm power designated by the City (as a result of force majeure) or
in the event City is unable to receive the quantities of firm
the Ci power previously
designated by City (as a result of force majeure), billing demand shall
be adjusted downward to the maximum power actually supplied, such downward
adjustment to be effective from the date Company is so unable to furnish such
quantities of firm power or from the date City is so unable to receive such
quantities of firm power, whichever is earlier, and shall be effective until
such time as the reason therefore is cured.
Section A-4.2. In the event the City requests quantities of power
exceeding the billing demand .(hereinafter called excess billing demand) and
Ccapany provides such quantities, the billing demand shall be adjusted by the
Company upward by the amount of such increase, which adjustment shall be
effective frau the date such excess quantities are supplied and extending
thereafter to the end of the current twelve (12) month period for which
firm power has been designated. If Company is not agreeable to providing
such additional demand for the remainder of such twelve month period, City
shall pay for the excess demand only for the billing month in which the
excess was taken. The City hereby agrees to pay an additional charge of the
Company I$ cost, plus 10%, if the Company Im3st purchase pGWer. from its other
interconnections to meet the City's excess billing demand. The City's excess
billing demand shall be exempt from this adjustment if such excess is caused
by an emergency or a non-firm energy sale and the Company agrees to sell and
deliver the same under Schedules B or C hereof. In that event, such excess
shall beibilled under the provisions of the applicable Schedule.
A-2
SERVICE SCHEDULE B
to Agreement between the City of Lubbock, Texas
and Southwestern Public Service Company
ARTICLE B-1
DEFINITIONS
In addition to the words and terms defined in the Agreement to which this
Schedule is attached, the following words and terms as used in this Schedule,
shall have the following meanings unless
the context or use indicates another
or different meaning or intent.
Section B-1.1. The term "emergency
shall mean electric ener&service" as that term is used herein
supplied under Schedules A andeC heretothsu than
electric power and energy
under PP by the Company to the City
unexpected emergency conditions beyond the control of the City where the
City istenporarily unable to obtain needed electric
sources normally available to it. Pier and energy from other
ARTICLE B-2
AVAILABILITY OF EMERGENCy SERVICE
Section B-2.1. When the City, in an emergency, shall require emergency
vice frn the Company, the City shall contact the Co eq� ser
service. The Company shall then furnish the requested Y requesting such emergency
available source to the extent that, in the judgment emergency service from any
j gment of the
of such emergency service will not impair or jeopardize other service in the system
of the Capany.
ARTICLE B-3
RATES FOR IImERGENCY SERVICE
Section B-3.1. For emergency service provided for in this Schedule, the City
shall ooanpensate the
Company monthly at the following rates;
(a)I', If provided from the Ccmpanyissystem, the greater of
I 4.000 cents per kwh, or the Company,s cost of fuel forenerating
such energy, including start ukilowatt hour.p costs, if any, plus 5 mils per
(b) If provided from sources outside of the
ProCurement costs in mils FY's own system,
per kwh plus 10% for losses and handling.
Section B-3.2. Billings under this Schedule may be increased by an amount
equal to ,the sum of the taxes payable under federal, state and local sales tax
acts, and all of the additional taxes, fees or charges,
state and federal income taxes) (exclusive of ad valorem,
payable by the Company and levied or assessed by
any goverrinental authority on the Company's Pant s services rendered, or on the right or
privilege of rendering the service, or on any object or event incidental to the
renditionof the service, as the result of any new or
ber 1, 19'78. amended laws after Septem-
SERVICE SCHEDULE C
to Agreement between the City of Lubbock, Texas
and Southwestern Public Service Ccapany
ARTICLE C-1
DEFINITIONS
G In addition to the words and terms defined in therd
Schedule is attached, the following words and terms as used innthis Schedult to which
es
shall have the following meanings unless the context or use indicates another
or different meaning or intent.
Section C-1.1. The term "nor -firm energy" as that term is used herein shall
electric energy which the Company can produce and deliver (other than that
electric energy described in Schedules A and B hereto) at a cost below that -at
which the City can generate at its own generators in
purchase, and which the operation at the time of
sole discretion, and the C� willing nand abg and leto
e to sell e. the Company's
purchase.
ARTICLE C-2
AVAILABILITY OF NON-FIRM ENERGY
Section C-2.1. At any time during the term of this Agreement or any exten-
sion or renewal thereof, that the City desires to purchase non-firm energy and
the Company is willing and able to sell such non-firm energy the
effect such purchase and sale by verbal agreement through the parties may
center at Amarillo, Texas in accordance with the provisions her�eof.nYThecontrol Y
hereby reserves the right at any time during such purchase of non-firm energy by
the City to discontinue same for any reason. If an emergency should occur on the
City's system during the purchase of any non-firm ever
excess of firm power shall be energy, all energy purchased in
Afire for in accordance with the terms and conditions
Of Service Schedule B to this
Agreement.
Section C-2.2. During any month in which the
to the Ci Company sells non-firm energy
City, the City shall make available such records as are necessary to
establish that it had concurrently available, at the time of any non-firm energy
Purchase, alternate dependable capacity that could have otherwise been used to
produce or furnish equivalent quantities of energy.
ARTICLE C-3
RATES FOR NON-FIRM ENERGY
Section C-3.1. During the term of this Agreement or any extensions or renewals
thereof, and subject to change as hereinafter provided, the City hereb a
Pay to the Company for non-firm energy the following rate: Y to
Rate = B + A -B
2
where A equals the City's anticipated incremental production costs
the transaction and B equals the per kwh during
delivery costs nY s anticipated incremental production and
Per kwh during the transaction. Incremental costs shall mean the
costs to each respective party to produce the kwh involved in the transaction.
EXHIBIT -I
to Agreement between the City of Lubbock, Texas
and Southwestern Public Service Company
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