HomeMy WebLinkAboutResolution - 2022-R0057 - Second Amended Power Service Agreement LP&L with SPSResolution No. 2022-R0057
Item No. 7.31
January 25, 2022
RESOLUTION
WHEREAS, Lubbock Power & Light is the municipally owned electric utility of
the City of Lubbock ("LP&L");
WHEREAS, LP&L and Southwestern Public Service Company, a New Mexico
corporation ("SPS"), are parties to that certain Master Power Purchase and Sale
Agreement dated as of November 12, 2009 (the "Master Agreement"), and that
certain Transaction Agreement of the same date entered into under the Master
Agreement (the "Transaction Agreement", and together with the Master Agreement
and any other transactions entered into under the Master Agreement, the "PPA"),
pursuant to which LP&L is purchasing 170 megawatts of Partial Requirements Power
Service, as defined in the Transaction Agreement, and increased annually as provided
therein, from SPS;
WHEREAS, LP&L and SPS are also parties to that certain Letter Agreement
entitled "Letter Agreement between SPS and LP&L re Future Costs under SPP
NITSAs", dated March 21, 2017 (the "Transmission Letter Agreement'), related to
transmission charges allocable to LP&L in connection with the PPA;
WHEREAS, LP&L and SPS have agreed to certain terms and conditions outlined
in that certain Settlement Agreement by and between SPS and LP&L dated May 27,
2021 ("Settlement Agreement'), to terminate the PPA and the Transmission Letter
Agreement;
WHEREAS, LP&L and SPS desire to amend only the Amendment to Scheduling
Protocol, attached as Exhibit 1 to the Settlement Agreement; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council, on behalf of the City of Lubbock, hereby approves that
certain Second Amended and Restated Partial Requirements Power Service
Agreement Scheduling Protocol, by and between the City of Lubbock, acting by and
through Lubbock Power & Light, and Southwestern Public Service Company, as
attached hereto and incorporated herein as though set forth fully herein in detail.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT the City Council, on behalf of the City of Lubbock, hereby acknowledges
that no other changes are being made to that certain Settlement Agreement by and
between the City of Lubbock, acting by and through Lubbock Power & Light, and
Southwestern Public Service Company dated May 27, 2021.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute that certain Second Amended and Restated Partial Requirements Power
Service Agreement Scheduling Protocol, by and between the City of Lubbock, acting
by and through Lubbock Power & Light, and Southwestern Public Service Company,
as attached hereto and incorporated herein as though set forth fully herein in detail.
Passed by the City Council this 25th day of January 2.
Daniel M. Pope, MAYOR
ATTEST:
Bel y Garza, City Secr tar
APPROVED AS TO CONTENT:
David McCalla, Director of Electric Utilities
APPROVED AS TO FORM:
— 6f"" �;�
Je y mit , L &L eneral Counsel
Resolution No. EUB 2022-R0003
RESOLUTION
WHEREAS, Lubbock Power & Light is the municipally owned electric utility of
the City of Lubbock ("LP&L" );
WHEREAS, LP&L and Southwestern Public Service Company, a New Mexico
corporation ("SPS"), are parties to that certain Master Power Purchase and Sale
Agreement dated as of November 12, 2009 (the "Master Agreement"), and that
certain Transaction Agreement of the same date entered into under the Master
Agreement (the "Transaction Agreement", and together with the Master Agreement
and any other transactions entered into under the Master Agreement, the 'TPA"),
pursuant to which LP&L is purchasing 170 megawatts of Partial Requirements Power
Service, as defined in the Transaction Agreement, and increased annually as provided
therein, from SPS;
WHEREAS, LP&L and SPS are also parties to that certain Letter Agreement
entitled "Letter Agreement between SPS and LP&L re Future Costs under SPP
NITSAs", dated March 21, 2017 (the "Transmission Letter Agreement"), related to
transmission charges allocable to LP&L in connection with the PPA;
WHEREAS, LP&L and SPS have agreed to certain terms and conditions outlined
in that certain Settlement Agreement by and between SPS and LP&L dated May 27,
2021 ("Settlement Agreement"), to terminate the PPA and the Transmission Letter
Agreement;
WHEREAS, LP&L and SPS desire to amend only the Amendment to Scheduling
Protocol, attached as Exhibit 1 to the Settlement Agreement; NOW, THEREFORE,
BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF
LUBBOCK:
THAT the Electric Utility Board of the City of Lubbock hereby approves that
certain Second Amended and Restated Partial Requirements Power Service
Agreement Scheduling Protocol, by and between the City of Lubbock, acting by and
through Lubbock Power & Light, and Southwestern Public Service Company, as
attached hereto and incorporated herein as though set forth fully herein in detail.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT the Electric Utility Board of the City of Lubbock hereby acknowledges that
no other changes are being made to that certain Settlement Agreement by and
between the City of Lubbock, acting by and through Lubbock Power & Light, and
Southwestern Public Service Company dated May 27, 2021.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT the Chairman of the Electric Utility Board is hereby authorized and directed
to execute that certain Second Amended and Restated Partial Requirements Power
Service Agreement Scheduling Protocol, by and between the City of Lubbock, acting
by and through Lubbock Power & Light, and Southwestern Public Service Company,
as attached hereto and incorporated herein as though set forth fully herein in detail.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT this resolution shall be null and void if the City Council of the City of
Lubbock does not approve a similar resolution approving the Second Amended and
Restated Partial Requirements Power Service Agreement Scheduling Protocol, by
and between the City of Lubbock, acting by and through Lubbock Power & Light,
and Southwestern Public Service Company within thirty (30) days of this resolution.
Passed by the Electric Utility Board this 18th day of January, 2022.
47M��
Dan Odom, Chairman
APPROVED AS TO CONTENT:
- Q'4:1 i��a
David McCalla, Director of Electric Utilities
APPROVED AS TO FORM:
c;;. % -
dr�� ruj:4.
J Sm P&L neral Counsel
Resolution No. 2022-R0057
ATTACHMENT 3
Second Amended and Restated Partial Requirements Power Service Agreement
Scheduling Protocol
The City of Lubbock, Texas, a home rule municipal corporation organized under the laws of
the State of Texas, acting by and through Lubbock Power & Light (the "Customer" or
"LP&L") and Southwestern Public Service Company (the "Company" or "SPS"), hereby
enter into this Second Amended and Restated Partial Requirements Power Service
Agreement Scheduling Protocol (the "Protocol") on the 25th day of January, 2022. This
Protocol supplements, forms part of, and is expressly subject to that certain Transaction
Agreement for the sale of Partial Requirements Power Service (the "PRPS" or "Agreement")
executed by the Parties on the 12`s day of November, 2009, which is on file with the Federal
Energy Regulatory Commission ("FERC" or "Commission") under the SPS designation Rate
Schedule No.138. Each of SPS and LP&L may be referred to individually herein as a "Party"
and, collectively, as the "Parties".
The initial level of energy and capacity that SPS will sell to LP&L pursuant to the PRPS shall
be 170 MW on June 1, 2019, and shall increase by one and a fifth percent (1.2%) each
succeeding June 1, through the term of the Agreement (the "Contract Quantity"). The PRPS
contains transaction scheduling provisions and terminology suited more toward operations
within a bilateral or Energy Imbalance Market design as the transaction agreement was entered
into prior to the inception of the Southwest Power Pool, Inc. ("SPP") Integrated Marketplace
("IM"). The purpose of this Protocol is to memorialize an understanding between LP&L and
SPS regarding Section 5 of the PRPS, "Scheduling", as well as resulting charges, given present
operations under the SPP IM. In the event of a conflict between this Protocol and the PRPS,
the PRPS shall prevail.
1) Term.
The procedures and processes established herein shall remain in effect until such time as
the PRPS terminates on its own or pursuant to that certain Settlement Agreement
between SPS and LP&L dated May 27, 2021, at which time this Protocol shall also
terminate, unless otherwise amended or terminated by mutual agreement of the Parties
at an earlier date.
2) Load Scheduling and Market Settlements in the SPP IM.
During the term of this Protocol, SPS will act as the Load Responsible Entity, as defined
in SPP's Open Access Transmission Tariff ("OATT"), for LP&L, and as the Market
Participant, as defined in the SPP OATT, bidding LP&L load into the SPP IM.
a) Resource Adequacy. LP&L will be responsible to provide, or procure as necessary,
sufficient capacity resources for SPS to meet the applicable SPP resource adequacy
and planning reserve obligations for the LP&L loads within SPP that exceed the
Contract Quantity delivered to LP&L by SPS pursuant to the PRPS. SPS will not have
any responsibility for any LP&L load located outside of SPP.
The PRPS provides LP&L with the Contract Quantity of capacity resources that can
be used to satisfy the SPP resource adequacy and planning reserve obligations for
LP&L loads within SPP. This capacity may be used by LP&L, in conjunction with
other generation LP&L or their agent registers in the SPP IM' and other third -party
agreements LP&L may secure in the future that would be recognized by SPP as a
capacity resource, to meet the SPP resource adequacy and planning reserve obligations
for the LP&L load served within SPP.
If LP&L or its agent has other generation or third -party purchased capacity resources
that are to be used by SPS to meet LP&L's must -offer requirement for its load in the
SPP IM, then LP&L or its agent must identify the asset for SPS, include and update
the data repository maintained by the SPP Market Monitoring Unit, as defined in the
SPP OATT, and take any other steps necessary so that these other LP&L capacity
resources can be used by SPS, as necessary, to meet the SPP IM must -offer
requirement. SPS will not be the Market Participant for LP&L's other generation or
for any other third -party purchased capacity resources.
b) Scheduling load in the SPP IM. SPS will be the SPP Market Participant for LP&L
and will bid LP&L load into the SPP IM as instructed by LP&L pursuant to the
Protocol. SPS will timely submit demand bids on behalf of LP&L into the SPP IM.
LP&L must provide hourly demand bid schedules to SPS two (2) hours prior to the
close of the SPP IM Day -Ahead ('DA") Market ("DA Market") on the last business
day prior to the operating day for the volume of energy it intends for SPS to bid into
the DA Market for the following day(s).2 If LP&L fails to do so, SPS will carry forward
the last demand bid schedule provided by LP&L and submit it to SPP for the next
day(s). LP&L may request that SPS adjust demand bid schedules already provided to
SPS up until two (2) hours prior to the close of the DA Market on the last calendar
day prior to the operating day and SPS will use commercially reasonable efforts to
make the adjustments for LP&L. SPS will confirm the adjusted demand bid schedule
volumes submitted to SPP for LP&L.
c) Charges for Load Scheduling and Market Settlements in the SPP IM. All verified
out-of-pocket costs reasonably incurred and paid by SPS to serve LP&L load in the SPP
IM, including, but not limited to, charges related to participation in the DA Market and
Real -Time ("R r) Market ("RT Market"), LP&L's pro-rata share of any SPP IM Ancillary
Service charges and administrative fees, and, unless otherwise specified herein, LP&L's
pro-rata share of any other charges and/or credits SPS incurs to serve LP&L's load in the
SPP IM, shall be passed through to and paid by LP&L to SPS unless incurred as a result
of SPS' negligence or willful misconduct.
(1) DA Market. SPS will charge LP&L for the volume cleared in the DA Market at a
rate equal to the volumes cleared for each hour of each operating day multiplied
by the DA Locational Marginal Price ("LMP") at the Delivery Point for the same
1 Any such generators must adhere to and comply with SPP requirements, including SPP Planning Criteria Accredited
Capability Test specifications.
2 Currendy this deadline shall be 7:30 AM Central Prevailing Time C CPT°) or 06:30 AM Mountain Prevailing Time C NII'T ).
2
hour. SPS will also pass through LP&L's
charges and/or credits specific to the DA
behalf, including but not limited to SPI
administrative fees.
pro-rata share of any other SPP IM
Market incurred by SPS on LP&L's
IM Ancillary Service charges and
(2) Real-time ("RT") Market, Any deviations between the DA cleared energy volumes
and the actual LP&L load for any period will be settled at the RT LMP. SPS will
pass along the applicable RT charges to LP&L at a rate equal to the difference
between the DA cleared load and the actual load for each period multiplied by the
RT LMP at the Delivery Point.
a. As an example, if LP&L scheduled 150 MWh of load that cleared for an hour
in the DA Market and the actual load for the period is 155 MWh, LP&L would
be required to pay SPS for 150 MWh at the DA LMP at the Delivery Point
and pay for 5 MWh at the RT LMP at the Delivery Point.
b. In another example, if LP&L scheduled 150 MWh of load that cleared for an
hour in the DA Market and the actual load for the period is 145 MWh, LP&L
would be required to pay SPS for 150 MWh at the DA LMP at the Delivery
Point and would get a credit from SPS for 5 MWh at the RT LMP at the
Delivery Point.
SPS will also pass through LP&L's pro-rata share of any other SPP IM charges
and/or credits specific to the RT Market incurred by SPS on LP&L's behalf,
including but not limited to SPP IM Ancillary Service charges and administrative
fees.
(3) Market Participant Services. LP&L shall pay SPS a fee of $12,000 per month for
SPS's labor costs associated with its role as the Load Responsible Entity and
Market Participant in the SPP IM on LP&L's behalf ("Market Participant
Charge").
(4) Settlement Statements. SPS will issue settlement statements to LP&L that include
the charges and/or credits applicable to SPS serving LP&L's load, including the
Market Participant Charge, as part of the billing process under the PRPS. Such
settlement statements willreflect interim and final SPP IM settlements consistent
with the updates described in the Wholesale Fuel Cost and Economic Purchased
Power Adjustment Clause, which is Attachment 2 of the PRPS. This Section
1(c)(3) shall survive beyond the termination of this Protocol to the extent
necessary to reflect final SPP IM settlements.
3) Partial Requirements Scheduling and Related Charges.
SPS's obligation to provide energy to LP&L shall be determined based on Bi-lateral
Schedules CBS") from SPS to LP&L and confirmed by the Parties.
LP&L may schedule any quantity of the Contract Quantity during a 24-hour period,
provided, however, that the smallest quantity scheduled by LP&L for any hour must be
3
no less than 50% of the largest quantity scheduled for any hour during that same twenty-
four hour period as a DA BS. LP&L may opt to utilize and schedule additional energy
either as DA or RT BS. The combination of BS schedules may not collectively exceed the
Contract Quantity for any hour.
a) PRPS Schedules.
(1) No later than the 22"d calendar day of each month SPS will provide LP&L a written
good faith estimate of its system average fuel costs for the following month.
(2) LP&L must inform SPS of its election to utilize a DA BS and its desired hourly
energy no later than two (2) hours prior to the close of the SPP DA Market on the
last calendar day prior to the operating day. Currently this deadline is 7:30 AM
Central Prevailing Time ("CPT") or 06:30 AM Mountain Prevailing Time
("MPT"). The DA BS volume may not be adjusted after the close of the SPP DA
Market without mutual agreement of the Parties.
(3) LP&L may submit a new RT BS energy schedule for any additional available energy
not previously scheduled as a DA BS under the Agreement by notifying SPS of its
additional desired hourly energy volume at least thirty (30) minutes prior to the
operating hour. These RT BS schedule changes are limited to three (3) updates
per twenty-four (24) hour operating day period. The RT BS volume may not be
adjusted after thirty (30) minutes prior to the start of the operating hour without
mutual agreement. The combined DA BS and RT BS scheduled volume may not
exceed the energy available to LP&L under the Agreement.
b) PRPS Charges.
Charges for energy scheduled under each BS shall be based on scheduled volumes at
the rates prescribed by the Agreement.
Because each BS is transacted outside the SPP IM and all LP&L load is separately
settled in the SPP IM, each BS shall be offset by a separate BS from LP&L to SPS
(each, an "Offsetting BS") and the charge for this Offsetting BS, payable from SPS to
LP&L, shall be calculated for each hour as follows:
(1) For a DA BS, the hourly volume scheduled and confirmed for the hour between
SPS and LP&L as a DA BS, multiplied by the DA LMP at the Delivery Point; and
(2) For a RT BS, the hourly volume scheduled and confirmed by the parties for the
hour between SPS and LP&L as a RT BS, multiplied by the DA LMP at the
Delivery Point.
As charges for each Offsetting BS are based on the DA LMP and RT LMP published
by SPP, such charges shall be subject to true -up if the relevant LMP is subsequently
revised by SPP.
0
4) Delivery Point.
For purposes of this Protocol, as long as SPS remains the SPP customer under the SPP Network
Integration Transmission Service Agreement ("NITSA") on behalf of LP&L for LP&L's load in
SPP, the Delivery Point shall be "SPS—SPS" or the commercial pricing node for SPS's network
load that contains LP&L's load.
If LP&L requests that the NITSA be reassigned from SPS to LP&L, SPS will work with SPP to
establish a generation Resource Hub representing SPS's portfolio of capacity resources, and the
Delivery Point shall become a new SPS generation Resource Hub in SPP for LP&L.
5) Meter Data.
Each Party will provide all meter data it has in its possession necessary to settle the energy sales
under the PRPS, as described further under this Protocol.
6) Congestion Rights.
As long as SPS remains the SPP customer under the SPP NITSA on behalf of LP&L, SPS will
allocate, by separate line item in monthly invoices, to LP&L its pro-rata share of SPS's total net
system Auction Revenue Rights ("ARR") and Transmission Congestion Rights ("TCR") charge
type settlement charges/credits from SPP. The pro-rata share of ARR/TCRs allocated to LP&L
will be based on the energy LP&L schedules under the PRPS divided by the SPS total net system
load during the same period. SPS will not allocate LP&L any ARR and TCR charge type settlement
charges/credits from SPP should the SPP NITSA be reassigned to LP&L.
For periods where SPS is not the SPP customer under the SPP NITSA on behalf of LP&L, no
amounts shall be credited to LP&L for ARRs/TCRs under this Protocol.
7) General.
All terms not otherwise defined herein shall have the meaning set out in the PRPS.
The services provided by the Parties to each other hereunder, and any agents thereto, will
be provided consistent with Good Utility Practice and applicable protocols, tariffs, and
business practices promulgated by SPP in furtherance of the SPP IM. Except as expressly
provided therein, nothing in this Protocol, amends, modifies, or replaces any provisions
of the PRPS (or any Service Schedule attached thereto).
This Protocol may be executed in multiple original counterparts and any counterpart
hereof having attached thereto the signatures of the Parties hereto (whether on one page
or on separate pages) shall be deemed a fully executed original.
Southwestern Public Service Company,
a New Mexico corporation
By:
John T Welch =. <»e„,.om., e.m
Name: John Welch
Title: Vice President, Commercial Operations
Xcel Energy Services Inc. as Agent for
Southwestern Public Service Company
The City of Lubbock, Texas, a home rule municipal corporation organized under the laws of
the State of Texas
CITY OF OCIC, TEXAS
DANIEL M. P PE, MAYOR
[signatures continued on nextpage]
ATTEST:
Qt6&'t'd A:::::
Rebe ca Garza, City Secret ry
APPROVED ASSTTOA CONTENT:
�_C/v� —
David McCalla, Director of Electric Utilities-LP&L
A PROVED AS TO FORM:
JOYy sw(h,F, enera Counsel-LP&L
Craig Enochs, Outside Legal Counsel
ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK, TEXAS
DAN ODOM, CHAIRMAN
ATT
/G, en Stafford, Board Secret
v
APPROVED AS TO CONTENT:
David McCalla, Director of Electric Utilities-LP&L
APPROVED AS FORIVI
Je ny SdW, General Counsel-LP&L
Craig Enochs, Outside Legal Counsel
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
�� C11/5L
David McCalla, Director of Electric Utilities-LP&L
A PROVED AS TO FORM:
J n y S th, ener Counsel-LP&L
/L6CWdl
Craig ffnochs, Outside Legal Counsel
ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK, TEXAS
DAN ODOM, CHAIRMAN
A
G en Stafford, Board Secre
APPROVED AS TO CONTENT:
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David McCalla, Director of Electric Utilities-LP&L
APPROVED AS FORK.
Je6y Srhid, General Counsel-LP&L
/L9co&
Craig tnochs, Outside Legal Counsel