HomeMy WebLinkAboutResolution - 3796 - Assignment - SWPSC To WTMPA - Purchased Power Agreement - 01_23_1992Prepared by City Legal Dept. for
Electric Dept.
Resolution No. 3796
January 23, 1992
Item #19
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Assignment
of the Purchased Power Agreement with Southwestern Public Service Company to
the West Texas Municipal Power Agency, attached herewith, which shall be
spread upon the minutes of the Council and as spread upon the minutes of
this Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 23rd
t
EST:
an tte oy , City Secreta
APPROVED AS TO CONTENT:
Carroll McDonald, Director o
Electric Utilities
APP VED AS TO FORM:
Maald I
G. Vandiver, First Assistant
City Attorney
ncv:dw
agenda-D#1/A-SPS.doc
day January , 1992.
. C. McMINiq, MAYOR
Resolution No. 3796
January 23, 1992
Item #19
ASSIGNMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
City of Lubbock, in consideration of the payment of $100.00,
the promise of West Texas Municipal Power Agency to receive power
from -Southwestern Public Service Company and to sell power to
City of Lubbock, and other good and valuable consideration, by
this instrument grants and conveys to West Texas Municipal Power
Agency all of its right, title, and interest in that certain
contract executed by Alan Henry, Mayor Pro Tem, on behalf of the
City of Lubbock and C. F. Mlinar, Vice President, on behalf of
Southwestern Public Service Company, on January 10, 1980, as
amended by letter agreement dated May 7, 1985, and as amended by
First Amendment to Agreement between the City of Lubbock, Texas,
and Southwestern Public Service Company, executed January 25,
1990, a copy of which is attached to this Assignment as Exhibit
1, except that City of Lubbock shall remain jointly liable along
with West Texas Municipal Power Agency for all amounts owed to
Southwestern Public Service Company pursuant to that certain
contract attached hereto as Exhibit 1.
City of Lubbock, in consideration of the payment of $100.00,
the promise of West Texas Municipal Power Agency to receive power
from Southwestern Public Service Company and to sell power to
City of Lubbock, and other good and valuable consideration, by
this Assignment grants and conveys to West Texas Municipal Power
Agency all of its right, title, and interest in and to any and
all sums of money now due or to become due to City of Lubbock
from Southwestern Public Service Company in the form of refunds
or any other form, under that certain contract dated January 10,
1980, as amended, a copy of which is attached to this Assignment
as Exhibit 1. City of Lubbock authorizes West Texas Municipal
Power Agency, at its own expense, to take all steps necessary to
collect such sums of money.
This Assignment is made subject to the following terms:
1. NO WARRANTY
City of Lubbock makes this Assignment without any
warranty of any sort, express, implied, or statutory. City of
Lubbock expressly disclaims any warranty of title or otherwise
and assigns to West Texas Municipal Power Agency only so much
right, title, or interest as City of Lubbock now has in the
contract assigned, a copy of which is attached as Exhibit 1.
2. INDEMNITIES
West Texas Municipal Power Agency agrees to indemnify
City of Lubbock for any liability to third parties arising out of
or in connection with the contract assigned, a copy of which is
attached to this Assignment as Exhibit 1. No indemnities of any
nature or kind run from City of Lubbock to West Texas Municipal
Power Agency in any connection with this Assignment.
Assignment
Page 2
3. BINDING AFFECT
This Assignment, and all of its terms and conditions,
are binding on City of Lubbock and its successors and assigns,
and on West Texas Municipal Power Agency and its successors and
assigns.
SIGNED AND DELIVERED this 23rd day of January, 1992.
CITY OF LUBBOCK
C
BY: z - �' -Z 1�
13. C. MCM NN, MAYOR
ST:
Ran tte Boyd, City Secreta y
A = TO CONTENT:
C
a
Carroll McDonald, Director of
Electric Utilities
ARREOVED AS TO FORM:
Do ald G. Vandiver, First Assistant
City Attorney
STATE OF TEXAS §
COUNTY OF LUBBOCK § J
This Assignment was acknowledged before me on the C�13
day of January 1992, by B. C. McMINN, Mayor of the City of
Lubbock. _
OLIVIA R.
NOTARY PUBLIC Notary Public in and for
[�
OVEARMthe State of Texas
Typed or Printed Name of Notary
DGV.dw
k-agrmt-D#4/A-SPS.doc
My Commission Expires:
Assignment
Page 3
ACCEPTANCE
West Texas Municipal Power Agency, in consideration of the interest assigned to it in
that certain Assignment attached to this instrument, accepts all of the right, title, and interest
in the rights and obligations of the City of Lubbock pursuant to that certain contract executed
by Southwestern Public Service Company and City of Lubbock on January 10, 1980, as
amended by letter agreement dated May 7, 1985, and as amended by First Amendment to
Agreement Between the City of Lubbock, Texas and Southwestern Public Service Company,
executed January 25, 1990, a copy of which is attached to the Assignment as Exhibit 1.
West Texas Municipal Power Agency agrees to assume and perform all of the duties of the
City of Lubbock pursuant to that contract. West Texas Municipal Power Agency further
agrees to indemnify and hold harmless City of Lubbock for any liability for performance or
non-performance of the duties and obligations assumed by West Texas Municipal Power
Agency hereby.
EXECUTED this Lrdday of January , 1992.
West Texas Municipal Power Agency
Box 2000
Lubbock, Texas 79457
BY:�
Wan Baker
President
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Acceptance was acknowledged before me on theP=day of January, 1992, by
Joan Baker, President of West Texas Municipal Power Agency.
� rji_.S
�
h0;tif' t';rvru5i.+t..; for Fez Signature
I'(p;res
NOVEMBER 30, 1993
Typed or printed name -Notary Public
In and for the State of Texas
My commission expires:
.us a.;.ee:�ent, -ade and entered into by and betaean rie C . Cr
: IWZi, a manic:;al cor-poration (hereinafter referred to as 'the
C1 V.1` ) mats.; SSAr.INiJit.�CC 11L13L1 C SLWIa* LCI•776MY, J i:Cw MCKlcO corporat�cn
(hereinafter referred to as "the Company"), is as follows:
1 iV—M=;S, both of the parties hereto m7i and operate facilities for the
generation and distribution of elec-zic power a.-d energy to the cors_.in;
public, arid.,
t•'uuMAZ;5, the Cty is desirous of securing an additional source of
electric power and ohergy, and;
k-=:Xv, a 230,CCO volt source of electric power and energy owned by
the Corpahy anb fac-, ities of the City are so located that they can be
ccn-*Cted by constructing a 230,000 volt trarsni.ssion line and a step -don
substation, and;
Wr�i.T�S, the parties hereto have determined that each of then can
realize substantial benefits through improved service to the City's customaxs
and the sale of electric power and wwxgy under the tens of this agreement;
Nat , 7.-ZRrnFM, for and in consideration of the premises and the
cave ants and agreements hereinafter set forth, the parties hereto agree as
f ollo.+s :
tCLZ I
nCILIMJxIZES TO BE PRLV=ZD
Section 1.1. The CmTpLry agrees to purchase and install an oil
cir=zt breaker and associated erupent sufficient to tap the 230,000 volt
bs of the Cc r&hy: s Clifford B. Janes Station (hereinafter called "tie
Station") located southeast of Lubbock, Texas, which oil circuit brea:Xer
associated equipment shall be muntained and operated by the Car:pany
d•.:: ing the term of this Agree, -..t and ark' *xtersions or renewals thereof.
7:: City hereby agrees to pay to the Carpany, within thirty (30) days of
the receipt by the City of an invoice therefor, all costs of the purchase,
i-s alla•:on, rainterance and repair of such oil circuit breaker and associated
e= _ — t eu inn, the term of tliis agrmnrnt or any extensions or rene.as
thereof. Upon te.-raination of this agreezra:.t, as herein provided, all
associated equipment shall becc re the ;rcperty of the C rpany without
f=--Ier carpensation to the City and further, the C=q any 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 tirme. S.houid
tie Ca -..any fail to exercise its option to purchase said oil cif it breice=
as herearAtcve provided, within thirty (30) days of the te-=Lnation of this
a iree.mnt, the City shall remove such oil circuit breaker from the prc-.:.ses
of the Corpany imrediately, leaving the premises of the Comp&-y in a good
s to to of repair.
Section 1.2. Tt* City will construct, at its sole a)gxme, a shielded
230,000 volt tra x=sion line of a type and design previously a;mroved ih
writing by the Carrpany fran the Station to the City's Holly Avenue Paver
Plant location and will provide a step -dawn substation fr= 23C,000 %wits
to the City's trans:mssion systan, together with control, switching and
protective equipment of a type and design previously approved in writing :y
the Ca-;mv y, rich will pewit the Company to deliver and the City to
receive electric pa+ar and one_-cy as provided for herein.
Section 1.3. The City agrees that it will istall all necessary
a; rasa:_- and equi7rrnt required by the Ccr.,u:y for the perfor:rrnce of r -s
sgree.e^.t and will at all ticks so maintain and operate such apoararm and
eR:pr..ent so as to avoid undue electrical disturbance to the C--n? .-.v's
systea.
Section 1.0. It is the intent Of the parties hereto that the instal-
:at_c:^s of the various equipent and lines descries in Sec-.irs l.l. , 1.2.
Lr4 1.3 a eve s All be c=-,leted by the day of , i9_
EXHIBIT ��'
;j L=— II
FE FING
:5octaon 2.1. The Casany will pra•ide, maintain and operate, at is
c:-%ise, metering c;uipnemt for proper indication of electric energy flan
to the Cit•1 and telersetering equipment for tsarmussion of metering signals
to the Ca=, ary's control center. The amounts of electric power and ene-Sy
supplied to the City in accordance with the term of this agree-nnt eaL::
be determined by the sretesing facilities as hereinabove described.
Section 2.2. +Setering eruipssent shall be tested by the Cr.-scow, in
accorda,ce with all amlicable standards published by the American National
standards institute. If any metes test requested by the City other than
t'sose tests no=ally per:orred by the Cava y discloses metering ec,=; &
to be re;istering outside acceptable limits of acc%,racy (21 above o: below
ca-4ALrison with caib:ated stanelarL's) , then the Canny shall bear the
eaxse of such tens; oche_ -wise, the expense of such tests shall be borne
by the City. Representatives of the City shall be afforded an opport-,rity
to be present at all tests.
Section 2.3. If any metering test discloses that a meter is in error
2r.1 more than plus or minus two per cent (+ or - 21) the account between the
parties hereto shall be adjusted by the Cctpany to correct for the full
percentage of inaccuracy. Such adjustment shall be made for a m xi:=
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 mea:mingless, all
electric energy delivered to the City during such period of time small be
deta-manevi by the Com-p,:ny from the best available data.
Section 2.4. The City shall have the right, at any time, to install
its own retering e=ui=v nt at its sole expense of a type and design pre-
viously aTroved in writing by the Crrpa^y for the pz pose of checking the
meters i.^stalled by the C=:,-A.7y.
A7. zS AID T E70 S
Section 3.1. Electric poser and energy supplied to the City ;P,:--sua_m
to this acreannt shall be supplied, during the te_^n of this agrewmt, in
nccr=dance with the te_--rs azd conditions a--?- at rates set forth in Service
Sche°_les A, B and C (attacxd to this agreement), however, nothing contained
herein shall be construed as affecting in any way the right of any party
fur.as'zing or receiving service under these rate schedules to unilaterally
ntXe art^; lication to the Federal —r-ergy Fegulatory C=, ussion or other
covezn.rn al body having jurisdiction for a change in rates, ml=ges,
cLssification, 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 Co=dssion's rules and regulations praaul,gated there -=der.
Shcald any such changes be rade, the parties hereto agree to inplerlent such
changes, as ordered or directed, without the necessity of further agree -runt
beween the parties.
ARTICLE IV
FM IC=CtN CF ME
Section 4.1. Electric energy supplied by the Conpany in accordance
with the terra of this agrr_-eat shall not be used by the City is con.j=c-
tion with any other scarce of electric energy other- than the City's, wit5c_t
t::o (2) years prior :itten notice to the Cc. —,any, except that if electric
energy sup?Lied by the Coma-y should fail or be int_--mpted and if the
City's system is (and during such t:Lre period ra-ai3) electrically isolated
fr= ttie Cots-lry's system, the City may, d=irg such period of isolation,
use any other source of electric energy without such notice.
s
;JM CI.E V
DZLIVF;' POINT
Section 5.1. The delivery point (herei.-a:ter called "(!ehve_^f post")
of electric parer and energy provided for hereunder shall be the point
where the Ca=ny's facilities connect to the City's facilities, as shown
on Exhibit 1 to this agreement.
= G':.8 VI
CC1-1•=CAT1= E+? pl---VT
section 6.1. The City hereby agrees to furnish all necessary com-=n-
iwtiom:s cquipmcnt, and agrees to have on duty, at all times, saffic:ent
personnel so that voice arrmuiication can be established between the City
and the C=aany's control center located at Amarillo, Texas, for the sc,edul-
iry and dispatching of electric energy flaw 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 flan 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 parer and merry shall be
acccmlished with the least interference with the respective systems of
each pr-ty- During the term of this agree,mnt, or any exte.^sim thereof,
t^e Cerpany 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 rayuire the operation by the Company of generating equipment not
nor ally operated by it.
ARTICLE VIII
BILLING AND PAY*'=rT
section 8.1. As soon as practicable, monthly, after any meter reaainq
date, the Company will render to the City a statesient showing the total
a.-c-ints due to the Ccr..any for the electric power and energy su-,?lied to
the City in accordance with this agreement. All statements for electric
parer and energy supplied to the City in accordance with the terns hereof
shall be due and payable to the Company at the Ca7pany's office at Amarillo,
Texas on the loth day following receipt Of such statenent by the City.
ARTI CI.E IX
=EI 1CFI=CN
section 9.1. Electric power and energy supplied in accordance with
the te_-ms 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 to City. The City hereby agrees to
inde mfy and hold the Company harmless from any and all liability, loss,
damages for injury to persons, including death, and all dsrages to or
destruction of props ty arising out of the tra.-isactions conte:=lated hereby
which are determined to have been caused by the sole negligence of the
offices, 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 ell damages to or
destruction of property arising out of the transactions contemplated
hereby %.'high are dete-^tined to have been caused by the sole negligence of
the officers, agents, or employees of the C.—Tpany. Should avmy tribunal of
carpetent jurisdiction, by final decree, fi.-d tat such liability, loss,
damages for injury to persons, including death, and damages to or dest-uo-
tion of property arising out of the tsassacticrs oontz=lated 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 a.plicable laws of car-
parative negligence.
m
AM Cc X
FOR= t•;r..,ELRZ
Section 10.1. If by reason of force rajeure either party hereto is
u able totally or in part to carry out its agre�.t on its part herein
contai .ed, such party shall not be deemed in default daring the oont:ruance
of such inability.
section 10.2. The term force irajeure as used herein shall near the
following: acts of God, strikes, lock -outs or other industrial &st:rt&:.ces,
acts of public entities, orders, acts or laws of any gove_-=ftntal aut-crity
or aril, of their subdivisions, depart -rants, agercies, or officials, car any
civil or military authority, fuel interr.?tions, insurrections, riots,
epide7des, la dsUdes, lightning, eart %p ake, fire, hurricanes, storms,
floms, washouts, droughts, arm -rests, restraint of govex=Tent and pecrle,
civil distutbances, ermlosions, breakage or accident to rachinery, i- ans-
Mission pipes or canals or lines, partial or entire failure of utilities or
any other cause or e-lent not reasonably within the control of parties
hereto. The parties agree, however, to remedy, with all reasonable dispatch,
the cause or causes preventing the respective pasties from carrying out
their agreements, provided, that settlement of strikes, lockets and other
industrial disturbances shall be entirely within the discretion of the
respective parties, and they shall not be required to make settlemeahts of
strikes, lock -outs and other industrial disturbances by acceding to the
demands of the opposing party or parties when such course is, in the judg-
'rent cf such party, unfavorable to that party.
ARTI = XI
MR42IATICN BY DUAMT
Section 11.1. 77he failure of either party hereto to cca.ply with all
of the tex rs and conditions of this agreerrr:t shall place such defaulting
party in broar-h of this agromeat and upon the happening of such event, the
non -defaulting party shall have the option to terminate this agree-••nent as
herein provided. Upon diszovering said default, the non -defaulting party
shall give written notice to the defaulting party that such Lreach be cured
within ;tarty (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 ray terminate this
agreeme.nt by a subsequent written notice to the defaulting party and t: s
acreen-m--t shall be deemed ter -minted uxan receipt by the defaulting party
of suc. subsequent notice. These default provisions shall not preclude
eit`.er party hereto from any remedy or remedies prescribed by law for a-T
breach of this agreement.
ARTICLE XII
TEFM
Section 12.1. This agreement shall bec*me effective as of the date of
the a\e--ution hereof by both parties and shall continue, subject to the
rights of termination set out above, for a period of tan (10) years from
and after the first delivery of electric energy by the Corxny to the City
in accordance with the terms hereof. After such initial tar► year term,
this agreement shall continue from year to year thereafter subject to
to m nation by either pasty hereto by written notice of intention to ter71-
rate to the other party at least too (2) years prior to such inter
termination.
ARTICU )an
riser m' c
Section 13.1. T7m City hereby agrees to keep log sheets and other
records as gay be needed to afford a history of the r=,:nts of electric
emrgy involved in the transaction hereunder. T * originals of aL seen
records shall be open to inspections by representatives of the Ca-sxny at
all reasonable tiers.
with respect to a default under this ac;re=rrent, or with .espect to arn,
ct.' ratter arising in connection with this agrecrrent, shall not be
dee-Ted a waiver with respect to any subsegL=t default or natter.
l`..�.►: �� 1'1 7 ova.: � �,�.,,..,,�..♦ .oval � 1 1 qi Mlv rl.l <.,. �: ti,s ,r'M1�a � r�1
herein are conditioned upon the valid orders of and the granting of aaproval
and authorisation by any .==cession or re;ulatcry body, having jurisdiction
or whose approval or authorization ray 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.S. The C= any does not guarantee that the supply of
electric parer and energy in accordance with the texas hereof will be free
fr=r to mrary interruptions and it is hereby agreed by the parties hereto
that temporary interruptions of the Carpany's service hereunder shall not
constitute a breach of this contract on the part of the Ccapany. In the.
event of terorary interruptions to service, the C=;u rry will restore
service as soon as it can reasonably do so, and will at all times 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
Cck=ty, Texas and all payments due to the Carrany 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.
E?=7= =S • 10th day of January , 19 80.
Ar=T:
L •elyn G:`:ga / '
City Secretary-Treasur
APP = AS TO CCL\�T:
CITY W ILBB=, MAS
A Municipal Corporation
BY / i' _ Y'r'•
Alan Henry, tayorr iem
APPRDVt= AS To FORM:
Ca_^011 N:cJonalc David W. Reagay
Director of Electric Utilities Assistant City to=ey
Sales an: Service
;,MST:
SCLT r^m5TmN n-=C Szmczz MIPAW,
A New tAxico Corporation
Vice President
�l
r�
07 :Z XAS S
S
CCL:TI OF I4mzCC: S
3'"O,L ME, the undersigned aj%hority,,in and for said County, Texas, on this
coy personally a.peared
to ne to be the person and officer whose :yam is su:sc:ibed to tie foregoing,
st--zre-nt and acknzwledged to me that the sae was the act of the said CI.Y CIF
L. MBOC,, TEXAS, a municipal corroraticn, and that he executed the sam as the act
of such corporation for the purposes and consideration therein expressed, and in
tme ca;acity therein stated.
G'VLN =ER MY HAM A%D SZ;L Or' OFFICE, This 1 • day Of ,
l:otary Public, I:sbbock County, Texas
my aaanission exrires -
Try STA;Z; OF TEXAS S
S
COUM Y OF POTTER S
EL7OR: r=, the undersigned authority, in. W for• said County, Texas, on this
dry personally appeared 0 , .�. �;1-P1„seriJ 7"/. . -i c rL�s r�
p_•v-n to me to be the arson and officer whose rare i-s subscribed to the foregoing
irstr--7r-nt a--v-4 acknowledged to me that the sa.-e was the act of the said SCB.:r'ns"S. TER:J
PL IZC SZ7ZJICE CO~TAM, a New Mexico corporation, and that he executed the sa.Te as
t-ie act of such corporation for the purposes and consideration therein expressed,
and in the capacity therein stated.
G..'=: LMER 2•i•Y h�9O ANn SEAL OF OFFICE, This day of ,aeg!_
A.D. , 19?; .
Notary P=lic, Potter Carat., Texas
my car. -mission expires !30. FIBC
-6-
SERVICE SC=ME 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 context or use indicates another
or different meaning or intent.
Section A-1.1 The term "firm power" as that term is used herein shall
mean that quantity 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" as that term is used herein
shall mean the quantity of firm power, expressed in kilowatts designated as
provided in Section A-2.1. hereof and subject to the provisions of Sections
A-4.1. and A-4.2. hereof.
ARTICLE A-2
Designations of Quantities of Firm Power
Section A-2.1. On execution of the Agreement to which this schedule is
attached, the City shall submit to the Company, in writing, the City's firm
power demand for the first twelve (12) months of delivery of electric power
and energy to the City by the Company. Upon acceptance, in writing, by the
Company to the effect that the City's firm power demand for the first twelve
months of delivery is satisfactory to the Company, such quantities of electric
power shall be 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 succeed-
ing 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 desig-
nated as firm power for the applicable period.
ARTICLE A-3
RATES FOR FIRM PO;gU
Section A-3.1. During the term of this Agreement or any extensions or
renewals thereof, and subject to change as hereinafter provided, the City
hereby agrees to pay Company for firs power at the following monthly rates:
$3,555 per month for the first 500 kw of firm power, or
less, of billing demand, plus
$6.97 per kw per month of firm power for all additional
billing demand, plus
1.02 cents per kwh for all energy delivered hereunder.
The above rate shall be effective with rendition of initial service and
shall remain in effect subject to refund under the final order of the Federal
Energy Regulatory Comission in Docket No. ER 80-573.
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 bass
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. The loss adjustment to the point of
sale is 4.4%. The energy charge adjustment will be calculated in compliance
with the formula and conditions set forth in Section 35.14 of the Regulations
under the Federal Power Act (Title 18, Part I, Subchapter 8 of the Code of
Federal Regulations).
Section A-3.3. Billings under this Schedule ay be increased by an
amount equal to the sum of the taxes payable under federal, state sad local
sales tax acts, and all of the additional taxes, fees, or charges, (exclusive
of ad valorem, state and federal income taxes) payable by the 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 on any
object or event incidental to the rendition of the service, as the result of
any new or amended laws after September 1, 1978.
ARTICLE A-4
BILLING DEMAND ADJUSTMENTS
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 of firm power designated by the City (as a result of force ajeure) or in
the event City is unable to receive the quantities of firm power previously
designated by the City (as a result of force majeure), billing demand shall be
adjusted downward to the maximum power actually supplied, such downward adjust=
sent to be effective from the date Company is so unable to furnish such quanti-
ties of firm power or from the date City is so unable to receive such quanti-
ties 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 exceed-
ing the billing demand (hereinafter called excess billing demand) and Company
provides such quantities, the billing demand shall be adjusted by the Company
upward by the amount of such increase, which adjustment shall be effective
from 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's cost, including
incremental losses resulting from the transaction, plus one (1) mill per kwh,
if the Company must purchase power 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 be billed 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 service" as that term is used herein
shall mean electric power and energy (other than electric power and energy
supplied under Schedules A and C hereto) supplied by the Company to the City
under unexpected emergency conditions beyond the control of the City where the
City is temporarily unable to obtain needed electric power and energy from
other sources normally available to it.
ARTICLE B-2
AVAILABILITY OF MIERGENCY SERVICE
Section 1-2.1. When the City, in an emergency, shall require emergency
service from the Company, the City shall contact the Company requesting such
emergency service. The Company shall then furnish the requested emergency
service from any available source to the extent that, in the judgment of the
Company, the providing of such emergency service will not impair or jeopardize
other service in the system of the Company.
ARTICLE B-3
RATES FOR E ZRGZNCY SERVICE
Section B-3.1. For emergency service provided for in this Schedule, the
City shall compensate the Company monthly at the following rates:
(a) If provided from the Company's system, the greater of
4.000 cents per kwh, or the Company's cost of fuel for generat-
ing such energy, including start up costs, if any, plus S ails
per kilowatt hour.
(b) Procurement cost in mills per kwh, including incremental
losses resulting from the transaction, plus one (1) mill per
kwh if emergency power is obtained from sources outside of
Company's own system.
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, (exclusive
of ad valorem, state and federal income taxes) payable by the Company and
levied or assessed by any governmental authority on the Company's services
rendered, or on the right or privilege of rendering the service, or on any
object or event incidental to the rendition of the service, as the result of
any new or amended laws after September 1, 1973.
SMICE SCIED= C
to Ngr oarent bcZween the City of Lub =? , Texas
am) ;outhwcstarn PuLlic: Service Company
ARTICL C-1
D=TICM
In addition to the Words and terms defined in the Agreement to wtict this
Schedule is attached, the following worn and tee as used in this Sched.le,
shall have the following meanings unless the context or use indicates a.-rrther
or different meaning or intent.
Section C-1.1. The term "non -firm energy" as that tern is used herein shall
mean electric energy which the Carmany can produce and deliver (oche: thth that
electric energy described in Schedules A and B hereto) at a cost below t`at at
Which the City can generate at its own generates in operation at the time of
purchase, and which the Car;Any is willing and able to sell in the Car..ar:y's
sole discretion, and the City is willing and able to purchase.
ARTICLE C-2
AVAILABILITY OF NW -FIRM ENMW
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 nosh -firm energy and
the Ccr;w y is willing and able to sell such r -firm energy, the pa --ties may
effect such purchase and sale by ve--bal agreement through the Company's control
center at Amarillo, Texas in accordance with the provisions hereof. The Cenpnny
here ty reserves the right at any time during such purchase of non-firn wmrM, by
the City to discontinue same for any reason. If an emergency should ooa:r on the
City's systcn during the purchase of any non -firm energy, all energy purchased in
excess of firm power shall be raid for in accordance with the terns and conc:ticns
of Service Schedule B to this Agreament.
Section C-2.2. During any month in which the Ccrpany sells non-fi= annoy
to the City, the City shall make available such records as are necessary to
establish that it had ccnc L=&ntly available, at the time of any non-!i= ere -may
pxchase, alter-nate dependable capacity that could have otherwise been used to
prod -ice or f•,=z'.sh a :uivalent ch=tities of energy.
ARTICLE C-3
RAMS FOR NM -FM, E2rc'F. tY
Sectior. C-3.1. During the term of this Agreement or any extensions or renewals
thereof, and subject to change as hereinafter r_ovided, the City hereby agrees to
pay to the Ca -Tart' for non-fi= energy the following rate:
Rau a 3 + A-B
7
Where A equals the City's anticipated inee'nental production costs per kw.h di--ing
the transaction and B equals the Ca=_ a,ny's anticipated increnental production and
delivery costs per kwh d the transaction. Incremental costs shall mean the
the lwh involved in the transaction.
costs to each respective party to produce
•L ill M V MA111 toll';
N
d
a
E» 7.
r;
�d
u E
00
A u
A
a a
.a u
w p
0
a
>1 Ln
"I u
F+u-A
H .-1
ND a A
W e0,
a a
3 4�
N M
a a
A �
Nv
9 a
a O
E. In
rJ
aV
H c
ul d
R
O
N
Y S.r. S Co.
CITY OF LUBBOCK
51�uh�lcslcln 1'I/ll/.lC�l'111'1(7: ('.011Ism Y
EX►IIDIT • I.
230KV SERVICE-CIfY Of L111111or.1!
Intlre; PI PIIT /'1111
FIRST AME"MENT TO AGREEMENT
39TWtEN THE CITY Of LUBBOCK, TEXAS AND
SOUTKWESTERN PUBLIC SERVICE COMPANY
This amendment revises the agreement between the City of Lubbock, Texas, a
municipal corporation (hereinafter referred to as "the City") and Southwestern
Public Service Company, a Nov Mexico corporation (hereinafter referred to as
"the Company") executed the loth day of January, 1960. as amended by letter
agreement dated May 7, 1985.
The agreement is amended as folloves
1: Article 111, Section 12.1 is replaced in its entirety with the
following articles
" ARTICLE III
TLIX
Section 12.1. This agreement shall remain effective, subject to
' the rights of termination set out above, through December 31, 2004.
After December 31, 2004. this agreement shall continue frost year to
year thereafter, subject to termination by either party hereto by
written notice of intention to terminate to the other party at least
five (5) years prior to such intended tormination."
2. A new Section 13.7 is incorporated into Article ZIII of the agreement
as folloves
"Section 13.7. Because the parties to this Agreement have
relied upon the unique skills and character of the other party,
neither party shall assign this agreement or any portion of this
agreement without the written consent of the other party, which
consent will not be unreasonably withhold. The letters attached to
this first Amendment reflect the intent of the City to assign this
Agreement to the Vast Texas Municipal lover Agency and the intent of
the Company to consent to- the assignment as reflected by the request.*
This amendment shall become effective on the date approved by the federal
Enargy Regulatory Commission.
LXECUTED this 25th day of January 19".
CITY Of LUBBOCK, TEXAS
B'
y=
M INN
Title:MAXOR
SOUTHWESTERN PUBLIC SERVICE COMPANY
By. -
Titles
Et'd "kn 69011VL908 90:60 06, 0E WWZ
[Proposed letter from City of Lubbock to
Southwestern Public Service Companyl
Southwestern Public Service Company
P.O. Box 1261
Amarillo, TX 79170
Attention: Gary L. Gibson
Vice President, Marketing
Gentlemen:
The City of Lubbock desires to assign to West Texas Munici-
pal Power Agency the electric service agreement between the City
of Lubbock, Texas, and Southwestern Public Service Company, ex-
ecuted January 10, 1980, as amended by letter agreement dated May
70 198S, and by a first amendment executed December �,, loss
(the "Agreement"). Pursuant to Section 13.7 of the Agreement, we
would appreciate receiving your written consent to the assign-
ment. We will, of course, remain liable for the obligations of
the purchaser of power and energy under the Agreement. In addi-
tion, we will cause to be instituted a declaratory judgment
action in the State of Texas for the purpose of obtaining a judt-
ment that the west Texas Municipal Power Agency may lawfully
receive, undertake and perform the rights and obligations which
the City of Lubbock has under the Agreement. We will provide you
with a copy of the assignment and a'copy of the judgment in the
declaratory judgment action.
Tours very truly,
CITY OF LUBB= r TEXAS
By
Mayor
-kn 690TTb19W L0:60 06, 0E Wr
V1*d
(Proposed letter from Southwastarn Public Service Company
to the City of Lubbock)
City of Lubbock, Texas
P.O. Box
Lubbock, TX
Attention:
Mayor
6entlament
We have received your letter dated re-
questing our written consent to your assigning to west Texas
Municipal Power Agency the Agreement referred to in your letter,
we agree to the assignment subject to the conditions contained Ln
your letter.
St'd
Yours very truly,
SOUTHWESTERN PUBLIC SERVICE COMPANY
by
Gary L. Gibson
Vice president, marketing
-� 6�ettdi�e ee:se es, eE +err