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HomeMy WebLinkAboutResolution - 4900 - LP&L & SPSC Rate Change, Statements Of Intenet - 07_13_1995Resolution No. 4900 July 13, 1995 Item No. 41 A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF LUBBOCK, SITTING AS A REGULATORY AUTHORITY UNDER VERNON'S ANN.CIV.ST., ART. 1446c, AND AS THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS, AS TO RATE CHANGE APPLICATION BY LUBBOCK POWER AND LIGHT AND WATER AND A RATE CHANGE APPLICATION BY SOUTHWESTERN PUBLIC SERVICE COMPANY. WHEREAS, Lubbock Power and Light and Water filed a Statement of Intent for Approval of Experimental Interruptible Industrial Service and Experimental Off -Peak Scheduled Interruptible Service; and WHEREAS, Southwestern Public Service Company filed a Statement of Intent for Approval of Experimental Interruptible Industrial Service and Experimental Off -Peak Scheduled Interruptible Service on the day of June 7, 1995; and WHEREAS, the proposed tariffs will make Southwestern Public Service's industrial interruptible services available within the City on the same basis that they are currently approved by the Public Utility Commission of Texas for areas outside the City; and WHEREAS, the proposed tariffs do not constitute a major rate proceeding requiring a public hearing pursuant to Vernon's Ann.Civ.St., Art. 1446c, Sec. 43(b); and WHEREAS, good cause for immediate implementation of such reduced rates has been shown by Lubbock Power and Light and Water and by Southwestern Public Service Company; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT pursuant to Vernon's Ann.Civ.St., Art. 1446c, Sec. 43(b), Lubbock Power and Light and Water and Southwestern Public Service Company shall be entitled to immediately place into effect such proposed rate change which Statements of Intent are attached hereto as Exhibit "A" and Exhibit `B" respectively. ACCEPTED by the City Council July , 1995. ATTEST: LrL— AK C—Iy—Z�ftj Betty M. Johnson, Cify Secretary APPROVED AS TO CONTENT: !I"- 1��� - Mark Hindman, Director of Support Services APPROVED AS TO FORM: D ald G. Vandiver, First Assistant City Attorney dp:ccdocs\ratechng.res June 20, 1995 0 LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 EXPERIMENTAL OFF-PEAK SCHEDULED INTERRUPTIBLE SERVICE TARIFF 3.2 Page 1 of 2 APPLICABLE: To Transmission voltage level customers in Lubbock under contract where facilities of adequate capacity and suitable voltage of 69 kV or higher are adjacent to the premises to be served. This Rate is available to customers having scheduled interruptible capacity of 4,000 kW or more. Not applicable to temporary, breakdown, standby, supplementary, resale or shared service. MONTHLY RATE: Customer Charge: If taken in addition to firm service If not taken in addition to firm service $50 $639 Energy Charge: $.01 per kWh for all kWh used per month under this Rate Schedule. CONTRACT PERIOD: The minimum contract period shall be for four years. MINIMUM CHARGE: Customer's base rate charges in a calendar year shall not be Was than the above base rate times the contract scheduled demand times 1,750 hours. CHARACTER OF SERVICE: Three phase, 60 hertz, nominally 69 kV or above. LINE EXTENSIONS: All costs of equipment, supplies, and labor related to the Installation of facilities necessary to make service available from existing facilities shall be paid by the customer in advance. No transformation will be make by LP&L at the point of service. LOSS ADJUSTMENT: The meter readings used for billing shall be increased to Include all transformation losses when metering is installed on the secondary side of less than 69 kV of any voltage transformation make on the customer's side of the point of service. FUEL COST RECOVERY: The charge per kilowatt-hour of the above rate shall be increased by the applicable fuel cost recovery factor per kilowatt-hour as provided in PUCT Sheet IV-69. 0 LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 2of2 TERMS OF PAYMENT: 5 percent added to bill after 22 days. If the twenty second day falls on a holiday or weekend, the due date will be the next work day. DETERMINATION OF DEMAND: In the event that both firm and scheduled service are measured through the same electric meter, then the firm demand shall be established by Agreement and the Scheduled Demand shall be the difference between the firm demand and the total demand as determined from LP&L's demand meter for the 30-minute period of customer's greatest kW use during the month. DETERMINATION OF ENERGY: The energy served hereunder will be divided between Interruptible service and firm service utilizing the ratio each demand of firm demand and interruptible demand is to the total demand. SPECIAL CONDITIONS: Customer shall be capable of scheduling its electric consumption only during off-peak hours in the months of June, July, and August and the first two weeks of September (the "Summer Peak Season"). Peak hours shall Include the hours from 12:00 noon to 10:00 p.m. on weekdays and Saturdays, exclusive of City holidays (Fourth of July holiday and Labor Day holiday). Off-peak hours shall include all hours of the week not defined as peak hours. Customer shall not schedule consumption under this rider during Summer Peak Season peak hours (the "restricted peak hours") unless Customer has received permission from LP&L's System Control Offices that operation during peak hours is acceptable ("unrestricted peak hours"). LP&L may, at its sole discretion, require Customer to install interruptible devices on Customer's consuming facilities to ensure that Customer's loads are off during restricted peak extension facilities. LP&L may activate the interrupting devices during the restricted peak hour periods or for any electrical emergency throughout the entire year. LP&L may also, at its sole discretion, require Customer to install under -frequency relays as a part of Customer's associated line extension facilities. BUY THROUGH PROVISION: In the event LP&L has not granted permission for Customer to schedule consumption during peak hours, however, in any year that Customer elects to buy through restricted peak hours, Customer's total consumption for that calendar year shall be billed solely in accordance with the applicable large general service rate sheet. NON-COMPLIANCE PENALTY: It is determined at any time by LP&L that Customer Is not in timely compliance with the provisions of this rate, Customer will be immediately billed on the rate schedule for firm power for the period since service was commenced under this rate. LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 1 of 7 EXPERIMENTAL INDUSTRIAL INTERRUPTIBLE RATE RIDER TARIFF NUMBER 3.1 AVAILABILITY: Service under this Rider is available at the sole discretion of LP&L and only when LP&L has available capacity in excess of the firm system requirement and if such service will not in any way impair LP&L's ability to serve the requirements of its firm retail customers. This Rider is available under contract to customers having a total Interruptible demand of at least 1,000 kW during June, July, August, and September and whose facilities are equipped with appropriate telemetering and control equipment to permit Customer to comply with, or LP&L to implement curtailment requests. Service under this Rider is available when taken in conjunction with firm service under the large general service rate schedules. Supplementary Power Service under this Rider is available to Oft and other power production facilities under specific contracts on a case -by -case basis. MONTHLY RATE: Service Voltage 115 kV *Distribution 69kV and above Customer Charge: If Taken in addition $ 50 $ 50 $ 50 to firm service If not taken in add- $ 200 $ 639 $ 639 ition to firm service Demand Charge (per kW of Interruptible Demand): Instantaneous - $ 6.55 $ 3.55 $ 3.40 Two hour notice - $ 7.45 $ 4.43 $ 4.28 Energy Charge: per kWh used per month $ .0031 $ .0025 $ .0025 *The primary service discount that is applicable to the tariff to which this rider is appended is also applicable to the distribution level service. 11%-Cir LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 2 of 7 DEFINITIONS: Instantaneous interruptible service is service that can be interrupted without notice by means of underfrequency relays when the system frequency declines to 59.6 hertz or through telemetering and control equipment at the control and discretion of LP&L. Noticed interruptible service is interruptible load that shall be interrupted by the Customer or LP&L upon expiration of two hours (120 minutes) after notice was transmitted to the Customer that an interruption will occur. DETERMINATION OF DEMAND AND ENERGY: To be determined in accordance with the tariff to which this rider is appended. In the event that both firm and Interruptible service are measured through the same electric meter, then the firm demand shall be established by Agreement and the interruptible demand shall be the remainder of the measured demand. The firm demand so established may be modified by the customer, subject to review and approval by LP&L, to reflect changes in the customer's firm bad due to normal bad growth or bad reductions. When this Rider is attached to the large general service -transmission tariff, the total billing demand shall be the sum of the interruptible demand and the firm demand, or 7,500 kW whichever is greater. In the event the sum of the Interruptible demand and firm demand is less than 7,500 kW, the minimum demand charge shall be calculated as follows: 7,500 kW shall be prorated to the firm and Interruptible demands. Such prorated demands shall be billed according to the appropriate firm and interruptible demand charges, plus $589 fior the firm demand customer charge plus $50 for the interruptible service. When this Rider is attached to the large general service -distribution tariff, the energy served hereunder will be divided between interruptible service and firm service utilizing the ratio each demand of firm demand and interruptible demand Is to the total demand. The demand recorded fior the 124mur period following restoration of service subsequent to interruptions provided fior under this Rider shall not be used in the calculation of total billing demand. LIMITATIONS ON INTERRUPTIONS: Interruptions under this Rider are limited as follows: Daily Limit: No more than two curtailments per calendar day of up to a total of 12 hours, measured from midnight to midnight, except in system emergencies, as described below. Annual Limit: No more than 200 hours in any calendar year. *1le LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 3 of 7 Interruptions lasting for any fraction of an hour shall be credited for one full hour toward the annual limit. LP&L reserves the right to perform test interruptions, in which the duration of the Interruption will not exceed one hour. In the event that either customer has failed to comply with previous interruptions or actual interruptions have not occurred in the prior 12 months which includes the current billing month, LP&L reserves the right to perform test interruptions, In which the duration of the interruption will not exceed one hour. Interruption time is measured from the time Customer's bad is interrupted to the lesser of, (a) LP&L restores service to the bad, or (b) LP&L's facilities are capable of restoring service to the bad whether or not customer's facilities are capable of receiving service, or (c) LP&L has given permission to Customer to restore service to its bad, whichever is less. During system emergencies or when LP&L has made public pleas to restrict electric energy usage to essential needs because of an area or power pool shortage of electric power and/or energy, interruptible bads served under this Rider may be interrupted continuously without daily limit until such emergency condition has ended. The only interruptions credited toward interruption time limits are those implemented by Customer at the request of LP&L or those initiated by activation of control equipment by LP&L, and time resulting from the operation of underfrequency relays installed in connection with instantaneous interruptible service. FUEL COST RECOVERY: The charge per kilowatt-hour of the above rate shall be Increased by the applicable fuel cost recovery factor per kibwatthour as provided in PUCT Sheet IV-69. TERMS OF PAYMENT: 6 percent added to bill after 22 days. If the twenty second day falls on a holklay or weekend, the due date will be the next work day. 1,%-- :7 LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 4 of 7 GENERAL CONDITIONS: Customer understands that failure to interrupt service when requested threatens the reliability of service to other customers. LP&L may make intentional Interruptions, up to the Annual Limit, at any time and from time to time, at LP&L's sole discretion. LP&L will attempt to provide as much prior notice as possible prior to interruptions. Intentional interruptions may be made at any time, in the Judgment of LP&L, when demands for electricity exceeds or are expected to be likely to exceed LP&L's available electric supply for whatever reasons including, but not limited to, breakdown of generating units, transmission equipment or other critical facilities; short or long-term shortages of fuel or generation, transmission, and other facilities; and requirement or orders of governmental agencies. CONDITIONS OF SERVICE: Customer desiring instantaneous interruptible service is required to install, own, operate and maintain necessary monitoring devices and interruption -control equipment including protective devices, on Customer's side of the point of delivery, as reasonably specified by LP&L. In addition, LP&L shall install Interruption -control equipment on LP&L's side of point of delivery as reasonably determined necessary by LP&L to interrupt the interruptible load. All Interruption -control equipment shall be under the exclusive control of LP&L, and the installation and maintenance of such facilities shall be at the expense of Customer. Interruption -control equipment consists of but Is not limited to, under - frequency relays, switchgear, remote control and communications equipment Including a communications path, timers, trip counters, and/or other devices as specified by LP&L. Remote control and oommunicatk ns equipment includes equipment necessary to provide instantaneous bad information to LP&L's designated system operating centers. Operation of the equipment will remain under the control of LP&L and LP&L reserves the right to inspect and test all Interruption -control equipment and may review Customers' maintenance records. Customer desiring noticed interruptible service is required to install, own, operate and maintain communications equipment as reasonably specified by LP&L to permit timely notification of impending and actual curtailments. At any time when Noticed Interruption Is requested, if Customer fails to reduce his load to zero, or in the event that this Rider Is attached to the large general service tariffs and Customer fails to reduce his load to the Firm demand established by Agreement, LP&L, may, at its sole discretion, discontinue delivery of any or all power to Customer. LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 5 of 7 NON-COMPLIANCE PENALTY: The Demand Penalty Charge for non-compliance with the requested interruption of service under this tariff is 150% of the difference between the demand charge per KW of interruptible demand and the demand charge per KW for firm demand for the portion of interruptible load that Customer failed to interrupt, but in no event shall the total of the Demand Penalty Charge and rider demand charge exceed what Customer's cost would have been if all the contracted interruptible load had been taken at firm demand during the period the penalty is applied to. For the first occurrence of non-compliance: In the month of non- compliance, Customer is billed the Demand Penalty Charge in addition to the Rider Demand charge. For the second occurrence of eon -compliance: In the month of non- compliance, Customer is billed the Demand Penalty charge in addition to the Rider Demand charge. In addition, Customer is billed the Demand Penalty charge for each of the last 12 months or each month back to the previous request for interruption, whichever is less. For the third occwTence of non-compliance: In the month of non- compliance, Customer is billed the Demand Penalty charge in addition to the Rider Demand charge. In addition, Customer is billed the Demand Penalty charge for each month back to the previous request for interruption, plus the Demand Penalty charge for each month prior to the first occurrence of non- compliance back to the prevkws request for interruption or 12 months, whichever is less. After the third occurrence of non-compliance, Customer is billed on the rate schedule for firm power for the remainder of the contract. A Customer who has experienced a second occurrence of non-compliance and later successfully complies with three consecutive requests for interruption (including any test interruptions measuring the amounts of interruptible load disconnected on request) will be forgiven one prior ran -compliance occurrence. The first occurrence of non-compliance after such forgiveness will be considered a second occurrence of non-compliance for determining the level of penalty applicable. The penalties provided above shall not apply to a test interruption if, within a reasonable time not to exceed ten days, Customer determines the reason for the non-compliance and verifies to LP&L that steps necessary to ensure future compliance have been taken. In the first 12 months of service under this Rider to Customer, LP&L will not enforce the provisions of this non-compliance section if, on each occasion of Interruption, Customer demonstrates the following. LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 • LUBBOCK, TEXAS 79457 • (806) 767-2509 Page 6 of 7 For Customers with firm and interruptible service measured through the same meter. Upon interruption, Customer's measured total bad is not greater than 110% of the contracted firm demand. For Customers with only interruptible service measured through a single meter. upon interruption, Customer's measured interruptible load is not greater than 10% of the highest demand established since service commenced under this rider. Notwithstanding the non-compliance provisions above, if it is determined at any time that the Customer has tampered with any communication equipment or breakers or has bypassed or altered the devices intended to interrupt the bad on request, then Customer will be immediately billed on the rate schedule for firm power for the period since the last request for interruption with which customer complied or for the 24-nanth period just prior to such determination, whichever period is less. CONTRACT TERM: This Rider is being offered on an experimental basis. An agreement for service will be required for an initial term of 4 years when service Is first rendered under this Rider and shall continue thereafter until canceled according to the terms of this Rider. Within the first year of service under this Rider, Customer may elect to have all, or portions of, his Interruptible demand converted to Firm demand and upon 6 months written notice to LPBL, subject to the availability of new firm power service. After 1 year of service under this Rider, Customer may elect to have all, or portions of, his interruptible demand converted to Firm demand, upon 2 years written notice to LPBL, or sooner if conversion is mutually agreeable, subject to the availability of new firm power service. Interruptible service under this Rider may be reduced or canceled by Customer at any time by providing LPBL written notice of cancellation not less than 6 months prior to date of cancellation. Upon conversion of toads or upon cancellation of Interruptible Service under this Rider, Customer may not increase his remaining Interruptible demand, or Initiate new service under this Rider, for a period of 12 months following such conversion or cancellation and then only subject to the availability of new Interruptible Service. LUBBOCK POWER & LIGHT & WATER P.O. BOX 2000 - LUBBOCK, TEXAS 79457 - (806) 767-2509 Page 7 of 7 LOAD LIMIT RESERVATION: The maximum total load available under this Experimental Industrial Interuptible Rate Rider is limited to 75 MW to be split between the instantaneous and two-hour notice interruptible service, with each type of service limited to a maximum load of 50 MW. LP&L in its sole discretion may expand the load an additional 5 MW beyond the 75 MW bad limit to make it feasible for a customer to participate where the allocation has reduced the customer's allotment below a necessary unit amount Any additional expansion of the Experimental Industrial Interruptible load would require City Council approval. LP&L will accept request for service under the Experimental Industrial Interruptible Rate Rider the first 90 days following approval of the service by the Lubbock City Council. If the service requested by all qualifying customers during this period exceeds either the total maximum bad of 75 MW or the 50 MW maximum bad for either instantaneous or two-hour service, the service shall be alkcated among the customers requesting the service or type of serve oversubscribed on the following basis: I=Sum of all customers' nominated Instantaneous Interruptible Loads (in kW) N=Sum of all Customers' nominated 244our Notice Interruptible Loads (in I(W) IP-Prorata allocation of all customers' Instantaneous Interruptible Loads (in kW) IF=Instantaneous Proration Factor NP=Pr+orata allocation of all customers' 2-Hour Notice Interruptible Loads (in KW) NF-Noticed Proration Factor IN=Individual customer's nominated Instantaneous Interruptible Load (in kW) NN=Individual customer's nominated 2-Hour Notice Interruptible Load (in kW) Instantaneous If(I+N)>75,000 and N<2 * I, then IP=(75,000/(I=N)) * 1; Else IP=75,000-(NP * NF) If I12>50,000, then IF-(50,000/IP); Else IF-1.0 Individual customer's allocated Instantaneous Interruptible Load (in kW)=IF * IN Two -Hour Notice If (I+N)>75,000 and 1<2 * N, thenNP=(75,000/(I+N)) * N; Else NP+75,000 - (IP * IF) If NP>50,000, then NF=(50,000/NP); Else NF=1.0 Individual Customer's allocated 244our Notice Interruptible Load (in kW)=NF * NN After the initial 90-day period following approval of the service by the Lubbock City Council, requesting customer that qualify for this service will be served on a first come -first served basis up to the 50 MW maximum per type of service and total maximum of 75 MW or the discretionary expanded total for the experiment 4DSOUTHWESTERN PUBLIC SERVICE COMPANY June 6, 1995 The Honorable Mayor David Langston and Members of the City Council City of Lubbock Lubbock, TX Dear Mayor Langston and Members of the City Council: RECEIVED JUN 07 1995 CITY SECRETARY Attached is Southwestern Public Service Company's application requesting the City to approve and implement the proposed experimental industrial interruptible service within the City, to be effective upon the City's approval. The Public Utility Commission of Texas approved the experimental industrial interruptible rates on May 23, 1995. Recognizing that the City of Lubbock has original jurisdiction over electric rates within its limits, Southwestern is requesting your approval of the attached rates. We respectfully request your approval of these new rates as soon as possible. Please let me know if you need additional information or any assistance from Southwestern. We will be pleased to work with you. Sincerely, Jake Webb Division Manager Attachment J APPLICATION OF SOUTHWESTERN ) PUBLIC SERVICE COMPANY FOR ) APPROVAL OF TARIFFS FOR ) EXPERIMENTAL INDUSTRIAL ) INTERRUPTIBLE SERVICE AND ) EXPERIMENTAL OFF-PEAK ) SCHEDULED INTERRUPTIBLE ) SERVICE ) CITY OF APPLICATION FOR RATES FOR EXPERIMENTAL INTERRUPTIBLE SERVICE Southwestern Public Service Company ("Southwestern") files this Application for Approval of Rates for Experimental Industrial Interruptible Service and Experimental Off -Peak Scheduled Interruptible Service within the City and would show as follows: I. In Southwestern's last general rate case, Public Utility Commission of Texas ("PUC") Docket No. 11520 and related City filing, Southwestern agreed to conduct a market potential analysis and implement experimental interruptible industrial tariffs. This filing complies with that commitment. II. On September 19, 1994, Southwestern filed Docket No. 13456, Application of Southwestern Public Service Company for Approval of Tariffs for Experimental Industrial Interruptible Service and Experimental Off -Peak Scheduled Interruptible Service at the PUC. On March 22, 1995, all parties to Docket No. 13456, including the City of Amarillo, executed a Unanimous Joint Stipulation recommending approval of experimental tariffs for industrial interruptible service and off-peak scheduled interruptible service. Copies of the Unanimous Joint Stipulation and PUC Order are attached as Exhibit A. Effective May 23, 1995, the PUC APPLICATION FOR RATES FOR EXPERBIENTAL INTERRUPTIBLE SERVICE 943143114A.W Page 1 approved the Stipulation and entered rates for non -city ratepayers implementing the experimental interruptible service. Southwestern is filing this application with the City so that industrial customers within the City which can qualify for the interruptible service will have the same low rates as are available in Southwestern's Texas service territory outside the City. IV. Southwestern requests that the approval of the Experimental Industrial Interruptible Rate Rider (Electric Tariff Section No. IV, Sheet No. IV-147, original) and the Experimental Off- peak Scheduled Interruptible Service (Electric Tariff Section No. IV, Sheet No. IV-148, original), both of which are attached as Exhibit B hereto, be effective immediately on the terms therein provided. V. The rates established under the tariffs requested herein, as well as the terms and conditions of service under those tariffs, are just and reasonable, are not unreasonably preferential, prejudicial, or discriminatory, and comply with the requirements of the Public Utility Regulatory Act of 1995, S.B. 319, 74th Leg., R.S. 1995 ("PURA 1995") § 2.202. VI. The tariffs requested herein establish new services and rates not previously available. The requested tariffs do not constitute a major rate proceeding under PURA 1995 § 2.212, for which a public hearing is required. APPLICATION FOR RATES FOR EXPERMENTAL INTERRUPTIBLE SERVICE 9431431%4A.W Page 2 2.101. VII. The City has jurisdiction over this proceeding under the provisions of PURA 1995 § WHEREFORE, PREMISES CONSIDERED, Southwestern Public Service Company prays that the City post notice of this request for its next Commission meeting sitting in its regulatory authority under PURA 1995 § 2.101 and that it approve the Experimental Industrial Interruptible Rate Rider and Experimental Off-peak Scheduled Interruptible Service under the rates, terms, and conditions reflected on the tariff sheets attached hereto as Exhibit B. Respectfully submitted, SOUTHWESTERN PUBLIC SERVICE COMPANY By: i / / Gerald J. Diller 2002 SPS Tower P.O. Box 1267 Amarillo, Texas 79170 (806) 378-2822 APPLICATION FOR RATES FOR EXPERWENTAL INTERRUPTIBLE SERVICE 9431431WAM Page 3 ORDER AND RESOLUTION AN ORDER AND RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SITTING IN ITS REGULATORY AUTHORITY PURSUANT TO THE PUBLIC UTILITY REGULATORY ACT OF 1995, S.B. 319, 74TH LEG., R.S. 1995 ("PURA 1995"), WITH REGARD TO THE ELECTRIC TARIFFS FOR AN EXPERIMENTAL INDUSTRIAL INTERRUPTIBLE RATE RIDER AND EXPERIMENTAL OFF-PEAK SCHEDULED INTERRUPTIBLE SERVICE FILED BY SOUTHWESTERN PUBLIC SERVICE COMPANY ("SOUTHWESTERN") WITH THE CITY. WHEREAS, Southwestern has heretofore filed an Application for Approval of Experimental Interruptible Industrial Service and Experimental Off -Peak Scheduled Interruptible Service; and WHEREAS, the proposed tariffs will make Southwestern's industrial interruptible services available within the City on the same basis that they are currently approved by the Public Utility Commission of Texas for areas outside the City; and WHEREAS, the proposed tariffs do not constitute a major rate proceeding requiring a public hearing under the provisions of PURA 1995; and WHEREAS, the rates and services requested and the proposed tariffs are just and reasonable and are not unreasonably preferential, prejudicial, or discriminatory; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THAT, pursuant to the provisions of PURA 1995, it is ordered that Southwestern's proposed electric tariffs for Experimental Industrial Interruptible Rate Service and Experimental Off-peak Scheduled Interruptible Service as reflected on the attached tariff Sheet Nos. IV-147 and IV-148 are approved for use within the City effective immediately. Passed by the City Council this day of , 1995. Mayor ATTEST: City Secretary %31431\4AI.w ORDER AND RESOLUTION Page 1 TO: Public Utility Commission of Texas 7800 Shoal Creek Boulevard Austin, Texas 78757-1098 512/458-0100 a (Fax) 458-8340 Robert W. Gee, Chairman Sarah Goodfriend, Commissioner Pat Wood, III, Commissioner All Parties of Record Exhibit A Robert W. Gee C4airman Sarah Goodfriend Commissioner Pat Wood, III Commissioner MAY 0 4 M SeresceC& FROM: William Clay Harris Hearings Examiner RE: Docket No. 13456: Application of Southwestern Public Service Company for Approval of Experimental Interruptible Industrial Service and Experimental Off -Peak Scheduled Interruptible Service DATE: May 1,1995 Enclosed please find a copy of the Order approving the application of Southwestern Public Service Company (Southwestern) for Approval of Experimental Interruptible Industrial Service and Experimental Off --Peak Scheduled Interruptible Service, as agreed to by all parties. The jurisdictional deadline in this case ends June 1, 1995. The parties submitting suggested corrections to the Order include Southwestern and the City of Amarillo (the City). The presiding officer has made the proposed corrections filed by Southwestern on April 26, 1995. The suggested modifications filed by the City on April 25, 1995, advised that certain provisions of the Public Utility Regulatory Act of 1995, S.B. 319, 74th Leg., R.S. 1995 (PURA) cited in the Order were not final and subject to pending legislation. However, the presiding officer cited such provisions in the Order as merely the latest nonsubstantive recodifications of PURR, effective on April 5, 1995. In the presiding officer's view, other later changes to PURA made after the effective date of this Order would not necessarily invalidate this stipulation or the Order, as such provisions were not in effect at the time this application was filed and would not have retroactive effect. The citations to PURA in the Order are simply to the now effective, nonsubstantive recodification of that statute. This application is being processed under the administrative review provisions of P.U.C. PROC. R. 22.32. By separate ballot, the Commissioners will decide whether they wish to consider this application at a final order meeting. The parties will be advised on or before May 23, 1995, whether the Commission has scheduled this docket for consideration at the final order meeting beginning at 9:00 a.m. on Wednesday, May 31, 1995. If no Commissioner votes to consider this petition at a final order meeting, it will become effective on Tuesday, May 23, 1995. Printed on recycled paper An Equal OpporturAy Employer ELECTRIC (512) 456.0109 EXECUTIVE DIRECTOR (512) 458.0141 HEARINGS (512) 458.0266 ADMINISTRATION (512) 453.0186 PUBLIC INFORMATION (512) 458.0368 TELEPHONE (512) 458-0758 CENTRAL RECORDS (512) 458.0181 CONSUMER AFFAIRS (512) 458-0258 FINANCIAL REVIEW (512) 458-0328 GENERAL COUNSEL (512) 458.0282 HUMAN RESOURCES (512) 458-0190 INFORMATION SYSTEMS (512) 458-0200 TTY (512) 458.0221 Index to the Record Evidence .Docket No. 13456: Southwestern Public Service Company 1. Revised application of Southwestern Public Service Company (Southwestern) for approval of experimental interruptible industrial service and experimental off-peak scheduled interruptible service tariffs, filed on January 27, 1995. 2. Southwestern's affidavit of notice, filed on January 3, 1995, provided to all potentially affected industrial customers on December 30, 1994, 3. Official submission forms reflecting Commission publication of the prehearing conference and hearing on the merits in the Texas Register on December 13, 1994, and December 27, 1994, respectively. 4. Written, unanimous joint stipulation, along with copies of revised proposed tariffs (Exhibit A) and proposed findings of fact and conclusions of law (Exhibit B), filed by the parties on April 6; 1995. 5. The following prefiled testimonies, as corrected at the hearing on March 22, 1995, with exhibits and attachments: a. Prefiled direct testimony of Mr. Lester L. Baldock, filed by Southwestern on January 27, 1995; b. Prefiled direct testimony of Mr. Seth Thomason, filed by Southwestern on January 27, 1995; C. Prefiled rebuttal testimony of Mr. Lester L. Baldock, filed by Southwestern on March 20, 1995; d. Prefiled rebuttal testimony of Mr. Seth Thomason, filed by Southwestern on March 20, 1995; e. Prefiled direct testimony of Mr. Daniel J. Lawton, filed by the City of Amarillo on March 13, 1995; f. Prefiled direct testimony of Mr. Jeffry Pollock, filed on behalf of Texas Industrial Energy Consumers (TIEC) on March 13, 1995; and g. Prefiled direct testimony of Mr. Sid Gennouche, filed by General Counsel on March 13, 1995. DOCKET NO. 13456 �. APPLICATION OF SOUTHWESTERN § PUBLIC UTILITY COMMISSION PUBLIC SERVICE COMPANY FOR § AUTHORITY TO IMPLEMENT AN § OF TEXAS EXPERIMENTAL INDUSTRIAL § INTERRUPTIBLE SERVICE AND § EXPERIMENTAL OFF-PEAK SCHEDULED § INTERRUPTIBLE SERVICE § On behalf of the Public Utility Commission of Texas (Commission), the presiding officer finds that this docket is based on an evidentiary record and has been processed in accordance with applicable statutes and Commission rules. All parties to this docket agreed to the approval of the application for authority to implement an experimental interruptible industrial service and a scheduled off-peak interruptible service as reflected in the stipulation and revised tariffs. There are no issues in dispute. The following findings of fact and conclusions of law are ADOPTED: Findings of Fact Application and Notice 1. Southwestern Public Service Company (Southwestern or the Company) is an investor -owned electric utility providing retail electric service to customers residing within the State of Texas. 2. On September 19, 1994, Southwestern filed an application requesting the approval of tariffs reflecting an experimental industrial interruptible service and an experimental off-peak scheduled interruptible service pursuant to the final order in Petition of the General Counsel for an Inquiry into the Reasonableness .of the Rates and Services of Southwestern Public Service Company; Docket No. 11520, 19 P.U.C. BULL. 1274 (Dec. 20, 1993) (mem.). DOCKET NO. 13456 ORDER PAGE 2 3. On January, 27, 1995, Southwestern filed a revised application for the approval of an experimental industrial interruptible service and an experimental off-peak scheduled interruptible service tariff, including a revised market potential survey. 4. On December 30, 1994, Southwestern provided direct notice of the application to all of its potentially affected industrial customers with over 1,000 kilowatts (kW) of load. Southwestern also provide a copy of the application in this docket to all of the parties in Docket No. 11520, its last rate case. 5. The Commission published notice of this proceeding in the Texas Register on December 13, 1994, and again on December 27, 1994. Procedural History 6. Southwestern conducted a market potential analysis, developed an experimental program, prepared a report, and filed proposed experimental interruptible industrial tariffs, as required by the final order in Docket No. 11520. 7. Southwestern filed its initial application on September 19, 1994. Southwestern filed an amended application for implementation of the experimental interruptible services tariff on January 27, 1995. 8. Because the amended application did not substantively change the application, the presiding officer did not require new or additional notice of Southwestern, in accordance with the recommendation and analysis of General Counsel, filed on February 6, 1995. 9. The presiding officer suspended the effective date of the initial application for 150 days beyond the otherwise effective date of November 24, 1994, to March 23, 1995. The Company agreed and the presiding officer subsequently further extended the jurisdictional deadline for seventy additional days beyond March 23, 1995, to June 1, 1995, or superseding order of the Commission or the presiding officer. The jurisdictional deadline in this case is June 1, 1995. DOCKET NO. 13456 ORDER PAGE 3 10. On December 20, 1995, the presiding officer granted intervention to both the Texas Industrial I Energy Consumers (TIEC) and the City of Amarillo (City). 11. The presiding officer conducted the prehearing conference on December 20, 1994. On March 22, 1995, the presiding officer convened the hearing on the merits and recessed the proceeding for settlement negotiations. 12. On March 22, 1995, the parties announced that they had reached a unanimous agreement on all issues raised by the application. 13. On April 6, 1995, General Counsel, Southwestern, TIEC, and the City filed a unanimous joint stipulation resolving all of the issues. As a part of the stipulation, the parties waived their rights to a hearing, agreed that this case would be decided on the basis of the stipulation and the direct and rebuttal testimony filed in this docket by General Counsel, Southwestern, TIEC, and the City, as corrected on the record on March 22, 1995, and waived their right of cross-examination of witnesses. 14. On April 10, 1995, the presiding officer issued an order admitting the agreed to evidence into the record. Experimental Industrial Interruptible Service 15. Tariff No. IV-147, Original, defines the terms and conditions under which Southwestern will offer its experimental industrial interruptible service. 16. This tariff is available to customers taking service in conjunction with Southwestern's Large General Service rate schedules, if the customers have a total interruptible demand of 1,000 kW during June, July, and August, and if the customers' facilities are equipped with appropriate telemetering and control equipment. Customers eligible for this service will receive reduced rates in return for limited interruptions, not to exceed 200 hours each year. LOCKET NO. 13456 ORDER PAGE 4 17. This tariff will be available for up to a total of 75 MW of load but limited to a maximum of 50 MW for instantaneous/no notice service and 50 MW for two-hour noticed service. 18. The experimental industrial interruptible tariff establishes two types of interruptible service: (1) instantaneous, or no notice, interruptible service; and (2) service that is interruptible on two hours' notice. 19. The monthly rates under the experimental industrial interruptible rate rider are as follows: Service Voltage 115 kV *Distribution 69 kV and above Customer Charge: If taken in addition to firm service $ 50 $ 50 $ 50 If not taken in addition to firm service $200 $639 $639 Demand Charge (per kW of Interruptible Demand): Instantaneous $ 6.55 $ 3.55 $ 3.40 Two-hour notice $ 7.45 $ 4.43 $ 4.28 Energy Charge: (per kWh used per month) $ 0.0031 $ 0.0025 $ 0.0025 * The primary service discount applicable to the tariff to which this rider is appended also applies to the distribution level service. DOCKET NO. 13456 ORDER PAGE 5 20. The rates established under Tariff No. IV-147, Original, as well as the terms and conditions of service under that tariff, are supported by the agreed to evidence admitted into the record by the presiding officer. 21. Southwestern agrees that, annually for three years, it will apprise the parties of the status of the experimental industrial interruptible service, including information for 12 months concerning the number of megawatts on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147; and a summary of compliance with the requirements of Tariff IV- 147. 22. Further, Southwestern agrees that after four years, it will follow up with a customer survey relating to the experimental industrial interruptible service to determine what preparatory actions customers took in response to interruptions, and will provide, to the parties, the results of that survey, along with four years of data concerning the number of megawatts attributed to each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147; and a summary of compliance with the requirements of Tariff IV-147. Experimental Off -Peak Scheduled Interruptible Service 23. Tariff No. IV-148, Original, defines the terms and conditions under which Southwestern will offer is experimental off-peak scheduled interruptible service. 24. This tariff is available to transmission voltage customers having scheduled interruptible capacity of 4,000 kW or more. 25. Qualified customers must be able to schedule electric consumption during off-peak hours in June, July, and August, and the first two weeks of September. 26. Customers receiving service under this tariff will pay an energy charge of 1.0 cent per kilowatt- hour (kWh) plus the applicable fuel cost recovery charge. DOCKET NO. 13456 ORDER PAGE 6 27. The rates established under Tariff No. IV-148, Original, as well as the terms and conditions of service under that tariff, are supported by the evidence and are just and reasonable. Applicability of Administrative .Review 28. This docket is not a major rate proceeding. 29. More than 30 days have passed since the completion of notice of this application. 30. All issues in this docket are fully agreed upon so that no issues of fact or law are disputed by any party. Therefore, no hearing or Commission action is necessary. Conclusions of Law 1. Southwestern Public Service Company (Southwestern or the Company) is a public utility as defined in the Public Utility Regulatory Act of 1995, S.B. 319, § 2.001, 74th Leg., R.S. 1995 (PURA). 2. The Commission has jurisdiction over this petition under PURA §§ 1.101 and 2.201.. 3. The Commission provided appropriate notice of the application by publication in the Texas Register and by providing at least ten days' written notice of proceedings in compliance with the Administrative Procedure Act, TEX. GOWT. CODE ANN. § 2001.056 (Vernon Pamph. 1995) [hereinafter APA], and with P.U.C. PROC. R. 22.54.' 4. Southwestern provided adequate notice of the application in this docket to potentially affected customers and interested parties as required by P.U.C. PROC. R. 22.55. DOCKET NO. 13456 ORDER PAGE 7 5. The rates established under the Company's Tariff Nos. IV-147, Original, and Tariff IV-148, r Original, as well as the terms and conditions of service under those .tariffs, are just and reasonable as required by PURA § 2.202. 6. The rates established under the Company's Tariff Nos. IV-147, Original, and Tariff IV-148, Original, as well as the terms and conditions of service under those tariffs; are not unreasonably preferential, prejudicial, or discriminatory, but are sufficient, equitable, and consistent in application to each class of consumers as required by PURA § 2.202. 7. The rates established under the Company's Tariff Nos. IV-147, Original, and Tariff IV-148, Original, as well as the terms and conditions of service under those tariffs, are in compliance with Finding of Fact No. 24 and Conclusion of Law No. 5, of the Final Order issued in Petition of the General Counsel for an Inquiry into the Reasonableness of the Rates and Services of Southwestern Public Service Company, Docket No. 11520, 19 P.U.C. BULL. 1274 (Dec. 20, 1993) (mem.) and with PURA § 2.201. 8. This docket is not a major rate proceeding as defined by P.U.C. PROC. R. 22.2. 9. All requirements for administrative review under P.U.C. PROC. R. 22.32(a) are satisfied; therefore, this application and revised proposed tariffs may be approved by a Commission Hearings Examiner under the administrative review provisions of P.U.C. PROC. R. 22.32, as authorized by PURA § 1.101(d). The Commission issues the following Order: 1. Southwestern's petition to implement an experimental interruptible industrial service and an experimental off-peak scheduled interruptible service, as modified by the unanimous joint stipulation of the parties, -is hereby APPROVED in accordance with this Order. This Order is effective on May 23, 1995. DOCKET NO. 13456 ORDER PAGE 8 2. Southwestern's Tariff Sheets IV-147, Original, and IV-148, Original (Tariffs) setting forth the rates and conditions of service for experimental interruptible industrial service and for experimental off-peak scheduled interruptible service, as set. forth in Exhibit A to the joint stipulation, are hereby APPROVED effective the date of this Order. 3. Southwestern SHALL, annually for three years, apprise the parties of the status of the experimental industrial interruptible service, including the provision of information for 12 months concerning the number of megawatts (MW) on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147, Original; and a summary of compliance with the requirements of Tariff IV-147, Original. 4. Southwestern SHALL, after four years, follow up with a customer survey relating to the experimental industrial interruptible service to determine what preparatory actions customers took in response to interruptions, and Southwestern SHALL provide, to the parties in this docket, the results of that survey, along with four years of data concerning the number of MW on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147, Original; and a summary of compliance with the requirements of Tariff IV-147, Original. 5. The Commission supports and encourages the filing of joint stipulations and agreements in contested matters. The Commission's support and approval of the joint stipulation does not indicate the Commission's approval or endorsement of any particular principle or methodology that may underlie the stipulation. Neither should the entry of an order consistent with the joint agreement be regarded as a binding holding or precedent as to the appropriateness of any particular principle or methodology underlying the stipulation. DOCKET NO. 13456 ORDER PAGE 9 6. All motions, applications, or other requests for relief not expressly granted in this Order are DENIED for lack of merit. SIGNED,AT AUSTIN, TEXAS the 3 day of May, 1995. PUBLIC UTILITY COMMISSION OF TEXAS WILLIAM CLAY S HEARINGS EXAMINER ATTEST: JOHN 14 SECPJO RRCEW") ��p(,1019%, DOCKET NO. 13456 APPLICATION OF SOUTHWESTERN- �— PUBLIC SERVICE COMPANY FOR ) P_UBLIC UTILITY CbmMISSION APPROVAL OF TARIFFS FOR 9� INDUSTRIAL INTERRUPTIBLE SERVICE /) ` y:. q AND OFF-PEAK SCHEDULED �) �°�p�,, OF TEAS INTERRUPTIBLE SERVICE o - UNANIMOUS JOINT STIPUTA`t'IC The parties to this Unanimous Joint Stipulation, which is dated as -of March 22, 1995, are the General Counsel ("General Counsel") of the Public Utility Commission of Texas ("Commission"), Southwestern Public Service Company ("Southwestern"), the Texas Industrial Energy Consumers ("TIEC"), and the City of Amarillo, Texas ("City"). The foregoing, constituting all of the parties to this docket, shall be referred to individually as a "Party" and collectively as the "Parties." On September 19, 1994, Southwestern, pursuant to Sections 37 and 38 of the Public Utility Regulatory Act, TEX. REV. CIV. STAT. ANN. art. 1446c (Vernon Supp. 1994), and the final order in Petition of the General Counsel for an Inquiry into the Reasonableness of the Rates and Services of Southwestern Public Service Company, Docket No. 11520, 19 P.U.C. BULL. 1274 (Dec. 20, 1993) (mem.), filed an application requesting approval of tariffs providing for experimental industrial interruptible service and off-peak scheduled interruptible service. By this instrument, the Parties resolve all issues and stipulate to the disposition of this docket. ACCORDINGLY, the Parties agree and stipulate as set forth below. SECTION 1. APPROVAL OF TARIFFS. Tariff Sheets IV-147, Original, and IV-148, Original ("Tariff Sheet IV-147" and "Tariff Sheet IV-148," respectively, and collectively, the "Tariffs") set forth in Exhibit A result in just and reasonable rates for the industrial interruptible Docket No. 13456 Unanimous Joint Stipulation 9431431vAi.M • Page I service and off-peak scheduled interruptible service that Southwestern will offer, and should be approved to be effective until further action by the Commission. SEC TON 2. REPORTING REQUIREMENTS. Annually for three years,. Southwestern will apprise the Parties of the status of the experimental industrial interruptible service, including information for 12 months concerning the number of megawatts on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147; and a summary of compliance with the requirements of Tariff IV-147. After four years, Southwestern will follow up with a customer survey relating to the experimental industrial interruptible service to determine what preparatory actions customers took in response to interruptions, and will provide the results of that survey, along with information for four years concerning the number of megawatts on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147; and a summary of compliance with the requirements of Tariff IV-147 to the Parties. SECITON 3. REcommENDED FINDINGS OF FACT AND CONCLUSIONS OF LACY. The Parties will take all reasonable steps to ensure that the proposed findings of fact and conclusions of law set forth in Exhibit B are adopted by the Commission and that the Commission enters an order consistent in all material respects with this stipulation. The Parties agree that settling the issues in this proceeding is in the public interest, and, for this reason, they have entered into this stipulation to resolve all issues in this case. This stipulation is a compromise and settlement among the Parties, and no Party is bound by it outside the context of the stipulation as a whole. The Commission's decision, if it enters an order consistent with this stipulation, will be binding as to the matters decided in this case, but the decision will not bind the Parties with respect to similar issues that might arise in other proceedings. Docket No. 13456 Unanimous Joint Stipulation Page 2 SECTION 4. WAIVER OF HEARING AND AGREEMENT As TO RECORD. The Parties (a) waive the hearing on this docket; (b) stipulate that Southwestern's notice affidavit, revised proposed experimental interruptible industrial rate tariffs, revised market potential analysis dated January 27, 1995, the direct and rebuttal testimony, and exhibits filed by General Counsel, Southwestern, TIEC, and the City (all as corrected on the record on March 22, 1995) and this stipulation shall form the entire record in this proceeding; and (c) waive their right to cross-examine witnesses. No additional evidence shall be admitted without the consent of all Parties. SECTION 5. .EFFECT OF MODIFICATION OF -STBULATION. - If the -Commission enters an order inconsistent with this stipulation, any Party may withdraw its consent to this stipulation, and the withdrawing Parry's agreement to this stipulation shall,be extinguished. The withdrawing Party shall not be deemed to have in any way waived or compromised any right to urge that a different result, methodology, or position is required by law or the facts. SECTION 6. MULTIPLE COUNTERPARTS. Each copy of this stipulation may not bear the signatures of all Parties but will be deemed fully executed if all copies together bear the signatures of all Parties. Fully and duly authorized representatives of the Parties have signed this stipulation as of the date first set forth above. GENERAL COUNSETI J 0R THE PUBLIC UTILITY CO SSI N O TEXAS / 1, rr! f 1/ Assistant" General Counsel Docket No. 13456 Unanimous Joint Stipulation 917143WAL., Page 3 9431411\7AL. SOUTHWESTERN PUBLIC SERVICE COMPANY By: ` F. Sha elford Attorney of Record for Southwestern Public Service Company TEXAS INDUSTRIAL ENERGY CONSUMERS Y Rex D. Vanly iddlesworth Attorney of Record for Texas Industrial Energy Consumers CITY OF AMARILLO, TEXAS By: Merril E. 14unn Attorney of Record for the City of Amarillo, Texas Docket No. 13456 Unanimous Joint Stipulation 'Page 4 EXHIBIT A to UNANIMOUS JOINT STIPULATION in PUBLIC UTILITY COMMISSION OF TEXAS DOCKET NO. 13456 Docket No. 13456 Unanimous Joint Stipulation Page 5 s P s Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBUC SERVICE COMPANY Original R0.Box 1261 Amarillo, Texas 79170 Page 1 of 7 ELECTRIC TARIFF EXPERIMENTAL INDUSTRIAL INTERRUPTIBLE RATE RIDER AVAILABILITY: Service under this Rider is available at the sole discretion of the N Company and only when the Company has available capacity in excess of the firm system requirement and if such service will not in any way impair Company's ability to serve the requirements of its firm retail customers. This Rider is available under contract to customers having a total interruptible demand of at least 1,000 kW during June, July, August, and September and whose facilities are equipped with appropriate telemetering and control equipment to permit Customer to comply with, or Company to implement curtailment requests. Service under this Rider is available when taken in conjunction with firm service under the large general service rate schedules. Supplementary Power Service under this Rider is available to QFs and other power production facilities under specific contracts on a case -by -case basis. MONTHLY RATE: Service Voltage 115 kV *Distribution 69 kV and above Customer Charge: If taken in addition $ 50 $ 50 $ 50 to firm service If not taken in add- $200 $639 $639 ition to firm service Demand Charge (per kW of Interruptible Demand): Instantaneous - $6.55 $3.55 $3.40 Two hour notice - $7.45 $4.43 $4.28 Energy Charge: per kWh used per month $.0031 $.0025 $.0025 *The primary service discount that is applicable to the tariff to which this rider is appended is also applicable to the distribution level service. N &.v4e- 4/,Z� P ESIDENT /u/wordp/rate/puc_11520 bdar148a.dcx e Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. O. Box 1261 Amarillo, Texas 79170 Page 2 of 7 ELECTRIC TARIFF DEFINITIONS: Instantaneous interruptible service is service that can be interrupted without notice by means of underfrequency relays when the system frequency declines to 59.6 hertz or through telemetering and control equipment at the control and discretion of the Company. Noticed interruptible service is interruptible load that shall be interrupted by the Customer or Company upon expiration of two hours (120 minutes) after notice was transmitted to the Customer that an interruption will occur. DETERMINATION OF DEMAND AND ENERGY: To be determined in accordance with the tariff to which this rider is appended. In the event that both firm and interruptible service are measured through the same electric meter, then the firm demand shall be established by Agreement and the interruptible demand shall be the remainder of the measured demand. The firm demand so established may be modified by the customer, subject to review and approval by Company, to reflect changes in the customer's firm load due to normal load growth or load reductions. When this Rider is attached to the large general service -transmission tariff, the total billing demand shall be the sum of the interruptible demand and the firm demand, or 7500 kW whichever is greater. In the event the sum of the interruptible demand and firm demand is less than 7,500 kW, the minimum demand charge shall be calculated as follows: 7,500 kW shall be prorated to the firm and interruptible demands. Such prorated demands shall be billed according to the appropriate firm and interruptible demand charges, plus $589 for the firm demand customer charge plus $50 for the interruptible service. When this Rider is attached to the large general service -distribution tariff, the energy served hereunder will be divided between interruptible service and firm service utilizing the ratio each demand of firm demand and interruptible demand is to the total demand. The demand recorded for the 12-hour period following restoration of service subsequent to interruptions provided for under this Rider shall not be used in the calculation of total billing demand. LIMITATIONS ON INTERRUPTIONS: Interruptions under this Rider are limited as follows: Daily Limit: No more than two curtailments per calendar day of up to a total of 12 hours, measured from midnight to midnight, except in system emergencies, as described below. Annual Limit: No more than 200 hours in any calendar year. P ESIDENT N /u/wwdp/rate/puc 11520 txtar148a.dwc s P s Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBUC SERVICE COMPANY Original R0.Box 1261 Amarillo, Texas 79170 Page 3 of 7 ELECTRIC TARIFF Interruptions lasting for any fraction of an hour shall be credited for one full hour toward the annual limit. The Company reserves the right to perform test interruptions, irt which the duration of the interruption will not exceed one hour. In the event that either customer has failed to comply with previous interruptions or actual interruptions have not occurred in the prior 12 months which includes the current billing month, the Company reserves the right to perform test interruptions, in which the duration of the interruption will not exceed one hour. Interruption time is measured from the time Customer's load is interrupted to the lesser of, (a) Company restores service to the load, or (b) Company's facilities are capable of restoring service to the load, whether or not Customer's facilities are capable of receiving service, or (c) Company has given permission to Customer to restore service to its load, whichever is less. During system emergencies or when Company has made public pleas to restrict electric energy usage to essential needs because of an area or power pool shortage of electric power and/or energy, interruptible loads served under this Rider may be interrupted continuously without daily limit until such emergency condition has ended. The only interruptions credited toward interruption time limits are those implemented by Customer at the request of Company or those initiated by activation of control equipment by Company, and those resulting from the operation of underfrequency relays installed in connection with instantaneous interruptible service. FUEL COST RECOVERY: The charge per kilowatt-hour of the above rate shall be increased by the applicable fuel cost recovery factor per kilowatt-hour as provided in PUCT Sheet IV-69. TERMS OF PAYMENT: Net in 16 days after mailing date; 5 percent added to bill after 16 days. If the sixteenth day falls on a holiday or weekend, the due date will be the next work day. POWER FACTOR ADJUSTMENT: Bills computed under the above rate will be increased $0.25 for each kvar by which the reactive demand exceeds, numerically, 0.53 times the measured 'kW demand, and will be reduced $0.25 for each kvar by which the reactive demand is less than, numerically, 0.40 times the measured kW demands. P ESIDENT N /u/wordp/rate/puc 11520 txtar148a.dcx SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original R 0. Box 1261 Amarillo, Texas 79170 Page 4 of 7 ELECTRIC TARIFF GENERAL CONDITIONS: N Customer understands that failure to interrupt service when requested threatens the reliability of service to other customers. Company may make intentional interruptions, up to the Annual Limit, at any time and from time to time, at Company's sole discretion. Company will attempt to provide as much prior notice as possible prior to interruptions. Intentional interruptions may be made at any time, in the judgment of Company, when demands for electricity exceeds or are expected to be likely to exceed the Company's available electric supply for whatever reasons including, but not limited to, breakdown of generating units, transmission equipment or other critical facilities; short or long-term shortages of fuel or generation, transmission, and other facilities; and requirement or orders of governmental agencies. CONDITIONS OF SERVICE: Customer desiring instantaneous interruptible service is required to install, .own, operate and maintain necessary monitoring devices and interruption -control equipment including protective devices, on Customer's side of the point of delivery, as reasonably specified by Company. In addition, Company shall install interruption - control equipment on Company's side of point of delivery as reasonably determined necessary by Company to interrupt the interruptible load. All interruption -control equipment shall be under the exclusive control of Company, and the installation and maintenance of such facilities shall be at the expense of Customer. Interruption - control equipment consists of but is not limited to, under -frequency relays, switchgear, remote control and communications equipment including a communications path, timers, trip counters, and/or other devices as specified by Company. Remote control and communications equipment includes equipment necessary to provide instantaneous load information to Company's designated system operating centers. Operation of the equipment will remain under the control of Company and Company reserves the right to inspect and test all interruption - control equipment and may review Customers' maintenance records. Customer desiring noticed interruptible service is required to install, own, operate and maintain communications equipment as reasonably specified by Company to permit timely notification of impending and actual curtailments. At any time when Noticed Interruption is requested, if Customer fails to reduce his load to zero, or in the event that this Rider is attached to the large general service tariffs and Customer fails to reduce his load to the Firm demand established by Agreement, the Company, may, at its sole discretion, discontinue delivery of any or all power to Customer. N ESIDENT /u/wordp/rate/puc_11520 txtar148a.dcx e SOUTHWESTERN PUBUC SERVICE COMPANY P. O. Box 1261 Amarillo, Texas 79170 ELECTRIC TARIFF NON-COMPLIANCE PENALTY: Section No. IV Sheet No. IV-147 Original Page 5 of 7 I The Demand Penalty Charge for non-compliance with the requested interruption of service under this tariff is 150% of the difference between the demand charge per KW of interruptible demand and the demand charge per KW for firm demand for the portion of interruptible load that Customer failed to interrupt, but in no event shall the total of the Demand Penalty Charge and rider demand charge exceed what Customer's cost would have been if all the contracted interruptible load had been taken at firm demand during the period the penalty is applied to. For the first occurrence of non-compliance: in the month of non-compliance, Customer is billed the Demand Penalty Charge in addition to the Rider Demand charge. For the second occurrence of non-compliance: in the month of non-compliance, Customer is billed the Demand Penalty charge in addition to the Rider Demand charge. In addition, Customer is billed the Demand Penalty charge for each of the last 12 months or each month back to the previous request for interruption, whichever is less. For the third occurrence of non-compliance: in the month of non-compliance, Customer is billed the Demand Penalty charge in addition to the Rider Demand charge. In addition, Customer is billed the Demand Penalty charge for each month back to the previous request for interruption, plus the Demand Penalty charge for each month prior to the first occurrence of non-compliance back to the previous request for interruption or 12 months, whichever is less. After the third occurrence of non-compliance, Customer is billed on the rate schedule for firm power for the remainder of the contract. A Customer who has experienced a second occurrence of non-compliance and later successfully complies with three consecutive requests for interruption (including any test interruptions measuring the amounts of interruptible load disconnected on request) will be forgiven one prior non-compliance occurrence. The first occurrence of non-compliance after such forgiveness will be considered a second occurrence of non-compliance for determining the level of penalty applicable. The penalties provided above shall not apply to a test interruption if, within a reasonable time not to exceed ten days, Customer determines the reason for the non-compliance and verifies to Company that steps necessary to ensure future compliance have been taken. In the first 12 months of service under this Rider to Customer, Company will not enforce the provisions of this non-compliance section if, on each occasion of interruption, Customer demonstrates the following. 4/z/� P ESIDENT /u/w ordp/rate/pu c_115 20 tvtarl AQ* drw SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. 0. Box 1261 Amarillo, Texas 79170 Page 6 of 7 ELECTRIC TARIFF For Customers with firm and interruptible service measured through the same meter: Upon interruption, Customer's measured total load is not greater than 1 10% of the contracted firm demand. For Customers with only interruptible service measured through a single meter: upon interruption, Customer's measured interruptible load is not greater than 10% of the highest demand established since service commenced under this rider. Notwithstanding the non-compliance provisions above, if it is determined at any time that the Customer has tampered with any communication equipment or breakers or has bypassed or altered the devices intended to interrupt the load on request, then Customer will be immediately billed on the rate schedule for firm power for the period since the last request for interruption with which customer complied or for the 24-month period just prior to such determination, whichever period is less. CONTRACT TERM: This Rider is being offered on an experimental basis. An agreement for service will be required for an initial term of 4 years when service is first rendered under this Rider and shall continue thereafter until canceled according to the terms of this Rider. Within the first year of service under this Rider, Customer may elect to have all, or portions of, his Interruptible demand converted to Firm demand and upon 6 months written notice to Company, subject to the availability of new firm power service. After 1 year of service under this Rider, Customer may elect to have all, or portions of, his interruptible demand converted to Firm demand, upon 2 years written notice to Company, or sooner if conversion is mutually agreeable, subject to the availability of new firm power service. Interruptible service under this Rider may be reduced or cancelled by Customer at anytime by providing' Company written notice of cancellation not less than 6 months prior to date of cancellation. N Upon conversion of loads or upon cancellation of Interruptible Service under this Rider, Customer may not increase his remaining Interruptible demand, or initiate new service under this Rider, for a period of 12 months following such conversion or cancellation and then only subject to the availability of new Interruptible Service. N ESIDENT /u/wordp/rate/puc 11520 *%-4.,,1.4e_ A__. SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. O. Box 1261 Amarillo, Texas 79170 Page 7 of 7 ELECTRIC TARIFF LOAD LIMIT RESERVATION: The maximum total load available under this Experimental Industrial Interruptible Rate Rider is limited to 75 MW to be split between the instantaneous and two-hour notice interruptible service, with each type of service limited to a maximum load of 50 MW. Company in its sole discretion may expand the load an additional 5 MW beyond the 75 MW load limit to make it feasible for a customer to participate where the allocation has reduced the customer's allotment below a necessary unit amount. Any additional expansion of the Experimental Industrial Interruptible load would require Commission approval. Company will accept requests for service under the Experimental Industrial Interruptible Rate Rider the first 90 days following approval of the service by the Public Utility Commission of Texas. If the service requested by all qualifying customers during this period exceeds either the total maximum load of 75 MW or the 50 MW maximum load for either instantaneous or two-hour service, the service shall be allocated among the customers requesting the service or type of serve oversubscribed on the following basis: I =Sum of all customers' nominated Instantaneous Interruptible Loads (in kW) N = Sum of all customers' nominated 2-Hour Notice Interruptible Loads (in kW) IP=Prorata allocation of all customers' Instantaneous Interruptible Loads (in kW) IF=Instantaneous Proration Factor NP=Prorata allocation of all customers' 2-Hour Notice Interruptible Loads (in KW) NF = Noticed Proration Factor IN=Individual customer's nominated Instantaneous Interruptible Load (in kW) NN = Individual customer's nominated 2-Hour Notice Interruptible Load (in kW) Instantaneous If (I+N)>75,000 and N < 2 * I, then IP=(75,000/(I+N)) * I; Else IP=75,000-(NP * NF) If IP>50,000, then IF=(50,000/IP); Else IF=1.0. Individual customer's allocated Instantaneous Interruptible Load (in kW)=1F * IN Two -Hour Notice If (I+N)>75,000 and I < 2 * N, then NP=(75,000/(I+N)) * N; Else NP=75,000 - 0P * IF) If NP>50,000, then NF=(50,000/NP); Else NF=1.0 Individual customer's allocated 2-Hour Notice Interruptible Load (in kW)=NF * NN 101 After the initial 90-day period following approval of the service by Public Utility Commission of Texas, requesting customers that qualify for this service will be served on a first come -first served basis up to the 50 MW maximum per type of service and total maximum of 75 MW or the discretionary expanded total for the experiment. N &5e14",44— PAIESIDENT /u/wordp/rate/puc 11520 txtar148a.dcx SPS SOUTHWESTERN PUBUC SERVICE COMPANY P. 0. Box 1261 Amarillo, Texas 79170 ELECTRIC TARIFF EXPERIMENTAL OFF-PEAK SCHEDULED INTERRUPTIBLE SERVICE Section No. IV Sheet No. IV-148 Original Page 1 of 3 APPLICABLE: To Transmission voltage level customers in Texas under contract where N facilities of adequate capacity and suitable voltage of 69 kV or higher are adjacent to the premises to be served. This Rate is available to customers having scheduled interruptible capacity of 4,000 kW or more. Not applicable to temporary, breakdown, standby, supplementary, resale or shared service. MONTHLY RATE: Customer Charge: If taken in addition to firm service If not taken in addition to firm service .$50 $639 Energy Charge: 1.0e, per kWh for all kWh used per month under this Rate Schedule. CONTRACT PERIOD: The minimum contract period shall be for four years. MINIMUM CHARGE: Customer's base rate charges in a calendar year shall not be less than the above base rate times the contract scheduled demand times 1,750 hours. CHARACTER OF SERVICE: Three phase, 60 hertz, nominally 69 kV, or above. LINE EXTENSIONS: All costs of equipment, supplies, and labor related to the installation of facilities necessary to make service available from existing facilities shall be paid by the customer in advance. No transformation will be made by the Company at the point of service. LOSS ADJUSTMENT: The meter readings used for billing shall be increased to include all transformation losses when metering is installed on the secondary side of less than 69 kV of any voltage transformation made on the customer's side of the point of service. N &21�- 4:�Z� P ESIDENT txtar149.dcx SPS SOUTHWESTERN PUBUC SERVICE P. 0. Box 1261 Amarillo, Texas 79170 COMPANY ELECTRIC TARIFF Section No. IV Sheet No. IV-148 Original Page 2 of 3 FUEL COST RECOVERY: The charge per kilowatt-hour of the above rate shall be N increased by the applicable fuel cost recovery factor per kilowatt-hour as provided I in PUCT Sheet IV-69. POWER FACTOR ADJUSTMENT: Bills computed under the above rate will be increased $0.25 for each kvar by which the reactive demand exceeds, numerically, 0.53 times the measured kW demand, and will be reduced $0.25 for each kvar by which the reactive demand is less than, numerically, 0.40 times the measured kW demands. TERMS OF PAYMENT: Net in 16 days after mailing date; 5 percent added to bill after 16 days. If the sixteenth day falls on a holiday or weekend, the due date will be the next work day. DETERMINATION OF DEMAND: In the event that both firm and scheduled service are measured through the same electric meter, then the firm demand shall be established by Agreement and the Scheduled Demand shall be the difference between the firm demand and the total demand as determined from Company's demand meter for the 30-minute period of customer's greatest kW use during the month. DETERMINATION OF ENERGY: The energy served hereunder will be divided between interruptible service and firm service utilizing the ratio each demand of firm demand and interruptible demand is to the total demand. SPECIAL CONDITIONS: Customer shall be capable of scheduling its electric consumption only during off-peak hours in the months of June, July, and August and the first two weeks of September (the "Summer Peak Season"). Peak hours shall include the hours from 12:00 noon to 10:00 p.m. on weekdays and Saturdays, exclusive of Company holidays (Fourth of July holiday and Labor Day holiday). Off-peak hours shall include all hours of the week not defined as peak hours. Customer shall not schedule consumption under this rider during Summer Peak Season peak hours (the "restricted peak hours") unless Customer has received permission from Company's System Control offices that operation during peak hours is acceptable ("unrestricted peak hours"). Company may, at its sole discretion, require Customer to install interruptible devices on Customer's consuming facilities to ensure that Customer's loads are off during restricted peak hours. These devices shall be considered as a part of Customer's associated line extension facilities. Company may activate the interrupting devices during the restricted peak hour periods or for any electrical emergency throughout the entire year. Company may also, at its sole discretion, require Customer to install under - frequency relays as a part of Customer's associated line extension facilities. N ESIDENT txtar149.dcx SPS Section No. IV Sheet No. IV-148 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. O. Box 1261 Amarillo, Texas 79170 Page 3 of 3 ELECTRIC TARIFF BUY -THROUGH PROVISION: In the event Company has not granted permission for N Customer to schedule consumption during peak hours, Customer may purchase power and energy during restricted peak hours. However, in any year that Customer elects to buy through restricted peak hours, Customer's total consumption for that calendar year shall be billed solely in accordance with the applicable large general service rate sheet. NON-COMPLIANCE PENALTY: If it is determined at any time by Company that Customer is not in timely compliance with the provisions of this rate, Customer will be immediately billed on the rate schedule for firm power for the period since service was commenced under this rate. REGULATORY APPROVAL: This rate is subject to change and approval in accordance I with the rules and regulations of the Public Utility Commission of Texas. N &91� /,Z� P"RESIDENT txtar149.dcx M EXHIBIT B to STIPULATION in PUBLIC UTILITY COMMISSION OF TEXAS DOCKET NO. 13456 FINDINGS OF FACT: a 31431Xtn1... 1. Southwestern Public Service Company ("Southwestern") is an investor -owned electric utility providing retail electric service within the State of Texas. 2. On September 19, 1994, Southwestern, pursuant to Sections 37 and 38 of the Public Utility Regulatory Act, TEx. REv. Crv. STAT. ANN. art. 1446c (Vernon Supp. 1994), and the final order in Petition of the General Counsel for an Inquiry into the Reasonableness of the Rates and Services of Southwestern Public Service Company, Docket No. 11520, 19 P.U.C. BULL. 1274 (Dec. 20, 1993) (mem.), filed an application requesting approval of tariffs for an experimental industrial interruptible service and for an experimental off-peak scheduled interruptible service. 3. Southwestern provided direct notice of its application to all the parties to its last rate case, Docket No. 11520, and individual notice to all industrial customers with over 1,000 kW of load. 4. Notice of this proceeding was published in the Texas Register on 5. The Administrative Law Judge granted intervention to .both the Texas Industrial Energy Consumers ("TIEC") and the City of Amarillo, Texas ("City"), on December 20, 1994. 6. On March _, 1995, General Counsel, Southwestern, TIEC, and the City filed a unanimous joint stipulation resolving all issues. As a part of this stipulation, the Parties (a) waived their rights to a hearing, (b) agreed that this case would be decided on the basis of the direct and rebuttal testimony filed in this docket by General Counsel, Southwestern, TIEC, and the City (as corrected on the record March 22, 1995) and the stipulation so filed, and (c) waived cross-examination. 7. Southwestern conducted a market potential analysis, developed an experimental program, prepared a report, and filed proposed experimental interruptible industrial tariffs as required in Docket No. 11520. Docket No. 13456 Unanimous Joint Stipulation Page 6 8. Tariff No. IV-147, Original, defines the terms and conditions under which Southwestern will offer its experimental industrial interruptible service. This tariff is available to customers taking service in conjunction with Southwestern's Large General Service rate schedules, if the customers have a total interruptible demand of 1,000 kW during June, July, and August, and if the customers' facilities are equipped with appropriate telemetering and control equipment. Customers eligible for the service will receive reduced rates in return for limited interruptions, not to exceed 200 hours each year. This tariff will be available for up to a total of 75 MW of load but limited to a maximum of 50 MW for instantaneous/no notice service and 50 MW for two hour noticed service. 9. The experimental industrial interruptible tariff establishes two types of interruptible service: instantaneous, or no notice, interruptible service and service that is interruptible on two hours' notice. The monthly rates under the experimental industrial interruptible rate rider are: Service Voltage . 115 kV *Distribution 69 kV and above Customer Charge: If taken in addition $50 $50 $50 to firm service If not taken in ad- $200 $639 $639 dition to firm service Demand Charge (per kW of Interruptible Demand): Instantaneous - $6.55 $3.55 $3.40 Two-hour notice - $7.45 $4.43 $4.28 Energy Charge: per kWh used per month $.0031 $.0025 $.0025 *The primary service discount applicable to the tariff to which this rider is appended also applies to the distribution level service. 10. The rates established under Tariff No. IV-147, Original, as well as the terms and conditions of service under that tariff, are supported by the evidence and are just and reasonable. 11. Southwestern has agreed that annually for three years it will apprise the Parties of the status of the experimental industrial interruptible service, including Docket No. 13456 Unanvnous Joint stipulation 943143M;,1.M Page 7 information for 12 months concerning the number of megawatts on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147; and a summary of compliance with the requirements of Tariff IV-147. Further, Southwestern has agreed that after four years, it will follow up with a customer survey relating to the experimental industrial interruptible service to determine what preparatory actions customers took in response to interruptions, and will provide the results of that survey, along with information for four years concerning the number of megawatts on each rate; the number of customers served under each rate; the number and duration of interruptions under Tariff IV-147; and a summary of compliance with the requirements of Tariff IV-147, to the parties. 12. Tariff No. IV-148, Original, defines the terms and conditions under which Southwestern will offer its experimental off-peak scheduled interruptible service. This tariff is available to transmission voltage customers having scheduled interruptible capacity of 4,000 kW or more. Qualified customers must be able to schedule electric consumption during off-peak hours in June, July, and .August, and the first two weeks of September. Customers receiving service under this tariff will pay an energy charge of 1.0C per kWh. 13. The rates established under Tariff No. 1V-148, Original, as well as the terms and conditions of service under that tariff, are supported by the evidence and are just and reasonable. CONCLUSIONS OF LAW: 4131t MAl.v 1. Southwestern is a public utility as defined in Section 3(c)(1) of the -Public Utility Regulatory Act ("PURA"), TEX. REV. Civ. STAT. ANN. art. 1446c (Vernon Supp. 1994). 2. The Commission has jurisdiction and authority over this petition under PURA §§ 37 and 38. 3. Southwestern has provided adequate notice to affected persons. 4. . The issues in this docket were resolved by agreement of the parties as provided in Section 2001.056 of the Administrative Procedure Act, TEx. Gov'T. CODE ANN. § 2001.001, er seq. (Vernon Supp. 1994). 5. The rates established under Tariff Nos. IV-147, Original, and Tariff No. 148, Original, as well as the terms and conditions of service under those tariffs, are just and reasonable. Docket No. 134S6 Unanimous Joint Stipulation Page 8 TO: FROM: ~ Exhibit B Utility Commission of Texas Robert W. Gee - .Public Chairman 7800 Shoal Creek Boulevard Austin, Texas 78757-1098 Sarah Goodfriend 512/458-0100 a (Fax) 458-8340 Commissioner Pat Wood, III Commissioner All Parties of Record William Clay Harris Administrative Law Judge RE: Docket No. 13456: Application of Southwestern Public Service Company for Approval of Experimental Interruptible Industrial Service and Experimental Off -Peak Scheduled Interruptible Service DATE: May23,1995 Notice of Approval Notice is hereby given to all parties and interested persons that, on May 22, 1995, the Public Utility Commission of Texas (Commission) voted by separate ballot under P.U.C. PROC. R. 22.32 not to schedule the above -referenced docket for consideration at its May 31, 1995, final order meeting. Accordingly, the proposed Order issued on May 1, 1995, is approved and becomes effective on May 23, 1995, as stated in the Order. SIGNED AT AUSTIN TEXAS the 'day , 1995. .�� y of May, �) Printed on recycled paper ELECTRIC (512) 458-0109 ADMINISTRATION (512) 458-0188 CENTRAL RECORDS (512) 458-0181 GENERAL COUNSEL (512) 458.0282 PUBLIC UTILITY COMMISSION OF TEXAS WILLIAM CLAY HAIdhS ADMINISTRATIVE LAW JUDGE EXECUTIVE DIRECTOR (512) 459.0141 PUBLIC INFORMATION (512) 458.038 CONSUMER AFFAIRS (512) 458.025: HUMAN RESOURCES (512) 458.0190 TTY (512) 458.0221 An Equal Opportunity Employer HEARINGS (512) 458-0288 TELEPHONE (512) 458-0158 FINANCIAL REVIEW (512) 458-0728 INFORMATION SYSTEMS (512) 456-0200 sPs Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P•O.Box 1261 Amarillo, Texas 79170 Page 1 of 7 ELECTRIC TARIFF EXPERIMENTAL INDUSTRIAL INTERRUPTIBLE RATE RIDER AVAILABILITY: Service under this Rider is available at the sole discretion of the N Company and only when the Company has available capacity in excess of the firm system requirement and if such service will not in any way impair Company's ability to serve the requirements of its firm retail customers. This Rider is available under contract to customers having a total interruptible demand of at least 1,000 kW during June, July, August, and September and whose facilities are equipped with appropriate telemetering and control equipment to permit Customer to comply with, or Company to implement curtailment requests. Service under this Rider is available when taken in conjunction with firm service under the large general service rate schedules. Supplementary Power Service under this Rider is available to QFs and other power production facilities under specific contracts on a case -by -case basis. MONTHLY RATE: Service Voltaae 115 kV 'Distribution 69 kV and above Customer Charge: If taken in addition $ 50 $ 50 $ 50 to firm service If not taken in add- $200 $639 $639 ition to firm service Demand Charge (per kW of Interruptible Demand): Instantaneous - $6.55 $3.55 $3.40 Two hour notice - $7.45 $4.43 $4.28 Energy Charge: per kWh used per month $.0031 $.0025 $.0025 'The primary service discount that is applicable to the tariff to which this rider is appended is also applicable to the distribution level service. N &1rife- 4z/� P ESIDENT /u/wordp/rate/puc 11520 bdar148a.dcx w..w. •w • .. . . ww u..•w w. w.. w_ _..... w SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. O. Box 1261 Amarillo, Texas 79170 Page 2 of 7 ELECTRIC TARIFF DEFINITIONS: Instantaneous interruptible service is service that can be interrupted without notice by means of underfrequency relays when the system frequency declines to 59.6 hertz or through telemetering and control equipment at the control and discretion of the Company. Noticed interruptible service is interruptible load that shall be interrupted by the Customer or Company upon expiration of two hours (120 minutes) after notice was transmitted to the Customer that an interruption will occur. DETERMINATION OF DEMAND AND ENERGY: To be determined in accordance with the tariff to which this rider is appended. In the event that both firm and interruptible service are measured through the same electric meter, then the firm demand shall be established by Agreement and the interruptible demand shall be the remainder of the measured demand. The firm demand so established may be modified by the customer, subject to review and approval by Company, to reflect changes in the customer's firm load due to normal load growth or load reductions. When this Rider is attached to the large general service -transmission tariff, the total billing demand shall be the sum of the interruptible demand and the firm demand, or 7500 kW whichever is greater. In the event the sum of the interruptible demand and firm demand is less than 7,500 kW, the minimum demand charge shall be calculated as follows: 7,500 kW shall be prorated to the firm and interruptible demands. Such prorated demands shall be billed according to the appropriate firm and interruptible demand charges, plus $589 for the firm demand customer charge plus $50 for the interruptible service. When this Rider is attached to the large general service -distribution tariff, the energy served hereunder will be divided between interruptible service and firm service utilizing the ratio each demand of firm demand and interruptible demand is to the total demand. The demand recorded for the 12-hour period following restoration of service subsequent to interruptions provided for under this Rider shall not be used in the calculation of total billing demand. LIMITATIONS ON INTERRUPTIONS: Interruptions under this Rider are limited as follows: Daily Limit: No more than two curtailments per calendar day of up to a total of 12 hours, measured from midnight to midnight, except in system emergencies, as described below. Annual Limit: No more than 200 hours in any calendar year. ESIDENT N /u/wordp/rate/puc 11520 txtar148a.dcx rN Hie 80% a ""N 4T\e wAunee__ . __ +w . w SPS SOUTHWESTERN PUBLIC SERVICE P. 0. Box 1261 Amarillo, Texas 79170 COMPANY ELECTRIC TARIFF Section No. IV Sheet No. IV-147 Original Page 3 of 7 Interruptions lasting for any fraction of an hour shall be credited for one full hour N toward the annual limit. I The Company reserves the right to perform test interruptions, in which the duration of the interruption will not exceed one hour. In the event that either customer has failed to comply with previous interruptions or actual interruptions have not occurred in the prior 12 months which includes the current billing month, the Company reserves the right to perform test interruptions, in which the duration of the interruption will not exceed one hour. Interruption time is measured from the time Customer's load is interrupted to the lesser of, (a) Company restores service to the load, or (b) Company's facilities are capable of restoring service to the load, whether or not Customer's facilities are capable of receiving service, or (c) Company has given permission to Customer to restore service to its load, whichever is less. During system emergencies or when Company has made public pleas to restrict electric energy usage to essential needs because of an area or power pool shortage of electric power and/or energy, interruptible loads served under this Rider may be interrupted continuously without daily limit until such emergency condition has ended. The only interruptions credited toward interruption time limits are those implemented by Customer at the request of Company or those initiated by activation of control equipment by Company, and those resulting from the operation of underfrequency relays installed in connection with instantaneous interruptible service. FUEL COST RECOVERY: The charge per kilowatt-hour of the above rate shall be increased by the applicable fuel cost recovery factor per kilowatt-hour as provided in PUCT Sheet IV-69. TERMS OF PAYMENT: Net in 16 days after mailing date; 5 percent added to bill after 16 days. If the sixteenth day falls on a holiday or weekend, the due date will be the next work day. POWER FACTOR ADJUSTMENT: Bills computed under the above rate will be increased $0.25 for each kvar by which the reactive demand exceeds, numerically, 0.53 times the measured kW demand, and will be reduced $0.25 for each kvar by which the reactive demand is less than, numerically, 0.40 times the measured kW demands. P ESIDENT iL /u/wordp/rate/puc 11520 txtar148a.dcx MOM u+ 11"1 ITV ^^aM%M1nn10%1L1 nr TCVAQ e SOUTHWESTERN PUBLIC SERVICE P. O. Box 1261 Amarillo, Texas 79170 COMPANY ELECTRIC TARIFF Section No. IV Sheet No. IV-147 Original Page 4of7 GENERAL CONDITIONS: N Customer understands that failure to interrupt service when requested threatens the reliability of service to other customers. Company may make intentional interruptions, up to the Annual Limit, at any time and from time to time, at Company's sole discretion. Company will attempt to provide as much prior notice as possible prior to interruptions. Intentional interruptions may be made at any time, in the judgment of Company, when demands for electricity exceeds or are expected to be likely to exceed the Company's available electric supply for whatever reasons including, but not limited to, breakdown of generating units, transmission equipment or other critical facilities; short or long-term shortages of fuel or generation, transmission, and other facilities; and requirement or orders of governmental agencies. CONDITIONS OF SERVICE: Customer desiring instantaneous interruptible service is required to install, .own, operate and maintain necessary monitoring devices and interruption -control equipment including protective devices, on Customer's side of the point of delivery, as reasonably specified by Company. In addition, Company shall install interruption - control equipment on Company's side of point of delivery as reasonably determined necessary by Company to interrupt the interruptible load. All interruption -control equipment shall be under the exclusive control of Company, and the installation and maintenance of such facilities shall be at the expense of Customer. Interruption - control equipment consists of but is not limited to, under -frequency relays, switchgear, remote control and communications equipment including a communications path, timers, trip counters, and/or other devices as specified by Company. Remote control and communications equipment includes equipment necessary to provide instantaneous load information to Company's designated system operating centers. Operation of the equipment will remain under the control of Company and Company reserves the right to inspect and test all interruption - control equipment and may review Customers' maintenance records. Customer desiring noticed interruptible service is required to install, own, operate and maintain communications equipment as reasonably specified by Company to permit timely notification of impending and actual curtailments. At any time when Noticed Interruption is requested, if Customer fails to reduce his load to zero, or in the event that this Rider is attached to the large general service tariffs and Customer fails to reduce his load to the Firm demand established by Agreement, the Company, may, at its sole discretion, discontinue delivery of any or all power to Customer. N ESIDENT /u/wordp/rate/puc_11520 txUr148a.dcx SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original R 0. Box 1261 Amarillo, Texas 79170 Page 5 of 7 ELECTRIC TARIFF NON-COMPLIANCE PENALTY: The Demand Penalty Charge for non-compliance with the requested interruption of service under this tariff is 150% of the difference between the demand charge per KW of interruptible demand and the demand charge per KW for firm demand for the portion of interruptible load that Customer failed to interrupt, but in no event shall the total of the Demand Penalty Charge and rider demand charge exceed what Customer's cost would have been if all the contracted interruptible load had been taken at firm demand during the period the penalty is applied to. For the first occurrence of non-compliance: in the month of non-compliance, Customer is billed the Demand Penalty Charge in addition to the Rider Demand charge. For the second occurrence of non-compliance: in the month of non-compliance, Customer is billed the Demand Penalty charge in addition to the Rider Demand charge. In addition, Customer is billed the Demand Penalty charge for each of the last 12 months or each month back to the previous request for interruption, whichever is less. For the third occurrence of non-compliance: in the month of non-compliance, Customer is billed the Demand Penalty charge in addition to the Rider Demand charge. In addition, Customer is billed the Demand Penalty charge for each month back to the previous request for interruption, plus the Demand Penalty charge for each month prior to the first occurrence of non-compliance back to the previous request for interruption or 12 months, whichever is less. After the third occurrence of non-compliance, Customer is billed on the rate schedule for firm power for the remainder of the contract. A Customer who has experienced a second occurrence of non-compliance and later successfully complies with three consecutive requests for interruption (including any test interruptions measuring the amounts of interruptible load disconnected on request) will be forgiven one prior non-compliance occurrence. The first occurrence of non-compliance after such forgiveness will be considered a second occurrence of non-compliance for determining the level of penalty applicable. The penalties provided above shall not apply to a test interruption if, within a reasonable time not to exceed ten days, Customer determines the reason for the non-compliance and verifies to Company that steps necessary to ensure future compliance have been taken. In the first 12 months of service under this Rider to Customer, Company will not enforce the provisions of this non-compliance section if, on each occasion of interruption, Customer demonstrates the following. &.V44 4z/� P14ESIDENT N /u/wordp/rate/puc_71520 tutar148a.dcx 01101 10% 1 ITII 1Tv nr -rev a & SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original R 0. Box 1261 Amarillo, Texas 79170 Page 6 of 7 ELECTRIC TARIFF 1For Customers with firm and interruptible service measured through the same N meter: Upon interruption, Customer's measured total load is not greater than 1 10% of the contracted firm demand. For Customers with only interruptible service measured through a single meter: upon interruption, Customer's measured interruptible load is not greater than 10% of the highest demand established since service commenced under this rider. Notwithstanding the non-compliance provisions above, if it is determined at any time that the Customer has tampered with any communication equipment or breakers or has bypassed or altered the devices intended to interrupt the load on request, then Customer will be immediately billed on the rate schedule for firm power for the period since the last request for interruption with which customer complied or for the 24-month period just prior to such determination, whichever period is less. CONTRACT TERM: This Rider is being offered on an experimental basis. An agreement for service will be required for an initial term of 4 years when service is first rendered under this Rider and shall continue thereafter until canceled according to the terms of this Rider. Within the first year of service under this Rider, Customer may elect to have all, or portions of, his Interruptible demand converted to Firm demand and upon 6 months written notice to Company, subject to the availability of new firm power service. After 1 year of service under this Rider, Customer may elect to have all, or portions of, his interruptible demand converted to Firm demand, upon 2 years written notice to Company, or sooner if conversion is mutually agreeable, subject to the availability of new firm power service. Interruptible service under this Rider may be reduced or cancelled by Customer at any time by providing Company written notice of cancellation not less than 6 months prior to date of cancellation. Upon conversion of loads or upon cancellation of Interruptible Service under this Rider, Customer may not increase his remaining Interruptible demand, or initiate new service under this Rider, for a period of 12 months following such conversion or cancellation and then only subject to the availability of new Interruptible Service. N &. V; K- /,z � FIAESIDENT /u/wordp/rate/puc_11520 war148a.dcx SPS Section No. IV Sheet No. IV-147 SOUTHWESTERN PUBLIC SERVICE COMPANY Original R 0. Box 1261 Amarillo, Texas 79170 Page 7 of 7 ELECTRIC TARIFF LOAD LIMIT RESERVATION: The maximum total load available under this Experimental Industrial Interruptible Rate Rider is limited to 75 MW to be split between the instantaneous and two-hour notice interruptible service, with each type of service limited to a maximum load of 50 MW. Company in its sole discretion may expand the load an additional 5 MW beyond the 75 MW load limit to [Hake it feasible for a customer to participate where the allocation has reduced the customer's allotment below a necessary unit amount. Any additional expansion of the Experimental Industrial Interruptible load would require Commission approval. Company will accept requests for service under the Experimental Industrial Interruptible Rate Rider the first 90 days following approval of the service by the Public Utility Commission of Texas. If the service requested by all qualifying customers during this period exceeds either the total maximum load of 75 MW or the 50 MW maximum load for either instantaneous or two-hour service, the service shall be allocated among the customers requesting the service or type of serve oversubscribed on the following basis: I=Sum of all customers' nominated Instantaneous Interruptible Loads (in kW) N=Sum of all customers' nominated 2-Hour Notice Interruptible Loads (in kW) IP=Prorata allocation of all customers' Instantaneous Interruptible Loads (in kW) IF = Instantaneous Proration Factor NP=Prorata allocation of all customers' 2-Hour Notice Interruptible Loads (in KW) NF=Noticed Proration Factor IN = Individual customer's nominated Instantaneous Interruptible Load (in kW) NN=Individual customer's nominated 2-Hour Notice Interruptible Load (in kW) Instantaneous If (I+N)>75,000 and N < 2 * I, then IP=(75,000/(I+N)) ` I; Else IP=75,000-(NP * NF) If IP>50,000, then IF=(50,000/IP); Else IF=1.0. Individual customer's allocated Instantaneous Interruptible Load (in kW) = IF * IN Two -Hour Notice If (I+N)>75,000 and I < 2 * N, then NP=(75,000/(I+N)) * N; Else NP=75,000 - (IP * IF) If NP>50,000, then NF=(50,000/NP); Else NF=1.0 Individual customer's allocated 2-Hour Notice Interruptible Load (in kW) =NF * NN N After the initial 90-day period following approval of the service by Public Utility Commission of Texas, requesting customers that qualify for this service will be served on a first come -first served basis up to the 50 MW maximum per type of service and total maximum of 75 MW or the discretionary expanded total for the experiment. N 1?0.004e_ 4�1� ESIDENT /u/wordp/rate/puc 11520 txtar148a.dcx OI101 10% 1 Mel ITv ^^R8808R%0-90%%1 HI- -W�_ . 0. SPS SOUTHWESTERN PUBLIC SERVICE COMPANY P. O. Box 1261 Amarillo, Texas 79170 ELECTRIC TARIFF EXPERIMENTAL OFF-PEAK SCHEDULED INTERRUPTIBLE SERVICE Section No. IV Sheet No. IV-148 Original Page 1 of 3 APPLICABLE: To Transmission voltage level customers in Texas under contract where N facilities of adequate capacity and suitable voltage of 69 kV or higher are adjacent to the premises to be served. This Rate is available to customers having scheduled interruptible capacity of 4,000 kW or more. Not applicable to temporary, breakdown, standby, supplementary, resale or shared service. MONTHLY RATE: Customer Charge: If taken in addition to firm service If not taken in addition to firm service .$50 $639 Energy Charge: 1.0e, per kWh for all kWh used per month under this Rate Schedule. CONTRACT PERIOD: The minimum contract period shall be for four years. MINIMUM CHARGE: Customer's base rate charges in a calendar year shall not be less than the above base rate times the contract scheduled demand times 1,750 hours. CHARACTER OF SERVICE: Three phase, 60 hertz, nominally 69 kV. or above. LINE EXTENSIONS: All costs of equipment, supplies, and labor related to the installation of facilities necessary to make service available from existing facilities shall be paid by the customer in advance. No transformation will be made by the Company at the point of service. LOSS ADJUSTMENT: The meter readings used for billing shall be increased to include all transformation losses when metering is installed on the secondary side of less than 69 kV of any voltage transformation made on the customer's side of the point of service. N &.. 9 � 4 /�Z /� P ESIDENT bctar149.dcx SPS Section No. IV Sheet No. IV-148 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. 0. Box 1261 Amarillo, Texas 79170 Page 2 of 3 ELECTRIC TARIFF FUEL COST RECOVERY: The charge per kilowatt-hour of the above rate shall be N increased by the applicable fuel cost recovery factor per kilowatt-hour as provided I in PUCT Sheet IV-69. POWER FACTOR ADJUSTMENT: Bills computed under the above rate will be increased $0.25 for each kvar by which the reactive demand exceeds, numerically, 0.53 times the measured kW demand, and will be reduced $0.25 for each kvar by which the reactive demand is less than, numerically, 0.40 times the measured kW demands. TERMS OF PAYMENT: Net in 16 days after mailing date; 5 percent added to bill after 16 days. If the sixteenth day falls on a holiday or weekend, the due date will be the next work day. DETERMINATION OF DEMAND: In the event that both firm and scheduled service are measured through the same electric meter, then the firm demand shall be established by Agreement and the Scheduled Demand shall be the difference between the firm demand and the total demand as determined from Company's demand meter for the 30-minute period of customer's greatest kW use during the month. DETERMINATION OF ENERGY: The energy served hereunder will be divided between interruptible service and firm service utilizing the ratio each demand of firm demand and interruptible demand is to the total demand. SPECIAL CONDITIONS: Customer shall be capable of scheduling its electric consumption only during off-peak hours in the months of June, July, and August and the first two weeks of September (the "Summer Peak Season"). Peak hours shall include the hours from 12:00 noon to 10:00 p.m. on weekdays and Saturdays, exclusive of Company holidays (Fourth of July holiday and Labor Day holiday). Off-peak hours shall include all hours of the week not defined as peak hours. Customer shall not schedule consumption under this rider during Summer Peak Season peak hours (the "restricted peak hours") unless Customer has received permission from Company's System Control offices that operation during peak hours is acceptable ("unrestricted peak hours"). Company may, at its sole discretion, require Customer to install interruptible devices on Customer's consuming facilities to ensure that Customer's loads are off during restricted peak hours. These devices shall be considered as a part of Customer's associated line extension facilities. Company may activate the interrupting devices during the restricted peak hour periods or for any electrical emergency throughout the entire year. Company may also, at its sole discretion, require Customer to install under - frequency relays as a part of Customer's associated line extension facilities. ESIDENT N txtar149.dcx SPS Section No. IV Sheet No. IV-148 SOUTHWESTERN PUBLIC SERVICE COMPANY Original P. O. Box 1261 Amarillo, Texas 79170 Page 3 of 3 ELECTRIC TARIFF BUY -THROUGH PROVISION: In the event Company has not granted permission for N Customer to schedule consumption during peak hours, Customer may purchase power and energy during restricted peak hours. However, in any year that Customer elects to buy through restricted peak hours, Customer's total consumption for that calendar year shall be billed solely in accordance with the applicable large general service rate sheet. NON-COMPLIANCE PENALTY: If it is determined at any time by Company that Customer is not in timely compliance with the provisions of this rate, Customer will be immediately billed on the rate schedule for firm power for the period since service was commenced under this rate. REGULATORY APPROVAL: This rate is subject to change and approval in accordance I with the rules and regulations of the Public Utility Commission of Texas. N &. 9, � 4 �/Z� ESIDENT txtar149.dcx