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HomeMy WebLinkAboutResolution - 3602 - Supplemental Agreement - TTU - Electric Service, LP&L - 04_25_1991Prepared by City Legal Dept. �l for Electric Dept. Resolution No. 3602 April 25, 1991 Item #22 3� 'j DGV:dw ,I RESOLUTION j BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: i THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Electric Service Agreement for supplemental electric service by and between the City + of Lubbock, acting through Lubbock Power & Light, and Texas Tech University, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 25th ATTEST: , uity 5ecretery APPROVED AS TO CONTENT: Carroll McDonald, Assistant City Manager of Utilities APPROVED AS TO FORM: ver, FirADona G. st sistan City Attorney day of April , 1991. B . C . McMINIT, MAYOR 0 DGV:dw ELECTRIC SERVICE AGREEMENT SUPPLEMENTAL ELECTRIC SERVICE This agreement is made this 25th day of Contract No. MU642 Resolution No. 3602 April 25, 1991 Item #22 April , 1991, by and between the City of Lubbock acting through Lubbock Power and Light, hereinafter referred to as LP&L and Texas Tech University, hereinafter referred to as the Customer. WITNESSETH• WHEREAS, the Customer has notified LP&L of its intent to install a cogeneration facility on its property for the purpose of generating electric energy for its own use; and WHEREAS, LP&L wishing to encourage innovation in the energy field, is willing to furnish supplemental electric energy to the Customer when the Customer's generating facility is not available or operating. NOW THEREFORE, the Parties agree as follows: 1. LP&L will furnish electric service to the Customer at 480 volt three phase on a supplemental basis for periods when the Customer's own electric facilities are not operating. 2. Prior to installation, the Customer will submit to LP&L a diagram for his generators and all electrical protection devices showing the complete electrical circuit of same. The diagram will indicate, in the judgment of LP&L, that the Customer's system cannot deliver energy to the LP&L system if loss of LP&L voltage occurs. The diagram will also indicate, in the judgment of LP&L, that the Customer's system cannot cause damage to or shutdown of any portion of Lubbock Power and Light's system in the event of failure in the operation of Customer's system. No modification is to be undertaken to Customer's system as diagrammed without the express written approval of Lubbock Power and Light. 3. Upon completion of the facilities, the Customer will notify LP&L, and LP&L will inspect the facilities for compliance with the diagram and will test the operating characteristics of the facilities to assure the safety of LP&L's employees and accuracy of LP&L's meter(s) before authorizing the operation of the facilities. 4. It will be the Customer's sole responsibility to maintain the system, so as to guarantee the operation of the specific safety features which prevent energy from being delivered to LP&L's system during any failure of LP&L's system and the safety features necessary to separate the Customer's system from LP&L's system in the event of an electrical malfunction of Customer's system. - 2 - 5. LP&L may at any time install or modify such equipment as it deems necessary using reasonable and prudent engineering practices to protect the safety of its employees as a result of the operation of the facilities, and the Customer for reasonable costs shall reimburse LP&L for the cost of such installation or modifications upon receipt of a billing statement from LP&L. 6. LP&L will install a detent on the watt-hour meter used to register the electrical energy provided to the Customer and also install a detent on a watt-hour meter to register any electrical energy provided by the Customer to the LP&L system. 7. The Customer will pay LP&L's costs in installing and providing watt-hour meters with detents which will be used in registering the electrical energy LP&L will provide to the Customer and the electrical energy the Customer may provide to LP&L. 8. The Customer will at all times be in compliance with all valid rules and regulations of LP&L and with all rules, regulations and ordinances of the City of Lubbock. 9. LP&L employees will have the right to enter upon the Customer's property at any reasonable time for the purpose of inspecting Customer's facility or servicing LP&L's equipment and making additional tests to ensure continued safe operation and the accuracy of its meter, but such - 3 - inspections shall not relieve the Customer from his obligation to maintain the facilities in satisfactory operating condition. 10. If, in the sole judgment of LP&L, the operation of the Customer's system is determined to be physically detrimental to LP&L, LP&L may require the Customer to disconnect the facilities from LP&L's system and in the event the Customer fails to immediately comply with such notice, LP&L may discontinue supplemental service to the Customer. 11. To the extent authorized by the Laws and Constitution of the State of Texas, the Customer will indemnify, protect and hold harmless LP&L, its officers, agents and employees against all claims, demand, loss, damage, costs, expense and liability resulting from injury to or death of any person or damage to any property, arising out of customers performance of this agreement. 12. The Customer agrees to pay a monthly supplemental charge of $2.70 per KW on the rated demand capacity of the Customer installed cogeneration unit for which LP&L will provide supplemental service. This supplemental charge will be waived during any month in which the Customer's generating facility has been out of service for a length of time sufficient to cause the load capacity, which would have been served by the Customer's generating facility, to register on LP&L's demand meters. - 4 - Energy and Demand provided will be billed under the billing system described in the Energy Agreement between Texas Tech University, Texas Tech Health Sciences Center, City of Lubbock, and Lubbock Power and Light, dated March 21, 1988, with the understanding that energy out of the Tech system into the LP&L system will be metered. Lubbock Power and Light will credit Texas Tech for this energy placed into the LP&L system at a rate equal to LP&L's actual fuel cost adjustment for that month. The credit will be placed on the billing month following the month in which the actual energy flowed into the LP&L system. For the purposes of this agreement, the actual fuel cost adjustment will be the sum of the actual fuel bill, plus any payments made for non -firm energy purchases, plus the portion of firm energy purchases due to a fuel recovery factor, this sum will be divided by the actual energy sales. The resulting factor will be the actual fuel cost adjustment. 13. If the actual supplemental demand capacity exceeds the rated demand capacity, then the actual supplemental demand capacity of the cogeneration unit will determine the monthly supplemental charge for the current billing month plus the supplemental charge for the next eleven months. 14. No assignment of this agreement or of any right accruing hereunder shall be made, in whole or in part, by Customer without the prior consent of LP&L. - 5 - 15. This agreement shall become effective immediately upon the completion of the customers cogeneration facilities and shall continue in effect until terminated (except as to paragraph 10 if applicable) by either party upon a one year written notice given to the other party. In Witness Whereof, the City of Lubbock and Texas Tech University have executed this agreement as of the date first above written. EXECUTED this 25th day of April , 1991. TEXAS T H UNI RSITY BY: ert W. Lawiess sident Title ATTEST: CITY OF LUBBOCK �C Q B. C. M&MINIr, MAYOR T: Rane to Boyd, City Secretary APP VED AS TO CON ENT: re Carroll McDonald, Assistant City Manager of Utilities APPROVED AS TO FORM: --12� 2-� bb,fiald G. Vandiver, First Assistant City Attorney 6 -