ML19284A579
| ML19284A579 | |
| Person / Time | |
|---|---|
| Site: | Grand Gulf  |
| Issue date: | 02/02/1979 |
| From: | Stampley M MISSISSIPPI POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML19284A578 | List: |
| References | |
| NUDOCS 7903130369 | |
| Download: ML19284A579 (150) | |
Text
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION BEFORE THE UNITED STATES NUCLEAR REGULATORY COMMISSION DOCKET NOS. 50-416 AND 50-417 In the Matter of MISSISSIPPI POWER AND LIGHT COMPANY AND MIDDLE SOUTH ENERGY, INC.
AMENDMENT TO APPLICATION FOR LICENSES INFORMATION FOR ANTITRUST REVIEW OF OPERATING LICENSE APPLICATION Mississippi Power & Light Company (MP&L) for itself and on behalf of Middle South Energy, Inc. (MSE)
(hereinafter sometimes jointly referred to as " Applicants")
hereby files this Amendment to their Application for Licenses, pursuant to the provisions of the Atomic Energy Act of 1954, as amended, and the Nuclear Regulatory Commission's Rules and Regulations.
This Amendment consists of the responses of Appli-cants to the specific items listed in the Nuclear Regulatory Commission's Regulatory Guide 9.3, "Information Needed by the AEC Regulatory Staff in Connection with its Antitruct Review of Operating License Applications for Nuclear Power h
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ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION Plants," and to the related questions about MP&L's dealings with the City of Clarksdale asked by the Nuclear Regulatory Commission in its letter of January 10, 1979, from Mr. Argil Toalston to MP&L.
Respectfully submitted, MISSISSIPPI POWER & LIGHT COMPAh"I By
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Stampley g/
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Vice President Date:
February 2 1979 Electric Building P.O. Box 1640 Jackson, MS 39205 p
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION STATE OF MISSISSIPPI COUNTY OF HINDS N.
L.
Stampley, being duly sworn, states that he is a Vice President of Mississippi Power & Light Company, and that he is authorized on the part of said Conipany and of Middle South Energy, Inc. to sign and file with the Nuclear Regulatory Commission this Amendment to Application for Licenses; that he signed the foregoing Amendment to App'.ica-tion for Licenses as Vice President of Mississippi Power &
Light Company and as agent for Middle South Energy, Inc.,
and that the statements made and the matters set forth therein are true and correct to the best of his knowledge, information, and belief.
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STAMPL'EY j/
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SUBSCRIBED'AND SWORN TO before me, a Notary Public, in and for the County and State above named, this c2
day of
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1979.
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NOTARY PUBLIC My Commission Expires:
g-7-30 ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION RESPONSE TO ITEMS IN REGULATORY GUIDE 9.3 NEEDED BY THE NRC IN CONNECTION WITH ITS ANTITRUST REVIEW OF APPLICANTS' OPERATING LICENSE APPLICATION FOR THE GRAND GULF NUCLEAR STATION la.
Anticipated excess or shortage in generating capacity resources not expected at the construc-tion permit stage.
Reasons for the excess or shortage along with data on how the excess will be allocated, distributed, or otherwise utilized or how the shortage will be obtained.
RESPONSE; In 1981 the Middle South Utilities System reserve is forecast to be 20.9%, assuming all generating units now under construction are completed on time.
This amounts to 624 MW in excess of the required 16% reserve.
As the System load increases, this excess will disappear vithin 2 years.
The present forecast indicates that there will be no generation in excess of planned reserves in 1984 after Grand Gulf Unit
- 2 becomes operational.
When the application for construction permits was submitted in 1972, the forecast for peak demand in 1981 for the Middle South System was 17,050 MW.
The present forecast for 1981 is 13,249 MW.
The schedule for capacity additions was revised to reflect the present forecast.
Hcwever, if the schedule for Grand Gulf Unit #1 is not maintained, the Middle South System will fall below the required reserves in 1981.
There are no firm plans to allocate the expected excess in capacity for 1981.
This is primarily due to the uncertainty surrounding any construction schedule.
A slippage in commercial operation of Grand Gulf #1 or of other large generating units presently under construction in the System of just a few months would result in the elimination of this excess capacity.
Therefore, it would not be prudent for the Middle South System to enter into an agreement, at the present time, whereby it would be bound to supply the expected excess.
However, as construction proceeds and schedules becomes more certain, consideration will be given to offering to sell the excess capacity for such times as it is not needed in the Middle South System.
ANTITRUST INFORMATION GRIsND GULF NUCLEAR STATION lb.
New power pools or coordinating groups or changes in structure, activities, policies, practices, or membership of power pcols or coordinating groups in which the licensee was, is, or will be a participant.
RESPONSE
A change has occurred in the administrative practices of the South Central Electric Companies (SCEC), an association of eleven investor owned utilities formed for the purpose of seasonal diversity capacity exchange between it and the Tennessee Valley Authority (TVA).
The administrative office of the SCEC was closed, and the duties of this office were assigned to the Middle South Utilities System Operator acting as SCEC Coordinator.
There has been an increase in membership of the Southwest Power Pool of which HP&L is a member.
An updated list of the members is attached hereto as Exhibit A.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION lc.
Changes in transmission with respect to (1) the nuclear plant, (2) interconnections, or (3) connections to wholesale customers.
RESPONSE
Interconnections have been established between MP&L and each of the electric utilities owned by'the City of Clarksdale, Mississippi, and the City of Grdenwood, Mississippi.
Both of these interconnections were made at 115 KV.
Construc-tion is currently in progress on facilities to provide a 115 KV interconnection between MP&L and South Mississippi Electric Power Association (SMEPA).
This interconnection is expected to be completed during 1979.
As of December 1972, iip &L maintained 73 points of delivery with wholesale customers.
However, this total included 13 delivery points to Capital Electric Power Association which has subsequently been purchased by MP&L.
Therefore, the points of delivery not counting Capital Electric Power Association as of December 1972 totaled 60.
Presently MP&L has 66 points of delivery with wholesale customers.
The transmission olanned for the Grand Gulf Nuclear
~
Station at the construction permit stage included a 500 KV line to the Franklin EHV Substation, a 500 KV line to the Baxter Wilson EHV Substation, and a 500 KV line to the El Dorado EHV Substation.
The plans are now to build the Franklin and Baxter Wilson lines for operation of Unit #1.
However, rather than cuild the line to El Dorado, Arkansas, a 500 KV line will be constructed from Grand Gulf to a point on the present Baxter Wilson EHV Substation to Ray Braswell EHV Substation 500 KV line for operation of Unit #2.
- Thus, the third line will be from Grand Gulf to Ray Braswell EHV Substation.
The transmission as presently planned is shown on the map which is attached hereto as Exhibit B.
ANTITRUST INFORMATICH GRItND GULF NUCLEAR STATION ld.
Changes in the ownership or contractual allocation of the output of the nuclear facility.
Reasons and basis for such changes should be included.
RESPONSE
Following the requests of SMEPA and West Mississippi Electric Power Association (WMEPA) of February 7, 1972 and August 15, 1972 respectively for narticipation in the owner-ship of Grand Gulf, representatie, of MP&L, MSE, SMEPA, and WMEPA met to negotiate such an ari.1gement.
From these negotiations, we anticipate that approximately 10% of the capability of Grand Gulf will be shared and owned by SMEPA and WMEPA.
Negotiations are in the final stages and the closing is scheduled for July 1979. (See response to item 1(h) for further details.)
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION le.
Changes in design, provisions, or conditions of rate schedules and reasons for such changes.
Rate increases or decreases are not necessary.
RESPONSE
MP&L's current rate schedules for wholesale service to electric power associations and municipally owned utilities, which are dependent on MP&L for their power requirements, are REA-15 and MW-15 respectively and are attached hereto as Exhibit C and Exhibit D.
These rate schedules became effective as of December 1, 1976 pursuant to an order of the FERC, dated August 31, 1977, in Docket ER76-830.
Rate schedules REA-ll and MW-ll filed as attachments B and D to question 14 of the antitrust information supplied in Dockets 50-416 and 50-417 on September 20, 1972 were rate schedules based on energy charges only.
The currently effective rate schedules consist of charges relating to both demand and energy, a design that more appropriately represents costs incurred by the supplying utility.
These changes were the result of a settlement agreement reached between MP&L and the electric power associations and municipally-owned utilities purchasing power from MP&L and concurred in by the FERC, after receiving top sheets of its staff.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION lf.
List of all (1) new wholesale customers, (2) transfers from one rate schedule to another, including copies of schedules not previously furnished, (3) changes in licensee's service area, and (4) licensee's acqusitions or mergers.
RESPONSE
~
(1)
On January 23, 1976, MP&L began serving at wholesale the Town of Itta Bena, Mississippi (FERC Rate Schedule NO. 238).
New points of delivery to the several electric power associations are:
!!PSL ELECTRIC POWER POINT OF RATE SCHEDULE ASSOCIATION DELIVERY FERC NO.
Delta EPA Acona 233 Capline 231 Stringtowa 225
!!agnolia EPA Gillsburg 227 East licComb 244 Southern Pine EPA ttonticello 226 Sup 5 Southwest fliss EPA Peetsville 240 Twin County Greenville Industrial 242 Yazoo Valley EPA
!!idway 237 (2)
There have been no transfers from one rate schedule to another.
(3)
Licensee's certificated service area was changed in 1973 to include the Town of Shaw, Mississippi (MPSC Docket No. U-2629) and the service area previously awarded to Capital Electric Power Association in Mississippi Public Service Commission Docket No. U-84.
(4)
Effective April 1, 1973, MP&L acquired by purchase Capital Electric Power Association and on August 20, 1973, pursuant to a lease agreement, began serving at retail the Town of Shaw, Mississippi formerly a municipally operated utility.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION 19 List of those generating capacity additions committed for operation after the nuclear facility, including ownership rights or power output allocations.
The following is a list of those generating capacity additions committed for operation within the Middle South Utilities System after Grand Gulf Unit #1.
DATE OF UNIT RATING SER\\' ICE OWNERSHIP 1.
White Bluff SES Arkansas Power & Light (420 F1W)
Unit //2 700 ?!W
?!ay 1981 City of Jonesboro, Ark. (35 FIW)
Arkansas Electric Cooperative Corp. (245 tlW) 2.
Waterford Unit f/3 1110 f:W Nov. 1981 Louisiana Power & Light 3.
Independence SES Unit ill 700 flW Jan. 1983 Arkansas Power & Light (420 BlW)
City of Jonesboro, Ark. (35 B1W)
Arkansas Electric Cooperative Corp. (245 !!W) 4.
Grand Gulf Nuclear Station Unit, r!2 1250 !!W Jan. 1984 !!iddle South Energy, Inc.
5.
Independence SES Unit //2 700 flW Jan. 1985 Arkansas Power & Light (420 t1W)
City of Jonesboro, Ark (35 !!W)
Arkansas Electric Cooperative Corp. (245 FIW) 6.
!!P Coal Unit ill 700 b1W Jan. 1985 !!ississippi Power & Light Co.
7.
Coal Unit 66 700 flW Jan. 1986 Arkansas Pc=:er & Light (420 ?!W)
City of Jonesboro, Ark. (35 !!W)
Arkansas Electric Cooperative Corp.
(245 flW) 8.
Coal Unit !/ 7 700 ?!W Jan. 19S6 Louisiana Power & Light Corapany 9.
Coal Unit #8 700 ?!W Jan. 1987 tIiddle South Energy, Inc.
- 10. Coal Unit /!9 700 !!W Jan. 1988 Fliddle South Energy, Inc.
- 11. Coal Unit !/10 700 !!W Jan. 1988 ?!iddle South Energy, Inc..
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION lh.
Summary of requests or indications of interest by other electric power wholesale or retail distributors, and licensee's response, for any type of electric service or cooperative venture or study.
RESPONSE
Early in 1972, MP&L publicly announced _its plans to build the Grand Gulf Nuclear Station.
Approximately two weeks after this public announcement, on February 7,
- 1972, South Mississippi Electric Power Association (SMEPA) informed MP&L by letter that it had heard of MP&L's plans to construct the Grand Gulf Nuclear Station from press reports and requested ownership participation in the plant.
Shortly thereafter on July 17, 1972, the Justice Department, in carrying out its antitrust review responsibilities under the Atomic Energy Act of 1954 and in anticipation of MP&L's application for construction permits wrote each utility in Western Mississippi, including electric cooperatives and municipalities, asking whether any of them were interested in, among other things, ownership participation in the Grand Gulf Nuclear Station.
As a result of the Justice Department's inquiry, West Mississippi Electric Power Association (WMEPA) on August 15, 1972, wrote MP&L requesting ownership participation in the Grand Gulf Nuclear Station.
The City of Clarksdale answered the Justice Department's letter on August 25, 1972, but expressed no interest in participating in the ownership of the facility.
In March, 1973, Yazoo City made inquiries about participating in the ownership of the Grand Gulf Nuclear Station during talks'with MP&L concerning an interconnection.
While an interconnection agreement was entered into in September, 1975, with them, Yazoo City expressed no further interest in acquiring a participation share of the Grand Gulf Nuclear Station.
In August, 1973, the City of Greenwood expressed brief interest in an ownership interest in the Grand Gulf Nuclear Station, but expressed no further interest after being furnished cost data by MP&L.
Early in 1976, MP&L and MSE began active discussions with SMEPA to sell them a 9% interest in the Grand Gulf Nuclear Station and with WMEPA to sell them a 4% interest in the Grand Gulf Nuclear Station.
After further discussions, WMEPA and SMEPA agreed to work toward a mutually satisfactory division of a 10% share of the Grand Gulf Nuclear Station.
The negotiations with WMEPA and SMEPA are now in the final stages with closing scheduled for mid-1979.
WMEPA will not ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION make its final decision to participate with SMEPA in the purchase of an interest in the Grand Gulf Nuclear Station until after it has completed its cost analysis of the purchase, which is estimated to be in February 1979.
The agreements being negotiated with SMEPA and WMEPA are:
1.
A Sale, Construction and Ownership Agreement with MSE, which provides for the sale of an undivided ownership interest in the completed portion of the generating plant and the financing of construction of the remainder of the plant.
2.
An Operating Agreement with MSS, for the operation of the units after their completion.
3.
A Substitute Power Agreement with MP&L providing that in certain cases where Capacity and Energy are not available to SMEPA and WMEPA from the Grand Gulf Nuclear Station, such Capacity and Energy will be made available to them by MP&L.
4.
A Coordination Agreement with MP&L to imple-ment and administer the Substitute Power Agreement, the Interconnection Agreement, and any other future agreements between SMEPA or WMEPA and MP&L.
5.
An Interconnection Agreement with MP&L estab-lishing interconnections between SMEPA and MP&L systems and providing each other with certain mutual support and trans-mission services, including the supplying of emergency service, maintenance service, economy energy, transmission delivery service, and bulk transmission service.
In con-junction with the negotiations with WMEPA and SMEPA for an ownership interest in the Grand Gulf Nuclear Station, MP&L also has offered to SMEPA and WHEPA an ownership interest in two 700 MW coal fired steam generating plants proposed to be built by MP&L in Mississippi in the mid to late 1980's.
In late 1975 and early 1976, MP&L and the City of Clarksdale negotiated an interconnection agreement, which was entered into on February 13, 1976.
Although Clarksdale indicated that it thought of this interconnection agreement as an outgrowth of MP&L's policy commitments in the Grand Gulf Nuclear Station's construction permits, the City of Clarksdale expressed no interest whatever in an ownership interest in the Grand Gulf Nuclear Station during these discussions.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION However, on December 8, 1976, three and one-half years after publication of the Grand Gulf policy commitments in the Federal Register, R. W. Beck and Associates (Beck) informed MP&L that it was conducting an investigation of power supply alternatives for the city of Clarksdale.
Beck asked MP&L to provide financial information and certain documents concerning tne Grand Gulf Nuclear Station and asked whether MP&L would be willing to sell ownership or unit power participation in Grand Gulf to the City of Clarks-dale.
By letter of January 17, 1977, MP&L assured Beck that it fully intended to comply with the policy commitments and provided Beck with the requested data and documents.
On July 19, 1977, the City of Clarksdale wrote MP&L stating that it had not been offered aa ownership interest in the Grand Gulf Nuclear Station and asking how much capacity did MP&L anticipate it would offer to the City of Clarksdale.
On October 18, 1977, the City of Clarksdale asked MPau for an offer of participation, stating it could use at least 10 MW.
There have been subsequent meetings and communica-tions between MP&L and the City of Clarksdale and MP&L and the City of Greenwood directed at developing a transmission service schedule and partial requirements wholesale rates.
These negotiations have resulted in MP&L filing supplements to the existing Interconnection Agreements between the City of Clarksdale and MP&L and the City of Greenwood and MP&L.
Under the supplements filed with the Federal Energy Regulatory Commission on August 28, 1978, MP&L will provide certain transmission services to the Cities of Clarksdale and Greenwood.
The Cities of Clarksdale and Greenwood, SMEPA, and the Municipal Energy Agency of Mississippi have petitioned to intervene in this consolidated proceeding.
SMEPA's interest in the filing is that the same principles of ratemaking for transmission service for the City of Clarksdale wil' also apply to SMEPA under its Interco'nnection Agreement buing negotiated with MP&L.
With respect to an ownership interest in the Grand Gulf Nuclear Station by the City of Clarksdale, the parties have reached a stalemate.
The City of Clarksdale considers the Grand Gulf policy commitments to be open-ended and demands that MP&L unilaterally draw up a binding offer of ownership participation in the Grand Gulf Nuclear Station.
MP&L and MSE have taken the position that Clarksdale, SMEPA and WMEPA were each afforded the same opportunity to participate.
While SMEPA and WMEPA made timely requests for participation Clarksdale did not and is, therefore, not now entitled to ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION buy a portion of the Grand Gulf Nuclear Station.
At the suggestion of the Antitrust Division of the Department of Justice, MP&L and MSE wrote the Department of Justice on September 25, 1978 asking for an interpretation of Paragraph 4(a) of the Grand Gulf license conditions which would exclude Clarksdale from ownership participation in the Grand Gulf Nuclear Station on the grounds that its request for participa-tion was untimely.
The City of Clarksdale on September 22, 1978 wrote requesting the Department to review certain information to determine whether MP&L had acted toward the City of Clarksdale in a manner inconsistent with the antitrust laws and the Grand Gulf antitrust license conditions.
The City of Kosciusko, on May 9, 1978, and the City of Canton, on June 20, 1978, wrote MP&L requesting that the existing Municipal Wholesale Electric Service Agreement between each of them and MP&L be amended or terminated and renogotiated to convert each of the cities from a full requiremmim customer to a partial requirements customer and to permit each of them to sell, assign, or exchange electric energy with other entities in Mississippi with which they may cooperate under the provisions of the Mississippi Joint Municipal Electric Power and Energy Act.
MP&L responded to Kosciusko on June 1, 1978, and to Canton on July 10, 1978, informing them that MP&L does not have a filed, partial requirements rate, but would give consideration to the development of new rates applicable to the changed charac-teristics of the service requirements of the two cities and to making necessary amendments to the existing Agreement, and would meet with each of them to develop a plan to insure an adequate and dependable source of power within the state of Mississippi in the future.
On November 21, 1978, the Municipal Energy Agency of Mississippi (MEAM), which was recently organized by the Mississippi Cities of Clarksdale, Greenwood, Yazoo City, Leland, Kosciusko, Canton, Durant and Itta Bena, wrote MP&L requesting an offer from MP&L to sell it an ownership interest in the Grand Gulf Nuclear Station of at least 2.48% (approxi-mately 62 megawatts).
A copy of this letter is attached hereto as Exhibit E.
MP&L responded to MEAM's request for an offer of an ownership interest in Grand Gulf on December 14, 1978, stating that MEAM's request for an ownership interest in Grand Gulf, made after the facilitiy wat half completed, was untimely, but that MP&L would discuss with MEAM (1) the possibility of joint participation between MP&L and the members of MEAM in a 700 MW coal-fired power plant ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION being constructed by MP&L, which is expected to begin operation in 1985; (2) the development of an interconnection agreement between MP&L and the members of MEAM; and (3) a plan to assure the customers of MP&L and of MEAM's members an adequate and dependable source of power at the lowest possible cost.
A copy of this letter is attached hereto as Exhibit F.
See Exhibits K, L,
M, N,
O and P hereto for copies of other relevant correspondence.
e,
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION 2.
Licensees whose construction permits include conditions pertaining to antitrust aspects should list and discuss those actions or policies which have been implemented in accordance with such conditions.
RESPONSE
Information with regard to this item has been discussed in the Response to Item 1(h) above and'to the questions of the NRC in its letter of January 10, 1979, below.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION connection of the systems is a single 500,000 volt line segment.
The City of Clarksdale has indicated to MP&L that it wants firm service over this path and is unwilling to take service on any other basis.
MP&L has represented to the City of Clarksdale that MP&L will wheel power for the City of Clarksdale once the power is made available at MP&L's transmission system.
The City of Clarksdale presently has available the option of arranging to use the facilities of Louisiana Power
& Light Company to get power to MP&L's transmission system, and MP&L is working on a special Interconnection Agreement with GSU, as discussed above, which should provide the City of Clarksdale with ancther option.
Additionally, MP&L has several interconnections with TVA, Arkansas Power & Light Company and Mississippi Power Company, which could be used by the City of Clarksdale to get power to MP&L's transmission system.
Transmission Service Schedule E would apply where delivery was made to MP&L's transmission system using any of the options discussed above.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION RESPONSE TO QUESTIONS ASKED BY THE NRC IN ITS LETTER TO MP&L DATED JANUARY 10, 1979, IN CONNECTION WITH THE NRC'S ANTITRUST REVIEW OF APPLICANTS' OPERATING LICENSE APPLICATION FOR THE GRAND GULF NUCLEAR STATON 1.
What is the status of transmission Service schedule E of Rate Schedule FERC No. 243?
Has the transmission schedule been made effective?
If not, why not?
If so, has Clarksdale used the transmission schedule?
If not, has this been because Clarksdale did not choose to use the service or because it was prevented from using the service due to some requirement?
If the latter, please explain.
RESPONSE
Transmission Service Schedule E of the Inter-connection Agreement between Mississippi Power & Light Compan', (MP&L) and the City of Clarksdale (FERC Schedule No.
243 ) was tendered to the FERC for filing on August 28, 1978, with MP&L's request that the thirty days' notice provision of the Commission's regulations be waived in order that this service would be available immediately to the City of Clarksdale
[see FERC Notice (September 6, 1978) in Docket NO. ER 78-583).
A copy of Transmission Service Schedule E is attached hereto as part of Exhibit J.
The City of Clarksdale is an intervenor in this Docket, which is scheduled to be set for public hearing concerning the justness and reasonableness of the proposed rate.
After a one-day suspension, the rate was accepted for filing and has been available for use by the City of Clarksdale since August 28, 1978.
Clarksdale has chosen not to use this schedule.
The City of Clarksdale has taken the position that the use of Louisiana Power & Light Company as an existing contract intermediary for the transfer of power between Gulf States Utilities (GSU) and MP&L (as is the case in all other transactions between the parties) is unnecessary.
The question of whether Louisiana Power &
Light Company should be compensated for such use of their facilities is also in issue.
MP&L is in the process of negotiating a special Interconnection Agreement with GSU to provide for permissive use of GSU's facilities between the City of Lafayette and the transmission line of MP&L which terminates at the Mis-sissippi state line.
Such an arrangement would be limited to interruptible service, since the only point of inter-,
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION 2.
Does MP&L plan to enter into an interconnection agreement with Gulf States Utilities (GSU)?
If so, what is the anticipated schedule for the filing of such an agreement?
Please furnish us with a draft or final agreement if available.
How are interchanges between HP&L and GSU arranged and accounted for in the absence of an inter-connection agreement?
How is TVA diversity interchange to and from GSU scheduled and accounted for?
How is MP&L compensated for TVA diversity interchange to and from (a) GSU and (b) Louisiana Power and Light (LP&L).
Is TVA diversity interchange scheduled between GSU and MP&L?
If so, what scheduling change is required when the 500 KV interconnection between MP&L and GSU is out of service? Are interchanges scheduled hourly between each of the Middle South Utilities or are the inter-changes merely accounted for en an after-the-fact basis?
RESPONSE
MP&L is negotiating a possible Interconnection Agreement with GSU and intends to enter into such an agree-ment if both parties can agree on mutually satisfactory provisions.
The schedule for filing of such an agreement depends on the progress of the on-going negotiations.
A draft of the agreement at the present stage of negotiations, showing changes most recently proposed by MP&L, is attached hereto as Exhibit G.
There are no interchanges scheduled between MP&L and GSU at present.
As is the case in normal interconnected system operations, power transfers are scheduled and accounted for on a " net" basis'between control areas.
In this case, the control areas are the Middle South System (MSS) and GSU.
The TVA diversity interchange is handled as any normal transaction between control areas.
It is scheduled and accounted for as a MSS-GSU transaction.
The TVA diversity interchange does not involve any compensation.
Facilities constructed for implementation of the interchange are equalized among the participants.
Power and. energy are strictly on a pay-back basis and no monetary payments are involved.
TVA diversity interchange is not scheduled between GSU and MP&L.
There are no hourly schedules of interchanges between the Middle South Utilities system companies.
The system is operated on a pool basis.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION 3.
Mr. Farkas in his September 25, 1978 letter to Mr.
Shenefield states that if more than 10 percent of Grand Gulf is sold to unaffiliated utilities, then the proceeds of such excess sales may have to be applied to a proportionate share of outstanding bonds.
What is meant by a proportioned share?
If the proceeds of the excess sales were one million dollars, what proportion of this would, at the lenders option, go to the retirement of outstanding bonds?
What outstanding bonds would be retired--those issued with respect to financing Grand Gulf or others?
Since the excess proceeds (funds) would be ccming from others, how would MP&L be injured?
Would the lenders be apt to exercise an option that would be injurious to MP&L and therefore themselves?
Please provide by illustration the magnitude of the potential injury to MP&L using as an example an excess proceeds of one million dollars above the 10 percent limit.
RESPONSE
It is assumed the three references to "MP&L" in the above Part 3 were intended to be to "MSE."
MSE is the issuer of the Bonds, not MP&L.
As part of the financing of the Grand Gulf Nuclear Station, MSE sold $400,000,000 of intermediate term First Mortgage Bonds.
These are the only First Mortgage Bonds which MSE presently has outstanding.
MSE has no substantial assets other than its interest in Grand Gulf.
If MSE sells in excess of 10% of Grand Gulf, the proceeds would be subject to the following provision of MSE's First Supplemental Indenture:
Section 5.05.
Redemption Upon Certain Sales of Undivided Interest.
In the event that proceeds shall be deposited with the Corporate Trustee pursuant to the provisions of Section 4.07(b) hereof, (b) To the extent such proceeds arise from the disposition of. undivided interests in the Grand Gulf Project which cumulatively exceed ten per centum (10%) of such electrical generation capacity, the Corporate Trustee shall promptly after receipt of such proceeds notify the holders of the bonds of the First Series then Outstanding that, if the holders of sixty-six and two-thirds per centum (66-2/3%) in aggregate principal amount of bonds of the First Series then Outstanding shall, within sixty (60) days after the date of such notice, make a request on the Corporate Trustee sixty ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION 4.
It is our understanding thdt MP&L has termincted the partial requirements rate schedule and service to Yazoo City.
Please supply a copy of that rate schedule, if available.
Did Yazoo City contest the termination? Are the Cities of Clarksdale, Greenwood and Yazoo in the
" Western Mississippi Area" as defined in the Grand Gulf antitrust license conditions?
Has MP&L filed with FERC or otherwise drafted or prepared a rate schedule suitable for full requirement and/or partial requirement service to entities in the " Western Mississippi Area?"
If so, please supply a copy.
If not, does MP&L propose to prepare one?
RESPONSE
We assume that the rate schedules you refer to were the filed schedules, which were withdrawn five years ago, for the exchange of reserved capacity and off-peak energy under MP&L's Interconnection Agreement with Yazoo City, dated September 26, 1962.
These schedules were fixed rate schedules (except for fuel) and were cancelled by MP&L because changing costs due to inflation resulted in these fixed rates imposing an unfair burden on other MP&L customers.
The withdrawal of these rates and the substitution of others is a normal function and was subject to the filins and review requirements of the Federal Power Commissic The City of Yazoo City did not intervene in the procecding (FPC Docket No. E-8841).
Copies of these rate schedules are attached as Exhibit H and Exhibit I.
The Cities of Clarksdale, Greenwood and Yazoo City are " entities" in the " Western Mississippi Area" as such terms are defined in'the Grand Gulf license conditions.
MP&L has executed an Interconnection Agreement with each of the named entities in substantially the form of the Agreement with the City of Clarksdale, attached hereto as Exhibit J.
These Interconnection Agreements contain rate schedules under which these entities may purchase either full require-ment or partial requirement service.
Under schedules to the Interconnection Agreements, the Cities may purchase Reserve Capacity from MP&L to provide capacity under emergency conditions and during periods of scheduled maintenance of generating units; (2 ) purchase Firm Capacity from MP&L to either supplement or supplant their generating capability; and (3) purchase Economy Energy from MP&L on a " split the savings" basis.
Each of these schedules and the Interconnection Agreements were executed by officials of the City or of the municipal utility, as the case may have been.
ItNTITRUST INFORMATION GRAND GULF NUCLEAR STATION (60) days following the mailing of such notice, the Corporate Trustee shall apply the pro-rata share of the holders of the First Series bonds then Outstanding (based upon the ratio of the principal amount of the bonds of the First Series then Outstanding to the principal amount of all bonds outstanding) in such proceeds (but only to the extent such proceecis arise from the dis-position of in excess of per centum (10%) 6f such capacity), te the redemption of First Series bonds then Outstanding, and an appropriate prin-cipal amount of the bonds of the First Series then Outstanding shall be deemed to have been called for redemption as provided below.
The Corporate Trustee shall promptly notify the Com-pany and all the holders of bonds of the First Series then Outstanding in writing if such re-quest has been received by it from the holders of at least sixty-six and two-thirds per centum (66-2/3%) in aggregate principal amount of bonds of the First Series then Outstanding, and all the appropriate principal amount of bonds of the First Series then Outstanding will be deemed called for redemption sixty (60) days following the date of such notice by the Corporate Trustee.
If no such request from the holders of at least sixty-six and two-thirds per centum (GG-2/3't) in aggregate principal amount of bonds of the First Series then Outstanding has been received by the Corporate Trustee, then such proceeds shall be applied as provided in Section 11.05 of the Indenture.
Each separate sale of an undivided interest in Grand Gulf by MSE in excess of 10% would trigger a potential redemption.
Only the monies received for the portion of Grand Gulf representing more than 10% of its electrical generation capacity would have to be applied to the redemp-tion of Bonds.
The redemption would be at par and spread pro rata across all Bonds in accordance with procedures specified in the Mortgage.
For example, if the money received from a sale for the portion of Grand Gulf respecting more than 10% of its generating capacity was one million dollars, the entire one million dollars would have to be used to retire outstanding First Mortgage Bonds.
ANTITRUST INFORMATION GRAND GULF NUCLEAR STATION The transmission rate filing presently in effect, but subject to a hearing by the FERC, gives the Cities the added option of using MP&L transmission lines (capacity pernitting) if they can make more attractive arrangements with other systems to purchase power.
We feel that these arrangements with the Cities of Clarksdale, Greenwood, and Yazoo City give them adequate alternatives for supplementing or supplanting their power supplies by either purchase from MP&L or from others.
MP&L has offered the Cities of Clarksdale, Green-wood, and Yazoo City an ownership share in a proposed coal-fired plant in DeSoto County, Mississippi, which is scheduled to be operational in 1985.
Recently, MP&L received letters from the Municipal Energy Association of Mississippi and from the City of Greenwood wishing additional information about the coal-fired plant.
A copy of the letter from Greenwood Utilities and MP&L's response thereto are attached hereto as Exhibit K and Exhibit L.
[See Response to Reg.
Guide 9.3, item 1(h) and the attached Exhibits E and F for additional information.]
Attached hereto as Exhibits M and N, respectively, are a copy of Mr. McDiarmid's letter to Ms. Urban, dated September 22, 1978; and a copy of Mr. Farkas' letter to Ms.
Urban, dated October 16, 1978, which are relevant to this Amendment to Application for Licenses.
You indicated in your letter of January 10, 1979, that you have been furnished a copy of Mr. Farkas' letter to Mr. Shenefield, dated September 25, 1978, and of Mr. Farkas' letter to Ms. Urban, dated November 17, 1978.
Accordingly, copies of this correspondence has not been attached.
A t tachment 1 iifjji)l'l
k L./ \\ i i i L.) :
SOUTIIWEST POWER POOL MEMBER SYSTEMS S
1.
Associated Electric Cooperative, Inc.
25.
Missouri Public Service Company 2.
Arkansas Electric Cooperative Corp.
26.
Missouri Utilities Company 3.
Arkansas-Missouri Power Company 27.
New Oricans Public Service, Inc.
4.
Arkansas Power & Light Company 28.
Oklahoma Gas & Electric Company 5.
Board of Public Utilities 29.
Public Servic.e Company of Oklahoma 6.
Cajun Electric Power Cooperative, Inc.
30.
St. Joseph Light & Power Company 7.
Central Kansas Power Company 31.
Southwestern Power Administration 8.
Central Louisiana Electric Company 32.
Southwestern Electric Power Company 9.
City of Chanute 33.
Southwestern Public Service Company 10.
City of Cof feyville 34.
Sunflower Electric Cooperative, Inc.
11.
City of Winfield 35.
Western Farmers Electric Cooperative 12.
City Power & Light Department 36.
Western Power Division, Central Telephone & Utilities Corp.
13.
City Utilities of Springfield 37.
West Texas Utilities Company 14.
Empire District Electric Company 38.
City of Alexandria, Louisiana 15.
Grand River Dam Authority 16.
Gulf States Utilities Company 17.
Kansas City Power & Light Company 18.
Kansas Gas and Electric Company 19.
Kansas Power & Light Company 20.
Lafayette Utilities Systems 21.
Louisiana Power & Light Company 22.
Mississippi Power & Light Company 23.
Missouri Edison Ccmpany 24.
Missouri Power & Light Company
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L MISSISSIPPI POWER Uc LIGHT COMPANY FILED WITH:
prg
/wm bh,h t y: Nom % c.t the 13,00 vr f t bees cf Com-any's j
FEDERAL POWER COMMISSION y-l l 5,000 /13,mo Wt sub.tatkns; service may be delhered (FcJcrd Ercrgy P~p, t: ry Ccormw ?n) at tibcr reints no Cr mpany's, ytcm where in Company % l judvent gdeqata capacity is avadaUe at suhL'e vdrace
/,*.. m pi Pcv e & L j.t Corrr iry P.m Na.102.
f r the dc.ncry r,f tLe :crv,cc deved j
Medde Cer.mts e f: Ore Swt Date Fi'ed: Auwt 49.1977.
I Date Ef fectne: D:cW cr 1,1976.
l lilND AND CLASS CF SERVICE: RECALE SERVICE TO ELECTRIC POWER ASCOEIATIONG P ATE SCH EDU LE R E A.1 S APPLICATION To ila trie u n n e supp?n d Ior ac:. ale encetly t uhicute ovis 1 y 1:fr(tric lbux r A m Ltio:n m nin d u.ah r Ch..pter I N 1.
Cen"ral 1,aws of.Mie
'pi 19%, and a:ar nl:m r.ts thercti u hn. h have c:a i. ntol a la >a i (:ontra t ar ! Aur. < meat u!!h th Il nal F.la trif icat.on Adudni't rat un, an A e-nt y of th-Un.ted Sta'a s Go s crmne nt, u hrn Asw.ation im c3rcuMI Cov.pany's A m er.nent for l'nu hc se of lir.'. < r.
at 1.oit h m o f t ho As m ia'i vi s sysS m < ano, t d to the p, int of d, livery desie-Senh'isfio ilu i niiie eh t tiie n epdicinenh of 11 nal: ! in the Aarrue nt for l'urc hre of iburr. Seivk e undcr this F... t e M lp du.e k imt a pp'.it..h k to s t.n e !h) or mpph me ntary sen ire to lead suppli d by otiai s or to parallel r per:. tion with a ny som te of supply, if Assosi tion (Je s so vii e at mom l'un ene point of delivery, a segnal" ato i ment u i'l be cu < i.'a ? an I se parat
- 1. ills n i!! I c
< moputeil inr u is k e at e m h sm h pan'.
TYPE OF SERVICE asaiiabl at the point of standard maainal s olf ac of appr.nimat. l> 13hC1 mlh or hichr-Tla re pha r, 06 sy hs
.<t a
a, delivery.
f0ET MONT H LY R ATE 570100 fur th( fi:st 200 KW S
0.7-1 p"r KW of dem.ind for al add lional KW 5 0 018 per KWil for "Il KWM 020 per KVAll i f < uess KVAli M m.v u m ciu.
570100 pe r month ADJusTVLNT3 i
l'in st-thew shal 1.c +!<h I to or suht usted hom th-m t h "ug mi ana nnt equd to th" KWil us d.nutt:pird 10 an adjustment computed in accordam e with Il e following fannda:
Fn FA =
- $01537c0 su Will:IlE FA l'url n%tment p> r KWil to ht applit d to i nci ey hiiled in th" i m. cut u mth.
I'n co t te Con.pany ia the o mn.! precedin;.: month of f osd and nur!-ar fuel nu d dmin.a thi i mnti, whi< h sh di inc lude:
(a) Ihe < ost of fossil an ! noch..r fut i us d f"r the pro lm tion of a let hie < ut rey in Companyi tem ratin i s tations, of fa sil'an I nuclear f uel consumed ia jointly ou r.ed n nerainez stations, les< the cost of p!us Comp.my's sh.n r c
touil and nm.lrar fuol ret mned duon2h in!nsystcm sale, iaeludinq tl.r lurl costs n !ated to omnouy encio
- s. la ami oth r ti.crgy soll on an cronomic di p,t(h basis. The cost of inel as used herein shall h-in com-pham e with rec nnunendations made by the Federal 1%wi r Conunission's Office of Cidef Accountant, Amlits Divisi n lleprit n ! cased May 17, 1977.
(b) tho a tu d id r.hfiahIe fmsil and nuc! car fut l assoti..trd Sith a ne.qy,mrcheed foi n a wns < tNr than identified in (e) helou.
(() olc(trie rue:gy pun hased on en ( conomie di3 pat (h l, asis for distribution aul s de in ils s prrating arra. In-(luded in the encrev h"reunder m ty he cronomv (nergy perthaws, rnrrey porth. 4 d a; a re ult of a sheduh I s
octay and enticy pur(heed by Curipany to sub titute fo; its ow n hNher cost of :cn mv. The costs of.suc h em rgy shall he the net energy cost and shall t u !nde capacity or donand c hartes b
N t KWil input iato Compan> N sy*m for the supply of enn e_
in its operat:nu an a far the sewnd p,ca ding menth. Said i::put sh.dl be dete rmined as the.som of fl) t neration. (0) purchw s, (3) interchange-in, less N )
u tersy stem saics refeired to in (a) ahm e, less (.3) tc tal sy stern losses assa( fated with whoIO, de s,il, for n sa!. de-Incry h s e l.
The ad;ust:nent factor c omputed above shall be further inod:fied to a!hr.v the recovrry of gross o ccipts and other simi!ar trvonne based tas t harces ou asioned by the furl adjustment res e'mes.
S condmlus the appkahle pmportionate part of any dirn t!y allxah}c tas, impo,t, or assi en: cut imposed or Inicd by an)
Lovtinment.d adimity, which is aw s.rd or levi < d against the Cmnpany or diristly affects the Company's co t of ortration and s
w hich th" Comp my is lega!!y obli2ated to pay on the he!i o f meters, ( nstomrrs, or rates of, or revenne from electric pou er and enc ray or sen ice soll, or on ti.e volume of the energy genciated, transpro ted, puuhased for sale, or sold, or en any other huis ubere diret t allocatien is possible
%)
TRANSMISSION VOLT ACC DELIVERY Wiro.buh iatioa prosiiles.:l! l. shtics at the point of d -In. iy for th< t.n.s h r n..it u,n of tla einrzv i'<lnried leteumhi froia (:oninan> s tr.insmiss on u,'t. ice of 11 ~2.000 solts or Idd er to.bsm iationi d b'ri!.utien s o%
i d.si.unt of t.u nty f a r t ents (25c) per KW <J dent..ntl will in.. lion esi nu the Idl!!n c un't r the ahm e Nr t Wnth!) lb.! -
.b..t.a' ion sh:dl pros ide snt'. -
h!c sp.u c for 1.w' rine e<popment on th. lo s volta s s:dr of it s transfornu r. ib!!ing shall he hwd oa el on atity so na.nmed at the wtondary voltag<
DCMAND Tl e asci.n: KW snpp:4cd dar me t!.c 15-mi mic i crio 1 of.ksu. t. lioni go at. t use doiing the cu:r.et n ntb.Imt u
- l.
f l..a the highat of the fo'l win.
(1) Tir of t!.c highest KW cstabh-hol d ning sla preu ns ch u n f i l) n.or.ths.
(2).% of the Contract KW
- peti % d in the Agri enwnt for l'un h ne of I'ower.
(3) 2n0 KW EXCCSS KVAR The as ci.c:e KVA:t supphc ! durine th I >. minute p. vio.1 of e n :.n st use i!n> U.t t lic un<nt e m th in i i i ss of w: of.bsa ia tion *> rn a,nri d KW f or the < orn of roua i PAYMENT Ilith are du.nal p.w.ihh. eac h month up..n povntation. If.i Lli is n -t raiJ uithin 1, Jays af t, r presentat.on. comp.ney m.o upon 15 day s' w otten nn'it e mpend u n ic e R CS C R V ATI O N Si.1,i. t t to on!rrs of ir mlatory.inthurit:i s h.n aq i niub hon CONTR ACT PERIOD Not Icw than five- (5) years. and for likr periods thercaf t r. in au, id.na e with Co:opany% Aen < na nt for Eh t ine en h e.
O A
Issued by : J. W. Schimpf, Direttor of Eates, Mississippi Powe r & Light Company, Jackson,.\\li>sissippi 39205 674
i~ 'J J ! ' D I T Q
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MICSISSIPP) POWER & LIGHT COMPANY FILED WITH:
"'""'~
Avahi ty; At Wr.t s c n emt no fx i. tics lavmq a-!cqua '
c%ac tv an.1 % t.Ye ultm for oldvery cf scruce frc o FEDER AL POWER COMMISGION C. d E" "" M ' ' '* W C"* " "
the Comr>any's interc" -ecicd trammM en '. y u e m.
Date FMed: August 29, 1977.
himi Pacr & U$t Ccm; c.ny Per tb 101.
Date Effecthe: Dcccmler 1, 197G.
Sche &!c Ceru ts ef: Cnc 55cet.
M!r m AN D CL *.5:) Or NRVICE: ELECTRIC PUOLIC UTILITY RESALE R ATC SCH EDULE MW 1"a A PPLt C AT ION To u sa!" n n k e to im h!.a utilijes (iialaciag publicly owned cin-t: e sy st. ms) im.!cr srw or n m u al ton't u t u nh Company ute n unton.cr ccidw ts n ah Comrany f or i's entue pnrhni ter am! cru re ruicirornts. A!! seniu-i, ta 1. supp'i.sl at point of ds 1o r y.al I masun d by one kilowattdn.ur meter.
oor Nnt..ppl. al l to e.uid!,y an l s.:ppletacnt..ry u n it e or to par.dh i orcrahon CH ARACTER OF SERVICC Tlace pinne, to cytics at a st.uolant no:ninal s oltaar r f 13,mo vohs or Leber as ncil.d !r at th > po'nt of de livery.
NET MONTHLY R ATE
$ 377310 for the fint 1,000 KW of demand 3.:15 per KW of deia m i far.dl m!ditional KW
$ R018 per KW!i for all KWil S
0.20 per KVAll of esecss KVAR MiNmuu BILL
$ 157100 per mnnth A DJ U S TM EF.T ':,
First - there shall he ad !cd to m solaract, d from tL< m t IJling an amount i rpul to tim KWil um! m.dtiplied by aa adiostoc M u.mput d in
- a. < o n!.a.c. w ith th. fel!wna fonanla:
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- $.0153700 Sn Wi!CllE FA En.1 adjusin cat per KWil to 1.c apphi d to em :ny IZ d in the (unent month.
11 Co, t to Co:apany in the se:ond pa a ding unuth of fouil an.1 nut! car fuel u,cd duria; the nontl., u hk l. slali inonde:
(a) t!.c urt at fos il awl nm lar fuel us d for 11. pmdat tio of (lectric i nciev in Corapany's p neuting.s'atums, s
plus Compds share of fossd and nuclear f uel consuuni in pintly owmed cencotam Matans, ! css th. cost of fossil aml no lc.:r incl rec overed through inn r-s>.tmu s.d m in< la<i' i t h-f m l co t s n!?cl to ecem,rnv r
( ncr: v s.d. s and oile r t u rgy sold on en reonnn.ic.hman h basis. Tl.c c ost of fm l as c'. d N icin d.all l+ ih con.p! nun. uith ic< onacem!ations made by the Fe deial Power Connaission; Off.t e of Chief Account.mt, Audin Dici ion lk&rt riir ased May 17, 1977 (h) th. acte:d iJ a fiah!e to ul c1 ne;1 ar 10 1 a a iat. d ui.h i ncray puu !.a,cd for m.isans othri thm identi-lied in (c) 1 c: ex.
t c) ein tr'c u.cm r un b m d on et onomic di<g au h imis for di triimhon and ul m its o;. rat ng rot a.
In-
..a (lnd,1 in tir enemy bornnd r way,1 e nonom> e ncrry nrel.ases, i m n:) p:n tha snl as a result of a sticeduled outre, :'nd em Wy punhase d I y Co'np:my la C si te f'.r its ow n I lghcr c ost of ( m rgy 'l lu uists of such i n" shall !"
16 het energy u.t an I sha!! e u l a!c t apaily or demand c harges.
s-Nt KWil inpat mt. Company's.systa u fer t!a 3npp:y of acey in i$ opci c.tia., nn a for th. second precc-!ine month. Sail input sha!! L determined as the unu cf (1) a neration. d) punluws, D) inh Jchange-in, less (4) intersy sS m al. s refened to in (a) ahore h ss (~) t< tal system lowes av.mia cd wd h w ho!cale sales for msa!- a hs en level The adins: men' f.u tor comented ahme shall he further nuhn: d to allow t h.
ri t o. c n of gmss n cripts 2.nd other duilar inenne Iwed tn chnem occadocal IS the fm !.u!instmcnt res enues.
N o:nd-plus th~ appih abl pmpm tionate p.u t of.m> directly allocable tas, impost or assessment imposed or !ctied by any governmental anthmily, which is assesed or levied uta:nst the Comp.my or diret t!y af fa ts the Companyi s ost of epe-ration and ul.h h the C nnp.my is legally ol!i,lal to pay on the hash of meter s, custnmers, or rates of, or ren nm- 'om
/
cln tric re r and ou'igy or scaice sold, or on th. valms of e nergy cenerated, transported, purchased for sale, or sol, or on any other 1 asis where direct allm ation is possibic.
TRAN',MILSION VOLTAGE DELIVERY W h"re Cmtoim r pimi.!cs all fauh' irs at the point.f di fn i iy fin tl.c tiai fo in. tion i f ti e eniin d lacini L o ni. in i froin Con,;.anyi t r.in nn +on ultag. of Il,,t;t o vi lt< or h;cher ta Custoine t's i;i,ini ntinn u!!a:9. a ii uinnt of twi i.t > fac (ents (2.50) per KW of drinan.i will Ic.illir.n,I on lim l, illa. - nio !. r th-al ove Nt \\h u hlv Hate. ( mtei icr sh.dl pim t!r snital le v.a c for inricting cipFpnn nt on the inw ultur sid-of it-f... n d n n-e. IHl.nu shil le
!. w ! on tir inentJy su ruumne d at thi st c onlary w!: age.
DCMAND The as ci er KW sneph,il do.ing tl c 15 :nin.te ia s im! of Cu st..n.. i n en.. i. t me i!u. in ; t h. un n i.t iono'h. I M not I. a f. in the high,t nl tia f o!!',w ir.g.
(1) ~0'; of th 1.iatu st KW n,tal lnhol i!ni:ng the pr"uons e lesi n ill) inu. fin.
(2) The niin:nnun KW pn si!rd in tia A g cen. nt for I.li t t e Si n it i (3) It00 KW CXCTSS KVAR The avito KVAlt soi plie.1 <!nring the 1 ~,-i nin u t e pro,,d of Cn si.u cs a r.iti st ne daiing t!u t ui nent umi.th ia e scr o of WA of the mea,ured KW L.r tl e coin nt runnth. A KVAB initer su!! he in t dh d u hen tr sts in 'i< ati a pousi i u tor !cu !Lin W.
PAYMENT lldls.u r due and gu> able e n h nmnth upon picscutation. If a Inll i, ni i pai.! e, Hhin 13 ilap f man the date t hi n of. Con.p n>
shall lus e the night to su pend senic e.
CONTR ACT PCRIOD Not less tlun fise s tars, and for Ike l'eriodt the n afte r, in u s i -i d. nit w it h Co ipan3 's Agn i men t O n-1:let ti.t N riise.
R CS C RV ATIO N Sub; i t in onb n of irgul.fi :) a nt houtie, b a s in.:,nrisdic tion.
A A
luued by: J. W. Sch rnpf, Direttor of Itates, Mississippi l'nw er & Light Onnpan.s, Jas kson,.\\firissippi 3XO3 673
" ~ ~ " ~ ~ '
MUN!CIPAL ENERGY.".GENCY CF MISSISSIPPI PC ST C 7 r l;[ EOF ett c t. F. C N W O C O. f '. lS $ 15 5 t P P I 2 2 9 3 0 M.E. A.M.
N ov ember 21,1978 a.:- u O, uces c.,
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...as C-.u c s - m-t ws tc....~
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- s t. CarrawAv s t e.Y s t ss c o,-is a.: s t e s E tLLY J S INTO 6 4 com a.T c-a t s e e _ = :-n et:. c sm.. e E n.. [ 5 T L SUTiaO55 : a m c a.
P t n e rti M CS4550u 6tLam e C-A RL ES u wAfetwc c,ateswcco C R 5 t W A.t 3 v a:oo city JlWWT f >d&W a ri a etha R IC H A N O M wCESTER gm, cgame sc alt
',' r. Donald Lutk en, Presi d ent
'.iississippi Power 6 Lignt Company P."
Eox1640 Jackscn, Mississippi 3920T Cear Mr. Lutken-As you may be aware, the f'unicipa! Energy Agency of '.',ississippi has ceen crganized by the Cities of Clarksdale, Creenwcod, Yazoo City, Leland, Kosciusko, Canten, Durant, and Itta Bena pursuant to tne Jcint t'.unicipal Electric Pcwer and Energy Act passed by the f.',ississippi Legislature during its recent The censultants employed by the eight Cities have advised legis!stive session.
g them that it shcuid be possible to develop through MEAM a prcgram :: reduce the cest of electric pov,er and energy to their citizens, which prcgrcm would include We wculd an ownership interest of at least 2.46 cf your Crand Cu!f nuclear unit.
be prepareci to consider a larger interest 10 be utilized en a basis uf joint pianning and operation, if you desire.
The Scard cf Commissioners of MEAM have been advised that when the City of Clarksdale recuested an offer cf an interest in tne Grand Cv!f unit in accordance with what is understocd to be your cbligatien agreed to with the Department of Justice, your response was that C!arksdale should have asked earlier to be accorded an effer. The Commissioners representing the member Cities have advised us that they can find no records indicating that their respac-tive Cities have received any offer from you for participation in the Grand Gulf unit.
It has been suggested that it would be e more efficient use of rescurces if the ownership interests to which cach sf the member Cities of
?.'.EAM are entitled were held by MEAM, which in turn would deliver pcwer and energy to the member Cities. Consecuently we wculd seek to meet with
~
you or your designated representatives to discuss an offer from you to MEAM of an owne. ship interest in the Crand Culf nuc :ar unit of at Icast 2.4Si. (equivalent 3 a written offer once it is received to approximately 62 megawatts), or to respend at the utilization of such an and an analysis can be made thereof We note t interest might well depend on the form of the pa. ticipation agreemeht (including AM cr transmission) and the interconnection agreemer s between MPE,L and ME d include your proposals on We v.ould hope that your offer w its members.
these essential matters, as well.
We look fe ward to discussing the possibility of joint construction, financing, and planning under the Joint Municipal Electric Power and Energy Act and would hoce to be able in the reascnebly near future to meet with your planning people in the hopes of being able ; develop joint planning cf generat and transmission for the benefit of the citizens served by your system and by the systems of cur member Cities.
Yours very truly, MUNICIPAL ENERGY ACENCY OF V.lSSISSIPPI
,j k.
!._./ / !? ESC db/
By: Richard M Webster, Jr., Chairman Scard of Commissioners Robert C. McDiarmid cc:
David R. Hunt Nicholas Guarriello All Commissioners
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YI b MISSISSIPPI POWER S. LIGHT COMPANY
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Helping Build Mississippi D
M A P. O.
S O X 16 4 0, J A C K S O N, MISSISSIPPt 35805 ry: ; n 1 T-Q i; / 8(1i D L
-- 1 c3RtG L S""AMPt.IY v cs -men December 22, 1978 Mr. Al Naylcr Executive Assia:aut to the Presiden:
Gulf States Utilities Ccapany F. O. Sex 2951 Beau =ca:, Texas 77704 Des: A1:
'Je have cc=pleted a pre'.i inary study of :he p:cposed Interconnectica Agree =ent.
Rather than duplica:e the entire docu=ent fc: all interested par:ies, we are attaching enly :he pages where changes are indica:ed for ycur censideratica.
These are Pages Nos. 1, 3, 17, 22, 23, 25, 27 and 28.
In additica to :he above pages, we are attaching a copy of the 12/S/78 Draf: of a propcsed Transmissica Se:vice Schedule TS-2 between our Cc=pany and South Mississippi I?A.
Please review this and give us your reaction :o possible use of this for=a: in lieu of the various schedules in your draf:.
This would not, of course, affect the ES, RZ and SF schedules.
Sincerely, F
i i j&
NLS:eh A::ach=ents bc (w/at:ach).
Mr. S.
- 4. '41s e Mr. Dick Merriman Mr.
F. S. York Mr. Jack Davey, L?&L, New Orleans Mr. M. L. F.urstell, NC?SI, New 0: leans Mr. J.
D.
Phillips, AP&L, Pine Bluff Mr. J.
F. 7cgt, MSS, New Orleans Mr. T. J. '4:ight, Ark-Mc, 31ytheville yo..-
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1.
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p,,7gSTST GSU DRAFT
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I2/2/ 78 POWER INTERCCNNECTICN AGR: EVENT SETWEEN GULF STATES UTILITIES CC.VPANY AND FISSISSIPPI POWER E LIGHT CCMP ANY
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4
TABLE C.: CCNTENTS PAGE RECITALS ARTICLE I, TERM AND PURPOSE OF AGREEMENT 3
SEC TI CN 1.1 TER9 3
SECTICN 1.2 PURPOSE 3
ARTICLE II, INTERCONNECTICN PGINTS ANC FACILITIES 5
SECTICN 2.1 INTERCONNECT!CN PCINTS S
SECTICN 2.2 INTEQCCNNECTION FACILITIES S
SECTION 2.3 ACCESSCRY :ACILITIES 6
SECTICN 2.4 STANDARDS FCR CCNSTRUCTICN OF EQUIPMENT 5
ARTICLE III, SERVICE SCHEDULES 7
SECTICN 3.1 ELECTRIC SERVICE 7
ARTICLE I V, CDERATION 10 SECTICN 4.1 OPERATING REPRESENTATIVES 10 SECTICN 4.2 CPERATICN lo SECTICN 4.3 REGULATICN CF TRANSFER CF POWER AND ENERGY ll SEC TI ON 4.4 CEACTIVE PCWER 11 SECTICN 4.5 REACY RESEQVES - SPINNING AND NONSPINNING 12 SECTICN 4.6 CIRM PCdER SUPPLY 12 SECTICN 4.7 RELIABILITY 12 SECTICN 4.6 ST ANC ARDS OF M AINTEN ANC E AND OPERATIGN OF EQUICMENT 12 SECTICN 4.9 FIGHT OF ACCESS 13 SECTICN 4.10 COORDINATION GF M AINTENANC E 13 SECTICN 4.11 DETERMINATICN OF avCUNTS CF POWE S U P PL I ED 14 SECTICN 4.l2 INACVERTENT T7ANSFER C: ELECTRIC ENERGY 14 ARTICL:
V, METERING, BILLING ANC SETTLEMENT 15 SECTICN 5.1 METERING FACILITIES 15 SECTION 5.2 IN SPEC T ION, TESTING AND PEACING OF METERS 15 SECTICN 5.3 TAXES AND OTHER GCVERNMENTAL CHARGES 16 SECTICN 5.4 BILLING 16 SECTICN 5.5 SETTLEMENT 16 ARTICLE VI, E L EC TR I C GENERATING CAPACITY 19 5;CTICN 6.1 PRINCIPLES 18 SECTICN 6.2 RESERVE CAPACITY 18 SECT!CN 6.3 DEPENCABLE CAPABILITY 19 A0 TICL E V II, GENERAL PROVI SIONS 20 SECTICN 7.1 LONG-QANG: PLANNING 23 SFCTICN 7.2 UNCCNTRCLLABLE FCRCES 20 SECTICN 7.3 LIABILITY 21 SECTICN 7.4 NONCISC2IMINATICN 22 SECTICN 7.5 RIGF7 TO YAINTAIN SUIT 22 SECTION 7.6 WAIVEPS 22 SECTICN 7.7 REGLLATC Y AUTHC91 TIES 22 SECTICN 7.8 NOTICES 23 SECTICN 7.9 CONTINUITY OP SUPPLY 23 SECTICN 7.10 LAWS GOVERNING TWE AGREEME'T 27 SECTICN 7.11 REVEDIES CF DARTIES 27 SECTICN 7.12 SUCC:SSOOS AND ASSIGNS 27 S:CTICN 7.13 SEVE?AEILITY 27 SECTICN 7.14 NO THI D PAATY RIGHTS HEREUNCE 25 A;TICLE VIII, APP;0 VAL 5 ANO WITNESSES 2R SECTICN 8.1 APPROVALS AND WITNESSES 29
-I-
POWER INTE9CCNNECTICN S G O E E 'd E N '
BETWEEN GULP STATES UTILITIES CCVPa?.Y ANC "ISSISSIPP! POWER 6 LIGHT CC.vPANY THIS AGR E 3'4E NT, MACE AS OF THE _
OaY OF _ _ _____
1973, SY AND 9: TWEEN GULF STAT:S UTILITIES CCtPaNY, A TEXAS CCRPOLA !CN, HEFEINaFTER REFE?P C TO AS GSU, ANC VISSISSI: 3!
POWE; & L IGHT CCv 0aNY, A
.M I S S I S S I P P I CCRPCRATION, H9 :INiU 9 RE: RREC
'l AS VPL, aNC E I 'H E'1 C7 ECTF CF WHICH "AY EE ;E:EFREC TC 45 DaFTY/PACTIES.
RECITALS:
WH3aEAS, SSU GWNS AND C333a'ES AN ELECTRIC UTILITY SYSTEM.
NCLUDING GENE 0iTION, T:ANStdISSICN cNC CI STF ISUT ICN FiCILITI:S, IN THE STa*ES OF TEXAS tNC LCUISIaNA, ANC Mel CNNS *NC CPIRAT:S AN EL E CTO IC UT IL ITY SYST:v, INCLUCING GE*.5RATICt., T;tNSMISSICY ANO DISTCISJTICN CaC I L IT !E S, I t' THE STATE CF v!SSISSIPP!, AND
'HE:: 25, THF SYST?vS C: THE TAC DARTIES aR: SC LCC2 ?C ANC 5MKY CCNST!'UTEL TH1T TH:Y ARE IN E?CONNECTEC 3Y M31N$ C R ELiT ED F AC ILIT I ES, A.' 0 T a a N S '.' I S S I'N L I N.: AND
~~
CEOT2IN aC ILI~IES FOR THE ws::::5
~ Y <. T 5' c r.: c.tIO ca;TI:.c. 20 : T.se 2L':.u-ANC I y T : ;,.,s3,3, :. C ~i I N..
n, : T ". :
3 IN P L '. C : IN Ca?: 17!ON tY TFE ThC S Y S T E '4 S, 0:D
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s-SUCH IN INTi: CC3.NECTICN 1.N O THE I N T E R C H a.',3 5 C : ?Ows: TH;CUCH SUCH I N T E R C CS.B. :C T I \\. aND
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WHEREAS, IT IS EX PECTED THAT IT WILL 3E OF NUTUAL ACVANTAGE TO THE PARTIES HERETO FROM TIME TO T IME TO PURCF ASE AND SELL CR EXCHANGE ELECTRIC POWER AND ENERGY FRCM CNE SYSTEM TO THE OTHEP UNDER THE TER'AS OF THIS AGREEMENT; NOW, THEREFCRE, IN CONSIDERATION CF THE PREVISES ANC THE MUTUAL COVENANTS AND AGREEMENTS HEREINAFTER SET FORTH, THE PARTIES HER ETO MUTUALLY CONTRACT AND AGREE AS FCLLOWS:
N~'
AR7ICLE I MO NW gygf g /N E80M ^
TERP AND DUPPCSE CP AGREEMENT S e c t r oh.. i,1 r==u F\\ V E (5)
THE TE?1 0F THIS A GR EE," EN T IS
'^-
YEAF S, C CMM ENCING AT 12:01 A.1.,
C.S.T.
C: TH E CAY CF FIFTH 1978, aNC 51CING ON THE -
ANNIVEPSACY THEREC;j( EXCEPT 15
' - - ' ~ ~ '
CTHE9 WISE EXPRESSLY PRCVIDED IN THE S FRVICE SCHECUL E, EACH C: THE ATTaCHEC SERVICE SCHEDULES HERETC SHaLL CCNTINUE IN ; FF EC T 009 THE TEDY CF THIS 'GREEMENT PROVIDEC THAT IN ALL EVENTS'ALL SERVIC E S CH:DUL:S IN :FFECT HEREUNDER AT THE T IME SFaLL AUTOMATICALLY TE9"INATE ANO e5 CANCELEC AS C: THE CaTE JF TERMINaTICN OF THIS AGREEMENT.
INASMUCH AS THE VARICUS SPECIFIC SEoVICES TO BE O?NCEREC SY EACH DARTY TC THE CTF:: I.N
. Ud TH E R t.M C E OF THE PUcFOSES OF THE oA97IES IN MAINTAINING THE INT 0CONNECTICN ANC ESTABLISHING FUTURE INT ERCCNNECT IC.NS WILL V a;Y FC CM TIuE TC TIM: OUCING THE T:49 HEREC:, ANC THE TERMS, ARRANGEMENTS, AND ATES APPLICA3LE TC SUCH SERVICES NUST N EC E S S A.: ILY C: PEND UPCS TH CCNCII!ONS FOCV T !YE TO TIME EXISTING, IT IS INTENCEC THa-SUCH SDECI:IC SE VICES aNC T:RMS, A; RANGE >ENTS ANC 4ATES APPLICaEL5 THER: 70 WILL SE SET : CATH IN S E,VIC E SCHECULES wb!CH 94Y BE :ORMULATFC 3ETWEEN THE P.tRTIES HE3ETC,
'cl F I C H S:PVICE SC FCCUL ES nHEN X iC'JT EC 3Y THE PA0 TIES FERE O ShaLL EECCME DA TS CF HIS AGREEMEN-DUFING H
PERICCS FIXEC SY THFIR R: SPECTIV:
T:;MS.
ALL SE0VICE SCH:CULES SHALL BE'SUSJECT IN ALL EV NTS TO Th POCVISIENS OF THIS AGREE"ENT, INC LUC ING BU T -NO-LIMI :C C
ARTICLE III.
THIS AGREEMENT yay BE "EFVINATEC 2T ANY
'"95 OY CITH:: CA: Y EY GIVING 'HE CTHER DiCTY aPITTEN NOTI ~5 C:
CaNCELL2 !CN NCT LESS THAN : CUR (4) YE ARS IN ADVANCE OF *HE TE MINATICN CATE.
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THE PURPCSE CC THIS AGREEMENT IS TC PRCVICE THE CAPiBILITY TO INTERCHANGE PCWEP AND E.'!ERGY AND TO PRCVICE FOR THE USE 0 EACH
' ARTY' S TP ANSMISS ION F ACILITI ES AS PRCVICEC IN THE SEPVICE SCHEDULES AS LISTED CN THE ATTACHED EXHIBIT "A"
CF TH IS AGREEMENT..
9
ARTICLE II INTERCCNNECTICN POINTS AND FACILITIES SECI1O3_221
_IDIE3fC5h2CIlfh_EflSIS THE EXISTING POINT OF INTERCCNNECTICN IS LOCATEC AT TFE BOUNDARY LINE BETWEEN THE STATES CF LCUISIAbA ANC MISSISSIPPI WHEPE THE 500 KV TRANSFISSICN LINE CROSSES SAID BOUNCA9Y NGRTHEAST OF THE TOWN CF FELPS, LCUISIANA.
IN THE FUTURE OTHEC INTERCONNECTION PCINTS MAY BE INSTaLLEC SY TFE VUTU AL C ONSENT OF THE PARTIES.
SECIlOU_222_=_13IfEfCS$5CIIC3_5AClLIIl53 THE FSCILITIES TO E::ECT THE INTERCCNNECTICN PCINT 3RE TO BE AS FCLLOWS:
(1)
EACH PARTY SHALL PROVIDE, OPERATE, AND MAINTAIN ALL ACILITIES NECESSARY, CN ITS SIDE CF THE DCINT CF INTERCONNECTICN, TO PERMIl THE SUPPLY CF ELECTPIC ENE;GY aT A NOMINAL R ATE OF INTERCFANGE AS STATED IN SECTIC.'. 1.2 AND aT a NOMINAL VCLTaGE OF 500,000 VOLTS AT THE EXISTING I N T 5 0 C O N N E C T I O,'.
POINT.
(2)
THE PARTIES WILL POGVICE CCVMUNICATION ANC 'ELEME7CCING ECUIPMENT iDEQUATE FOR loa 0 DISPATCNING PURPCSES.
BCTH PARTIES WILL PROVIDE NET TIE LINE CONTROL ECUIPPENT FC; CCNToGL 0: FLCW OF POWE; THROUGH ITS INTERCCNNECTION WITH EACH CTFE: ANJ ITS INTERCCNNECTIONS WITF CTHEOS, THE EXTENT ANO CHARACT:4 OF SUCH EQUIPMENT, INCLUDING ITS MAINTENANCE, TC 3E IN aCCORCSNCE WITF GC00 MODE;N PRACTICE.
(2)
IT IS PURTHE: 1 GREED THAT THE PARTIES SILL C CODE 4 ATE WITH EACH OTHER IN YATCHING THE INTERPaCE REQUI:EMENTS FOR
_5_
COMMUN IC ATION AND TELEMETERING EQUIP 9ENT OF EACH PARTY TO THAT OF THE OTHER PARTY.
(4)
PLANS FO R THE INSTALLATION BY EITHER PARTY C PROTCCTIVE ECUIPMENT AND DEVICES CN OR IN CCNNECTICN W ITH FACILITIES PROVIDED UNDER THIS ARTICLE II SHALL SE SUBMITTED TO EaCH OTHER FOR APPROVAL BEFORE SUCH ECUIPMENT IS INSTALLED FOR THE PURPOSE OF ATTAINING DRCPER CCCRDINATICN AND RELIABILITY Oc THE INTCCCONNECTION, BUT SUCH APPROVAL SFALL NOT BE CCNSTRUED'TO CONSTITUTE A GUAPANTY CF THE ACEQUACY OF ANY SUCH ECUIPMENT OF DEVICES.
312 10g_2 p - arr ccrey FaclLITIcj THE PARTIES HERETC WILL PROVICE CCMMUN IC AT I CN, TELEVETERING, L O A C-C CNT 90L ANC :R EQU ENLY-C ONT RCL EQUIDMENT ANC SUCH OTHER FAC ILITIES FOR LOAD CISPATCHING PURPOSES AAC eCR CONTROL CF PCWER CLCW aND FLOW C; REACTIVE KVA AS ARE NCW CR MAY HEREA:TER REASCNA4LY BE REQUIREC IN ACCCRDANCE WITH GCCD, MCDERN DRaCTICE, AS DETERMINED BY THE CPERATING REPRESENTATIVES PECERRED TC IN SECTION 4.2.
11C1123_22i_ _1IrJDAEE5_ECE_CO21IEufIlch_lhf_0PccaTinN n:
EGulEMESI EACH PARTY AGDEES KITH THE CTHEP PARTY THaT IT WILL FCLLOW GOOD UT!LITY PRACTICE; ANC WILL CCNSTRUCT AND AT aLL TIMES MAINTAIN IT S L IN ES, EQUIPMENT AND CTFER F AC IL I'IE S RRCVIDED FCC IN THIS ARTICLE II IN ACCCRDANCE WITH STANCARCS AND SDECICICATIONS AT LEAST EQUAL TO THCSE PRCVICEC BY Th: NA*ICNAL ELECT R IC AL SA:ETY CCCE OF THE UNITEC STATES aUREau C: STANDaPCS AND OTHE9 APPLICa LE RECOGNIZED UTILITY STANDAOCS ANC DRaCTIC:5.
ARTICLE III SE:vICE SCHEDULES SECIl03_121 -
C' CI21C_SEEVICE IT IS o.ECOGNIZED TF17 SUPPLY OF VARICUS SPECICIC CLASSES CF SERVICE AND THE RAT:c, TERYS AND CCNC IT IONS APPL lC A ELE TO E ACH CLASS CF EL ECTRIC S ER V ICE VUST NECESSARILY CEPEND UFCN THE CONDITICNS EXISTING FRCy TIVE TO TIME.
THE SALE AND PURCHASE C:
SPECIFIC CL AS S ES 0: ELECTRIC S ER VIC E A R E ORCV IDED CCo IN $EPAFATE SERVICE SCHECULES.
EACH AND ALL GF SUCH S ER V IC E SCH ECULE 3, WHICH HAVE eEEN AND MAY HEREACTER BE EXECUTED BY THE P AQ TIES HER ETO,
SHALL BE CONSICERED FCP ALL PURPOSES AS A PART CF THIS AGREE 9ENT DURING THE PECICD C: THEIR EF:ECTIVENESS.
SUCH SERVICE SCHECULES ARE LISTEC JN THE ATT ACHE D EXHIBIT "A"
OF THIS AGREE"ENT.
A CCI T ION AL SERVICE SCHECULES MAY BE INCLUDEC 9Y MUTUAL AGREEVENT.
ALL SERVICE SCHEDULES IN EFFECT HEPEUNDER VAY, F R C '1 TIME TD T IME, BE DELETED CR CHANGEC BY VUTUAL AGREE *ENT BETWEEN THE PARTIES.
THE RATES, TERMS AND CONC IT ICNS FOR SUCH CLASSES CF SERVICE SHALL EE AS PRCVIDEC EITHER IN THE SERVICE SCHECULE OC IN THE RATE SCHEDULE C0 SCHECULES ATTACHEC THEPETO, WH IC H RATES, TEcMS AND CONDITIONS vaY BE CHANGEC AT ANY T IME 3Y 9UTUAL AGREEMENT.
ALSG, ANYTHING IN THIS AGREEMENT CC ANY SEQVICE SCHEDULE TO THE CONTRARY NOThlTHSTANCING, EdCH AND ALL R aT ES CHA4GEARLE 3Y a PARTY LNCER THIS AGREEVENT OR
,NY SERVICE SCHECULE CONSTITUTING PAP 7 CC THIS AGREEMENT (WHETHER STATEC IN THE SER VI CE SCHECULE AS A VUTUAL R ATE OR as A SEPARATE RATE SCHEDULE TO THE SERVICE SCHECULE) SHALL FCP. PURPOSES CF CHiNGE EE CEEVEC TC BE THE SEPARATE RATES OF SUCH PaPTY, INDEPENDENT 0: THE OTHER IPTERCONNECTION AGCEEvcNTS, AND IT IS AGREED THa7 $UCH CATES OF S P AR TY TO 85 CHARGEC COR SEoVICE UNDE THIS AGREEMENT OR ANY SUCH SERVICE SCHEDULE ANC THE TEPUS ANC CONDITICNS 0: SUCH SERVICE SHALL 3E SS PRCVIDED IN TWIS AGREEVCNT CR TWE SERVICE SCHEDULE C0 R ATE SCHECULE TC A SERVICE SCHECULE CR IN
- 3. N Y EFF9CT IVE SUPEQ SEDING SERVICE OR RATE SCHECULES OF SUCH PiRTY FCR SUCH TYPE OF SEF VICE PERTAINING TC THIS AGR EEM NT WFICH ARE APPROVED CR ACCFPTED FCP FILING SY TFE FEDERAL ENERGY R:GULATORY COMMISSION AND CTHER REGULATORY AGENCIES, IF ANY, HAVING JUR I S DI C T ION THEREOF, IT BEING THE INTENTION OF THE PARTIES THAT DURING THE ENTIRE TEP V OF THIS AGREEVENT iND EaCH S ER V ICE SCHEDULE AND DUP ING ALL RENEW AL PERIOCS, EACH PARTY SHALL HAVE AND HEREBY SFECIFICALLY RESERVES THE R IGHT TO CFANGE THE R ATES IT CHARGES :CR SUCH SERVICES AND THE TE9MS AND CONDITICNS OF'SUCH SERVICE IN ACCOc D ANCE WITH APPLICABLE LAW AND POO CECUR ES P RESC9 IREC 3Y TFE REGULATORY AGENCIES, IP ANY, HAVING JU RI S DI CT ION CVER SUCF RATES, TERMS ANC CCNCITICNS AND'TO SEEK REGULATCRY %PPROVal 0F ITS CHANGES OF RATES, TERMS CR CONJITICNS WITHOUT TFE CCNCURRENCE CR JOINDER CF THE CTHEP PARTY.
ALL CHANGES IN RATES, TER95 AND CONDITIONS BY EITHER PARTY ABCVE PE PMITTED SH ALL A PPLY TO SERVICE CCNTR ACTED PRICR TC THE EFFECTIVE CATE 0 THE CHANGE AS WELL AS SERVICE CONTR AC TEC HEREUNDER AFTER SUCH E FFECT IVE D AT E, EXCEPT AND TO THE EXTENT OTHEFWISE MUTUALLY AGREED IN ANY SPECIFIC CCNTCACT EETWEEN THE PARTIES :CR SERVICE PUPSUANT TO THE SERVICE SCHEDULE.
WITHOUT IN ANYWAY LIMITING ANY CF THE RIGHTS RESERVED TO EITHER PARTY IN THE PPECEDING PARAG93PH AND TO CCNFIRM THE EXISTENCE C: SUCF RIGHTS PURSUANT TO TFE CUFRENT REGULATICNS C:
THE FEDERAL ENERGY REGULATORY COMMISSICN, TFE PacTIES AGREE THAT NOTHING CCNTAINEC HEREIN SHALL BE CCNSTRUED AS AFFECTING IN ANY waY THE 9IGHT CF :ITHER PARTY IN FURNISFING SE0VICE UNDER ANY P ATE SCHECULE (5:RVICE SCHECULE) TC UNILATERALLY MAKE APPLICATICN TO THE ;ECERAL ENERGY 9EGULATCRY CDMYISSION (CP THE SUCCESSOR TO SUCH CEGULATORY AUTHORITY) FOR A CFANGE IN GATEF ANC TERMS ANC CONDI ICNS JF SERVICE UNCER SECTICN 205 C: THE FECERat ?OWEP ACT AND PURSUANT TO THE C Cv9 ISSION' S RULES ANC FEGULiTICNS PROMULG A T ED T FEC EUNDE9.
IN ACDITICN, TFE PARTIES A GR EE THAT LNY SUCH CHANGES T 'J ANY SEDVICE SCHEDULE MaY, EUT APE NC7 D ECUIR EC TO, TAKE THE :C M OF A CONVERSION OF THE SERVICE SCFECULE TC 4
?ARICF GENERALLY SPoLICABLE TO THE TYDE C: S ERV IC E INVOLVEJ.
~
I: EITHER PARTY WISHES TO CHANGE ITS RATES CR THE TER*S ANO CONCITIONS OF S ERV IC E IN ACCCRCANCE WITF THE PPCCECURE PROVICEO aBOVE, IT WILL SUBMIT TO THE CTHER PARTY, THIRTY (30) DAYS PRIOR TO THE DATE OF FILING WITH A REGULATCRY AGENCY CR THIRTY (30)
DAYS PQIOR TO THE PRCPCSED EFFECTIVE CATE, WHICHEVER IS EARLIER, THE CHANGES PROPOSED TOGETHER WITH WHATEVER SUPPCPTING EXHIBITS MAY BE INTENDED TO BE FILED WITH THE REGULATORY AGENCY OR TO BE USED TO SUPPORT THE CHANGES IN ORCER TC F AC ILIT AT E ONY CISCUSSICN W H IC H E IT HeR PARTY MAY DESIRE.
THIS OBLIGATICN TO SUPPLY INFORM ATI CN SHALL IN NC WAY LIMIT CF CCNCITION THE RIGHT CF EITHFC PARTY TO APPLY FOR SUCH CFANGES AS PROVIDED APOVE, AND ANY FA ILUCE IN WHOLE CR IN DART TO SUPPLY SUCH INFORMATICN'SHALL NOT BE A BASIS.:OR PPCTEST OF, INTERVENTION CN, OR CSJECTION TO ANY FILING :CR SUCH CHANGES BY EITHER PARTY WITH A REGULATORY AGENCY, PROVIDED THAT SHOULD E IT HE R P AFTY WHOLLY FAIL TO SUPPLY SUCH INFCRMATION, THE OTHER PARTY MAY USE SUCH TCTAL :AILURE AS A SASIS F0 2 REQUESTING SUSPENSION, BUT NOT REJECT ION 0; TFE CHANGE.
IT IS DISTINCTLY 'ADERSTCCD ANC $GREEC SY AND SETWEEN THE P A RT I E S THAT THIS AGREEMENT IN NO WAY OSLIGATES EITHEP DARTY TO SUPPLY ANY SERVICE TO OR RECEIVE ANY SERVICE FRCM THE OTHER PA7TY EXCEPT AS MAY BE SPECIFICALLY AGREED TO AND PROV IDE C UNCER SERVICE SCHEDULES IN 5:FECT HEREUNDER.
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APTICLE IV CPERATICN 15CIlDU_h1 - O c o a ~ 1SS R :D R : R EF_i!1NES EACH PARTY WILL APPOINT ONE REPPESENTATIVE TC ACT FCR. IT IN MATTERS PERTAINING TC INTERCCNNECTEC CPERaTION FEREUNCER aND SUCH ALTERNATE REPRESENTATIVES AS IT MAY CHOCSE TO APDCINT TO SERVE IN HI S ABSENCE OR WITH RESPECT TO VARIOUS CETAILEC OPEPATING AR9ANGEMENTS HEFEUNDEQ.
EACH PARTY WILL IN:ORY THE CTHE 05 SUCH APPCINTMENTS 55 MADE CR CHANCED FRCM TIPE TC TIME.
'HE OPERATING REPRESENTATIVES SHALL FAVE NC AUTHGRITY TO YODIRY ANY 0: THE PRCVI SION S O F THIS AGR EEMENT OR OC ANY SERVICE SCHECULE HEPEUNDER.
THE CUTIES CF THE OPERATING REPRESENTaTIV:S SEALL EE TO CSPRY OUT THE DAY-TO-DAY OPERATIONS PERTAINING TO THIS AGPEEMENT.
ANY ACTICN OP CCNCUCT APPRCVEC OR P ER V I TT EC SY TFE OPEFaTING REPRESENTATIVES WFICH IS I NC CN S I S TE N T WITH CR IN VICLATION OF ANY C: THE TECMS OR PRCVISICNS OF THIS AGREE 9ENT OR ANY SFQVICE SCHPDULE SHALL NOT BE DEEFEC TC CONSTITUTE ANC SHALL NOT OPERATE TO EFFECT ANY AMENOVENT CF THIS AGREEMENT 00 SERVICE SCHEDULE, OR OTHERWISE BIND THE PARTIES WITH RESPECT TC UTURE ACTION 09 CONDUCT.
SECIlOS_i22_:_CEEEAI1SS THE SYSTEMS OF THE PARTIES SHALL NCQF ILLY BC OPEoaTED IN PARALLEL hlTH THE CIRCLITS CLCSED AT THE I NT E9 CCNN ECT ICN DOINT SET FORTH UNCEQ ARTICLE II HEREO.:, EXCEPT AS MAY EE OTFERWISE MUTUALLY ARRANGE 0 BY TFE OP ER ATING R EPR ESENTATIVES.
IT IS RECCGNIZEC, HOWEVEP, THAT NEITHER 380TY SHCULC EE ELQCENE: PY C IPCUv5TANCES C: E STED EY TFE CTHER CARTY.
IT IS, TFEREFORE, A PPRGP9I ATE TH AT EACH PtRTY SHSLL AND DCE5 HEREBY RESERVE THE RIGHT TC SEEK OPE 1ATICNaL RELIE: IF ANC TO 'HE EXTENT THar SUCH BUCCENS SECJPE UNCUE, CR IN THE OPINION OF *HE A: FECTED PARTY, CONTINUITY OF SERVICE CN ITS CWN SYSTEM BECCMES IMPAlcED.
IF ANY CIPCUuST ANCES CR E STE AN UNDUE BURCEN UPCN EITHER PARTY, EVERY ATTEMPT SHALL BE. VADE BY TFE PARTIES TC E:F EC T IVE LY RESOLVE THE PP CBL E" T FPJUGH THE OP ER AT ING PEPRESENTA1IVES DESCRI??C UNCEC SECTION 4.2.
IF THE PARTIES ARE UNASLE TO PESCLVE THE PROBLEM TC THE S ATIS FACTION OF THE PARTY WHICH, IN ITS JUDGv5NT, SUFFERS UNDUE BURCEN, THEN THE BURCENED PARTY SHALL HAVE THE OIGHT TO OPEN THE INTERCCNNECTICN S EThEEN THE P ARTIE S HERETO TO RELIEV E ITS SYSTEP OF THE BURCEN IMPOSED UPCN IT; PROVIDEC, HOWEVER, PRIOR NOTICE SHALL BE GIVEN TC THE OTHER DS;TY WHEN PRACTICABLE.
IF THE INTERCONNECTION IS SC OPENEO, THE PARTIES SHALL COODERAT:
TO R.ESOLVE THE PRCeLEM AS CAPIDLY AS PCSSIBLE, AND THE INTERCONN ECTION SHALL THEREaFTER SE RECLCSEC.
SECIlOU_A,1_ E3SULATI;3 cc Taayce:3_fF cfg3; SNr py3ggy BECAUSE CF THE CH aR aCTER I STIC S C: INTERCONNECTEC CPERATICF, BOTH P AC T IES SFALL PROVIDE ANC OPERATE NET TI E LINE LCAC CCNTPGL EQUIPMENT ACCEPTABLE TC EACH OTHER AND IN ACCCRCANCE WITH STANDARD PRACTICE, SC AS TC AVOID MAKING UNSCHECULED DEvaN05 UPCN THE SYSTEU JF EITHER DARTY DURING NCovAL CPERATICN.
EACH PaPTY AGREES 70 CONDUCT ITS CPERATIONS RELATING TC CP AFFECTING ITS INTERCONNECTIONS IN ACCC00ANCE WITH CURFENTLY ACCEPTEC ENGINEERING ANC SAFETY PRACTICES IN INTERCCNNFCTED ELECTRIC UTILITY OPERATIONS.
SECI123_i26_:_dE SCII'lE_22 HEE NEITHE PARTY SHALL BE OBLIGATEC TC SUPPLY PEaCTIVE P.] W E R TC THE GTHER P AR TY AT THE 3CINT OF ISTERCCNNECTICN, PFCVIDED THAT BY ARR &NGEYENT S 3ET WEEN TFE SYSTEM OPEPATORS, A PaPTY RECEIVING POWER MAY SI MULT ANECUSLY SUPPLY REACTIVE PCWER TO TFE PARTY SUPPLYING PJWER TO TH E EXTENT NECES$aRY T3 vaINTAIN REASONAELF VCLTAGE L EVE LS, AND THE;EBY M SKE PR ACTICABL E THE TR ANSFER CF THE AMCUNT CP P3WER DELIVERED.
HOWEVEP, BY MUTUSL AGREEVENT SCTWEEN SYSTEM GPERATCRS, THE PARTY SUPPLYING PCWER MAY SIMLLTANE2USLY SUPPLY CEtCTIVE PCWER TO THE PARTY RECEIVING PChER I: NO.
IMPA! RMENT OF SEPVICE IS THEREBY CCCASICNED IN THE SYSTEM OF THE SUPPLYING PARTY.
SECliCN 425 - ?EAEX_EESEE2FC - <D13Sihg_fhg_3Cy3Elbyl33 EACH P AR TY WILL, INSOFAR $$ PRACTICABLE, PRCVICE SUCH AMOUNT 3 OF SPINNINf; AND REACY RESERVE CAPACITY IN ITS SYSTEM THAT, IN CONJUNCTION WITH SPINNING AND RE ACY RESERVE CAPACITY IN I NTE RC CNN ECT EC SYSTEMS, IT WILL NOT I M FCS: DISPROPGPTIONAfE LCaC SWINGS UPCN THE OTHER PARTY CR FAKE CISFRCPCRTICNATE CEvaNDS UPON THc OTHER PAP 7Y FOR ASSISTANCE IN VEETING THE NORMAL CONTINGENCIES OF POWER SYSTEM OPERATIGN.
SECIlC3_64&_ _E19* PChEE_SUEEll I'
IS THE INTENT CF THE PAPTIES HERETC THAT EACF C: TFEM SHALL PPOVIDE GENEP AT ING C AP ABIL ITY WITH ACEQUATE RESERVES CN ITS SYSTEM, E ITHER 3Y INSTALLATION OF GENERATING CCUIPMENT, FIRu
'URCHASES CR INTERCHANGE AGREEMENTS, SUFFICIENT AT ALL TIVES TO CA 0Y ITS OWN FIR
- LOAC.
NEITHER PARTY HERETC ASSUPES ANY Q E S PON SI B IL ITY FOR THE SUP FLY OF ANY ELECTRIC POWER OR ENERGY TC THE CTHER PARTY EXCEPT AS SPECIFICALLY PCCVIDEO PCR IN AN APPL IC ASL E S ERVICE SCHEDULE (ARTICLE III).
SECIICS 4.7 - EiLisAILITy CRCER Tn ASSU;c SEPVICE RELIaeILITY AND THE IN T EGR ITY CF SCTh Pa: TIE 3 500,000 VCLT TRANSMISSION OPERATION aNC TO ASSU;E BETTEC SERVICE CELIABILITY TO E ACH CTFER IN THE OPEGATIJN 0: THE INTERCJNNECTION, 90TH PARTIES WILL ACVISE EACH C'HE: CN ANY SCHECULED OPE: ATION CF THE SOE AK ERS ON TFEIP PESPECTIVE SIDE CC THE INTERCCNNECTION.
SECI1C3_s24 - <Ti"21121_CE_"SihL33asrc SN1 mpscaTinn oc =critavcyI
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IF EITHEP pap 7Y SFCULD FAIL TO MAINTAIN AND CPE9 ATE ITS LINES, EQUIPMENT iND CTHER F AC IL IT IE S IN ACCOR C ANC E W ITH THE
$TANDARDS REFERRED TO IN SECTION 2.4, THE CTHEP PAPTY SHALL HAVE THE DIGHT TJ CISCCNTINUE RECEIPT OF ELECTRIC PChER tND ENERGY FRCM OR DELIVERY INTO THE P AC IL I TIES IN CUESTICN, AFTCR GIVING NOTICE CF ITS INTENTICN TO D3 SC.
I: EITHEP PARTY SHCULD BE ADVISED OF, OR HAVE KNCWLEDGE OF, HAZARCCUS CONCITIONS EX IST ING CN THE LINES, ECUIPMENT OR OTHER FACILITIES 0.: THE CTHER DARTY, SUCH DA: TY SHALL HAVE THE R IGHT TO IvvEClaTELY CISCCNTINUE RECEI?T FOGM OR DELIVERY TC S LC H FaC IL I TIE S, UNTIL THE HAZARDCUS CONDIT ICN S H AVE BEEN PEMOVED AND THE LINES ANC GTHER EaCILITIES SHALL HaV E 3EEN PLACED IN A SAFE OPERATING CCNDITION: S'JCH PAPTY SHALL, HChEVER, NCTIFY THE CTHES tS SCCN THEREaFTER 35 RESSCNtFLY PCSSI9LE CF THE CAUSE FOR SUCH DISCONTINUANCE AND SHALL RESTCPE SERV!CE IMMEDIATELY kHEN SUCH CAUSE HAS PEEB RE90VFC.
IN EITFER OF THESE EVENTS E3CH PARTY SHALL HCLC THE CTHER PARTY FREE ANC UNHAC9ED AGAINST ANY AND ALL CLAIMS, LIABILITIES, LCSS OR EXoENSE R E SULT ING FROM SUCH DISCCNTINUANCE, EXCEPT SUCH AS RESULTS FPCM THE SCLE NEGLIGENCE OF THE OTHEP PARTY, ITS AGFNTS CR EVPLOYEES.
SSCIIC3_A40
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EACH PARTY HERETC SHALL, EY MUTUAL AGREEMENT, PERMIT CULY AU~'ERIZFC REo4ESENTATIVES AND EYPLCYEES OF THE OTHER TO ENTEP UPON !TS PREutS;$ F0F THE PURPCSE Cc READING CR CHECKING METERS, INSPECTING, TESTING, REPAIRING, RENEK INC GP EXCFANGING ANY OR ALL OF THE ECUIPMENT OWNEC 3Y THC OTHER PARTY L CC.iT ED CN SUCH PREVIS.:S ANC USED IN TFE PER.FCCMANCE CF 'HI S AGR EEYEN T CR :OR THE PURPCSE CF PEOFCRMING ANY CTHEP WORK f.ECESSARY IN TFE PERFOPVANCi C: THIS AGREEMENT.
SiCllCU_i211_- enrEnt3;;1:3_g3_3313I53a3gg EACH PARTY SHALL IN GCOD FAITH ATTEPPT TC CCCPCINST3 WITH TFE OTHER P AR TY THE SCHECULED YAINTENANCE C: ITS F AC IL I TI ES WHICH AFFECT THE INT EP CHiNGE CF PGnEP AND IN ER GY UNDER THI S AGR EEuEo'T.
15CIlC3_s2L1_:_25IEEElhAIIC3_CS-8"OUAIR C coHER SUEELIEL THE A.v0VNTS CF PChER AND ENEPGY TC BE SUPPLIEC CP CEEVED TC HAVE eEEN SU P P LI E0 9Y CNE PARTY TO THE CTHER PARTY LNCEQ EACH SERVICE SCHEDULE IN EFFECT HEREUNDER SHALL, EXCEPT AS CTHERh!SE PROVIDED IN ANY SERVICE SCHEDULc, BE DETERv!NED ON THE BASIS CF THE AMOUNTS CONTRACTEC FOR UNDER THE SERVICE SCHECULE AND SCHEDULED BETWEEN THE SYSTEM OPERATORS.
EaCH OC THE PARTIES HEPETO, INSCFAR AS CONSISTENT WITH ITS PESPONSIBILITY FCR CONYROLLING :RECUENCY, WILL CPEPATE ITS SYSTEv IN A vaNNER SO AS TO MAKE NET RECEIPTS AND DELIVERIES d: POWEP aND ENERGY, AS NEARLY AS PRACTICA9LE, ECUal TO SCHECULED RECEIPTS AND CELIVERIES.
ccering_g,12 - IganycgTgy;_Iggy3c:a c=
- :rrarr N = c rq INADVERTENT TO ANSFER CF ELECTRIC ENEFGY IS A TRdNSFER OF CNEPGY BETWEEN AND THRCUGH THE SYSTEMS CF THE PARTIES HER5TO DIFFE;ING CRO" THE SCHEDULE 0 CUANTITIES Co LO AD RES PCNS IB IL IT IES AS A PESULT OF THE INFEPENT PHYSICAL SNC ELECTRICAL CHARACTERISTICS 0 THE SYSTEMS, LIPITATICNS IN THE ECUIoMENT USEC TO CONTRC L THE FLOW CP POWER 2 ET W E EN THE SYSTEMS JP L I M I T a T I O.N S IN THE OPERATION OF SUCH EQUIPMENT.
AN INACVERTENT ENERGY ACCCUNT WILL SE VAINTaINED BY BOTH PARTIES aN C CLEaPED ;?"Y E!YE TO TIME AS PPESCRISED IN THE NAOSIC GU ICE S.
ARTICLE V MET E R ING, BILLING, AND SETTLEMENT SECI1CU_52L_ _EEI2EISS_EAClL111ES POWER AND EN ER GY DELIVERED IN EITHER CIPECTICN AT THE GSU-MPL POINT OF IN TER CONN ECT ICN CESIGMATEC IN SECTION 2.1 SHaLL BE MEASURED BY METERING F AC IL IT IE S PROVICEC BY GSU, EXCEPT A3 OTHERWISE AGR EED UNDEP THE SERVI CE SCFECULE WITH PESPECT TO A PARTICULAR TP ANS ACT ION.
IN THE EVENT ACDITIONAL INTERCONNECTION POINTS AF E ESTA?LISHED, THE METERING ARRANGEMENTS WILL'3E MADE BY MUTUAL AGREEMENT.
- r&l_51) ~ TN321L11031 TESTTUS lbS_*EtllhS_CE 2E1ESS THE ObN5RS OF METERS AND VETERING ECUIP":NT SHALL INSDECT, TEST, AND C ALI BR ATE THEIR EQUIPMENT AT REGULAR INTERVALS CF NOT MORE THAN ONE (1) YEAR, AS AGR EEC '8ETWEEN THE PSRTIES, ANC ANY IN ACCUR AC Y DISCLOSED SY SUCH TESTS SHALL BE PROMPTLY CORRECTED.
EITHER PARTY TO THIS AGREEMENT SHALL HAVE TFE RIGHT TJ HAVE ANY INTEFCHANGE METER TESTED AT ANY TINE AT ITS EXPENSE.
REPRESENTATIVES CF THE OTHER PARTY SHALL 8E aFFCRDEC OPPORTUNITY TO BE PRESENT AT ALL SUCH INSPECTIONS AND TESTS.
IF AT ANY TEST A VETER IS cCUNC INACCUR AT E SY MOFE THAN 27, aN ACJLSTMENT SHALL BE MADE IN SETTLEMENTS B ETWEEN THE D ARTIES TO COMPENS ATE 300 THE EA ECT OF SUCH INACCUFACY CVER A P R E C EC ING DERICD OF NINETY (50)
DAYS CR OVER aNY SHOR T ER PERICD DURING hFICH SUCH INACCURACY vaY BE DETEF MINEC TO HaVE EXISTED.
IF AT ANY T !ME A METER SHCULD FA IL TO REGISTEF CQ ITS REGISTPATICN SHCULD SE SC ERRATIC AS TO SE MEANINGLESS, THE QUANTITIES SUCH VETEF Was !NTENCEO TO RECCRC SHALL SE CETEUdINEC :RCu CHECK uSTERS I: SVAILABLi, CA CTE:oWISE FROY THE REST OET AIN ABL E CATA.
METERS SHALL e5 REAC AT rse eNo OF MONTH SY THEIP CWNER, ANC REPOESENTATIVES CF THE C7hEQ PARTY SHALL 3 E A.:RCADED OPPORTUNITY TO SE PRESENT AT SUCH READINGS.
THE SCHEDULE :OR READING METERS MAY BE CHANGEO BY MUTUAL AGREE 9ENT 0: THE PARTIES.
SECIlON_52' - TaZI1_aSD OTL 4 SG2EES23 SIAL _C" 3 EEE IN ADCITION TO THE RATES PROV IDE D IN THIS AGREEMENT AND TFE SERVIC E S CHEDULES E:FECT IVE HEREUNDER, AND RATE SCHEDULES APPL IC ABL E TH ERETO, EACH PARTY SHaLL PAY OR SHaLL REI.v8URSE THE CTHER FOR THE APPLICABLE PRODCPTICNATE DART OF ANY NEk TAX, C9 INCREASE IN EXISTING TAXES DUE TO aUCIT CHANGES IMPCSED BY TAX COLLECTCR, OF GCVERNMENTAL IM POS IT ICN GR CHARGE (EXCEcTING STATE, PARISH, C ITY, AND SPEC I AL DISTRICT AC ValacEM TAXES AND ANY TAXES ON NET I N 'OM E ) LEVIED CA ASSESSED AGAINST SLCH CTHER PARTY'S EL ECT R IC EUSINESS AFTER THE EFFECTIVE DATE C: THIS SGREEYiNT AND WHICH AFP ECT THE SERVICE UNDER THIS CCNTsaCT, EXCEPT as THE PCWER AND ENERGY 4AY BE EXEMDT UNDER LAN FRCM THE EFFECTS OF ANY SUCH TAX OR TAXES.
$3CLlC3 52' - SLLLlSG EXCEPT AS MAY BE CTHI DWISE EXPRESSLY PRCVIDED IN ANY SERVICE SCHEDULE, THE BILLING CF POWER, ENERGY, AND TRANSM!SSIGN SEFVICE DUcING A SPECI IC PERICD OF TI?1E SHALL SE CN THE BASIS JP -iME SCHEDULE FOR EACH INDIVICual TRANSACTICN IN ACCCRDANCF WITH THE TER*S OF THIS AGREEMENT AND THE PARTICULAR SERVICE S' FEDULE UNDER WHICH THE TRANSACTION CCCURRED.
EACH PARTY SHaLL PROVIDE THE OTHEF WITH ALL NECESSARY BILLING INFCRNATICN FCA THE PARTY TO PPEPACE TFE BILLING COVEPED BY THIS A G R E E.9 E N T OF ITS SCRVICE C RATE SCFEDULES.
SECIlGM_529 - 9'TTLiMESI SILLS :1R a N'C UN T S CU E EY EACH PARTY T TH: CTFEF HEREUNCER SHALL 3: PENDERED MCNTHLY SNC SHALL 9 5 CU E C1 THE 20TH DAY OF THE SUCC EEDING MO NTH OR ON THE 13TH DAY AFTER REC:IP" C; BILL,
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WH IC HE'/ 2 0 IS L ? 7,::.
payugqi ShaLL 3 :- M A O :. a? < i ". a c : : '...: a. : T.u.:
PARTY TC hHICH PAYMENT IS DUE AS THL7 pacTy 3y: LL CESIGNATE.
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':FE SHLLL BE ACC30 TO SNY O VE CU E A *dCLN T I'tTE): ST OATE SUCH P
! T WAS CUE, CO.vPCUNDEC CAILY UNTIL D'..
aT AN ANNUAL RATE CF 5% DLUd
PRIMI RATE cre ;mevEaC!al LO L'J S P. y g g6 IAVING TRUST CCMPANY, CNE WAL'
.,_:- - NEW YJRK,.'; E W yo:g, toc 15, IN E.:: 3C T O '4 THE CU: "., :.
I: SUCH ANNUAL TC ST ANY TIVE EXCEECS Tur..GHEST INT: REST ? ATE WHICH viY BE LEGALLY u.'3 JE C.
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ARTICLE VI ELECTRIC GEN: RATING CAPACITY SECllDU_hal -
EISCicL33 EACH PARTY SHALL PF0 VIDE AND F A INT A IN, AT ALL TIMES, ELECTRIC PCWER CESCURCES, INCLUCING THE DEPENCABLE CAPABILITY CF ITS ELECTRIC GENER ATING UNITS AND PURCHASES CF CAPACITY WHEN NECESSAPY, WITH THE OBJECTIVE OF CPEQATING SUCH RESCURCES AS RECUIRED TO CARRY ITS FIPV LO*D RELIABLY ANC ECCNCYICALLY 8Y PR OVIDING RE A SCNABL E PFCTECTION AGAINST LCAC FC:?C aST ING EPRORS AND EQUIPMENT caILURES, AS WELL AS P90VIDING ADEQUATE REGULATION OF CREQUENCY.
S?.CI1C3_ h ? - A:< :YE_faE1ClIX THE ESTABLISHuENT CC AN ADEQUATE ANC PROPER RESE;.VE CAPACITY REQUIREYENT FCR a SYS T E'A IS THE RESPONSIBILITY CF TFF INCIVIDUAL SYSTEM.
THE Da9 TIES HERETO AGREE TC FCLLOW WITHIN RESS]NABLE LIMITS AS A GU!OE THE THEN CURRENT PESERVE CAPACITY GUICE AS ADOPTED 04 RECOW4 ENDED BY THE SOUTHW2ST PCWFR PCCL C: NJPSIC CR ANY SUCCESSOF BCDY.
SUCH RESERVE REQUIREMcNTS SHaLL EE BASED ON THE SYSTEM'S LOAD RESPONSIBILITY TAKING INTO ACCCLNT :IRV PURCH4SES AND SALES.
NOTWITHST ANDING ANYTHING SAID 2BCVE C2 ELSEWWER: IN THIS AGRE5 MENT OR IN ANY SERVICE SCHEDULE, TFE PARTIES HERETJ iGREE THAT NEITHER oa9TY (BUYER) WILL B5 OSLIGATEC TO PURCHASE 1N Y CAPACITY FRJM THE CTHE P PARTY (SELLER) EXCEPT SY CXPCESS WPITTEN AGREEMENT DUASUANT TO EFFECTIVE SERVICE SCHEDULES.
FU9THER, IN NO EVENT SHALL EITHER PARTY ( 9UY ER ), UNDER THIS AGREEMENT OR UNDER ANY S ER VIC E S CH EC'JLE, PUPCHASE CAPACITY ROM THE OTHER PARTY (SELLER) IN SUCH AN AVCUNT THAT, EY MAKING THE CURCHASC, IT R ECUC ES TFE PED CCNT AESERVC CAPACITY CF THE SELLEQ EELOW THE PER 6.
CENT RESERVE CAPACITY ATTANED BY THE BUYER TAKING INTC ACCOUNT THE DURCHASE.
SECTI03_3,3_ _QcpcPrA gg,_[ao69ILr~g THE DEPENDAELE CAPABILITY CF ELECTRIC GENER ATING UN ITS IS, FOR DURPOSES OF THIS AGREEMENT, DEFINED AS TFE NET SUSTAINED FOUR (4) HOUR CAPA3ILITY, UNDER MAXIMUM SYSTEM LCAO CONDITIUNS, CF ALL GENE PATING UN ITS WHICH CAN 95 OPERATEC CCNCURRE.NTLY.
DEPINDAELE CAPAHILITY SHALL BE DETERMINED BY TEST.
THC RATINGS SHOULD TAKE INTO ACCOUNT CUEL CURTAILMENTS AND FUEL SUBST:TUTIONS AND SUCF RATINGS MUST NCT dEQU!RE A DEFICD GP CPERATICN AT A PECUCED LtVEL DUR ING THE REM AINDER OF SUCH SYSTEM'S DAILY PEAK PE ICD.
ACTICL: VII GENEPAL DRCVISICNS
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THE PPTICS HERETC RECCGNIZE THAT LCNG-RANGE PlaNNINC FOCP TI9E TO TIME MAY BE MUTUALLY BENEFICIAL TC THE Pa77IES IN TFE XECUTION OF THIS AGP: P1:NT.
EaCH PARTY vaY CCNSULT KITH TH:
OTHEF AND IF "UTUtLLY 4GDEED, JOINT STUCIES 1aY 4: CCNCUC~EC :Y TH: PARTIES.
- - - - - - a."119 - miennTo ri r a ai : entre:
c:cTrn THE TE 9 "UNCCNT3CLLaot:
ORCES" SH LL I NC L UD E, AUT IS NOT LIMITED TO, ACTS C: GCC, ACTS CF THE PUELIC ENFVY, : a I L u o. E C; FACILITIES, EXPLCSION, 3REAKOCWN, LCCD, AC CI CENT, E a o.T H O U i K E,
S T 0 t ti, HU 0! CANE, WINC, L IGHTNING, FIO:, E P IDE M !C, wa;, RIJT, CIVIL DICTURBANCE. L a 8 C2 CISTUReaNCE, STRI<i, SaaCTAG:. C1 CEST21!NT SY COURT OR DUSLIC AUTHORITY HAVING J UR I S C I CT IC N, FUCL CURT A IL ME NT, ;aTIONING, CR SHCPTAGE, vaTERIal SFORTeGE, CELaY IN DELIVERY, NATICNAL EMERGENCY, CELAY CR FAILURE CF 0:::URM5NCE 9Y a ~HIR D Pa4TY, GOVE;N4:NTal CELAY, aCTICN C IhaCTION (INCLUDING BUT NGT L IMITED TO ACTICN SOUGHT OR SUPPG4TED BY THE P t: R T Y ),
VCLUNTARY COCC: FaTICN IN ANY VETHCC CF, C C F; a IC'! WITH, Ca IN aNY ocCGPav
- ClP'/ENDEO OR REQUESTED BY, CIVIL C? VILITakY auTHL: ITIES, CR CTHE9 ACTS C: CCN C IT !CN S, WH:THi DF THE Savt 00 DIFFE;EM7 CHA;1CTE; ThaN 'HCSE aBCVE PEC: D;D TC, iNC EXCLUSIVE IN aLL EVENTS C: THOSE AC75 ANC CCNDITICNS C~SCRISEC !N SECTICN 7.9 W h !C H OPE 01 5 l'iO i; EN D E N T L Y, 3 EYCNC 7HE 0 :a SP'.a EL E C CNT CL C; THE DAP Y a?FECT::.
NEITHER PARTY SHALL 32 OE SP JN SI E LE TC THE C'H R :O; 03 LAY !%
OF FaILU;~ OF DFO:0MaNCE CF ITS CBL IG aTIJNS HEd ?UN C ? 2; iNY SE VICE SCHECUL: (EXCEPT THAT CSLIGaTIO.NS TC PAY "0NIis wHICH aE THEY CUF UN)Ea THE pcCVISICNS OF THI; aGP:E"ENT SHaLL NOT d5 EXCUSEG) kHEN SUCH CElaY CR :AILU;E IS CAUS D BY UNCCNTROLLa8L FOCCE.
TFE PARTY SUBJECT TC UNCONTcCLlaELE :CRCE SF LL USE ALL
- 5ASONaal: CILIGEP. E 'C CE"CV: OR CU2 TH: INASILITY, P0VIDEC THaT N3ITH:4 D a: TY SHaLL BE ;ECUI:5C TC SETTLE GR R: SOLV E L a9CC DIS 7U;BaNCES Oc S'RIKES OR ACCEPT OR AGREE TO GOVERNMENTAL C:
REGULATORY JF CEF S CP CCNDITIONS WITHCUT G9J:CTICN CP CONTEST CN ANY BASIS NJT aCCEPTA3L5 70 SUCH PAFTY IN ITS SCLE C I SC R E T I CN.
NOTICE C: UNCCNTCOLLAEL: CCCCE SHaLL BE GIVEN P, Y THE PARTY a.: F E C T E C AS SCON AS REASONABLY POSSIBLE.
<._c.c T.r _n _H__72 _2_ _ _ i.._t _a _a l d _T _v EACH Po?TY ( I NCEVN ITO R ) HERETO ASSUNES aLL
- SPCNSIBILITY CN ITS SID5 CF THE POINT C; INTE:CCNNECTICA FCC TH; DGhER aNC ENFPGY DELIVERED AN C R EC.: IV E C HEREUNCE3, as h5LL as FCP TF: WIRES, APPA:aTUS aNC APPURTENANCES OF ITS RESPECTIVE SYS~5.V US3D IN C ONN EC T I ON TH:REWITH, ANC SHALL PROTECT AND Sa"E THE CTHE7 PaPTY
( I ND E v11 T EE ) Ha;MLESS F:OV SNC AGAINST ALL ClaI"S, LCSS, CA" AGE, AND EXPENSE 0: EVEGY KIND AND CHaDaC*ER FOR INJURY C: CAMAGF Te THE PP90ECTY C INE INC: VN I' R GQ CF THIRC Pa: TIES C FOR INJUCIiS TO C; CESTH O~
ANY PERSONS CCCASIGNEC Ev SUCH POWER aNC ENECGY 0; BY SUCH WIPES, aP0aRATUS aNC SDPUOTENaNCES CN ITS SIDE CF THE POINT OF INTERCCNN:CTICN, UNLESS SAIC INJUPY, CEaTH, CF DavoGE SHaLL HaVE BEEN CAUSEC SCLELY BY THE NEGLIGE AC E OR WILL;UL MISCCNCUC" JP THE INDEYNITEE, ITS AGENTS, SERViN7C C: EYPLCYEES, O?
v THE CAILUFE CP TFE I.N D E MN I T E E TC CC AND PE2FCCV SCME SECVIC, CUTY CP COVENANT I'AP]S;D BY 7HIS AG;EEMENT, IN WHICH EVCNT THE 11C5MNITEE SHaLL 5AVF THE IND:vNI"OR CN '+CSE SIDE C:
THE PCINT 1: I NT E C CCNN EC T I ON SaID INJURY, CEaTH, CP Da"a3E YdY HaVE CCCUROED H"L355 000 tNO aGAINST AL L Cl a I"S, LCSS, Ca t'? Gi,
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IS CASE ANY claim, LCSS, CP Cav4GE CCCoSICNEC SY SUCH DOW E A ANC :NE;GY JO SY SUCH wl;ES, aFPaR2TUS SNJ APPUP'INANCES SHaLL BE CAUS:3 PY THE NEGLIGENCE C WILLFUL VISCONCUCT C JF =aILUa: r; PEc C veNC5 PY cnTH P2CTIE$, TH3I; AGENTS, SEOVSNTS :: EM LCYi: 2,
'aND IC C T SHOV' J H l. V I :E3N CAUSi SCL5LY ?Y 'H3 E.5GLI33NC3 C:
WILL:UL "ISCCNCUCT 0: C7 :lILURE C: :ERO R.v iNC E SY CN 0177Y, ITS GEMT?. SF:v NTS C. EMPLOY 5fS, SUCH LCSS C: 0191GE, I: ?NY, SFiLL SE SCO't? EY BOTH caATIES I '!
- C U.il PCOTICNS.
.c :r_ T r mJ_L c e_ u n_ t s_ e _: v t y s T r n_ s EACH DARTY AG a E E S 'IP A T IT WILL C: ERAT 5 ITS RESPECTIVE FACILITIES IN ACCJRC ANCE W ITH GC00 UTILITY
'J R A C T I C E AND VILL NOT, EXCEPT 15 CTHERWISE ORCVID:D SY TH: TIRMS C: THE iPDLICiELE SEaVIC E S CH3CULE, CISCRIMINATi 3:TWF:N S ~a V IC F TO ITS CUSTCME S
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THIS AG:EE"ENT C: OF a f,Y S0 VIC3 SCHECUL: HEREUh05: IND *I'HOUT
_JSING CF wi1VING ANY R!GHT TO MAINT1!N SUIT C
UESEQJ:N' LCSSIS CP L i !.9 5 CC C U.: R I N G C: ARISING CURING THE T: " 0 "HIS AG::Ev5NT, SNC ECOV 9:Y IN ANY SUCH SUIT 5 HALL
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- IFING IN CCNNOCTIJN 'd!TH THIS AG EE*:NT, SHALL NOT Si Ci3YC i WAIVE:
NI".i :?S ECT TC ANY CTF::." i T T E R A R I4 I ?. G lN CCNN CTI_'N r..-u cu ' L
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A u/c,wp ng; ofritn//: RepenA773 MkWR* ON6 a V, THIS AGR E E M E NT IS SUBJECT TO PIESENT ANC FUTURE VaLIC LAWS AND VALIO CRCERS, RULES, ANC REGULATICNS CF DULY CCNSTITUTEC EGUL A TOR Y SUTHC ! TIES H AVING JUPI SCICTION.
THIS AG EE9ENT S H i l l.
i NOT BE EINDING UPON THE PAPTIES HERETO UNTIL INITIALLY APP: CVED l
OR ACCEPT ED ACP FILING BY THE F:DERAL ENERGY R:GULATORY COM9ISSION OP OTHER REGULATO:Y BOCIES, I: ANY, FiVING
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JURISOICTION, WITHCUT CONDITICNS, EXCLUCING RA'ES, UNaCCEST3SLE TO EITHER PARTY, EACH PAPTY EXPR E S S LY PS3ERVES, HOWEVER, THE RIGHT TC SPPEAL AND CTh:RWISE CCNTEST ANY CE': 1*INA' ION 0; RATES NC7wNC ces/rn,wz2 UrpnM 0//4xi dr CCH37;PCED.<S &72'sYAG UNACCEOT:. ELE TC 1T. su my tusy ;ng nica r ce 7we pary,=unnt:inNG m:ita ukad l nHs A 28 moi 7 70 unsu? grexxzy m,vkir spp,veg77cy 7c Tw.S~,s,,g,p,c, i cg,, wryg~~
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w " o" 4 " ~ ~ M,o wMw MOVd' '?if5 S C7CN TO ANY NCTICE, OE*ANC, OP QECUEST PROVICEC FCP IN THIS 1GREEMENT' T;,,=_ gL) gp OR GIVEN IN CONNECTION WITH TH IS AGR EEMENT SHALL 3E C::450 TC BE PHS DCO-PROPEPLY GTVEN I: SENT SY R:GISYE:ED MAIL, DCS'aGI POEDaIC, TC:
M GULF ST ATES UTILI'IES COMP ANY CPESIDEN' P.
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777C4 AMD FISSISSIDOI PCWER C LIGHT CCM P ANY PRESICEN' P.
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ECX 1640 JACKSCN, MISSISSIPPI 39205 THE DESIGNATICN C: THE DE:SCN TC BE NOTI:IEC GP THE 2:0:555 C:
SUCH PE:SCN vAY E ': CHANGED ::Cv
I"E TC TIV: 3Y W: 1T':N NOTICE.
TO THE EXT:NT AND UNCEP THE CCNDITIONS iRRANG D BY THE OP3RA'!NG PEPcES:MT ATI VE S, A.CT I C E S AND REQUESTS IN CCNN ECTION AITH C EL IVE : Y 00 REC:!aT JF CWER C.
IN CONNECT!ON WITF OP U TICN C 21CILITIES WILL 35 VALIC I: GIVE'. OY TEL:Duch5 JNC RECC C:C IN SYS": V
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a EaCH DalTY HERETO SHALL SUPD LY C CNT INUCUS SERVICE ANC AVOIC INTECGJPTIONS ?; CUR 1aILVENT CF TWE SERVICE WHICH I' 9AY 3E UFD R JBLIGATICN TO SUPDLY HER:UNCEO, BUT NEITHER CF Tu: Da: TIES SHaLL DE CCNS IDEREC TC MAVE CJPvITTEC a 3 PEACH CF THIS AGRE: MEN T CD ANY
.aILEC IN aNY CF ITS CSLIGATI:NS SERVICE 5CH:CULE OR TO HAVE HEREUNDEF C1 UNCER ANY SERVICE SCHECULE 9Y OESSCN 0 ANY INTERRUDTION nR C UR T a I L v.E NT CAUSEC C2 CCCaSICN:C (I) EY INST ALL AT ION, MAINTENANCE, REPAIR, TEST, INSPECTIrN, CR QEPLACEVENT OF FQUIPMENT IN ACCCRCaNC: WITH ACCEDTEC UTILITY PRACTICE; (II) :Y FUt:CTION C: UNDERF7ECUENCY Relays C; CTHER au70'daTIC LJAD SHEDDING ECUIP9ENT TC PRESE VE
'97 INTEGRITY OC THE SUPPLYING PaoTY'S SYSTEM CR INTEGCONNECTEC 9YSTEMS, CR BY vaNUal LOaC SHECCING IN iP EMEPGENCY % FEN IN THE SUPPLYING PARTY'S JUCGMENT, SUCH aCTICN WILL TENC TO PRE VcNT Co 2LLEVIaT; a THCEST TO THE IFTEGEITY 0: THE SUPPLYING Pa: TY'S DChE: SUPPLY 00 TRANSMISSION SYSTEu; (III) 9Y THE NEGLIGENCE OF 7WE SUPPLYING PaPTY, ITS EMDLOYEES CR CCNTR2CTORS, aNC CCES NCT CCNSTITUTE GROSS NEGLIGENCE GF GR a WILLFUL DEFAULT BY SUCH Pa7TY; 00 (IV)
PY A4 UNCCNTC CLL A ELE FCCCE, as CC: INEC AEOVE CO ::FECTED DUFSUah7 TC 'H: 'E;YS O F ANY SE0VICE SCH:DUL:.
REAS"NABLE CILIGENC SHALL, HOW:VFo, 85 EXEPC ISED TC JESTCRE SE;VICE 15 C;OMPTLY AS POSS!dLE AFTER THE CCCURRENCE CF ANY SUCH INT: 0PUPTION OR CUPTaIL": NT.
EaCH FaRTY CHeLL 'aVF THE RIGHT TO INTEDDUP-CQ CU T AIL SERVICE iS EXPR:SSLY 9;CVIDED IN THE aFFLICABL SECVICE SCHEDULS.
INTER:U?TICNS ad. C CURTAILM:NTS Ma0E :CR THE PU;?OSE C:
INSTALLING, MAINTAINING, ;ERAIRING, TESTING, INSPECTING, OR RE PlaC ING EQUIPvENT SHALL Si vaCE INSCFa4 AS PRACTIC13LE AT SLCH TIu5 ANC IN SUCH MNP:n AS SHALL CCCaSICN lei.ST I'iCCN V E N ! :N C E TC THE CTWCC Dio7Y iND C '- iLL SUCH CCCaSICNS REASCNaSLE ADVaNC:
NCTICE SHfLL 3E G: VEh T' TnE CTHER PSDTY IF TH: NATURE 0: THE
$!TU3"!ON PEP 9ITS UNL SS CTH:9 WISE POCVICEC IN Tm; SE VICE SCHECULE.
CUATHER, THE SU P P L Y ! NG 019 7Y ' S C9LIGaTI:N TC SucPLY SERVICE HEQEUNDER CR UNCER ANY SERVICE SCHECULE IS iLSC 17 ALL TIVES w'E*H:0 CUBJECT TC ANC THE SUPPLYING P AF TY SHALL NOT :E LIA:LE, dY CCNTRACT C; OTHE: WISE, C: ANY CavAGES C: LOSS, CI:ECT OR CONSECUENTIAL, EY REASCN OF (I) CURT AILMENT E Y THE SUPPLYING PARTY OF ANY SEPVICE CR DEFUCAL BY THE SUPPLYING PARTY TC SUPPLY A00! TION A L C AP AC ITY O R SERVIC E DUE TO THE SLP PLY!NG Di9 TY ' S IMPLEMENTATIONS CF ITS CURTAILMENT PROGRAMS ( W W IC H PROGEAv5 *AY PROVICE FC: PRICRITIES AS BETWEEN VARIOUS CLASSES ANC CaTEGGFI:S OF CUSTCPERS AND VARICUS USE CF SERVICE, MAY SE 190LEMENTED SYSTEV-WICE, DEGICNALLY, 09 LCCALLY IN TFE OISCRETICN C: THE SUP LYING DaPTY, AND YAY BE AMENDEC C0 SUPPLguENTEC EY'THE SUPPLYING PARTY ROM TIME TC TIME) W H EN EV E : THE SUCPLYING PA TY IN ITS DISCRETION, WHICH SHALL NOT B E EXER CI S ED UNR: ASONi3LY, DEEvS SUCH I MPLEM EN' AT ICN TO 6: NECESSARY SEC AUSE IT IS EXPER IENC IN3 CR IS ABCUT TO EXPER IENCE i SFCRTaGE O.: CADACITY (GENE: ATING CR TRANSMISSIGN) GR ENERGY RESULTING F CY iNY CAUSE, oRoeg SUBJECT TC ANY T'.'
CF 1NY EGULATCRY iUTHC9ITY HIVING JU ISOICT ION; (II) CURTAILMENT 0 ANY S E 9 7 I C E v 10 ~ :Y THE IUP LYING DAPTY IN CCVPLIANCE WITH CRCERS OF RECUESTS 0: 1N Y GOVER NM EN Til AGENCY CL3 TAILING, CCNSERVING, OEALLOCATING, CP OIVER TING iVi!LAELE PCWER RESCURCES, FACILITIES, C: ;UEL (INCLUDING BUT hCT LIMITED TO C:CERS SOUGHT CA SUPPC;TEC 3Y TH:
SUPPLYING PARTY); OR (III) ACCEPTANCE BY TH SU DLYING D iRTY (EITHER NITi CCNT:iCT C: W ITHCt'7 ) CF NEh CLSTCMEOS ANC iCCI*ICNil LOACS C: CUSTOME 5 BEING SE9VED 03 NE4 INTERCCNN:CTICh5 07 NEW C2 ADCIT ION A L SERVICE TO I N T E :C O NN EC T E C PARTIES EVEN TFCUGu COI"G SC MAY i F P EC T THE CTHER PARTY FE ETC EY INCREASI'lG THE :.v C U N T,
FRECUENCY, OR CU:aTION CF CL3TAILbENT CF SE: VICE TO SUCH CTH:4 DL TY OURSUANT TC SUCH OPC3?A*S UNLESS THE SUPPLYING Oa: TY iCT2 IN =a0 C a !7H IN ACC EP T ING
'H E NEW OP iCCITICNil LCat, I NT ERC CNN CTION, C: SE VIC:.
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'M SLOCLYING oiATY WILL DACVIDE TC THE OTHER PA: TY A CCPY C: SUCF ::CG7195 15 SUPPLEY: NTEJ, "CD!:IED, INC IN E :.: EC ' :RCS ~IVE ~C TIVE.
EiCH PA9*Y $ HALL EE :ULLY ESPCNSIBLE :CR INSTALLING CN I*S SICE CF TH: DCINT C: SELIVE Y ALL ECUIPv5NT NECESSARY TC ENa5LE I~
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EcccCT SUCH CUPT A ILuE NT iS MiY 85 00CVICEC CC: CR 2ECUESTEC UNF:R SUCH PRCGPAYS.
IN THE EV?NT HE SU3DLYING PARTY CCES CLOTAIL aNY SUCH SECVICE TC THE CTHER PARTY PURSUANT TC SUCH P: OGOA", SUCH CTHE:
PARTY a3 PEES ThaT UPON QECUEST IT SHALL IvvECIATELY TAKE ALL ACTION NECESSA;Y COR IT TO TAKC, IF ANY, TO ACHIEVE THE R:QUESTEC CUPTaILVEhT.
IN THE EVCNT SUCH CTHE4 PARTY DCES NC UCJN RCOUES" BY THE SU P3 LYING P ARTY IMYECIATELY CETAIN THE oEQUEST:D a> CUNT CP CUCTAIL"ENT, THEN SUCF AILU7E SHILL CCNSTITUTE a D9 FAULT 3Y THE CTHER O ' R TY HE9EUNDEF aND, IN ADDITICN TC SUCH CTHEQ C E,C C U 2 S C
'S M A 'r GF aVAILABLE "O THE SUPPLYING Pa;TY EiSEC UPCN SUCH 1::AULT, THE SUPP!YING PARTY SHALL HAVE THE 71GHT TC TCTaLLY INTER >UDT ANC SUSPEND $E3VICE TC THE CTHER PARTY WITFCLT FU: TrEc NCTICE JU;ING THE PE:IOC SUCH CURTAILMFNT IS IN EF;ECT.
WHETHE: THE RiC EIV ING PAQ'Y HAS THERETOFORE ACHIEVED REQUESTEC CUpTAILVENT CR NCT, NOTHING FEREIN SHALL LIVIT THE SUPPLYING PADTY'S RIGHTS T3 REQU IR d
.LPTFER CU:TA!LNir.T 4Y, Ec TC INTE9;UPT SERVICE TG S U" w RECEIVING DARTY NCR CTHE R b ! SE LIMIT THE RECE!VIMG Da D TY' S P E S PCN '!a IL IT IES H E? EUNCE P.
IF 7 IS 014CTICAELE TO CC SO Ur.CER THEN EXISTING C1NOITICNS, THE SUPPLYING pap'Y SHALL ATTcvPT TO GIVE THE QECE!VING PaQTY LOVaNC E NCTIC CF ANY !NTERFUPTICN CF CURTa:LUEST, aH IC H JCTIC:
MaY EE3Y TELEPHONE, ELEG?aPH, OR CTHER VEaNS, is APP: 7PRIA'E; PcCVIDEC, HJWEVER, THAT TFE SUPolYING PA0TY SFtLL HAVE Tu: RIGHT TO INTE:: UPT CA CU:TtIL SERVICE EVEN W!TFJUT NOTICE (EITHiO 3Y AUTCMATIC 5)UIPv5NT OR CTHERWISE) W F E F, TFi99 IS NnT : : ^. 31 N A B L E TIuE UNCEO THE CIRCUPSTANCES TC GIVE.NCTICE'.
AS USEC IN THIS SECTICN, 'HE 70: "5 "CLRTAILVENT" ANC " CURTAIL" SHALL 04 iLL PUFCCE:S INCLUCF VOLTAGE :ECUC71CNS CO AENC MALI"'ES,
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SUPPLY, SLSPENSICN3 CF SEFVICE, A.N 3 ANY CTLE: FCRFS CF YOD I : I C A T I ON, 0:CUCT!CN, CR INTERCUP71CN, IN WHCLE 03',
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- ar IT IS UNDERSTCCD ANO AG9EEC TFS-THIS AGREE"ENT SHALL 3E M I SS ISSI PP I GOVERNED BY THE L AWS CF THE STA72 CF L :L I :I J '.- ANC THAT ALL TF:
TEQ95 AND PROVISIONS HEREOF AND THE RIGHTS AND CBL IGATICNS C: THE PARTIES HERETO SHALL SE CONSTRUEC ANJ ENFOPCEO IN ACCCRDANCE blTH THE LAWS OF SAID STATE, ANC IN ACCCC C ANCE W ITH ANY AP LICABLE FEDERAL LAW.
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- :v:n i c e r: paart=c EXCEP T AS OTHERWI S E S PECI FIC ALLY PRCVICEC, NOTHING CCNTAINEC IN THIS AGREEMENT SHALL BE CCNSTRUED TC ABR IDGE, LIVIT, OR CCPGIVE ANY 0; THE PARTIES HERETO CF ANY V:ANS CF ENFCRCING ANY REMEDY WH IC H IT MIGHT CTHERWISE HAVE, EITHE: AT LAW O2 IN ECUITY, BEFORE AN 10*INISTRATIVE AGENCY CR CTHECWISE, INCLUCING THE RIGFT, I: ANY, CF INJUNCTIJN AND SPECIFIC PEFFORMANCE, :04 THE RPEACH CF ANY CF THE PROVISICNS HERECF.
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3 ns-_ ----.c.e.r a c-J.a r, a c t t r.S. c THIS AGREEMENT SHALL INURE TO THE SENE:IT CP ANC SE RINCING UPON TH: SUCCESSGoS ANC AS SIGNS OF THE QES P ECT IVE P AR TIES 'ECETO, BUT I SHALL NOT SE ASSIGNiBLE.BY a PARTY h!THOUT T H E w' R I T
- E N CONSENT CF TH: CTF:R PA3TY EXCEPT TC a SUCCESS 0P IN THE 035: ATION OF ITS P: CPEPTIES IN TFE STATE / STATES IN mH!CH THF ASSIGNING PARTY OPERATES.
s : r T r m1 7112 e:veraarirTv I.: ANY CLAUSE, SENTENCE, DARAGRAPH, C4 P a :.
0 : TFIF AGR:E" "7
C? ANY SE: VIC: SCHEDULE SHCULD CR ANY REiSCN 5: PINALLY ADJUCGE 9Y ANY COLFT C: COMPETENT JUQISDICTICN TC SE UNC:NS I UTI NAL :?
INVALI2, SUCH JUCGMENT SHALL NG7 AF;ECT, !v 1?R C7 I '. V A L I J A T E
E CEvaINOE;
- THIS 2G'EEvENT AND THE SE3VICE SCHE 3ULOS, 30T SHALL E CCN: INEO IN ITS OPERaTICN TO TWE CLAUSE, SENTENCE, PA:,3Gaa ',
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'09 at;Y PAPT THE: elf, CI ECTLY IN'40L'/iC IN THE CCN70CV 35Y, IN WHICH SUCH JUDGMENT HAS BEEN RENCERED.
THE UNC CN S T ITUT ION A LITY,
NVALIDI'Y 19 INE: ECTIVENESS OF ANY CNE 29 VC E 03.CV! SIGNS 09 COVENANTS CONTAINEC IN THIS AGREEMENT C7 aNY C: ThE 5:PVICE SCHECULES SHALL NOT RELIEVE THE CC-ChNERS F 0 0.*
LI AB IL ITY TO MAKE THE PAYMENTS HEREIN RECUIRED TO BE.va0E.
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r NOTHING IN THIS AGR: EVENT SHALL 35 CCNSTRUEC AS A ST!:ULATICN POUR AUT7UI, ANC NO TFI;D'DA4TY NOT A PARTY 70 'HIS AGPEEVENT SHALL BE ENTITLED TO EN:ORCE THIS AGREEVE'JT AGA:NST EI?HE2 PtRTY HERETC.
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IN wlTNESS v.HE:ECF, TFE UNCEPSIGNEC PARTIES HAVE LULY CN EX ECUT EC THE aGPEC' DENT IN 1978.
GULP STATES LT I L I T I 9 5 C C v ; 4'.Y aY_-_---___-_-_-----_--_---
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TITLE---.-----__-------
PISSISSIPPI CC.50 C LI3hi CCMotNY BY______-
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12/9/78 E:GIBIT G SERVICE S ^'liEOULE TS-2 3CI.K PCWER TRA:!SMIS3:CN SERVICE FCR SMEPA MISSISSIPPI PCWER & LIGIIT CCMPANY and SCU'DI MISSISSIPPI EI.EC"'RIC PCWER ASSCCIATICN SECTICH I - PURPCSE 16.01 It is the purpose of this schedule to facilitate the exchange of bulk power by transmission over the trarsmission facilities of Mississippi Pcwcr & Light Company (CO:pany) between South Mississippi Electric Power Association (SMIPA) and any entity with which Co=pany has an Interconnection Agreement; and between SMEPA and any entity (ies) engaging in bulk power supply with which Cc=pany is not interconnected by and between whose facilities Cc=pany's tran.<. :ission lines and other transmission lines would.
form a continuous electrical path, provided that permission to utilize such ither transmiscion lines has been cbtained by SMEPA and the arrangements reasonably can be accc:=cdated from a functional and technical standpoint.
16.02
" Bulk Pctar" (pcwer) means the electric pcwer (kilcwatts) and any attendant energy (kilowatt hours) supplied er made available at transmission voltage by one entity to another.
16.03
" Entity" = cans a person, a private er public corporation, a munici-pality, a ec-operative, an asscciation, a joint stock asscciation or business trust cwning, cperating or proposing to own or cperate equipment er facilities for the generation, canc=ission gr distributien of electricief, provided that, except for =unicipalities er rural electric co-operatives, " entity" is restricted to those which are er will be public utilities under the laws of the State in which the entity transacts or will transact business under the Federal Pcwer Act, and are or will be providing electric service ".nder a centract er rate schedule en. file with and subject to the regulation of a State regulatcry cc ission or the Federal Energy Eegulatcry Cc issicn.
SECTICN II - CHARACTER CF SERVICE AND AVAI'.ASILI~"f 16.04 Service shall be delivered at ncminal 115,000 volte or such higher voltage as may be available at the point (s) of interconnection.
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16.05 Ianc-Term Firm Service:
Cc=pany will furnish such transmission service on a firm basis in accordance with this Schedule to the exten: Cc=pany has existing transmission capacity available to provide such service under sound engineering and cperating practice and subject to the. follcwing stan-dards:
a)
Such service will neither impair the ability of the Cc=pany to render adequate service to its custc=ers or reduce the reliability of electric service by Cc=pany to its evn custccers during the term of the scheduled service; b) such service will not endanger or i= pair the operation of the Cc=pany's system, or create unsafe conditions en the system or any of the facilities of the Cc=pany cr its customers or parties with which it is interconnected; c) such service shall not require the Cc=pany to construct or install any new facilities; hcwever, if all of the following conditiens and the other standards described in this schedule are met, Cc=pany will include in its planning and cens rection program sufficient transmission capacity to accc==cdate prcposed transmission seriice under this Schedule:
(1) the participating entity (ies) gives/give the Cc=parf sufficient advance written notice of the details of the requested service as may be necessarf for Cc=pany to plan and ccmplete frca a func _ional and technical standpoint the facilities deemed necessary by Cc=pany I
_3 to provide such service in accordance with Cc=pany's const.ruction and operating standards; (ii) the participating entity (ies) fully ccmpensates Cc=pany for the cost of such facilit.;es beyond the cost Cc=pany would otherwise incur for its cwn use, d)
In the event the supplying entity is unable fcr any reascn to supply pcwer for transmission, the Ccmpany shall have no responsi-bility to deliver such power frc= its own or.other source (s) ;
e) the determination of the availability of existing transmission capacity of the Cc=pany during the proposed scheduled period shall be made on the basis of existing lead, future contracted or projected new lead beyond normal lead growth, previcusly scheduled lead, and nor al lead grcwth of the Ccepany, all detar=ined by the Ceepany.
f)
If the rcquested transmission seriice involves trans=ission di-rectly or indirectly over the facilities of a third u-llity s
system, SMEPA will =ake arrangements for use of those facilities directly with that third system, and Cc=pany shall not be obligated to cc=rence transmission service until such arrangements have been made.
g)
Service shall be fer a period not less than twelve (12) months and scheduled in writing a: leas thirty (30) days before initial sertice is rendered.
Such service is available caly by cpecific agreement, execur,:ed by an authorized officer of the Cc=pany, and each participating entity.
~1-16.06 Short-Ter: Fir Service:
Cc=pany will furnish transmissicn service in accordance with the conditions set forth in Secticn 16.05, Leng-Tern Firm Service, except that scheduling of such service may be for a pericd of not less than one week, to be scheduled in writing en an hourly basis at least 48 hours5.555556e-4 days <br />0.0133 hours <br />7.936508e-5 weeks <br />1.8264e-5 months <br /> before initial service is rendered.
Such. service is available enly by specific agreement, executed by an authoriced officer of the Cc=pany, and each participating entity.
16.07 Mon-Firm Service:
Cc= pan' will fur.ish transmission service on a non-firm basis in acccrdance with this service schedule to the extent Cc=pany has existing transmission capacity available to provide such service under sound engineering and operating practice and subj ect to the following standards:
a)
Such service =ay be interrupted withcut liability to *he Cc=pany; b)
Cc=pany will, when circumstances permit, give entity (ies) advance notice of such interruptions;
'c) such service will neither impair the ability of the Cc=pany to render adequate ser cice to its custc=crs or reduce the reli +4' i y of electric service by Cc=pany te its cwn custc=ers during the ters of the scheduled service; d) such service will net endanger er i. pair the operation of the Cc=pany's system, er create unsafe conditions en *.he system or any of the facilities of the Cc=pany or its custc=ers or.carties with which it is intercennected; e) such service shall not require the Cc=pany :: ccnstruct er install any new facilities;
f) in the event the supplying entity is unable for any reason to supply power for transmission, the Cc=pany shall have no responsibility to deliver such pcwer frc= its cwn or other source (s) ;
g) the determination of the availability of existing transmission capacity of the Cc=pany during the proposed scheduled period shall be made en the basis of existing lead, future con-tracted or projected new lead beyond nc=al lead growth, previously scheduled lead, and norra. load grcwth of the Cc=pany, all determined by the Ccepany.
h)
If the requested transmission service involves transmission directly or indirectly over the facilit:es of a third utility syste=, SEPA will make ar ange=ents for use of those facilities directly with that third system, and Ccmpany shall not be obligated to cc==ence transmission service until such c.rrange-nents have been =ade.
i)
Service may be scheduled in writing en an hourly basis at least 48 hours5.555556e-4 days <br />0.0133 hours <br />7.936508e-5 weeks <br />1.8264e-5 months <br /> before initial service is rendered.
Such service is i
ava ' *'a only by specific agreement executed by an authcriced officer ~ of the Cc=pany and each par-icipa-dng entitI.
16.08 Since emergency conditions or required =aintenance can cause the syste= capability tc be mcdified as conditions of the mc=en: dictate, -he capacity specified by the Cc=pany as being available, is available Only when -J.e rans-mission and generation system is in its ner.al cperating cde.
.%. -,. m. I..
., 7,... -
a.
- 2. _.. v v
16.09 Lanc-Ter~. 'ir service:
"'he net acnthly rate fcr such ransmissicn service shall be 50.75 per kilcwatt of contract demand.
16.10 Short-Term Firm Service:
Ihe net =enthly rate for such transmission service shall be at the rate of S0.173 per kilowatt of contract demand per week.
16.11 Mon-Firm Service:
The net =cnthly rate for such transmission service shall be 1.21 mills per kilewatt hour.
The minimum menthly hill for service shall be S1,CCO.
16.12 Contract Demand:
The contract demand shall be defined as the =a.v.imu=
capacity scheduled to be delivered during the centract period.
16.13 Losses:
Capacity and energy delaveries to SMEPA's interconnec~ don points shall be 97% of such capacity and energy input into the Company's trans-mission system for deliveries to SMIPA. Where metering equipment measures deliveries at 13,800 volts, an additional 1% adjustment for transformer lesses shall be made.
16.14 Bills for service under this schedule shall be rendered menthly to SMEPA and shall be payable in acccrdance with the Intercennection Agreement, Article VII, Billings and Payments.
SECTICN IV - REG"LA" CRY APPROVAL 16.15 The effectiveness of this schedule is contingent upcn any requisite regulatory approval and the administrator of the FIA.
However, nothing contained herein shall be construed as affecting in any way the right of the par y furnishing service under this rate schedule to unilaterally =ake application to the Federal Enerc.v. Fac. ulatcrv. Cc==ission for chanc.e in rates, charges, classification, er service, or any sale, regulation, or contract relating chereto, under Sectica 205 of the Federal Pcwer Ac and pursuant to the Cc:caission's Rules and Regulatiens prc=ulgated hereunder.
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,1.<.
16.16 This schedule shall becere effec-dve - - " ~
'y with -he Inter-connection agree =ent daced and shall centinue in force concurrently with said agreement provided that
~7-either party =ay terminate this schedule by written notice given to the other party not less than five (5) years in advance of the designated date of terminatio n.
EXECU'"ED as of
- =
MISSISSIPPI FCWER & LIGHT *C0!GA TY By President ATTEST:
Vice President and Secretary SOU'HI liISSISSIPPI ELECTRIC PCWER ASSCCI.ATICII Ey Manager ATTEST:
Secretary
EXHISI' a TO POWE9 INT:QCCNNECTICN AGFEEMENT BETWEEN CUL: STATES UTILITIES C YPaf Y AND MISSISSIPPI POWER & L IGHT CCVFaNY SE;VICE SCFECULES
- _2 _7 _
7 c:altre : r s :, i i _: c a
a SERVICE SCHEDULE ES - ET'ERGENCY 53?VICE SERVICE SCHEDULE ITS - INTECCONNECTEC
=cT: eCH ECUL E GITS
---~~
~~
?aT SCHECULE MITS SERVIC SCH3OUL CD - SU2DLUS POWER SEC.VICE
SCH. ES DAGE 1 SERVICE SCHEDULE ES EMERGENCY SERVICE 1978. TO BE 0.l THIS SCHEDULE ES IS AGREED TC CN _ _ _ __
EFFECTIVE UNDER, AND $5 A PSRT OF, THAT INTERCChNECTION AGREEYENT BETWEEN GSU AND MPL, (HEREINAFTER RE.:ERREC TO AS " PARTY" OR
" PARTIES"), DATED ________
1978, (HEREINAPTER REFE00EC T'O AS
" INTERCONNECTION AGREEMENT").
THE TERM CF THIS SERVICE SCHECULE SHALL QUN CONCU RENTLY WITF THE !NTERCCNNECTICN AGREEMENT, PROVIDED THAT E I THE R PARTY CAN TERMINATE THIS SCHEDULE 3Y WPI' TEN NOTICE GIVEN TO THE CTHER PARTY NOT LESS TP2N : CUP (4) YEARS IN ADVANCE OF THE TERMINATION DATE.
SECIIOU_1_ _E21111hS_A2Ea3E122LIS 1.1 IT I. RECCGNIZED CY THE PARTIES THAT TFE ELEVEN COMPANIES LISTED IN THIS SECTION HaVE VARIOUS aGREEvENTS IN C
- CNTPACTUal ARPANGEVENTS OF V RIOUS C AT ES AVCNG AND m:TaiEN V A R I CU S 0.NE S O F T HE ELEVEN CC'PaNIES, INCLUCING THE INTERCCNNECTION 1GR E E M ENT, PRCVIDING avCNG CTHE0 THINGS FCP PURCHASE, SALE, AND EXCHANGE OF ELECTRIC PCWER AND ENERGY as WELL AS P0 3 D a 2T I C I P A T ION IF THE PLANNING, CCNSTRUCTION, CINaNCING, OPERATION AN C V AINTENANCC Jc AN EXTPa-HIGH VCLTAGE ELECTRIC TQAhSvlSSION SYSTCM.
1.2 THI EL?VEN CCvPANIES 9 :i;;EC TC IN 1.1 32c:
~
todaNSAS DCWE9 C LIGHT CCMPaNY CENTRAL LOUISIANA ELECTRIC CCMPANY, I '. C.
THE :VPICE DISTRICT ELECTRIC CCMPfNY GULF Stir:S UTILITIES COMPANY KANS2? GAS C TLECTRIC C0YPANY LO'J I S lina PO W ER C LIGHT CC.VPaNY "ISSISSlool DCWER C LIGHT CC9PdNY NE4 ORLE aNS PLSL IC SERV ICE INC.
SCH. ES PAGE 2 9
CKLAHCMa GAS AND ELECTRIC C59PANY PUBLIC SERVICE COMPiNY 0: C K L A FC '4 a 2CdTHWESTERN ELECTRIC POWEP CCYPANY 1.3 IT IS CUPTHER G ECOGN I ZED TF AT TFE ELSVSN CrvoANIES LISTED ABCVE ARE oiRTIES TO A COORDINATICN AGREEMENT CATiC 3.: 82912Y 10, 1964.
A__
___M_:og:.Ngy_2_;_;yl_r_:
c
_c _ r._T
- n N _ _2___
2.1 THE INTENT OF THIS SCHEDULE IS TC FOCVICE FCD cv5RGENCY A SSI ST ANC E S ETWEEN THE SYSTEMS OF THE PARTIES HEQETC UNDE? THE TERMS AND CONDITIONS SET FOPTH HE?EIN ABD IN THE I NT ER CONN ECT ICN AGREEMENT.
2.2
- '4 5 R G E N C Y SERVICE FOR THE PU PCSE C: THIS SCHECULE SFALL FEAN:
(A)
E9ERGY SU? PLIED BY CNE PARTY (SELLE4) TO TH: CTFER PARTY (EUYER) DUR ING ANY PERICD JP PECIODS WHEN EVERGENCY CCNCITIONS BSYCNC THE CCNTQCL J~
a PAR'Y EXIST TEMPORARILY ON THE SYSTEM OF SUCH P A9 TY SC THAT GENERATICN AND TFANSMISSION FACILIT!is CC SUCH SYSTEM, INCLUCING PURCHSSES (NOT INCLUDING SUCH EVE:GENCY SE:vICE), AP E INADECUAT TC CSR2Y THE D APTY' S SYSTEV LCAD RESPCNSIBILITY ANC 0? OV ID E NECESSARY GPERiTING 9ESERVES, ANC (B)
ENE;GY SUPPLIEC BY CNE PARTY TC TLE CTHEP P3RTY IN CROE2 FCP SUCH CTHER PARTY TC :UPNISH ENERGY TC A S Y S T E '4 GR SYSTEv5 NCT A OSRTY TO THE INT:RCCNNECTION AGREEv:NT UNCER CCNCI ICNS C:
EMERGENCY AS SET ~0?TH IN (A) 13CVE ON SUCH SYSTE" 0: SYSTEVS NOT A PARTY TC THE I N T E R C O N.N :C'ICN AG:EEvENT.
SCH. ES PaGE 3 2.3 WHEN CNE PARTY DESIRING EME0GENCY SERVICE, AS CE:INEC IN PARAGPaPH 2.2 ABCVE, WFICH THE CTHEP PARTY IS IN a POSITI:N TC FUPNISH, PECUESTS EMEQGENCY SERVICE FRCM SUCH CTHER PARTY AND AN AGREEMENT IS REACHED AS TO THE avCUNT CF EVERGENCY SE3VICE WHICH CAN BE DELIVERED BY THE SELLER INC THE FRCBaBLE DURATION OF SUCH CELIVERY; THEN THE SELLER ShaLL PURNISH THE REQUESTEC EMERGENCY SERVICE FFOM ANY aVAILA9LE SOURCE (INCLUCING PUFCHASES : RIM A SYSTEM GP SYSTENS NOT A PARTY TC ThIS INTERCONNECTICN AGREEMcNT
=00 F ESaL E TO THE BUYER, IF REQUESTEC BY THC BUY EC )
'C THE EXTENT THAT, IN THE JUDGv3NT CF THE S EL L E R, TFE GENERATICN 00 PURCHASE AND THE CELIVEPY OF SUCH ENERGENCY SE0VICE LILL NCT IvPAI4 CR JEOP ARDIZ E SERVICE IN THE SELLER'S SYSTEM CF ITS COU."ITMENTS TO OTHERS.
SECI1E3_2_:_CCS01IlrN< Pno c5021f3 3.1 IT IS THE INTENT OF SCTH PAPTIES HERETC THAT EITHED 3AQTY IS ENTITLED TO CALL ;CR EVERGENCY SERVIC: ANC 'HE CTHEP Pi: Y SHALL 85 CBLIGaTED TG SUPDLY SUCH EVERGENCY SERVICE TO THE uaxlvuM EXTENT PFACTICa9LE AS SET CCRTH IN THIS SCHECULE.
3.2 aT THE TIME OF ANY REQUEST :CR EVERGENCY SERVICE THE BUYEP SHALL GIV: TH: SELLEP INFOR9aTICN CCNCEFNING TH? NATURE AN EXTENT OF THC CCNCITICNS CAUSING THE EMERGEACY.
SECIIO5_i_:_E1Ii_abC_i1LL15S 4.1 EVERGENCY SE:VICE SUDPLIE0 MEREUN0i; S li A L L 35 SILLEC ANC PSIC :OR UNJER 'WE HIGFE: aFOUNT CALCULATEC UNDER (A) 01 (R)
BELCW, CP UNDER (C) I? APPLICABLE:
(a) 17.5 MILLS PE: K I LO'a AT T-FCU R ; OC
f SCH. ES PAGE 4 UEL FOR GENEaATING SUCH ENE9GY, (B)
SELLCP'S CCST OC C INCLUDING STAPT-UP COSTS, IF ANY, PLUS 5 MILLS PEQ KILCWATT-HOUR; OR (C) 1104 CF SELLER' S CO STS TO PURCHASE SUCH ENE;GY FRCM ANOTHER SUPPLIER, ANC PRCVIDEC THC 107 AMCUNT SFALL NOT EXCEED 2 MILLS PE KILCWATT-HOUR.
IN LIEU 0: PAY"ENT UNCEP (A), (P), CR (C) AFOVE, THE SELLER MAY, AT ITS SCLE OPTICN, PECUIFE THE SUYE4 TO RETUoN h! THIN THIcTY CAYS AN SMOUNT CF ENERGY ECUIVfLENT TO THAT WHICH WAS SUPPLIED EY THE SELLER ;OR EMERGENCY S ERVIC E.
IN THIS EVENT, THE BUYER SHALL PAY THE SELLER 5 MILLS PER KILCWATT-HCUR IN ACDITION TO RETURNING THE ENERGY.
THE SELLER SHALL PROVIDE A SCHECULE.:C7 THE ENERGY TO EE RETURNED, AT A TIME ANC 4 ATE OF DELIVCRY AND UNCE LCiC CONDITIONS SIMILAR TC THCSE UNDE; WHICH THE ENERGY WAS ORIGIN *LLY SUPPLICD EY THE SELLER TO THE 9UY: 4 IN TuS EV:NT SUCH lERGY IS FEING SUPPLIED TO CR FRC.4 A THIRC PA: TY, TFE EUYE7 SHALL PAY THE INTEPVENING PARTY TWC VILLS FCR E.
H KILO 4ATT-HCUR SC SUPDLIED THQOUGH ITS SYSTEM FROM THE CRIGINAL SELLEk TO THE PUYER.
4.2 "SEL LE;' S C CST OF :UEL" AS STATED IN SECTICN 4.l(B)
ABOVE SHALL 95 THE SELLER'S ESTIMATED CURRENT CCST CC REPlarING SUCH UCL CON S'JO EC TC SUPPLY THE EVERGENCY SERVICE; POVI":0, THtT IF SUCH PUEL CCNSUMED TC SUPoLY EVERGENCY SE VICC IS REPLACED WITHIN SIXTY CAYS ARCM THE CATE JF SUCH EMERGENCY SERVIC E TR ANS ACTICN, AND IF SUCH CCST IS VCOC 7 FAN 11.02 OEF YILLICN 3TU G??ATER OR LESS 'HAN SUCH EST!MAfi CCST, THEN A C O R C. E C T I O N S H '. L L HE MAC: IN TFE S EL L IB'G PR I CE TC E: LECT SUCH CIFFEGENCE.
I: FUEL CCNSUMEC TC SUPPLY E'd E A GE NCY SE VICE IS NOT RE3 LACED WITHIN SIXTY CAYS, TFE ESTI'>ATEC CCST S'. A L L 92 USEC Cr0 R ILL ING PURPOS ES.
SCH. ES PAGE 5 4.3 9ILLING ANC PAYPENT SHALL SE AS OPCVICFC PCP IN $RTICLE V CF THE INTE7CCNNECT!CN AGREEMENT.
S_c e t _r Je _5_ _ _ _u _s _T.;_o r _N r.
1 5.1 THE AMCUNTS OF ENERGY SUPPLIED ANC RECEIVEC FEREUNDED SHaLL BE CET EQ VINED FACM FEASUREMENTS TAKEN AT CA ACJUSTEC TO THE PCINT Jo I N T ER C CN N EC T I CS' AS AGREED TC BY TFE PARTIES HERETO.
TFE TYPES OF METERING ECUIPPENT, THE DET AILS CF VETERING ARRANGEMENT 3 AND THE REC 19CS TO BE KEPT SHALL B E CET ER V INEC SY TFE QEP ESENTATIVES C: THE DAPTIES HERETO.
EXECUTED AS OF THE DATE CIRST HEREINA VE "ENTICNED.
GULF STATES LTILITIES CnV?aNY AY_________________________
TITLE ______________________
ATTEST:
BY_
TITLE _________________
PISSISSfoPI DCWER r.
LIGHT COVP ANY BY__
TITLE ______________________
ATTEST:
BY____________________
TITLE ________________
e
SCH. SP PAGE 1 SERVICE SCHEDULE SP SURPLUS POWER SERVICE GULF STATES UTILITIES CCFPANY MISSISSIPPI POWER C LIGHT CCMPANY 0.1 THIS SERVICE SCHEDULE SP IS AGREEC 70 CN 1978, TO EECOME EFFECTIVE UNDcR, AND AS A P S: T CF, 'HE POWER 1978, BETWEEN GULF IN TE FCCNN ECT ICN AGREEMENT CATED _______,_
STATES UTILITIES AND P ISS I SS I PPI PCWE9 C LIGHT COMPANY.
THE TER.v OF THIS SERVI CE SCHECULE SHALL RUN CCNCURRENTLY WITH THE INTE PCCNN ECT ION AGREEMENT, PR OVI D EC ThAT EITHER DARTY CAN TERMINATE THIS SCHEDULE BY WRITTEN NCTICE GIVEN TG THE OTH(R PARTY NOT LESS TH4N FCUR (4) YEARS IN ACV ANCE OF THE TERM INATICN CATE.
SECIICU_1_:_EUEECSE 1.1 THE PU: POSE OF THIS SERVICE SCHEDULE SP IS TO DRJVICE FCR THE SUPPLY CF SURPLUS POWER SERVICE EETWEEN THE DAPTIES HEPETO ANC TO ESTABLISH THE TEF MS ANC CCNDITICNS APPLIC ABLE THE:ETO.
SUPDLUS POWER SHALL MEAN THAT CAPACITY AVAILA6LE OVER AND AFOVE THE SELLER'S SYSTEM RECUIREMENTS, INCLUCING :ESERVES, ANC IN NO SENSE IMPLIES THE INSTALLATICN JF C AP AC ITY FOR THE ACCCUNT OF THE EUYER.
SECIIC3_? - S L EEL Y_C E_ SL'2 E L U S _20 h i E_S E E22CE 2.1 kHENEVER EITHER PiRTY TO TFIS FOWE: INTEaCCNNECTION AGREEMENT (HEREINAFTER REF ERR EC TC A S EUYEP) CES !R E S TO OUREHLSE SURPLUS PCWE0 SERVICE, HE vaY 00 SO 8Y NOTIPYING THE CTHER PAS Y (HEREINacTER REFC; RED T0 as SELLER) IN WRITING STATING THE LMCUNT OF SU: PLUS ?CNER SECVICE PECUIRED, THE INTE: VAL C: TIME DURING WHICH SUCH WILL 95 RECUIPED, AND AN ESTIVATE CF THE ENERGY
SCH. SP P AGE 2 7ECUIRivEAT TO ACCOMPANY THE PCWER SALE.
THE SUPPLY OF SLCH SURPLUS PCWIP SCRVICE SHALL 3E LIMITEC TC TFE AV S I L AB IL ITY OF THIS CAPACITY CN THE SELLER'S SYSTEM GVER TFE SELLEC'S :IRM LCAC REQUIDEMENT.
2.2 THE SELLER SHALL THEN CECIDE WFETHER ALL CR ANY PART Cc SUCH SURPLUS PCWER SERVICE CAN BE SUPPL IEC ANC SHALL CECICE AND NOTIFY THE SUYER OC THE AMCUNT OF SUCH SURPLUS ROWEo SERVICE AND THE AuCUNT OF ACCOMPANYING ENEFGY WHICH SHALL BE SUPPLIED OR CECMED TO HAVE CEEN SUPPLIEC EY THE SELLER.
TWE SELLER SHALL PENDEP RILLS EACH MONTF FOR THE SURPLUS PCWER SERVICE ANC THE ACCOMPANYING ENERGY SUPPLIED CR DECMED TO HAVE ECEN SUPPLIED DURING THE PRECECING PCNTH.
2.3 NEITHER PARTY SHALL PE OPLIGATEC TC SUPDLY SURPLUS PCWER SE:VICE UNLESS AND UNTIL SUCH PARTY SFALL HAVE AGREFC TO CO SC IN ACCCRC ANCE WITF THIS SCHEDULE IN A bRITTEN AGREEMENT EX ECUTED P Y a CULY AU THC F.I Z ED OF F IC EP OF SUCH PARTY.
2.4 SURPLUS POWER SERVICE SO CONTRACTEC S H AL L BE PURCHASED FOR A MINIMUM PERIOD CF NOT LESS THAN FIVE (5) PONTFS, ANC MAY BE FOR SUCH LCNGER PERICC AS IS VUTUALLY AGREEABLE.
TFE BEGINN!NG DATE AND THE LENGTH OF THE PERIOD SHALL BE AGREE 0 UCCN IN WRIT!NG AT LEAST SIX (6) VCNTFS PP.IOR TO TFE CCYMENCEVENT CF THE PERICD.
THE PAC *IES INVCLVED IN THIS S ALE SHALL FaVE THE CPT!CN TC WAIVE THIS SIX (6) YGNTH RFCUIREMENT BY vuTUAL AGPEEMENT.
2.5 THE USE OF PChEQ ANC EN:RGY, UNCER,THIS SE VICE SCHECULE, WILL B E SCFECULED 9Y THE BUYER 16 HCURS IN ADVANCE CF' THE INITIAL DELIVERY E eCH CAY.
WEEKLY SCHEDULE S M AY NOT EE AL*ECEC 9Y L ESS THaN 16 HCURS' NCTICE, UNLESS AGREEC TO SY THE
$ELLE:.
2.6 THE PINSL SCHECULE ;CR ANY CALENCAR OaY SHALL OR CV ICE
- CR THi :ULL U$c 0F A CONSTANT AMCUNT OC C A P ACI TY :C? i SINGL
SCn. SD oaGE 3 ei#
CONTINOUS PEPIJD OF ATLEAST[A)HOURSANCNCT MCPE THaN FCURTEE" (14) CCNS ECUTIVE HOURS WITHIN SUCH CAY.
SCHECULES IN EXCESS CF FOURTEEN (14) CCNSECUTIVE HOURS USE MAY BE MACE AT THE SOLE OPTION OF THE SELLER.
3;cT1;3_2_- peRrR c: <=TTicucyT 3.1 FOR SU PLUS PCWER SCRVICE MACE AVoILARLE FPCM CNE PARTY TO THE OTHER, THE BUYER SHALL pay TC THE SELL : :aCH 90 NTH AN AMCUNT FOR CAPACITY AND ENERGY CCVDUTEC CN THE EaSIS C: THE APPLIC AEL E R ATE SCHEDULE ATTACHED H: QFTC.
3.2 NOTWITHSTANDING ANYTHING TC THE CCNTRARY IN THE AGREEMENT, IN THIS SERVICE SCHEDULE, CR IN THE RATE SCu ?D UL E S TO THIS SE;VICE SCHEDULE, IT 15 AG7EED THAT NEITHER PACTY IS C3 LIGA TED TO INT;RRUPT ITS PIRM CUSTC9ERS IN CRCER TO MAINTAIN a SCHECULED SALE 0: SURFLUS POWER SERVICE.
IN THE EVENT OF UNAVAILABILITY, INTER UPTICN OR CLRTAILMENT OF SE VIC E F(i A PERICC Cc uCRE THAN THIRTY (30) C CNS ?C UT IV E MINUTES IN ANY SCHEDULED FCUR, SECAUSE C A ;UEL SFCFTAGE Co CUPTAIL'4ENT OP aNY CTHER RESSCN (SUrH UNAValla91LITY, INTE C RUPT ION, CF CURTAILMENT FOR WH a T EV ER REaSCN BEING HEREINacTER PEF 99 RED TC AS "INTERRUPTICN"), dNY CAPACITY CHaCGE FOR THE CURRENT PILLING YCNTH PCOVICEC TC BE PAID UNCER THIS SEPVICE SCHECULE SHALL BE REDUCED TO REFL:C7 SUCH INTERRUPTION.
THE AMCUNT JF THE RECUCT ION FOR a'TCTal INTERRUPTION SHALL 9F CN THE oSSIS 0: A CATIC, THE NUMEciTCR C: %HICH SHALL EE THE CUCATION Cc SUCH TOTAL INTEORUPTION SNC TH: DENCVINATC4 0A WH IC H SHALL BE THE ACTUAL NUv?EP OF SCHECULEC FOURS DURING TW: 91LLIPG MONTH IN CUESTICN, SUT NOT LESS THAN 360 HCLRS.
aHEPE a PCRTICN OF THE C APaC ITY IS INTE?PUPT:0, SDodCPRIa!E P90FiTICN SHALL BE 9 ACE G IVING DUE WE IGHT TO THE CAPACITY ACTUaLLY DELIVEREC.
SCH. SP P3GE 4 3.3 THE FIPST MONTHLY EILL SHALL BE RENDERED IN THE MONTF FOLLOWING THE FIRST MONTH THaT LIMITED SURPLUS POWER SE: VICE SHALL HAVE SEEN CONTRACTED FOR.
E X EC U TE D AS OF THE DATE FIRST HEREINASCVE MENTICNEC.
GULF STATES LTILITIES CCSPANY RY________________
TITLE __________,___________
ATTEST:
BY TITLE==
6ISSISSIFPI POWER S LIGHT COMPANY BY__________________
TITLE ATTEST:
BY____________________
TITLE ____
e
(
oATE SCF. GSP TO SEPVICE SCH. SP DSGE 1 RATE SCHEDULE GSP TC SERVICE SCPECULE SP
___ _ _ _ _ _ _ ', 1978 1.
THI S P AT E SCFEDULE SHALL APPLY TO SUPDLY BY GULF STATES UTILITIES COMPANY OF SURPLUS PCWER SERVICE TO VISSISSIPPI PCWER C LIGHT C CFPANY, UNCER ANC PURSUANT TO THE POW E R INTERCCNNECTION A GR E E.9 ENT 9ETWEEN SUCH PARTIES AND SERVICE SCHE 0VLc SP THE7ETO.
2.
fsEACIIX_idaE552 11.25 PER KW PER VCNTH FCR EACF KW OF CA D AC I TY PURCHASE 0 PURSUANT TO SERVICE SCHEDULE SP.
3.
53EEGY_EdacG52 ENEOGY CHERCE DER VCNTH SHLLL BE TFE INCREMENTil COSSIL CUEL CCST PER KWH PLUS 3.0 vlLLS PER Kkd.
RATE SCH. VSP TO SERVICE SOH. SP
? AGE 1 FATE SCFECULE MSP TO SERVIC E SCFEDULE SP
, 1978 1.
THIS 9 aT E SCFEDULE SHALL APPLY TG SUoPLY BY YISSISSIPPI PodER C LIGHT CCMPAN OF SURPLUS PCWEA SERVICE TC CULF STATES UTILITIES COMPANY, UNDER ANC PURSUANT TO THE POWER INTERCCNNECTION AGREEVENT SETWEEN SUCH PARTIES ANC SERVICE SCHEDULE SP THERETO.
2.
CLEALLIX_ WAEE51
=_
DEP Kh P2P uCNTH FCR EACH KW OF CAPACITY PURCH aS EC PUR S'J At!T TC SERVICE SCHECULE SP.
3.
EU3ES%_fdllS32 ENERGY CHA9GF DER 90 NTH SHALL EE TFE INCREVENTal FOSSIL FUEL CCST PER KWH PLUS _____
MILLS PER KWH.
SCH. PE PaGE 1 SERVICE SCHEDULE CE REPLACEMENT SERVICE 0.1 THIS SCHEDULE RE IS AGPEED 70 ON
_, 1978, TO BE EFFECTIVE UNCER, AND AS A PART OF, THAT INTERCChNECTION AGOEEMENT BETWEN GSU AND MPL, (H E R E I N A FT ER RE: ERRED TO A S "P AR TY" OR "PAFTIES"), DATED 1973, (FEPEINAFTER REFECQEC TO AS "INTECCONNECTION AGREEPENT").
THE TERM C: THIS SERVICE SCHECULE SHALL ;UN CJNCURFENTLY WITF THE INTERCCNNECTION SGREEv;NT, PROVICEC THAT EITHER PARTY CAN TERMINATE THIS SCHEDULE 4Y WAITTEN NOTICE GIVEN TO THE CTHEP PSRTY NCT LESS ThaN FGUR (4) YEARS !N ACVANCE 05 THE TEov1NATICN DATE.
SECIlOS_1_ _E313113G_133SUSE253IS 1.1 IT IS cFCCGNIZEC BY THE PAPTIES TFAT TFE ELEVEN COMPANIES LISTED IN THIS SECTICN HAVE VARICUS AGREEvENTS AND CCNTRACTUAL ARRANGEVENTS OF VARICUS CATES AvCNG ANC eETWEEN VARICUS OhES GF THE ELEVEN COMPANIES, IACLUCING THE INTE RC CNN ECT I ON AG:EEMENT, PR CVIDING A PChG CTHE R THINGS C0 PURCHASE, SALE, AND EXCHANGE CF ELECTRIC POWER AND ENERGY AS WELL AS FC: ciRTICIDATION IN THE PLANNING, CCNSTPUCTION, FINANCING, OPEPATICN AND M AINTEN AhCE OF AN EXTRS-HIGH VOLTAGE LECTRIC TRANSvlSS!ON SYSTEv.
1.2 THE ELEVEN CGNPANIES PEFERFED TC IN 1.1 ARE:
A34 ANSA $ POWER & LIGHT COMPANY CENTCAL LOUIS!ANA ELECTRIC CCvFANY, INC.
THE ivPICE DISTPICT ELECTRIC CCMCANY GULF STATES UTILITIES CCMFANY KANSAS GAS C EL ECTP IC CCMP ANY L C'J I S I A N A PCWER & LIGHT CCYFANY VISSISSIPPI PCWER & LIGHT CCMFANY NEW JALEANS PLELIC SERVICE INC.
SCH. RE PAGE 2 CKLAHCVA GAS AND ELECTRIC COMPANY PUBLIC SE VICE CCFF ANY OF CKLtHOMA SOUTHWESTERN ELECTRIC PCWEP COMPANY 1.3 IT I S FURTHER QECCGNIZED THAT THE ELEVEN CCMDANIES LISTED ABCVE ARE PARTIES TO A COORDINATION AGREEMENT CATED FEERUARY 10, 1964.
SECIl0E_2_:_CEEIE1IIC5_CE_EIELaCEEEEI EEEEG1 2.1 PEPLACEMENT ENERGY 45 USED FEPEIN SHALL MEaN ELECTRIC ENERGY WHICH GNE PARTY (BUYER)DESIFES TO PURCHASE CRCM THE OTHER PARTY (SELLER) FOR REASONS INCLUDING, BUT NGT LIMITED TO, DEFEFRING USE OF FUEL CR WATER, TRaNSFISSICN SYSTEM GPERATIONS, SCHEDULED SHCRT CUT AGES OF GENERATING UNITS, ENVIRCNPCNTAL CONDITIONS, SELLING REFLACEMENT E *l ER GY TC ANCTHEP PARTY, OR CfHED REASONS OC SIMILAR NATURE.
SECIICU_2_ _CC3D1I1Ch3_CE_EUErwa5E ANC_1 ALE 3.1 IT IS UNDERSTCOD AND AGREED THAT THE BUYER IS ENTITLED TO PU RC H A S E C EPla C E.9 ENT ENERGY ONLY TO THE EXTENT THAT SUCH BUYER HAS ALTERNATE CEPENDABLE CAPACITY, INCLUDING PUPCHASEC Ca pac ITY,
THAT COULC OTHERWISE CE USED, PROVIDED, H3 WEVER, THAT IF BUYER DESIRES TC DURCHASE REPLACEMCNT ENERGY TC ENABLE SAID euYeR Te REPCVE a LNIT FP CM S ER VIC E FOR PURPOSE CF PAINTENANC OR INSPECTICA, CN CTHER THAN A F0acEC CUTAGE BASIS, SUCH UNIT MAY CE INCLUCED IN SilC ALTERNATE DEPENDABLE GENE i ING CA?aCITY.
3.2 IT IS FURTHER UNCERSTCGD ANC SGREED TFaT IF TH: 3UYEF IS BUYING REPLACEMENT EN E R GY :CR TWE PURPCSE OF SELLING SUCH R E Pl a C E'4 E N T ENECGY TO A SYSTEu CR SYSTEy$ NCT A PARTY T1 THE INTERCCNNECTION AGEEEYENT, THAT SUCH ULTIMATE BUYER SHALL BE THE PARTY REQUIRED TO HAVE THE ALTERNATE CECENCABLE CiparITY SS SET FORTH 10 3.1 ABCVE.
SCH. RE PAGE 3 3.3 bHEN THE BUYER DESIRES TC PURCHASE REPLACEMENT ENERGY WHICH THE SELLER IS IN A POSITION TO SELL AND CELIVER, THE BUYEP SHALL CCNTACT THE SELLER.
WHEN AN AGREEPENT IS REACHEC AS TO THE APOUNT OF SUCH REPLACEMENT ENEPGY WHICH THE BUYER DESIRES TO PURCHASE AND WHICH CAN BE DELIVEREC EY THE SELLER, THE SELLING PRICE OF SUCH REPLACEMENT ENERGY AS SET FORTH IN SECTION 4.1, TH:
SCHEDULE FOR DELIVEQY CP SUCH ENERGY, ANY NECESSARY NOTICE R EQUIR EMENT FOR DISCCNTINUANCE OF SUCH CEL IVE RY, AND AN Y CTHER PERTINENT : ACTORS, THEN THE SELLER SHALL CUCNISH AT TH AGREEC SELLING PQICF TFE REQUESTED REPLACEMENT ENERGY FROM ANY AVAILABLE SOURCE I T CHCOSES, INCLUDING PUR CH AS ES FRCM A SYSTEv CF SYSTEMS NOT A PA:TY TO THIS INTERCONNECTICN AGREEvENT FCR RESALE TO TFE BUYER.
SECIIGU 4 - 017: 350_SILLIUG 4.1 REPLACEMENT ENEPGY SUPPLIEC HEREUNCEP SHALL SE SILLEE ANC PAID FO R AT THE FOLLCWING RATE:
ENERGY GENERATED BY SELLER; DUF ING CN PEAK HOURS THE ANTICIPATED INCREVENTAL PRODUCTION CCST PEQ KWH OF SELLEP CURING THE T;ANSACTION PLUS 3.0 MILLS PER KhH.
DURING CF: PEAK HOUCS THE ANTICIPATED INCREVENTAL PRCDUCTION CCST PEG KWH OF SELLEP DUAING THE TOANSACTION PLUS 2.0 MILLS PER KWH; ENECGY DURCHAS:C SY SELLED FOR SALE HEREUNCE ;
e SCH. RE PAGE 4 ANTICIP ATED PUPCHASE PRIC E PEP KWH PLUS 104, PROVIDED THAT TFE 10% AMOUNT TO BE ADDED MAY EQUAL RUT SHALL NOT EXCEED 2.0 FILLS PER KWH.
4.2 FOR THE PURPCSE OF THIS SCHEDULE QE, THE FCLLOWING DEFINITIONS SHALL BE APPLICABLE:
(A)
"CFF PEAK" SHALL BE THAT PEQ, ICD OF TIME BETWEEN 2201 HOUQS CF ONE DAY ANC 0600 HOUPS CF T.HE FCLLOWING DAY, ANC ALL CAY SUNDAYS ANC HOLICAYS AS LISTED IN SECTION 4.5 GELCW.
(B)
"ON PEAK" SHALL BE THAT PERIOD CF TIME EETWEEN 0601 HOURS AND 2200 HOURS 0; THE S3ME CAY, E XC E P T SUNCAYS AND HOLIDAYS AS LISTEC IN SECTICN 4.5 3ELOW.
4.3 BILLING.OR ENEPGY SHALL PE SASED CN THE UUTUALLY AGREEC DELIVERY SCHEDULE.
4.4 EILLING AND PAYMENT SHALL EE AS PRCVIDED IN ARTICLE V 0:
THE INTERCONNECTION AGREEMENT.
4.5 FOR THE PURPOSE OF THIS SCHECULE, "HCLIDoYS" SHALL SE:
NEW YEAR'S CAY v5MORIAL DAY IND E P EN C E NC E CAY LA800 DAY THANKSGIVING CAY CHRISTMAS DAY
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SCH. RE DaGE 5 SELUDu_5_=_2EIEEl%
S.1 THE AMOUNTS OF ENERGY SUPPLIED ANC RECEIVEC HEREUNDER SHALL BE CETERMINED FRCM MEASUREMENTS TAKEN AT CR ACJUSTEC TO THE POINT OF INT ERCPNN ECT I CN AS AGREED TC BY TFE PARTIES HERETO.
THE TYPES CF METERING EQUIP 4ENT, THE DETAILS CF METERING ARRANGEMENTS AND THE RECORDS TO BE KEPT SHALL BE CETERMINED BY TFE REPRESENTATIVES 03 THE PARTIES HERETO.
EXECUTED iS CF THE DATE FIRST HEREINAdCVE MENTICNEC.
GULF STATES LT IL IT IES CC9PANY SY TITLE ______________________
ATTEST:
BY____________________
TITLE ____________
FISSISSIPPI DOWER &
LIGHT COMPANY BY_______
TITLF ATTEST:
BY_
TITLE ___________.
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',. c s: E : L,. 23 c-m H SCEDUIE A PISERVE CAPACIII e
IAZCO CITY, HSSISSIPPI A:D MISSISSIPPI PCWER & LIG*iT CCMPAITI r
Section I - Purruse It is the purpose of this schedule to provide a basis fcr utili -
ing the capacity in the systems of each party for supplyir.g Reserie Capacity to the other.
Section II - Character of Service and Meterirg Service shall be three ph1se sixtv. cv. eles > and shall be delivered s
at ncrinal 115,000 volts. Ccapany will meter on the secondary side of City's substation transforcer, and the energy billed shall be the iceh registered at such secondary voltage.
Section III - Reserte Caracity Either parts shall be entitled to call upon the other for such pcwer ard energy, up to 5,000 DI, it may deer necessary to meet its requi_,3-ments to supply its can custc ers. The party receiving such request shall supply the power and energy so requested up to its ability to do so.
Upon 120 days' notice City nay increase the Reserve Capacity to lO,CCO DI and thereafter either mrty na-be entitled to call upon the other for 10 > 000 '01.
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Section IV - !!et Monthly 3.t e r
Base Price 12 mills per beh Ad dustment s Fuel:
Plus or minus 0.00144 cer beh for each whcle tenth of one cent (0.14) by which the weighted average cost of providing
Section IV - ?!et Monthly Eate Dase Price 5 mills per keh Adjustments Fuel:
Plus or minus 0.0014? per kah for each whole tenth of one cent (0.lf) by which the weighted average cost of providirs the fuel at fuel burnirg stations for the prcxiuction of the energy that is delivered exceeds or is less than twenty-five cents (25.02) per millien btu. The adjustment to be billed in any month will be based on such cests of providing fuel and on the energy productions for the twelve months enied with the second preceding month.
Taxes:
To charges due unier this schedule there shall be added any directly allocable tax, in rst, or assesstent imposed or levied by any governmental authority, which is assessed or levied against the sellirg party or directly affects such part !s cost of operaticn and which it is legally obligated to pay on the basis of meters, custeners, or rates of, or revenue frca electric pcwer and energy or service sold, or on the volume of the energy generated.
transported, purchased for sale, or schi, or on any other basis where direct allocation is possible.
Section V - Term The term of this Schedule shall begin en the effective date of the Interconnection Agreement and shall run with the tem of the Agreement unless cancelled by mutual consent. -
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I SCEDUE B OFF-FEAK E EFSY MISSISSIPPI FCKER & LIGHT CCMFAITf AI:D YAZOO CITY, MISSISSIFFI Section I - Purroec It is the purpose of this schedule to provide a basis fer the supply-ing of energy to Yacco City durire off-peak periods.
Section II - Character of Service and Meterirg Service shall be three phase, sixty cycles, and shall be delivered at noninal 115,C00 volts. Ccap1ny will meter on the secorrian side of City.ts substation transfcIner, and the energy billed shall be the kah registered at such secondary voltage.
Section III - Availability Between October 1 of each year and the follcwing May 1 during the tern hereof, Company will frca time to time at its discretion advise City that off-peak energy will be available. Such proffers of off-peak energy will be nade at least 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> in advance ard City will promptly advise Compny of the extent to which it wishes to schedule taking such energy.
Off-peak energy may be taken at a rate up to the currently effective reserve capacity (more may be supplied :.f in Companyt s judgment the capacity is available at the time).
The periods of 48 consecutive hours or more durire which Cenpany will offer off-peak energy in amounts equal to the Reserve Capacity shall equal or exceed 1,CCC hours between Cetober 1 ard the followirs May 1 during the tern of this schedule.
the fuel at fuel burning stations for the prcduction of the energy that is delivered exceeds or is less than twenty-five cents (25.0;)
per mil 14 on btu. The adjustment to be billed in any conth will be based on such costs of providirg fuel and on the energy productions for the twelve months ended with the second preceding month.
Start Uo: Should any request by Ccupany cause City to, start up a generating unit not othe:vice required, City may add to its billire an amount equal to its added expense occasioned by such start up.
Taxes:
To charges due urxier this schedule there shall be added any directly allocable ta c, impost, or assessment imposed or levied by any governmental authority, which is assessed or levied against the selling party or directly affects such party s cost of operation and which it is legally obligated to pay on the basis of meters, custeners, or rates of, or revenue frca electric pcwer a:vi energy or service sold, or on the volume of the energy generated, transported, purchased for sale, or sold, or on any other basis where direct allocation is possible.
Section V - Tern The ters of this Schedule shall oegin on the effective date of the Interconnection Agreement and shall run with the ter= of the Agree =ent unless cancelled by cutual consent.
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,,as IIITERCCI!'IECTICI! AGRED'E'IT BY ARD EEEEEIT CITY OF CLARKSDALE AID MISSISSIPPI P7 DER & LIGhl CCIEld;Y
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[C-n 0,1 This Agrec=ent made this /:3 day of 4/,
a.
1976
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by and between the CITY CF CLARUDALE, MISSISSIPPI (hereindfter ened
" City") and ICSSISSIPPI PCWER & LIGHT CCMP/JIY (hereinafter called "Cc=pany"),
WITIESSETH:
0.2 WIEREAS, the Company 'and City each own and operate an electric system supplying electric service to the public; and 0.3 UERE AS, Company is intereennected directly and/or indirectly and ccordinates its power and enery supplies with its corporate affiliates -
Arkansas Power & Light Conpany, Arkansas-Missouri Power Ccapany, Louisiana Power & Light Conpany, and lieu Orleans Nblic Service, Inc., the electrical facilities of said cc=panies together with those of Cc=pany being herein-after referred to compositely as the " Middle South Systen"; and 0.4.
UEREAS, the Middle South System is interconnected and operates in parallel with many other utilities within and without the states of Mississippi, Arkansas, Lo isiana and 1'.icsouri; and 0.5 WEREAS, the public interest requires that each party shall make all provisions necessary to reasonably assure the continuous availability of electricity in sufficient a=mmt to supply all nor:al requirements of custc=crs; and
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0.6 WHEREAS, City and the Company desire to enter into a ecmprehensive interconnection agreement for the establishment of an interconnection and securin5 of coordination between the City and Company systems, as aforesaid in paragraph O.k; O.7 UOW, THEREFORE in consideration of the above premises and of the 3
mutual benefits from the covenants herein set forth, the parties hereto do hereby agrec as follows:
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1.1 This Agreement shall become effective on the date of interconnection of the systems as provided in Article II hereof and shall continue until termination by either party by written notice given not less than 5 years in advance of the designated date of termination, provided that no such termination may be effective prior to December 1,19S6.
It is contemplated that the systems of the parties will be inter-connected as provided in Article II hereof on or about December 1,1976 and both parties shall exercise due diligence to complete the required facilities by said date.
ARTICLE II II!TERCCI3!ECTICI!
2.1 Point of Interconnection The point of interconnection hereunder shall be at the terminals of City's 115,000 volt transmissicn line on Company's terminal structure at Company's Clarksdale substation as shown on the sketch marked Exhibit A attached hereto and made a part hereof.
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2.2 Facilities Fumished bv -Comaany Company shn provide, own and maintain two "C" towers and two "AX" to.wers, one of which shall serve as the terminal structure at the point of interconnection in Company's Clarksdale Substation as shown on the sketch marked Exhibit A attached hereto and made a part hereof.
Company chall own and maintain a 115 KV Oil Circuit Breaker and three air break dicconnect switches, together with other related appurtenant equipment.
Company will provide am:iliary DC and AC power supply for the operation of said oil circuit breaker.
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Company will inct'7', or cause to be instned, nececsary tele-metering facilities between the Clarksdale interconnection and Company's dispatchers.
Clarksdale chall thereafter pay Company monthly all expenses including fixed charges incidental to such telemetering and supervisory control.
2.3 Facilities Fenished by City City shall provide, own, operate and maintain a voltage regulating transformer of not less than 20,000 KVA capacity in the City's cubstation for the purpose of reducing the voltage delivered from the Corpany's 115 KV trancmission system.
City chall also provide, own, operate and maintain a 115 KV tieline between City's Substation and the point of interconnection in Company's Clarksdale subctation as heretofore deceribed.
City chall provide, own, operate and maintain all synchronizing equip:nont and instrumentation required for synchronicing and parallel operation of electric systems of the parties.
The equipment shrill be selected so as to =cet, as nearly as practicable, the Perfoncance Criteria of the North American Power Systems Interconnection Committee Operatire Manual.
City shall provide, own, operate and maintain all fuses, circuit breakers, isolation switches and other electrical apparatus necessary for adequate protection of City's electric system.
City's electrical facilities so installed shall be compatible with Company's protective equipment.
2.4 Meters and Location All energy delivered by either party to the other hereunder shall be measured by meters located in Company's Clarksdale Substation.
The meter equipment shall be capable of measuring demand on a 60-minute interval and connected to record kilowatts, reactive kilovolt amperes and kilowatt hours, r
The meters and associated metering facilities chall be owned by the Company and it shall be the Company's responsibility to maintain them in good operating condition.
Metering will be at 115,000 volts.
The metering equipr ent installed will compensate for transformer losses or in lieu thereof an allowance of 15 will be made in the measured quantities used for billing.
2.5 Interconnection with Other Systems I:othing contained in this contract shall restrict or lin$ t either party in making other interconnections or agreements therefor with other systems or in its own use of its own lines.
Clarksdale takes note that its interconnection and parallel opera-tion with a thi-l party having a power source while maintaining its inter-connection with the Company will result in power flows between the Company and the third party through Clarksdale's system and possibly affect the flow of power between Company and other parties through other paths.
III - SERVICE SCHEDULES 3.1 Service Schedules The power to be supplied by each party to the other hereunder, the terms and conditions of such supply and the charges to be paid therefor
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.shan be in accordance with arrangements frem time to time agreed upon between the parties.
Such arrangements shall be set up in the fom of Service Schedules, each of which, when signed by authorized officials of the parties hereto, shall become a part of this Agreenent for the tem hereof or for such shorter te=s a; may be provided in the Service Schedule.
The fonoving Service Schedules are agreed to initiaHy and are made a part hereof:
Service Schedule A Reserve Capacity Service Schedule B -
Unintentional Energy f
Service Schedule C -
Fim ' Capacity Service Schedule D -
Economy Energy Service shn17 be supplied and taken in accordance with the fore-Coing Scryice Schedules or such other c'ffective superseding Schedules as may be agreed upon by the parties and authorized by duly constituted ragulatory authority.
32 Service Schedules to nave Precedence In event that any provisions of this Agreement are in conflict with those of existing or subsequent service schedules, the provisions of the service schedule'shall be controlling.
IV - OPEPJNG CO'MTTEE 4.1 Appointnert of Oneratin.~ Bepresentatives Each party will appoint one representative to act for it in matters pertaining to interconnected operation hereunder and such additional representatives as it may choose to appoint to serve in his absence or with respect to various detailed operating arrangements hereunder.
Each party vill inform the other of such appointments as made or changed from time to 4
time.
The operating representative shall have no authority to modify cry of the provisions of this Agreement or of any Service Schedule hereunder, except as to those designated herein or in the respective service schedules as within the scope of their responsibility.
4.2 Temnorare Interchanr-e Arranr ements In cases where, from time to time, it :r.ay be to the advantage of the parties that power be interchanged or sold upon a basis not provided for in any Service Schedule then in effect and in circumst'ances such that t
arrangements must be made procptly in order to realize such advantage, or in c' aces of emergency or temporary and unusual operating conditions, temporary arrangements for individual trhnsactions may be made by the operating representatives within the limits of the authority delegated to thc=; provided, however, that such arrangements shal be confirmed in writing and that no commitment involved in any arrangement so nade at any time by the operating representatives shall extend for a longer period thca 30 days unless approved by authorized officers of both parties.
V - CONDITIOUS OF OPEPATION 51 Parn'lel Coeration It is intended that the electrical systers of the parties sh'll normally be operated in parallel;> however, either party ncy from time to time interrupt the parallel operation b.f, in its opinion, it is required for the satisfactory operation of its system.
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52 Reserve Recuirements This interconnection agreement is predicated on the assumption that each party vil] continue to provide reliable capability equal to its load plus adequate reserves.
Company plans and provides its reserves on
a pooled basis with other Middle South System Compsrnies and nust install or pay for capacity adequate to provide for its own load plus a pro rata part of the pooled reserves.
Under this Agrec=ent City will provide ~
dependable capacity to serve its own load plus reserves at least equal to the percentage of reserves maintained by the Middle South System; provided, however, that Clarksdale shall not be required to provide more capacity than 125 percent of its maximum clock hourly load in the twelve (12J months ended with the current month.
In event City elects not to construct or elects to defer construction of additional capacity it shall purchase from the Company or a third party sufficient capacity on an annual basis to bring its capacity at the time of its annual peak load up to the percentage maintained by the Company in conjunction with the other Middle South System companies.
Firm power p'.rchased shall be deducted frce the load in determining the reserve requirement.
In Hovember of each year the Operating Committee shall discuss load projections and reserve requirements for future years co that the necessary facilities to meet the requirements of both parties can be planned and provided in a tirely manner.
5.3 City Controls Power Flow The parties recognize that under the arrangements herein con-templated City will have sole control and deternination of the amounts of kilcuatts and reactive kilovcit arperes flowing over the interconnection at any given time. City will furnish tie line bias control equipment which will monitor the power and reactive flow at the point of interconnection and will automatically adjust the governors of one or more of its generators in order to naintain the power flow as near as rossible to agreed upon schedules between the Company and City.
City will also be
responsible for controlling the reactive flow by adjustment o_f its inter-connecting voltage regulator.
The equipment farnished by City for this purpose will consist of conventioncl tie line control equipment norny used for this purpose with the manufacturer as selected by City.
- Such equipment chc11 be selected, instn' led and maintained to meet, so far as is practicable, the Performance Criteria as set fbrth in the Ucrth Ancrican Power Systems Interconne lian Committee Operating Manual.
Tne equipment selected shall also be compatible with telemetering equipment used by Company.
5.4 Disturbances Insofar as practicable, Company and Citt sho protect, cperate, and naintain their respective systems so as to avoid or cinimice the likeli-e i(
hood of disturbances which might cause impaiment of service in the system of the other party.
The parties recognize their responsibility to their customers with respect to continuity of service and their responsibility to each other with respect to reliability of bult power supply facilities.
It is expressly understood that, for the purpose of maintaining system reliability and integrity, Company may install underfrequency relays on the interconnection contemplated herein.
5.5 Reactive Current I!either party shall be required to supply reactive current to the other, except in accordance with arrangements between the respective load dispatchers.
Ilomally a party receiving power shall simultaneous 4 cupply reactive current to the party supplying power to the extent necessary to make practicabic the transfer of the a ount of power scheduled.
- However, f-the arrangements may provide for a party supplying power to simultaneously supply reactive current to the party receiving power if no icpairment of service is thereby occasioned in the supplying party's system.
s.6 spinning neserves Insofar as practicable each system will provide such amounts of spinning reserve capacity that neither the Company nor City systems will impose disproportionate load swings upon the other or make dispropor-tionate demands upon the other for assistance in recting the nonsal
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contingencies of power system. operation.
The loss of City's largest unit when fully loaded and the load suings caused on the Company's systen by thi s loss shall not be deemed as imposing a disproportionate load swing upon the Ccapany's system.
In such a circumstance City uill nake every effort to start up and operate other of its capacity to nahe up for the loss of its largest unit as soon
as possible.
City shall not, except under emergency conditions, operate e.ny generator at more than 95% cf its capacity and the total spinning reserve maintained by it sh be not less than 10% of the capacity of the largest Clarksdale unit in service at the time.
57 Ro switching of 115 HV facilities shall be done or performed without the full knowledge and direction of Oc=pany's system dispatcher in Jackson.
Said switching shall be done in accordance with Company's standard safety and tagging procedures.
VI - METER EADII:G AITD SI'TTLE'E!!TS 6.1 Readinc Meter readings for billing purposes shall be made by Company on the last day of each month unless such day shall fall cn Saturday, Sunday or a legal holiday.
In such. case the reading shall be made on the proximate working day.
6.2 Settlement Bills for amounts due by either party to the other shall be paid at the office of the party to whom payment is due within ten days after the date received.
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In case any portion of any bill be in bona fide dispute, the undisputed amount shall be payable when due, and the remainder, if any, upon determination shall be paid promptly after such determination.
6.3 Meter Testing Metering equipment shall be tested on request by either party and in event at intervals not exceeding one year, with reprenantatives of both parties notified and privileged to be present. Any meter found to be inaccurate shall be restored to a condition of accuracy, and if inaccuracy is one par cent (1%) or more, a correction shall be made in the billing
from the date the meter became inaccurate, if dete =inable.
If the date the meter becere inaccurate is not deteminable, and if City has suitable interconnection metering, the parties hereto agree to use the readings of City's meters; provided, such meters are within the accuracy -limits prescribed above.
VII - MISCELLAIEOUS PROVISIOI!S 7.1 Uncontrollable Forces Ueither party shall be deemed to be in default or liable for
' failure of perfomance of any obligations hereunder if cuch failure or performance be due to uncontrollable forces, the tem " uncontrollable forces" e
f s.
for the purposes hereof meaning causes beyond the control of the party affected which it could not reasonably have been expected to forestall by exercise of due and in its judgment, practicable foresight and which by exercise of due 3
and, in its j dgment, practicable diligence it shall be unable to overcome, including among others such causes as stom, flood, lightning, fire, accident damaging facilities or necessa / outage of facilities upon which perfomance is dependent, failure of manufacturers to take schedule deliveries of equipment, igact of war, mobilication, act of the public i
enemy, sabotage, civil disturbance, labor disturbance, strike, and restraint or order of public authority; provided that nothing herein shall be construed to relieve a party frca responsibility for failure of perfomance if such failure be due to causes arising out of its own negligence or to removable or remediable causes which it fails to remove or remedy with reasonable dispatch.
7.2 Recnoncibility for Loss or Damace Company chall save City unharmed from any loss or dancge to the public arising out of the operation of the Company's transmiccion lines or equipment and the transmission of electric power on its system for delivery hereunder unless such loss or de= age vac caused by the sole
negligence of City, its agents, servants, or employees; provided however, that City shall in all cases be. responsible for any liability under the provisions of any applicable workmen's compensation law for danage or injury'to its own employees and vill not seek any reimbursement therefor from Company.
Conversely, City shcIl save Cc=pany unhamed from any loss or damage to the public crising out of the operation of.its lines or equipment and the transmission of electric power on its system for delivery
. hereunder, or the presence of czployees of City upon the C.ompany's substation premises as hereinbefore provided for, imiess such loss or damage s
was caused by the sole negligence of Company, its agents, servants, or employees; provided however, that Cenpany shall in all cases be responsible for any liability under the provisitns of any applicable workmen's compensa-tion law for danage or inju y to its own c=ployees and vin not seek any reimburscrent therefor frem City.
Ccrpany shall be liable for all loss or damage to its own property, unless such loss or damage is caused by the sole negligence of City, and in that event City shall bear such loss or damage.
Conversely, City shm be liable.for all e
loss or damage to its own property, unless such loss or damage is caused by the sole negligence of Company, and in that event Company shall bear nuch loss or da age.
7.3 uaivers Imy vaiver by a party of its rights with respect to a default under' this Agreement, or with respect to any other natter arising in connection with this Agreement, shall not be deemed a vaiver with respect to any subsequent default or matter.
7.4 neculatorv Anwoval This Agreement is contingent upon the securing of any requisite regulatory approvals and is subject to present and futu-o valid laws, regulations and orders of duly constituted regulatory authorities having jurisdiction.
Either party nay seek authorisation through regulatory procedure for such changes in this Ar eement
's may be required to nahe ony provision thereof just and reasonabla.
75 If at any tire during the operation of this Agreement, any pro-4 vision of this Agreement results in a condition that is deem 2d to be unjust A
or unfair by either party, the parties agree to attempt to negotiate such provision before seeking, unilaterally, the authorisation through regulatory procedure as ' rovided in paragraph 7.4.
p 7.6 notices Any notice, demand or request given in connection with this Agreement shall be deemed properly given if sent by registered mail to the Mayor, City of Clarksdale, P. O. Eox 940, Clarksdale, Mississippi 38614 i
.in case of notice to City, or to the President, Mississippi Power &
Light Company, P. O. Box 1640, Jackson, Mississippi 39205 in case of notice to Company.
The designation of the person to be notified or the address of such person may be chanced ' rom time to time by written nofice.
7.7 successors and Assiens This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the respective parties hereto, but it shall not be assignable by' cither party to a successor. in the operation of its properties without the written concent of the other party except upon foreclosure of a mortgage or deed of trust.
7.8 ISSUANCE OF BONDS BY CITY Any performance by or fixing of any obligation upon the parties hereto under this agreement is contingent upon the issuance by the City of revenue bonds in the minimum amount of $750,000.00 to finance the cost of the facilities to be furnished by the City under this agreement. It is expressly understood and agreed that the City contemplates the adoption and publication of a resolution declaring its intention to issue its revenue bonds payable from the revenues of the Water and Light Department of the City; and in the event twenty per cent (20"6) or more of the qualified electors of the City file written protests against the issuance of the bonds, the City will, within the time required by law after receipt of the written protest, call and hold an election as provided by law.
In the event the vote at said election shall be unfavorable to the proposal therein submitted, or in the event said bonds are not validated as provided by law, or in the event said bonds are not issued for some other reason beyond the control of the City, then the City may cancel this contract and upon cancellation all parties hereto will be relieved of all obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement through their duly authorized officers as of the date O
first above written.
CITY OF CLARKSDALE bl-A
] (_ l MAYOR ATTEST:
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SERVICE SCHEDULE A PISERVE CAPACITY CITY OF CLAR SDALE /diD MISSISSIPPI IU4ER & LIGHT COMPld!Y Ecction I - Purcose 10.10 It is the purpose of thic Schedule to provide a basis for utilic-in5 the capacity in the cystem of each party for supplying Reserve Capacity e to the other. Section II - Character of Service and Metering 10.20 Service shall be delivered and metered at nominal 115,000 volts. The metering equipment installed will corpensate for transformer losses or in lieu thereof 'an allowance of 1% will be made in the measured quantities used for billing. .Section III - Reserve Catacity 10.30 Emergency Accistance: It in the intent of the parties that under emergency conditions either party is entitled to crm upon the other for emergency assistance. The part'y called upon shall furnish such service desired by the party in need to the fullest extent available. Service shall be provided if and when available from the party's own generation and from the generation of others to the extent it can do 30 without impairing service to its own customers, including other electric cystems to whom it has fi = commitments. 10.31 Scheduled Maintenance: Either party shall be entitied to call upon the other to provide power and energy during periods of scheduled maintenance. Such service shal' be supplied by either party as required
by the other up to the rating of City's largest generating unit subject, however, to the limitations of the interconnections between parties. Such service. shall be scheduled in advance to fit maintenance schedules of the parties. The parties agree to cooperate in arranging their respective nr.intenance schedules for their nutuel convenience. 10.32 Reserve Requirements: The supplying of reserve capacity is conditional upon the maintenance of dependable capacity by the parties as set forth in Section 5.2 " Reserve Requirements" of the Interconnection Agreement between the parties. Should either party fail to provide capacity in accordance with the provisions of said section, it shall forfeit the right to call upon the other for reserve capacity under this Schedule. Section IV - Monthlv Billing 10.h0 The capacity and energy supplied hereunder shall be billed and paid for at the greater of: a. 12.5 mills per kuh, or b. 115% of the cost incurred by seller directly attributable to the supplying of such service. Bills shall be submitted. nonthly and shall include reasonable itemisation of cost factors readily available to celler. Section V - Remilatory Antroval 10.50 The effectiveness of this Schedule is contingent upon any requisite regulatory approval. This Schedule is subject to o rders of regulatory authority of competent jurisdiction. Either party may seek authorisation through regulatory procedures for such change in this Schedule as may be required to make any provisions thereof just and reasonable.
Section VI - Tem 10.60 This Schedule shall become effective concurrentl'f with the interconnection Agrec=ent datedM7/:. _f5 ,1976 as a part / ~~~ thereof and shall continue in force concurrently with said Agreement provided that either party n2y teminate this Schedule by uritten notice Civen to the other party not less than five (5) years in advance of the designated date of termination. DICUTED as of s [w g,, _ P, 1976 3 0 CITl' 0F L/2.ESDALE ATTEST: By / L4 / [,/ / x ' Mayor i@dh /7 p/ City Clerk p.f I 1 '~MISSISSIP?P. T& I. BHT CC2/dE c r ,ft 1 4 7-ATlTST: y President .m / \\ -j. p, \\ / Secretary ' " L./
4 SERVICE SCIEDULE 3 U M IEETICHAL.EIERGY CITY OF CLAEESDALE AHD MISSISSIFFI PUdEE & LIGHT COMPAHY Section I - Ptt"cose 20.10 It is the purpose of this Schedule to provide a basis for the payment for enercy unintentionally delivered by one party to the other under parallel operation which it was not practicc1 for the receiving . Tarty to repay in kind. Section II - Character of Service ani Metering 20.20 Sc-vice shall be delivered and nctered at nominal 115,000 volts. The matering equipment installed vill compensate for t.ransformer losses or in lieu thereof an allowance of 1% will be rade in the measured quantities used for billing. Section III - U:' intentional Ener.~_ y Deliverv and Settlement /" 20.30 Deliveries: It is recognised by both parties that there will be unintentional interchange ' f encrcy betueen the systens of the parties o while said systens cze interconnected even though no purchases or sales of enercy are scheduled or intended to be made by either party. This mintentional interchange of energy shall be accounted for by periods and chall be returned in kind; i.e.3 unintentional deliveries by one party to the other during On Peah hours shall be returned by the receiving party during similar On Peak hours, and unintentional deliveries during Off Peak hours shall be returned by the receiving party during sular Off Pc:t hours. Similar hours shall include like fuel supply conditions. As. far as practicable,
be maintained account balances of unintentional interchange of energy sh"71 as near cero as possibic on a daily basis. Ener g balances, however, may be carried fontard frc one day to the next and, to the extent hereinafter pweided, from one month to the next. At the end of each calendar month, the account 20.31 Settlements: balance of unintentional energy received by City from Company in excess of 10,000 kilowatt-hours shcIl be classified as intentional and paid for At the c'nd of each by City at the rate provided for Reserve Capacity. calendar conth, any account balance of unintentional energy delivered by City to Company in execcs of 10,000 kilowatt-hours sh"" be alassified as intentional deliveries by City to Company and shall be paid for by Company to City at five -ni s ($0.035) per kilowatt-hour. If the ' balance of unintentional energy oucd by either party to the other is less than 10,000 kiloratt-hours at the end of r.ny conth, such balance sho7 7 be carried into the following nonth as an obligation to repay in hind. 20.32 Definitions: Off Peak Ecur,3: 9: 01 PM to 7:00 AM CST five week days - and all day on Saturdays, Sundayc, New Years, Independence Day, Labor Day, ' 'fhanksgiving and Christmas On Peak Iburs: Other than O'ff Peah Iburs. Section IV - P.ermlatorv Artroval 20.h0 The effectiveness of this Schedule is contingent upon any requisite This Schedule is subject to orders of regulatory authority reg'ulatory approval. of competent jurisdiction. Either party may seek authorication through regulatory procedures for such change in this Schedule as.may be required to make any provision thercor just and reasonable.
Section Y Tem 20.50 This Schedule chall becc=e effective concurrently with the interecnnection Agreement dr_ted d h.,, /5 ,1976 as a part ,r thereof and chall continue in force concurrent 4 vith said /creement provided that either party may tem.inate thic Schedule by vritten notice G ven to the other party not less than five (5) yee.rc in advance of the i designated date of terdnation. DICUTED as of f l,w c.s _ m, , 1976. r.. 0 r CITY OF CLARI5DAI2: /b d IdTEST: By 2 24,. / / Kayor I ( [1a ~ p-r' [/l City Clerk
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SERVICE SCHILULE C FIEM CAPACITY CITY CF CL/2.ESD!JZ A1 D l'ICSICSIPPI ICER 6: LIGHT CO.4P/Cf Section I - Purroce 30.1o It is the purpose of thic Schedule to provide a basic for the cale of fim capacity by Company to City on a cupplemental baci in event cuch service ic required by City to augnent its capacity to rect the capacity requirements cet forth in Section 5.2 of the Interconnection Agrec ent between the parties or for other cales of firm pover as the partiec nay agree. Section II - Character of Service.anc I'eterinc 30.20 service chall be delivered and tetered at ncminal 115,0C0 voltc. The metering equip.cnt installed will ecmpencate for trancformer loccas or in lieu thereof an allowance of 1% will be made in the reacured cuantities uced for billing. i Section III - Contract Ouantity and Billinr; 30 33 The quantity of power City chan purchace (" Contract ix") in any ncnth chall be detemined as "P" in the following equation whenever "P" ic a positive quantity: C P= LE Where P= 131 to be purchaced. L= City's highest hourly cystem load erperienced in the 12 nonths ending with current nonth exprecced in 131 0= City's dependable generating capability in L:
at Tire of !&:in= lburly Load' P* = lii ddl e South Pmtem Cr.,2ci ty Mcxitum Hourly Loada ca Middle South Syctem The value of R-chall not cxceed 1.25 ' Marinum clock hourly load in 12 months ended with the current conth. " Capacity" chall tean the tot'cl capacity cf all operable units owned or leased by Clarhedale or the Middle Scuth Syr. ten, as the cace may be. The partiec vill promptly inform each other of change:: in load and capacity that may affect the Contract D7 hereunder. KOTE: Fi= purchases from a third party will be deducted frc= Icad and not considered an addition to Capacity. 30.31 Znergy: The Purchacing Party chall be entitled to take enerrj ,.e-e under thic cchedule up to the Contract 137 at any and all hours. 30 32 Monthly E4 ning: $2.75 per DT of Contract 137, plu:: Electric energy delivered in any conth chall be billed at 115% of the conthly coct of power incremental to Company's own J,ad requirements and intractate ec-4 tments, adjucted for trancticcion locscs on the basic of the delivered efficiency of Company's tmncticcion cy.: tem for the prior calendar year. " Cont" as used herein, chall include but not be limited tc fuel costs and/or purchased power costs. In the case of emergency energy, cuch costs chall be nocated to the partiec on a pro rata' basic. 13111ing under thic Schedule chall be for a period of no lecc than 12 monthc. The Contract 13i to be b4' led in any month hereunder chc11 be the greater of (a) the Contract 131 co determined for the current month or (b) the highest Contract Dl co established during the preceding eleven monthc. Section IV - Reculatorv /tpproval 30.40 The effectivenecc of thic Schedule is contingent upon any requisite regulatory approval. Thic Schedule is cubject to orders of regulatory authority of competent jurisdiction. Either party may seek authorization
through regulator / procedures for such change in thic Schedule as may be required to make any provi:: ion thereof just and reasonable. Section V - Te = 30.50 'Thic Schedule chall become effective concurrently with the Inter-I / O' 1976 connection Agreement dated - / c _, n J as a_ part thereof and chall continue in fdrce concurrently with said Agrec=ent provided that either party may teminate this Schedule by ' written notice given to the other party not lecc than five (5) yearc in advance of the designated date of temination. DICUIED AS of J1% v.. /3 1976. O CITY OF CU2ZSDilZ \\ ATEST: By lb i / 4 / / S / t.- Mayor I {.) f GTf) City Clerk 1 5 f \\ I r s lj ' MISSISS P I TLR' & I IGHT CO?IPAll .; _ f .i .,:3 0 .h (- h/4 kV1 ih By ATEST: "] Prepid M r-ll / \\ J : u i: / Secretary / v p*
SERVICE SCIEDUIZ D ECO iOMY EITERGY CITY OF CL/iFT.SD/JZ Id:D MICSISSIPPI PO'*ER & LIGIIT COMP!dTY Section I - Purcoce h0.10 It in the pusoce of thic Schedule to provide a basic for the cale and purchase of economy energy between the parties as they nay mutually agree from tina to time. Section II - Character of Service and Meterin ', 10.20 Service chall be delivered and netered at noninal 115, COO volts. 1 Tne notering equipment inctalled will compencate for trancformer lacse: or in lieu thereof an *owance of 1% vill be made in the reasured quant.tiec uced for billing. Section III - Economy Tnerr,7 I 0 30 Economy energy chall mean energy which the supplying party can 1 d I;roduce and deliver to the receiving party at an incremental coct which is lo!aer than the incremental cost the receiving party would other. rice incur by generating or obtaining equivalent ener[y from other available courcec. Each party chm' detencine when economy energy is available, an'd it uay, but chall not be obligated to offer energy to the other party. Uhen ~ economy energy is available cach party vi, upon rcquest of the other, furnich information with respect to: a. The cost of crergy it can make availabic, and b. Tne value of economy energy it can utilice.
40.31 A party ic entitled to rerive economy energy hereunder only to the extent that such party has alternative dependable capacity, including adequate reserves, and currently available that would otherwice be used. 40.32 Upon requent of one party the other pcrty =cy cupply economy enercy to the requesting party up to the capacity of the power cource or fuel available for cuch cupply cubdect to the judgment of the supplying party that the cupply of cuch energy uin not impair or jeopardice cervice to its own customerc, including other electric systers, to whom it hac equal e cocrittents. Section IV - Billinc and Settlement 40.40 Economy enercy chall be billed at a rate equal to one-half of the sum of a. the costs incurred by the cupplying party for the econo =y energy delivered, and b. the vclue of the energy to the receiving party. The cost of economy energy shM1 =can the.incrc= ental expense as determined by the supplying party to 'be the crpense incurred by it in supplying economy encrcy. The incremental cxpense chC1 also reflect costs, if any, of placing ulits in operation and the incremental increase in trancticcion cxpence attributable to the transaction. The cost to the su plying party y shall be that stated by its load dispatcher prior to commencement of delivery of economy energy and chall be subject to change on an hourly bacis by the dispatcher prior to any hour. Interchange scutlements shall be computed on the basis of clock hour intervals. The value of econony energy shall mean the incremental expense ac determined by the receiving party at date incurred if the economy energy
vere not to be received. The incremental crpence co determined chall reflect both the incremental cxpence of generating or obtaining energy frc any other cource, including the cost, if any, of placing units in operation and the incremental increase or decrecce in cystem trancniscion expence attributable to the trancaction. From time to time the operating representativec of the parties chan review the methods and bases uced by each party te determine cuch coccc and valuec. Each party chall be the cole judge of the capacity and fuel available for Economy Energy cupplicd from itc system and all commitments to other cystem which ray have priority of econcry energy supplied hereunder.
- 40. hl Incofar ac practicable economy energy trancactions chall be scheduled between load dicpatchers not lecc than one day in advance.
Section Y - Rerulator c 1,r'oroval 40.50 The effectivenecc of thic Schedule is contingent upon any requicite regulatory approval. This Schedule is subject to orders of regulatory authority of competent jurisdiction. Either party may coch authorication through regulatory procedures for such change in thic Schedule ac may be required to mt'.e any provision thereof ;)uct and reasonable. Section VI - Tern 40.60 Thic Schedule ch:11 become effective concurrently with the inter-n connection agreement dated -4 6. a n, /.j ,1976 an a part thereof and chall conti tue in force concurrently with said Agreement provided that either party may tencinate thic Schedule by written 9
. ;4 - ', notice given to the other party not lecc than five (5) years in advance of the designated date of termination. Ouk% ib 1976. EXECUTED as of 3 O CIIT OF CLAPJ:SD!iLE ATIEST: By~ /Jif I /..t /f ,b 'l Mayor a /\\ /ft C// fr [! City 'C1Vrh r. l .1 i j' l l. r, l*l 7 s.\\,,MISGISSIP2 ICTE: EI i COMPAI.T />, / I s/ i, I c~, i / Frcoidant G ^*J,/ _N / j[Ib l' qIy__ Af. ATIEST: [ ,t ./.b/c Secretary / r
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SERVICE SCIIEDULE E BULK PCWER TRId:SMISSION SERVICE CIn OF CLAFXSDALE and MISSISSIPPI POWER & LIGIIT COMFJJ."I SECTION I - PURPCSE 50.10 It is the purpose of this schedule to facilitate the e:: change of bulk power by transmission over the transmission f acilities of Missis,sippi rcver & Light Company (Company) between the City of Clarksdale (City) and any entity with which Ccepany is interconnected; and between the city and any entity (ies) engaging in bulk power supply with which Company is not interconnected but between whose facilities Company's transmission lines and other transmission lines would form a continuous electrical path, provided dhat 1), permission to utilize such other transmission line has been cbtained by City, and 2), the arrangements reasonably can be accommodated frca a functional and technical standpoint; and to provide a basis for billing and settlement for the service so provided under this schedule. s 50.11 " Bulk Power" (power) means the electric power (kilowatts) and any attendant energy (kilcwatt hours) supplied or made available at transmission voltage by one entity to another, 50.12 " Entity" reans a person, a pr.ivate or public corporation, a munici-pality, a cc-operative, an association, a joint stock association or business trust owning, operating or proposing to own or operate equipment or facilities for the generation, transmission or distribution of electricity, provided that, except for municipalities or rural electric cc-operatives, " entity" is restricted
to those which are or will be public utilities under the laws of the State in which the entity trantacts or will transact business or under the Federal Power Act, and are or will be providing electric service under a contract or rate schedule on file with and subject to the regulation of a State regula-tory cc= mission or the Federal Energy Regulatory Commission. SECTION II - CHARACER OF SERVICE A:D AVAIIIsBILI'"Y 9 50.20 Service shall be delivered at nominal 115,000 volts er such higher voltage as may be available at the point (s) of interconnection. 50.21 Firm Service: Company will furnish transmission service on a firm basis in accordance with this Service Schedule to the extent Company has exisc-ing transmission capacity available to provide such service under sound engineering and cperating practice and subject to the following standards: a) Such service will neither inpair the ability of the Cc pany to render adequate service to its customers or reduce the reliability of electric service by Company co its own customers during the term of. the scheduled service; b) such service will not endanger or impair the operaticn of the Company's system, or create unsafe conditions on the system or any of the facilities of the Company or its customers or partice with which it is interconnected; c) such service shall not require the Company to construct or in-stall any new facilities; however, if all of the following condi-tions and the other standards described in this schedule are met, Ccmpany will include in its planning and construction program sufficient transmission capacity to acccmmodate proposed transmission service under this Schedule: (i) the participating entity (ies) gives/give the Company sufficient advance written notice of the details of the requested service as may be necessary for Company to plan and ccmplete from a functional and technical standpoint the facilities deemed neces-sary by Company to provide such service in accordance with Company's construction and operating standards; (ii) the participating entity (ies) fully compensates Company for the cost of such facilities beyond the cost Company would otherwise incur for its own use, d) In the event the supplying entity is unable for any reason to supply power for transmission, the Company shall have no responci-bility to deliver such power frcm its own or other source (s); c) the determination of the availability of existing transmission capacity of the Company during the proposed scheduled period shall be made on the basis of existing load, future contracted or pro-jected new load beyond normal load growth, previously scheduled load, and normal load growth of the Company, all determined by the Ccmpany. f) If the requested transmission service involvas transmission di-rectly or indirectly over the facilities of a third utility system, City will make arrangements for use of those facilities directly with that third systcm, and Company c.'.all not be obli-gated to commence transmission service until such arrangements have been made.
-l-g) Service shall be for a period not less than twelve (12) months and scheduled in writing at least thirty (30 days before initial service is rendered. Such service is available only by specific agreement, executed by an authorized officer of the Company, and each participating entity. 50.22 Interrurtible Service: Company will furnish transmission service on an interruptible basis in accordance with this service schedule to the extent Company has existing transmission capacity available to provide such service under sound engineering and operating practice and subject to the following standards: a) Such service may be interrupted withcut liability to the Ccmpany; b) Company will, when circumstances permit, give entity (ies) advance notice of such interruptions; c) such service will neither impair the ability of the Company to render adequate service to its customers or reduce the reliability of electric service by Ccmpany to its own customers during the term of the scheduled service; d) such service vill not endanger or impair the operaticn of the Company's system, or create unsafe conditienc cn the system or any of the facilities of the Company or its customers or parties with which it is interconnected; e) such service shall not require the Company to construct or install any new facilities; f) in the event the supplying entity is unable for any reason to supply power for transmission, the Ccmpany shall have
. no responsibility to deliver such pcwcr from its own or other source (s) ; g) the determination of the availability of existing trans-mission capacity of the company during the proposed scheduled period shall be made on the basis of existing load, future contracted or projected new load beyond normal lead growth, previously scheduled load, and normal load grcwth of the Company, all determined by the Company. h) If the requested transmission service involves transmission directly or indirectly over the facilities of a third utility system, City will make arrancements for use of those facilities directly with that third system, and Ccmpany shall not be obligated to commence transmission service until such arrange-ments have been made. 1) Service shall be for a period of not less than one (1) month, and scheduled in writing at least ten (10) days before initial service is rendered. Such service is available only upon specific request by the city and af ter approval by an authorized officer of the Company. 50.23 It is recognized that the interchange of pcwer is under the control of the participating entity (ies), and they agree it shall be the responsibility of the supplying entity (ies) to supply, under this schedule, the arount of power, plus losses, the receiving entity (ies) is/are taking from the Company's trans-rdssion system at all times under this schedule. The supplying entity (ies) shall supply at all times three percent (3%) more than all power being taken by
_n_ the receiving entity (ics) to compensate for transmission Icsses. 50.24 Since c=ergency conditions or recuired maintenance can cause the system capability to be modified as conditions of the moment dictate, the capacity specified by the Ccmpany as being available, is availabic only when the trans-mission and generation system is in its normal operating = ode. SECTICM III - CTERI :G A"D BILLI :G 50.30 Company will meter service at 115,000 volts. All power (kilowatts and kilowatt hours) billed under this schcdule shall be measured by meters located in Company'.1 Clarksdale Substation. The measurement of all power under this schedule shall be by suitable kilcwatt, kilovar, and kilowatt hour =eters capable of measuring on a 60-minute interval. 50.31 Monthly nate for firm and interruptible service: $0.97 per KW cf demand 7._ T? e KW of demand to be billed during the =cnth shall be the greater of: a) Uhen the City is supplying entity, the maximum :"a of demand so measured during the month such service is supplied. b) When the City is the receiving entity, the maximum KW of demand so measured during the msnth such service is received, multiplied by the loss factor of 1.03. c) for firm service, the maximun KW of demand under a) er b) above for the prior eleven (11) conths. d) The maximum KW of damand scheduled to be delivered or received during the month, e) 1,000 KW 50.32 Energy (kilowatt-hours) taken by the receiving entity (ies) in ex-cess of the energy furnished by the supplying entity (ics) shall be ccmputed
in accordance with the follcwing formula and considered as unintentional energy delivered by the Company to the City and billed in accordance with Service Schedule B, Unintentional Energy. Formula: E = 1.03 (R) - D where E = excess kilowatt hours delivered by the Ccapany R = kilowatt hours received by the receiving entity (ies) D = kilowatt hours delivered by the supplying entity (ies) 50.33 Energy (kilowatt hours) furnished by the supplying entity (ies) in excess of the energy taken by the receiving entity (ies) shall be ccmputed in accordance with the following formula and considered as unintentional energy delivered by the City to the Ccapany and billed in accordance with Service Schedule B, Unintentional Energy. Formula: E = D - 1. 03 (R) where E = excess kilowatt hours delivered by City \\ R = kilowatt hours received by the receiving entity (ies) D = kilowatt hours delivered by the supplying entity (ies) 50.34 Bills for transmission service shall be rendered monthly to the City of Clarksdale and shall be payable in accordance with Article 6.2 cf the Inter-connection Agreement By and Between City and Ccmpany. 50.35
- nterruptible Service that may be taken by the City under this schedule for less than ene month (30 days) shall be computed in accordance with the monthly rate without proration.
50.36 In instances where the Company provides service under this schedule to the City and another entity with which the Ccmpany has executed an agreement for transmission <:crvice, the parties shall mutually agree and notify the Ccrpany in writing, which entity shall be responsible for thd payment for such service.
.g_ SECTION IV - REGU:IsTCRY APPROVAL The effectiveness of this schedule is contingent upon any requisite 50.40 regulatory approval. This schedule is subject to the orders of regulatory authority of competent jurisdiction. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this rate schedule to unilaterally make application to the Federal Energy Regulatory Cc=nission for a change in rates, charges, classification; or service, under Section 205 of the or any rule, regulation, or contract relating thereto, and pursuant to the Commission's Rules and Regulations prc=ul-Federal Pcwer Act gated thereunder. SCCTION V - TERM This service schedule shall be attached to and beccme a part of the 50.50 Interconnection Agreenent entered into on February 13, 1976 by and between the City and Mississippi Fower & Light Ccmpany and shall continue in force concur-rently with said Agreement provided that either party may terminate this schedule less than five (5) years in advance by written notice given to the other party not of the designated date of termination. 1978 EXECUTED as of CITY OF CIJtRKSCAI2 By Mayor ATTEST: City Clerk MISSISSIPPI FCNER & LIGHT CC:2ANY By ATTEST: Secretary
' C I v' La ~$ JM 04 isN .,l.m '. ) ii litt3tiCML CEFMTY:EM 5 t _,...N Greenwood U tili t i e s C PER AT[Q BY TH C VTl LIT;Es CO M u t $ $1C N FC R T r4 C C17Y SINOC 19 C4 POST C rrtCE 5 0 4 866
- EL CD MC N C 16 0 u 4 5 3-72 34 December 29, 1978 c a c e s-C c =. -is s,s sia i 2 ease Mr. Donaki Lutken, President Mississippi Power & Light Company P. O. Box 1640 Jackson, Mississippi 39205
Dear Mr. Lutken:
I have received a copy of Mississippi Power & Light Company's appli-cation to the Missis sippi Public Service Commission for a Certificate of Public Convenience and Necessity to construct and operate a 700 MV7 coal-fired steam electric generating station and related facilities in DeSoto and Tunica Counties, Mis sis sippi. Construction to begin in 1981 and to be in operation in 1985 At our meeting in regard to a wholesale rate you told me of your plans to construct a 700 MVT coal fired plant and asked if Greenwood Utilities would be interested in the purchn se of a part of the plant. Greenwood Utilitie s is interested and I would welcome the opportunity to discuss the matter further with you or anyone you suggest. Yours ve ry truly, GREENWCO D UTILITIES / _ /:,,. L /. ^ y~ ,/
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C. M. Mathew s, Manag e r C MM:lfr
,,m, .,.32 !c L ,,M I ) f'L MISSISSIPPI POWER & LIGHT COMPANY Helping Build Mississippi J MLbd P. O. B O X 16 4 0. J A C K S O N. MIS SIS SIP PI 39205 January 1C, 1979 CCN ALD C. t.UTXEN pe E S.C E Pef Mr. C. M. Mathews Mar ager Greenwood Utilities Post Office Box 866 Greenwced, MS 38930
Dear Charlie:
This is in respense to your letter of Cecerter 29, 1979. We believe this will be a very opportune time to discuss your interest in exploring joint participation in a coal-fired unit proposed to be con-structed in the vicinity of Walls, Mississippi by Mississippi Pcwer & Light Cc=pany since the proj ect is in the beginning stage and we antici-pate no real prcblem in altering our plans to accen=edate your reasonable needs. We would propose that your participaticn be through joint cwner-ship, with your supplying the funds for your part frc= the beginning to completion. To acce=cdate our physical and financial planning, we feel it will be necessary for you to give us a definite cen=ittent by July 1, 1979 as to the participation you will take and that there be an executed centract cf sale and a closing by Decerter 31, 1979. Please let us know what you need in the way of engineering and technical data or other details to form the basis of your decision and we'll be glad to share it with you. To ensure that ycur requests are directed to the proper person in our organicatien, please address all requests to Frank York (telephone ::o. 601-969-2313). We are working en a draf t of a propcsed sale and cwnership agree-cent and operating agreement which would be the basis of joint par-icipation in this project. If your preliminary investigation indicates you are still interested we will be glad to arrange a meeting to discuss these. We 1cck fc: ward toward working and planning with you in this con-crete way to ensure a stable pcwer supply for the benefit of ur custerers and curs. v- *.~. 7,f, y / o D. C. dtken Cc,,,., J., o, Sta pley cc: Mr. N. L. York, Jr. / bec: Mr. D. E. Meiners Mr. F. S. Fr. S. W. Wise Mr W-D- C01:er Mr. J. C. Holland w wa-.a. 'ir. J. .l. Schirpf hi A P b 4 I .S h e d l 0 cijI? EI
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law cpwiCEs 7 ,,.,7 3 p SPIEGEL & McDIARMID , a,! - { ;,j f !.. ,.e M 2600 VIRGINIA AVENUE N. W. WASHINGTON, D. C. 20037 TELEPHONE CO2) 333-45C0 GE E SPIEGEL PETER K. MATT RC T C. MCOIARMIO DANIEL J. GUMM AN S ANORA J. STREBEL OAVID R. STR AUS ROBERT A. JASLCN SCNNIE S. BLAIR JAMES N. HORWCCO RODERT HARLEY SEAR ALAN J. ROTH TNCM AS C. TRAUGER raAuCEs E. rRANC:S September 22, 1978 cANigt s. DAvlCSON JAMES CARL PCLLCCK TNOMAS N. MCHUG H. JR. Janet Urban, Esq. Antitrust Division Department of Justice P. O. Box 14141 Washington, D. C. 20044 HAND DELIVERY-STAR BUILDING, RCCM 9412 Mississippi Power & Light Ccmpany, Grand Gulf Nuclear Station Units 1 and 2, NRC Dockets 50-416A, 50-417A, Department of Justice File 60-415-57.
Dear Ms. Urban:
This will confirm my inquiry to you as to the sta-tus and interpretation of the antitrust license conditions in the above-captioned proceeding. You advised me that the Department might, indeed, be interested in the situation apparently inconsistent with the antitrust laws arising under the license conditions and apparently inconsistent with those conditions. Consequently, I furnish, for your information, the following data with a request for your review and further advice. On May 24, 1973, Thomas E. Kauper, then Assistant Attorney General, forwarded. to the (then) Atomic Energy Commission the Department's Letter of Advice with respect to Mississippi Power & Light Company ("MP&L"), then the appli-cant for a construction permit for the above-captioned units, in accordance with the provisions of Section 105 of the Atomic Energy Act of 1954, as amended. That Advice Letter confirmed that the Department had reached agreement with the applicant as to license conditions which would resolve "any questions as to the policies that it intends to follow during the period of the Grand Gulf license..." (Letter of Advice,
- p. 5).
The Commitments themselves, attached to the letter of May 22, 1973, frcm Donald C. Lutken, President, Mississippi Power & Light, to Mr. Kauper, provided, inter alia, that applicant would:
Janet Urban, Esq. September 22, 1978 ( Commitment 2) interconnect with and coordinate reserves with other entities in the area; (Commitment 4) " offer an opportunity to participate in the Grand Gulf Units to any entity in the Western Mississippi Area; Commitment 5) " facilitate the exchange of bulk power by transmission over its transmission facili-ties between or among two or more entities in the Western Mississippi Area with which it is interconnected; and between any such entity (ies) and any entity (ies) engaging in bulk p,ower supply outside the Western Mississippi Area between whose facilities applicant's transmission lines and other transmission lines would form a continuous electri-cal path, provided that (1) permission to utilize such other transmission lines has been cbtained, and (2) the arrangements reasonably can be accom-medated from a functional and technical standpoint.", and; ( (Commitment 6) sell power for resale to any entity in the Western Mississippi Area now engaging in or proposing to engage in retail distribution of electric power. Tae City of Clarksdale, Mississippi, which had pre-viously operated isolated, has entered into an interconnec-tion agreement with Mississippi Power & Light which, for present purposes, may be assumed to satisfy MP&L's cbligation under Commitment 2. That Interconnection Agreement, however, did not provide for transmission service, or for the purchase by Clarksdale of wholesale pcwer under MP&L's filed tariffs at the FERC. That Interconnection Agreement was filed at the FERC by MP&L on June 27, 1977, and the facilities were first energized in early August, 1977. As early as December, 1976, however, the City of Clarksdale had inquired as to the availability of partial requirements power from MP&L and of the likelihcod of an offer of participation in MP&L's Grand Gulf Units.
- Shortly, thereafter, the Company had responded that it did not propose to serve individual customers at wholesale not previously served (Letter of January 17, 1977).
We are advised, in this connection, that MP&L had discontinued its previcus partial
Janet Urban, Esq. September 22, 1978 partial requirements rate filed at the FPC which it had uti-lized to sell partial requirements power at an FERC rate to Yazoo City, Mississippi, at approximately the same time it began negotiating interconnection agreements with Clarksdale and Greenwood, Mississippi. On July 20, 1977, Clarksdale filed a Petition to Intervene in the FPC docket in which MP&L had filed the interconnection agreement with Clarksdale on June 27. Clarksdale noted that the agreement in question was an outgrowth of the policy commitments of MP&L append'ed as con-ditions to its AEC license and that in the view of Clarksdale the interconnection agreement met scme of the requirements undertaken by MP&L but by no means all. Clarksdale specifi-cally noted that the commitment required the sale of power for resale, provision of transmission capacity, and others, and noted that it was filing the intervention petition in order to give notice "of its belief that the interconnection agreement is inadequate and that it will seek the additional service schedules which are believed necessary and which it hopes will then be filed voluntarily by the Company." on August 4, 1977, MP&L filed its Response of Mississippi Power, & Light Company to Petition to Intervene of Clarksdale, Mississippi, in the FERC docket. MP&L, opposing the inter-vention of Clarksdale in that docket, stated that: the FPC has not been established as the enfor-cement agency for license conditions included in nuclear power plant licenses. Rather, to the extent that Clarksdale may believe that MP&L has not fulfilled its obligations under its construc-tion permits for the Grand Gulf Nuclear Plant, its remedy rests with the NRC, not with this Commission." On July 19, 1977, the Mayor of Clarksdale, Mayor Richard M. Webster, Jr., had directed a letter to Mr. Donald C. Lutken, President of MP&L. Mayor Webster noted, inter alia, that so far as Clarksdale's records showed, no offer of participation in Grand Gulf
- Nuclear Unit had been made to Clarksdale, and inquired when the process of making an offer or furnishing data preparatory to an offer would be made.
~ Mayor Webster also expressed an interest in purchasing base load power and energy from MP&L under MP&L's wholesale filed rate. Mayor Webster noted that Clarksdale would have capa-city excess to its needs best suited for peaking purposes as
-Tanet Urban, Esq. September 22, 1978 a result of the national policies which had deprived Clarksdale of the gas supply upon which it had relied in the construction of its generation, and inquired as to the transmission rate which MP&L would apply to the sale of unit capacity by Clarksdale or purchase by Clarksdale to or from other entities interconnected with the Middle South Transmission System. On August 18, 1977, Mr. Lutken, President of MP&L, responded to Mayor Webster suggesting that Clarksdale had never expressed an interest before in par-ticipation in the Grand Gulf Unit and therefore participation woud be difficult if not impossible but that the Company was willing to discuss the matter further if desired. The letter suggested that a better approach might be to consider the possibility of supplying Clarksdale's needs temporarily pending the planning and construction of future generating facilities and that the present interconnection agreement provided a schedule for that. He later noted, however. that energy available under those schedules would be at the incre-mental rate for the entire Middle South System, then esti-mated to be in a range between 59 and 69 per Kwh. The Company offered to consider the purchase of Clarksdale's excess capacity for peaking purposes and requested addi-tional information. It also stated its willingness to deve-lop a proposal for transmission service to Clarksdale and requested an idea as to the maximum quantity of power under consideration and the point of interconnection with the MP&L transmission system. Mayor Webster responded September 8, 1977, again requesting an offer of participation to be made for the Grand Gulf plant, and requesting an opportunity for Clarksdale to purchase base load electricity priced at its appropriate cost or to purchase approximately 19.5 megawatts of capacity frcm Mississippi Pcwer & Light at established FPC wholesale rates. Several meetings were held between Clarksdale and MP&L, beginning on October 26, 1977. Preparatory to that meeting, / Mayor Webster had furnished to Mr. Lutken a letter of Cctober 18, 1977, specifying in more detail scme of the matters which Clarksdale wished to achieve. Clarksdale has no wish to divulge at this time the particular positions taken by MP&L at these series of meetings, but it is clear that no offer of participation in Grand Gulf has been or is likely to be made; that MP&L has declined to purchase power or energy from Clarksdale or to sell base load power or energy or power and energy under its FERC filed rate to Clarksdale even though it can be shown that such transactions would be advantageous to its shareholders; but MP&L did file a proposed transmission
Janet Urban, Esq. September 22, 1978 rate for Clarksdale on August 28, 1978, in FERC Docket No. ER78-583, together with a similar rate for the City of Greenwood, Mississippi in Docket ER79-584. While Clarksdale believed certain aspects of that rate filing to be oppressive and unjust and unreasonable, and filed a Protest, Petition to Intervene and Request for One-Day Suspension on September 15,
- 1978, Clarksdale also believed that it would be able to uti-lize that transmission tariff to finally obtain some relief from the extremely high energy costs which it was forced to incur purchasing high cost oil to cperate its units in a situation where base load power and energy were not available from any other source.
Consequently, Clarksdale entered an agreement with the City of Lafayette, Louisiana, for the purchase of somewhat more than 14 megawatts of capacity, and the delivery of that power and energy (in unit
- contract form) from Lafayette to MP&L over the system of Gulf States Utilities Company, connected with MP&L by the 500 Kv backbone transmission system in the area at the Gulf States' Willow Glen site.
By letter of September 8, 1978, Mayor Webster requested that MP&L, in accordance with the notice provisions of its filed tariff, provide transmission service for this power and energy as quickly as possible, and also inquired further about the decision to offer participation in Grand Gulf. As a result of a request from MP&L's manager of system operations, Clarksdale furnished MP&L a proposed hourly sche-dule for transmission service starting at 8:00 AM September 20, 1978, as requested. By letter of September 15, 1978, MP&L formally acknowledged receipt of Mayor Webster's letter, and stated that there was a technical difficulty in scheduling and accounting for the energy requested at the delivery point since MP&L did not have an interconnection agreement with Gulf States, but indicated that it might have been able to work out a way to accommcdate by asking Louisiana Power & Light Company, its corporate affiliate, to act as agent. It indicated, however, that it would be unable to furnish firm transmission service over the interconnec-tion proposed since there was but a single transmission interconnection with Gulf States, but proposed utilizing the services of Louisiana Power & Light Company or other entities for facilities to "back up" the Gulf States interconnection.
Janet Urban, Esq. September 22, 1978 By telephone conversation of September 19, 1978, however, MP&L advised Clarksdale that it would not be possible under any circumstances to receive energy from Gulf States until an interconnection agreement between MP&L and Gulf States could be worked out, and that this negotiation might be quite lengthy. Thus, MP&L suggested that Clarksdale (or Lafayette) contract with Louisiana Power & Light for ser-vice under LP&L's transmission schedule, in addition to the transmission rates, terms and conditions with which Clarksdale would have to comply already with Gulf States and MP&L. Since none of Clarksdale's advisors could understand a legitimate basis for such position, Clarksdale, by letter of September 20, 1978, requested a written explanation of MP&L's position. MP&L initially indicated that it would furnish such a written explanation, but at approximately 5:00 PM that af ternoon, stated that inasmuch as the Company's refusal to provide transmission service from the Gulf States intercon-nection had long-range implications, it could not furnish each a letter. As may be seen from the above, despite diligent application and suLstantially more correspondence i:han is outlined above, although Clarksdale has requested wholesale service on a partial requirements basis under FERC tariffs, MP&L has declined to provide such service, a position which Clarksdale believes inconsistent with MP&L's obligations under the License Conditions. Although Clarksdale (and others) have repeatedly requested that an offer of par-ticipation in MP&L's Grand Gulf Nuclear Units be made, no such offer of participation has been forthcoming and Clarksdale has been given no reason to expect that such an offer will be made, a position which Clarksdale believes to be in violation of MP&L's License Commitments.
- Moreover, although MP&L has finally filed a transmission service sche-dule, it has chosen to interpret its service schedule in such a way as to effectively preclude the ability of Clarksdale to obtain capacity and energy which would be economic for Clarksdale even with the payment of two " pancake" transmission rates, insisting that Clarksdale enter into an agreement with its corporate affiliate LP&L as well, and pay both of these Middle South Utilities' affiliates even though the Middle South System itself, which is believed to have an interconnection agreement with Gulf States, permits a free-flowing centrally operated transmission operation over and through all of its affiliates for the benefit of any one.
Clarksdale believes this, as well, to be inconsistent with MP&L's license obligations.
Janet Urban, Esq. September 22, 1978 On behalf of the City of Clarksdale, this will serve to inquire whether the Department of Justice believes these positions of MP&L, which I think are fairly outlined herein, to be consistent with the agreement reached between Justice and RP&L embodied as the Grand Gulf License Commi tments. If the Department does believe these positions to be consistent with license obligations, I believe that, at a minimum, substantial attention should be directed to the function which the Department has been exercising under Section 105 of the Atomic Energy Act of 1954, and its posi-tions revised. If the Department believes that these posi-tions are not consistent with its agreement with MP&L, this will request your advice as to what, if anything, the Department does in such situations to enforce,its agreements. I apologize for directing this letter to you; this is a matter of some urgency, however, to the City of Clarksdale as a result of the comparative electric rates which it has been forced to assess its consumer-voters in the absence of alternatives, and the (ccmparatively) lower rates charged by MP&L in the surrounding area, together with the repeated efforts of MP&L to purchase the City's facilities in the past. I understand that you will be willing to direct this letter to the appropriate niche within the Department's ever varying structure to permit us to comply with protocol while still obtaining the Department 's views, if such views are to be given, as quickly as possible. Two additional copies of this letter are attached for your convenience. v^ -s very truly, ^ J Q p(M14 Robert C. McDiarmid Attorney for the City of C;1rksdale, Mississippi Enclosures RCMcD:jbs O
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N E I I) N PIfIEST i Mb " ' ' ' I ~ ! ! U O 'h ~~~ T 40 W.\\LI.. Tit!!!!T O NEW YORIC. N. Y.10003 212 38&*2233 MIDTOWN orricY ~ w hit 1NOTON o TIcE 30 ItOCMEFELLEli PIAZ A CA2sLE ADDREs si*n EIDAFT* IFOR K STh t:ET. N. W. WASIIINOTON. D C 00000 NEW YOltK. N Y 30000 Twx wo; 7 oseanygg Washing ton, D.C.- ma s.u.waaa October 16, 1978 Janet R. Urban, Esquire Antitrust Division Department of Justice Washington, D.C. 20530 Re: Mississippi Power & Light Company Grand Gulf Nuclear Station, Units 1 and 2 NRC Dockets 50-416A, 50-417A Deoartment of Justice File 60-415-57
Dear Ms. Urban:
This letter will respond to the concerns you expressed in our telephone conversation of October 2, 1978, respond to Mr. McDiarmid's letter to you of September 22, 1978 on behalf of the City of Clarksdale (Clarksdale) and supplement my letter to the Antitrust Division of September 25, 1978 on behalf of Middle South Energy, Inc. (MSE) and Mississippi Power & Light Company (MP&L). We welcome this opportunity to address your concerns and refute Mr. McDiarmid's allegations. Both MP&L and MSE are committed to faithfully ad-hering to the policy commitments adopted by MP&L and imposed by the Atomic Energy Commission (now' Nuclear Regulatory Compission, NRC) cs conditions to the Grand Gulf construction license. MPGL g,nd N' MSE believe they have abided by both the letter and spirit of the license conditions. This letter will show that Mr. McDiarmid's allegations on behalf of Clarksdale are unfounded and, accordingly, your concerns about MP&L's dealings with Clarksdale, in regard to ?l) Grand Gulf access, (2)' transmission and (3) wholesale bulk power supply, are unwarranted. 1. Grand Gulf Access There appear to be two separable issues concerning access to Grand Gulf. The first issue, which was anticipated by our letter of September 25, 1978, is whether MP&L and MSE have lived up to their license conditions on affording Clarks-dale an opportunity to participate in Grand Gulf and, indeed, if at this late date Clarksdale were to request access, whether the license conditions would require MP&L and MSE to make it available. Although MP&L's conduct and position are thoroughly
. documented in our letter of September 25, 1978, we will comment briefly on Clarksdale's allegations. Mr. McDiarmid's letter to you of September 22, 1978 confirms what MP&L had begun to suspect; that the issue of access for Clarksdale is a red herring designed by Clarksdale to pres-sure MP&L on other pending negotiations. Mr. McDiarmid's letter, while it articulates no specific complaint, suggests by innuendo that Clarksdale has been refused access to Grand Gulf. It has not. Note, however, that while he refers at least four times to a lack of " offers" of participation, not once does Mr. McDiarmid state that Clarksdale would like to participat_ in Grand Gulf. At least since January 17, 1977, Clarksdale has had all the information it requires about Grand Gulf to make a' decision con-cerning participation. Significantly, at the meeting of May 26, 1978 between representatives of Clarksdale and MP&L, Mr. McDiarmid, aside from lecturing for five minutes on the hornbook law of " offers," made no mention of any interest in participation by Clarksdale. Indeed, neither Mr. McDiarmid nor Mayor Webster of Clarksdale made any other reference to Grand Gulf in the day-long meeting. In short, MP&L has afforded Clarksdale ample opportunity to participate, but Clarksdale has refused to seize it. MP&L feels that the time has come for it, with Justice's concurrence, to close the door on those opportunities. In addition, MP&L and MSE's. agreement in principal to sell 10 percent of Grand Gulf to South Mississippi Electric Power Association ( SMEP A) and West Missisippi Electric Power . Association (WMEPA) which had indicated a desire to participate over four years ago is proof positive of MP&L and MSE's full compliance with the license provisions on access. The second issue with respect to access, one which you raised, involves the desireability of amending the Grand Gulf license conditions to eliminate their obviously unintended open-ended nature. MP&L and MSE agree with you that this may be desireable and are currently studying your informal suggestions as to how this might be accomplished. We feel strongly, however, that this is a matter to be resolved solely between MP&L and MSE, on one hand, and the Department of Justice, on the other. 2. Transmission You have expressed concern, founded on the allegations in Mr. McDiarmid's letter, that MP&L has not lived up to its com-mitment 5 (as listed by Mr. McDiarmid) providing that MP&L will facilitate transmission "over its transmission facilities."
- Among other things, Mr. McDiarmid alleges that MP&L has somehow impeded Clarksdale's purchase of power from the City of Lafayette.
Nothing could be further from the truth. Commitment 5 of the license conditions (which incidently are incorporated in MP&L's filed transmission rate) requires that (1) there be a continuous electrical path between the supplying party and MP&L's transmission lines; (2) that permiss_ ion to use these lines has been obtained, and (3) that the transmission can be accomodated from a functional and technical standpoint. Despite the fact that MP&L believed there was such a technical problem with the delivery point requested by Clarksdale, by its letter to Clarksdale of September 14, 1978 MP&L advised that it would work out the problem on either a firm or an interruptible basis. MP&L operating people thought that che problem had been solved and that the City of Lafayette (Lafayette) could work through Louisiana Power & Light Company (LP&L) to affect delivery to MP&L. It was, therefore, surprising to find Clarksdale complaining about this very situation. Clarksdale first expressed interest in a transmission rate by its letter of September 8, 1977. MP&L's president, Mr. D.C. Lutken, on January 18, 1978 confirmed MP&L's intent to provide transmission service and gave Clarksdale a progress report on the development of such a rate. By letter of March 2,
- 1978, MP&L distributed to Clarksdale and its consultant a draft Pchedule E to the Clarksdale Interconnection Agreement, providing for trans-mission service.
Clarksdale rejected the proposed rate schedule and the subsequent exchange of letters and meeting of the parties produced no mutually acceptable schedule. By letter of August 14, 1978 Clarksdale advised MP&L that it had the opportunity to obtain purchased power if MP&L would provide transmission services. In an effort to accomodate Clarksdale, MP&L on August 28, 1978 unilaterally filed with the Federal Energy Regulatory Commission (FERC) Schedule E to the MP&L-Clarksdale Interconnection Agreement and requested waiver of the 30 day notice requirement so that transmission could begin immediately. The rate tendered for filing reflects the extensive negotiations between the parties and tracks the terms of the Grand Gulf license conditions. It is now up to the FERC to determine if the filed rates are just and reasonable and any excess not supported by MP&L's cost of service will be ordered refunded. Clarksdale's complaint to the Antitrust Division on this score is at best premature. Inasmuch as Clarksdale has intervened in the FERC proceeding, it will have ample opportunity to air whatever competitive allegations it has with respect to this rate schedule. Certainly, Clarksdale's mere disapproval of the transmission
t .. rates, which is all Clarksdale has so far alleged, does not amount a violation of either the license conditions or the anti-trust laws. Moreover, as for Mr. McDiarmid's complaint and your concern about MP&L's insistence that Clarksdale itself deal with LP&L, MP&L is aware of no requirement, whether under the antitrust laws, MP&L's license conditions or under the regulatory scheme in general, that MP&L interfere with the internal business decisions and otherwise make commitments on behalf of any independent third party, simply by reason of its corporate affiliation (LP&L) or by reason of its being joined electrically (Gulf States Utilities, Inc.). Again MP&L suspects, and the following chronology suggests, that Clarksdale is trying to fabricate its own " inconsistent situations." Late in the afternoon of September 19, 1978, after several conversations that day, Mr. M.L. Carraway of Clarksdale's Water and Light Department advised MP&L's Mr. T.A. Dallas by telephone that Clarksdale's consultants could not underst5nd the two alternative transmission arrangements proposed by MP&L (one using LP&L, the other using Gulf States). He requested that Mr. Dallas answer his questions in writing so that he could get the correct information to his consultants, since he was having difficulty explaing MP&L's proposals to them. Mr. Dallas said that he would see what he could do and would begin working at once. At approximately 5: 00 p.m. the next day, September 20, 1978, after several more con-versations that day with Mr. Carraway, Mr. Dallas offered written answers, provided that Mr. Carraway would put his questions in writing. Please note that at this time (approximately 5:00 p.m., September 20, 1978), Missisippi Power & Light Company had not received a written request for the information referred to by Mr. McDiarmid's letter. Two letters from Mr. Carraway to Mr. Dallas were posted September 20, 1978, and received September 21, 1978, one of which requested MP&L's written position as to avoid any chance of "misinter-pretation". Mr. Lutken answered both letters by letter to Mayor Webster dated September 21, 1978, which summarized the factual situation and again offered the two alternatives; either for Clarksdale to arrange wheeling by LP&L from Lafayette to MP&L or for MP&L to enter an interconnection agreement with Gulf States. On September 22, 1978, Mayor Webster wrote Mr. Lutken saying, in effect, that he did not believe Mr. Lutken's representations and threatening to complain to the Antitrust Division. The fact that Mr. McDiarmid's lengthy letter to you was hand delivered on September 22, 1978 suggests that this whole charade was contrived to pressure MP&L to submit to Clarksdale's terms on partial requirements service. O
.. ~ The charade continues. On September 26, 1978, Mr. Lutken wrote Clarksdale saying in effect: tell us what you want and when you want it and we will trapsmit it as soon as the FERC waives the 30 day notice requirement. On Monday, September 29, Mr. Lutken notified Clarksdale that on the previous Friday, September 27, the Commission had granted the requested waiver and reiterated MP&L's readiness to wheel for Clarksdale as soon as Clarksdale decides the length of and schedule for deliveries and whether it wants firm or interruptible service. On October 2~, Clarksdale wrote Mr. Lutken that Clarksdale had made all necessary arrangements with Gulf States and Lafayette, and that it wanted firm service for one year for delivery of up to 14 megawatts. Clarksdale, however, found new cause for delay by withholding an updated transmission schedule until MP&L once again reaffirms its agreement to transmit. On October 3, Mr. Lutken advised Clarksdale that the offer to transmit for them was still open, but that in checking with Gulf States, he learned that Clarksdale had yet to make arrangements with it and that Clarksdale had not taken up MP&L's offer of September 21 to make such arrangements. On October 6, Clarksdale responded that they have finally contacted Gulf States which would draft an interconnection agreement between MP&L and Gulf States and forward it to MP&L. On October 10, MP&L advised Clarksdale that it is standing by ready to wheel as soon as the papers are executed. This most recent round of correspondence, copies of which are attached, shows that MP&L has been most cooperative and cordial in trying to serve Clarksdale in spite of Clarksdale's contentiousness. 3. Wholesale Bulk Power Sucoly As to Commitment'6 of the Grand Gulf license con-ditions which commits MP&L to selling power for resale, Mr. McDiarmid has complained and you have expressed concern that MP&L is offering Clarksdale partial requirements service at rates based on marginal costs. Ir. addition, Mr. McDiarmid has alleged that MPSL has refused to sell to new wholesale cus-tomers and that MP&L has refused to sell base load power to and to purchase power f rom Clarksdale. Clarksdale and MP&L have been interconnected since August of 1977. Prior to that time, Clarksdale did not request service from MP&L and MP&L did not serve Clarksdale. Accordingly, MP&L did not take Clarksdale into consideration when fore-casting its future base load capacity requirements. Inasmuch as Clarksdale's purchases from MP&L now impose marginal costs on MP&L and because, as a partial requirements customer, Clarksdale will continue to impose such marginal costs, MP&L will pass those marginal costs on to Clarksdale, subject to FERC
, llk-approval. We are aware of no legal prohibition on dis-tinguishing between classes of customers based on actual differences in the costs of providing service to those classes. To the contrary, both the FERC and the antitrust laws recognize cost-justified price differences. See initial decision by Judge Gordon (formerly acting section chief in the Special Trial Section of the Antitrust Division) in Southern California Edison Co., FERC Docket No. ER76-205, (Slip opinion p. 71 June 1, 1978); see also 15 U.S.C. S13 ( a). The full Commission currently has before it this very issue in Florida Power & Light Comoany, FERC Docket ER78-19. MP&L is following this proceeding very closely and if the ultimate outcome is a broad policy statement on the appropriateness of marginal cost-based rates for partial requirements service which fits the MP&L-Clarksdale situation, MPFL will abide by it. In any event, at this stage neither complaint to the Antitrust Division nor, indeed, to the NRC are the proper means to raise this fundamental rate-making issue. Mr. McDiarmid's allegations of MP&L's refusal to sell to new wholesale customers and refusal to purchase from Clarksdale are easily refuted. As MP&L's letter of December 8, 1976 bears out, what MP&L refused was to serve new partial requirements customers at rates based on embedded costs. This is simply a restatement of Clarksdale's first complaint on partial requirements rates and need not be dealt with separately. Moreover, Clarksdale's suggestion of something sinister about MP&L's termination of Yazoo City's partial requirements rate is equally inapt. This " partial requirements" rate for Yazoo City was the rate schedule for the exchange of reserved capacity and off peak energy under MP&L's Interconnection Ageement with Yazoo City dated September 26, 1962. These were rates fixed for the life of the Interconnection Agreement, adjustable only for increases in fuel costs. Changing costs due to inflation rcsulted in these rates becoming an unfair burden on other MP&L customers. Therefore, MP&L on June 14, 1973 gave one year notice of its intent to cancel the agreement effective June 14, 1974. Yazoo City subsequently agreed to the with-drawal of these partial requirements rates and to the substitution of modern ones. It is entirely coincidental that the effective date was so close to the initiation of the latest round in a long series of negotiations with Clarksdale for an initial intercon-nection agreement. (See MP&L's response to Question 13 of Con-struction License Application, pp. 4-5, September 22, 1972.) Finally, Clarksdale suggests that MP&L has refused to purchase power from Clarksdale or to sell base load power to Clarksdale under its FERC filed rate. This is simply not true. g From July, 1977 through August, 1978, MP&L sold Clarksdale 9 9
t' .e s . 6,341,800 kWh of energy for scheduled maintenance and 1,552,200 kWh of emergency energy under Schedule A of its Interconnection Agreement. During the same period, MP&L purchased 287,810 kWh of emergency service from Clarksdale. In conclusion, MPGL has at all times dealt with Clarksdale on the basis of good faith. With respect to access to Grand Gulf, Clarksdale, despite having been provided with cost estimates almost two years ago, has yet to express any interest. With respect to Clarksdale's transmission complaint, Clarksdale as a party to the FERC proceedings can litigate the justness and reasonableness of MP&L's transmission rate at the FERC, the forum that has jurisdiction over such rates. As fa.: as partial re-is concerned, MP&L will abide by both generally quirements service applicable final pronouncements on the subject and by any particu-lar FERC findings as to the justness and reasonableness of MP&L's cost-justified rate differences. If you have any further questions in this matter, please let me know. Sincerely f L. Peter Farkas Attorney for Mississippi Power & Light Company LPFumac Enclosures cc: Donald A. Kaplan Donald C. Lutken Sherwood W. Wise \\}}