ML19319B833

Amend 12 to Application for Ol.Responses of Toledo Edison Co to Info Required by Att General

ML19319B833
Person / Time
Site:	Davis Besse
Issue date:	08/31/1969
From:	TOLEDO EDISON CO.
To:
References
NUDOCS 8001280664
Download: ML19319B833 (200)

Text

,4 s

'o f-

'-M

• .V O.

I.l r

+

s

'. ' +

.L.

.. p.y.;...

?, ;.

?

Y 5

Ih

.% Q.),.J., f. J a% ' f &....g'g?"A}1 o.a

~e.g ~  ! '

A w. &,.

~.v.

W

.\\-p.

g <. q : #

Q F

..%['

, %.k, &. $ ). 4 ;,r.n % y. y.

n ' : bj} _..' _r g 5. _4 - ['+T,' [ '.' 3 '.,l

' '^

4.

y' Al a y y.., c., o,z v

a m ;.,

,. n A...,..

7' y~,c_. %

n.....,,.,

. qc

n. e,.

u.>.

. 4

+

-t u.

- 4. ~ :...., ' i 'i ' y... Q,,,

=.4 y.c Q..,,f '... ),. y.., I,,[p% +. +

7

~, e.

n

,Qw '

• R s.

k

. 'y, er ^

u,

(,- h h (+ ! g.

a

~.

o-

,, ~..

_y

~

pz.

q,-

-,'.(-.,' [. 2(..9 s

+-

y YW [ J -

y,, e y >, %[,..(f'".e-

> ~ ?.'.,

...,. A..

f <.

, q.;

., - 4 ',;

,,. v.

4 y.,

s.

s

[k,.

.) d-x [, w,[

s.

g Y

,n -

a y.;

L.

t

}.,.Q ' - y. ]

. g ;. ?.1, ;...t..

&(.

yg, x,. ;t,,; p '-g,g g., %. r v t,3, ;:,

c ' L..-q v.

i 9 4 _m_

p.,

- -..; -,.: ) -.. ; -,, n

.w

,b.,j

,g a'

c,

. q,.

- v,-,.::,

..x.

q

- 3.

.>p s

y '-

a,, 4 A-0 e

v u.

-r 4

r

>, ]s '.

. ~

t,.fV%g,g "g:.4.,w A.N. ;'.N eL. *.',;.

- 13 v./ eq 43, s,

..g t

/

. N.M;. q.. _, _n

..,, 4 g.

';y;..

%g r n A % % k hd_%.

y i, '.; $.f.

m...

j

,7,.

4 m.d:1 -f ;,.., 7; *,

c,.

.. s.

m h'

}.;,W? !*+

-6%,. '.

"s - -

s

. =;, c.

.',s.

~

a : -M

-z

, _y

?

p. 4

.v. _ c..

e t

a - --

.,e v

. s.....

n y

.-y

\\r-y,"<+p"

.?

y.

< Q,.,9, q

..u s;

1 ; =.. x.

3 2

i...y.

J.,m 7... q - w S

..,,....A y.

~ r

.e.,,

e

~

<v

_ ~

~

j p.

3,'

y s

+

. {

<,s y.

+ 9; u

..; c -

v.,A;'.

. 8, 3.u.,

,s y w

.3

'~'.

K *..g p,,

9 yp.

4,, a, -. j

.,, <> s - A

,s

,,t s.

a s

.s s *- sy

,e

.,,,.. i [4,W' u - +

4E y

..,e

3..R '.

, f.f

'..sp.

g g4 g

,g 9 y 3.

l l Q '._

x

' t,h + $

V.

. ^

O,

,ih

[.

' '. * &: a- ' *. ' l,

.~

4 t1 T -

((a

- % hw,eh9N.'( l, I'

'iO

.c d

.'[

7

.- [ ' *

.'ed N.

h.

f' < -,.

,p R-.h. n:5.T '

'n*,

- ~..-

4

<~

~ ;[ r

i.. ' % !. ?W. t "g b.

r.

~~

2

.,+

-, 7. n

}

..* Q.. -[ y [q

[

,.i

. ; 5

.D

' %[ f ' ['

~ j,}? [g

.t 3

f.,

4.

.x i..,.

9.... p

,r.-

4. >. t;,-

gy a,

.n.

4 y y z.-.

L.,.

sv?

' %. *. - i 3. V -

4,- -f ".

..9' 3

.-. r

.-',; ; A..... '.

N,,

. s. A.; p

,.' %.... 4.. w

.g

..a

_.,' A

,G, '.

s

. a.3,.

, *... tm s;.

s t

.s. -

.g ~

w a

... A.,

s pe

?

e g

+

,.w

~

,, d..,,:f,..

.2

,T,'.. '.'g'f..

. s *. %, -

.y. 9.. g

'. j:,.,

5 e

1, a

,- m e

,g g.

m.

1 p, p

,u-

...,. 4'

, be,m '

gW

. u - WT..e.y 'w 8

x.:..

-sys a.,' 4.-W... 9 :.,.6 ',N g

E*$

.., i e

s:

..y.2;,3' g M g

,.~.,.g.-

m.

ip' '- l y Y $,,,k' )"Q 3 A.f.3. ",<a.'.'

'..,, '.: f-y _,1-l n

s

%c 4'i.%

,'. 4

'y; a

e -

u*>

s.

,f*'.2

'jt,.

,..;N *,t

• ..,4 s s A.

s

=

.Q. j. ^

'l

+-

.n s :

. +(,

.,,... s, <,

x

_., t.g.,t,

..5

.c...

y s.a n.

. -s.,

K*..... -,

...,.%.s..

...1

> u s:.,7. j.

.e. ",.g-

• b l- -

w

,e a.

..v..

. a

~n.,.

a

+, )a',..:y,..c

.,a...< o.

+

. u. E

~

t.

.u

...z

=..

T." [. a 4.

• Q # [.g

[. 1. - Q. 2. _,. - )%.., <I

• D.

.m

,s.

g, <. '.

. +

- 4, ke y

,.3

...g : - :.

y,

.,5.

=

~'.'

w

( d.

-<,3.-

sg ', w' q,

.k.+

c g

e s..

s Q, 1'

^

3 4

r s p-

<r.

v.;

u 1"' _, e, 4

c

.c.

{I.,.f f h

.' Yrj, j, }%

die 4.'*..

. - a I & k ', ". lmf _. ' -,,

,} 9;, frQ.'.l q.f.fE.',

y i.

~

s.

.. y, m7 k r

-14 ;<1%., -

f..

+

a

.4 p.1,,.; - -

' V,-.. y e g p,jf f ;.a, f..fg,.. -

+

g.-

a..

g

,...e

• ?.

y,

- ; ), ye

', 24 3 i

p. % p,q,.: -

0,

, ;'y ep j. '.

.1 g

e g

g. ; - 3 n-

. w. g%g,' y[ '

w

v. ;, g, g;.

. p:. q., g p..; z. - _,,

e p

a

(

.yh;}.{f n

7 *;.n.m,

~

g

,,h.....[ ' 4 j. ;l ~.

.[ g 3.

.{ _'-

7, [9

. j,

(-

o. k se-% a..;. -.y.. v] g...,, ' j.1 '

./

s *..,

%,, L L 4 -(

~

g

-,. /... s.,7 #..;a.2 n:... -

. 1 e.

+

s

,se

. r

- 1 s

o. y.... -

-.yw t <

e

y.,,, &.. gQ:'>

i..,.

...e n g.-

. 1 - +.- -' '-

y \\. ' ;,ql. -

s

,'%l.

s.

',f.,:., +

.. '. u -[..., y. p: p,'. p#

~

}

. ;l - f... ~, '

. s_.

a 4[_

y y.

,. 1 u

.~. :. L

,1.'

,.l.. ; p(.,t ~.,... c. o 4,.

s y

. v.

.4,

, s,-

,s

.... ~ s,d [...

. W W y.v *

.A +g f,,A..;* *

~.

4

.c A.

43 g

W. l _. '.

5

'.p

. 9;-.

%p.~.s. fW ff j l3.fv. 3.%.le.'6 3

• ? $..'.',

. Y,.

r..

,-u O~

-> N

.')s, I.

.f,.

v

,c %. ~ +,. q. r., y p: - ; ; 5 4.,-g. s 9;.h y+. y.p *y'g ~ J

+

.. e n.

s. <

w

.y ; - *,'

- v; r..,%

.,',ig. s,..

g

;r..

4 : -...e i 4

" 4.n.. c %r f Y:.'..p

, g.. : :[{[' ;. n + c,

rw p..y:.

,p.

7 sy

~

~,.~

-c s

... wo.:,

y j.. ;.' (.

.'s,N '.

}*

(,

. ],j y

~'

, ;; 4 f

(

y

,7 s

.,,.w gt

.,. w

'a,d. g.

. -(.., q.. m j.

,.,g..

..>.W,.,.

e.

, 4. '.,

7. r.,

M..

..?.

.g

- 4. 3., P3 J,

,,p.,s'.,y $,

.,.s_ (, - s ;,. -

2 n

,,v b,

f

,. -.....;. % y t?

s

vt.,

yy 5 s-

~

,.r2 v.

. !: s,.,

.wws'-

.0.

2a, g., :,u..O.,,.f. : w.v

u. w vf. e,.. dnm. u,

.s.; y,.,~ -

~

r

~

e

n. <.,~,

~g wp-a.+:

.+. gag.. m>.,.

r y

s.,

3....

.y

.. g g.

y g g.g..g;by.

y -

qa s

g g.. q N. -

-3,;. *l l.gl gQ

. 4 e

..7...

.- - A % ;.a..? pw.g,.

m-.

.... x

.s

.<z

s.,,;,e

-q, p %..g.

, p".%. s p.

4 W L l ~ lly u. K..%. p,,f.

3,.

's a

.y,.-

p..y;g..

n s -

g-e 91'*?? # W Y h..M:)n;x,m3x, 8:_. ;.. -

,4

.c. w.. %

- +

g.,* c.f.j

,, _ i _ 4... (r-W M

.a C. ? NNO

^"'~#*

s t

i A

P e

P E

C N

D I

X l

D I

'{

1 i

i

.~.

/

C APPENDIX C RESPONSES OF THE TOLEDO EDISON COMPANY TO THE INFORMATION REQUESTED BY THE ATTORNEY GENERAL 1

i N

C-1 Amendment No. 12

Question No. 1 7

State separately'for hydroelectric and thermal generating resources appli-cant's most recent peak load and dependable capacity for the same time period.

State applicant's depen.2ble capacity at time of system peak for each of the next ten (10) years for which information is available.

Identify each new I

unit or resource.

Answer No. 1 The Toledo Edison's system most recent peak load was 939 MW as of 2:00 p.m.,

July 1, 1970. Toledo Edison's dependable capacity for this period is shown on Table 1-1 below. The applicant's dependable capacity at time of system peak through 1976 is listed in Table 1-2.

Information is not available for subsequent years.

Table 1-1 Fet Seasonal Capability:

Thermal 1 003 Hydro 0

a Net Interconnection 70 Total 1 073

\\

j C-2 Amendment No. 12

~

~

Table 1-2 TOLEDO EDISON COMPANY PROJECTED DEPENDABLE CAPACITY IN MW Mich. Pool Total-CAPCO Purchase Purchase Purchase Purchase Dependable Bay Shore Acme (1)

Net Peakers Interlake AEP OVEC Capacity @ Peak l

4 s

1971 623 322 68 h

100 61 1 178

'1972 623 322 90 68 h

100 49 2 '56 1973 623 322 190 68 4

100 49 1.356 1974 623 322 202 90 68 4

100 25 1 h3h 1975 623 322 428 68 h

100 25 1 570 1976.

623 322 596 68 4

100 25 1 738 t

i y

a (1) Allocations from subject unit and other CAPCO units; Sammis #7 on Ohio Edison system, E

Eastlake #5 on Cleveland Electric Illuminating system, and Beaver Valley on Duquesne

[

Light system, and peakers on Ohio Edison and Duquesne systems.

4

-g

Question No. 2 c

State applicant's estimated annual load growth for each of the next tvanty (20) years or for the period applicant utilizes in system planning.

1 i

Answer No. 2 The Toledo Edison Company's annual load growth is projected as shown in Table 2-1.

I Table 2 1 i

E 1970-1971 128 1971-1972 106 1972-1973 86 1973-1974 88 1974-1975 72 1975-1976 97 I

1976-1977 11o 1977-1978 115 1976-1979 114 1979-1980 114 1980-1981 115 1981-1982 116 1982-1983 118 1983-1984 120 1484-1985 124 i

1985-1986 129 1986-1987 135 1987-1988 14o 1988-1989 145 1989-1990 153 t

s-C4 Amendment No. 12

Question No. 3

(

State estimated annual load growth of companies or pools upon which ti.c economic justification of the subject unit is based for each of the next twenty (20) years or for the period applicant utilizes in system planning.

Answer No. 3 The Toledo Edison Compaly is a member of the power pool known as CAPCO.

Other members of the CAPCO Pool are The Cleveland Electric Illuminating Company, Duquense Light Company and Ohio Edison Company along with its subsidary, Pennsylvania Power Company. The CAPC0 at-nual MW load growth is projected as shown in Table 3-1.

The 1971 forecast peak load for CAPCO is 9023 MW.

Table 3-1 E

1971-1972 598 1972-1973 602 1973-1974 662 1974-1975 617 1975-1976 671 1976-1977 697 1977-1978 720 15778-197 9 760 1979-1980 774 1980-1981 865 1981-1982 903 1982-1983 962 1983-1984 1016 1984-1985 1072 1985-1986 1130 1986-1987 1193 1987-1988 1258 1988-1989 1327 1989-1990 1400 1990-1991 1479

\\

C-5 Amendment No. 12

~

Question No. k i

For the year the subject unit vould first come on the line, state estimated annual load growth of any coordinating group or pool of which the applicant is a member (other than the coordinating group or pool referred to in the applicant's response to Item 3) which has generating and/or transmission planning functions. Identify each company or pool member whose leads are,

indicated in the response hereto.

Answer No,. k The subject unit (Davis-Besse #1) is scheduled for commercial operation as of December 1, 19'Th. Toledo Edison is not a member of any coordinating group or pool which has ge'nerating and/or transmission planni,ng functions other than the CAPCO Pool referred to in the answer to Question No. 3 C-6' A=endment No. 12

Question No. 5 State applicant's minimum installed reserve criterion (as a percentage of load) g for the period when the subject unit will first come on line. If applicant shares reserves with other systems, identify the other systems and provide minimum installed reserve criterion (as a percentage of lead) y by contracting parties for the period when the preposed unit will first co=e on line.

~

g Indicate whether loads other than peak loads are considered.

Answer No. 5 Toledo Edison is a member of the CAPCO Pool described in the answer to Question No. 3 The CAPCO Pool compaines, including Toledo Edison, use a probability method for determining installed generation reserve, which

~

considers in addition to risk of forced outage, projected monthly peak loads, planned maintenance random outages of generation, and possible 4

lead forecast errors. The CAPCO companies have adopted a standard for planning generating reserves such that the projected frequency of use of' interconnection to non-CAPCO systems and the dependence on outside generating resources vill not exceed one day per calendar year for carrying firm load. The method used for the CAPC0 Pool for this purpose is described in a paper entitled "The CAPCO Group Probability Technique for Timing Capacity Additions and Allocation of a Capacity Responsibility" by Messrs. Firestone, Monteith and Masters which was published in IEEE Transactions on Power Apparatus

."d Systems, Volume PAS-88, Nu=ber 8, August 1969, and is attached as Exhibit A.

For the reasons stated in said paper, the CAPCO companies including Toledo

?

Edison do not base their capacity planning on a reserve criterion expressed

(

as a percentage of load. However, application of the foregoing CAPCO and C-7 Amendment No. 12

Toledo Liison criterion and method would result in reserves which bear the following percentage relatic iships to anticipated loads:

TECo.

CAPCO Reserves Reserves I=ediately Before Davis-Eesse 16.3%

21.2%

I=ediately After Davis-Besse 22.8%

25 2%

i

\\

C-8 Amendment No. 12

Question No. 6 Describe methods used as a basis to establish, or as a guide in estab-lishingthecriteriaforapplicantsand/orapplicantspool'smainamount of installed reserves; e.g., (A) single largest unit down, (B) probability

• i methods, such as loss of load one day in twenty (20) years, loss of capa-city once in five (5) years, (c) other methods and/or (D) judgment. List conditions, other than risk of forced outage, that enter into the deter-mination.

Answer No. 6 See answer to Question No. 5 J

\\

C-9 Amendment No.12

Question No. 7 Indicate whether applicant's system interconnections are credited explicitly or implicitly in establishing applicant's installed reserte.

Answer No. 7 In establishing its installed reserte applicant does not credit intercon-nections with other systems, either explicitly or implicitly. Rather, the CAPCO companies periodically review their interconnections with systems, which are not me:roers of CAPCO to determine the adequacy of such inter-connections for the purpose of justifying the criterion of reliance upon resources outside CAPC0 not more than one day per year. Generation and associated transmission facilities for the CAPCO members are planned on the basis of the requirements of the pool as a single system, and accord-

,ingly, the members do not establish their installed reserves independently.

4 s

C-10 Amendment No. 12 4..

_,w.,

Question No. 8

')

List rights to receive emergency power and obligations to deliver emergency power, rights or obligations to receive or deliver deficiency power or unit power, or other coordinating arrangements, by reference to applicant's Fed-eral Power Commission (FPC) rate schedules (i.e., ABC Power & Light Co.,

FPC Rate Schedule No.15 including Supplement 1-5) lj, and also by reference to applicant's state commission filings. Where documents are not on file with the FPC, supply copies, or where not reduced to writing, describe arrangements. Identify for each such arrangement the participating parties other than applicant. Provide one line electrical and -:.ographic diagrams of coordinatin6 groups or power pools (with generation or transmission plan-ning functions) of which applicant's generation and transmission facilities constitute a part.

ljListseparatelyandidentifycertificatesofconcurrence.

Answer No. 8 Table 8-1 lists the Toledo Edison rights to receive or deliver power under filed contracts.

A contract with a non-utility, Interlake, Incorporated (formerly the Interlake Iron Corporation), has not been filed and a copy is attached as a part of Exhibit "B".

Toledo Edison is a party to a CAPC0 Memorandum of Understanding, dated September 14, 1907, together with Cleveland Electric Illuminating Company, Duquesne Light Company, Ohio Edison Company and Pennsylvania Power Company.

A copy of this document is attached as a part of Exhibit "B".

A C Amendment No. 12

.e

An unfiled contract among the CAFC0 companies, dated May 29, 1969, is attached as a part of Exhibit "B".

- i The attached one line electrical and geographic diagram (Exhibit "C") of the CAPCO cystems shows the generating and transmission facilities of this group installed and planned through 1974. CAPCO has generation and transmission planning functions and Davis-Besse will be the fourth generating unit to be installed by this group.

f i'

C-12 Amendment No. 12

e-.

T Abt E 8-1 I

I P

i

'ILI EIO t_DINN FIID IWr H CONTFRIS Ce r ti fic ate Othe r Bate or Concurrence Hate khedule of Concurrence Iserr*ney Fcwer Coordinating Other Forttes Filed By Nete r Date Deliver heceive Ar rar gement s Ohio Valley Electric GV1C 111C0, 2kl50 1

1(1)

Corporation, et 61 (6)

Ld.#1, 31029 Mod. f 2, % % 6 Ed,.# 3, 366 36 OVEC FIC ho. IB and Sup;.l ements k, 5, and 6.

Toledo Edison FFC No. 20 1/1/71 Michigan l'ool Consumers FPC No. 22 and X

X 1(2)

Consumers Power Power Sugplements Detroit Edison 1, 2, 3, and b Toledo Edison FPC No b 5/21/69 buckeye Power, Inc.,

Ohio Power FIC No. TO X

1(3) et al (7)

Toledo Edison FIC so. 2 6/2k/68 Ohio EJiscn C pany Ohio Edison IUCO, 3%71 X

X 1(k)

Ohio Edison FPC No. 68 Toledo Edison FFC %. 3 10/29/68 Ohio Power Company Ohio Power FPC No. 35, 1

1 3(5) l Supplements 1, 2, 3. k, 5, and 6, and Exhibit "A" Toledo Edison FPC 1.o. I 10/17/ 4 i

Notes:

l (1) Heceive Surplus Power.

(2) Short Tera; Maintenance Coordir.ation, Interchange Power (includes Econoniy and Non-Displacement Power).

(3) Iower Delivery.

On-Peak and Of f-0eak Interchange Power Econorg Interchange Power Short Term. Fire Power.

(k) j (5) Firm Power, Interim Power, Maintenance Coordination, Interchange Power (Irseludes Economy ed Non-Displacement Power).

(6) The following companies are the other participating parties:

,)

A;palachian Power Company Monungahelm Power Compariy Ci ncinna ti Gas & El+ctric Company Ohio Edison Company Columbus & Southern Ohio Power Company Layton Power & Light Company Pennsylvania Power Company Indiaria & Michigan Electric Company Potomac Edison Company i

Eentucky Utilities Southern Indiana Gas & Electric louisville Gas & Electric West Penn Power Company (T) The rollowing companies are the other participating par *.ies:

Ohio Power Company Dayton lower & Light Company Cincinnati Gas & Electric Company Monongahela Pt.wer Compar /

Columbua & Southern Amendment No. 12 C-13

Question No. 9 List non-affiliated 1/ electric utility systems with peak loads smaller than applicant's which serve either at wholesale or at retail adjacent to areas served by applicant. Provide a geogxsphic one line diagram of applicant's generation and transmission facilities (including sub-transmission), indicating the location of adjacent systems and as to such systems indicate (if available) their load, their annual load growth, their generating capacity, their largest thermal generating unit size, and their minimum reserve criteria.

~

1/ Systems not in the same holding company system.

Answer No. 9 Table 9-1 shows data on all non-affiliated electric utility systems with peak de= ands smaller than the Toledo Edison's which serve at either who'lesale or retail adjacent to areas served by the Applicant. Exhibit "D" is a geographic one line diagram of the Toledo Edison generation and transmission facilities. This exhibit also shows the location of the adjacent systems listed in Table 9-1.

Only two of the systems listed in Table 9-1 have generation in operation and the Toledo Edison does not know what criteria is used to determine their minimum reserve.

1 1

C-lh Amendment No. 12

TABLE 9-1 NON-AFFILIATED ELECTRIC UTILITY SYSTEMS WITH PEAK DEMANDS LESS THAN TOLEDO EDISON' Toledo Edison Peak Estimated Generating Largest FPC Rate 1970 Annual Load Capacity Gen. Unit Schedule Load (KW)

Growth (MW)

(MW)

Number Systa=s Purchasing all of their Bulk Power Supply from Toledo Edison Company Bowling Green, Ohio 27 900 13%

0 0

5 Bradner, Ohio 728 N.A.

0 0

6 Custar, Ohio 536 U.A.

0 0

8 Edgerton, Ohio 2 016 5.0%

0 0

9 Elmore, Ohio 936 h.0%

0 0

10 Genoa, Ohio 1 356 3.5%

0 0

11 Haskins, Ohio 315 N.A.

0 0

12 Liberty Center, Ohio 800 h.0%

0 0

13 Montpelier, Ohio h 176 N.A.

N.A.(1)

N.A.

Ik Oak Harbor, Ohio 1 956 1.0%

0 0

16 Pemberville, Ohio 9h8 6.0%

0 0

17 Pioneer, Ohio 89h N.A.

0 0

18 Woodville, Ohio 1 308 5.0%

0 0

19 Systems Purchasing part of their Bulk Power Supply from Toledo Edison Company Bryan, Ohio N.A.

N.A.

2h 000 16 000 7

Napoleon, Ohio 12 800 N.A.

22 500 11 500 15 Systems Purchasing none of their Bulk Power Supply from Toledo Edison Company Tontogany, Ohio (2)

N.A.

U.A.

0 0

Hancock-Wood REC (3)

U.A.

N.A.

0 0

Southeastern Mich. REC (3) 1 388 h.0%

0 0

Tri-County REC (3) 6 173 N.A.

0 0

Northwestern REC (3)

N.A.

N.A.

0 0

North Central REC (3)

N.A.

N.A.

0 0

(1) All Generation is in Cold Reserve.

(2) Served by Bowling Green Municipal System.

(3) Served by Buckeye Power, Inc.

r

's C-15 Amendment No. 12

r Question No. 10

(

List separately those systems in Item 9 which purchase from applicant (a) all bulk power supply and (b) systems which purchase partial bulk power supply requirements. Where information is available to applicant, identify those Item 9 systems purchasing part or all of their bulk power supply requirements from suppliers other than applicant.

Answer No.10 Table 9-1 shows the breakdown of adjacent utility systems that purchase all or part of their bulk power requirements from the Toledo Edison system or all of their power from other systems.

f i

C-16 Amendment No. 12 l

Question No. 11 Str.te as to all power generated and soli by applicant the most recent average cost of bulk power supply experienced by applicant (a) at site of generating facilities, (b) at the delivery points from the primary transmission (back-bone) system, (c) at delivery points from the secondary transmission system, and (d) at delivery points from the distribution system, in tems of dollars per kilowatt per year, in mills per kilowatt-hour, and in both the kilowatt costs and kilowatt hour costs divided by the kilowatt hours. If wholesale sales are made at varying voltages, indicate average cost at each voltage.

Answer No.11 The most recent average unit costs of wholesale power sold by applicant at various delivery points is outlined in Table 11-1.

Costs shown are based on revenues and sales during the year 1970.

\\-

C-17 4

3

-.....-7 4

(

Table 11-1 Mills Dollars Dollars Mills Per KWH Per KW Per KVA Per KWH For Demand Per Year Per Year For Energy And Energy At Site of Generating Facilities l

At Primary Transmission

$15.60 7.6 11 3 (345,000 and 138,000 Volts combined)

$30.72(1) k.2(1) 10.0 At Secondary Transmission 69,000 Vol.ts 35.6h(1) 2 9(1) 94 21.00(1) 7.o(1) 11.4 34,500 Volts At Distribution 31 32 73 13 1 12,k70 Volts 30.60 72 13 3 31.08 72 13 2 7,2co. Volts 4,16o Volts 31.2o 73 12 9 2,400 Volts 33 64 7.2 14.o Note:

(1) Variations in the costs between KVA & KWH components are due to differing quancities of energy that.are included in the capacity charge portion of i

the rate schedules of the various individual purchasers.

4 C-18 Amendment No. 12

. ~,

Question No. 12 f'

State (a) for generating facilities and (b) for transmission subdivided by voltage classes, the most recent estimated cost of the applicant's bulk power supply expansion program of which the subject unit is a part in terms of dollars per kilowatt per year, in mills per kilowatt hour and in both the kilowatt costs and kilowatt hour costs divided by the kilowatt hours.

Answer No. 12 (a) Under the CAPC0 Pool arrangement, The Toledo Edison Company is co=mitted to partial ownership of the Davis-Besse #1, 872 W nuclear generating unit and the Mansfield #2, 880 MW coal fired generating unit.

The figures presented in Table 12-1 below are based on most recent cost estimates, a fixed charge rate of 18/o and an approximately 80% capacity use factor.

TABLE 12-1

'IDLEDO EDISCN GENERATION INVES'I?ENT UNDER CAPCO POOL ARRANGDIENT UNIT Davis-Besse Mansfield #2

$/KW/Yr.

- Fixed Charge

$55 30

$36.90 Mills 53 - Fixed Charge 8.04 5 26 Mills KWH - Fuel, 0 & M (1) 2.15 Not Available

'lills KWH - Total

$10.19 Not Available (1) Cost during first 12 months of Operation.

(b) The trancmission provided for by the CAPC0 Pool arrangement will be integrated into the bulk power systems of the pool members, all of which will serve the present generation and the generation expansion program.

We have no experience nor basis for determining the cost of the transmission

(

on either a per KW or a per 53 basis.

C-19 Amendment No. 12

t Question No. 13 r

List and describe all requests for interconnection and/or coordination and for purchases or sales of coordinating power and energy from adjacent utilities listed in Item 9 since 1960 and state applicant's response thereto. List and describe all requests for supply of full or partial requirements of bulk power for the same period and state applicant's response thereto.

Answer No. 13 Toledo Edison has not denied any requests from such utilities. Table 13-1 lists each time that the Bryan, Montpelier and Napoleon electric systems have requested emergency power from the Toledo Edison system since January 1,1960 and the amounts requested. Bryan and Napoleon presently generate part of their power but are reb.aarly interconnected with Toledo Edison and received required energy even without request.

Montpelier generated part of its power requirements up to May 1%6, and since then their generation has been shut down in cold stand-by and i

Toledo Edison has been supplying all of their ren '.rements. Toledo Edison has and will continue to serve all of the emergency power required by these municipal systems. In addition, the Toledo Edison has accepted a request of Hancock-Wood REC for an additional delivery point under the Buckeye Power agreement and is discussing a similar request of Northwest Electric Cooperative.

I i

4 L

S C-20 Amendment No. 12 t~

4 Table 13-1 i

(

I Emergency Power Sales to Municipal Electric Systems l

Above Normal Date of Requested and

., 3 Name of Emergency Number of Delivered Municipality System Month / Year Days (KVA)

Bryan Feb. 1960 1

300 Apr. 1960 1

150 Sept. 1960 1

720 oct. 1960 1

240 Nov. 1960 3

480 Dec.

1960 1

90 Dec. 1960 1

120 Dec. 1960 1

600 Sept. 1962 2

780 oct. 1963 1

900 Dec. 1963 1

204o Jan.

1964 1

840 Feb. 1964 1

840 Feb. 1964 5

960 June 1964 1

1800 June 1964 1

840 July 1964 1

2460 oct. 1964 1

1560 Nov. 1964 1

2640 Nov. 1964 1

300 Jan.

1965 1

240 Apr. 1965 1

336o

+

Apr.

1965 1

2100 Apr. 1965 1

2340 Apr. 1965 1

2580 Sept. 1965 3

1200 oct. 1965 1

378o Dec.

1965 2

h140 Jan.

1966 1

3000 Jan. 1966 2

2280 Jan. 1966 4

7440 i

i Apr. 1966 30 8940 Jan.

1967-ik 26ho l

Mar. 1967 1

1580 Mar. 1967 1

1140 July 1967 31 558o Aug. 1967 1

1440 Nov. 1967 1

780 Dec. 1967 1

840 Feb. 1%8 1

NA Mar. 1968 1

1620 i

C-21 Amendment No. 12

~

u -.

.2--

.. =.

.. ~ -

r Table 13-1 (cont.)

e Emergency Power Sales to Municipal Electric Systems Above Normal Date of Requested and Name of Emergency Number of Delivered j

Municipality System Month / Year Days (EVA)

Montpelier June 1960 1

240 Aug.

1960 1

390 Mar.

1961 1

870 Dac.

1963 2

990 Napoleon Aug. 1962 1

20ho Aug. 1962 1

1320 Aug. 1962 1

24o Aug. 1962 1

1680 Aug. 1962 1

3000 oct. 1962 1

180 June 1963 1

800 July 1963 20 2280 Aug. 1963 1

2420 Apr.

1964 1

680 May 1964 1

800

(

June 1964 20 2720 July 1964 2

1500 Feb. 1965 9

3240 May 1965 10 2840 June 1965 7

188o May 1966 16 3120 Aug.

1966 5

960 Nov.

1966 4

2460 Jan.

1967 lo 2760 June 1967 1

840 May 1968 1

2580 Nov. 1968 1

NA 6

June s19 9 23 38h0 July 1969 25 2640 Nov.

1969 1

4560

. Tan.

1970 6

3200 Mar. 1970 8

2900 Apr.

1970 15 5300 June 1970 4

3860 Feb. 1971 2

h20

-s-4 C-22 Amendment No. 12-

r Question No. Ik

(

List (a) agreements to which applicant is a party (reproducing relevant l

paragraphs) and (b) state laws (supply citations only), which restrict or preclude coordination by, with between, or among any electric utilities or systems indentified in applicant's response to Items 8 and 9 List (a) agreements to which the applicant is a party (reprocuding relevant paragraphs) and (b) state laws (supply citations only) which restrict or preclude substitution of service or establishment of service of full or partial bulk power supply requirements by an electric utility other than applicant to systems identified in Items 8 and 9 Where the contract provision appears in contracts or rate schedules on file with a federal agency, identify each in the same form as in previous responses. Where the contract has not been filed with a federal agency, a copy should be supplied unless it has teen supplied pursuant to.another item hereto.

Where it is not in writing, it should be described.

Answer No. Ik There are no restrictions on coordination in the broad sense used in the Definitionc preceding the Items, in any agreement to which Toledo Edison is a party. The CApCO pool agreements as expected to be written vill have no effect on existing contracts with other systems with respect to emergency, maintenance and other forms of power. The CApCO pool when operative vill, as is inherent in any closely organized pool, provide that obligations to pool members will have priority over service to others except as to existing contracts.

As indicated in reply to Item 9, 13 of the municipal power supply contracts are requirements contracts, but they are for limited periods, terminable from 1971 to 1976. Ohio Revised' Code section 4905 261 may preclude service C-23 Amendment No. 12

to present :unicipal wholesale customers by others than Toledo Edison 1

except after an order of the Public Utilities Commission of Ohio or after an interval of 90 days of no service by the present supplier.

Section 6, Article VIII of the Constitution of Ohio, and Section 6, Article XVIII of the Constitution of Ohio could so restrict or preclude such coordination by, and the furnishing of bulk power supply requirements by, the municipal electric syste s referred to in answers to Question 9 t

It is understood that the IEC's listed in answer to Item 9 are supplied their requirements by Buckeye Power, Inc. under contract extending in excess of 30 years. The Power Delivery Agreement among Buckeye Power, Inc., Ohio Power, Toledo Edison and others, provides that there shall not be included in power to be delivered for Buckeye any power furnished by I

a B1:keye member in violation of said Code Section. This was a matter s

of discussion with the Antitrust Division by Ohio Power prior to execution of the Agreement.

i 1

r f

1 i

I

+

i i

i l

l C-2h Amendment No. 12 l

7-Question No. 15 State, at point of delivery, average future costs of power purchased from applicant to adjacent systems identified in applicant's response to Item 9 in terms of dollars / month /kw for capacity, = ills /kwh for energy and mills /

kwh for both power and energy at purchaser's present load factor (a) at present load, (b) at 50% increase over present lead, (c) at 100% increase over present load, and (d) at 200% increase over present load.

(All costs should be determined under present rate schedules. ) Where sales are made

~

under contracts or rate schedules on file with a Federal agency and not included in the response to Item 9, identify each in the same form as in previous responses. Where the contract has not been filed with a Federal agency, a copy should be supplied.

Ansv-r No. 15 Avera6e costs of power purchased from applicant by adjacent systems identi-fled in Item 9 are listed in Tables 15-1, 15-2, 15-3, and 15-h.

The tables outline the unit costs to each adjacent system at four different load levels. All costs are based on present rate schedules, 1970 fuel costs, and 1970 load factors.

i I

r l

l C-25 Amendment No. 12

TABLE 15-1 AVERAGE' COST OF SALES'TO ADJACENT SYSTEMS AT PRESENT LOAD Dollars Mills Mills Per Month Per IG!H Per KWH Per ETA For.

For For System' Capacity Energy Demand & Energy

- Bowling Green'

$3.06 27 9.2 Bradner-2.88 T.3 13 3 Bryan-1.65 7.0 11.6 Custar.

2.72 7.1 16.0 Edgerton 2.29 72 13.0 Elmore 2.55 73 13.0 Genoa 2.h8 7.3 12.5 Haskins 3.0h 7.2 1h.7 Liberty Center 2.82 7.2 1h.0 Montpelier 1.68 6.7 10.6 i

Napoleon 1.65 79 13.5 Cak Harbor 2.59 T.3 -

12.9

- Pemberville 2.56 7.3 12.9 Pione'er 2.55 7.2 13.3 Woodville 2.51 7.3 12.7 t

C-26 Amendment No. 12

4' O_

O TABLE 15-2 AVERAGE COST OF SALES TO ADJACENT SYSTEMS AT 50% INCREASE OVER PRESEI;T LOAD i

Dollars Mills Mills Per Month Per KWH Per KWH Per IGTA For For For System Capacity Energy Demand & Energ>-

Bowling Green

$3.03 2.7 9.1 Bradner 2.79 7.3 13.1 Bryan 1.65 70 11.5

~

Custar 2.65 7.2 15 9 Edgerton 2.18 7.2 12.7 Elmore 2.h6 73 12.8 Genoa 2.32 7.3 12.2 Haskina 2.95 7.2 1h.5 Liberty Center 2.75 7.2 13.8 Montpelier 1.67 6.7 10.6 Ilapoleon -

1.65 7.h 13.0 -

Oak Harbor 2.h7 7.3-12.6 Pemberville 2.h8 7.3 12.7 Pione'er 2.h7 7.2 13.1 Woodville

-2 38 7.3 12.h-t f

b C-27 Amendment No. 12

TABLE 15-3 AVERAGE COST OF SALES TO ADJACENT SYSTD4S AT 100% INCREASE OVER PRESENT LOAD Dollars Mills Mills Per Month Per KWH Per KWH Per KVA For For For System Capacity Energy Demand & Energy Bowling Green

$3.01 2.7 9.1 Bradner 2.75 7.3 13.0 Bryan 1.65 70 11.5 Cus tar.

2.60 T2 15.7 Edgerton 2.11 7.2 12 5 Elmore 2.35 7.3 12.5 Genoa 2.2h 7.3 12.0 Haskins 2.90 7.2 14.h Liberty Center 2.63 7.2 13.5 Montpelier 1.67 6.7 10.5 Napoleon 1.65 7.h 13.0 Cak Harbor 2.39 7.3 12.5 Pemberville 2 36 73 12.h Pioneer 2.35 7.2 12.8 Woodville 2.29 7.3 12.2 1

l C-28 Amendment Ho. 12

TABLE 15 h AVERAGE COST OF SALES TO ADJACENT SYSTDIS AT 200% INCREASE OVER PRESENT LOAD Dollars Mills Mills Per Month Per KWH Per KWH Per KVA For For Fcr System Capacity Energy-Demand & Enargy Bowling Green

$3.00 2.7 9.1 Bradner 2.59 7.3 12.7 Bryan 1.65 7.0 11.5 Custar 2.52 7.2 15.h Edgerton 2.0h 7.2 12.3 Elmore 2.22 7.3 12.3 Genoa 2.13 7.3 11.7 Haskins 2.81 72 14.1 Liberty Center 2.50 7.2 13.2 Montpelier 1.66 6.7 10.5 Napoleon 1.65 7.h 13.0 Oak Harbor 2.31 7.3 -

12.3 Pemberville 2.2h 7.3 12.2 Pioneer 2.23 72 12.5 Woodville 2.17 7.3 12.0 C-29 Amendment No. 12

Question No. 16 State whether applicant has prepared, caused to be prepared, or received en-gineering studies for generation and transmission expansion programs which l

include loads of each system in Item 9 Answer No. 16 All engineering studies conducted by or for Toledo Edison on its future generation and transmission facilities have included the projected future demands on the Toledo Edison system that is presently served as listed in Table 9-1.

1 i

h 4

i-

)

i C-30 Amendment No. 12 i

Question Nq 17 List adjacent systems to which applicant has offered to sponsor or to con-duct system surveys in contemplation of an offer by applicant to purchase, merge or consolidate with said adjacent system, subsequent to January 1, 1960.

Answer No. 17 In 1968, Toledo Edison and seven other electric utilities (Cincinnati Gas and Electric Company and its subsidiary, Union Light, Heat and Power Company, Cleveland Electric Illuminating Company, Dayton Power and Light Company, Duquesne Light Company and Ohio Edison Company and its subsidiary, Pennsyl-vania Power Company) announced studies to determine the feasibility of forming a holding company system. These studies now have been suspended pending the outcome of proceedings currently before the Security and Exchange Co==ission involving other possible affiliations between electric utility systems.

Table 17-1 lists each time that Toledo Edison has made a written or publicly announced proposal to purchase a municipal electric system since January 1, 1960. In each case listed in Table 17-1, a system survey was conducted by Toledo Edison prior to the proposal date. In addition to the offers and pro-posals listed in Table 17-1, the Toledo Edison has made other informal offers to make system surveys which might lead to the purchase of the other =unicipal electric syste=s listed in Table 9-1.

C-31 Amendment No. 12

TABLE 17-1 WRITTEN OR PUBLICLY ANNOUNCED PROPOSALS TO PURCHASE MUNICIPAL ELECTRIC SYSTEMS Date Bryan, Ohio 1968 Clyde, Ohio July 196h Edgerton, Ohio November 1961 Edgerton, Ohio July 1965 Liberty Center, Ohio June '.961 Liberty Center, Ohio May 1963 Napoleon, Ohio July 1965 Pioneer, Ohio

, July 196h Stryker, Ohio March 1962 Waterville, Ohio July 1961 Waterville, Ohio July 1967 l

C-32 Amendment No. 12

f Question No. 18 List applicant's offers or proposals to purchase, merge or consolidate with electric utilities, subsequent to January 1, 1960.

Answer No. 18 See Answer to Question No. 17 l

C-33 Amendment No. 12

Question No. 19 i

-List all acquisitions of or mergers or consolidations with electric utilities by applicant, subsequent to January 1,1960, including:

a.

The -name and principal place of business of the system prior to the acquisition, merge or consolidation; b.

The date the acquisition merger or consolidation was consu=ated; c.

Gross annual revenue and most recent peak load, dependable capacity and the largest thermal generating unit of the system prior to the date of consumation.

Answer No. 19 Table 19-1 lists all acquisitions by Toledo Edison Company since January 1, 1960. Toledo Edison was involved in no mergers or consolidations since 1960.

6' 4

I l

l-

'I.,

l l.

l ::

C-3h Amendment No. 12 1

~

r

+

r TABLE 19-1 ACQUISITIONS BY TOLEDO EDISON 3

(1)

A.

Stryker Municipal Electric System Stryker, Ohio B.

Acquisition Date - April 5, 1963 C.

Revenue

$ T1,551 in 1961 Peak T50 KW in 1960 Capacity 1,348 KW at Purchase Largest Unit 560 KW at Purchase (2)

A.

Clyde Municipal Electric System Clyde, Ohio B.

Acquisition Date - July 1, 1965 C.

Revenue

$258,500 in 1963 Peak 2,400 KW in 1963 Capacity h,8h0 KW at Purchase Largest Unit 1,h20 KW at Purghase (3)

A.

Waterville Municipal Electric System Waterville, Ohio B.

Acquisition Date - August 26, 1968 C.

Revenue

$178,380 in 1966 Peak 1,600 KW in 1966 Capacity 3,h96 KW at Purchase Largest Unit 1,h00 KW at Purchase C-35 A=endment No. 12

~

o EXHIBIT "A" THE CAPCO GROUP PROBABILITY TECETIQUE FOR TIMING CAPACITY ADDITIONS AND ALLOCATION OF A CAPACITY RESPONSIBILITY BY MESSRS. FIRESTONE, MONTEITH AND MASTERS IEEE TRANSACTIONS ON POWER APPARATUS AND SYSTEMS VOLUME PAS-88 NUMBER 8

.JGUST 1969 Amendment No. 12

j in nxc TMANstc7:oNs oX PoWWE APPAnATUs AND SYart.W, voL. PAS-83, NO. 8, AUGUST l969 The CAPCO Group Probability Technique for Ti ing Capacity Additions and Allocation of 1

0 0

?f I ThI Capacity Responsibility awa "ONE. sexiori sir 3tata, iste, ALEXANDER H..TIONTEITH, SENIOR atDIDER, IEEE, AND WILLI AM D.. ! ASTERS, stNtoa itsstntR, tres a

g[

g T

w Abstract-This paper presents an extension in the use of prob-ysis of the econornics of alternative generating capacity plans are ability techniques for analyzing a system's generation reserve well know n. l*3ing widely accepted methods, sich as the so-called position. A probabilistic capacity modelis merged with a load model present worth of future revenue requirements cpproach, the to develop the expected frequency distribution of daily capacity financial impact of various alternates involving acseleration or margins; an analysis of the computed capacity margins leads to the delay of *apacity additions, unit size, or unit type enn he analyzed direct determination of a system's dependence upon and contribu-in meaningful terms. Such economic analysis will nearly always tion to a total generstmg reserve situation as a member of a coor-dinating group. This technique provides the necessary data upon producertsults favoringdelay in me.llation of capacity *nd tend-which judgment and decision can be based in comparing alternate ing to favor selection of 'a.rge components. This latter factor is the capacity expansion plans, timing capacity additions, or allocating so-called economy of scale ef'ect. Both of these economic factors the capacity responsibility among members of a coordinating group. produce preuures to adopt capacity expansion plans that reduce overcil n :iability. Hence, economic analysis alone is not sufficient to produce satisfactory generatmg capacity plans. The purpose of Bacxcnot so owning generating capacity is to fullfill the energy needs of the customer +, and measurement of the ability to meet these needs Tutditie serving northern Ohio and western Pennsylvama.

IIE CAPCO group coneists of five m.ve-tor-owned electric cannot be ignored.

The current accelerated trend within the industry toward They are: the Cleveland Electne Illummatmg Company' coordination or pooling of resources on an intersystem basis in Duquesne Light Company, Ohio Edisory Comp:.ay, Pennsylvama order to achieve benefits in reliability, economy, or both, requires Power Con.pany, and the Toledo Edmon Company.These com-that a methodology be developed by which the relative reliability panley now erve approximately two milhon customers having a of systems can be compared and evaluated. no, it is essential comomed had of approximately 7 000 000 kW withm a 14 000-that this measurement of individual system reliability be carried square-n ile area. The s., stems of the five companies have been out with a tool that is accurate and uniform in its evaluation of mterconnected with each other as well as with neighbonng the diver e practices that exist among systems.

utilitica for nanny years. In addition, mformal coordinated opera-In a conventional pooling arrangement, the ceonomic benefits tion has esi ted among the companics and with other compames of shared generation reserve are realized. Of course, all the com-m the area for many years.

ponent systems must attain a position of equity with respect The purpo-e cf the group is to coordinate the m.stallation of to the re ponsibility for overall generating reserves. This equity g;enerating and transmission capacityon the systems of theparties

& achieved only if individual systems' contributions to the m order to enable each party, on an equitable basis, to obtain group's reliability (with respect to generating capacity) bear an increased reliability and greater economy. (Ohio Ed,ison Cori-a propriate relation to their respective reliability benefits.

pany ar.d its sub id, ry Pennsylvama Power are onsidered a u

Determination of this equity can be made ody if the tools are ta I h ing procedures to fulfill the stated objectives, it has available for measuring the relative contributions and benefits I

m pmW ad acM wa&n. In a #ng amngemen, R been neceuare to develop methods for determining when capacity also becomes necessary to establish rules or guidelines by which additions are required by the group, an) for assigning capacity the determination will be made to add capacity to the pool.

responsibihty equitably among the parties. This paper will dis-Therefore, methodology for objective analysis of the pool capac-cuss the methods that have been developed.

ity situation is essential.

Imoot cnox Smjl rly, the establishment of a coordination group whose sole objective is the assurance of reliability requires a measurement of Economics. and reliability are the two fundamental considera-the relative reliability of its members. In this case, the objective tions potaining to the planning of the amount, type, and timing is to establish a minimum ieliability level to be maintained by of future generating capacity additions. Techniques for the anal-each member, a&crence to u hich will assure an adequate overall level of reliability for the group. Once again, equity among mem.

Paper b cP 693-PWTt, recommended and a bers with respect to capacity re-pon>ibility is vital. In order to System E%.ecring Committee..f the IEEE hproved by the Power attain this equity among the members, the min ower Group for pre-sentation at the IEEE Summer Pomer 3tecting. Chicago, Ill..made avadJune responsibility for each member is he>t defined such that his c 22-29, listB. Alanu cript submitted 3 fay 27,1964; able for printing November I,19t)S.

tribution to the group's reliability is in proportion to h.ispote.oal L. Firestone and A. IL Stonteith are with the Ohio Edison Com. benefits. Obviou>ly, the foregoing is possible only if appro-is with the Cleveland E!cetric illuminating Com. priate tools are available for measuring contributions and

,'. I e pany,17eveland, Ohio 44t01, benefits.

I rixtoxe et al.: c. reo caot e raosar:Lirr tocissigtm 1175 Reliability, as the term is used here in regard to the planning the normal rating of installed generating capacity, adju-ted for or evaluation of generating capacity means, broadly, the ability various limitations, plus purchases of firm power fmm other of a system of generating capacity resources to satisfy the load utilities,le3s outages both planned and forced.

I requirements placed on them. There are many factors that in-I~ sing probability arithmetic, it is possible to calculate for a fluence this ability. The hour-by-hour scheduli,g and loading of period, such as a year, the expected frequency of occurrence of resources, although of vital importance to customer service, are all possible daily capacity margin 4. It is this espected frequency not considered in the following discussiou.

distribution of capacity margios that provides the basis for re-This approach to the analysis of generating capacity reserve serve analysis. One of the major advantages of this approach is provides a sound basis for the determination of the timing of tha* the event calculated for analyris actually occurs daily, capacity additions as well as for allocation of capacity responsi-eaabling a comparison of actual system performance with the bility among members of a pool or coordination group. The ap-calculated expectations.

proach as used by the CAPCO group is based primarily on tools It should be noted that,if the deductions from installed capac-and methods developed by the Cleveland Electric Illuminating ity are large enough (u<ually a<sociated with multiple forced Company that were expanded and supplemented by the group.

outages), a negative margin can result. The existence of a nega-It should be mentioned in passing that this approach is also tive margin does not nece<sarily imply loss of load, since supple-extremely useful in evaluating the impact upon reliability of mental resources, such as emergency support from neighboring such factors as unit size, unit outage rate, maintenance outage systems, may be sufficient to cover the indicated deficiency. A time; and scheduling, load factor, snd load forecast error or discussion of the analysis of negative capacity margina (capacity delay of capseny in service date.

deficiencies) can be found in [1].

Et.ninTs or Loro/CreActry Sirt:ATIoNs CAtfr!aTIox or THc Facoccxcr Distanat:Trox r Creacm MAa xxs From the standpoint of reserve capacity analysis, the elements that influence a system's ability to supply its load fall into two This section discusses some of the practical considerations in-general categories: load and capacity. In addition to the annual volved in calculation of the expected frequency distribution of peak load, the !oad characteristics throughout the remaining capacity margins. The considerations affecting the mode of repre-hours of the year are important, since a system must operate sentation of the vanous elements involved in making pmjections securely all year lon;, not just over the annual puk. Attention of future system performance are identified, together with a must be given to the variation of the load within the hour, the descr:ption of their specific treatment in the timing of CAPCO interruptible component, and sales to other systems. In capacity.

planning generation, not only is the growth in annual peak of concern, but also the trends in relations among the annual, daily, General Approach and monthly peaks. Since all these parameters are of importance, L*sually, a calculation of the expected frequency distribution of measures of system adequacy dealing with installed re +rve level capacity margins is made for the period of I calendar year. In on only an annual or a monthly peak load are not suffi&nt.

broad terms this calculation is made by examining the po<sible Similarly, consideration of only the total installed p nerating events that can occur for each day and, in turn, for the year in capacity as related to load is insufficient to adequately measure question. Obviou<ly, if all the load and capgeity elements were reliability. The characteristics of the capacity in tern.-. f size of completely predictable, only a single value of capacity margin individual units, their maintenance requirements, for ed out-would be predicted for a day. Taking into censideration that some age performance, seasonal limitations and day-to-day operat-of the load and capacity elements can assume various proportions ing condition are of vitalimportance. Also, consideration must be subject to some degree of radomness, alternate capacitr margins given to the extent to which a system depends on capacity re-can be associated with each projected day.

~

sources of other systems made avadable through interconnections, Based on the relativelv high degree of certaintv attached to and to the dependence on the emergency capacity of such -ystems.

some elements of the l'oad capacity situation te.g., planned Such simplified measures of installed capacity as percent reserve maintenance), cateulation of the expected annual frequener dis-

n. tirre of annual peak load cannot be considered to pn, cide, tribution of capacity margins can be made by breaking a year alone, a s.dficient measure of a system's ability to supply its load into subintervals such as months or weeks, with the total annual with its own installed capacity. Similarly, such simplifi-1 rnea-exp.,ted frequency for a given capacity mngin equal to the sum sures do not provide an evaluation of a system s reliability con-of the frequencies calculated for all subintervals, tribut;.ais and benefits arising from a pooling or coordination ar-The choice of the number of length of subintervak used in rangement; therefore, these measures are inadequate a a basis making an appraisal of a year-long capacity situation depends for allocating capacity responsibility m such arrangen.ents.

upon a number of factors calling for judgment. Basically, the se-lection of the subinterval will depend upon the confidence with Fatomer DistaterTrox or Dart.y CAercrry MAnotss which the analyst feels able to describe the relations among the Considcring the need to recognize the dynamic nature of load daily peak loads within the subinterval, as well as the degree and avadable capacity on at least a day-to-day ha-i<, if an with which eapacity erents(e.g., maintenance, seasonal deratings) adequate analysis of reliability is to be obtained, the La<ic ele-can be associated with specific time subintervals.

ment proposed for re<erve analysis is the daily capacity niargin.

Naturally, reserve analysis studies having different objectives The daily capacity margin is considered to be the dEerence and foundations will justify different concht< ion 3 regarding the between the load that exists during a daily paak perio,1 and the appropriate subinterval. For example, openting.stu lie-made operable capacity at that tirne. In id.ntifying the daily peak for the next upcoming year for purposes of budgeting purchased load, the intent of the capacity analysis will govern the mnaidera-power or interruptible load revenue might appropriately be based tion given to the native loud, as measured in kWh/h, the varia-on 52 weekly subinterval<. This could be justified on the baais of a tion of that load within the hour, the interruptible er,mponent, credible forecast of weekly peak loads, a dependable relationship and sales to other systems. Operable capacity for this purpose is among the daily peak load. of a week, a< well a< a maintenance

I176 su.c rinsacrio.<a os rowra.srernarvs Axo svartm, aversr t'JO9 scheilule baml upon ucekly mtervals; being developed only one yearin advance, such a fe, rcra t would have some degree of credi-3 p4 bility.

{,co.

On ti.e other hand, longer term studies are often based upon Y

forcents of enouthh peak loads.This is u-ually the result of the x',

guibility of co!!ceting and andvzing historical load data on a

[

calendar ba is In thi< type of anal,t is the subinterval might ucli g

'0" corre pond to the 12 calendar month.

For purposes of timing CAPCO < ipacity additions,12 sub-

\\,

o interval.- per year were used. Thi deci ion was based upon the de-as..

grecof o.nfidence

• bat was felt appropriate to place on weekly i

I versus nionthly peak load projections nude four to nine years in advante. However, the accuracy of the parameters did not seem I

i io d

io to warrant increasing the calculating burden by using weekly oAn subintervals.

Fig. 1.

CAPCO peak-hour load duration curves for January and July.

Represnotation of Load It has been found for practical purposes that certain days of justify including the transaction in the load model. On the other the 3 ear can generally be ignored in historical or prospective hand. an agreement to sell capacity and energy to another capacity analysis. These are days in which the load is 1) so small system on a "when, as, and if" basis (even though payment of that the capacity outage events large encugh to result in negative capacity charges might be involved) is properly excluded from r

capacity margins have almo<t negligible probability, and 2) well consi.!cration in determination of reserve requirements.

confined to the weekends and holidays that correspond to the As mentioned previously, the prcper components to be included lowc t daily peak loads of neighboring systems, (i.e., positive in tla representation of load depend upon the objective of the

~

margin

• in megawatt days accumubted for these lower loads are parti-ubr capacity analysis. In any case, care must be taken in of little value in considering them as tradable for recovery of maki:2 an interpretation of results consistent with the data negative margins). Analysis of annual peak duration curves for ueed. For example, use of a load representation based only on the conibined loads of the CAPCO group indicated that a 252 kWh h firm load will produce results rehted to those often used day year (twelve 21. day months, basically represfmting week-for the planning of additional espacity. Expected occurrence of ebys) constitutes a sound basis for planning CAPCO capacity.

negative margins would represent those ocessions when outside Since the basis for forecasting the frequency distribution of re<ources must be called upon because the installed capacity capacity nurgins is a day-by-day calculation, and since planning-renmining after outages and capacity limitations of all sorts is type load forecasts are made only for the peak of each subinterval, less than the integrated hourly load. With this approach, practical it is necessary to develop an estimate of the peak load for each system operation will result in additional occasions when outside day. Of mo=t significance, relative to the relations among daily resoureca must be depended upon since variation in load within peaks within subintervals, are these facts: 1) that the daily peaks the hour, which creates load levels in excess of the integrated within a subinterval differ from day-to. day peaks,2) that the value, requires that capacity be reserved within the system as its variououbintervals differ in their internal relations.

contribution to minimizing inadvertent interchange and to main-The relationship of the highest 21 daily peak loads for enca tenance of interconnected system frequency. Alternatively, the month wss derived by averaging four years of historical load load repre-entation can include an allowance forload variation data on a coincident hourly basis for the four members' systems. within the hour.

Twelve peak-hour load duration curves were developed, one for Error in load forecast can, of course, be evaluated. A major each month, on a per-unit basis; these curves were applied, with-difficulty, in practice, is due to the comprehensive nature of the out recognising any trend, uniformly to the study years 1971-probability approach. Since, in one way or another, a value is 1976. The actual computer input of the present CAPCO program ascribed to cach daily peak load, analysis of forecast error must consists of representing tb.e peak-hour load duration curve for include some identification of error impact on each daily peak the highest 21 peak loads for the month as five straight lines. load.

Fig. I represents an example of the January and July CAPCO In summary, the total annual CAPCO load model consists of 12 peak-hour load duration curves.

monthly peak-ho.ar load duration curves representing daily peak.

Throughout the industry some systems have contracts with hour loads for a total of 252 days. The group-estimated monthly large customers for supplying energy under so-called interrupti-peak loads for the initial generation planning consisted of the ble rates. In many cases these rates ne predicated upon a sum of the individual member companies' officially estimated system not installing generating capac., in order to supply monthly peak-hour loads with no diversity. Currently there exists

-such load, but relying upon the reserves normally not used to a wide variation in load forecasting techniques among the member.

supply the firm load of the system. Determining the r=quirements companies. It war felt that initially each member company could for dependence upon the resources of other systems in order to best project that portion of the total CAPCO load in his geo-supply one's own firm load phis intermptible load or alternatively graphical ares for which his load forcensting technique was spe-i

[

to supply only its own firm load would justify, respectively, in-cifically tailored. As more experience is gained with forecasting the cinding or exe' iding interruptible load from the calculation.-

total CAPCO load, diversity may be taken into account. Here the i

The treatmer.t of sales of capacity and energy to other systems customer supply contracts, the individual company policies, and would, of course, follow similar considerations. For example, an the agreement covering joint planning and operation, all support l

agreement to sell capacity to a neighboring system which carries exclusion of interruptible loads from reserve analysis. There was L

an obligation comparable to that to one's own customers would no problem in handling firm sales since no member company I

_ ~ _ _

,/

rain:sfoss si et.: CAPCO CatoCP ruoH.WUTY T1.CnNNU6; IIII f

contemplate $ entering into a sales agreement with a comg any cha$c can be entered into the random capacity calculation with a I

external to the group. Also, for the purtwe of timing the initial random outage rate.

' four generating capacity additions, the estimated load wa+ not I:

adjusted to rc8cet the load variation within the clock hour. Elements o/ Capacity Representation Modd Dercloped6y C.tl>CO Additional study by the CAPCO group is required to e-tabli h the appropriate treatment of load variation.

The capacity model identifies with each unit its net megawatt rating, its random outage rate, its seasonal or condition derating, and its scheduled maintenance. Keeping in mind that generation Representation of Capacity reserves of the CAPCO members are to be fully coordinated, the For each of the sufintervals (e.g., month 4) of the re crve capacity model used in the timing of catecity additions was con-l analysis, all cagucity resources must be accounted for. I ifficultic* structed by lumping all generating equipment into a " single I

arise in developing preci<e definitions for all the kinds of capacity system," and by planning scheduled maintenance on a coordi-events that can occur in system operation. Also, the-e eventa nated "one-system" basis.

range in predictability of occurrence (say five years in advance)

Since uniform equipment rating procedures are still being 4

fro.n certainty to complete mndomucu. The probability-ba<ed developed,each member,for the purpo-e of this study, established i

analysis described permits treatment of just two categories of a net rated value, gross demonstrated less station power, for each

.c events: completely predictable events, and completely random of his respective generating units. Condition and seasonal derat-i events subject to laws of chance. If in a subinterval it is possible ings for the total equipment were handled by two techniques; i

to predict that a given unit (s) will be unavailable on a planned namely, by adjusting a unit's net megawatt rating to redect basis, then such capacity is excluded from the outage table, average condition, by adjusting the daily load model by the i.

Techniques for generating an outage table are well known [2]. appropriate amount, or by a combination of these.

Input data nornmlly required are a listing of the generating units A unit's availability or nonavailability is simulated in either of that are planned to be operable during the period for which the two modes: 1) scheduled maintenance outage, which is simulated outage table is to be valid, together with a random outage rate by removing the unit from consideration in calculating the capac-i associated with each unit. Of particular importance to the cal-ity availability table, or 2) unpredictable outage, which is sim-culation of the frequency of daily capacity margins is the develop-ulated by use of a random outage rate in development of the avail-ment of a capacity availability table in terms of the probability of ability table. A joint working group developed a weekly scheduled specific capacity availability events (i.e., probability of exactly maintenance program for all units, coordinating the mainte-X 31W being available), rather than the cumulative probability nance practiecs and the many practical considerations of the 4

i of capacity outage events (i.e., probability of X 31W or more member conipanies. The primary objective of coordismted main-outage).

tenance planning Is toincrease CAPCO reliability amt thereby i

(

Although it is beyond our scope to discuss in depth the develop-reduce the total CAPCO dependence on external generation re-

~

ment of random outage rates for use in developing the capacity sources. Coordination was accomplished by ecpulising for all availability table, it must be remembered that engineering months the total of load and maintenance.

judgment mu<t be brought to bear on rates that are used. Since Although the joint CAPCO maintenance schedule was de-one of the values of the approach de-cribed is its inherent com-veloped on a weekly basis, it was decided to "round" the main-parability with actual performance, comparison of calculated tenance schedule to monthly periods so that only 12 capacity frequency of various capacity erents with >everal year-of experi-availability tables needed to be computed per calendar year.

enced capacity outage can give insight on the aderpiacy of the The " rounded" schedule for each month contained thesame total assumed random outage rates.

megawatt days of maintenance as the detailed schedule, and Other components of generating capacity unavailability con-consisted of about the same total number of simultaneous units sidered predictable enough to exclude from the random outage out of service during t_he month. For example, a turbine-generator rate include <ea<onal derating, coincidental derating. and pur-overhaul generally lasting four to five weeks was simidated by 4

chase of 6rm capacity. Seasonal derating of capseity, vhich re-removing that unit from the capacity availability list for one i

Sects predictable sea <onal cNects, should redect in the calculation month only. Boiler inspections of two-week duration were not either in adjusting generating unit sizes or by overall adju3t-diHicult to simulate on a monthly basis because in nently all in-ment to load. Consider system coincidental derating. This ele-stances two units of the same megawatt size and same approxi-ment repre<ents the inability of all enerating units of a system mate random outage rates were scheduled in succession. In this b

to attain their expected (maybe seasonal) rating at the same case, taking one unit out of the capacity availability list for one time. This inability maybe a re< ult of unit condition, partial month provided an adequate simulation. Adjustments to the outages, and'or capacity limitations. The magnitude is subject loads were developed to account for diferences between the i

i to detennination from system operating records and, indeed, "as-planned" and " rounded" maintenance schedule.

~

i may be dependent upon the rating policy of the system. Pro-The random outage rate assigned to each unit reflects the prob.

1 portionately small values of system coincidental derating can be ability of its being inoperable when called upon. Thus definni, conveniently and accurately handled by simply adding a corre-the random outage rate includes forced outages and chort-term sponding amount to the daily load.4. Values in execss of, say,3-5 maintenance. Short. term maintenance can be rescheduled to the percent should be reviewed with respect to posible changes in following week; but if it is not performed the unit will' likely ex-random outage rate or unit ratings. A system envisioning pur-perience a forced outage or a long-term capacity curtailment.

i chase of firm capacity from a' neighboring system may find it Again, because procedures for collecting unit preft enmuce on a k

. appropriate to simply subtract from the load model a corre: pond-uniform basis are still under discuvion, each pany developed ing amount of load, as though the neighler has assumed responsi-random outage rates for its units. based upon its experience.

bility for carrying it. If the analyst believes the availability of Future CAPCO units were assigned jointly agreed-ngen sched.

the purchawd capacity to be !ces than 100 percent, then the load uled maintenance and random outage characteristics ba cd upon j

removed can be discounted appn>priately; alternately, the pur-judgment and available inde stry experience.

i l.

?-

f

~

~

,e 1178 IEEE TRAxJAcTIoN3 oN power APPARATCs A? '* SYaTEMS, Avcvst 1909 Timing Capacify.4Jditions

~

An important application of the proce lure described here is in k'

regard to the timing of generating capa..ty additions. Two gen-oavs -

eral appmaches are possible. On one hanc., the entire spectrum, of expected perforrnance (that is, the frequency distribution of daily capacity margins) can be reviewed, along with other pertinent

~

factors, to determine whether or not predicted performance will be acceptable. This broad description of future performance pro-i vides an excellent basis for decision making by management, which rnust consider the social, political, and economic factors as well as reliability. The planning of a single system under control

^

M of a single management may favor this approach.

Alternatively, a single indicator may be extracted from the c.um o

c.um c m caTv w anc.m s complete description of projected performance. Predicted system performance that exceeds such a criterion value will indicate the Fig. 2.

Tvpical pom er s3 stem expected frequency need for additional generating capacity. When planning on a pool distribution of daily capacity marsms.

or coordinated basis, capacity decisions depend upon the concur-rence of more than one management. In these cases, to provide 1/erging 1.oad and Capacity Repreachfations C0h'istency over a period of years and to facilitate decision making, it may be desirable to foaor the latter course of action.

Development of the expected frequency of capacity margins is For the above reasons, CAPCO elected to establish a planning carried out by measuring each of the daily peak loads of a standard for timing of capacity additions, specifically, a maxi-(monthly) subinterval against the various amounts of available mum annual frequency of dependence on external generation capacity in the applicable capacity table. This comparison results resources.

in a li-ting of possible capacity margins for each of the days.

Nothing inherent in the calculation and analysis of daily Each of these capacity margins is, of course, associated with the cap:.citv margins identifies the appropriate criterion level. Con-probability of the corresponding capacity level.

sideration must be given to the expected dependence on the The probabilities for each margin level for all days of the sub-reserves of others, along with an appraisal of the availability of interval

• are added, the totals representing the expected rate of such reserves. This appraisal should include evaluation of neigh-4 occurrence of that margin, expressed in days per period (e.g.'

bors' reserve position, capability of the transmission network and days per month). All possible margins and their respective ex-the contractual arrangements with neighboring systems, and pected rates of occurrence, expressedia days per year may be the experience in depending upon such reserves.

determined by repeating the calculation for allsubintervals of the After careful consideration the CAPCO Group selected for its year. Plotted, the results of the foregoing procedure for a typical reserve standard the criterion level of one day per year depen-pc.wer system would appear as m Fig. 2.

dence on external generation resources. Table I shows the fre-quency distribution of capacity margins that is expected for the Rmt,rs CAPCO group in 1974. Note that the maximum calculated capac-Application to Reserre Analysis ity deficiency compares favorably with the transfer capability The end product of the foregoing procedure represents the that would be associated with the nine 345-kV interconrmdons exhaustive evaluation of the ability of the given system of capac. with outside systems that the CAPCO Group will have. It is ity resources to supply the given load. Of considerable importance worth observing that if CAPCO were able to depend upon the is the fact that the results of the analysis are expressed in terms reserves of neighbors for capacity in amounts up to 600 MW no of events that can be compared directly, on an after-the-fact basis, more frequently than 0.76102 day per year (0.47784 + 9.20389 with the conditions experienced. It should be noted that the + 0.08229), its " loss of load probability" would be less than one evaluation quantifies the extent to which the system under anal. day in ten years (actually, one day in 19.5 years in 1974).

ysis must depend upon help from "outside" resources in lieu AtmArrox or CAPActrY Rr.sroxstart.tTT of dropping load, and also quantifies the extent to which the system can provide help to "outside" systems. (Negative margins The CAPCO group, like other power pools, requires a mecha-denote the dependence upon outside systems; positive margins nism for insuring the equitable sharing of benefits and responsi-identify the help that can be made available.) Both the negative ni ities arising from such an association. The fundamental basis margins and positive margins represent quantities that exist after c f equity adopted by the CAPCO group is that each party should

- the system has utilized its resources to the maximum extent to ecntribute to the group reserve in the same proportion as he ex-satisfy its own load requirement. Quantification of a system's pects to t..ilise it. In implementing this principle, the individual ability to provide emergency support to others, along with its party's contributions and potential use are evaluated, and potential emergency use of the resources of others, provides an through an iterative process, megawatts of capacity responsi-extremely comprehensive basis for analysis and judgment with bility are shifted among the parties until the desired relations respect to the installation of generating capacity. By applying among the individuals' contributions and use are realised.

the analysis to systems individually and interrelating the positive As mentioned previously, the method of capacity analysis margins of one with the negative margins of the other, the poten. described may be used to great advantage to explore capacity tial exchange of capacity margins by way of interconnections can relations between and among systems. Negative margins are be fully evahuted. This evahution can be an exploration of the quite useful as the measure of a system's need for help from out-impact of margin exchanges upon reliability or an exploration of side, whereas the positive margins areuseful as the measure of a j

the adequacy of interconnection capability or both.

system's ability to provide help to outside systems. In using i

I i

4

• erizarosa. ri af.: cArco caove eno:Aru.ary Ti.cusiutt:

1879 TABLEI magnitudes, the e.spected frequency of need is also of vital con-1974 CAPCO Gnove E. et so azovtscr Distainer:ox or M

& N da a d & Wm a % We Wm Deczusca CAercarr 12 677 MW could be expected to provide help to others in much larger mag-

_N

(

Doczusca Loso 10 22; MW nitudes than a small system could.

To account for differences in the margin distributions among systems, h has bn foum! hide to de lop a quantity called MW *tlargin X

o esa Frequency megawatt days. "Postive megawatt day ' is equal to the sum of

."8 From To (days / year)

(days / year) (years / day) the products of each positive margin and its respective frequency (first moment about the 041W margin). " Negative megawatt 2300 2999 0.22S45 252.0000 days" are calculated in a similar manner, from the negative 2600 2799 2.38325 251.77155 2400. 2599 6.7239s 249.3sS30 margin data.

2200 2399 13.89560 242.66432 Table II illustrate < the process and the resultm.g megawatt-day 2000 2199 24.67605 223.76s72 1800 1999 36.G8431 204.09067 figure for the negative margin portion of the data and aho the 1600 1799 45.15265 167.40636 comspondm.g figure for the po<itive port. ion of the data. Th.is 1400 1599 42.00179 122.22371 1200 1399 30.14737 80.22192 type of data can be developed for participants in a power co-th 1[

h0 ordinating or pooling arrangement, and provides the basis for 600 799 7.77841 15.9S365 eqtutable allocation of capacity responsibility among the mem-400 599 4.21927 S.20524 0.1 bers.The positive megawatt-day total for each member evalut.tes 4

his ability to help others tpotential contribution); the neSative

- 200

-1 0.47748 0.81530 1.2 megawatt-day value can be used to evaluate his reliance upon

- 400 - 201 0.20389 0.33746 3.0 others (potential use). Bv proper distribution of capacity re-60 3

I sponsibility,it is possible to make the relationship (P/N ratio) of

- 1000 - 501 0.01221 0.01S49 54.1 each party's contribution to the group reserve (positive mege-watt-day value) to his potential u<e of the group reserve (nega-

- 1600 - 1401 0.00046 0.000G5 tive megawatt-day value) equal to that for each of the other

- 1800 - 1601 0.00014 0.00019

- 2000 - 1801 0.00001 0.00005 parties.

- 2200 - 2001 0.00001 0.00001 100 000 The CAPCO groep utilizes the foregoing as the ba i< for as-

- 2400 - 2201 0.00000 0.00000 signing capacity responsibility among the members for the jointly committed generating units. I*tilization of this probability tech-nique will evaluate each member's load situation and the quality TABLE II of generating capacity being brought into the power pool.

Ureormericar.SystzgPortst C,oxraiserios VEnsts In order to allocate the jointly committed pool capacity so that each pool member's P/N ratio is equal to each other member's MW Frequency First Moment P/N ratio, the CAPCO group undertakes a probability evalua.

Margin (days / year)

(MW days) tion of each member on a hypothetically independent basis.

A. 3152.2 Positive MW Day.of Potential Contribution This computation not only evaluates directly the quality of a specific member's load and capacity situation but aI o avoids 35 0.0 0.0 30 4.0 120.0 attachit.g a penalty to the member for belonging to the Inwer 25 19.5 462.5 pool. (The discussion to follow will clarify this point.) A resene h

h evaluation with respect to a member's system is made as if the 10 52.0 320 0 member had operated independently over a given time period.

1 In the CAPCO group, an allocation of all jointly committed generating capacity is made for each of the time periods be-tween in-service dates of such units. For example, CAPCO time B. 80.5 N tive MW Days of Potential I'se period C extends 14 months: from the planned in-service date of

~-Mj the second pool unit, Ea<tlake No. 5 (August 1,1972) to the in-

,~10

- 15 0.6

- 9. 0 service date of the third pool unit, Beaver Valley No.1 (October

- 20 0.0 0.0 1,1973). De6ning the time period from unit to unit enables the megawatt allocation respor.4ibility to be specified as each unit

• P/N - Contribution,(*se - 39.16.

is committed. Incidently, this approach requires that the timing of the succeeding generating unit be e tablished in order to make these quanuties as measures of a system 3 need for and ability an allocation, and its responsibility allocated only if the timing to provide help, it is necessary to recognin the differences that of the next unit is establishe 1.

can exist from one system to another in the distribution and As has been stated, a hypotheticalindependent evaluation must makeup of the negative and po<itive margin spectrmns. These be made on each pool member, *y-tem. The load models are differences are in large measure attributable to differences in straightforward in that the independent peak *1uration load system size, but are also related to the important parameters of curves, along with estimated monthly peak loads for each mem-generating unit size, random outage rate, load characteristics, ber's system, are developol for each month of the allocation time and maintenance practices. For instance, a very large system period. The capacity n odel, however, bears discu.<sion becau.-e the may be capable of incurring capacity dc6ciencie*, and thus have CAPCO gmup has cho.-en to handle two major parts of it in a need for help, in magnitudes up to several thotuand n egawatts significant rnanner; namely, the a.aignment of jointly committed (which might be several times the maximum amount that a capacity to each member % capacity lineup and the hyinthetical much smaller system could possibly require). In addition to the irdependent maintenance schedules.

Ilh0,

tEEE Tnnsrcisoxs ox rowru AerAn srca AND sr>Tcass, Accett 1969 TABLE III CAPCO Pom9t, D Pan 11 sr s Car 3cnv AmaxucxTs OIW) f Cleveland Electric lituminating, 1)u)neene Light, Ohio Edi on, T..ledo Edison, CAPCO I? nit, 283 Penent 2.O Percem

9.7 Percent 8.4 Penent i

No.1 625 15~>

170 250 50 No. 2 625 12>

170 245 55 No. 3 600 200 215 315 70 No. 4 600 200 215 320 65 2MU 710 770 1130 240 Jreintly committed generating capacity is to be allocated to

1. 2 n~

equalize the P3 ratios of all the members. The units themelves are tror,large to he included wholly on any one member's capacity model, the jointly committed CAPCO units being sized relative n 3, to the total CAPCO group load to take advantage of economy of j

oe.

scale. To -imulate the mutual responsiblity that each member has with n-pect to each jointly conraitted CAPCO unit, a propor-noo~

j tionate hare of each CAPCO unit is origned to each member's A-7 hypothetind independent capacity model. For example, in the 2

~

CAPCO time period D there are four CAPCO units totaling 2S50 g sw~

j 31W of net rated capacity:

4 g

1) CAPCO No.1, Sammis No. 7,625 31W

[ 750" j

2) CAPCO No. 2, Eastlake No. 5,625 31W 5

1

3) CAPCO No. 3, Beaver Valley No.1, S00 31W

4) CAPCO No. 4, (Toledo Edison), S00 31W M '""

i By an iterative process, equal P/N ration for each member were C -

arrived at by assigning a proportionate share of each CAPCO 4 '""

u t to each hypothetical capacity model. Within the CAPCO I

j up this technique is referred to as a member's " pro rata" share o

I

r. c.

jointly committed capacity. As will be noted in Table III, the E

raegawatt portions of each CAPCO unit are rounded to the near-j est 5 31W.

2co-.

Toh,lo Edison's capacity model, for example, consists of its independently owned units, with each machine assigned its Lff appropriate random outage rate, plus four CAPCO umts, each

,,, urm unit being assigned the appropriate random outage rate associated with the particular CAPCO unit. By changing each member's pro

% 3.

Bu+rnen h ha

>eri d b. ^

• • "* ' #' W rata share of all CAPM units in successive steps, a solution for equal P/N ratios can be determined (Fig. 3) so that the total of all members' prorata share equals the total amount of espacity dependent P/N solutions, each member will extract froai the to be allocated (2S50 31W for the CAPCO group in time period CAPCO master schedule that maintenance for which he is re-D). It should be noted that the prorata capacity assignments as sponsible. The member then freely rearranges the maintenance indicated in Table 111 for individual units do not necessarily bear timing as if his system were independent. A member's responsi-any relation to actual ownership.The total megawatt assignment bility ako includes his prorata share of the jointly committed of all jointly committed capacity represents the number of CAPCO units. With this approach the independent probability megawatts for which the individual party bears financial re-evahiation will equitably reflect the quality of each member's ca-simnsibility.

pacity contribution to the pool, rather than penalising unjustly -

Each member's espacity model is modified during the various per.alizing him for being a member of the CAPCO group.

maintenance periods to simulate its planned nuintenance re-eponsibility. llowever, it would not be fair to require each mem-Coxct.csrox ber to follow the unit maintenance timing specified in the fully The authors believe that the foregoing methods permit more doordinated CAPCO maintenance chedule. For example,Toldeo comprehensive evaluation of the ability of a system of capacity Edison's 214-31W Bay Shore No. 4 unit is a relatively small unit, resources to supply load reliably, and of the associated depen-as far as CAPCO is concerned, and generally will be maintained dence of that system ulum outside resources, than has heretofore during heavy load periods. IIowever, for Toledo Edison's hypo-been attained. The method recognizes all the important param-thetical independent evahiation, maintaining its largest unit eters that must be con.<idered, and the computerized process during heavy load perials would unjustly penalize it. The pur-allows exhaustive exploration of the effects of changes in those twe of the hypothetical independent calculation is to evahiate parameters, the load-carrying ability of each member's equipment. Therefore, The authors further believe that a new method has been de-it has been agreed that, for the purpose of the hypothetical in velopedwherebypowerpoolmemberscansharceapacityresponsi-

etusrun.ct d.: actu unot e rmminit.trr ncusNcs list bility equitalsly on the lia i of indiviilital contriliution-to anel utilization. Furtherraore, the equalizati.m of the PfN ratio among espectetl u-c of tlic pool re-crve capacitv recources.

the member. wotdd be atTected.

in addition to the foregoing, the method <lc<cribeil shoulil AI', the authors indicate that f. r reserve analy,,4 purp -c4 the 9

CAPCO companie* have agreed eo ewlude interruptible loada from pmve to be quite vahubic for other area < relatett to capacity the individual sy. tem load model4. Thi< remdt, in crediting the oy--

planning. Among thesc are analysis of capacity maintenance prac-tem with interruptible load with more po-itive margin 4 than it might tites, anal esploration and establi.-hment of minimum criteria actually have arcilable if there exi*ted re triction< on the curtail-with rt-pert to insta!!al capacitv for memt,crs of a coonlination ment of such load. Again, a.4 in the ca e of tran3mi--ion limitation.

rettrictions on ihe utilization of interruptible load < a< a supplemental gmup.

capacity rerource wotdd atiect the availability of the -urpha margin.

lisve the authors con.-idered the-e two item 4 in their capacity mar-

.\\cKXOWLEDGIF.Sr gin evaluations?

The authors wi31: to acknonletige the important contributions Ina-nunch a4 the P,N rati hay been offered here a-the sole ba-i.

for equahzing capacity re*pon.-ibility, and hence fin establi3 hine of R. C. Craft ami M. G. Mon;an of the Clevelatui Electne city investment in pool unit.4, it would seem nece*ary that each Illuminating Company, in coneciving and programming for the member be aware of the sensitivity of this parameter with re,pect digital computer (the daily inargin al proach to reserve analy<i4) to the muumptions made in any capacity margin evahiation. Among and in <!eveloping metho l for a;: plication of the technique, di3erent systems, ordinarily, the P. N ratio varies over,everal respectively.

orders of magnitade, depending on ihe individual load and capacity charactenstics. Now, when planning future capacity requirement, a RErrauxcts relatively small change in, say, assumed forced 43utage rate, or load level, for a given member system coidd significantiv alter its P, N

[1] G. S. Kas ell and N. Tibberts, ",An approach to the analy-i of ratio. The effect that this would have on the particidar my> tem's generating-capacity re-erve reqturements,"IEEE 7 < ares. Po cr capacity re ponsibility in the pool, as described, wotdd depend upon

[2]

E on$ nut teho$,

p a'tfo p o'bab$ lien e hbi, the load and capacity characteristics of the system as related to the to generating capacity pmblem,".4/EE Tmns. (Poacer.1p.

ent re pool, paintus and Systems), vol. W, pp. litn-1152,1960 (Februarv It wotdd be of interest, therefore, to see how a change in, say, 1961 sec.).

either a<sumed load or forced-outage rates wouci atTeet the P N ration, and hence the prorata capacity responsibilities indicated for the CAPCO companies in Fig. 3. Such relation.-hip would give some insight into the degree of confidence that can be placed on the u.-c of the P/N ratio as an index for a<. igning capacity reponsibilities in a pool.

D scusnon In line with this, how often are routine load-capacity review, for a partietdar future year made within the CAPCO group? Al-o, what mechanism does CAPCO have for altering the capacity re-pomihili.

G. S. Vassell and N. Tibberts (American Electric Power Service ties of the variota members for pool units in the event of significant Corporation, New York, N. Y.100N): The authors pre-ent au change in any load or capacity assumption? And finally, what adn-t-interesting extension and application of concepts which the-e dis-ments are made in the<e responsibilitie< on an after-the-fact ba.-i-?

eussers ha i developed in [1]. In a manner similar to that u-ed bv the The answers to the<e que<tions would help to clarify come of the discus <er< in developing the capacity deficiency curve in their p' aper' practical 84pects of admim.*termg the capacity-expanson plan < m the ba-ie capacity margin di tribution, as presented here, portray an arrangement such as vuualized by CAPCO.

the complete range of daily capacity margins likely to occur on a power system throughout a given year.

We concur completely with the suthor. in their contentim. that the capacity margin di,tribution q Fig. 21 provides a much more meaning.

A. K. Falk (Detroit Edison Company, Detroit, Alich. Mt*6n This ful and comprehensive ha<i for evahiating generating capacity re.

very interesting paper is quite unique with respect to the frankne..

quirement* than is obtainable from other method. A, at. exas.ple, expre*ed nith regard to allocation of pool unit capability and this di.-ttibution gives not only the probability of p%-ilde to,$ of financial reapon<ibility thereof, among the <everal partie to a pooling load, but, even more important, the variotu probabilitie-wociated agreement. It is my opinion that the principles set forth here are fair with the lo.-s of different amount 4 of load.

to the parties within a p;ol.

Thus the capacity margin distribution, like the capacity defkiency As the author < atate, their method is merely an exten-ion of exi-t-curve, provides the means for evaluating predicted,yetem perform. ing methode, i.e., los<-of-load method, or loss-of-capacity meth..d.

ance in any of several dimemions, and therefore allows for a more Their method biings into foetu the etTect of daily margin-over and intelligent > election of criteria for planning purpo-e*.

above the etTect of monthly peak margins as deterndned by the lov.

The companies included in the CAPCO arrangement have decided of-capacity method. Because of thi< it may provide management, in that the P/N ratio aw)ciated with the capacity margin di.tribution some instances, with le-s freedom of judgment than the other meth-14 the most meaningful parameter in evaluating the allocation of ods. At this point, it may be appropriate to make the following ob.

capacity re-pm-ibility among the members of a power pooling dervation< with re-pect to the varimu method a< they are influenced group one h n CAPCO. The etfective u.-e of this parameter, however, by the screral variables rai.-eneveral qnc< tion <. Any comment < by the nuthor on ihe follow-ing item-nonld, therefore, he mo t helpful.

Finit of aM,interent in the Nue-y, tem" approach to ehe develop-

"g' g

g,g ment of the n.mpoute capauty margm de enbution,24 -hown for the Atargin'4 IA i Capacitt 19M CAPCO gionp in Table I, i.- ihe a--umption that available po-i-tive margin. from any member of the group can be fullt milized, to the extent nere-ary, to oti-et the tiegative margin < hf the other Unit Siee included included iactuded mend,er, n it h no t ran mi--ion timitation-u hat-never. !f urh limita-Unit Pnfonnance included i,ndudw a.. il

.\\taintenance 8chedules include.!

Judgment

,ada me tions do esi-t, this wmdd re-trict the fiee flow of power among the member <. Thu:,, the potential ability of a particular rnemier to help h,*a'd.0 t $1

!n" nbt

"^

h i

other member < during time < of emergency could be impane.I, and.

E,e of [oterconnection4 inchide i pm-ihle included s

as a conequence, the entire crimp woidd antier. Thi, in tuin, would Intern,nnection Equitv ir einded pmAle inchida re= ult in greater dependence un the external oopplemental capacity Energy Deficiency luded po-3.ble difficult remurce-in terms of day, a4 ncll a4 meetwatt laymf respiired Stanuscript received October In, Im.

Manu<cript received October 30, IW.

llM im russswriosa os runs n Arrsn sttw Asp systnis, ACGrer IXs9 The foregoing tabulation indicate. that although each of the three the interruptible luml nIwn alk-ating the jointly committed capac-snethods can he utilized to a,certsin the etTects of the variett* param-ity. The purpo-e of t he alkwation technique is to evaluate each group g1 e-ter, the anthor.' methnd appear. to have the advantage of fatility, snember's capacity re-surces in terms of the potential contributions The di-tribution.of-daily-margins method, utilizing the concept of to the group and the potential need for as-istance from the group as the ratio of po,itive margins with re-pect to negative margins, ap-thmgh the member mere independent, yet without unjustly penaliz.

+ars to be an euellent methad for allocating pool unit capacity ing him for being a member of t he CAPCO group.

e<piitably among the members of a pool.

The sen-itivity of the P,5 ratio with regard to changes in load, Epial ratios of po*itive margins with respect to negative margins random. outage raies, maintenance schedules, and unit sizes was j

for members of a pool may al-o be equitable for sharing the benefits inquired about. The P/N ratio i> >en,itive to data changes. Ilowever,

..f interconnections within a pool. Based upon results of several cal-for the purpose of allocating the j.intly committed CAPCO capacity etdations, it appears that sharing interconnection benefits equally it mu-t be remembered that the allocation technique is ewentially a amorig members of a p..ol will provide almo t equal P/N ratios for1he clo-ed syrtem, that is, all input data must remain fixed to be con-members of that pool. It is not clear, however, this concept would si> tent with those data used in timis.g of the jointly committed be appropriate for sharing benefits of interconnection between a pool capacity.

member and systems external to the pool.

3f r. Va-sell and Mr. Tibberta al o a ked if there was any schedule The index of unit performance u3ed here is fortunately defined by for reviewing capacity allocations. The CAPCO group presently

'he authors as the random outage rate rather than a qualification of doe. not plan to review capacity allocations on a fixed schedule; how-a forted outage rate. I believe it would be quite helpfulif the authors ever,if there were a major change in capacity or load data, by mutual would briefly summarize the cuential differences between the two agreement; capacity timing and allocation re>ponsibility could be rates.

reviewed and altered. Each member of the pool will endeavor to see The authors have pre <ented a method that may become more that the best estimate of data ia ited because there is an after-the-lw>pular than the other methods becau>e of its case of credibility, fact capacity responsibility adjustment based upon actual genern-nhich is a definite advantage. I agree that, as an extension of other tion reserve values.

methods it may be an improvement, but I question the value of the Pwferring to Mr. Falk's digu* ion, the authors would like to com-estreme po itive margins as having the ability to provide assietance. ment on the comparison table listing the various variables taken into In the prs (tical sense the po-itive margins (expre sed in moments) con.-ideration by the three probability techniques. Under Di<tribu-may be overstated, especially when all systems are exposed to the tion of Daily Margins, Margin for Ioad Forecast la listed as judg-same climactic conditions. From this viewpoint, the loss.cf-capacity ment. This variable could be inchided in the analysis; however, method, although more conservative, may be more factual. Other-it does require the ability to statistically describe the CAPCO group wi.e, I view the distribution.of-daily-margins method as an advance-fareca<t deviation. The CAPCO group, being in its infancy, has yet meet in our present practice. It has some shortcoming =, particularly made a detailed after-the-fact analysis on its estimated load forecast in tLe area of catabli*hment of a single index of quality, but with devLtion. As pointed out above, there currently exista a wide varia-further examination and study, this shortcoming should be orei tion in load forecasting techniques among the member companies. To come.

cos er an item like load forecast deviation, conservatism was built into the analysis by adding each member's peak load, excluding the effects of diversity, to obtaih the group peak load. Assuming that load form cast deviation could be satisfactorily represented, there is no reason for not adding its effects to the distribution.of. daily-capacity-margins I.ynn Firestone, William D. Masters, and Alexander H. Monteith: technique.

The authors sincerely thank Mr. Tibbarts, and Mr.Yassell and Mr.

Mr. Falk reque3ted that we expand further an explanation on the Falk for critically appraising this paper by means of their discussion. term random. outage rate. Generating imit outages are either predict.

Responding firstly to the Va% ell-Tibberts di cus3 ion, the ques.

able (long-term scheduled maintenance) or unpredictable (the ran-tion was raised of whether or not internal transmis-ion limitations dom maintenance outage). The random outage includes forced out-within the CAPCO group were taken into consideration. As pointed ages plus maintenance outages that evape the label "formd outage

out in the paper, the probability calculations for timing capacity for simply because the nature of trouble developing in a unit is such the CAPCO group were made on a one-system basis. Such treatment that repair can be delayed and $theduled into the following week.

assumes that generation reserves can be transmitted within the This type of maintenance, referred to at Ohio Edison Company as CAPCO group mithout transminion line limitations. A transmission short-term maintenance, is labeled cheduled maintenance by many planning criterion for the CAPCO group, therefore, is the installation companics. However, for a probability solution short-term maint5-of sufficient CAPCO group transmission to assure that capacity nance is random.*t cannot be rescheduled from one season to another.

margins can be supplied within the group wherever needed.

In fact,it most hkely will result in a forced outage if the condition is Mr. Vassell and Mr. Tibberts also inquired why interruptible loads not promptly corrected. Random outages, the unpredictable portion were excluded in the allocation process. CAPCO group capacity is of maintenance, phis long-term scheduled maintenance, the predict-to be planned on a one-system basis. Therefore, a short=ge of capac. able portion of unit maintenance, account for a unit's total unavail-ity on any one member's system is a shortage for all members. Ac.

ability.

cordingly, interruptible loads are to be interrupted regardless of The authors agree with Mr. Falk that extremely large positive where the capacity shortage occurrs within the group conversely, margins have questionable value within a pool.' Itis is the reason that espacity will not be installed to serve the interruptible loads. It is, weekends and holidays have been excluded from the CAFt;O anal-therefore, appropriate to exclude interruptible loads when planning ysis. On the other hand, enforced outages most often will create a the total group capacity additions. It is also appropriate to exclude abortage to a pool member during t he week. An excess of capacity, the positive margin, on any member's system within the poolis of direct benefit so long as it is equal to or greater than the shortage occurring Manuscript received October 10,1968.

on another member's system.

s EXHIBIT "B" INTERLAKE, INC.

(FORMERLY INTERLAKE IRON CORPORATION)

CONTRACT FOR THE SALE OF SURPLUS POWER FROM INTERLAKE TO TOLEDO EDISON l

Amendment No. 12

.s 12/17/M m

D k

o o

_[L vb.

)

ACREEMEMT TIIIS ACR:::::C:t; mada and entered into this ck b

day of 0 p om

,N

, by and between INTmaru IRCit CO2ICATICN, a New Tork corporation, Cleveland, Ohio, (hereinafter i

l sometiws referred to as "Interlake"), and THE TOLEDO EDISCt! COMPANY, an Ohio corporation, Toledo, Ohio, Q.orainafter sometiano referred to as " Edison"),

t1 I T N E S 8 E T H :

k'UEKE4S, Interlake, as Seller, and Edison, as Buyer, entered into a certain A reement dated December 27, 1956, covering 5

the sale by Interlake and the purchase by Edison of surplus electric pcwer produced at Interlake's plant located at Toledo, Ohio, which A reement has been terminated as of noon on the first C

day of January,1965; and kd::REAS, Interlake and Edison desire to enter into a new Agreement for the sale and purchase of surplus electric power upon the terms and conditions hereinsf ter set forth, effective et noon on the first day of January,1965; NOW, TEREFCRE, in consideration of the premises and the mutual promises and agreements of the parties hereto, it is mutually agreed as follows:

1.

Interlake agrees to sell and deliver to Edison and Edison agrees to take and pay for during the term hereof the electric power generated by blast furnace gas, eoks breese or

D D

.s 12/17/64 QV

-]

other fuel in excess of that required by Interlake for its own use in or about its plant, as specifically set forth in Section 3 hereof, and at a price determined in Section 4 hereof, and Interlake agrees to deliver the same at Front Street on the promises of Interlake, at such standard voltages as Edison may elect, not exceeding a nominal 69,000 volts, three phase, sixty cycle, and at as nearly a constant rate as is practicable and consistent with its own requirements and operations.

Interlake further agrees to cooperate with Edison to prevent waste of any blast furnace gas, and to at intain the delivery of surplus electric power to Edison at as nearly uniform rate as possible, and in order to prevent, as far as possible, interruptions and fluctuations to service during casting or other times, Interlake agrees to maintain its boiler plant suitable for the use of blast furnace gas, coke breeze, fuel oil and tar, separately or together, in such manne r that in case of temporary shortage of blast furnace gas said other fuels will be burned under the boilers so as to make the delivery of power as nearly constant as possible.

Interlake agrees to cooperate with and assist Edison in maistrining service and to notify Edison at any and all times of any shut. downs or anticipated shut downs of the blast furnaces immediately upon acquiring knowledge of such prospective shut. downs by Interlake.

It is understood that the quantity of surplus electrie power to be generated from such surplus gases, coke breese or 1

i 2

l D

b 12/17/64 i

}

(

)

other fuel vill vary from timo to time, due to changes in the operation or the shutting down of one or more of Interiske's furnaces and to the varying rcquirements for power by Interlake for its own use.

Interlake agrees to une its best efforts as herein set forth to maint*in the delivery of electric power at as uniform rate as possible, but shall not be penalized for any variations in the rate of delivery under this contract.

Interlake agrees to operate its equipment so that the average power factor of the electrical power supplied to Edison will not be greater than the average power factor of Edison's system.

The rates as set forth in Section 4 are based upon the maintenance by Interlake of an average power factor of 85% for each month.

Edison agrees to maintain at Interlake's Toledo plant recording instruments for determining the average monthly power factor. When the average monthly power factor is above or below the designated power factor of 857., all kilowatt hours as metered will, for billing purpones, be multiplied by a correction factor determined from the following formula:

A Correction Factor = 1 plus

-B (FF)(PF)

B shall be equal to 1077. - designated power factor designated power factor A shall be equal to square of designated power factor times 3 PF shall be average monthly factor of Interlake.

2.

All of the electric power sold by Interlake to Edisca

~3-

99D Lf tb N $

~

12/17/64 qi qq A

T i.D 6L1 y

J d

v shall be metered at the place of delivery, to-wit: At Front Street on the premises of Interlake, by a meter or meters which shall be furnished by Edison and be maintained by it accurate within the limits of 2%. Both parties hereto shall have the right to test the matar or meters for accuracy, and in the event of difference, joint testa shall be made. No claim for allowance shall be made by either party if the error in the meter or mate rs is not in excess of 2%. If error is found in excess of 2%, payments hereunder shall be adjusted to the corrected reading for all electric power sold since the last previous test, or during the sixty (60) days preceding the discovery of the error, whichever period is shorter, but in no l-event shall any adjustments be made or allowed for a period greater than sixty (60) days.

By reason of the different classifications of electric power delivered hereunder at different times in the day, as provided in Section 3 hereof, the representative of Interlake shall read the asters at the appropriate times each day to establish the quantity of povar sold in each classification. Edison shall have the right to have its representative present at the time of any meter reading by a representative of Interlake and to check any reading ande by Interlake's representative.

3.

Edison agrees to purchase from Interlake m of the surplus electric power generated by Interlake by means of blast furnace ass, coke breeze or other fuel according to the following I

schedule of quantities and time of delivery, to which both parties 4

gTT D

12/17/64 m0

~

~

~f A

s ulk r

n to this Agreement shall conform as nearly as is practical:

(a) Electric power delivered from 7:00 a.m. to 10:00 p.m. of the five week days, Monday through Friday, subject to modification established by paragraph (c) of this Section shall be considered " Peak Power". This generation shall normally be 4,000 kilowatts.

(b) Electric power delivered at all times other than the period scheduled in Section 3(a) is classed as "Off Peak Power". This will normally be about 2,000 kilowatts with one furnace operation and exceed this amount with two furnace operation.

1 (c) The following holidays, or the days set for their observance, to-wit: Memorial Day, i

Fourth of July, Labor Day, Thanksgiving, Christmas and New Year's, shall be classed as Sundays and all electric power deliveries on these days shall be clasaed as "Off Peak Power".

l (d) At such times that Interlake, because of l

availability of surplus fuel, generates more than 4,000 kilcwatts of " Peak Power" or more than the normal amount of "Off Peak Power", without the use of coke oven gas,

's

.s.

on 0

12/17/64 O"

.a

_a i

Edison vill take dolivery of all such additional power and will pay therefor only i.he applicable energy chargo set forth in Section 4 (e) If Edison wishes to schedula " Peak Power" generation in addition to the 4,000 kilowatt normal generation, the amount of prior notics and number of additional kilowatts are to be ciutually agreed to; coke oven gas may be burned by Interlake in order to carry the extra generation; and Edison vill pay for such sdditional power only the applicable energy

-harge provided in Section 4

(

(f) As has been past practice in an emergency, Interlake will generate and deliver to the Edh. a on a cost basis as many kilowatts as practical.

4.

Inturlake has installed and agrees to maintain ready for operation suitable reserve equipment to the extent commonly accepted as good central station practice, so that continuous service of at least 4,000 kilowatts demand will be available. When mutually agreed, additional " Peak Power" requested by Edison will also be continuously available. Edison agrees to pay Interlake for the said 4,000 kilowatts firs demand the sua of one Dollar and Twenty-Five Cents ($1.25) per kilowatt each mon:h, Edison further agrees to pay to Interlake for all electric )

i

D D

12/17/64 O

_a s

power kilowatt hours received by it during each month, delivered as metered, and adjusted for power factor as outlined in Section 1, an energy charge computed as follows:

For. " Peak Power" as defined in paragraph (a) and paragraph (d) of Section 3, per kilowatt hour

$0.0039 For "Off Peak Power" as defined in paragraph (b) and paragraph (d) of Section 3, per kilowatt hour

$0.0020 For scheduled additional "Psak Power", as defined in paragraph (e) of Section 3, per kilowatt hour

$0.0065 The foregoing energy charges per kilowatt hour for electric power are based upon Edison's average coal cost of Six Dollars ($6.00) per ton and are subject to the following adjustment in the event Edison's average delivered coal cost for the coal delivered and consumed at the plants of Edison in the Edison service area, during the month previous to the month for which electric power is billed increases or decreases from said Six Dollars ($6.00) per tons For each full ten cents (10c) decrease in Edison's average cost cost below Six Dollars ($6.00) per ton delivered at said plants of Edison, such energy charges shall be decreased by

$0.000043 per kilevset hour, and for each full ten cente (10c) increase in Edison's average coal cost above Six Dollars ($6.0J) per ton delivered at said planta of Edison, such rates shall be increased by $0.000043 per kilowatt hour.

The average cost of coal consumed at said plants of Edison shall be determined as follows: To the weight and weighted average 7

i D

D l'2/17/M IHIo

(-

cost (as shown by Edison's coal cost records) of the tonnage of coal on hand et said plants of Edison, on the first of the month under consideration, there shall be added, respectively, ' ne weight s'nd c

weighted average cost at said plants of Edison, of the tonnage of coal received by Edison at such plante during such month. The weighted average cost at said plants of Edison, per ton of two thousand pounds, of said aggregate tonnage shall be used as the average cost per con of coal for such month and shall be the cost per ton of coal on hand on the first of the succeeding month.

For any emergency power delivered Edison shall pay to Interlake the actual cost por kilowatt hour of the generation involved.

Payment shall be made by Edison to Interlake on or before the 20th of each month for the kilowatt hours received during the preceding month and for the demand charge for the preceding rsonth.

5.

In the ovent that Interlake is at any time unable to supply its own requiroments for electric power, Edison agress to furnish such electric power, known as " stand-by" service, as is not required or being usod in the safe conduct of its own business. Said electric power is to be sold and Interlake agrees to pay for the same at the lowest published rate ochedule of Edison then in effect for similar service; the service or demand charge to apply only for the period during which Interlake is taking electric power, except that the conthly service or demand charge is to be prorated daily and billed for every day that electric power may be used for only a short time or for the entire day, and that demand or service charge where

-8

0 0

1 12/17/64 r

7 ny g'

(-

iuu A o

tutorlake usan electric pcwer more than one day in any calendar month shall be determinea by the means in effect for calculating deman.1 or service chargos at that time, and the demand thus determined shall be 1

the billing demand for all days in that month on which Interlake uses electric power.

All electric power so sold by Edison to Interlake shall be matarod at the place of delivery, to-vit: At Front Street on the

,I premises of Interlake. A meter shall be furnished by Interlake and j

shall be maintained accurately within the limits of 2L Both parties hereto shall have the right to test the meter for accuracy and, in the event of difference, joint testa shall be made. No claim for allowance shall be s?de by either party if the error in, the meter is u::t in excess of 27..

If error is found in excess of 27, payments hereunder shall be adjusted to the corrected reading for all current suld since the last previous tost, or during the sixty (60) days preceding the l

discovery of the error, whichever period is shortur, but in no event shall any adjustment be made or allowed for a period greater than sixty (60) days.

Before Interlake shall be entitled to electric power or

" stand-by" acryice, as herein provided, Interlake shall make request for the same twenty-four (24) hours prior to the time delivery is desired and Edison may, upon twenty-four (24) hours' notice, reduce the amount of electric power to be thereaf ter delivered, or may discontinue altogether the delivery of any electric power for such period as said electric power is needed in the conduct of its own t

-9

12/17/64 D 7P3 a6$

business. Edison shall not be lia r_a man pr-failure to deliver electric power under this paragraph or for the discontinuance i f any electric power delivered under this paragraph.

Edi:on agrees, however, at any time if called upon by Interlake, to use its best efforts, consistent with its own business and the demands of its other customers, to furnish Interlake such electric power as may be needed and requested under the provisions of this paragraph.

6.

In case the supply of electric power is interrupted or i

fails by reason of an act of God, state of war, fire, storm, strikes, riots, floods, insurrection, lockouts, or other causes beyond the reasonable control of either party, then such, party shall not be liable for any damages resulting from such interruptions or failure of service; provided, however, that in any such event each party shall use reasonable diligence and act as quickly as possible to restore service.

7.

Interlake is not a public utility or service company or corporation and by entering into this Agreement is not holding itself out or undertaking to furt',sh slectric power to the public or to the individual customers of Edison, and nothing in this Agreement shall in any way be construed to place Interlake under the duties, rights or obligations of a public utility or service company or corporation.

l 8.

It is understood and agreed that if the terms and conditions bereof are reMared impossible of performance by an adjudication of the Public Utilities Commission of Ohio, or any s

-10

D 9

0 12/17/64 T

O' D

. J]

1_ f a

,v.

1 governsantal authority of last resort having jurisdiction in the premises, the parties hereto shall thereby be relieved of and from further performance thereof, and neither party shall be liable to the other by reason of its failure so to perform.

9.

The effective date of this Agreement shall be 12:00 o' clock Noon, Eastern Standard Time, January 1, 1965, and thereafter this Agreement shall continue in force until 12:03 o' clock Noon, Eastern Standard Time, January 1,1975, provided, however, either party shall have the right to terminate this Agreement at 12:00 o' clock Noon, Eastern Standard Time, on January 1 of any year during such term upon giving not less than two (2) years' written notice of such termination to the other party.

The present Agressant between the parties dated December 27, 1956, shall continue in force until 12:00 o' clock Noon, Eastern Standard Time, January 1,1965, and thereaf ter no terms or provisione of said Agreement of December 27, 1956, shall be of any force or effect except for the purpose of making settlement for electric power delivered thecounder by Interlake to Edison prior to 12:00 o' clock Moon on January 1, 1965.

In the event Edison shall for any reason other than as specified in Section 6 of this Agreement fail to buy or take free Interlake electric power as provided in this Agreement or otherwise default in the performance of its obligations hereunder (except as to paymonts due to Interlake) for a period of thirty (30) days or more, Interlake shall have the right to terminate this Agreement l

t

-11

m9' O

D 12/17/4 WQ or 2

3 0

f

. h

_; b 3

isv upon ten (10) days' written notice to Edison.

In the event Interlake shall for any reason other than as specified in Section 6 of this Agreement fail to sell and deliver electric power to Edison as provided in this Agreement or otherwise i

default in the perfor: nance of its obligations hereunder for a period of thirty (30) days or more, Edison shall have the right to terminate this Agreement upon ten (10) days' written notice to Interlake.

.l i

In the event Edison fails to make payments to Interlake in accordance with the terms and conditions of this Agreement and at the cimas herein specified, Interlake in addition to all other remedies, may defor further sales and deliveries of electric power to Edison until such payments are made or Interlake at.its option may terminate this Agreement.

Should Interlake desire to terminate this Agreement for failure to make pay-sonte as herein provided, then, unless there be a bona fide dicpute between the parties hereto as to any such payments, Interiske shall serve written notice upon Edison of such intention and Edison shall have ten (10) days from the receipt of such notice in which to make the payment then in arrears; upon payment by Edison of the amount then payable to Interlake within said ten (10) day period, Interlake's right to terminate this Agreement for such failure of payment shall thereupon cease. In the event of the failure of Edison to make payment of the amostate then payable to Interlake within the said ten (10) day period, this Agreement shall be terminated.

\\

-12 l

l

6Lk lJ 12/17/64 9

I 9

Ok b.5 h

(

Any non-exorcise of the rights to terminate this Agreemet.t as provided herein shall not constitute a waiver by either party to exercise such right as to any subsequent default.

10. Neither tris Agreement nor any of the rights or obligations of either party hereunder shall he transferred or assigned by operation of law or otherwise without first obtaining the written consent and approval of the other party hereto. Such written consec' and approval may be made subject to and upon such terms and conditione

~

as either party hereto may deem necessary and proper for the protection of its rights and interests hereunder. The provisions of this Section 10 shall not apply in 'the case of any merger or consolidation as between Interlake and Acme Steel Company or as to any sale of all or substantially all of the assets of Interiske to Acme I

Staal Company or of the assets of Acme Steel Company to Interlake.

11.

Each party horeto assumes full responsibility and liability for all claims or demands caused by or arising out of the operation and maintenance of the equipment and facilities owned, operated and maintained by it, and each party shall indemnify and save l

l haralass the other party from all loss, cost or expense which may arise from or grow out of the ownership, operation and meintenance of l

its equipment and facilities including injury or damage to the employees or property of the other party.

12. Any notice herein provided or pertaitted to be served l

upon Edison by Interlake may be delivered by serving notice personally or by mailing the same addressed to the " Office of the President, The f

Toledo Edison Company, Edison Building, Toledo, Ohio."

-13

D M

'12/17/M oa1 hT f

a Ej Q

Any notice herein provided or persitted to be served upon Interlake by Edison may be delivered by serving notice personally or by mailing the same addressed to the " office of the President, Interlake Iron Corporation, Union Commerce Building,' Cleveland, obio."

A duplicace copy of such cotice shall be delivered personally or mailed to 'teneral Superintendent, Toledo Plant, Interlake Iron Corporatton, 2401 Front Stroet, Toledo, Ohio."

Each party may notify the other of a change in the person s address to which notices are to be sent and thereaf ter notices shall be so addressed.

IN WITNESS WIIEREOF, the parties hereto have caused this Agreosent to be executed in duplicate by their respective cc "porate officers thorounto duly authorized and their respective. corporate seals to be hereto affixed as of the day and year first above written.

Signed and acknowledged IITIERIAKE IRON CORFCHATIGf in the presence of:

Y 0-By y

i resident b

eird. -6

_ /C'}'-

Attest M~

'~ /;ys, liecretary THE TC EDISCN COMPANY t%

By V 6 President i

/

.. b m s Attest /fb ? (.

w' secretary v

14 I

\\

l

AMENDMENT IT IS AGREED between INTERLAKE STEEL CORPORATION, hereinafter referred to as "Interlake", and THE 'IOLEDO EDISON COMPANY, hereinafter referred to as " Edison", as follows:

1.

Interlake and Edison have heretofore entered into an Agreement dated December 22, 1952 relating to the furnishing by Interlake to Edison of coke oven gas (" Gas Agreement") and also an Agreement dated December 22, 1964 for the furnishing by Interlake to Edison of electricity (" Electric Agreement" ).

2.

Interlake desires to operate for an indefinite period of time on one blast furnace and does not wish to purchese supplemental fuel to meet its obligations under the Electric Agreement. Edison is villing to co-operate with Interlake in this regard and it is therefbre mutually agreed that the Electric Agreement is hereby amended as follows:

(a) Interlake vill not be held to a firm demand during Peak Power periods, but shall normally operate between limits of 1500 kilowatts and 2500 kilowatts during such periods.

(b) In lieu of the demand and energy charge for elec-tric generation provided in the Electric Agreement, Edison vill pay 7 5 mills per KWH for Peak Power and 2 mills per KWH for Off Peak Power. In no event, he rever, vill the average

(

unit cost of power in any one month under this paragraph 2 (b) exceed 5 8 mills per KWH exclusive of fuel cost adjustment.

(c) Edison vill pay for emergency power at actual cost of generation plus 10%, in lieu of the charge provided in the Electric Agreement for such power.

3 Interlake has also requested that in an emergency it be allowed to divert coke oven gas for its own use, and Edison is willing to permit same, subject to the conditions hsrein specified. Therefore, the Gas Agreement is hereby amended as follows:

(a) Interlake vill have the right in an emergency to divert coke oven gas for its own use; provided, however, that any such diversion during the months of November through April of any year vill not exceed a cumulative total of 72 hours8.333333e-4 days <br />0.02 hours <br />1.190476e-4 weeks <br />2.7396e-5 months <br />.

During the remaining s:.x months of the year such gas may be diverted for emergency use by Interlake as may hereafter from time to time be mutually agreed upon.

h.

This amendment to the Electric Agreement and the Gas Agreement shall become effective at 12:01 A.M. June 1,1967 and shall tenminate at 12:01 A.M. on the first day of the month fbiloving the date that Interlake

.L

)

i i

(^

resumer two or more blast furnace operations or as to each of said Acree-ments at their respective dates of temination, whichever occurs first.

The Electric Agreement and the Gas A reement shall remain in full force and 6

effect for the respective tems thereof, except as herein amended.

IN WITNESS WHEREOF, the parties have caused this amendment to be executed in quadruplicate by their respective corporate officers thereunto ilulyautgLrized and their respective corporate seals to be hereto affixed, this /7 day of ? / 1,..,

, 1967 l.1TROVED INTERLAKE STEEL CORPORATION

. !.n:

By bh l,{ W

/

y p ident N"

Attest b SwM"\\

jDept:

Secretary THE 'IOLE ' EDISON OMPANY By f.

n N._

Pr

/, y *esident'IL L l/gk

!J ' /

Attest e W

/Secretc. y Yolecio C.d: son Co.

A coro.'ed U F.p t.

Ncme Data Ener.

(td2 r,-(.t. /

Engr.

.j)/

y p -p Opt r. -dy_

i,-3-47 Land, V L elbil. W.S W / / S / O R/*

/'

Rare

4 ?n &/HT1 At?f NY f/f/R

//

t t

Confor:ned C3 t

EXHIBIT "B" CAPCO GIOUP MEM0BANDIN OF UNDERSTANDING September 11+, 1967 l

l-l l

L.

i The Cleveland Electric Illuminscing Company Duquesne Light Company Ohio Edison Company Pennsylvania Power Company The Toledo Edison Company Amendrant No. 12

-2.

CAPCO GROUP MEMORANDUM OF UNDEPSTANDING Table of Contents Introduction 1.0 Purposes 2.0 Jointly Committed Generating Capacity 2.1 Initial Generating Capacity Commitments 2.2 Subsequent Generating Capacity Commitments 30 Allocation of Jointly Committed Generating Capacity 31 Allocation of Initial Generating Capacity Commitments 32 Allocation of Subsequent Generating Capacity Commitments 4.0 Planning Principles 4.1 Generation Reserve Level h.2 Allocation of Jointly Committed Capacity k.3 Transmission Facilities h.3 1 Facilities Required During Periods A-D h.3 2 Facilities Required Subsequent to Period D h.3 3 Provisions Applicable to All Periods h.3.h Allocation of Investment Responsibility 4.4 Retirement or Placing in Cold Reserve of Generating Capacity 50 Operating Principles 5.1 Mutual Support 5.2 Maintenance Scheduling 53 Maintenance Energy Exchange 5.4 Daily Operating Capacity and Energy Entitlements from Jointly Committed Capacity 55 Operating Reserve Requirement 5.6 Daily Operating Capacity Transactions 5.7 Daily Energy Transactions 5.7.1 Economy Energy Transactions 5.7.2 Emergency and Maintenance Energy T*

4sactions 573 Other Energy Transactions within tne Capco Group 5.8 Method of Adjustment for Difference Between Estimated and Actual Reserve Margins 5.8.1 Determination of Reserve Obligation 5.8.2 Determination of Actual Reserve 5.8.3 Payment for Deficiency in Reserve l

5.8.h Provision for Changes in Maintenance Policy j

59 Transmission Losses l

4 Table of Contents (Cont'd) 6.0 Investment Responsibility for and Ownership and Financing of Jointly Committed Units 6.1 Investment Responsibility 6.2 M ttod of Discharging Investment Responsibility in First Four Units 6.3 Ownership as Tenants in Common 6.4 Financing of Capacity owned Under Tenancy in Common 6.5 Other Methods of Financing Investment Responsibility 6.5 1 Advance of Capital

~

6.5.2 Payment of Fixed Charges 6.5 3 Provision for Discharging Investment Responsibility in Unit No. 3 6.6 Method of Discharging Investment Responsibility in Units Subsequent to First Four Units 70 Policy with Regard to Companies Not in Capco Group 8.0 Withdrawal from Arrangement 90 Effect of Pbssible OE-CEI Affiliation Exhibit A Map Exhibit B Table of Ownerchip and Commitments to Provide and Receive Capacity Appendix A Determination of Group Reserves and Allocation of Jointly Committed Zar acity

4 MEMORANDUM OF UNDERSTANDING i

Introduction This memorandum sets forth the basic understandings reached by and among The Cleveland Electric Illuminating Company, Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company and The Toledo Edison Company collectively referred to in this memorandum as the "Capco Group" (Central Area Power Coordi-nation Group).

As soon as practicable the parties vill enter into a definitive agreement as to the construction, operation and maintenance of the facilities hereinafter referred to, to be in form and substance satisfactory to the parties with appropriate reflection of the substance of the matters herein set forth.

1.0 Purposes The Cleveland Electric Illuminating Company (CEI), Duquesne Light Company (DL), Ohio Edison Company which together with its subsidiary Pennsylvania Power Company shall be considered as a single entity (OE), and The Toledo Edison Company (TE) vill coordinate the installation of generating and transmission capacity on the systems of the parties in order to enable each party, on an equitable basis, to:

1.

Further the reliability of bulk pcVer supply through assurance of:

a.

An adequate reserve capacity level with reserve capacity coordination.

b.

An adequate transmission network.

2.

Take advantage of such economies cf scale as will be availabh,

i I 3 1

4 2.0 Jointly Committed Generating Capacity 2.1 Initial Generating Capacity Commitments The initial generating capacity commitments shall consist of four generating units as follows:

Unit 1 - A coal-fired electric generating unit having a net rated capacity of about 625,000 kilowatts to be designed, in-stalled and operated by OE and to be located at a site on the Ohio River. OE shall use its best efforts to provide for commercial operation by September 1, 1971.

Unit 2 - A coal-fired electric generating unit having a net rated capacity of about 625,000 kilowatts to be designed, in-stalled and operated by CEI and to be located at a site on Lake Erie. CEI shall use its best efforts to provide for commercial operation by August 1,1972.

Unit 3 - A light-water nuclear electric generating unit having a net rated cepacity of about 800,000 kilowatts to be designed, installed and operated by DL and to be located at a site on the Ohio River.

DL shall use its best efforts to provide for commercial operation by October 1, 1973 Unit 4 - A light-water nuclear electric generating unit having a net rated capacity of about 800,000 kilowatts to te designed, installed and operated by TE and to be located at a site to be selected later. TE shall use its best efforts to provide for ec==ercial operation by December 1, 1974. _

2.2 Subsequent Generating Capacity Commitments f

Following the first four units, the Capco Group shall plan to pro-vide generating capacity in accordance with the principles set forth in Section 4.1 of this agreement.

The location, type, si::e and timing of future generating units shall be determined jointly by engineering analysis using a one-system concept.

3.0 Allocation of Jointly Comitted Generating Capacity 3.1 Allocation of Initial Generating Capacity Co=mitments The following cumulative allocation, in megawatts, of the generating capacity provided by Units 1, 2, 3 and 4 is agreed upon for the periods between the dates of commercial operation of Units 1 and 2 (Period A), Units 2 and 3 (Period B), Units 3 and 4 (Period C) and Units 4 and 5 (Period D):

Period A Period B Period C Period D CEI 165 W 335 W 40 W 710 W DL 195 W WW 700 W 770 W 9

OE 175 W 350 W 715 W 1130 W TE 90 W 175 W 175 W 240 W Total 625 W 1250 W 2050 W 2850 W 32 Allocation of Subsequent Generating Capacity Comma.tments For periods subsequent to Period D, the allocation of ehtional jointly committed generating capacity shall be made in accordance with the principles set forth in Section 4.2 of this agreement.

4.0 Planning Principles b

4.1 Generating Reserve Level Sufficient capacity shall be provided so that the dependence on gen-eration reserves outside the Capco Group shall not, unless unanimously otherwise agreed, exceed one day per calendar year. Such deternina-tion shall be made utilizing the Daily Distribution of Capacity Margins Digital Program. The procedure for determination of Capco Group reserve according to the foregoing principles is set forth in Appendix A hereto.

h.2 Allocation of Jointly Committed Capacity The total jointly committed capacity shall be allocated among the parties so that each party's contribution to the reserves of the Capco Group is directly proportional to its potential use of said reserves. Such determination shall be made by applying the Daily Distribution of Capacity Margins Digital Program to each party's system on an individual basis. The jointly carnitted capacity shall be allocated a=ong the parties so that the individual ratios of positive MJ-Day margins to negative KJ-Day margins will be substan-tially equal for all parties.

The procedure for determination of the allocation of jointly ecm-mitted capacity according to the foregoing principle is set forth in Appendix A.

h.3 Transmission Facilities The parties shall jointly agree upon and provide adequate transmis-(

sien facilities to permit carrying out the arrangements described in this agreement while maintaining a high degree of operating

.A_

flexibility under a vide range of contingencies and shall agree upon principles and practices for the operation 't such facilities. Due consideration shall be given to criteria deemed appropriate by ECAR or other mutually recognized organizations.

h.3 1 Facilities Required During Periods A-D Preliminary consideration has indicated that CEI, DL and OE should be connected at 345 KV by 'the commencement of Period A, and that the existing 138 KV connection between OE and TE as

~

strengthened will be an adequate link until Period D.

Such strengthening is hereby agreed to by CE and TE with each party planning to six-vire its portion of the line between OE's Greenfield Substation and TE's Bay Shore Station se pro =ptly as is practicable or to double circuit such line if that appears necessary to the two companies'. By the commencement of Period D a 345 KV system vill be required to connect Units 1 through 4 and a major load center of each party as shown schematically on Exhibit A, hereof. It is agreed that capacity shall be made available in such

+hese facilities as are already in service, and that the otaer facilities listed belov shall be ecv9tructed and capacity therein shall be made available to the Capec 7roup. It is agreed that the allocation of investment responsibility for these facilities including lines, right of way and terminal equipment and the timing of facilities to be constructed shall be a. follows:

1.

Ser: mis-Star North, Star-Beaver and Star-Juniper (CE portion), required by the coctencement of Period A, allo-I cated to OE..

9 2.

Sammis-Shippingport and Star-Juniper (CEI portion), re-quired by the commencement of Period A; Beaver-TE Site, required by the commencement of Period D; all allocated 48% to CEI, 32% to DL and 20% to TE.

3 Shippingport-Eving, required by the commencement of Period B, allocated 2k% to CEI, 66% to DL and 10% to TE.

h.

Eastlake-Juniper, required by the commencement of Period B, allocated Th% to CEI, 16% to DL and 10% to TE.

5 TE Site-Lemoyne (or Bay Shore), required by the commence-ment of Period D, allocated 2k% to CEI, 16% to DL and 60%

to TE.

The facilities in Item 1 on the preceding page shall continue to be owned, operated and maintained by OE.

It shall be the responsibility of each party to construct, own, operate and maintain those portions of the facilities noted above in Items 2, 3, k and 5 which are locatad in that party's service area, except that other arrangements may be made by mutual agreement. The Sammis-Shippingport Line, excluding the terminal equipment at Sammis which shall be constructed, owned, operated and maintained by OE, shall be constructed, owned, operated and maintained by DL.

Where a party's invest-ment responsibility with respect to Items 2, 3, h and 5 above is not met by ownership, such investment responsibility shall be met by the making of appropriate payments to the owner to cover the annual fixed charges of the party owning such facil-ity. Such fixed charges, to be computed annually, shall be,

based upon levelized factors of cost of money, Federal income taxes, depreciation, insurance and appropriate state and local taxes. The applicable fixed charge percentage vill take into account (a) the annual net benefit of liberalized depreciation, to the extent taken by the owning company, levelized at the cost of money rate considered appropriate by the owning company, and (b) the benefit of investment tax credit, to the extent to be received by the owning company, by applying to the return and Federal income tax components a factor equal to (100 minus the composite investment tax credit percentage) divided by 100.

Operation and maintenance costs shall be allocated on the same basis as investment responsibility and shall be the subjeco of separate payments to the party incurring such costs.

The parties shall make additional studie, for Periods A through D,to determine the need, if any, for 3k5 KV facilities in addition to those listed in the foregoing Items 1 through 5, and any such facilities shall be constructed as mutually agreed upon. The investment responsibility for such facilities shall be allocated in accordance with the provisions of Section k.3.k.

OE will construct, own, operate and maintain 3h5 KV facilities extending from Shippingport to a new substation near Sharon, Pennsylvania, to be known as Shenango, thence to Highland Sub-station and from Highland Substation to a point on the existing Juniper-Canton line vest of Ravenna, Ohio, where OE vill establish a 345-138 KV substation, except that the terminal

-7

facilities at Shippingport sh'all be constructed, owned,

~'

operated and maintained by DL, and OE shall have the invest-ment responsibility for all of said facilities. Such facilities will be in service by the end of Period D; how-ever, by mutual agreement certain of these facilities may be deferred to a later date.

h.3 2 Facilities Required Subsequent to Period D For periods subsequent to Period D, the transmission needs of the Capco Group including interconnections to outside parties shall be studied jointly using a one-system concept.

The investment responsibility for the agreed upon facilities shall be allocated in accordance with the provisions of Section 4 3.k, and capacity therein shall be made available to the Capco Group. The responsibility for construction, ownership, operation and maintenance shall be determined in the same manner as in Periods A through D.

No future trans-mission lines connecting to load centers beyond the nearest major substation of any party are to be shared as to invest-ment responsibility without unantnous agreement of the parties.

4.3 3 Provision Applicable to All Periods Each party shall have the investment responsibility for ade-quate 345-138 KV transformer capacity in each period to permit it to ce ry out its obligations under this agreement.

In the event the parties mutually agree that a Capco Group function causes a burden on any party's transmission facilities, it shall be the responsibility of the Capco Group to relieve such s.

4 burden in a manner which is mutually acceptable to the parties, p.

and 'che investment responsibility for additional facilities which may be required shall be allocated in accordance with the provisions of Section 4.3.4.

4 3 4 Allocation of Investment Responsibility Investment responsibility for facilities not allocated under Section 4 3 1 which are mutually agreed to be essential to carrying out the function of the Capco Group shall be divided among the parties in proportion to the average of their annual peak loads established during the preceding three calendar years.

In the event an agreed upon Capco Group facility serves a dual purpose, namely a Capco Group function and an indepen-dent function of one or moro of the parties, then 50% of the

(

investment responsibility shall be allocated to independent use and 50% to Capco Group use with allocations among the parties made in proportion to the average of their annual peak loads established during the preceding three calendar years. For any facility, allocation percentages once determined shall apply for the life of the facility.

Where a party's investment responsibility is not met by owner-ship, such investment responsibility shall be met by the making of appropriate payment to the owner to cover annual fixed charges and operation and maintenance costa in the same manner as described in Section 4 3 1.

h.4 Retirement or Placing in Cold Reserve of Generating Capacity k

Retirement or placing in cold reserve of generating ce.pacity shall be at the sole discretion of the owning party provided that adequate 9

advance notice is given to each of the other parties to permit pro-vision for replacement of capacity required, if any, to continue to meet the reserve requirements of the Capco Group.

50 Operating Principles 51 Mutual support Each of the parties hereto recognizes a mutual interest and advan-tage in maintaining a continuous and uninterrupted supply of electric power and energy available to customers of all the Tarties hereto.

In the event of a shortage of power or energy for meeting one party's needs, after fully utilizing its own capacity to the extent practi-cable, regardless of the cause of such shortage such party shall have prior claim on any surpluses of power or energy that may be available from the other parties. The parties having a surplus shall do every-thing they reasonatly can in supplying power and energy to assist the party having the shortage including the interruption of interruptible loads.

52 Maintenance Scheduling Maintenance of individual generating units shall be carried out according to a mutually agreeable coordinated maintenance schedule which shall be developed by the parties. The following principles i

l shall be used in the development of such a schedule:

l I

i 1.

The one-system approach will be used.

2.

Contracts with outside ccmpanies covering the exchange of main-tenance energy shall be considered.

l 1

h,.

3 To the extent possible, scheduling shall be such as to minimize and levelize the monthly risk of insufficient capacity margin as 4

determined from the Daily Distribution of Capacity Margins Digital Program, and to minimize the exchange of maintenance energy among the parties.

h.

The latest official esti= ate of monthly peak loads-shall be utilized when developing the coordinated maintenance schedule.

5 The projected coordinated maintenance schedule shall be re-viewed at least annually.

53 Maintenance Energy Exchange The exchange of maintenance energy shall be governed by the follow-ing principles:

1.

Energy shall be interchanged as needed among the parties to cover scheduled and unscheduled capacity outages.

2.

Payment for maintenance energy shall be in accordance with Section 5 7 2 cf this agreement.

3 Each party shall arrange, through the use of reserve capacity installed en its system er use cf maintenance exchange energy from the other parties, to cover the maintenance of units in its system.

In the case of maintenance of a jointly co=mitted unit, each party shall make arrangements with the other parties for covering such a maintenance outage in an amount based upon the party's allocated portien of that unit.

k..-.

Pursuant to Section 5.1, each party vill use its best efforts to provide the required energy to cover the maintenance condition.

If sufficient energy is not available from the parties, out-i side contracts vill be utilized and each party vill share in the capacity charges, if any, of such transactions in propor-tion to the average of its annual peak loads established during the preceding three calendar years.

5,4 Daily Operating Capacity and Energy Entitlements From Jointly Com-mitted Capacity Each party shall be entitled to the full utilization of its allo-cated portion of capacity in a jointly committed unit, with respect i

to capacity and energy, when that unit is available and based on the actual day-by-day operating capacity properly adjusted for transmis-sion losses.

55 Operating Reserve Requirement The Operating Reserve Requirement for the Capco Group shall be determined from time to time by mutual agreement consistent with such applicable principles as may be developed by ECAR or other mutually recognized organizations. This determinction shall recog-nize the follcwing needs for operating reserve:

1.

Variation of load within the hour.

2.

Possible load forecast error.

I 3

Largest probable contingency.

ls 1

I

- 12

The composition of Operating Reserve shall be consistent with such

'7 applicable principles as may be establisned by ECAR or other mutually recognized organization?. Unless otherwise necessary to achieve consistency with such principles, the following may be utilized in providing an appropriate portion of an individual party's Operating Reserve Requirement provided that such utilization will not adversely affect the reliability of the Capco Group:

1.

Synchronized capacity utilized for interruptible load.

2.

" Quick-start" capacity.

3 Capacity provided by agreements with other systems outside the Capco Group.

An individual party's Operating Reserve Requirement for a month shall be in p*oportion to its estimated monthly peak load, excluding inter-ruptible load.

From day to day the Capco Group Operating Reserve shall be deployed i

in a manner to most effectively insure the service reliability of the Group.

5.6 Daily Operating Capacity Transactions A party's daily Operating Capacity Requirement shall be the sum of its estimated peak load for a day (EdH/H), excluding interruptible load, and the party's Operating Reserve Requirement.

For any day when a party may have a predicted deficiency in the capacity available for operation after including its commitments to and frem other systems outside the Capco Group, such party shall g

I

- 9

1 make operating capacity co=mitments sufficient to meet its Operating N

Capacity Require =ent.

The parties agree to make cvailable to each other for this purpose such excess capacity as they may have.

Operating capacity co=mitments between members of the Capco Group shall be paid for on the basis of out-of-pocket cost to the supply-ing party plus 10% but without compensation for fixed charges on the capacity involved. Settlement shall be made on a net basis and at mutually agreeable periods.

Operating capacity needed in emergency shall be arranged for in identical fashion to the above, the only difference being that the time of advence notice is reduced.

57 Daily Energy Transactions

'conomy energy transac-Energy transactions may be of three types:

e tions, emergency and usintenance energy transactions and other energy transactions.

571 Econo =y Energy Transactions Economy energy, suitably corrected for transmission losses, may be exchans between any v1111ng buyer and seller within the Capco Group.

In general, economy energy will be exchanged so as to maximize savings.

572 E=ergency and Maintenance Energy Transactions Emergency and maintenance energy transactions shall be sched-uled with as much advance notice as the circumstances permit, but may not exceed the operating capacity com:r.itments. If the energy desired exceeds the operating capacity reserves, the operating capacity reservations shall be correspondingly and appropriately increased.

The exchange of energy under this provision shall be handled on the banking principle with return in like and kind; and to the extent possible, a zero net balance shall be attained over a period. Balances remaining at the end of a period shall be paid for at the caller's option. The basis. for such payment shall be the seller's out-of-pocket cost plus 10%.

In the event of a buildup of continued and substantial L:-

balances between any two parties, it is agreed that the Capco Group will jointly review the circumstances and develop appropriate corrective measures.

~

573 Other Energy Transactions Within the Capco Group Other transactions for the sale of energy within the Capco Group may be arranged frem time to time as found desirable.

5.8 Method of Adjustment For Difference Between Estimated and Actual Reserve Margins 5.8.1 Determination of Reserve Obligation At the time of making an allocation of jointly committed capacity, each party's monthly Reserve Obligation shall be recorded. A party's monthly Reserve Obligation shall be the l

difference between its monthly Planned Capacity and its Esti-mated Monthly Peak Load (MWH/H), excluding interruptible load.

(-

A party's =enthly Planned Capacity shall be the sum of its _

allocated capacity in jointly cct:mitted units plus all of its i

other installed generating capacity and plus or minus its l

firm capacity commitments all on the same basis as used in i

Detemination of Capco Group Reserve.

t-The recorded Reserve Obligation for Periods A, B, C and D are included in the document entitled " Record of Data Used in Determining Capco Group Reserve and for Allocation of Jointly Committed Capacity" which is in the possession of all of the parties hereto and is incorporated herein by reference.

5 8.2 Detemination of Actual Reserve A party's monthly Actual Reserve shall be the difference between its Actual Capacity at the time of monthly peak load (MWH/H) and its Actual Monthly Peak Load, excluding i

interruptible load. A party's monthly Actual Capacity shall be its actual capacity detemined on the same basis as in Section 5 8.3.

5.8 3 Payment fer Deficiency in Reserve If, at the end of the third month of Period C or at the end of any subsequent month, the average of the Actual Reserve for any party for the current month and the two preceding months is less than the average of the initially determined Reserve Obligations for the corresponding months for one or more of the parties, then each such party shall be obligated to pay for the next ensuing month, an amount, to be agreed upon per kilowatt of such deficiency.

( t

t Starting with the end of the third month of Period A and continuing until the end of Period B, there shall be no pay-ment for such deficiency in reserve except to the extent such deficiency is caused by a decrease in entitlement to OVEC Capacity from that recorded in the document entitled

" Record of Data U ed in Determining Capco Group Reserve and s

for Allocation of Jointly Ccemitted Capacity", referred to in Section 5.8.1.

In such an event the amount of the pay-ment shall be based on the lesser of (a) the actual defi-ciency, or (b) the decrease in entitlement to OVEC capacity; the payment per KW shall be $1.20 per KR per month.

Moneys payable under this section shall be paid to those parties whose average Actual Reserves for the same period were in excess of their average Re - cve Obligations for such period and in proportion to such excesses. If there is not sufficient excess available to match the deficiency, payment shall be made on the basis of a reserve level belcw the initial Reserve Obligation by an s=ount (distributed propor-tionately a=ong the parties) such that each party will have Actual Reserves plus or minus kilowatts of deficiency payments equal to his adjusted reserve obligation.

5.8.h Provision for Changes in Maintenance Policy In the event any party unilaterally changes its maintenance outages by a substantial amount from those included in the co-ordinated maintenance schedule developed in acccrdance with Section 5.2, the method of adjustment of reserve margins set I

(

forth in this article shall be modified to reflect the changes in maintenance outages.

59 Transmission L v,ses Each party that transmits energy to or from any other party, pursuant to this agreement, shall deliver from its system an amount of energy equal to that which it received less the increase in electrical losses incurred on its system, or shall deliver from its system an amount of energy equal to that which it received plus the decrease in electrical losses on its system (as the case may be) resulting from the transmission of such energy.

6.0 Investment Responsibility for and Ownership and Financing of Jointly Com-mitted Units 6.1 Investment Responsibility Each party shall have investment responsibility for the capacity allo-cated to it in the first four generating un,its, provided for in

'Section 2.1 hereof, and each subsequent generating unit jointly com-mitted by the parties.

6.2 Method of Discharging Investment Responsibility in First Four Units The parties have agreed to discharge their respective investment responsibilities in the first four generating units, provided for in Section 2.1 hereof, by the net effect of (a) ownership as tenants in commen of undivided interests in said units, (b) co=mitments to pro-vide capacity from said units and (c) co=nitments to receive capacity from said units, as indicated in the Chart, Exhibit B hereof, and as further described in Sections 6.3, 6.4, 6.5 and 6.6.

6.3 Ownership as Tenants in Common l

When a party has elected to have its investment responsibility in a i

jointly committed unit represented by ownership of an undivided interest as tenant in cct: mon therein, in the event the installing party has a suitable site therefor, it shall convey to such other party an undivided interest as tenant in connnon in the land upon which the unit is to be installed proportionate to such other party's allocated portion of the capacity of such unit. In con-sideration therefor, the receiving party shall pay to the install-ing party a portion of the cost to the installing party of said land proportionate to the receiving party's ownership interest therein. In the event of acquisition of a new. site, the tenants in co= mon shall share the cost of the site in proportion to their respective ownerships.

Where a jointly ec=mitted generating unit is to be installed at an existing generating station of the installing party, the install-ing party will sell to each other tenant in ectson therein, and each such other tenant in con =on vill buy, at depreciated cost, an undi-vided interest as tenant in common in any facilities which upon installation of the jointly committed unit vill be used for both J

the existing units and the jointly ecc=1tted unit, such undivided interest to be a fractional interest in such facilities that is properly allocable to the jointly con:mitted unit. Similarly, where a generating unit not jointly co=mitted by the parties is to be installed at a generating station at which a jointly ecmmitted unit has been installed, each party owning an undivided interest in such facilities vill sell to the owner or owners of such unit, at depre-ciated cost, the portion of its undivided interest in such facilities that is properly allocable to such unit.

A i,

Any conveyance made in accordance with this Section 6 3 shall be by

/T deed in form and substance satisfactory to the receiving party, subject to such covenants, liens and encumbrances as may be accept-able to the receiving party. Each conveyance shall provide that each party, for itself, its successors and assigns, shall vaive, at least for the useful life of the improvements, its right to bring any action for partition or sale of the real property conveyed or improvements thereon. No party shall be obligated to accept any covenant, lien or encumbrances which would, in the opinion of its counsel, interfere with the bondability under its trust indenture of its expenditures for the land conveyed or improvements thereon or in connection therewith.

6.4 Financing of Capacity Owned Under Tenancy in, Common Each party owning an undivided interest as tenant in ec= mon in a jointly com=itted unit will share all expenditures for the con-struction, operation and maintenance of such unit in proportion to its ownership interest therein. Sharing of operation and mainte-nance costs including fuel vill be adjusted when full entitlement to the capability and output of the unit is not taken by any tenant in co= mon therein.

Interest charges on borrowed funds, inecme taxes, and property, business and occupation and like taxes, of each tenant in ccrmon shall be borne entirely by such tenant in common; and such items, as well as depreciaticn, amortization, and interest charged to con-struction, shall not be deemed expenditures to be shared by the tenants in co= mon in a unit.

20 -

65 Other Methods of Financing Investment Responsibility

(

Where a party has elected to discharge its investment responsibility in a jointly committed unit through the form of commitments to pro-vide capacity or cannitments to receive capacity, such investnent i

responsibility shall be discharged by one of two methods to be agreed upon by such party and the installing party.

6.5 1 Advance of Capital The party with the cot::mitment to receive capacity will supply capital to the party ca=mitting to provide capacity, at the time the unit is placed in camnercial operation, equal to the product of the actual unit cost of construction per KW (includ-ing interest during construction) and the number of kilowatts represented by its allocated share of the unit's rated capacity, plus a proportionate amount for materials and supplies and fuel inventories. The capital so supplied shall be returned at the time the investment responsibility is relinquished less the appropriate share of applicable depreciation and state and local taxes. The amount of capital to be supplied shall be adjusted to reflect the effect of the investment tax credit, if any, received by the owning campany and the net benefit of liberalized depreciation to the extent taken by the owning company so far as the facts are then determinable. A final adjustment shall be made in the m ount of capital to be re-turned to correct for any changes in circumstances or for facts not determinable at the time the capital was supplied.

The party which is co=mitted to receive the capacity will pay

(

a proportionate share of the operation and maintenance._

expenses including fuel to the party comitting itself to b

provide capacity, based upon its allocated share of the total capacity or its use of the output as appropriate to each type of expense or portion thereof.

652 Payment of Fixed Charges The party which has ccmitted itself to receive capacity will make payment of fixed charges on a corresponding amount of capacity, which is actually supplied by the party committing itself to provide capacity; such fixed charges to begin as of the date the unit is placed in commiercial operation and to teminate when the cemitment to receive capacity is relinquished. The amounts payable as fixed charges vill be based upon levelized factors of cost of money, Federal income taxes, depreciation, insurance and appropriate state and local taxes. The applicable fixed charge percentage vill take into account (a) the annual net benefit of liberalized depreciation, to the extent taken by the owning company, levelized at the cost of money rate considered appropriate by the cuning company, and (b) the benefit of investment tax credit, to the extent to be received by the owning company, by applying to the return and Federal incere tax components a factor equal to (100 minus the ecmposite investment tax credit percentage) divided by 100.

The party co=mitting itself to receive capacity vill, in addi-tion, pay a proportionate share of the operation and maintenance expenses including fuel to the party cceitting itself to pro-l vide capacity, based upon its allocated share of the total l

capacity or its use of the output as appropriate to each type of expense or portion thereof.

653 Provision for Discharging Investment Responsibility In Unit No. 3 The parties have agreed that any party which has committed it-self to receive capacity from DL in Unit No. 3 vill make payment for the same through the payment of fixed charges, the method provided for in Section 6.5 2 hereof.

6.6 Method of Discharging Investment Responsibility in Units Subsequent to First Four Units With respect to jointly cccmitted generating units subequent to the first four units, any party may at its option elect to discharge its investment responsibility by owning its share es tenant in ecmmen in accordance with the provisions of Section 6.4 hereof. However, the owning parties shall endeavor to acec=modate the desire of a party or partiet, if any, who wish to utilize eithe'r the advance of capital method (6.51) or the pay =ent of fixed charges method (6.5 2), to the extent that the increase in ownership thereby involved can be acccm-plished without adverse impact or financial burden on such owning parties.

70 Policy With Pegard to Companies Not in Capco Group Implementation of these concepts shall be designed so as to nct conflict with existing agreements and cccmitments between any system within the Capco Group and systems outside the Capco Group. This implementation shall not prevent any future arrangement cr agreement thac any system may care to make provided that such agreements do not conflict with this agreement.

8.0 Withdrawal Frcm Agreement

(

Any party may withdraw from this arrangement by giving proper notice-Proper nctice shall be such that the effective date shall not be earlier.

than the termination date of the latest jointly agreed-to capacity allo-(

cation period in effect at the time of notice of withdrawal, but not earlier than the termination of capacity allocation Period D.

In the event of such a withdrawal, each party agrees to provide and shall have the right to receive, after withdrawal, reserve backup to and from the remaining parties with respect to generating units committed pursuant to this agreement. The amount of such reserve backup shall be determined as follows:

In the event of the scheduled or forced outage of any generating unit specifically committed pursuant to this agreement, each party agrees to provide, or has the right to receive, as the case may be, irrespective of the ownership of the unit out of service, capacity and, upon request, energy, in an amount determined by multiplying the actual rating of the unit out of service by the ratio, as of the effective date of withdrawal, of its allocated share of jointly committed capacity to the total jointly committed capacity.

The payment for energy received under this provision shall utilize the banking principle set forth in Section 5 7 of this agreement.

In the event of such withdrawal, Sections 4 3 and 5 9 shall continue in

' force and effect except for the provisions of Section k.3 2 which provide for additional transmission needs, which shall become ineffective as of the effective date of withdrawal.

90 Effect of Possible OE-CEI Affiliation l

If OE and CEI shall become affiliated, then at the time the next joint

(

generating unit is committed subsequent to such affiliation, there shall

- 2h -

be detemined, for the period beginning with comercial operation of such

~

(

unit, the reduction in allocation equal to:

(a) the sum of allocations to OE-CEI as separate systems, less (b) the allocation to OE-CEI as a single combined system.

For the period beginning with the comercial operation of the first unit comitted subsequent to such affiliation, two-thirds of the above reduction shall be added to the allocation to the combined OE-CEI system and sub-i tracted from the allocations to DL and TE.

For the period beginning with the co=mercial operation of the second unit committed subsequent to such affiliation, one-third of the above reduction shall be added to the allo-cation to the combined OE-CEI system and subtracted from the allocations to DL and TE.

For the period beginning with the comercial operation of the third unit committed subsequent to such affiliation, and for all sub-sequent periods, all allocations shall treat OE-CEI as a single system.

Any other like affiliation shall be treated similarly.

In witness whereof, the parties hereto have caused this agreement to be exe-cuted by their duly authorized officers as of this lhth day of September,1967

(

The Cleveland Electric Illuminating Company By /s/

Karl H. Rudolph President Duquesne Light Company

~

By /s/

Philip A. Fleger Chairman of the Board and Chief Executive Officer Ohio Edison Company By /s/

D. Bruce Mansfield President Pennsylvania Power Company By /s/

D. Bruce Mansfield President The Toledo Edison Company By /s/

John K. Davis President

(

l' l

l E' I m

Xts ~ e M

e r

'" "]ll}g

^

l i;j:

'6

1

\\

,)

i 4

~

u A

O

\\

t^

A LMG

/

N

^^

E

= ' ' '

^

K A

= * '

L r

d

• M a

n m

n 4

'n o

o

~

S o

~

B E

7 Ca R

N g

e S-p SN p

u

~

y,,_

a o

n e

A e

N Jg a

O

.S N n u

/

s i

a S.

5 9

c

/

7 g

y s e

M

/

I e

e.

5 A

s Vs s

i

/L g r r

D M H w Q

N A D

w E

t R

E r

/

t-AT T

A s

p u E c i

t G

u u

i P n e

N V T

n o c E

I k

r H

M eB R

s I

r, O

T E I

M e

M R

a o

D 5 O

s O

E E E C

X C

a o

I w

P a

L r

S T Y

s i

A e

R. O t

L s

C s t

E P L T

s a

r

/

O c M aTH O C N

i i s R A G

m I

r O P F O

2 s a

J.

i

/

ee u

u o

A e

0 n D H 4 e A T C

2Y f[,

\\

M O'4

[l N@

A S

Y Y

0 A

1 N

\\

B%

E

[\\

D L

)

5'

^

II8I!_I E

PERIOD A PERIOD B PERIOD C PERIOD D (9-1 8-1-72)

(8-1 10-1-73)

(10-1 12-1-74)

(12-1 7-1-76)

Own Provide Receive Net Own Provide Receive Net Own Provide Receive Net Own Provide Receive Net UNIT 1 CEI O

O 165 165 0

0 0

0 0

0 0

0 0

0 0

0 DL 195 0

0 195 195 o

o 195 195 o

o 195 195 o

o 195 OE 430 255 0

175 43o 80 o

350 430 0

0 430 430 0

0 430 TE o

o 90 90 o

o 80 80 o

o o

o o

o o

o 625 255 255 625 525

~B5 3

625 625 0

0 625 625 0

0 625 UNIT 2 CEI 430 95 0

335 430 0

0 430 430 0

0 430 DL 195 o

o 195 195 0

0 195 195 0

0 195 OE O

O O

O O

O O

O O

O O

O TE O

O 95 95 0

0 0

0 o

o 0

0 625 95 95 625 625 0

0 625 625 o

o 525 E$> UNIT 3 i

CEI 0

0 10 10 0

0 0

0 DL 380 50 0

330 380 o

o 380 OE 420 135 0

285 420 o

o 420 TE O

O 175 175 O

O O

O B55 IB5 185 B55 B55 0

0 B55 UNIT 4 CEI 380 100 o

28o DL o

o o

o OE O

O 280 280 TE 420 180 0

240 B55 EB5 ifB6 B55 TMAL CEI O

O 165 165 430 95 0

335 430 o

lo 440 810 100 0

710 DL 195 o

o 195 390 0

o 390 770 50 0

720 770 0

0 770 OE 430 255 0

175 430 80 0

350 850 135 0

715 850 0

280 1130 TE O

O 90 90 o

o 175 175 o

o 175 175 420 180 0

240 625 255 255 625 1250 175 175 1250 2050 155 IB5 205o E835 3B5 E85 3555

APPENDIX A m

t

~

Determination of Group Reserves and Allocation of Jointly Committed Capacity 1.

Determination of Group Reserves The timing of additional generating capacity for the Group shall be determined in accordance with principles set forth in Section 4.1 of this agreement. Specifically, input data for this purpose shall be treated as follows:

a.

Estimated Monthly Peak Loads The estimated monthly peak load for the Group during the period under study shall consist of the summation of each party's of-ficial estimated peak load for the month, excluding interruptible load (MWH/H). No diversity is to be accounted for at this time, b.

Monthly Peak Duration Curves The monthly peak duration curves for the Group shall be based upon mutually agreed upon load data for the 21 highest daily peak loads for each month.

c.

Common Method of Rating System Capacity Procedures including periodical testing shall be established to determine the rating of generating capacity on a cot =ca basis for each month of the year. Such ratings shall be u e.d for the pur-poses set forth in this agreement.

d.

Generating Unit Availabilities Unit availabilities for the Group shall be based upon a mutually I

agreed maintenance schedule and random outage rates. _

(1) Group Maintenance Schedule A mutually agreed maintenance schedule shall be developed jointly by the parties fo the period under study consistent with the principles set iorth in Section 5 2 of this agruement.

(2) Random Outage Rates A mutually agreed Random Outage Rate for each unit shall be developed. The Randem Outage Rate accounts for all the time the unit would be unavailable during the year (during the period included in the load model described under the fore-going Item 1-b) which cannot be scheduled u year in advance.

A unit's Random Outage Rate would normally consist of the 1

summation of its Forced Outage Rate, plus its Short Term Scheduled Outage Rate based upon the most recent 5 years' experience.

2.

Allocation of Jointly Committed Capacity Allocation of jointly committed capacity shall be made in accordance with the principles set _ forth in Section 4.2 of this agreement as follows:

a.

Allocation Technione A hypothetical evaluation shall be made for each party within the Group as if it were operating on an individual basis to thus eval-l l

uate a party's contribution to and its potential use of the Group reserves.

c.

b.

Jointly Committed Units

~,

To simulate, in the hypothetical individual evaluation the mutual responsibility of all parties backing up each jointly committed unit, all jointly committed units shall be assigned to each individual system on a pro rata basis by simulating each such unit as though it were made up of four smaller sized units, one on each party's system.

The size of each of the hypothetical units for a party is determined by multiplying the actual unit rating by the ratio of that party's allocated share of jointly committed capacity to the total jointly ecmmitted capacity. Each of these hypo-thetical units carries the sa=e random outage rate and main-tenance cycle as the actual unit.

c.

Individual System Input Data Individual system input data for allocation purposes shall be the same as supplied for determination of Group reserves, except as specifically modified elsewhere in this Section.

d.

Maintenance Schedule l

For the allocation techniq.ue a hypothetical individual mainte-nance schedule shall be developed. The maintenance schedule for each party shall be based upon the joint maintenance sched-ule used in the determination of Group reserves, so that the same total amount of maintenance is simulated. Ecwever, the tim-ing of the maintenance of those machines on a particular party's individual system shall be rescheduled to allow the capacity re-sources of each part> to be evaluated in the most favorable man-ner without any restraint Leing imposed by association with the Group..

~

l Each party shall be charged with the maintenance responsibility of each jointly committed unit only to the extent of its pro rata share of said unit.

e.

Sammis 6-Avon 9 Contract To simulate the mutual backup contract involving the Sammis 6 and Avon 9 units, these units shall be represented in the CEI and the OE individual evaluation as two 312 5 MR NRC machines for each sys-tem properly evaluated to reflect the simultaneous OE and CEI loss of capacity for an outage to either unit.

f.

Contracts for Maintenance Energy Utilization of contracts for maintenance ener6Y that each party

~

has with companies outside the Group shall be treated in a manner most advantageous to that party.

EXHIBIT "B" POWER AGREEMENT Among The Toledo Edison Company The Cleveland Electric Illuminating Company Duquesne Light Company Ohio Edison Company Pennsylvania' Power Company May 29, 1969 This Agreement entered into this 29m day of May,-

1969 by and among The Toledo Edison Compan'y ("TE") on the one hand and The Cleveland Electric Illuminating Company ("CEI"),

Duquesne Light Company ("DL"), Ohio Edison Company and Pennsylvania Power Company, a wholly owned subsidiary of Ohio Edison Company, which company and its said s'ubsidiary are considered as a singic entity for purposes of this Agreement and referred to as "OE",

on the other hand, CEI, DL and OE being hercin sometimes collectively referred to as "Other Companies".

I' l

Amendment No. 12

WITNE SSETH :

1.

The parties hereto are all engaged in the genera-tion, transmission and distribution of electric power and energy and their systems are interconnected directly or in-directly.

All of the parties hereto are also parties to the Capco Group Memorandum of Understanding, dated Jeptember 14, 1967 ("Capco Memorandum"), which contemplates coordinated action to provide the capacity requirements of the parties, including the installation of generating and transmission facilities as required for future periods and specifying the i

facilities to be brought into operation through 1974.

It now appears that during the period. October 1, 1973 through December 31, 1974 (" Period CP") the aggregate of the capacity requirements of the parties will be in excess of that which will be available from the generating units to be brought into operation pursuant to the Capco Memorandum during such years and from other resources now expected to be available to the parties.

In order to assure additional capacity to the extent specified in Section 2, the agreement described in Section 2

i 1

is to be entered into and the agreements herein contained are made.

2.-

Prior to June lo, 1969 TE will exercise the option it now has and will make a Short Term Power Reserva-tion under Service Schedule D to the Operating Agreement among TE and Consumers Power Company and The Detroit Edison Company (" Michigan Companies"), dated as of March 1, 1966, providing that the Michigan Compar.ies will sell and deliver and TE shall be entitled to call for 200,000 kilowatts of electric power ("Short Term Power") and' associated electric i

energy ("Short Term Energy") for Period CP and that TE shall pay therefor at the rates provided in said Service Schedule D.

Said Reservation shall be in the form of Exhibit A attached hereto, with blanks suitably filled in.

The Other Companies have copies of said Operating Agreement, including Service Schedule D thereto.

Said Reser'ation and the related Operating Agreement and Service Schedule D thereto are herein referred to as the " Michigan Schedule".

Promptly after acceptance by the Michigan Companies, TE will supply each 1

s,

~

?~

(

of the Other Companies with a photographic copy of the Short Term Power Reservation.

3 During Period CP said 200,000 kilowatts of Short Term Power and related Short Term Energy shall be used by TE and/or the Other Companies in the amounts determined pursuant to the following provisions of this Section 3:

(a)

The Parties are currently engaged in a program of testing their generating units and reviewing the representation of OVEC entitlements to dete:uine more accurately their load carrying capabilities.

When such tests have been completed and net rated capacities and the representation of OVEC entitlements for Period CP agreed upon, and in any event no later than the date of agreement upon the size and timing of Unit 5 4

pursuant to the Capco Memorandum, a redetermination of the capacity deficiencies of each party for the Period i

CP shall be made, using the same principles and methods and input data as used in determining the deficiencies of the parties for said Period as shown in the document i

i 8

4

(~.

entitled " Record of Data Used in Determining Allocation 4

of Purchased Power in Period CP",

dated May 26, 1969, copies of which have been delivered to each of the parties, except that there shall be used the net rated capacities of the generating units and the representa-I tion of OVEC entitlements of the parties for said Period as so determined and agreed.

(b)

Each party'shall be entitled to call upon TE and will pay for Short Term Power during Period CP in an amount determined by multiplying 200,000 kilowatts by a fraction of which the numerator is the deficiency of capacity of such party for Period CP and the denominator is the aggregate of the deficiencies of the parties for Period CP, all as determined pursuant to subsection (a) above, provided that a negative deficiency shall be di.sregarded.

(c)

In the event of inability to agree on capacity deficiencies pursuant to subsection (a) above, on or before August 1, 1973, TE will sell and deliver i

_5

(.

and each of the Other Companies shall be entitled to call upon TE and will pay for Short' Term Power during the Period CP in the following enounts:

CEI ten thousand kilowatts, DL fifty-five'thousand kilowatts and OE twenty thousand kilowatts, and Short Term Energy up to said amounts, all within the limits provided in and as defined in the Michigan Schedules.

4.

Delivery of electric energy under this Agreement shall be nade by TE at the point of interconnection of the 138,000 volt transmission line of TE and OE in Ottawa County,

(

Ohio and at other delivery points and voltages as agreed upon; by OE to DL through the Sammis-Shippingport 345,000 volt transmission line provided for in the Capco Memorandum and other ' delivery points and voltages as agreed upon by OE and DL;'and by OE to CEI at interconnection points then existing between OE and CEI.

Each of the parties will make availabic its transmission facilitie,s and those contemplated by the Capco Memorandum to permit carrying out the arrangements described in this Agreement.

i

i Metering shall be in accordance with the then existing opera-ting practicesoof the parties.

Each party that transmits energy to any other party pursuant to this Agreement, shall deliver from its' system an amount of energy equal to that which is received for delivery to another party, plus or minus the decrease or increase (as the case may be) in

~

electrical losses agreed to appropriately reflect those expected to be incurred on its system resulting from the transmission of such energy.

5 Each of the parties hereto, shall to the best of its ability operate its generating stations and trans-mission system so that its reactive load and its appropriate share of the reactive requirements associated with the delivery of electric energy under this Agreement will be carried by its own system and not by the system of another party.

The parties recognize that, in the carrying out of this Agreement, there may be times when the system of one party may impose undue reactive' load and/or reactive requirements upon the system of another party, and the parties

(

agree that in any such event they will confer and endeavor to work out such changes in operating procedures as are necessary to alleviate such condition or, upon failure to do so, enter into and carry out an arrangement whereby the party or parties being so burdened will be appropriately compensated for carrying such reactive load and/or reactive

~

requirements of the other party.

6.

The number of kilowatt-hours of Short Tern Energy to be delivered to each of the Other Companies and the time of delivery, subject to the limits specified in t

paragraph 3, shall be scheduled by each of the Other Com-panics by advice to TE as required by TE to enable it to comply with the provisions of the Michigan Schedule.

The number of kilowatt-hours of such Short Term Energy so sched-uled during each clock-hour shall be recorded by.TE.

The aggregate number of kilowatt-hours of Short Term Energy so recorded for any month shall be used for the purpose of effecting billings and payments under this Agreement for such month.

Each of the parties shall exercise due diligence and

o-reasonable care and foresight in arranging for and operating their respective power sources so that amounts of Short Term Energy shall be delivered and taken in accordance with such delivery schedule's.

7 In addition to records provided for in para-graph 6, the parties shall keep in duplicate such other records as may be needed to afford a clear history of the various deliveries of electric energy made by one party to the other and of the clock-hour integrated demands in kilowatt-hours delivered by one party to-another.

In main-taining such records, the parties shall effect such segrega-tions and allocations of demands and electric energy delivered into classes representing the various service-and conditions as may be needed in connection with settle-ments under this Agreement.

The originals of all such records shall be retained by the party keeping the records and the duplicates shall be delivered monthly to each other party affected except as t'he parties may' agree upon a different time interval for such delivery.

t.

t 8.

Each of the Other Companies shall pay TE for the Short Term Power, if any, to which it is entitled and for the Short Term Energy, if any, scheduled for it at the rates specified in the Michigan Schedule.

TE shall bill each of the Other Companies entitled to Short Term Power and Short Term Energy hereunder promptly after receipt of the monthly bill from the Michigan Companies and each Other Company shall make payment to TE on or before the date it is obli' gated to pay the Michigan Companies.

The pa'yments by each of the Other Companies shall be such that TE shall be reimbursed by each of the Other Companies for the portion of each total monthly payment TE is required to make under the Michigan Schedule as follows:

the portion of the total charge for Short Term Power determined by the ratio of the amount, if any, of Short Term Power to which such Company is entitled for the month to 200,000 kilowatts, plus the a6cre-gate of the hourly charges for Short Term Energy determined on the basis of the rate charged under the Michigan Schedule for each clock-hour multiplied by the number of kilowatt-

=

hours, if any, of Short Term Energy scheduled for delivery to such Company during each of such clock-hours before adjust-ment for losses.

9 If at any time during the term hereof there should be levied and/or assessed against TE any direct tax by any taxing authority on.the Short Term Power and/or Short Term Energy sold or purchased by TE, in. addition to or different from the forms of such direct taxes now being levied and/or assessed against TE or any increase in the rate of such existing or future direct taxes, the amount of such tax or additional tax shall be paid to TE by each of the Other Compa'nics with respect to the services provided to each hereunder.

10.

The obligations of TE to furnish the services herein provided shall be subject to acceptance of said Short Term Power Reservation and performance by the Michigan Companics of their obligations under the Michigan Schedule.

11.

The obligations of each of the parties here-under are subject to obtaining any requisite approval of 1

O any governmental authority having jurisdiction.

IN WITNESS WHEREOF, the parties hereto have caused this A6reement to be executed by their duly authorized officers as of the date first above written.

THE TOLEDO EDISON COMPAN,Y By e.

8 THE CLEVELAND ELECTRIC ILLUMINATING COMPANY 0)YY tsd By '

/

U

~

DUQUESTE LIGHT COMP NY By dl N6 ju.

i-<

gg VV OHIOEDIS(JCOMPANY

, Q *;iC %

• D'>, w tL- -

By

/

PENNSYLVANIA POWER COMPANY Q <g m

_ r _ r-By

)

S!! ORT TERM POWER RESERVATION D-3 EXHIBIT A 1969 0

THE TOLEDO L' E lO) Q M (0) % COMPANY 420 AIADINON AWNUIC *'I1)t.EDO.OlllO 43608

• 4410) 242-fW38

, 1969 Consumers Power Company The Detroit Edison Company 212 West Flichigan Avenue 2000 Second Aven'.e Jackson, Michigan 49201 Detroit, Michigan 4.8226 Gentlemen:

The Toledo Edison Company desires to arrange for a reservation of Short Term Power from the Michigan Companies under Servico Schedule D of the Operating A rcement dated 6

March 1, 1966, among Consumers Power Company and The Detroit

(,

Edison Company and The Toledo Edison Compan'y.

The Toledo Edison Company proposes that it be entitled to call for 200,000 Kw of Short Term Power from the Michigan Companies for a period beginning October 1, 1973, and extending through December 31, 1974.

The normal desired schedule of delivery of such pouer shall be from approximately 8: 00 a.m.

to 11:00 p.m.,

which time period shall be based on the time prevailing in The Toledo Edison Company's service area.

Any deviation from this schedule will be that mutually a6rced upon by the Operating Committee of both parties.

The Toledo Edison Company recognizes that delivery of the capacity so reserved is subject only to the Michigan Companies first meeting the firm demands of their electric customers.

The Michi6an Companies will make every effort to fulfill this reservation from their own resources or from other resources which may be available.

Compensation for the supply of Short Term Power and Short Tern Energy shall be made as provided in Section 3 of Service Schedule D.

(

1 E LoJ 0 5=N Co) 0%0 cosmxw rus routoo

~

420 AIADIMON AVF,NUE *1V)LEDO.O8830 43*H)$ = (4163) 242-8738 t

Consumers Power Company 1969 The Detroit Edison Company Page 2 It is understood that in determinin6 out-of-pocket costs for energy supplied under Short Term Power reservations, it is your intention to determine costs in the chronolo61 cal order in which such reservations are made and before diversity or maintenance exchanges.

If you agree to this proposal for the reservation of Short Term Power set forth above, please so indicate by signing and returning one copy of this letter to The Toledo Edison Company.

l Yours very tr.uly, THE TOLEDO EDISON COMPANY By:

President ACCEPTED ON THIS DAY l

CONSUMERS POWER COMPANY THE DETROIT EDISON COMPANY By:

By:

H. R. Wall, Senior Vice W.

G. Meese, Vice President President

(

em-EXhTBITCEI-8-1(b)

CONF 01GED A!G HD:GI!? NO. 5 0

NHEEl'S, The Cleveland Electric Illuninating Company, hereinafter called the "Pcucr Company", and Union Carbide Corporation, hereinafter called

" Union Carbide", have entered into an Interchange /. gree:.ent, dated September 1, 1962; and WHEREAS, said Interchange Agreecent was crended by Amendment No.1, dated August 13, 1954 (cancelled rarch 15,1965), Ame'ndrent n.o. 2 dated March 1, 1965 (cancelled July 1,1966), Amendment Ifo. 3, dated July 1,1966, and le.endment No. 4 dated February 19,1968 (cancelled July 9,1968); and WHEREAS, the parties desire to again amend said Interchange Agreement to provide for the furnishing of additional interruptible power by the Pow'er

~

j Company to Union Carbide; If0'f, TEREFORE, in consideration of the premi'es and of r.mtual agreements s

g hereinafter contained the parties agree as follows:

i.

Section 1.

Amendment No. 3 is bereby cancelled effective the date 4

hereof.

Section 2.

The Power Company will supply Interruptible Pcuer to Union I

Carbide in accordance with rates, terns and conditions as follows:

A. -Interruptible Pouer will be delivered to Union Carbide only during such I

times as in the sole,judg=ent of the. Power Company such power is available.

Union Carbido agrees that its operating charceteristics are such as to pernit interruption of the supply of this Interruptibic Pouer withcut notice cud for indefinite periods of time.

6 h

e r

e-

,+

L B.

The Power Company will oun, and caintain at its cost, facilitics in accoidance

{

with a'ccepted high voltcge standards, with an electrical capacity of 100,000 Kilovolt-/.mperes. The ownership and maintenance responsibilitics of other existing interconnection facilities shall remain as provided for in the Interchange ' Agreement.

C.

Union Carbide shall, to the extent practicable, provide a ucekly schedule to the Pouer Company of the capacity which it desires to use during the succeeding calendar week. The furnishing of such schedule by Union Carbide is for the convenience of the Power Company in planning system operation and s,

shall not affect any pay =cnts to be made under this Amendment. In turn, the Power Company shall, to the extent practicable, inforn Union Carbide of any known periods when Interruptible Power will not be available. The Power Company will endeavor to give Union Carbide as much advance notice as possible of the time and duration of the interruptions or curtailtents of service hereunder,

/

but it reserves the right to interrupt or curtail Union Carbide's service without notice if in the Peter Company's sole determination such interruption or curtailment is desirable or necessary.

D.

" Condition A" hours are defined as the periods between 8:00 Ali and 4:00 PM Cleveland Time, on weekdays.

" Condition B" hours are defined as the periods between 4: 00 PM and 10:00 PM Clevele.nd Time, on weekdays cnd the periods between 8:00 AM and 12:00 noon on Saturdays.

" Condition C" hours are all other hours including the following holidays: IIeu Yctr's Day, Decoration Day, July 4th, l

i Labor Day, Thanksgiving D y and Christnas Day, and cny.other days as may be deternined by the Pouer Company.

\\

E.

The interruptibic power hereunder shall be furniched under the follouing

(

retcs and charghs:

?!,500.00 per conth Customer Charge 4

Ener6y Cherge --

Kuh used during ",A" hours

$.0065 per h h

, a"

.0055 o

n "C"

.0045 Fuel Adjust:r.ent:

• l '.

If the weighted average cost of fuel for electric generation for the calendar raonth preceding the billing date, ascertained by the Comparrf and filed monthly with the Publ'ic Utilities Cor.r.tission of Ohio is above or below $6.80 per ten of 2,000 lbs. of coal or its equivalent in heat content of other fuel, the energy charges

/~

specified above shall be increased or decreased $.000005 per ':wh for each full one cent by which the coct of coal is above or below $6.80 per ton..

The cost of fuel used in ascertaining such veighted average cost of fuel for electric generation shcl1 include the invoice cost, all transportation, switching and demurrage charges, and drying or other costs incident to the coc1 pipeline.

. (

e a

w Minitt: Bill A minicum charce shall be paychle monthly at the rate C

of $15,000 per e.onth plus ?.50 per hilowattf or contract derand per month. The contract denand shell be the hichent 30-cinute kilouatt dete.nd registered during "A" hours in the 12-month period endin; with the current conth exclusive of de: ends registered prior to the effective date of this agreement, but shall not bc less than 15,000 kilowatts. The contract deca:M shall not exceed 25,000 kilowatts except by nutual cgreecent.

In the event service is interrupted or curtailed, during "A", "B" or "C" hours, as provided for above the minimum monthly charge shall be reduced in the scre proportion that the total nunber of hours of such interruption or curtail-mentbearstothetotalrgperofhoursinthebillingperiod.

Union Carbide may elect to canec1 the ini,erruptible power under this Section upon not less than six months' prior written notice, effective after a one-year initial contract period.

Section 3 Any unscheduled energy flou from'the Power Company to Union Ccrbide shall be considered as Interruptibic Fowe$. Any unscheduled energy furnished to the Power Company in a given conth shall be considered as Incidental Pouer.

Any Incidental Power balance,at the end of ecch calendar year shall be settled'at the rate of $.00+5 per kiloratthour, provided, however, that the parties by natual careement cay provide for the return of such power in kind, at timec agreed to by the Cparatins Co =ittee.

To the extent this /cendment conflicts with Article V, Section 4 of the Interchange Agrec ent between the parties dated Septer.;ber 1, 1962, the provisions of the,/rendment shc11 be controlling.

Sectien h.

Union Carbide acrecc to supply Tzar;;ency Pouer to the Power Company, in cn n= cunt up to a ranirum of 100,C00 hi2 cratts thron;;h Sc.p-ter.ber 30,19/3 and up to 25,000 kiloratts therer.fter, cs crailabic, on the un-

_14 6

e

scheduled requcot by the Pouer Company, for perieds not, to exceed five (5) consecutive vechdays (excluding Saturday and Sunday) upon any such request,

^

in the event of failure of the facilitics of the Pouer Company and its inability to prompt 4 obtain electric energy under the terns of contracts it may nou,or hercafter have with other electric utilities, thus crea'41., an emergency within~

the meaning of the Federal Pouer Act, which emergency would force Power Company to cut off or curtail electric service or would render Pouer Company unabic to provide adequate service for its customers, thus requiring ir=ediate action by Power Company to obtain Emergency Pouer,(grovided, however, that Power Company

~

will first interrupt pouer supply to all of its interruptible loads, and pro-vided further, however, that said supply of Emergency Pouer from Union Carbide will be immediately disconnected when and to the extent power is otherwise obtainable and obtained by Pouer Company from sources available to it.

Power Company vill use overy reasonable effort to obtain such power. During the time I

when Union Carbide is furnishing Emergency Power to the Pouer Ccapany, it shall not furnish maintenance Faer as specified by the Interchange Agreement between the parties dated Septen.ber 1,19o2.

Such Emergency Pouer vill be furnished as herein provided through a connection installed by Pouer Company, at its sole cost and expense, between Union Carbide and Pouer Company, which connection, although having appearance of permanent physical and electrical characteristics, vill be used for the transmissien of poner from Union Carbide's generating equipnent to Pouer Company only during the continuance of the emergency requiring the furnishing of such E.crgency Pouer and thus for that purpose shall be e. temporary connection, and then not used fer such purpose shall be considered to be disconnected and thus discontinued, f'

_5 l

If the furnishing cf hergency Pouer as herein provided should subject Union Carbide to jurindiction of the Federal Power Corniscion or any other governmental agency, federal, state, rainicipal or otherwice, Union Carbide r

shall have the absolute right to terminate this A.cndment Ho. 5 frec and after the time of the assertion of cny such jurisdiction. The Interchange AgreEnent dated Septe.ber 1,1952, but no anendments thereto shall continue in full force and effect. It is further agreed that if said right to terminate is exercised by Union Carbide and upon reque.st by Union Carbide, the Power Company will continue to make interruptible power available in an amount equal to the average '

C sconthly demand of the preceding 12 monthf'at rates and under terms and conditions as may be then :mitually agreed upon between Union Carbide and the Power Company.

In the cycnt the total demand of Union Carbide for interruptible power should exceed such everage monthly demand the Power Company will supply such excess, if available, at rates and under terns and conditions as may be then mutually agreed upon between Union Carbide and the Power Company.

/

Any Emergency Power so received by the Power Co. ~ ny shall be credited against and deducted from the kilowatthours furniched by the Power Company as Interruptible Pcuer during like Condition hours in determining the final amount of each monthly bill. In the event that Emer5ency Power exceeds Interruptible Power in any month, the balande shall be carried forward and applica in 31ke manner as a credit against billings to Union Ccrbide for Interruptib1'. Pouer in succeeding months.

Section 5 In additidn to and without limitation of paragraph (3) of the General Eules and Regulations of the Pouer Company, Union Carbide agrees to assure.e responsibility for, and vill save the Foucr Comp:ny harmless from all costs, chargcc cn1 expenses arising directly or indirectly from any and all liability, et.uces of action, suite, claims and denud: thatsoever in lau or s

equity, for injurica to percons, including but not liuited to licencces, <

invitces, guests, egents and ecployces of Union Carbido, dchages to property,

/

or losses, arising out of the use, interruptions, curtai hent, imperfection or disconnection of e3cetric service supplied by the Power Company, thether oi-not caused or clained to be caused either whony or in part by the acts or omissions of the Power Company, but nothing contained herein will relieve the Power Company of liability for such injurics, damages or losses which do not e

arise out of the use, interruptions, curtaikent, imperfection, or disconnection 1,

• of electric service supplied by the Power Company caused by the negligent acts or omissions of the Power Company or its agents ol employees.

Section 6.

The rates, terms-and conditions herein contained pertain to Interruptible Power, Incidental Pouer, and Emergency Power.

" Start-Up Power" will continue to be furnished by tht. Power Company and " Maintenance Power" will continue to be exchanged between the parties, as called for by the Interchange Agreement between the parties dated Septe=ber 1, 1962.

Section 7.

Except as and to the extent that this Amendment shall be terminated pursuant to the provisions of Section h hereof, or portions of this

/cendnent are cancelled pursuant to the provision of Section 2 hereof, this Amendment shall be and renain in full force and effect unless or until terminated.

by either party upon not less than two years' prior written notice, su'ch notice to be effective not earlier than. September 30, 1974.-

The first' paragrsph of /.rticle VI of the Int 3rchange Agreement dated September 1,1962, is hereby amended to ca: form to the cancellation provisions provided herein.

r,cetion fl. Thic /.nendment shall not be assigned by either party r '-

without the written consent of the other party and shall ndt take effect until filed with and approved by the Public Utilities Com. ission of Ohio, it being understood between the parties hereto that after said filing and approval, the rates and terms and cond'.tions contained therein shall at all ticos insofar as the Po. er Company is concerned be subject to such supervision, regulation and centrol as may be provided by law or the Public Utilities Commission of Chio, and any other public, officer, body or authority having

. *a.

regulatory poner over the Power Company whether or not such supervision, regulation and control are invoked by the Potter Company.

IN WITI ESS WEREOF, the parties hereto have duly executed this Amendment I!o. 5, as of this 30th day of ScPtember

, 1969 ATTEST:

THE CLEVELtJ;D EkICTRIC ILLUIHIIATII!G COMPldTI (SEl.L)

/s/ William R. Vogelsang By /s/ R. U, Uyman Secretary Vice President - Marketing Title ATTEST:

UITICII C/2 BIDE CORPOPl. TION (SEAL) l

/s/Her.onEvit ny /s/ U. B. Ilicholson l

ASA; int &DE L2CICLEr/

Vice President l

Oitle

.8-4

w --~_

EXEIBITCEI-8-1(c) r Amendment No. 6

\\

This "An:endment No. 6" is entered into by and between The

~

Cleveland Electric Illminating Co=pany, hereinafter called "the Power Company", and Union Carbide Corporation, hereinafter called " Union Carbide";

Witnesseth WHEREAS, Union Carbide and the Power Company have' heretofore entered into an " Interchange A reement" dated September 1,1962, as most 5

recently amended by Amendment No. 5 dated September 30, 1969; and WHEREAS, Union Carbide and the Power Co=pany desire to again amend said Interchance A reement as amended in order to conform the fuel 6

-l clause therein contained to that included in the Company's Filed Rate Schedules, and thereby also provide more accurate calculations of costs of coal and other fuels; NOW, nutuCRE, in consideration of the pre =ises, the parties hereto agree with each other as follows:

j I

That A=end= ant No. 5, Subsection E, Section 2, under the sub-heading " Fuel adjustments" of the Interchange A6ree=ent between tue pari,ies dated September 1, 1962, be amended to read in its entirety as follows:

" Fuel adjustments If the weittted average cost of fuel burned for electric l

generation for the second calendar month precedin6 the O

0 0

billing date, ascertained by the Cocpany and filed vo1 monthly with the Public Utilities Cenmission of Ohio, n g-I

_ )].1.

_a

~L EXHIBITCE-8-1(c)

(CC::FCE'.2D)

(

a..:.:~

.a: nu.a:..:.,

..x GIS AGEI'2:C =ade and entered 1..to es of this ist day of I

l Se; tester,19c2, by and betveen 5C C'IT.".C:3 ZI2C5CC IIID:I:iAM:*G CC'GA*.'f, a corporation organi:cd and existing under the icvs of the i

e State of Chio, hereinafter called the " Fever Company", and UNION 1

i CAEI:3 CCEF02' CON, a corporaticz. organized and existing under the I

laws of the State of New York, hereinaftei called " Union Carbide".

1

-.r.._.ee m_..

n

'42EAS, the parties to this cgreement age currently oper-i

,(

ating under an Int.erchcnge Agrcement, dated :~ovember 17, 1949, as amended February 9, 1953 and as again acended June 13, 1955, and 7.'E.:'.EAS, the parties hereto desire to terminate said contract 4

i of Novenber 17, 19L9, as a: ended, and

• ~-2 EAS, the parties hereto desire to. enter into a nev Interchange A reement in substitution for said contract of November 17, 19k9, as : ended; NO'a', CIEFCE, 1: :::iderction cf the prc ices and of =utual l

00vensn.3 :n1 agre::e s hereinafter cantainad, the parties hereto agree

. s.s

...,. a s

,v,,...

-a.

a...

O' D

D ob m.

O A

u R< )]

h

s O

r i

ja-n..C+

.r.

• =.v =. wwp.e n **.-=.w. u- ?

m...e *v...ro c 5=.tC.*,b'm I. *.* =*.m_ 9. Om.. ~...

4 E

Caetic. 1.

I 70; cc.i deri - the tem of this A.,es:= t, cui ir. c cordance v3.th 107, ta:::s cri provicions, th: ?ouar C =;:.=7 c 1 Union C= bide

.:." iy sc ce to operato ucr=117 intere ::::ted '_th ecch other cri to interch: p vith each other olcetric c cr;y as a: fin:d in Articlo V horcof.

If ?over Cc pany shoulf. ct c=y ti=a tr-

't cicetric c ersy c: erstei ty it c.si/cr cecaired by it under this A; rec =2 t c:d/or fec:2 c:y othar cour : in 'interstats c rec, Union Ccrbido 05:11 hava ths e

ritht cri cptics forthvith to.cccc 1 cni te::.insta this Agee:: t.

... s l.

k If it CYor 8*ht11 he dotcT ined by : 7 cc.*.rt er CC :.07 h ViLG juri:lictics of tha cub'cet =stter that, ty virtue of this Acce=ent, Unica C= bids is subject to recal: tics or centrol cf : 7 cort c a publ.i: utility cr o+Neiss, or that the chetric c :errtiss s% tion er othar :"::ilitics o-ni by Unic C::bii: ce the c? : tics of cuch statics cr c'*---* fc.cilitis are subject to cid rocci. tics ce ce?.rol, the: 'lis Age::=ent W-distaly AM b::c= void =i of so effect. ~'c;rther, if c:.y pr::::iin;, : : Cul;7 is.titut:1 to ct300 t Ur.ic: C::/ ide or cuch c:::re. ting station or fccilities to cuch regale. tics by re=ca c:' this Ap:--'--i er to 1:qc:s or h-y : t:r. ca the busi=: er c: os resci.ts of Unic C:.:icida or c th: fa:. i.'-

.; cf ch:tria. crc:: ty U.in C=tida to ?:V= Cc ?r;::;* uni:r thi: AC.v.c=::t er if U.ic C:.:/ ii: ch:uld hava oder recrc th ccu:o ta cu:;oca th t it =7 t: Outjc:t to vd. :;.:.latio:

i D P' P D

1 ew D

a A

o C

d 1

or ta:c.tica, then Union C= bide =y terni sta thic Acrac=: ' at c y

<s, ti:: thereafter effceti upon delivery of vritten notico of such ter-nination to ths Power Co=pc=y.

Section 2.

All electrical c=ercy dalivered by tha Pover Cc=pany to Union Carbide and received by the Povar Cer,asy fro:s Unica C=bido chan to delivered and received at tha intersection of Laka had and the noth-v:st corner cf the interacetion of It.ko Road cnd tho venterly property

~

lins of Union Carbide, Ashtabula Tov = ship, Achtabula County, Ohio, which point chall be kravn as ths " delivery point" for au clectrien1 energ7 delivered by ths ?cver Cc pany to Union C=bido c 1 the "receivi:C point" for all electrical energy received by the Povar Cc=;ssy ftc::. Union Carbida.

,.3 ARTICIS II

~

(

CE'aAC'"23ISTICS.CD 22AS'2EC:T O? EEGY All electrical enart:r '.nterchansed hdreunis chall be 3 Pao, cyproxi=stely 60 cycles at G e-4-M potenti:1 of 13,s^.CO volto.

All electrical c crsy cisil to n=actred at tha =:tcring point located on the property of Union Car'bido at a point to ba I:nt'.=lly as: cod upon, cui all = stars cai inst:.= sts ncces =y for all cloctrie:1 cacray

=:-m-- nts hereunior chan to fraiched c=i ---4tain:C by th Power o

em C;:~<c:;f.

D n

D y

ou ARTIC'C !!I o

g-A o j(

_ JJ

_ i o m r = ce= x..=

S=-ti== 1.

CO cocr?.i=sto tha operation of thair ::.~.A ctivo. c m ting facilitics, ths ;arties shall c:t:blish a co-itto: cf cuthcrized 1

~

~ _ _

representativuo to bo known no the Operating Comittee. Each of tha (O

partica nh11 denignato in writing delivered to the other party, one p:rson who is to cet as its reprocentative on said co=ittco. Such repro-c,catativo shall be a percen familiar with the cencrating facilities of tha party by which ha has been so designated, and rhn11 be fully author =

in

• l) to cooperato with the other representative, and (2) fnn tims to tina as the need arines, cubject to the decinrod intentions of tha parties herein cot forth to detemino cnd acree upon the followings

~

a.

All r.attern per+nining to the coordination of maintenanca of tha 0:nsrating facilities of,the parties.

b.

All rattera pcrtaining to the control of time, frequancy, enercy flow, kilovar flov, power factor, voltaEe, and other similar r.attera bearing upon the satisfactory syn-c.

chronous operation of the systema of ths parties.

r i.

c.

Euch'other natters not specifically provided for herein upo's which cooperation, coordination, and agroe=cnt as to quantity, time, method, tema, and. conditions are necessary in order that tha operation of the sanorating facilities of the pdies may be coordinated to this end that the poten-tial savings in operating costis vill be realized to tha full-est practicable extent that la agreed upon by tha parties.

Section 2.

For the purpose of inspection aEd reciing of notars, chacking of records, and all other partinant matters, said representatives and thair alter =atos shall have the right of entry to all property of the parties used in connection with tha parfornance of this Agreement.'

m0 D

D o

JU

, g y.

. _ S

_ ]L

_a v

o-ARTICIS IV

.(.

EQUIPN.u, OPD/ RICH, AND PROCEDURE 4

Section 1.

Union Carbido acreca that any and all operations of its Concratir.G faci.litica in parnllel vith the Power Cce: pony's service vill be solely en its own responsibinty and Union Carbide vill save the Power Cen.)cny hamicas from and indc=nify tb

.:r Co=pany aGainst all injury or an=aCa to persons or property, including the specifia

~

pmperty of the Pover Co=pany used in supplying Union Carbide, croving out of or reculting frcm the operation of Union Carbide's electrio Ecnerating facilities in parallel with the Power Company's Syste::2, unless cuch injury or da=agi be due to the neglicence of the Power Cc=pany, its..,

officers, ace'nts, or e=ployees in feniching, inst mng, cperating,

(

(.

and/or rn4ntnining reh4mry, appliances and/or apparatus furniahed

'and/or operated in connection with the delivery of electrical energy' to Union,Carbida.,

The Pover Co=pany's e=ployees chali have the right of ingress and egress upon Union carbide's prc=ises for the purpose of ch-V4ng

. operating conditions as required.

Beetion 2, It is understood and acreed that all equipnant owned and

' ins +nN by Union Carbido on Union Carbida's pre =ises and which is required for parallel operation horcunder shall be of desiG3 satisfactory to the Pavar Cc::pany and the specifications for all said equip =ent An be mf==itted to the Power Cocpany far its appmval beforo purchase and D@@%

33g C0 T

x 3. @LL

-s-A a

s.

inctcllation. Said equip::nnt chall be installed by Union Carbido at its '

r expence, cna chall be c=d re edn the property of and be r.aintained by Union Ccrbide.

It is understood and acreed that Union Carbido nhn11 operato

• 'T*

such of its circuit breckers as nre uced in pcrallel operation hereunder, cynchronize its pneration with the inco=ing lines, control the load and perfom other routino duties incident to parnlici operation.

The parties hereto agree that upon prenrranc2d interruption"of the Power Cc=pany's circuit for routine r.aintenance, or under emergency conditions, Union Carbido nim 11 operate such of its circuit breakers as are used in parallel operation horcunder under the direction of tha Power Co=pany, cnd Union Carbido chn11 pcmit access to its property by the Power Cc::geny's. reprocentatives for installing and/or rez:cving necessary V

i safety or precautionary equip =cnt owned by Power Co=p,any.

'It is understood and agreed that the settings of all relay equip.,

r. ant used in the parallel operation of Union Carbide's cancrating facili-ties with tha Pover Co=pany's System vill be n?le mutually satisfactory to the Pover Co= pony and Union Carbida and the Power Cewmany may witness such settincs.

Insofar as the operations of Union Carbide at its said electri-

' cal C* rating station and its r.anufacturing facilities affect the energy

~

or reactiw flow between the parties hereto, it is' understood that it w be the recponsibility of Union Carbide to regulate the energy. flav and reactive flow between the parties hereto.

D D

OaS o Ju.JL 1 o

3

-s.

~

Union Carbido acroca to reculate the reactive flow so that the

..'. ?

r.onthly avercC3 power factor of all interchang power roccived from the Power Co::geny dmil ba -nintained at not loca than ninety percent (907.)

7...

InCCing cad that the power factor during cay hour shall be mintainod betveca cichty-five percent (8%) Ingsing and unity. It is aCreed that any reactivo kilovolt-cz:gere hours delivered by Union Carbide to the Power Cc=peny, by rencon of failure by Union Carbide to regulate reactive flav, chall not at any ti=a establish a chars against the Power Con:pany or catablich a credit against tha' reactive-kilovolt-ampore hours supplied by

~

tha Pover Cc::peny to Union Carbida.

Union Carbide shall use its best efforts to regulate energy and reactivo flov during periods of power interchance so that the flov is as near tha requested quantity as practiciable. During periods when power is -

C

('

not being interchangsd, Union Carbido shall use its beat efforts to regulate

'enerCy and reactive flov to as near nero flow as practicable. If the regulation of energy flow and reactive flow by Union Carbide is not satis.

factory to the Power Coc:pany, the Power Co=pany' reserves the r16ht to dis.

continue the interconnection upon reasonable notice to Union'Carbida until auch time sa operation is _ satisfactory to the Power CwM.

Section 3 It nhnn be the responsibility of Union Carbida to mintain and, if necessary repince or'rolocate tha trrmretssion lina facilities between f

Pover Cw's Achtabula generating station and Ucion Carbido!n '6::norating r

i station.

If requanted by Union carbide tha Power Cocpany agrees to perfor:a a=y nacoscary nain*n-= on said tranz=rission' lina facilities.'at Union Carbide's expense.

I D D

1 oo 2

O

r.?ICLU V

'?'

SGVIC3 'N) DE RU?D~""3 I

Sectien 1.

Start-to Pover j

In the cwnt'of en c=crconey occurring in the operations of the electric Cencratinc ctation of Union Ccrbido, cuch no, for cygle, e.

.rciny cetion tripping the station off the line, or ciniinr occurrences, the*Fover Co=peny vill ftnnich to Union Carbido cuch cmeunt of electric energ na is necccca:/ for the cole purpoca of restarting Union Ccrbide's clectric Generating otation n=d equipment.

The ratco charc d for such service an11 be thoce of the Power Co=pany's Industrial Schedule ca now or hercafter during the torn of this contract mcy bo on filo with the Public Utilitica Cnm4 naion of Ohio

. subject to the following special tor =3 and conditions in 1102 of the (m

Special Eulen of the Industrial' Schedules

(

n.

.The kilountt billing da-tna nhn11 be the denand determined monthly by da-and censurements and chall be the env4 --

30-=inuto hilowatt da-and during the month other than during periodo when Maintenance Power in being received or dolivered in accordance with Section 2 hereunder.

b.

The Pover Co:::peny nhall ccch month determina the not leading or lacGing reactive kilovolt-c=;ao de-nda reciatered during the cara 30duta period as -tha kilovntt billing deand-c.

If the R.K.7.A. Meena no date:..d.ned in inEging the reactive bimns dead chall hs the R.K.V.A. which are in excess of I

ten percent of the kilovatt dam a billed.

D D

oo

~

Op-Q~}1 0

Jd

_ 2

..r

__a 8-9

mm_

w U

If the R.K.V.A. da-m A no datemi. nod is leading tha reactiw bining de::nnd nhrt11 be the R.K.V.A. which are

..,.g.,

in excess of forty percent of the kilowatt damand billed.

c.

The contract d a na shall be the greatest of the following

^

(1) 1,000 KW (2) The hichant KW billing d-na which shall have occurred during the preceding months of the cou.

tract term

. d.

The M ni-t' monthly b4114ng dana taaall be 50f, of the con-tract damna.

Section 2._

lhintenance Power In fu$thorancu of the benefits to be realized by the parties by coordinating to the extent practicable the schaduled maintenance, zupair, and overhaul of thate respective spnerating facilities the ' parties shall arrangs for, delivar, azzi take electric power and energy in amounts and under co:xiitions as follints:

t a.

2br purposes of this section the full Walve zenths' period 1

m meing on January 1,1963 sha21 de ne first l'.aintenance Period and each su:eeeding full tvalve months' period shall.

.be a l'.aintenance Period. During each l'aintenance Period, at i,

' differcat intervals datamined belov, each party chall have

.the right to call for and taka delivery of not more than the D

O s

QQ a

~

~

D

.a

/

/

3G' total of 20,000,000 kilowatt-houra 1'ro:s the other. Del.ivery

' of auch cncrgr, cubject to tha provicions of this section

cy M tchen at auch ti:ns and at auch rates of toko as the.

receiving party ray elect up to 'n W-rat [s of take of

~.. _

25,000 kilowatta.

~

b.

Tho Operating Co:xd.ttee chall determine and acree upon tho dates of the intervals during which the Power Ccqpony *^11 deliver any such enercr decind by or returnable to Union Carbida and, conversely, the dates of such intervals during which Union Carbide chall doliver any such enorgy denizca by or returnable to the Power Company. Such intervals shall (G

each consist of sincle periods of not less than seven ' con-

..(

s secutivo calendar days cad the receiving pai-ty's riCht to -

. call for and take not more than the aforesaid 20,000,000

^

kilovatt-hours during day Maintenance Period shall be re-stricted to not more than eight such intervals so agreed upon by the Operating Co::mittee during any l'aintenance Period.

e It is undcratood and acreed that during any Maintenance Period Union Carbide ahn11 have a tctal of one hundred twenty days during which to call for and take the aforesaid 20,000,000 kilovatt-hourn, aA the Power Cm shall have a total of one hundred eighty days durin6 vhich to ' call for and take the aforesaid 20,000,000 kilowatt-beres.

m m, D

D o.o

~

i, A'

g~}

k

_ J]

_ J(

10

'p It is expected that during a full Maintecnneo Period each c.

I party chall receive frc:s & other party the,came nunber of kilowatt-hours up to the aforesaid 20,000,000 kilowatt-hours as are delivered to the other party.

If, however, the nu=ber of kilowatt-hours received differs from the nu=ber of kilowatt-hours delivered such difference shall be considered to be incidental power and shall be treated.

accordinGly.

i.

Section 3 Optional Power The 'Pover Co=pany ray request and Union Carbide at its sole dis-cretion r.ay furnish, electric enary amounts as may be mutually agreed

(

upon.. The rate for such energ ahn11 be 40.0035 per kilowatt-hour,.

Soetien h.

The term " Incidental Pover" shall maan the difference in kilowatt-hours between ths scheduled flow of Maintenance and/or Optional Power and the actual c:cust taken and.aball also include unscheduled flow of energy occurring during periods when no flows are scheduled. Incidental power during cny month shall be considered to be tha not of such energy flow during the muth.

It is the intention of tha parties hereto that the incidental I

power in any month shal.1 be held to the least feasible amount and further that the cu=ulative incidental power in a calendar year likewise be hield to.the least feasibla amount.

mo 9

9 aaR D '9~I

~

~

~ v

_a

/p If at the and of a calendar year the not halneo of' incidental power in 100,000 or zasre kilowatt-hours, the party receiving said power

, s1;all pay the other party for such incidental power at the rato.of $0.003 '.. -

per kilovatt-houd.

If at the and of a c=1=Mm year the not balance of incidental power is less than 100,000 kilowatt-hours, no setti - nt vill be made and the h1-e shall be carried over into the next succeeding calendar year.

Section 5

/s soon as, practicable after the end of each month, the Pownr Co:::pany en11 prepare a bill in accordance with the tems of this Articas 1

for electric service furnished by the parties one to the other during such

[

month, and a copy of such bill vill be presented' to Union' Carbida. The'nst,

balance owing one party by the othat shall be paid within ten days after -

4 receipt thereof.

ARTICI2 VI l

TERM AND ASSIGEIT This Agreemant aball be and runnin in full force and offect to cni including Sep'& 1,1965 and thereafter unless and until teminated by at least two years' prior written notice, it being understood that this Acreement is in substitution for and supersedan the Interchangs Ag.-t dated ".ovenbcr 17, IS G and e aMmnts thanto.

I this Agreement shall not be assismed by either party withott, the writtan consent of the other party and shall not take affect until Y

D, O

l aa 12 -

0

' 9

' 'T 3

u L

. ~.

/-

filed with and approved by the Public Utilities Commission of Ohio, it being understood between the parties hereto that after said filing and approval, the rates and terms and conditions contained therein shall at

, all times insofar as the Power Company is concerned be subject to such superv1sion, re6ulation and control as may be providad by law or the Public Utilities Commission of Ohio, and any other public officer, body or authority having regulatory power over the Power Company whether or not such supervision, regulation and control are invoked by the Power Conpany.

TE CLEVELAND ZECTRIC ILLLHINATING COMPANY (I.

led med/

A. M. Y4114 n By / ginned /

K. H. Rudo1*h

'iitle vi,...p,.. n 4 a.,-t

~

Attest:

UNION CARBIIE CORPORATION

/ signed /

T. A. Moore By / signed /

A. S. Johnston Assistant Secretary Ti tle' Vice-President SEAL i

q Q1 0

&S p r, O Q F }1 a5],

e l

iu,

==

4

'm

~.. ~-

.un --. --

~ -

san

-r-----

EXHIBIT "C"

~

1 APPENDIX C l

l l

C AAENDMENT NO.12

4

=

EXHIBIT "D" APPENDIX C

?

AMENDMENT NO.12

F e

ee,

et &

a -f

• N.

4*

• e

%aa A

P P

E O

N D

1 X

I I

APPENDIX D RESPONSES OF THE CLEVELAND ELECTRIC ILLUMINATING COIGANY TO THE INF0FRATION REQUESTED BY THE ATTORNEY GENERAL i

D-1 Amendment No. 12

Q1. State separately for hydroelectric and thermal generating resources applicant's most recent peak load and dependable capacity for the same time period. State applicant's dependable capacity at time of system peak for each of the next ten years for which information is available. Identify each new unit or resource.

I',

a) Most recent system peak load:

Date - July 1, 1970 Load - 2517 MW (Excluding Interruptible Load) b) System dependable capacity at time of peak:

Thermal Capacity:

Net Seasonal Capability 2250 MW Pre-Commercial Output 476 -

/

Total 2726 MW Hydro Capacity:

None c) Projected dependable capacity at time of system peak for next ten years:

See Exhibit I.

(The Cleveland Electric Illuminating Company does not have information available for years subsequent to 1976.)

D-2 Amendment No. 12

EXHIBIT CEI-1 Planned Total Planned Additions Net Demonstrated Capability (w)

(w) 1970 2280 1971 Avon Lake #9 650 Seneca #1,2,3 305 3235 1972

• CAPCO Capacity lv5 3400 1973 Eastlake #5 kh7

• CAPCO Capeity -85 3597 1974

• CAPCO Capacity 28 3710 1975 Davis-Besse #1 414 Mansfield #1 66

• CAPCO Capacity -22 4140 1976 Mansfield #2 251 Davis-Besse #1 Up-rate 17 4430

• Net effect of allocations from subject unit and other CAPCO units, Sammis No. 7 on Ohio Edison System, Beaver Valley on Duquesne Light System and peakers on Ohio Edison and Duquesne Light Systems.

D-3 Amendment No. 12

d Q2. State applicant's estimated annual load Growth for each of the next 20 years or for the period applicant utilizes in system planning.

A2.

The Cleveland Electric Illuminating Company's annual load growth is projected as follows:

Annual MW Year Load Growth 1970 - 1971 203 1971 - 1972 180 1972 - 1973 190 1973 - 1974 190 1974 - 1975 190 1975 - 1976 200 1976 - 1977 210 1977 - 1978 220 1978 - 1979 230 1979 - 1980 250 1980 - 1981 260 1981 - 1982 280 1982 - 1983 290 1983 - 1984 310 1984 - 1985 320 1985 - 1986 3M 1986 - 1987 370 1987 - 1988 390 1

1988 - 1989 410 1989 - 1990 430 l

Dh Amendment No. 12

Q3 state estimated annual load growth of companies or pools upon which the economic justification of the subject unit is based for each of the next twenty (20) years or for the period applicant utilizes in system planning. Identify each company or pool member.

A3 The Cleveland Electric Illuminating Company is a member of a power pool known as CAPCo. other members of the CAPCo Pool are Duquesne Light Company, Ohio Edison Company (and its subsidiary, Pennsylvania Power Company) and The Toledo Edison Company. The CAPCo annual load growth is projected as follows:

Year MW 1971 - 1972 598 -

1972 - 1973 602 1973 - 1974 662 1974 - 1975 617 1975 - 1976 671 1976 - 1977 697 1977 - 1978 720 1978 - 1979 760 1979 - 1980 774 1980 - 1981 865 1981 - 1982 903 1982 - 1983 962 1983 - 1984 1,016 1984 - 1985 1,072 1985 - 1986 1,130 1986 - 1987 1,193 1987 - 1988 1,258 1988 - 1989 1,327 1989 - 1990 1,40 1990 - 1991 1,479 s

D-5 Amendment No. 12

r Q4. For the year the subject unit would first come on line, state estimated annual load growth of any coordinating group or pool of which the applicant is a member (other than the coordinating group or pool referred to in the applicant's response to Item

3) which has generating and/or transmission planning functions.

Identify each company or pool member whose loads are indicated in the response hereto.

A4. The subject unit (Davis-Besse No. 1) is scheduled for commercial operation as of December 1, 1974. The Cleveland Electric Illuminating Company is not a member of any coordinating grou7 or pool which has generating and/or transmission planning functions other than the CAPCO Pool referred to in the answer to Question 3 l

D-6 Amendment No. 12

)

45 State applicant's minimum installed reserve criterion (as a percen-tage of load) lj for the period when the subject unit will first come on line. If applicant sharea reserves with other systems, identify the other systems and provide minimum installed reserve criterion (as a percentage of load) g by contracting parties for the period when the proposed unit will first come on line.

lj Indicate whether loads other than peak loads are considered.

A5 The Cleveland Electric Illuminating Company is a member of the CAPCO Pool, described in the answer to Question 3 The CAPCO Pool companies, including The Cleveland Electric Illuminating Company, use a probability method for determining installed generation reserve, which considers in addition to risk of forced outage, pro-jected monthly peak loads, planned maintenance, random oute.ges of generation, and possible load forecast errors. The CAPCO companies have adopted a standard for planning ' generating reserves such that the projected frequency of use of interconnection to non-CAPCO sys-tems and the dependence on outside generating resources will not exceed one day per calendar year for carrying firm load. The method used for the CAPCO Pool for this purpose is described in a paper entitled "The CAPCO Group Probability Technique for Timing Capacity Responsibility" by Messrs. Firestone, Monteith and Masters which was published in IEEE Transactions on Power Apparatus and Systems, Volume PAS-88, Number 8, August,1969, and is included as Exhibit A in Appendix C.

For the reasons stated in said paper, the CAPCO companies including i

D-7 Amendment No. 12 l

i

)

e l

l The Cleveland Electric Illuminating Company do not base their capa-city planning on a reserve criterion expressed as a percentage of load. However, application of the foregoing criterion and method would result in installed reserves which ber.r the following per-centage relationships to anticipated loads:

CEI CAPC0 Reserves Reserves I=ediately Before Davis-Besse 2h.1%

21.2%

I=ediately After Davis-Besse 27.8%

25.2%

D-8 Amendment No. 12 e-.

n v

~,,,, - - --+..-

r" Q6. Describe methods used as a basis to establish, or as a guide in establishing the criteria for applicants and/or applicants pool's main amount of installed reserves; e.g., (A) single largest unit down, (B) probability methods, such as loss of load one day in twenty (20) years, loss of capacity once in five (5) years, (C) other methods and/or (?) judgnent. List conditions, other than risk of forced outa6e, that enter into the determination.

A6. See Item 5 above.

k l

D-9 Amendment No. 12

f Q7 Indicate whether applicant's system interconnections are credited explicitly or implicitly in establishing applicant's installed reserve.

A7 In establishing its installed reserve, The Cleveland Electric Illuminating Company does not credit interconnections with other systems, either explicitly or implicitly. Rather, the CAPCO companies periodically review their interconnections with systems which are not members of CAPCO to determine the adequacy of such interconnections for the purpose of justifying the criterion of reliance upon resources outside CAPCO not more than one day per year. Generation and associated transmission facilities for the CAPCO members are planned on the basis of the requirements of the pool as a single system, and according1.y the members do not establish their installed reserves independently.

4 D - 10 Amendment No. 12 l

/

Q8. List rights to receive emergency power and obligations to deliver emergency power, rights or obligations to receive or deliver deficiency power or unit power, or other coordinating arrangements, by reference to applicant's Federal Power Commission (FPC) rate schedules (i.e., ABC Power & Light Co., FPC Rate Schedule No.15 including supplement 1-5) 2], and also by reference to applicant's state commission filings. Where documents are not on file with the FPC, supply copies, or where not reduced to writing describe arrangements. Identify for each such arrangement the participating parties other than applicant. Provide one line electrical and geographic diagrams of coordinating groups or power pools (with generation or transmission planning functions) of which applicant's generation and transmission facilities con,stitute a part.

(

A8.

(1) The Cleveland Electric Illuminating Company has r16 hts and obligations to receive and delivetr emergency power, maintenance power, and short-term interchsRge power with:

(a) Ohio Power Company. CEI Rate Schedule FPC No. 1, including Supplement No.1.

(See also Ohio Power Company Rate Schedule FPC No. 31, including Supplement No. 1.)

(b) Ohio Edison Company. CEI Rate Schedule FPC No. 2, f

including Supplement No.1.

(See also Ohio Edison l

l Company Rate Schedule FPC No. 2, including Supplement No.1. )

(c) Pennsylvania-New Jersey-Maryland Group (PJM). CEI Rate Schedule No. h, including Supplement No.1.

Amendment No. 12 D - 11

(2) The Cleveland Electric Illuminating Company has rights and obligations to receive and deliver mutual back-up with (a) Ohio Edison Company. CEI Rate Schedule FPC No. 3, including Supplement No.1.

(See also Ohio Edison Company Rate Schedule FPC No. 44, including Supplement No. 1.)

(3) The Cleveland Electric Illuminating Company has a unit operating agreement with (a) Pennsylvania Electric Company. CEI Rate Schedule FPC No. 6.

(See also Pennsylvania Electric Ccmpany FPC No. 56.)

(4) The Cleveland Electric Illuminating Company has a temporary obligation to provide switching and load transfer service to (a) Department of Public Utilities, City of Cleveland, Ohio.

CEI Rate Schedule No. 7, including Supplements 1, 2 and 3 (5) The Cleveland Electric Illuminating Company has rights and obligations under a contract with a non-utility (a) Union Carbide Corporation. Public Utilities Commission of Ohio, Dockets No. 31,363; No. 36,142; and No. 36,891.

Copies of said document, as amended, are attached hereto as Exhibit CEI-8-1(a); CEI-8-1(b); and CEI-8-1(c).

(6) The Cleveland Electric Illuminating Company has rights to receive power during October 1,1973 through December 31, 1974, from (a) Toledo Edison Company, pursuant to a Power Agreement D - 12 Amendment No. 12

dated May 29, 1969, among The Toledo Edison Company, The Cleveland Electric Illuminating Company, Duquesne Light Company, Ohio Edison Company, and Pennsylvania Power Company, a copy of which document is included in Exhibit B to Appendix C.

(7) The Cleveland Electric Illuminating Company has rights and obligations to receive and deliver power, and in general coordinate its generation and transmission planning and construction, and operate its system with the CAPCO Pool, pursuant to a Memorandum of Understanding, dated September 14, 1967, among (a) The Toledo Edison Company, Duquesne Light Company, Ohio Edison Company, Pennsylvania Power Company and The Cleveland Electric Illuminating Company a copy of which document is included in Exhibit B to Appendix C.

(8) Attached as Exhibit C of Appendix C is a geographical one-line diagram of the power pool with generation and planning functions (CAPCO Pool) of which The Cleveland Electric Illuminating Company is a part, showing generating and transmission facilities of thic pool installed and planned through 1974.

l l

D - 13 Amendment No. 12

E 49 Listnon-affiliated 3/electricutilitysystemswithpeakleads smaller than applicant's which serve either at wholesale or at retail adjacent to areas served by applicant. Provide a geographic one-line diagram of applicant's generation and transmission faci-lities (including subtransmission), indicating the location of adjacent systems and as to such systems indicate (if available) their load, their annual load growth, their generating capacity, their largest thermal generating unit size, and their minimum reserve criteria.

A9 Non-affiliated systems with peak loads smaller than that of The Cleveland Electric Illuminating Co=pany, adjacent to areas served by The Cleveland Electric Illuminating Company are:

City of Cleveland Municipal Electric Light Plant City of Painesville Municipal Electric Light Plant (The service territory of Pennsylvania Electric Company, which has a peak load smaller than that of The Cleveland Electric Illuminating Company is adjacent to that of The Cleveland Electric Illuminating Company; however, Pennsylvania Electric Company is a subsidiary of Genere.1 Public Utilities system which has a larger peak load than that of The Cleveland Electric Illuminating Company. Accordingly, applicant believes Pennsylvania Electric Company is not properly includable as an electric utility system within the meaning of this Question 9.)

Exhibit CEI-9 is a geographis one-line diagram of applicant's l

D - 14 Amendment No. 12

generation and transmission facilities including subtransmission, indicating the location of the adjacent systems smaller than the Illuminating Company's system. Note that the area shown on the map denoting the Cleveland Municipal System indicates only the approximate bounds of the area served by them and that many cus-tomers within that boundary are served at retail by The Cleveland Electric Illuminating Company.

Information with regard to Cleveland Municipal Electric Light Plant is as follows:

PeakLoad(l)

Load Growth (1) 1971 116.3 m 1972 119 4 w

+3.1 1973 122.5 m

+3 1 w 1974 125.6 *

+3 1 w The largest ther=al generating unit is 85,000 w(2).

Total installed nameplate capacity as of Dec.-Jan.,1971(3).

Total 275,825 w*

Unavailable 62,500 213,325 m

• Includes 3 - 18,000 m gas turbines installed 12-70.

No information is available as to the minimum reserve criteria of the Cleveland Municipal Electric Light Plant, or for years later than 1974 (1) Source: City of Cleveland FPC Form 12E,1970.

(2) Source: City of Cleveland FPC Form 1-M,1969 (3) source: City of Cleveland FPC Form 12-E, Dec.-Jan. 1970-71.

D - 15 Amendment No. 12

Information with regard to Painesville Municipal Electric Light Plant is as follows:

Peak Load (1)

Load Growth (1) 1970 21.4 w 1971 22.6 w

+1.2 w 1972 24.4 w

+1.6 w 1973 26.4 m

+2.0

• The largest thermal generating unit is 16,500 W(2).

Total installed nameplate capacity (year 1969),is 38,000 W(3).

No information is available as to the minimum reserve criteria of the Painesville Municipal Electric Light Plant, or for years later than 1973 (1), (2) and (3). Source: City of Painesville FPC Form 12, 1969 l

1 D - 16 Amendment No. 12

]

4 l

Q10. List separately those systems in Item 9 which purchase from appli-cant (a) all bulk power supply and (b) systems which purchase par-tial bulk power supply requirements. Where information is avail-able to applicant, identify those Item 9 systems purchasing part or all of their bulk power supply requirements from suppliers other than applicant.

A10. The Cleveland Electric Illuminating Company's answer to Question 10(a) is "none," and to Question 10(b) is "none."

(However,The Cleveland Electric Illuminating Company does he.ve a load transfer contract with the Department of Public Utilities, City of Cleveland, referred to in answer (4) to Question 8.) So far as The Cleveland Electric Illuminating Company knows, neither the City of Cleveland electric system nor the City of Painesville electric system purchases any part of their bulk power supply requirements from another system.

D - 17 Amendment No. 12

t' Qll. State as to all power 5 aerated and sold by applicant the most recent average cost of, bulk power supply experienced by applicant (a) at site of generating facilities, (b) at the delivery points from tha primary transmission (backbone) system, (c) at delivery points from the secondary transmission system, and (d) at delivery points from the distribution system, in terms of dollars per kilowatt per year, in mills per kilowatt-hour, and in both the kilowatt costs and kilo-watt hour costs divided by the kilowatt hours. If wholesale sales are made at varying voltages, indicate average cost at each voltage.

All. The most recent average unit costs of wholesale power sold by The Cleveland Electric Illuminating Company at various delivery points is outlined below. Costs shown are based on revenues and sales during the year 1970.

Mills Dollars Dollars Mills Per KWH Per KW Per KVA Per KWH For Power Per Year Per Year For Energy And Energy (a) At site of generating facilities (b) At primary transmission 345 and 138 kV 90 90 (c) At secondary transmission

$3 33*

85 9A 33 and 11 kV (d) At distribution l

i l

• Variationfromthestandardrate($030/kva/monthor$3.60/kVa/ year)isdueto l

prorated billings for partial months of service.

l D - 18 Amendment No. 12

Q12. State (a) for generating facilities and (b) for transmission sub-divided by voltage classes, the most recent estimated cost of applicants bulk power supply expansion program of which the subject unit is a part, in terms of dollars per kilowatt /per year, in mills per kilowatt hour e.nd in both the kilowatt costs and kilowatt hour costs divided by the kilowatt hours.

A12. (a) The generation portion of the expansion program of which the Davis-Besse unit is a part is sin =adzed as follows:

(c)

Annual (a)

(b)

Cost of Annual Annual Fuel, Operation Total Fixed Fixed and Annual Unit Charges Charges Maintenance Cost Name

$/KW Yr Mills /KWH Millr/KWH Mills /KWH Eastlake 5 28.2 4.01 3 37 7 38 Davis-Besse 55 3 8.04 2.15 10.19 Mansfield 1 33 7 4.82 Not Available Not Available Mansfield 2 36 9 5 26 Not Available Not Available Notes:

(a) Based on annual fixed charge rate of 18%

(b) Based on annual fixed charge rate of 18% and approximately 80% capacity use factor.

(c) Based on first 12 months of unit cporation at approximately 80% capacity use factor.

(b) The transmission provided for by the CAPCO pool arrangement will be integrated into the bulk power systems of the pool members. All of said transmission serves and will serve the present and expansion generation program of which the subject unit is a part. We have no experience nor basis for deter-mining the cost of the transmission on either a KW or KWH basis.

D - 19 Amendment No. 12

~

/

63 Listanddescribeallrequestsforinterconnectionand/orcoordi-nation and for purchases or sales of coordinating power and energy from adjacent utilities listed in Item 9 since 1960 and state applicant's response thereto. List and describe all requests for supply of full or partial requirements of bulk power for the same period and state applicant's response thereto.

A13 The city of cleveland, Department of Public Utilities, made a request of the applicant for temporary switching and load transfer capability service in January, 1970. The cleveland Electric Illuminating Company's response is evidenced by its rate filing with the Federal Power Commission, identified as FPC No. 7, hereinbefore referred to in answer to Question 8.

There have been no other requests for service.

l D-N Amendment No. 12 l

Q14. List (a) agreements to which applicant is a party (reproducing I

relevant paragraphs) and (b) state laws (supply citations only),

which restrict or preclude coordination by, with, between, or among I

any electric utilities or systems identified in applicant's response to Items 8 and 9 List (a) agreements to which the applicant is a party (reproducing relevant paragraphs) and (b) state laws (supply citations only) which restrict or preclude substitution of service or establishment of service of full or partial bulk power supply requirements by an electric utility other than applicant to systems identified in Items 8 and 9 Where the contract provision appears in contracts or rate schedules on file with a federal agency, identify each in the same form as in previous responses. Where the contract has not been filed with a federal agency, a copy should be supplied unless it has been supplied pursuant to another item hereto. Where it is not in writing, it should be described.

A14. The Cleveland Electric Illuminating Company is not a party to any agreements containing restrictions on coordination in the broad sense used in the Definitions preceding the Questions. The CAPCO pool agreements as expected to be written will have no effect on existing contracts with other systems with respect to emergency, maintenance or other forms of power. The CAPCO pool when operative l

will, as is inherent in any closely organized pool, provide that obligations to pool members will have priority over service to others except as to existing contracts. We are not aware of any Ohio statute which would restrict or preclude coordination, or D - 21 Anendment No. 12

,~

substitution of service or establishment of service of bulk power supply requirements, but suggest that Section 6, Article VIII of the Constitution of Ohio, and Section 6, Article XVIII of the Constitution of Ohio, and possibly Ohio Revised Code Section

@ 5 261 could so restrict or preclude such coordination by, and the furnishing of bulk power supply requizs.

.ts by, the municipal electric systems referred to in answers to Question 9

~

i l

l D - 22 Amendment No. 19

Q15 State, at point of delivery, average future costs of power purchased from applicant to adjacent systems identified in applicant's response to Item 9 in terms of dollars / month /kw for capacity, mills /kwh for energy and mills /kwh for both power and energy at purchaser's present load factor (a) at present load, (b) at 50% increase over present load, (c) at 100% increase over present load, and (d) at 200% increase over present load. (All costs should be determined under present rate schedules on file with a federal agency and not included in the response to Item 9, identify each in the same form as in previous responses.

Where the contract has not been filed with a federal agency, a copy should be supplied.

A15 (1) The Cleveland Electric Illuminating Company is not interconnected with and does not provide power to the City of Painesville Munici-pal Electric system.

(2) Service provided by The Cleveland Electric Illuminating Company to the City of Cleveland Municipal Electric system is temporary, and consists of switching and. load transfer service only. Said service is provided pc suant to the rate schedule filed with The Cleveland Electric Illuminating Company identified as FPC No. 7, including Supplements 1, 2 and 3 (a) At present load Capacity..

. $0.30 per kva of Contract Demand per month Energy..

. $0.0085 per kwh for the first 400 kvh per kva of Contract Demand

$0.005 per kwh for all additional kwh Amendment No. 12 D - 23

Power and Energy costs /kwh at purchaser's present

/

load factor for the entire period to date:

February, 1970 through February, 1971 (13 months)

Total Revenue.... $1,855,031.85 (ex. one-time charges)

Total kwh...... 196,761,600 Average Rate in mills /kwh.. 94 mills /kwh (b), (c) and (d), with load increases of 50%, 100% and 200%,

all at the present load factor, the answers would be the same as set forth in (a) above, so long as the Contract Demand increases but the load factor remains the same.

f 4

i

)

1 Amendment No. 12 D - 24

Q16. State whether applicant has prepared, caused to be prepared, or s

received engineering studies for generation and transmission expansion Programs which include loads of each system in Item 9 A16. The answer to question 16 is "no."

Amendment Ilo. 12 D6 25 i

l Q17 List adjacent systems to which applicant his offered to sponsor or to conduct system surveys in contemplation of an offer by applicant to purchase, merge or consolidate with said adjacent system, subsequent to January 1, 1960.

A17 The answer to Question 17 is "none."

4 3

4 Amendment No. 12-

,g

. ~ -.. -

+3 Q18. List applicant's offers or proposal

• to purchuse, merge or consolidate with electric utilities subsequent to January 1, 1960.

A18. In 1965, The Cleveland Electric Illuminating Company and Ohio Edison Company announced the initiation of a joint study to determine the feasibility of a corporate affiliation of the companies. The affiliation stur'.les were ter=inated in 1967 In April,1968 the Cleveland Electric Il!.uminating Company and seven other utilities: The Cincinnati Gas and Electric Company, its subsidiary The Unica Light, Heat and Power Company, The Dayton Power and Light Company, Duquesne Light Company, Ohio Edison Company, its subsidiary Pennsylvania Power Company, and The Toledo Edison Company, announced that they would take part in a study to determine the feasibility of formin.,a holding company system. This study has currently been suspended.

t l

l Amendment No. 12 D - 27

T Q19 list all acquisitions of or mergers or consolidations with electric utilities by applicant, subsequent to January 1, 1960, including:

(1) The name and principal place of business of the system prior to acquisition, merger or consolidation; (2) The date the acquisition, merger or consolidation was consum-mated; (3) Gross annual revenue and most recent peak load, dependable capacity and the largest thermal generating unit of the system, prior to the date of consummation.

A19 There have been no acquisitions of or mergers or consolidations with electric utilities by The Cleveland Electric Illuminating Company subsequent to January 1, 1960.

I D - 28

EXHIBIT CEI-9

~

APPENDIX D AhENDMENT NO.12 l

L