ML19329E910

Affidavit of Jn Keen Re Competitive Situation in State of Mi.Correspondence Encl

ML19329E910
Person / Time
Site:	Midland
Issue date:	06/14/1971
From:	Keen J WOLVERINE POWER SUPPLY COOPERATIVE, INC. (FORMERLY
To:
Shared Package
ML19329E907	List: ML19329E906 ML19329E910
References
NUDOCS 8006180762
Download: ML19329E910 (43)

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, . Exhibit A UNITED STATES OF AMERICA ATOMIC ENERGY COMMISSION In the Matter,of i;, )

Consumers Power Company ) .

Application for Reactor . ) . , -

Docket No. 50-329A .

Construction Permit and ) Docket No. 50-330A Operating License ) '

Affidavit of Mr. John N. Keen

..- My name is John N. Keen. I am General Manager of

... the Wolverine Electric Cooperative Inc. of Big Rapids, '

i Michigan (P. O. Box 822) Big Rapids, Michigan 49307.

The Wolverine Electric Cooperative is a cooperative generation and transmission system that serves four <

distribution cooperatives. These are:

h O&A Electric Cooperative, Th, Tri-County Electric Cooperative,

,, Oceana Electric Cooperative,

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Western Michigan Electric Cooperative The Wolverine' Cooperative owns and operates generation and transmission facilities which serve as a source of bulk

• power supply for these distribution cooperatives. In ,

I addition, Holverine is connected through 69 KV transmission lines to several other bulk power suppliers in Michigan. i In general, the facilities of these interconnected systems 1 are located in the western and northern portiot.s of the Michigan's lower peninsula. They include Northern Michigan

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Elccuric Cooperative which serves as bulk power supplier ,

for three cooperative distribution systems, namely Presque Isle Electric Cooperative, Top 'O Michigan Rural Electric Cooperative and Cherryland Rural Electric Cooperative

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Association. They also include the City of ' Traverse City, '

i the City of drand Haven, the City of Hart, the City of <

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-Zeeland, the City of Lowell and the City ,of Portl'and.

• Wolverine, Northern Michigan, Grand Haven'and Traverse City, the four largest, have formed a bulk . power coordinating i l

organization and the other entities participating in that  !

organization do so through Wolverine. This group is known I

as the Michigan Municipal and Cooperative Power Pool (IOICPP) ,

and I am Chairman of its Coordinating Committee. l~

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By.and large the IO!CPP presently plans and operates b its facilities as if it were isolated, although there is fone low capacity (20 megawatt) interconnection at or near r'

the village of Alba with the Consumers Pouer Company. . '

At the present time the contract which governs the .

i division of cost and benefits from operating that inter- .

i connection is such as to deny the to:CPP from participating . ',

in the benefits of reserve sharing. Over the last 2 to 3 years we have been attempting to work out a true coordinating 6 contract with Consumers Power Company. This should include -

the pooling of installed reserves of IO:CPP with those of '

Consumers Power Company and the fair apportionment of meeting b

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. . teuponsa.bility between the two entities This

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not only, reduce our proportionate reserve requirement ,

but also allow us to contemplate the. installation of large l

i z generating. units.

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• Our negotiations have been with,

Consumers Power Company since it has sole control of

. e all th high voltage or ehv transdiission' lines within economical C '

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. transmission distance of our systeid." We attempted, 6 or 7 I

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years ago, to determine whether we could, coordinate or obtain .

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'~ ' power from the Indiana-Michigan Electric yCompan

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subsidiary of the American Electric Power System (AEP)

. AEP at that time advised that it was not interested in power supply to an entity in the general service area of another

. company.' ,

Further, the transmission cost of an interconnection with Indiana-Michigan was high.

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We have not considered interconnection or coordinating arrangements with the Detroit Edison System because the .

Detroit Edison System as presently constituted is remot I. r e from j the main load centers on our system. -

1 The cost of transmission _  ; j for an arrangement witu Detroit, would be prohibitive -

Our present negotiations with Consumers Power Company .-

have not achieved the objective of obtaining a coordinating i i -I i  !

arrangement which would allow us to engage in reserve sharing

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by maintaining- a percentage of installed reserves with ,! '.

respect to our system load equal to that maintained by the  ;

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other parties to the interconnection, namely Consumers Power 4

• Company or the Michigan Pool, with respectoad. to their l t

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• Because of'our lack of success in achieving this more y; '

' ' limited type of coordination, we have not raised the subjec

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of a.~ coordinated development program between the MMCPP the Consumers Power System or the Michigan Pool

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includes both Consumer-Power and Detroit Edison

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We would be interested in such an arrangement, which we think would

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not only benefit the customers of the MMCPP but also the -

. customers of the Michigan Pool and the public generally through savings in facilities and resources .

i We believe that the problem lies in the fact that I one entity, such as Consumers Power Company owns os and contr l all the transmission in our area, forming a single n ng bargai i  !

entity approximately 20 - 25 times the size of our entire

'i interconnected MMCPP. a.

If instead of a single company there were a number of companies in our area of a much rsmalle -

size, we believe we could negotiate an interconnection on c'

fair terms with one or all of these which ow uswould to all provide pooled power supply to our (MMCPP) respective '

distribution systems at a competitive cost As isolated, .

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.or as interconnected through the interconnection arrangements  ;- j g

presently proposed by the Consumers Power, Company we would i

be forced to engineer generation and transmissio n expansion, 1

- programs 'which would require the construction ofe, small ,

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unsconomic gennrating units and maintain excessive installed reserves. As far as our operations of existing plants, we would be forced _ to waste . fuel in carrying excess spinning reserves, and even be required to impose upon our custo?.ers,-

outages in service uhich would not be required if we had access to automatic pool assistance .. ~

from the surrounding -

interconnected network on fair terms.

If we could work out a fair arrbngement as far as -

installed reserves, we would be interested in coordihating the development of our system with Consumers Power or the Michigan Pool. By this, I specifically mean a reserve-sharing arrangement in which the MMCPP would be required to maintain as its part of the reserves for the interconnected system the same proportion of reserve as a percent of its peak load as the other members of the Michigan Power Pool maintain. The information supplied by the applicant indicates that at the time the Midland unit would come on -

line their reserve percentage would approximate 17 - 18 percent of their. peak load. So far as coordinating develop-ment, ohce we had assurance of access to reserve sharing on that basis, we could consider the purchase of a portion of a unit to be _ installed either by Consumers Power for its own account oria unit to be installed by Consumers Power or'by Detroit Edison for the Michigan Pool. The annual load growth es

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_ a year, and for the Michigan Pool is in the order of 800 to d / ~1300 megawatts a year. dolverine's own load grows only 5

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mw a, year and the total annual MMCPP annual load growth would be in the range of 12 to 20 ma per year. .

The' negotiations Fetween Wolverine od behalf of MMCPP and Consumers Power Company are ' documented by .a number of j letters, four of which are attached hereto as Exhibits 1

,,. through 4 and incorporated herein by reference.

Exhibit 1. - Three page letter of Wolverine Electric Cooperative Inc (Wolverine) to Consumers Power Company

. (Consumers) dated June 8, 1970.

Exhibit 2. - Four page letter of Consumers to Wolverine L

dated July 2, 1970, with a two page attachment.

Ex'hibit 3. - Two page letter of Consumers to Wolverine

,. dated January 8, 1971. ~

Exhibit 4. - Two page ' letter of Consumers Power to

' Wolverine dated February 3,1971 with an attachment which is entitled (Preliminary Only) Agreement for Interchange and Wholesale Power Purchase between Consumers Power Company and ,

Northern Michigan Electric Cooperative, Inc'. Wolverine

. Electric Cooperative Inc. , City of Grand Haven, Michigan.

and City of Traverse City, luchigan, a two page Exhibit A, a two page Exhibit B, and a two page Exhibit d to the attachment. ..

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W3 are in competition with Consumers Power Company in a number of different ways. First, there is competition for ,

three-phase loads. Up until 1969 there were no exclusive service areas in Michigan except in so far as cities could I refrain from permitting private utility service within the ,

city limits. In 1969, mos,t co= petition for single phase loads, ,

which are generally small loads, was terminated by Michigan law. The larger loads whic'. are three phase loads, arc still ,

open to cc petition. The determinants of the competitier  ;

are ordinarily the sizd of the load and the distance from i the existing facilities of one or the other of the competitors.  :

If quite a large load such as a 25 megawatt industrial lead I was located at a point adjacent to transmission facilities of the Consumars Power Company and one of the members of the .

101CPP, the fact that the Consumers Power Company is able to install much larger units would give it a decided advantage  !

in competing for the load. If we, that is the M::CPP, vould  ;

have access to coordination so that we were able to install l larger units than we are at present able to, it would increase I

our chances of effectively competing for such load. To the i extent that access to larger units would reduce cost for the j i

MMCPP group, its me=bers would also be in a better competitive -

I position against other energy sources , as for exceple, '

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- electric heating as against gas. heating. To the extent our 7

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. m:mber systems can grow, and .obtain 'a fair share of the l-growth market,-we are in a better position to obtain the  !

I economics of scale in electric power supply, and to pass '

.,,' these savings on to our customers. I

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John N. Keen, being first duly sworn, deposes and -

, says: I am the General Manager of the Wolverine Electric

, , Cooperative, Inc. and the Chairman of the Coordinating Committee of the Michigan Municipal and Cooperative Power Pool; I make this affidavit in behalf of those orgsnizations; In the course of business I have knowledge of and am familiar I

with the matte .. cd herein except as to those matters '

stated on information, and as to those matters I believe them to be true.

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John N. Ifeen

.. .ibew d - to ef-thi. r a s pa'

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Notary Public in and for the County  !

of State of 1

My" Commission expires / N -

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e. .'.'iVOLVERINE ELECTnIG GOOPEHATIVE, Inc.

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. June 8, 1970 ,

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M . Robert L. Paul Gcaeral Supervisor of Covernmental Sales -

. Concumers PouccfCospany *

. 212 Ucst Michigan Avenuo .

Jachcon, Michigan 49201

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., 4 Prclininary Propocal for Interchange G Wholcoale Pouer Purchace

Dear Mr. Paul:

() Wolverinc and the other =cebers of the Michigan Municipal / Ccepcrativo -

Feuer Tool ( Grc=d Haven, Nor:hcrn Michigan Elcctrit Cooperative and Traverse City) have revicued ycur preliminary prcporal for c intercha:F,c c5ree=ent. E vever, vc will =ced additional infernation and clcrificction befo're uo can cc:aplate en analysis c: your proposal. To this end, vc would appreciste your ancwcrs and ycur cr==ent with respect to the following P list of questions. ,

1. What vill be the exact definition of " c=crgency" and will there be a time li=it?

2. billtherebeaminicummutualcaercencysupportecpacity

.Y. require =ent and how will it be decernined?

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3. Whae~ teres and conditions would be associated with firm wholcoale power purchcscs? If firm uholcoale power purchases are to be on

' a calendar year bcsis ( Decceber 1st to December lot) as you indicated verbally, would desands of one contract-year ratchet thrcugh to the succeeding calendar year? Doca Conawsers have a e

definite contract

• form available for thic purposo? .'

~ 4. If ccpacity were being purchased frca Consu=ers to provide r.utual emergency support capacity and Consumers called for the use of

' emergency support capacity, how would the pricing and billing be handicd? Can you furnish an exampic?

5. Doco Ccocunera have load flow studies or other information .

cvailnble that would indicato power flovo if the proposed Heracy tic and the existing Alba tic were both cloccd and were ope. rating in parallc1?

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Mr. Robert L. Paui 6/8/70

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6. Uill you furnich us with a tchulation for Consumers' oysten similar to the one we gave you listing generating and cource

,copacitics and projected Ic .0 '? .

. 7. Whct vill be tbc requirenenta relating to ec=sunication '

facilitien betvcen the Pool and Consuscro Power Company?

- 8. The3 natter of " return in hind" or payacnt at 6 pills could C w conceivably inflict hardsh1P uPon root menbers in the event

. of a prolonged cscrcency on Concumero' systen. A nunber of smaller cencrating units on the Pool cyctem havn fuel and other costs in excess of 6 milla. Could the payment alter-native be core realistically based, say, upon fuel costs

plus 10-percent?

9. " Return in kind" requires clarification. Does this cean KVu only, or does it =2en K'4 ( cr "?A) as *;cl1? Can

. " return in kind" be cade at convenience, er must it bc under same set of conditic:.3? Can it be banked, or cust it be returned uichin a set time period?

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10. Are we correct in our interpretetion that cutual c ergency cupport capacity is in effect surplus firm capacity?

i. 11. Mov nuat the total net capability of the Pool's Cencrating *

, faci 11 tics be demonstrated?

Y k2.'Inyourexampleoftheco=putationofmutualc=crgency support espacity ( Exhibit "A" of your4roposal), you used the non-coincidental Fool demand rather than the coincidental.

It is our underatanding that the coincidental Pool demand would be the basis for the deterninction. Was this merely an error in figure transfer on ycur part?

13. Your formula for determination of nutual emergency support capacity is, as you explained, an arbitrary one with a reasonably rational basic. Could ue, instead, base,the formula upon the 15-percent reserve factor used in the Michigan Pool ( of which Consuncrs is a ccmber) and not

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Mr. Robert L. Paul 6/8/70

.' Pago 3 use generating unit size facters? The for=uls, then would beco:ct. ,_

,,. C al.15La cutual support ecpacity .

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14. Your propocal contains no provicion for exchange of " cconcay" energy. The Municipal /Cooperativo Pool has a number of generating '

, units with relatively high fuel costs that vill have to bo operated to supply normal loada; operation of those units vill be cheaper 1() than purchasing firn power fren Consurers. At the same time, it is likely that Consurers vill have units running that vill not be fully loeded and whose fuel ccsto are lever thcn those of the Pool units. At such timoo, would Conaucero sell offcettin3 energy on a split-tha-savings basis when and as such energy might be cvailabic?

Also,tho ? col vould at times be in a pccition to sell econcmy

([) energy to offset generation in acua of Consumers' high fuel cost peaking units.

15. The tie cubstatien cheuld be 1ccated at i'olvarine's Hersey generating plant. Will Consu=crs provide the 133-;V transnissica tie fras its systc= to that point? .

16. Your proposal require: the cancellation of the present contract vith the Ucrthern Michigan Electric Cooperative, but it ic cur undcratending that the tic with Northern at Alba could be maintained ( normally open) as an energency tie in the event of '

troubic in the Horsey courec. Rev vould billings be handled in Y the event that dc= ands vero created upon both sources separacoly during the same billing period?

17. Could the Alba tio be relocated to some other point ( the Caylord aron, for exampic) ao an energency tio, without affecting your proposal? .

18. The matering adjustment clause of the PF-1 cchedule (your Exhibit "C") indicatef, for service at 138,000 volto, that 2-percent will be deducted from dc=and and energy measurc=cnts for billing purposes.

Doce that adjustment apply to " mutual support" and to " other emergency"ns well? '

L Very truly yours, .

'/) s. s in N. Keen, Manager .

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om osoi.4,..coe sinse. esso July 2, 1970

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Mr. John Ko'en, l'anager

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- Wolverine Electric Cooperative 302 South Uarren Avenue ', s ,

Big Rapids, Michigan 49307 -

Dear Mr Keen:

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We have reviewed your letter of June 8 relative to our preliminary agreer.cnt between preposal for an interchance and wholesale pcVer purchase Conmuner:

Icuer Ccmpany and Wciverine Elcetric '

Cooperative Diorthern ?4ichican, Traverne City, and Grand Haven).

Follcuing or cue:tfens areraisedan: vers to, orletter:

in your clarifications of, specific points 1.

As indiccted in paragraph 1, page 1 of cur propesal, emergencies are described as unforeseen cuta.ses of Generation, trans-missien and other asscelated equipment which 1 caves a party shcrt

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ments including spinning reserves.of capacity and/cr energy to meet its he' wever, if it is ycur desire to place such a time linit en thisThere was no cutual emergency support, this may be considered. '

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It is assumed that.you will vant to make a connect 1:n to Consuners Fouer Company's 138 kV system and that you w:uld vant to ectablich n nutual caersency support capacity in the range of the-largest single generating unit on ycur interconnected systen. -

Since there vill be a substantial 1 westment recuired in t.aking -

this connecti'on, it does not seen practical to make it for less

'than 20 cecavatts and that cuch mutual energency support 3evel cen-tinue ment. to remain at thic level to justify this connection and invest-

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/},r4 As a minimun, firm wholesale power purchase v:Etid '

.,.jf./_ be contracted for en a yearly basis in ancunts nececcary te main-tain the predetermined mutual cr.:ergency suppcrt level. Such pur- -

pbg chases in ene contract year vmtid have no continuing effect en pur-chase:

fer the nucceeding contract year.

He do not have a standar1

' contract forn coverInc firm wholesale power purchases.

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. Mr. John Koan 2 L, July.2, 19'Io -

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h. . Simultaneous deliveries of firm wholesale pcuer to

.l Wolverine and emergency support to Consuners power Company would be treated an'thcuch they ucre being handled throuch two separate connections. An an example: ,

If Consumer: Power Company were delivering 10 megawatts of wholccale power to Wolverine and then Consu'r. ors called for 20 megneatts of emergency support, the not delivery to Consumers veuld

• be 10 megawatts.

• onsumers vould pay six mills per kilowatt-hour

• for this energy at a rate of 10 megawatta per hour or return it

, in kind at Wolverine's option. Uciverine in turn would pay for -

that month the standard cholesale rate for 10 megavatts of firm

. -a $ ' power capadity and the appropriate energy charge for the net kilo- #

vatt-hour roccived. Assuno again'that Consumers is delivering 10 megauntts of wholesale power to Uolverine and calls fer 5 megawatts

/ , of ea*.crger.cy suppcrt. Deliveries to Wolverine uculd be reduced to 5 megavatts during this period. Consumers veuld pay Wclverine six

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mills per kilountt-hour for energy at the rate of 5 megawatta per

' hour or ' return it in kind. Uolverine would pay the standard whole-sale charges that month for delivery of 10 meccuatts of capacity and the app *:cpriate energy charge for the not kilouatt-hour received.

If Wolverine were purchasing IC megawatts of fira pcwer

• and at the same time required 20 megawatts of cmcrgency suppcrt, -

s Consumerc vculd deliver a tctal cf 30 megawatts, of which all in .-

excess of the 10 res:,.o.tts firm purchace vculd be treated and billed in a:ccrdance with the interchange previsions of the agreement.

5. Consumers Fever Company has insufficient data en the interconnected generation and transmincien facilities of your sys-ter. to make comprehensive lead flow studies; h:vever, it appears on a rather preliminary basis that with the proposed Hersey tie

" and the Alba tic closed, our system vculd be used to transport power between your interconnected parties which we believe is undesirable.

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6. Attached as Exhibit 1 ic Consumers Power Company ,sys- -

tem capability and load data.

7. Voice communication veuld be adequate for the operatien of this connection as initially conceived, plus telemetering of the load flows thrcuch the proposed interconnection to the respect 4.ve pool centers of both parties.

8. We d6 not see how a return in kind or payment of six mills wculd inflict-a significant hardship upon ycur interconnectel system membern since if you desire to have the pcVer returned in kind it veuld, at such times, he replacing your higher cost gener-ation.~ A charge of cost plus ten per cent uculd be unduly ccuplicated because of the many plants and different costs associated with each plant-located on.your interconnected cystem. -

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• July 2,- 19'/o 9 Return in kind means hilowatt-hour; however, the rate .

of return must be no creater than that delivered unless othervisc .

mutually acreed to. A3co, such energy is returned during equivalent on-pen % or off-peak periods. All transactions vculd be completed

1. k by kilouatt-hcur return or cash payment in each ..

calendar month. .

10. Mutual emergency suppcrt capacity is capacity that can be delivered by either party to the other on a high degree of probability. It cannot be considered surp3us firm capacity since mutual emercency support capaci'y is not firm.

11/ Net capability of the individual generating units e on your interconnected system would be determined by tvo hour tests, S

probably under both summer and winter conditions.

12. The coincidental rather than the non-coincidental demand o( your fhterconnected system would be used to determine the

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mutual emergency support capacity. The coincidental demand on ycur .

interconnected sy' stem would have to be est6blished by proper instru-mentation. The use of the non-coincidental demand was an oversicht on our pn.rt.

13. - We did not mean to convey the impression that the .

formula used for determination of the mutual emergency support l

capacity was an arbitrary enc. Adecuate system reserve cust reccg-l nize the ratio of unit sise to total system der.and. Such. criteria

[ is incorperated in this formula. A system necessarily veuld have l

a higher reserve requirement if its total lead were supplied by

! a fav'large units or p3 ants rather than a 3arger number of smaller -

units or p2 ants.

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14. The existing contract between your interconnected parties requires cach party to carry a portion of the spinning reserve recuirements of the interconnected system. You have stated that you uculd want to continuo such a procedure and we believe it to be necessary in crder for an interchange type of agreement '

to be of value to both parties. When using ycur lovest cost units -

i to carry- your normal leads and to meet spinning reserve requirements, it is unlikely that there vould be any~other lcw cost units availible on your sys tem which cculd supply economy energy te Consumers Pcwer

• Company. Further, it appears that it will be practical for you -

to purchase firm capacity to some extent to maintain the mutual emerEency support level ratner than to install'small increments l- of generation. The encr6y charges associated with such. firm capacity purchases would in effect be economy purchases as ccmpared to ycur hiCher generatinC costs. ,

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• • • 15. Our proposal states that the point of connection l . '

between the two systems vould be negotiated but assumed to be near -

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' the Company's existing 138 hv system. We have not inventicated the feasibility of extending cur 138 kV cystem to your Hersey plant; however, if thic were done, there would.undoubcedly be scme contri-bution required on your part toward the cost of this extension.

. 16. Should the Alba tic, which would be maintained as

. standby only (normally open) be actually used for any given month for delivery of power under the agreement, such deliveries wenld be included with delivery and billing: for the Hersey tie (if any)

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for that particular month. As an example, if Concusers were ,

delivering ).O megawatta through the Hersey tie for some period of ,

, time during the month and if at another time during the month 10 megawatts were supplied through the Alba tie, the maximum delivery ,

for the month for billing purposes would be 10 mecanatts. On the

'other hand, if Consumers ucre delivering 20 megawatts to the Hercey

. tie'and if agaig at sore other time during the came month 10 ccca-

.watte were supplied to the Alba tie, the naximun delivery for the

, month for billing purposes would be 20 negawatts. Kilcwatt-hcur 1 for billing in both exampics would be the sum of the not kilowatt-

, hours 'for both supply points. In no inctance under this agreement a= initially propcced would pcwcr flou through both points of

. connection at the name time cince as was acreed, the Alba tie would be maintained normally cron for ctandl j purpose: enly and vc.uld, be used cnly when the Horney connectic, was cut of cervice. .-

17 It is assumed that the Alba tie ceuld be relecated,

,if desired, at ycur cryense. Censuter: Pcver Ccmpany wculd have to study any preposed new location to determine its effect en cur system cperations.  ; .

18. Two per cent deduction fren denand and energy measure-ments only applies to firm power purchases since the, wholesale rate-was d'esiEned fer service at distributien voltage. .utual emer6cncy support capacity and other energency support, capacity and energy ,

measurement would not include this two per cent adju tment.

, We hope that thic adequate 3y an: vers the quentiens raised.

It is succosted that we might again meet econ to revieu this entire -

proposal after you have had an opportunity to study this additional

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, information. ,

. Yours very truly,

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. g.t.&s l R. L. Paul c RLP/rcr

. General Superviser of CC: RECo3c, REA Admin Comnercial and Governmental-Sales

. ASteinbrecher, INEC ( - -

, 'JJolf, Traver c City *

- REduards, Grand Haven

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o CAPABILITY & LO D DATA , -

. Consumers Power Company -

'I. , Existing Capability A. Steam,?;uelear & Hydro 3,g

, , t.g Max het Max net

' Plant

, Unit fe=onst Plant -

Unit Demonst

.Wendock 1 'h2 2 h2 Witing 1 ,105' '

/ 2-- 105 3 62 *

. 3 132 i -

4 & -

s

' 5 72 F(

.. .6 72 Morrow 1 41 7 '

162 2 41

. 4.8 165 '

3 60

., ,679 4 3 210 Campbell l' 275 .

2 - 37 2 Saginav River 3 Units 80

> ., 647 Wealthy St 1 Unit 2 Kern -

1 halamar.co 1 Unit 23 r.

273 Elm St 2 Units 32 -

2 27h Big Rock 1 Unit 71 547 Hydro -lh Plants '136 Cobb ' .

1 68 2 TOTAL S l'Ayi, EUCLIAR &

. - 68 3322 ~

3 HYDRO 68 4 162 '

5 165 -

t 531 '

!!. Cas Turbine & Diesel -

ho of Units Campbell

~ 1 22 Caylord 5 101 Morrov 2' 40' '

Straits 1 25 -

Thetford h 176 .

, Weadock '1 . 21

• Witing 'l .

21 Allegan .

k k -

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_CRAND TOTAL O'<c.1:D _ 3732 ..

D.; Lonte Tern Purchanc . L

• Wolverine Power Corporation 11 Dov-Lu'3ington j

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Contrnets for_ Firm Power & Encreeney Sunnert Detroit Edison - '* ,

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Onta.fo Hydro .

Commonacalth Edison

' American Electric Power -

Toledo Edison .

Northern Indiana Public Service Firm Pool Transactions Ccmmitted .

1970

• 300 MW Diversity with Ontario 100 MW Firm Purchase from Ontario 100 MW Pirm Purchase from Toledo '

,

y -

200 1N Diversity with Ontario III. Iuthorized Canacity Additions "95'iTs y$~$Ecinare"d7o7 Periods on Firm Purchase Agreement.

Year Unit CPCo DECO 1970 Palisaacs 1 700/800 - '

1971 Pea::cra 100' 119 1971 Monrce 1 '

786 1971 Monroe 2

• 789 '

1972 Mcnroe 3 -

769 1972-73 Ludinston 955 917 1973 Monroe b -

786 1974 Fermi 2 -

1126 -

197h Midland 1 LS6 - - -

1975 Midland 2 615 -

1975 Karn 3 660 -

RXV. _ Contemplated Removals frca Service

• Yene _CPCo _ Deco .

1970-71 (10h) - -

1972-73 (55) (128) 1974-75 -

(622) .

V.

_ Peak Demand - Consumera Power Company Actual Summer *Vinter Forecast 1967 Summer' Wir.tcr 2692 2941 1970 1968 3370 3'sG5 2979 3180 1971' 37h0 1969 ' 3970 3183 3h05 1972 hoso 'h290

^

1973 4400 h625 1974 . h900 - ' 5130

. 1975 5395 5600

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m Mr. R. J. Dave in .)

.- Davctman Assocatts, Inc. - dAQ fl g

.- Grand Rapids, Michigan , , ,U.S.R.g 9 ' X, Censumers S g)/ l P0wer Company 5

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oene,.: ort.co.: ein wn uicnia.n Avenue..t.ca.on. u.cnio.n 4emoi . 4,e. coo sir 7ae.osso

. i January 8, 1971

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_ 49 / 2 - (,

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. EHo Mr. John Keyn, Manager *

• i( us pi Wolverine Electric Cooperative  ! xa 302 South Warren Avenue s o Big Rapids, Michigan h9307 A ON .W L

Dear Mr. Keen:

. 4 - i g

'As a6 reed in our meeting of January 6, we will proceed to redraft our proposed interchange-wholesale power purchase agree _- (_ ruts ment incorpcrating additional items er chanc,es discucced in cur meetings cf December 10 and Tanuary 6. These additional items or changes basically include: -

1. Initial service under this agreement to be initiated -

through the existing Alba ecnnection.

2. M2tual emergency support level to be established at 20 Kd.

3. contract to provide for future intereennection points as may be required and agreed to by both parties.

• . 14 To specify the details of the metering and billing for possible multiple interconnection points for both

. interchange and wholesale power.

5 Provisions covering unusual investments that may be required by the Company to supply firm capacity and/or energy purchases.

A draft of this agreement hopefully can be prepared and submitted to you fqr review and approval by February 1.

'" It is further understcod that developments on your int'er-

, connected system over the next few years might include: _, .

1. The installation of a 25 !S gas turbine peaker on Wolverine's system at Hersey in 1971 or 1972.

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,f, Janucry 8, 1971 .

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2. 'An increase in the capacity of the Alba interconnection point from 20 MVA to 30 40-50 MVA capacity in 1972. .

3. Elimination of the Alba ' interconnection point (to be moved to Lewiston) and establishing a second inter-connection point at Hersey in 1973 .

Our Engineering Department has made studies of the ability of our two systems to supply and to accept ' energy under various ,

conditions of service and at varicus possible interconnection points.

Confirmation of the basic data obtained frem these studies, which was previously supplied to you, is av ro llows:

1./ Consumers Pouer Company can supply to your sy' stem at ,

the Alba tic:

S (a) 60 FN with nornal conditions in 1972 at 955 voltase 15 FM with Alba /Gaylord cut in 1972 at 85% voltage (b

(c 150 MW with normal .onditions in 1973 at 95% voltage fA~. (d 100MWwithAlba/Livingstonoutin1973at85% voltage

2. Consumers Power Ccmpany can supply 65 IST in'1973 to your system under ncrmal conditions with:

(a) Interconnections at Chase and at Lewiston Junction

. (b) Hersey to Scuth Scar'-'- +^ fewisten cenverted to 133 kV .

(c) !GC?? having a 25 >N peaker at Hersey (d) 20 M7ar cf capaciters installed at Hersey (e) Voltage at Hersey held at 1.C0 per unit with a .

TCUL transformer It is understood that after you have had an opportunity to review the new draft of our proposed agreement and to evaluate it as to how it might apply to your future energy requirements, a decision will be made as to the implementation of this agreement, the installation of the gas turbine peaker at Hersey, or both. It is still our hope that this new agreement can eliminate or delay the need for additional generation on your system at this time.

Yours very truly, .

kJ s RLP/rar R. L. Paul - '

' General Superviscr of ' '

CC: RECole, REA Commercial and Governmental Sales AESteinbrecher, I:"EC - - - - . ,

VAJDaverman, Da*verman Assoc. .

1 REdwards, Grand Haven

, JDWolfe, Traverse City .

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3; . SYSTEM DEPAND (FM) HET ENERGY AT SOURCES (GWH) - i a na .  %

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• NMEC GRAND TRAV. C0lNC. NMEC GRAND TRAV. TOTAL.S ,

O O c WOLV. HAVEN CITY MAX. & WOLV. _HSVEN CITY e - .

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22.8 -

1970

.110.1 17.1 135.0 532.8 . 102.0 . 89.9 - 724.7 .

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.. I b. 1971 ~129.0 . 24.0 18.0 153.9' .581.8 107.0 94.6 .783.4 3 -

. -1972 . 140.6 25.2 20.0 167.2 635.6 . . 112.5 '- 105.1 .

853.2

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f 1973 . 153.1 26.5 21.4 '180.9 694.1 . 117.3' 112.5 <.- 923.9 N y -

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v 1974 166.9 27.8 22.8 - 195.8. -

758.2 -

124.0 119.8 1002.0 . .,

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S 8 tu 1975 182.1 29.1 24.4 212.0

• 828.3 . 130.0 128.2 -

1086.5 - -

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o ,e W .5 1976 197.4 30.5 26.1 228.6 ,

899;7 136.0 137.2 1172.9 . .

g - - -

. 1977 213.9 31.8 27.9 246.2. 977.1 . 142.0 146.6 1265.7-S,iz < .

= $x= ;

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"2JE .>2 1978 232.0 ,

33.4 2

,/.' 29.9 265.8 1061.4 148.0 . 157.2 . 1366.6 sp

1153.0 155.0..' 168.2 '1478.2 .

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3$!"

. c: u-1980 273.1 .

36.9 34.'3 309.9' 1252.7. -

163.0

• . 180.3 1596.0 FE,<e . . .

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. Daverman Associates, Inc. ..

Grand Rapids, Michigan

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Ew . cene,. ome.. 212 w..: u.cbg.n Av.nuo.s.c=.on.u.chigen 4 9201. Ar.m Coco 517 708 0550

. February 3, 1971 RLE

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. .. RJO Mr. John Keen, Manager ,

. . na Wolverine $lectric Cooperative /

302 South Warren Avenue )j d/(,

Big Rapids, Richigan 49307 l (

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Dear Mr. . ,

' Keen: T.

i - -

Attached for your review and consideration is a redraft

~

nits 4 of the proposed Agreement for Interchange and Whohsale Power Purchase between Censumers Pcwcr Company ar.d Ncrthern Michigan

, Electric Cceperative, Inc., Wolverine Electric Cccperative, Inc.,

the City of Traverse City, Michigan, and the City of Grand Haven, a

Michican. This draft contains the cha ges as discussed in our meeting of January 6. '

'ou will note in this contract that w are agreeing to integrate ;.ce meter readings of additional points of interconnee-tion that may be established by supplements to this agreement.

Wholesale purchases through =cre than ene point of interconnection would be billed under the provisions of the attached Exhibit C or any revisions thereto as may be approved by the duly constituted authorities having jurisdiction. Although not indicated in the rate,'ito delivery of wholesale purchases through multiple points of connection result in a Sp kVA additional charge in the capacity charge of the rate.

• As indicated in our recent conversation, our Legal Department has researched the question of the Cities of Traverse

' City and Grand Haven entering into this agreement as written, particularly in reference to paragraph 1 where all parties of the

.~ agreement will be jointly and severally liable for the performance of the obligations.of each of the parties under the agreement. .

Our Legal Departcent believes that the Michigan 1963 Constitution prohibits citics from so pledging their full faith and credit to

, corporations. We are continuing to study this matter to determine if other approaches might be used in binding the municipalities to this agreement.' Copica of this letter and agreement are being '

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Mr. John K:en . .

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. ... . - Fcbruary 3, 1971 ,

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..  ; sent to Traverse City and Grand Haven, and it is suggested that they determine for themac1ves their ability to enter into such~

agreements. - -

As indicated, the attached dr' aft of the agreement is still

... preliminary only and may require further revisions or changes before submitted for your acceptance and signature. 'n'e will be happy to discuss the osr. cement at your convenience.

., Yours very truly, .

~

.d aal .

a- R. L. Paul -

~ General Supervisor of -

RLP/rnr -

Commercial and Governmental Sc'es

~

CC: REcole,RNA

• p:Steinbrecher,NEC .

GJDaverman, Determan Assoc.

. REdvards, Gre.nd Haven .

JD'Jcife, Traverse City , _.

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Y Seccnd Draft

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• (PRELIMIIIARY OI!LY) .

w.nf c in 4, d 2/3 /

i f AGREEE:3T FOR I:ITERCHA:.cE AND WiOIESALE F0WER PURCHASE BETNEE:! COI;SU'CRS PCWER COMPA:1Y ,

M/*'T E C-

- . AND NORTHERN MICHIGAIT ELECTRIC CCOPE2ATr!E, INC. . / -

- WOLVERIIS ELECTRIC C00FFMTIVE, II C. /

CITY OF GPAI;D HAVEII, MICHIGAI! g CITY OF TPAVERSE CITY, MICHIGAN AGREEENT, made and entered into as of the day of ,

/

191, between CO::SU:'ERS PCWER CCMPAITf, a Michigari corporation, having its principal office in Jackson, Michigan, hereinafter cancd "Consecrs Pcwer",

as.first party, and NCRUERIT MICHIGA'I EIECTRIC CCOPERATIVE, D!C., WOLVERINE

' ~

ELECTRIC COOPERATIVE, INC., the CITY OF GRAII) HAVEN, MICHIGAli, and the CITY OF TRAVERSE CITY, MICHIGAN, hereinafter conectively called the "!C'.CPP Entities",

~

as second party.

WIDESSE'"H:

WiERFAS, Ccnsumers Pcver evns and operates electric generating, trans-mission and distribution facilities in the State of Michigan, and WHEREAS, Northern Michigan Electric Ccoperative, Inc. owns and oper-ates electric generating and transsission facilities in the State of Michigan, and ,

WHEREAS, Wolverine Electric Ccoperative, Inc. owns and cperates elec-trie ceneratin5 and transmission facilities in the State of Michige.$, and' WHEREAS, the City of Grand Haven, Michigan, operates electric gen-

'erating and distribution facilities in the City of Grand Haven and its e:rti-rons', and

• WHEREAS, the City of Traverse City, Michigan, operates electric gen-erating and distribution facilities in the City of Traverse City, ldchigan,

-and its environs, and t.

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.: s' WHEREAS, the FMCPP Entities have interconnected their respective systens, and WHEREAS, Consumers Power a .d Northern Michigan Electric Cooperative, Inc.

have entered into an existing Contract for Electric Service, dated December 20, 1967, under which wholesale power purchases-have been made by Northern Michigan .

Electric Cooperative, Inc. from Consumers Power, and under which a point of connection, hereinafter referred to as the Alba interconnection point, has

,,, been maintained by them between their respective systems, and WHEREAS, Consumers Power and'the FMCPP Entities desire to avail them-solves of the tutual benefits and advantages that may be realized by the inter-connection of the system of Consumers Power with the interconnected systems of the 1MCPP Entities for mutual emergency support, as well as for possible firm wholesale power purchases by the !MCPP Entities fron Cen::umers Power, and in furtherance therect Consumers Pcwer and the FMCPP Entities desire to' enter into this Agreement which, when effective, will cancel and terminate the aforesaid Contract for Electric Service between. Consumers Pcwer and Northern Michigan

~ Electric. Cooperative, Inc. -

NOW, THEREIORE, in consideration of the mutual covenants and agree-ments herein set forth, the SMCPP Entities, binding themselves jointly and severally to the terms and conditions of this Agreement, hereby covenant and

, agree with Consumers Power as follows:

1. Parties to This Astreement

• For_ all p"_rposes of this Agreement, the LMCPP Entities shall be treated as one party and their systems as one system, and they shall be jointly and several4 liable for the performance of the obligations of each of them under this Agreement. Consu=ers Power shall be treated as the other party to this Agreement. '

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- I A.ny dalivery of capncity or energy, any billing or paymsnt, and any notice, request, acknowledcment or other similar cc:r=unication between the

,- parties, which shall be made by or to any of the :t:CPP Entities shall be deemed to have been made by or to all of the !GCPP Entities.

, ,, The FB:CPP Entities hereby agree that their systems shall remain inter-conne ted throughout the life of this Agreement.

.P .Tnterchange Fr !'utual Energency Surrert

.Each of 1he parties hereto will, to the maxi =un extent it dec=s con-sistent with the srto and proper operation of its cun system, the furnishing of econcaical, dependable, and satisfactory service to its own load, and its obligations to this.1 parties with whom it is interconnected, make availabic to %e other party hereto during temporary emergencies on the latter's system, its available' generating capability in excess of its load requirements up to the capacity of the existing Alba interconnecticn point or any future inter-connectio:i points which =ay be established hereunder. The capacity of the existing Alba interconnection point, which is core specifically described in Secticn 5 hereof, is 20 F% As used in this Ag eetent, the term " third party" refers to any person, fir =, corporation, govern =ent agency, or other entity fulfilling electric utility responsibility in its power supply activities.

For prposes of this Agreement, " emergencies" are defined as unforeseen te=po-Tary outages of ge:hration, transmission, or other associated equipment which

. leaves either pari,, short of capacity and/or energy to meet its own systen operations or regt.nements, inuuding spinning reserves.

(a) 1'utual R..errency Su; tort Caracity and Enere r -

" Mutual E=ergency Support Capacity and Energy" is defined as capac-ity-and energy available from either party to the other, on a high degree of

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proba'oility, that my be scheduled for delivery on a day-to-day basis, but e

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not in excess of 30 days for any single e=crgency, and not 'in exesss of the level of !htual Emergency Support Capacity in effect at the time of such deliv-ery, .at the request of the receiving party in order to ausgent a portion of its available generating capacity during tempora.ry emergencies on its own system.

The delivery of thtual Emergency Support Capacity and Energy will be maintained "by the supplying' party unless an emergency or other unfereseen condition shall,

-lu*the opinion of the supplying party, prevent the continuation thereof. Com-m encing on the effective date hereof and continuing thereafter through Iovember 30, 1971, the level of !btual E=crgency Support Capacity shall be IG. Com-mencing on December 1, 1971, and continuing thereafter for the remainder of

~

! - the term of this Agreement, the level of 'utual Emergency Support Capacity

~

shall be as determined and redetermined from time to time in accordance with Exhibit A hereto. !btual Emergency Support Energy delivered hereunder shall be raturned in kind or paid for at the rate of 8 mills per k*4h, at the cption of the supplying party in accordance with parau raph h of Exhibit A here o.

There vill be no capacity charge fer Ihtual E=crgency Support Capacity delivered hereunder.

If the annual deter =inatien cf the level of Mtual Emergency Support Capacity =ade on or about Septe ber 1 of any year in accordance with Exhibit A

T .._teret'o shows that said level vill be less than 20 !G, the IC'CPP Entities sh 11 forthwith enter into a supplemental agreement hereunder for the purchase of

. firm wholesale power from Consumers Power in such amount as vill restere said

. level to 20 !G providing Consumers Power has power available. Such. supple = ental agree =ent shall be in effect during the 12-month period for which the annual deter =ination was made provided, however, that no unusual investment is required by Consu=ers Pover to' supply such firm wholesale power purchase, in which case,

"'  : ra T.upple: ental agreement providing for a term of greater than 12 months =ay

...be required. ,

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. .. 5 (b) Other Ebercenev Catacity and Ener .' -

~

Either party will deliver to the other emergency capacity and energy in excess of Matual Energency Support Capacity and Energy pt the request of the receiving party in order to augment a portion of its available generating capacity durira temporary emergencies on its system. The delivery of such other emergency capacity and energy will be maintained by the supplying .

unless an c=ercency or other unforeseen condition shall, in the opinion of the supplying party, prevent the continuation thereof. .

Such other emergency capacity and energy will be supplied and billed under terms and conditions -

as outlined in Exhibit B hereto. ~

(c) Incidental Ener:v '

~

" Incidental Energy" is defined as the difference between net actual interchange and net sche 61ed interchssge between the ;c.rties.

- Incidental Energy results frem the inability of autenatic load control equip =ent to p -

cisely maintain net interchange to a prescribed sche hle, r

Both parties shall attempt to operate their respective systems so '

as to avoid the flow of Incidental Energy over the interconnections hereunder .

To the extent that Incidental Energy flows from either party to the other ,

such energy shall be returned in kind or paid for at the rate of 8 mills per kWh at the option of the supplying par'ty.

3. .

Firn Wholesale Fover Purchases Firm wholesale pcwer purchases by the IGIOPP Entities from Consumers Power under this Agreement will be effected by means of supplemental rec =ents ca  !

hereto.  !

j The M10FP Entities shall pay for such purchases in accordance with Consumers Pover's Wholesale Contract Rate for Resale a e, Servic a copy of which is attached herato as Exhibit C, and in accordance with such i future revisions and a=end ents thereof, supplements thereto, or substitutes

, therefor as may be filed with and approved by duly constituted' re6ulatory l

~

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6 authorities having jurisdiction. I!othing. inithis Agreement shall preclude any of the 12<CPP Entitles from entering into se'p arate and distinct agreements with Consumers Pcwer for the purchase of firm wholesale power. ,

1. ' Character of Service 6 .

All' electric energy to be furnished by either palty to the other shall be alternating current, three phase, 60 hertz, at appro::imately 138,000 volts. . . l

5. Point of Delivery

=i- ,

The initial point of delivery for all electric energy to be furnished by either party to the other hereunder shall be at the existing Alba intercon-

nection point, which interconnection point is located at the Consumers Pcwer side of I!crthern Michigan Electric Cooperative, Inc.'s existing klba 138/69 kV substation located in the northwest h of Section 23, Tcvnship 30!T, Ran6e 651, Chestonia Tcvnship, Antrim Ccunty, Michigan.

Additicnal interconnection peints in the future, if required cr.d

mutually a reeable to the parties hereto, will be estab1' .ed by means cf supple-mental agreements hereto. .

6.~Meterina , ..

Electric energy to be furnished by either party to the other here-under shall be metered at 133,000 volts. Consumers Pcwer will continue to own and maintain the existing meters and metering equipment at the Alba inter-connection point, and shall furnish, install and maintain suitable and adequate meters and metering equipment at any future interconnection points, which may

, be established hereunder,- for the measurement of maximum demands and kWh delivered '

by the ICICPP Entities to Consumers Power.and by Consumers Power to the 104CPP Entities._ - A location for Consumers Pcwer's meters and metering equipment suitable ,

to Consumers Power shall be provided by Iorthern Michigan Elcetric Cooperative, Inc.

9

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'l. . .' , in its 138/69 kV Alba substation, and by the appropriate !OiCPP Entity at any future ihterconnection pcints which may be established hereunder, and adequate

. protection afforded to avoid damage thereto, tampering or interference with

such meters and metering equipment. Consumers Power shall inspect and test its meters. annually, and shall keep them within accepted standards of accuracy.

If the E!CPP Entities desire more frequent tests, they shall bear one-half of i -l the.' expense thereof. Each party shall have access to and the right to partic- 1

, ipate in the inspection and testing of such neters by its proper representatives.

Each party shall also have the right to read. any of said meters at all rea-

• sonable times.

If any interconnection points are established hereunder in addition to the Alba ' interconnection point, the demand and energy ceasurements so

. recorded shall be integrated for billing purposes.

Consumers Pcwer shall furnish to the M!CPP Entities the k'ih and demand

, data each conth which reflect the basis for deter =ination of charges cade pur-

suant"to the provisions of Sections 2 and 3 hereof. "

7. Parallel Cteration It is understcod that the Consumers Power and DiCPP Entity systems will normally be operated in parallel through the Alba interconnection point and any future intercornection points which may be established hereunder, having due regard for the operating limits of the aforesaid interconnection points.

8. Tie-I,ine Control an1 Frecuenev ?.eralation S

Boi.n parties will cooperate in for=ulating and maintaining operating Practices which will keep the net energy passing from one system to the'other as close as practicable to the prearranged schedule of power interchange and will. keep power swings between the syste=s to a minimum. Frequency will be regulated as close as practicable to 60 hertz by each party except when a ti=e correction is being made by frequency adjustment.

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• 9 Spinning Reserve Requirements * '

• So long as Consumers Power is a member'of a larger group of inter-connected utility systems which establishes spinning' reserve requirements for its members, Consumers Power will utilize all reasonable efforts under nornal non-cmergency operating conditions to maintain its spinning reserve require-ment as so established. ~

4 The IGICPP Entities will utilize all reasonable efforts under normal non-emergency operating conditions to maintain a minimum spinning reserve equal, in uccavatts, to the level of !titual Emergency Support Capacity in effect. *

10. Ucrmal F2cv of Kilevars ,

Except as other-sise provided in the next following sentence, each party vill endeavor to control the supply of kilovars so that the quantity passing from either system to the other vill, under normal cperating conditions, be as close as practicable to the prearra .ned schedule of interchange. Flev of kilovars frcs Consumers Pever tc the X!CPP Entities in connecticn with firm power purchases effected by supplemental agreements hereto shall be as desired _

by the !O! OPP Entities. '

11. Facilities to be Mirnished (a) By Consumers Feuer '

In addition to its said meters and metering equipment, Consumers Power shall furnish and maintain, at its expense, all transmission lines and other equipment on the Consumers Pcwer side of the Alba interconnection point.

(b) By the !O:CPP Entities The E!CPP Entities shall furnish and maintain, at their expense, all transmission lines and other equipment on the !O!CPP Entities' side of the Alba interconnection point. .,

Facilities for any future interconnection points which may be estab-lished hereunder shall be furnished and maintained by the parties as specified

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l. , in.th2. applicablo supplcuental agre:=ents establishing such interconnection points. .

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Neither 'p' arty shan have any obligation to inspect the other party's

. . y j facilities nor any responsibility with respect to the installation, repair,

.

• maintenance, replacement, relocation, removal or creration of the other party's

, facilities. .

• 12. Planning and Oneratin.c Cc =ittees (a) Planning Cc.mittee-

. There is hereby created a Planning Comittee composed of four nem- .

bers representing the 10'CPP Entities and two me=bers representing Consumers Power.- Each of the parties hereto shall designate, in a written comunicatica to the other party. its members of said Planning Cc=mittee and alternates who shan ,act in the absence of any one of its cc:bers.

Either party =;ty change its des'.gnated representatives er alternates

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at any time by written cer:=nicatien to the other party. Oc duties cf cali p

Plannins Cc= ittee are: .

,1)( To exchange data en lead forecast and planned generation capa-

. bilities on the respective syste=s of the parties for a period at al' times extending at least six years into the future. .

(2) To consider any engineering =atters as may, from time to t' ice,

'arise in connection with this Agreement.

-(3) To recompute the level of Ihtual E=ergency Support Capacity on an annual basis or as may otherwise be necessary.

(4) To reccamend any required changes of this Agreement.

(b) ' Overating Cemittee ,

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.There is hereby created an Operating Cc==ittee cc posed of fcur members representing the MCPP Entities and two members representing Consu=ers Power. Each of the parties hereto shall designate, in a written ec =unicaticn g,

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to the other party, its members of said Opciating Committee and alternates who

, shail act in the absence of any one of its' members. Either party may chance its desiCnated representatives or alternates at any time by written ec=munication to the other party. The duties of the Operating Cornittee are: *

(1) To determine and agree upon all matters related to the ' day-to-

, day interconnected operation of the parties' systems.

(2) To determine and agree upon all matters relating to operating ,

conditions during emergency situations which are not specifically provided herein. '

(3) To compute all billincs. ,

(c) Ernences .

The expenses for the establishment and maintaining of the planning and Operating Cc:=ittees shall be the re:pensiblity of each individual party as regards their respective personnel. Any expenses jointly incurred by either of said cenmittees in ca rying cut their respective duties, other than for the parties' persennel, shall be shared equally by the parties hereto. '

(d) Authority to A end er Su;;1enent Arreenent -

Neither of said cormittees shall have authority to amend or supple-ment this Agreement in any respect, it being the intent hereof th'at any amend-ment or supplement to this Agreement shall be made only by the parties hereto.

33 Billing Promptly after the beginning of each calendar month, each of the -

parties hereto shall render a bill to the other party for any charges which

,, are payable by such other party for services rendered durire the preceding month under the term of this Agreement. Said bill shall set forth the elec-tricpowerandene$gytransactionsbetweenthepartiesduringsaidmonthin such detail 'ar.d with such segre6ations as may be needed for operating records or for settlements under the provisions of this Agreement'.

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. I .) 11 All bills shall be paid within twenty (20) days from the date of rendering. If any bill is not paid within said twenty (20) day period, two percent (2%) of the amount thereof shan be added to such bill as a delayed payment charge.

li t. Liability Exc,ept as to the electric power and energy charges payable under this Agreement, neither party shall he liable to the other for damaces for

,,. any act, omission or circu= stance occasioned by or in consequence of any act of God, labor disturbance, act of the public enc y, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equip-ment, or by any other cause or causes beyond such party's control, including

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any curtailment, order regulation or restriction imposed by covernmental, military cr lawfully e:tablishei civilian authcrities, cr by the raking of necessary repairs u;cn the property or equipment of either party hereto.

Notwithstanding the provisiens of the feregeing paraeraph or any other previsions of this Agreement to the contrary, each party shall at '11 times assume all liability for, and shall indemnify and save the other party harmless frca any and all dama6es, losses, claims, demands, suits, recoveries, costs, legal fees, and expenses for injury to or death of any person or per-sons whomsoever, or for any loss, destrdetion of or damage to any property of third persons, firms, corporations, or other entities, arising out of or result-ing frem, either directly or indirectly, its cwn facilities, or arising out -

of or resulting frem, either directly or indirectly, any cicetric energy fur-

. nished to it hereunder after such energy has been delivered to it by such other

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15 Term , _ . ,

This Acrecuent shall be in effect for a ters of ten (10) years ce=-

mencirs on the day of , 19 , and shall thereupon automatically terminate without further action by either party. This Agreement

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16. Successors and Assiens ,

This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the respective parties hereto. This Agrec=ent

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, ,shall not be transferred or otherwisc alienated by either party without the other party's written consent, which consent shall not unreasonably be withheld.

, . 17 Cancellation of Existing Anreement This Agrec=ent supersedes and cancels as of the effective date hereof, the agreement between Consu ers Power and I!orthern Michi5an Elcetric Cooperative, Inc. dated December 20, 1967, with relation to the supply of electric energy. -

18. Govern ental Authority

, This Agreement is subject to valid laws, orders, rules' and regulations of duly constituted authorities having jurisdiction over the subject =atter of this Agreement.

IN WITIESS WE?.2C7, the parties hereto have executed this Agreement on the day ard year first above written.

CONSUMIRS. PCER CC:GAITf

. By Vice President .

NORTHIRN MICHIGAU EECTRIC COOPERATIVE, I';C.

By Its

, . . WOLVERIIS EIECTRIC COOPERATIVE, I:!C.

. . By Its ,

CITY OF GRA!:D HAVEN, MICHIGAN By Its ,

CITY OF TRAVERSE CITY, MICHIGAN

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COi*DITIOl'J, FATE 3 A CIIARGES 703 "UTUAL FJ:EEGEi'OY .FCET CAFACITY A"D E:"23GY

1. Both parties agree to supply Mutual Emergency Support Capacity and Energy, if available, as specified in Section 2, Paragraph (a), of this Agree =ent. .

2. On or about Septe:ber 1,197 , and on. or about Septe=ber 1 er each year thereafter during the tem of this agreement, the Planning Cc=mittee shall deterni.nc the level of Mutual Emergency Support Capacity to be in effect hereunder during the twelve-=onth period con =encing on the 1st day of December

,,. next folicwing each such determination. In the event of any addition to, or retirement of, the 1MOPP Entitics' electric generating capability, the Planning

. Committee shall inmediately redetermine the level of Mutual Emergency Support

. Capacity to be in effect hereunder during the remainder of the twelve-conth period in which such addition or retirement occurs. Each determination and redeterminatien of the level of Mutual Emergency Support Capacity in effect bereunder sh>'1 te =ade by the Plan.ing Ccemittee in accordance with Paragraph 3 of this Exhibit A and shall be reflected in this Agree =ent by means of an appro-priate supplement hereto.

3 The folleving fcrcula shn.11 de used by the Plannine; Cc =ittee in each determination and redetermination of the level of nttual Emergency Support Capacity: '

Mutual E:..crgency Support Capacity !GT = Ct l~ b ~ b2 - 1*075L .

Where: -

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t 1 f the IO:CPP Entities' total ocximum net demonstrated capability.

C1 '= IGT of maxi =um net demonstrated capability of the IC CPP Entities' largest single unii..

C2

• Mi of maximum net demonstrated capability of the IC:CPP Entities' second largest single unit.

L = The lO'CPP Entities' estimated annual peak hourly coinci-dental :SI de=and. '..

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. Mutual Enercency Support Encrcy delivered hereunder shall be

,, , settled for either by the return of equivalent energy or, at the option of 1'

the party that supplied such energy, at a rate of 8 mins per k'dh. If equiv-alent energy is returned, it shan be returned at times when the load conditions

• of the party receiving it are equivalent to the load conditions of such party at the time the energy for which it is returned was delivered or, if cuch party elects to have equivalent energy returned un

. l cr different conditions, it shan

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be returned in such amounts as win compensate for the different'e in conditions.

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CO :DITIO? 3, RATES AND CHADGES FOR OTIGR DEGENCY CAPACITY A?:D E :ERGY

1. Both parties cgree to supply other e=crgency capacity and energy, if available, as specified in Section 2, Paragraph (b), of this Agreement.

2. Such other c=ergency capacity and energy delivered by either party to the other shall be paid for by the receiving party in accordance with the following monthly rate:

Capacity Cha"ge: -

$1.80 per conth per kVA for the first 2200 kVA of billing demnd,

$1.60perconthperkV for all over 2200 kVA of billira demand.

Energy Charge:

.7p per kWh for the first 6,000,000 kWh of such other e=ergency energy used per month,

.6p per kWh for all cver 6,CCO,000 kWh of such other e=ergency energy used per =enth.

' Deter-inatien cf Eillir:

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A billir4 demnd shall be established for each billing conth if either or both of the follcwira events occur during such billirg =onth: '

Event No.1 - Xilovolta= peres of such other e=ergency support capacity are supplied in excess of the level of Mutual Emergency Support Capacity then in effect durira the first 30 days of an c=crgency.

Event No. 2 - Kilovolta= peres of such other e=ergency support capacity are supplied in any a=ount after the first

. 30 days of an e=crgency.

If only Event No.1 occurs during the billing conth, the billing demand for such other e=ergency support capacity supplied during such =cnth e

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shall be the' highest average one-hour demand created during su'h c month in excess of the level of Mutual D::ergency Suppor't Capacity then in effect.

If only' Event No. 2 ' occurs- during the billing month, the billing

. demand for such other emergency support capacity supplied during such month

.shall be the highest average one-hour demand' created during such conth..

If Event No. 1 and Event No. 2 both occur during the billing month,

' the , billing demand for such other emergency support capacity supplied during such month shall be the billing de=and for Evetic No.1 or .the billing demand

- for Event No. 2, each determined as above set forth, whichever is the greater.

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. WHOLESALE CO:.*rpAC2 PJCE for .

RESALE SGVICE - PARTIAL PURCHASE

/ (Contract Rate PP-1)

.I Avanability:

Open to any wholesale custc=cr desiring primary voltage service for resale purposes where the custc=cr generates a part of his power requirementa.

Nature of Service: .

. Unregulated alte nating current, 60 cycles, three phase, 2,1400 necinal volts or more, the particular nature of the supply voltage in each case to be dete=ined by the Cc=pany.

Monthly Rate: -

Capacity Charge:

of bining de=cr.d, v{2.COperkvaforthefirst2,2C0'c 1.80 per kva for * cver 2,2CC 'c /a cf tinir.g de-cr.d.

Energy Charge: .,

.7d per kwh fer the firs: 6,CCc,Cco kvh,

. .6p per kwh fer all ever 6,CCO,CCO kwtn.

Fuel Cost Adjustment: .

When the veighted average ecst of all fuel in sterage at the Ccmpany's intercennected electric generating stations, at the end of each of the three m:nths 1..ediately preceding the month covered by the cus:c=cr's bill, is more or less than 33.0 cents per minica Stu, there shan be a correspend-ing increase or decrease of .0012 cent per kilowatt-heur in the charge for all kile,.att-he.:rs included in such bill, for each full 0.1 cent per millien Stu increase above or decrease below 33.0 cents per minica stu. ,

Determination of Billing Demand:

The billing demand shall be the kilovolt-s. peres (kva) supplied during the 15-ninute peried of ec.ximu-. use in the billin:: -enth.

The billing demand shall not be less than 60% of the his'uW pre.-icus 11 ncnths. -

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. Minimum Charge: .

'The r.onthly minimun charge shall be the capacity charge in effect but not 'less than $1.C0 per kVA of reserved contract capacity.

Transformer Ownership: -

Where servit.e is supplied at a nominal voltage of 14,400 volts or less, the customer shall furnish, install and miintain all necessary transforming, controlling and protective equipment.

Where service is supplied at subtransmission or transmission voltage and the custeter Trevides all' of the ner- sary transforming, controlling and

,,, protective equipment, there shall l' . deducted frca the capacity charge herein provided for, the sum of 10 cents per kVA for subtransmission ser-vice or 20 cents per kVA for transmissien service (after the 25 deducticn referred to below) for the highest demand created during the month through such customer-owned equipe.ent or for the billing demand, whichever is greater.

Metering Adjustment: , .

Where service is supplied at a nominal voltage of more than 14,4C0 vo3ts, the Cc: pany cay elect to measure the service at the supply vcitage in which case 26 vill be deducted, for billing purpcses, frcn the demand and enercy measurenents thus =ade.

Term and Form of Contract: .

The service contract shall specify the ter of centract, tax adjustments, mini:n:= charges, nini=un demands a .i delcyed pajeent charges'.

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.a i c=4. . _ . . . _ Arlinial FC?tER SYSTEMS

_ Load Duration

$ PER 13'1 EDD F0D PEAKING $651!! STALLED 20/60 . . _ . _ SIMPLE CYCLE GAS TURDINE 12,000 BTU /KVil!R PEAKING G MID RANGE

$90 TUD:::'EY

1. 13 75 -

SimetE CyCte GAS TURe'"E 10,000 btu /Krii!R ADVANCED TECHNOLOGY TEC - --

- - - - - MID RANGE COMBINED CYCLE

$150 TUR ! KEY 150/350 I l GAS WRBINE i ' l 8,500/0,000 BTU /KrillR i i  !

HUCLEAR FOSSIL BASE l#AlUSAN 1El , ,

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PS-164

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I UNITED STATES OF AMERICA BEFORE THE

-ATOMIC ENERGY COMMISSION InLthe. Matter of )

)

CONSUNERS POWER COMPANY ) Docket Nos. 50-329A (Midland Plant, Units 1 and 2) ) 50-330A l

CERTIFICATE OF SERVICE

, I hereby.. certify that copies of F'IRST RESPONSE OF THE DEPART-MENT OF JUSTICE TO APPLICANT 'S INTERROGATORIES , dated March 2, 1973, in the above captioned matter have been served on the ,

following by deposit in the United States mail, first class or air mail, this 2nd day of March,1973:

Honorable Jercme Garfinkel Atomic Safety and Licensing Chairman, Acccic Safety and Board Panel Licensing Ecard U. S. Atcmic Energy Cocmission U. S. Ate ic Energy Ccm=issica Washington, D. C. 20543 Washington, D. C. 20545 Chair =an , Accmic Safety and Honorable Hugh K. Clark Licensing Appeals Board ,

Post Office Box 127A U. S. Atomic Energy Cecoission  !

Kennedyville, Maryland 21645 Washington, D. C. 20545 Honorable J. Venn Leeds, Jr. Mr. Abraham Braitman, Chie f Post Office Box 941 Office of Antitrust and Indemnity '

Houston, Texas 77001 U. S. Atomic Energy Commission j Washington, D. C. 20545  :

William Warfield Ross, Esquire l Keith S. Watson, Esquire Harold P. Graves, Esquire Wald, Harkrader & Ross Vice President and General Counsel 1320 Nineteenth Street, N.W. Consumers Power Company Washington, D. C. 20036 212 West Michigan Avenue Jackson, Michigan 49201

- Honorable Frank Kelly

. Attorney General Joseph Rutberg, Esquire State of Michigan Benjamin H. Vogler, Esquire l Lansing, Michigan 48913 Antitrust Counsel for AEC Regulatory Staff Robert A. Jablon. Esquire U. S. Atomic Energy Commission 2600 Virginia Avenue, N.W. Washington, D. C. 20545 Washington, D. C. 20037 .

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Mr. Frank W. Karas , Chief Public Proceedings Branch Office of the Secretary of the Corr:nission ..

U. S. Atomic Energy Co ";nission- "

Washin,gton, D. C. 20545 .- ~ ,

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g WALLACE E. ERAND

. Attorney, Ant'itrust Division Department of Justice Washington, D. C. 20530 i

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