ML19329E952
| ML19329E952 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 10/04/1971 |
| From: | Fairman J MICHIGAN MUNICIPAL COOPERATIVE POWER POOL, SPIEGEL, G. |
| To: | |
| References | |
| NUDOCS 8006190711 | |
| Download: ML19329E952 (73) | |
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UNITED STATES OF AMERICA BEFORE THE ATOMIC ENERGY COMMISSION .c In the Matter of ) ,,N
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Consumers P'ower Company ) Docket Nos h -329A )
(Midland Plant, Units 1 and 2) ) and 50-330A JOINT PETITION TO INTERVENE AND REQUEST FOR HEARING MTLTWn
- 1. The following named parties : City of Traverse City, Michigan and the Traverse City Light and Power Department; City of Grand Haven, -Michigan, Board of Light I and Power; City of Holland, Michigan, Board of Public Works; City of Zeeland, Michigan, and the Zeeland Board of Public Works; City of Coldwater, Michigan, Board of Public Utilities; the' Michigan Municipal Electric Association (collectively referred to as the " Michigan Municipals ") ; and Northern Michigan Electric Cooperative, Inc. (" Northern .
Michigan"), hereby petition to intervene in. the above-captioned proceedings as full parties in interest in accordance with Section 189 of the Atomic Energy Act of 1954, as amended ("the Act") and Section 2.714 of the Commission's Rules of Practice,10 C.F.R. Part 2. Further, THIS DOCUMENT CONTAINS P00R QUAllTY PAGES
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, i pursuant to . Notice published in the Federa'l Register on September 4,1971, the joint petitioners request hearing on the antitrust aspects of the application by the Consumers Power Company (" Applicant") . The petitioners request full participation as parties in any hearing which is held con-cerning such antitrust. matters.
- 2. The Michigan Municipal Electric Association '
(" Association") is an organization comprised of officials
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. of thirty-four (34) municipal electric departments or utility boards in the State of Michigan. The Association 's objective, t
among others, is that of assisting member utilities in the production, distribution and use of electricity for public service and resisting any pressures brought that are harmful to its members ' mutual well-being or that encourage the sale of municipal utility systems.
- 3. There are twenty-three municipally owned utility ,
systems serving approximately 490,000 kw of loads.in areas adjacent to the area served by the Applicant, sixteen of f
which own generating capacity. Five of the municipal systems, including Traverse City, Grand Haven and Zeeland, are inter- l l
connected with the Wolverine Electric Cooperative and I
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Northern Michigan. Fourteen municipal systems are served by the Applicant under electric rate schedules filed
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with the Federal Power CommissioL. The average cost of power and energy furnished by the Applicant to eleven of
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these systems ranged from 10.8 to 15.1 mills per kwh.
Since 1960 the Appl'icant has made offers or proposals to purchase five municipally-owned systems and has acquired
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two, Grayling, Michigan (1961) and Allegan, Michigan (1968) .
- 4. The Michigan Municipals are parties whose interests may be affected by the proceeding. Each of the individual Cities and the member systems represented by the Association in this joint petition for leave to intervene owns and
. operates a municipal electric utility distributing and selling electricity at retail in or about their respective communities. Each of the Cities owns generating facilities to serve all or part of its power needs. Holland and Coldwater
- /_ Amendment No. 19, Consumers Power Co. Application Docket Nos. 50-329A, 50-330A, pp. 7, 7-1, 7-2.
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_ Index of Filed Electric Rate Schedules, Bureau of Power, Federal Power Commission, September 30, 1970.
- / Amendment No. 19,-Docket Nos. 50-329A, 50-330A, pp.
17-1, 17-2.
- / Id.. a t pp. 19, 19-1.
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additionally are customers of the' Applicant under emergency
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and short term firm power contracts respectively.
- 5. Northern Michigan, Traverse City, Grand Haven N
and Wolverine Electric Cooperative, Inc. ( " Wolverine ")
are parties to the Michigan Municipals and Cooperatives Power Pool Agreement ("MMCPP Agreement") and petitioner Zeeland, and the Power and Light Departments of Lowell and Hart, Michigan are associates of Wolverine under the MMCPP
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Agreement. Northern Michigan purchases short term, firm power under contract with the Applicant and is the only MMCPP
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- member interconnected with the Applicant. '
- 6. Northern Michigan is a generating and transmission
("G & T") cooperative serving three distribution cooperatives whose territories (together with the four cooperatives served
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_ Appendix A, Holland contract, Applicands FPC Electric Rate Schedule 15.
Appendix B, Coldwater contract, Applicanth FPC Electric -
Rate Schedule 3. '
- / Wolverine Electric Cooperative, Inc. as a member of the MMCPP group is vitally concerned with this proceeding and has indicated its intention to seek intervention. It is unable to join in the petition at this time because formal authorization to da so must await affirmative action at its Board of Directors next meeting scheduled for October. Wolverine serves the O & A, Oceana, Tri-County and Western Michigan Electric Cooperatives.
See Appendix ~E. '
- / The MMCPP Agreement is attached hereto as Appendix C.
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by Wolverine) encompass the north and west portions of
- l Michigan's Lower Peninsula. From 42,639 kw of generating capacity installed on Northern Michigan's integrated system it produced net generation of 248 million kilowatt-hours
("kwh"); it received 11 mi~11 ion: from MMCPP members and purchased 8.2 million kWh from the Applicant during the calendar year 1970.. It delivered 253 million kwh to the
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lines.
- 7. Traverse City for the year ended June 30, 1970~
had installed generating capacity of 35,650 kw, sales of approximately 96.6 million kwh to 5,675 customers including l
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MMCPP pool members.
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See map, Appendix E. ,
- / Power System Statement, FPC Form 12, year ended December 31, 1970.
- / 1969 Annual Statistical. Report, Rural Electrification Borrowers, USDA, REA Bulletin,1-1, pp. 249-150
- / FPC Form 1-M, City of Traverse City, Light and Power Department, Annual Report for year ended June 30, 1970.
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'8. Grand Haven has-installed generating capacity l
of 33,630 kw.. During the year ended. June 1970 it sold i !
in excess of 118 million kwh to an average of 7,075 customers including sales for resale to the other MMCPP po'ol par- l
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ticipants. For the same fiscal year Holland had installed capacity of 77,250 kw and made sales' to 11,646 customers totaling 177 million kwh, including 6.'69 million kwh of sales for resale to the Applicant-at an average price of
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6 mills per kwh. ,'
9.. Coldwater for the current year ended June'30, 1971 sold in excess of 66 million kWh to 4,720 customers from its own-installed capacity of.16,625 kw. In contrast to Holland's sales in 1970 to the Applicant, Coldwater suppelemnted its own energy generated with purchases of 12.7 million .kwh from the Appli~c ant iat an average cost
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of 15.48 mills per cwh. The. Applicant states in its letter dated June 9,1971 to the Department of Justice modifying data provided in Amendment No. 19 to its
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- FPC Form 1-M, City of Grand, Haven, Board of Light and Power, Annual Report for year ended June 30, 1970.
- / FPC Form 1-M, City of' Holland, Board of Public Works, Annual Report for year ended June 30, 1970.
- / FPC Form 1-M, City of Co'ldwater, Board of Public Utilities, Annual Report for year ended June 30, 1971.
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application that its system bulk power costs for energy in-1970'were 5.7' mills per kwh at the delivery point from the primary. (345ky'138kW) transmission system. For 1977 this' figure is projected to be 4.6 mills. The total
'(demand and energy)' cost of 1977 bulk' power supply.at the l-transmission delivery points is estimated to be 13.0 mills.
(See - June 9, 1971 letter, p. 1, and Amendment No.19, pp.
9-10.)
. 10. The Department of Justice by letter dated June 28, 1971 to the Commission deals extensively with the competitive interests of the Michigan Municipals, Northern Michigan and Wolverine, and bases its recommendation that a hearing be held on antitrust issues primarily on the activities of the Applicant with respect to these joint
. petitioners in contrast with its dealings with the Detroit
. Edison Company and other large investor-owned systems outside ,
of the' State of Michigan.
- 11. By letter to the Applicant dated May 24, 1971, Traverse City sought to explore participation opportunities in the Midland project. Subsequent but inconclusive dis-cussion was held between representatives of the Applicant
' ~ and Traverre City on July 7, 1971. Each individual utility petitioning to'~ intervene would seek to participate in the Midland project.and secare rights to wheel such power across the ,
Applicant 's transmission system.
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- 12. The complete dominance of the Applicant and Detroit Edison in bulk power supply matters in the Lower
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Peninsula of Michigan, coupled with the water barrier of Great Lakes to the west and north leaves the individual petitioners in a position of being unable to look elsewhere for bulk power supply coordination. The City of Lansing, Michigan is the only smaller utility system owning generation which has p'rospective access (in 1972) to the highivoltage,
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interconnected transmission system of the Applicant. The Dow Chemical Company and the Wolverine Power Company both have access to the Electric Power Pooling Agreement (" Michigan
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Pool") between the Applicant and Detroit Edison. No such arrangements exist for the petitioners to coordinate their operations with the Applicant through participation in the Michigan Pool.
- 13. The Michigan Municipals and Northern Michigan submit that opportunity for access to bulk power supply and coordination must comport with the policies and laws governing activities of public utilities as articulated in Gainesville
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Department of Justice letter dated June 9,1971, pp.1-2
- / See Amendment No.19. pp. 5-6, 6-1 through 6-5, and Attach-ment B.
- / See Amendment No. 19, p. 6-5; Attachment C.
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Utilities Dept. v. Florida Power Corp., U. S. ,
39 L.W. 4601 (May 24, 1961) , and United States v. Otter Tail Power Co., U. S. Dist. Ct., 6th Div. Minn., Docket 6-69-Civ-139, Memorandum and Order, September 9,1971 A hearing should be held to determine if the granting of instant application will maintain a situation inconsistent with the antitrust laws and policies.
WilsREFORE and for the foregoing reasons the Michigan Municipals and Northern Michigan pray that:
(1) an order be entered by the Commission granting their intervention as full parties to the proceeding; (2) hearings be held on the antitrust matters raised herein and in the Department of Justice letter to the Commission dated June 28, 1971; (3) the application be conditioned to avoid violation of or inconsistency with the antitrust provisions of the Act and other provisions of the antitrust laws of the United States; and i
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(4) the petitioners be granted such other relief as to which it may be shown they are
, entitled.
Respectfully submitted, City of Traverse City, Michigan, and the Traverse City Light and Power Department; City of Grand Haven, Michigan, Board of Light and Power; city of Holland, Michigan, Board of
- Public Works; City of Zeeland, Michigan and the Zeeland Board of Public Works; City of Coldwater, ,
- Michigan, Board of Public Works; The Michigan Municipal Electric Association; and Northern Michigan Electric Cooperative, Inc. ,
By h . . A ames F.Fairman, Jr., ((
Their Attorney Law Officos of:
George Spiegel 2600 Virginia Avenue, N. W.
- Washington, D. C. 20037 October 4, 1971
d' UNITED STATES OF AMERICA BEFORE THE ATOMIC ENERGY COMMISSION _
In the Matter of )
) Docket Nos. 50-32 9A Consumers Power Company ) and 50-330A (Midland Plant, Units 1 and 2) ) -- -
5.
AFFIDAVIT James F. Fairman, Jr. , being first duly sworn, deposes _
and says that he is an attorney for the city of Traverse City, Michigan and the Traverse City Light and Power Department; City of Grand Haven, Michigan, Board of Light and Power; City of
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~ Holland, Michigan, Board of Public Works; City of Zeeland,
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Michigan, and the Zeeland Board of Public Works; City of Coldwater, Michigan, Board of Public Utilities; the Michigan Municipal Electric Association and Northern Michigan Electric Cooperative, Inc. and that as such he has signed the foregoing Joint Petition to Intervene and Request for Hearing for and on behalf of said parties; that he is authorized by the parties so to do that he has read said Petition and Request and is familiar with the contents thereof; and that the matters and things therei.. set forth are true and correct to the best of his knowledge, information or belief. _
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.,mn' Subscribed and sworn to ames F. F'airma'n , ' Jr .
before me this 4th day of October , 1971.
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Notary Public My commission expires : September 30, 1974
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.- a f UNITED STATES OF AMERICA t
BEFORE THE ATOMIC ENERGY COMMISSION In the Matter of , ) -
) Docket Nos. 50-32 9A
. Consumers Power Company ) and 50-330A (Midland Plant, Units 1 and 2) )
CERTIFICATE OF SERVICE I hereby certify that copies of the Joint Petition to Intervene and Rdquest for Hearing in the above-captioned matter were served upon the following, first class or air mail, this 4th day of October,1971:
'Algie A. Wells, Esq., Chairman ~~ Harold P. Graves, Esq.
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Atomic Safety and Elcensing Vice President and General Board Panel Counsel U. S. Atomic Energy Commission Consumers Power Company Washington, D. C. 20545 212 West Michigan Avenue Jackson, Michigan 49201 Mr. Stanley T. Robinson, Jr.
f Chief, Public Proceedings Branch William hu' field Ross, Esq.
Office of the Secretary of the Wald, Harkrader, Nicholson & Ross Commission 1320 - 19th Street, N. W.
U. S. Atomic Energy Commission Washington, D. C. 20036 Washington, D. C. 20545 -
Robert Lowenstein, Esq.
Robert E. Leidquist, Esq. Lowenstein & Newman U. S. Atomic Energy Commission 1100 Connecticut Avenue, N. W.
Wari,ington, D. C. 20545 Washington, D. C. 20036 Jost oh J. Saunders, Esq.
U. S. Department of Justice Antitrust Division
- Washington, D. C. 20530 Ah*
_ [ ames F. Fairman,'Jr. -
I Law Offices:
George Spiegel 2600 Virginia Avenue,, N. W.
Washington, D. C. 20037 N
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. -FIT,IN(i DATF.: 1D AI'b' A_GJEE*; Milt FU: El.':::TitIC liMitV1CE
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g CITY O} _ _ lipLIN;in, 14ICHIG/Ji _
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, .e AGREE:GNT, maic atir. entered int.o this 19th day of Ilovc .ber i ,
'- 1967, bet.ucen co::.pr2Rs ro:ma CC:.".liANY, a corporation aJthorized to trans-act business in ".ichig:n and having 'it principal office therein at Jackson, IIlchiCan, hert.in termed "Conmn.cr_s Power," and the CITY OF HOLI/;.~3,
- MICHIGM!, a !!ichica:t municipal corporation, by its BOARD OF PUBLIC '402K3, herein ter:cd " Holland."
WIT!333ETH: That, in considerat. ion of the mutual agreements herein to be kept and perfer:ed by the rarties hereto, it is agreed as follows:
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ElGRG31:CY car.'. CITY K-] Ei.EGY TO BE FURITISHED -
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1 Subject to the proxisient hercor, each of the parties hereto recog-nizes a mutual interest and advantese in traintaining a continuous and un-( interrupted supply of electric pc icr and energy available to custcmers of both the parties hereto. '_'n cach cvent of an c=crgency on either party's c1cetric systen, the other party shall make availabic to the party suffer- ,
inC the e=crcency all of its ele:tric sentrating carability in excess of t --'
its requirements for its ovn;.systen load and its prior obligations to sup-ply firm and c:ergency capacity. to third parties pursuant to acrectents in effect en December 1,1967, up to the li: tit of the rated capa:ity of the
- existing interconnection bet cca the parties hereto at the time of the encr-
~~ l gency.
14,000 kv. The present rated capacity of the aforesaid interconnection is By mutual agreement in writing, the rated cap 1 city of the afore-said interconnection may be increased during the tern of this A6 rec ent to a capacity level and at a cost that is equitable to both parties. Ex:ept l as otherwise provided herein, either party may enter into future intercen-l nection a5recaents with third pnrtie As used in this Acreccent, the tera i " third party" refers to-any Tercca, dra, corporation, Sovernment agency, or other entity fulfilling electric utility responsibility in its power supply activitics.'
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! 2. .CHAPJ.CTER OF SERVICE .
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- i l All electric energy to be furn'ished by either party hereunder shall
- I be h6,000 alternatin; volts. current, three phase, 60 cycles per second, at approximately
- 3. PoIt.r or DItr/IRY -
The point of delivery of all cle .. ric energy to be furnished by either
' rr.rty hercanier shall be at the Hollan.t side of Censuner:: Pcwcr's h6 kv air-tircak switch located in Holland's I:6/J2 5 kv substa;. ion yhich is located at Hollanl's
. Michigan.
Ja.mc DeYoung Plant at Third Street and Pine Avenue, Holland,
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- 4. METERING The electric encrcy to be furniched by cither party to the other i
hereunder chall be cotered at 7,2]3/12,500 voltc wyc. Concumer Powcr
- chan furnich, install and naint'.in cuitable and adequate =cterc and r r terin; cet:ipment for the ccacurcacnt of maximun decand and kilowatt-
- nours delivered by Holland to Concu.ters Power and by Concurcrc Power to Holland. A location for' Consumers TaveiTc ceterc and cetoring equipment, r
suitable ,to Consumers Power, chall be piovided'by Holland and adcquate protcetion afforded to avoid de ace thereto, tmperin; or interference with such ceterc and met: iring equip =nt. Concuserc Power chall incpcet and test its teters annually, and chall keep thc= within accepted stand-ach of accuracy. If Holland decires tore frequent tectc, it chall bear one half of the expence 'thereof. Each party chall have accces to and
- the r.'sht to participate in the incpcetion and testing of such teters by its proper recrecentatives. Each party chall alco have the richt to .
read any of said meters at all reasonable times.
Consumers Pcuer chall furnich to Holland the kilowatt-hour and
- demand data cach conth which reficat the bacis for detemination of
- charges cado purcuant to the provisions of Section 7 hercef. --.-
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5 FACILITIES TO BE FUPSISHED (a) By Consu c"s Power In addition to its caid acters and metering ,cquipment, Consu=crs l Power shall furnish and maintain, at its expense, all transsission lines
- and other equip ent on the Consu=crs Power side of the point of delivery described in Section 3 hereof.
(b) By Holland .
Holland' chall furnich and maintain, at its expense, its said 16/12 5.In subs 6 tion and all other equip:ent on the EcLland side of the 4
point of delivery deceribed in Section 3 hereof. In addition, Holland shall provide Consurers Power with the necccsary richts of way over Holland's streetc and property for uncurcrs Power'c trans=ission lines from Holland's corporate li=its to said point of delivery.
Ucither party,shall have any obligation to incpect the other pdrty'c fccilitics nor any responsibility with respect to the installa-tion, repair, caintenance, replacccent, relocation, rc= oval or operatics of the other party's facilitics. ,
- 6. PIKiirII!G AIID OPEIRTIITG CCC:ITIEE3 (a) Planning Committcc .
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There ic hereby created a Planninc Co:mittee compoced of two mc=berc. .Each of the partica hereto chan decignate, in a written hi .m-
communiention to the other party, one of the ecmberc of culd Planning Comittec and an alternate who chall act in hi:, stead whenever cuch ccm-ber is unahic to act. Either party may change its deci nated C reprecenta _..
tive or alternhte at any time by written com iunication to the other party.
The dutien of caid Planning Cosaittec chall include:
(1) Exchange of data on load forecact and planned Con- -
crntion capabilitico on the recpcetive cyctenc crf the par-tico for a period at all ticco extending four years into the future.
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(2) Determination and redetermination of cutual ch.er-gency capacity as conterplated in Section 7 hercof.
(3) Concideration of any engincering matters ac may, from time to tiEc, arice in connection with this{Agreenent.
(b) Operating Ccamittee There is hereby created aa operatin5 Co=mittec composed of two
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cembers. Ecch of the parties hereto chall designate, in a written commu- .
nication. to the other party, one of the tcabers of said Operating Co mittee
- and an alternate who chall act in his etcad whenever cuch cember is unable
, to act. Either party may change its decignated reprecentative or alternate et any time by written cc==unication to the other party. The dutico of caid Operating Co==ittee chall include:
(1) All matters related to the day-to-day operation of the interconnection between the tuo parties, including develop-cent of operating procedures as contcaplated in Section 10 hereof.
(2) Computation of all billings.
(3). All catter relating to operating conditions during c crconey situations.
(4) The accrediting of Holland's maximum net ac=onstrated capability after revicuing field tects of two-hour duration.
(c) Expences
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The expenses for the cctablicl= cat and maintaining of the' Plan-ning and Operating Comaittecc chall be the recponsibility of cach party as rcCards its cun personnel. Any expenccc jointly incurred by cither of said co:c.' .tecs in carrying out thcir recpcetive duticc, other than for the particc ' perconnel, chall be chared equally by the ,partico hereto.
'(d) guthority to Inend or Gunplement Acrect..cnt Neither of caid ec::tLteen chall 5tave authoiity to- crend or '.
_._,- cupplement thic Agreement in any recpect, it being the intent hereof
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that any nmendment or supplement to thic Acrccaent chan be ciade only by
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the partica hereto.- '
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7 CifARGF.3 FOR CAPACITY Atib E!ftT,Y TO DM FUR:TI5!TED -
(a) For Mutual. E :crcency Capccity and Emercs.cTEncrcf*lo IIc~PEniched Five (5) tocacatts of cutual caergency capacity chall be in effcet hercunder during the period from December 1,1967 to Deccaber 1, 1963. On or about July 1,1963, and on or about July 1 of cach year thercafter during the term horcof, the Planning Committec chall deter-mine the uutual cacrcency capacity to be in effcet hereunder during the twelve-month period cotzencing en the 1st day of Deccaber next following
- cach such detemi . tion. In the event _of any addition to, or retircrent _,
of, Holland's cicetric_ generating capability, the Plaiining Cercittee shall inncdiately redetermine the mutual cacrconcy capacity to be in effect here-under during the re=ainder of the period in which cuch addition or retire-cent occurs. Each detorcination and redetermination of the mutual c=crsency capacity in effect hereunder shall be made by the Plannins Coccittee in ac-cordance with Supplement A hereto and chall be reflected in this Agrec=cnt by acans of an appropriate supplccent hereto.
No capacity charge chall cyply to the mutual ecorceney capacity in effect at any tice hereunder nor to any electric encrcy delivered by either party to the other becauce of crercencicc (herein called "c crgency cncrgy") ?.o the extent that the esercency energy is delivered at a rate of delivery not in excess of the tutual crergency capacity in effect at the time of its delivery. Any encrcency cncr6y, which is delivered at a rate of delivery not in excess of the mutual c:r.ercency capacity in effect at the tiac of its delivery, shan bc (1) returned in kind and in a canner satisfactory to the party which delivered the c=ergency encrcy to the end that such c: crc ccy energy deliveries and return encrcy deliverien vin approximately equalize during each calendar =onth or (ii) at the deliver-ing party's opti~on, be. paid for at the rate of six cinc per kilowatt-hour.
(b) For Other E~.crsoney Capecity and E=crcency Energy To Ec Furniched Any c=crcency encrcy which is delivered by either party to the other at a rate of delivery in execcc of the mutual crercency capacity in effect at the time of its delivery shall be paid for by the receivi_nc party in accordance with the followinc rate, to wit: _
' Capacity Charge .
$190 per month per kva for the first 2,20 kva of . ..
billing demand,
$170 por conth per kva for an over 2,80 kva of bining demand. -
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- -//p per hwh for the first 6,000,000 kwh of such cmergency cncrcy uned per month.
.6p per kvh for all over 6,000,000 kwh.of such emerCencyLenerCy used per month. __.
. Determination of Bi))ing Demand A b1311ng demand shill be catablished only if the kilovolt-amperes supplied _during the one-hour period of maximum ute -in' the bi311ng month is in ex-cess of the mutual encrcency capacity then in effect, and such billip; demand shall be the hiChest averace
. one-hour _ demand created during such month in excess of the mutual cmor6cncy capacity then in effect.
Tax Clause- "
In the eyent Holland levics special taxes, excise taxes, income taxes, license recs, or rentals against
, Consumers Power's electric property or its electric operations,ortheproductionand/or,saleofelectric
- energy, Consumers Power's bills for electric service
~ to Holland shall be increased to cover such special --
charges which are attributable to this interconnection 7: -with the Holland Municipal elcetric system. In the
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' . event of any new or increased specific tax or excise imposed by Covernmental authority upon Consumers Power's generation or sale of electric energy, Consumers Pc:.er's bills for electric- service to Holland shall be increased to cover the portion cf such increased costs which is allocable to the electric service furnished by Consumers Power to Holland hereunder.
(c) For Incidental Energy Delivered Any incidental enerEy which is delivered by either party to the other shall b'e returned in kind or paid for at the rate of six mills per kilcwatt-hour, at the option of the delivering party, as is provided for emergency energy under Subsection (a) of this Section 7.
- 8. . BILLIt:0
'(a)Promptlyafterthebecinningobeachcalendarmonth,cachof the parties hereto shall render a bill to the other party for any charges which are payabic by such other party for services rendered during the -
precedin; month under the terms of this Agreement.
-! (b) All bills shall be paid wit'hin twenty (20) days from the date of rendering. If any bill is not paid within said tuenty (20) day period, two percent (Rf,). of the amount thercor shall,bc added to such bi31 as a dc3ayed payment charce. . ~ -
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'9 iWW.T.5T. OPERAT10?! ,
. It is contemplated by the parties herclo that their rcepcetive syn-tems will norr. ally be operated in parallel. Each party agrecs to install and properly maintain =ui. table approved protective appliances and device: _,
and to provide sufficient trained personnel to protect its equiIcont and service frem injury or interrupti'on which mi8ht be cauced by a flow of current to or'from the lines of either party, and to assume any loss, lia-bility or damage caused by a lack or, such protection.
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- 10. OPERATII:G PRCCEDUP.ES Operating procedures for implementation of day-to-day operations will be develcped by the' Operating Committee to cover the following re-
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quirements: ,
(a) Each party will endeavor to control the supply of kilovara so that the quantity passing frcm either system to the other will, under l
normal operating conditions, be as close to zero as practical.
(b) Spinning reserve requirements will be maintained by each party on an equitable basis.
- 11. COITdECTIO:iS ITITH OTHERS It is agreed that the electric encrcy to be supplied by Consuncrs Power to Holland hereunder shall be used solely to meet a part of the requirements of Holland in the operation of its electrical system located in and near the City of Holland, IHehiGan, and shall in no event be shared with or trancaitted or resold to any third party as defined in Section 1 l hereof. It is further agreed that without the written consent of-Consumers !
Power, Hollsad shall make no interconnection with any person, firm, corpora-tion, government agency or other ' entity which might result in either party bereto becoming ensaSed, directly or indirectly, in the transmission or sale at wholesale of electric ener6y in interstate commerce. If Holland
~
, violates any of the provisiens of this Section 11, Consumers Power may, at its option, terminate this A5reement forthwith by giving written notice of its intention so to do.
- 12. LIABILITY '
Except as to the capacity and encrcy charges payabic under Section 7 hereof, neither party shall be liable to the other for dameces for any act, caission or circumstance occasioned by o'r in consequence of any act of God, labor disturbance, act of the publi'c enemy, war, incurrection, riot, -fire, storn or ficod, explosion, break 2ge or accident to machinery or equipment, or by any other cause or causes beyond cuch party's control, including any curtailment, order, reculation or restriction imposed by governmental, mili-
. tary or 1mtfully catablished civilian authoritics, or by the makinc of nec-
_ cssary repairs upon the property or equipment of either party hereto.
1 l
1 1
.' 1
-~
_ . , -~ -
NotwithetandinC the proviciona of the forecoing paracraph or any other provision of thic Acrec=cnt to the coitLrury, ccch part,y chall at all timec uccu=e all liability for, and chall indemnify end save the . _
-other party harmlecc from any and all deances, locccc, claims, demands, suits, recoverics, costa, IcCal fccc, and expenses for injury to or death of any person or persons whoucocver, or for any loss, destruction of or acciccc to any property of third pcrnons, fimo, corporations, or other entitics, cricing out of or recultin; frat., cither directly or indirectly, its own facilitics, or arising out of or-resulting froc, either directly or indire.ctly, any cicetric encrcy furnished by it hereunder after such encrcy has been delivere;l by it to the other party.
13 TER'4 .
This hgreccent sha-11 be in effect for a term of nine (9) years cc=-
concing on December 1,1967; provide:1, houcver, that if at any time the mutual c crcency capacity, as detemined or redetemined by the Planning.
Coc littee pursuant to Section 7 hercof, shall ecual cero or less, this A6rcenent shall thereupon auto:stidally teminate without further action by cither party. This Agreczent may be cancelled at any time by muttial
. agreement of the parties in writing.
- 14. cat: CELL!.TIO!T OF PRE'/ICUS COI; TRACT This Agree =ent supercedes and cancels,' as of the effective date
' hereof, the agrec= cat between Consumers Power and Holland with relation to the supply of electric energy %ted October 6,1955
, 15 GOVEME/EITfAp NJTHORITY This Agree::ent is subject to valid laws, orders, rules and regula- !
tions of duly constituted authorities having jurisdiction over the sub-Ject matter of this Agreement.
- 16. SUCCESSO3S A'TD AS3IGIIS _ _
This Acrec= cat shall inure to tho benefit of and be binding upon the successors and assigns of the respective partice hereto. This Agree- )
mont shall not be tranc.ferred or otherwise alienated by cither party j
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without the other party's written conscut, which concent ch all not unten-sonably be withheld. -
IN WITi!E3S WiiEIEOF, the partico hereto ~ have executed this Agreement
, on the day and year first above written.
CO:XSIRERS PC'lER CCMPAITY
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B
'y /s/ B. G. Camribell~
non own>m Vice Prc'oident CITY OF HOLLA!TD
-Approved: - -
BY-ITS BOARD OF PUBLIC WORKS CITY OF HOLLtd.T By__'/s/ Rsnan11 C. Bosch President
- By_ /s/ Nelson Bosman '
By_ /s/ IIcnry S. Maentz
~
- Its Mayor
_ Vice President
/s/D.W. Schipper Its Clerk .
Approved: '
i /s/G.W.Cunningham City Attorney s
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SUPPL M :IT A
, TO AGREE.I:ff FOR ELECIltIC SEINICE DW1".fiSti CO!5U:.IIG POE3 CC;2WTY A*iD THE CITY OF Ilovember 15- , 1967 _
HOLIAITD D/JED As specifica in Section 7 of_ the Agreement, the 6cthod for deter-mining and redetercining the mecavabt valuc ~of mutual c=crceney capacity is as follows:
- 1. . Hollend's rescrve vill be ' determined and redetemined in accord-
^
ence with the formula:
R =' C ~ .L
- - where: __ _ _ ,
R = Holland"s reserve.
C = Holland's acxi ats net demonstrated capability.
L = Holland's estimated peak hourly, demand for the appropriate period.
- 2. Holland's reserve responsibility will'bc detemined and fedeter-
'I mined in accordance with the formula:
c-Cy + 0 5C2 - 0.15L RR = 2
+ 0.15L
. Where:
RR = Holland's reserve'rcsponsibility.
Cy = Maximum net demonstrated capability of Holland's lar6est unit.
C2 =' Maximum net denonstrated capability of Holland's I
-- second largest unit.. )
L . = Holland's entinated peak hourly demand for the l
appropriate period. (Same as in 1 above.) ,
3 The c:utual emer6ency capacity shall be determined and redeter-
- cined by subtracting Holland's reservo responsibility (RR as computed in l
2 above) from Holland's reserve (R as cc.:puted i i 1 above). The value of l l
mutual c crgency capacity to bc utilized for the appropriate period shall ,
j be rounded to the nearest cccavatt. _.
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CI':"I 07 IntAr.ii, MIc!IaA;r SUPPID' ITAL ACC~iT NO.1, rado thic 7th dny or May ,
1969, betwcon C0ilGlfCTG FC'CII C0"".VfY, n inchigan corporation, havins; its principal office at Jackaon, litchigen, o,0 the CITY Gy HCLT>diD, MICHICAN, a KLchigan mu11cipal corporaticn, by ita DOARD 07 FUBLIC UC~t:3.
IUCI2AS, the partica heroto hen entercel into a contract dated November 15, 1967, for tho interchango of cloctric nervica, and IILM') , ac.id partins dcaire to sc rd the first paragraph of Subsection (a) of Ocetion 7 of acid contract as hereinafter cot forth.
NOU TIIFE70I:, it la a:; reed no folleva:
~
- 1. ' Die firut parcgraph of Dubacetion (a) of Section 7 of anid contract, ronding as follava:
~
a
" "Five (5) neg::natto of witual c-.ergency capacity chan be in 4&
effect horcunder during the reriod frem Dece=ber 1, 1967 to 8 .@
Daconbor 1, 1958. On or nbout July 1,1968, and on or about &R
, Jttly 1 of cach year tharedte r ditring the term hereof, the o Finnning Cc ::titteo chmu detorrlno the mutual c:mrgency g$
c
, ccpacity to bo in offcet b our.dcr during the t'mive-month jo perled ccc=encing on the int d .y of Ibec=bor ne:tt folleving y, #
cach auch dotermin.ticn. In the cn nt of any ed'.'ltion to, or y {j i
retirt=ent of, Hollnnd's cPctric gancrating capability, the Sj',
Planning Cc=dttca crau it r dJntcly redetermine the mutual h,$o" cmergency capacity to bo in effect heroundar during the re-naindor of the period .1n whic't nuch cddition or retiremsnt ',@pd, occuro. Each datorninot300 en<1 redatermination.of the mutual # S
c:rZrgency enpacity in effec.t h rounder aball be nado by the S@N Flcnning Cc=.ittoo in occordence with Supplenont A hereto and a @ ,h
- chall bo reflected in thic A6rcencut by means of an cypropri- 834 ato cupplczont horcto." ' c, .e is hereby c:c.onded to rcad ca folleva 863 e c .@
w
, "Five (5) negawatto of nutuol c-argency capacity shall bo in '88 effect horcunder during the period frcm December 1,10.67 to 3 .S O
/.pril 2, l';69, cnd nir-Man (l'i) ragauntta of mutt'n1 crergoney g3"
, ccpacity chall to in effact h9rr under during the period from ,c, 8f April 2,1969 to Imcr@r 1,1991 On or about July 1, 1969,
- and on or chout Jaly 1 or ecch .v~tr thereafter during the term 9
d@6 n horcof, tho Plenning Ccs.v.itt.co shall determino tho mutual 30y t
ctorcency capacity to bo in offect horottador during tho twelvo- (3#M -
C M
m eO d I e
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?
month period co=.encing on the int dny of December neict follow-ing each auch determination. Jia the event of ary addition to, or retirement of, Holic.nd'n eb ctric gmlerating capability after April O,1%9, the Planning Cc- nittee chall Jr.nediatol;f redeter-mine the mutual c=crgency cap' city to be in effcet hereunder during the r e inder of the paried in which auch addition or retirement occuro. Each deterininntion and redetermination of the mutual c=orgency capacity iti effcct hereunder shall be wule t,y the Planning Cer=1tten In occordnnee with Supple ent A hereto and shall bo renected in thia Agreement by :::cens of an appro-priate supplc=cnt heroto."
- 2. Ib:copt as horoin othorvice provided, said contract dated November 15, 1%7, shall re=nin unchanged and in full force and effect.
Di WI'RIESS WHEREG, the parties tioreto nave executed this Supplemental Agrec=ent_on the day and p ar first above written. .
CO:ialSSRS PCTd2 C04PANY r.movm s. re o m 4
.. By_ _ .
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crisuro , - . . ~, .
v/ Vice Pre ident
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CITY OF HOLIKID Rd Approved:
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BY IT3 BOARD C7 PUBLIC WORKS ~ 3 CI17 0F HOLIMID Ef; o !
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" ' * " " " " ' ' " " ' " ^ ' ' ' ^ ~
h 5 2 N 'U C0!! TRACT FOR ELEC"lRIC SEltVICE
..i. ... .,.
AGREEltEtif, made and entered into this 4th day of April ,1956, between CO!!SUMERS POWER CCUPAIIY, a corporation authorized to transact business in Michi6an, and having its principd off.tce therein at Jackson, Michigan, herein termed the Company, anri the CITY OF(COLDWATER, a municipal corporation located in Branch County, Michiga herein termed the City.
WITNESSETil:
That, in consideration of the mutual agreements herein to be kept and
_p erformed by the parties hereto, it is agreed as follows:
- 1. ENERGY TO BE FUR!iISHED: ,
Subject to the terms and donditions hereof, the City agrees to pur-chase and accept from the Compary, snl the Company agrees to supply and sell to the City, electric energy as auxiliary or standby to the City's electric generating plant located in said City of Coldwater, Michigan, and which is used by the City to supply electric energy to its distribution system, but not in excess of 5000 kilovolt-amreres, being the capacity reserved by the
~
Company for the City's use. The Conpany will, at the written recuest of the City made at least thirty (30) days in adyance, permit an increase in such reserved capacity provided the Company has power available.
. 2. CHARACTER CF SERVICE: ,
'Ibe supply of electric. energy to be furnished by the Company to the City shall be alternating current, three phase, 60 cycles per second, at approximately 8320 volts. r 3
3 POIIIT OF DELIVERY:
-The point of delivery for all electric energy to be supplied here-under shall be at the .8320 volt side of the Company's 46,000/8320 volt trans-former substation located on the east t,ide of Bennett Stieet adjacent to the south end of the Manicipal Steam Plant in the City of Coldwater.
- h. METERING:
The Company shall furnisi$, install and maintain suitable and' adecuate meters and metering equipment for the mcasurement of caximum demands and kilowatt-hours delivered. Metering shall be at 8320 volts at the point of delivery des-
, cribed in Section 3 hereof. Ihc Cent.any shall periodically inspect and test its meters and keep them within accepted standards of accuracy. 'Ihe City shall have access to and the right to participste in the inspection and testing of such meters by its proper represcutttives. It shall also have the right to read any of- said meters at nil ren. onable times. Said meters shall be tested
~
i annually by the Company, and if the City desires more frequent tests, it shall bear one-half of the expense thercof.
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nas nune is mmi- enti~ i in Hu I""*He"c"al **
, uno eat l' v.,non n.ni.uonon tiu it.un no". d '.".""r's 1 nM.
'^
5.. EQUTINENT TO EE FURNISHED: __
I (a) By the Company:
In addition to its raid meters and metering equipment, the Company shall Darnish and maintain all trancmincion lines and other equipment for the delivery of energy to the point or delivery described in Section 3 hereof.
The Company, its agents and employces shall have full right and authority of ingress and egress at all times on and across the premises of the City for the purpose of constructing, operating, msintaining, replacing, relocating, re-pairing, moving and removing its said transmission lines and equipment. Said right of ingress and egress, bewever, shall not unreasonably interfere with the use of the premises of the City.
~~
(b) By the City:
The City shall furnish, without cost to the Company, a suitable site on the City's property for the Company's said.46,000/8320 volt substation to-gether with all necessary rights of way over the City's streets and property for the Company's transmission. lines from the City'se corporate limits to said substation site. The City shall also furnish and maintain, at its expense,
~ all facilities beyond said point of delivery. The Company shall have no obli-gation to inspect the City's naid facilities nor have any responsibility with respect to the installation, repair, maintenance, replacement, relocation, removal or operation of said facilities.
4
- 6. RATE:
The City agrees to pay for such electric energy delivered to it here-under in accordance with the following rate, to-wit:
Capacity Charge:
$2.00 per month per kva for the first 2200 kva of billing demand,
-- $1.80-per month per kva for all over 2200 kva of billing demand.
~ Energy Charge: .
.7p per kwh for the first 6,000,000 kwh used per month,
.6/ per kwh for all over 6,000,000 kwh used per month. --
Fuel Cost Adjustment Charge:
When the weighted avere.ge cost of all fuel in storage at the Company's interconnected electric generating stations, at the end of each of the three months i=cediately preceding the month covered by the City's bill, is more or less than 33 0 cents per million Dtn, there shall be a corresponding
! increase or decreare cf .0012 cent per kilowntt-hour in the
! charge for all kilowstt-hours included in such bill, for each
~~ ' full 0.1 cent per million Dtu increase above or decreaso below 33 0 cents por million stu. ,
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. . . - . - - - - - ~ -
Minimum Charge: .
The capacity charge included in the rate, but in no case 2 css than $5000 per month.
Delayed Ihyment Charg7: --
Two per cent (2%) of the total monthly bill if not paid within twenty (20) days from date rendered.
- Tux Clause: --
~
In the event the City .lcvies special taxes, excise taxes, income taxes, license fees or rentals against the Company's electric property, or its electric operations, or the production and/or sale of electric energy, bills for electric service to the City shall be increased to offset such special charges, and thereby prevent other customers-from beirg compelled to share such local in-creases. Bills shall also be increased to offset any new or increased specific tax or excise imposed by any governmental authority upon the Company's generation or '
sale of electric energy.
Determination of Maximum Demand: --- '
The maximum demand or rate of use of electric energy for each month shall be the F.reatest average load in kilovolt-amperes during any fif teen-minute period of such month as registered by suitabic instruments installed by the Company to make such determination.
Determination of Billing Denand: .
The billing demand for each month shall be the maximum demand for such month but not less than 60% of the hi6hest billing demand for the preceding eleven months, nor Jess than 2000 kilovolt-amperca.
- 7. LOAD BAIldbE AND USE OF SERVICE:
The City shall so arrange its circuits and operations as to avoid a current unbalance between the three phases of more than 15% between the
.hich and low phases. The City and its customers shall so use the service as not to disturb or interfere with the Company's service to its other customers.
No type of electrically operated device which could cause objectionable opera-ting conditions on the Company's system shall be attached by the Cit without the consent of the Company. ~
d
- 8. _ PARALLEL OPERATION:
' Permission is hereby given by the Company to the City to operate the City's electric generating pinot in parallel with the Company's system.
The. City agrees to instal] and properly maintain suitable approved appli-ances and devices and to provide sufficient trained personnel to protect
--~l i i ,,
- r
- its.equipnent and nervice and the equjpment and nervice of the Company from injury or interruptions which might, be caused by a flow of current from the Company's lines to the City'n connections or from a flow of current from the City's plant to the Company's 31nes, and to assume any loss, 11a-bility or dama6e caused by a lack of such protection. __
The electric measuring instruments from which information is taken for billing purposes will be equipped with ratchets or attachments to prevent a credit to the City for any current which its plant may generate and send back into the Company's lines. *
~
9 CONNECTI0fiS WITH OTHER3:
- It is agreed that the cicetric energy to be supplied by the Company to the City hereunder shall be used solely to meet a part of the recuirements of the City in the operation of its electrical system located in the State of
~
Fuchigan. It is further' agreed that without the written consent of the Com-
-pany, the City shall make no interconntetion with any. person, firm, corporation, government agency or other entity which might result in either party hereto -
becoming engaged, directly or indirectly, in the transmission or sale at wholesale of electric energy in interstate or foreign commerce. If the City makes such an interconnection without such written consent, the Company may, at its option, terminate this agreement forthwith by giving written notice of its intention so to do. __.
J 10. LIABILITY:
Except as to the capacity and ninimum charges payable by the City, prescribed in said rate, neither party shall be liable to the other for dimages for any act, omission or circumstance occasicned by or in consecuence of any act of God, labor disturbance, act of the public enemy, war, insur-rection, riot, fire, storm or 11001, explosion, breakage or accident to machinery or equipment, or by any other cause or causes beyond such party's control, including any curtailment, order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities, or by the making of necessary repairs upon the property or equipment of either party hereto.
~
Notwithatanding the provisions of the foregoing paragraph or any other pro 7ision of this agreement,to the contrary, the* City shall at all times assume all liability for, and shall indemnify and save the Company harnless from any and all dan 36cs, losses, claims, demands, suits, recoveries, costs and expenses for injury to or deo.th of any person or persons whomsoever, or for any loss, destruction of er damage to any property of third persons, firms, corporations, or other entities, arising out of or resulting from, either directly or indirectly, the City's facilities, or arising out of or resulting from, either directly or indirectly, the electric energy sold-here-under after it has been delivered by the Company to the City. I
- 11. BILLING: ,
The Company shall render to the City, within a reasonable time after
~
the first of each month, proper billing for electric energy furnished during
'the preceding month. Such accounts shall be paid by the City within twenty (20)daysafterdaterendered. ,
~~
l 4
, 12. 'S.nM: -
This agreement will extend for an initial tem of three (3) years
' from the lot day of July,1%6, and from year to year thereafter until temi-nated by mutual consent or by either party giving the other at lenot twe.ty-four (24) months' vritten notice of its aceire to teminate the same at the expiration of said initial term or at the expiration of any yearly period thereafter.
13 SUCCESSORS A*iD ASSIGriS: - -
6 This a6reement chall inure to the benefit of and be binding upon the successors and assigns of the respective parties hereto. This agreement
~
chall not be transferred by the City or otherwise alienated without the Com-pany's written concent.
- 14. CANCELLATION OF PREVIOU3 C0tmtACT:
- This acrec=ent supersedes and cancels, as 6f the effective date hereof, the agreement between the Company and the City with relation to the supply of electric energy dated as of January 12, 1953
_ IN WITNESS WEREOF, this agreement has been executed on behalf of said
. _. City, by its Mayor and City Clerk, acting under authority of resolution of the City Council, and has been executed on behalf of said Company by its duly 4, ' authorized official, as of the day and year first above written.
APPtoVE AS TO PCM CONSUMERS POWER COMPA!rt
~
WT'C ecHsuuris rowse courAHy By F, .h
- "7 _
t:" . -u c . ' "
i Vice Prer/ dent
. CITY OF OLD'JATER Dy I fr- / r /
- Its l' r i Attest;.
/f r\ ML 1 8
City Clerk .
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ilICHIGAil Il u ll I C I P A L S A il l) COOPERATIVES P 0ll E R P60L N'G R E E il E ll T BETWEEN 4
~
WOLVERINE ELECTRIC COOPERATIVE, INC.
NORTHERN MICHIGAN ELECTRIC COOPERATIVE, INC.
GRAND HAVEN BOARD OF LIG!fr AND POWER CITY OF TRAVERSE CITY s
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. ~ . . . . . . . - . . - . . . - . . - . . - - . . . , , - - - - - - - - - - - - - - - ~ ~ ~ ~
1 l
I THIS AGREEMENT, made this 21 day of August ,1968
' by and between Wolverine Electric Cooperativ,e, a. Michigan corporation, Northern
' Michigan Electric- Cooperative, a Highigan corporation, Grand flaven Board of, Light G Power..a municipal corporation, and City of Traverse City, a municipal corporation, such parties being herein referred to~ individually as a " Party" and any other electric system that may become a party to this agree-ment by unanimous consent of existing parties.
~
WITNESSETH 00.1 WilEREAS, the Parties are the owners or operators of electric generating and transmission facilities and are engaged in the business of_
generating and transmitping electric energy to the general public or to other electric distributing agencies; and 00.2 WilEREAS, the operating areas of the Parties closely adjoin each other and are wholly within the State of Michigan, and their systems are already interconnected by transmission lines and are operating in synchronism or are capable of being interconnected, and additional transmission facilities to accomplish additional interconnections between the systems are contemplated; and 00.3 WilEREA.S, the Parties recognize the many benefits to the Parties and'their consumers which sill result by coordinating the installation and operation of generating and transmission facilitics of the Parties and desire to study continually the benefits that may result to the Parties an'd their
- consumers from such coordination:
NOW TilEREFORE, the Parties mutually understand and agree as follows: -
ARTIC{E 1. TERM OF AGREliMENT
- 1.01' This Agreement (which includes Service Schedules "A" through "E",
inclusive) shall become offective and binding upon the Parties hereto -
- 1.-
n
. . _ _ . . , . . . = -. .--- - - ..... _ ._
ht such time as all the Parties hereto have executed this Agreement and such---
execution by any Party has been approved by any regulatory authority or agenev having jurisdiction over such Party, and such execution by any Party which is a borrower from the Rural Electrification Administration has also been approved by said Rural Electrificatio~n Admin'istration. Any. Party may terminate its participation in this Agreement by (five years) written notice to the other
, Parties hereto. -
ARTICLE II. OBJECTIVES 2.D1 It is the intent of this Agreement that the Parties collectively shall provide capacity adequate to carry the total Annual System Demands of all the Parties and normally to provide adequate Reserve Capacity. Toward' this end the objectives of this Agreement are to promote and encourage to the __
maximum practical extent coordination in the operation of the systems of the Parties, and to provide a means whereby the Parties may realize and share in the mutual benefits which can be obtained by such coordination and operation .
The Parties shall endeavor to coordinate their planning and construction of additional generating and transmission facilities.
ARTICLE III. DEFINITIONS For the purpose of this Agreement, and of the Service Schedules which' a're a part hereof, the following definitions shall apply.
~
3.01 Systcm Demand of a Party shall mean that nupber of kilowatts which is equal to.the kilowatt hours required in any clock hour attributable to energy required by such Party ddring such hour for supply of firm energy to the Party's consumers, including system losses, and also including any wheeling losses occuring on other systems and supplied by such Party for trans-mission of such firm energy, but excluding station uses. The System,, Demand --
of a Party shall not include the energy delivered by such Party to another Party under the terms of this Agreement or to any other cicctric supplier or suppliers under contract for a specific amount of firm power.
49
1 y- 3,,7 - . - . . _ _ - . .
a
- 7,;
a.. . .
3.02 AnnualSystemDemandlof' spar'tyshallmeanthehighestsystem5t.
mand of such Party occurring during the 12-month period ending with the current calendar month. -
~ ~
3.03 Equalization Firm Power sha.11 mean power and energy which is sold or purchased by the Parties _ on the basis -that it is continuously available for a period of 6 months or more _su'bjectLto the provisions .of Service Schedule "A".
~
3.04 Generating Capability of a Party for any month shall mean that amount of kilowatts,.less station use, that all the generating facilitics oper-ated by such Party as owner or 1,essee could normally supp,1y simultaneously, under such conditions as may be establis'hed by the Planning Committee. The ca-pability of the generating units of a Party-which are temporarily out of serv-ice for maintenance or repair shall be incli.tded in the generating capability of such Party. -
'3.05 Accredited Capability of a Party for any month shall mean:
(a) The generating capability of such party, plus (b) the value in kilowatts
- assigned to such Party's purchases under Service ~ Schedule "A" hereof, and to commit-ments for firm power from other electric suppliers under separate contracts now existing or her.einafter created, and minus -
(c) any firm commitment of such Party expressed in kilowatts to deliver power.to another Party under Service Schedule "A" hereof or to any other electric supplier or suppliers under separate contract or contracts now existing or hereinafter created for a specific amount of firm power.
The Accredited Capability for each Party sh'all be determined and assigned by the Planning Committeeiin accordance with the provisions of Paragraph 8.04 hereof.
, 3.06 Reserve Capacity of a, Party for any month shall mean the excess in kilowatts cf such Party's Accredited Capability over such Party's maximum System Demand for such month.
O e
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3.07 Spinning Reserve shall mean the amount of unloaded Generating Ca-pability which is synchronized with the interconnected systems of the Parties
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snd which is 'available upon demand.
3.08 An Emergency Outage shall mean the first six hours of any unanti-cipated, unscheduled outage of generating or transmission facilities.
3.09 A Scheduled Outage shall mean any outage of generating or trans-mission facilities which is scheduled in advance and shall include that portion of any unanticipated, unscheduled outage which continues after the first six hours thereof. -
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3.10 Emergency Energy sha'11 mean 5nergy which is supplied under this
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Agreement by any Party to any other Party during and as required by an Emer-gency Outage on such other Party's system, but which is not su'pplied under another prov'ision of this Agreement. .
3.11 Scheduled Outage Energy shall mean energy which is supplied under this Agreement by any Party to any other Party as a result of a Sched-uled Outage on such other Party's system but which is not supplied under
_ another provision of this' Agreement.
3.12 Economy Energy shall mean energy which is supplied at a savings from one Party's generating facilities which would not otherwise be fully utilized, but which can be utilized by another Party to reduce generation from units having higher operating costs or to avoid starting or operating generating units.
3.13_ Av'erage Production Cost per kilowatt hour of the supplying Party's system for a month shall be: '
(a)' The total cost of all fuel consumed by the generating units-in such month divided by the net kilo-
. watt hours produced by the unit in such month, plus (b) 2 Mills per kilowatt hour which represents _.
the average monthly production cost, other than fuel, of the unit, plus
- (c) An amount, to be determined by the Operating -
Committee, which amount shall represent the cost per ,
Lilowatt hour of incremental losses on the r" plying Party's system and og any other system or systems of electric suppliers not l'arties hereto incurred in de-livering 1:qualization Firm Power hereunder.
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3.14 Incremental Cost of a. supplying Party for operating generating ' ---
facilities to supply energy for some other Party shall be based on the follow-ing factors: *
(a) The Incremental Cost of the fuel and labor re-quired to generate the energy neccfsary to supply (1) the scheduled delivery to the rocciving Party's system, plus (2) the incremental losses incurred on the supp:ying Party's system, plus (3) the energy supplied to any intervening ,
system or systems as compensation for losses.
(b) The Incremental Cost of starting and operating any generating units which must be started as a result of supplying such.cnergy. _ .. - .
(c) The Incremental Cost of maintenance, which shall initially be 0.20 mill per kilowatt hour for all energy sup-plied until such time as some other amount may be agreed upon by the Operating Comnittee.
(d) The Incremental cost per kilowatt hour for any -- -
pa.rticular transaction shall be the total of such costs divided by the kilowatt hours scheduled for delivery to the receiving Party, either directly by the supplying party or through an intervening system or systems. .
3.15 Decremental Cost of a receiving Party for avoiding the operation of-generating facilities through the purchase of energy froc ome other Party shall be based on the following factors:
(a) The cost of the fuel and labor which such Party avoided by means of such purchase.
(b) The Decremental Ccst of avoiding the starting and operating of a generating unit or units.
(c) The Decremental Cost of maintenance, which shall initially bc. 0.20 mills per kilowatt hour for all genera- '
tion' avoided until such time as some other amount may be agreed upon by the Operating Comnittee. '
(d) The Decremental Cost per kilowatt hour shall be the total of such costs divided by the number of kilowatt
. hours schedu, led for delivery to the receiving Party, either -
directly by the supplying Party or through an intervening --
system or systems'. !
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ARTICLE IV.
REl.ATION TO OTilliR AGREEMiiNTS AND ODI.IGATIONS ~
1.in la,u. inn contained in this Agreement shall obligate any Party, (a) To provide any facilities for which it is unable to obtain necessary financing, or ,
(b) To enter into any contract or to amend or cancel any existing contract without the approval, if such ap-
[ proval is required, of the holder of such Party *e loan s contract, mortgage or bond indenture, or - ,
(c) To make any use of its facilitics in a manner which would be in violation of the terms of any existing indebtedness whether such indebtedness.is by agreement, bond, contract, note or ordinance ~.'
ARTICLE V. .
ADMINISTRATIVE AND COABIITTEE ORGANIZATION 5.01 The coordination of all power pool operations and power pool ac- -
tivities of the Parties pursuant to this Agreement shall be carried on by and under the direction of an Operating Committee and a Planning Committee. Unanl-ffirmative vote or consent by all members of either of said Committees shall be required to authorize any action, 5.02 The Operating Committee shall consist of a representative of each of the Parties, designated by cach Party as its authorized representative.
5.03 -The Planning Committee shall consist of a representative of each of the Parties, designat<.d by each Party as its authorized representative.
5.04 Each Party shall evidence appointments to the Operating Committee and the PlanDing Committee by written notice to the other Parties' hereto and by similar notice any Party may at any ' time change its representative or al-ternate on such Committees.
Any representative, by written notice to the other members of the Committee of which he is a member, may authorize an alternate to act temporarily an hi,s place. - '
5.05 -.
Each member of the'above Committees shall have the option of invit-ing other members of his organization or others, as his advisors, to attend meetings of the Committee of which he u a member.
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5.06 The.expens - cf each member of the above Committees and of his - - _ .
advisors shall b'e borne by t'? Party he represents.
5.07 Expens- incurred by'the Planning Committee or Operating Com-mittee in addition co these herein above meotioned shall be shared in a manner agreed to by the Parties. -
5.08 Each of the above Committees shall select annually one of its members to act as Chairman, it being the intent that the office of Chairman be rotated among the members. The Chairman shall appoint such other officers as are deemed necessarr. _ ... _ .
5.09 Minutes of the Committee meetings shall be recorded and copies
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thereof furnished to each member.
5.10 Recommendations or determinations of the Operating Committee or ,
Planning Committee shall be submitted to the Parties to the Agreement for such action as may be required or necessary.
5.11 The Planning Committee and Operating Committee shall hold regu .
. larly scheduled meetings at least twice annually following the summer and winter peak load periods of the Parties and at other times upon call of the Chairman or upon call of at least two of the Committee members. At least five days' written notice shall be given to each member of a Committee of any meeting of such Committee whenever possible.
ARTICLE VI. PLANNING COSNITTEE 6.01I Each Party agrees that it will endeavor to coordinate its plans for the installation of additional generating capacity and the associated purchase or sale of power and energy, and the construction of additional high voltage transmission facilities with those of the other Parties hereto. Such coordination shall b'e carried on through the Planning Committee. The Planning Committee shall determine and recommend such practices, rules, and procedures as may be required to coordinate the planning of the systems of the Parties pursuant to this Agreement. ,
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6.02 The representative of each Party on the Planning Committee _shall supply to each other' member of the Planning Committee, at least one month in advance of the regularly scheduled semi-annual meeting of the Committee, a monthly load and capability forecast of such Party's system in such form as the Planning Committee may specify for the ~ period of at least five years in advance or for such other jeriod in advance as the Planning Committee may specify.
6.03 The Planning Committee shall review the load and capability forecasts and the Reserve Capacity Obligations of the Parties periodically, and collect other-statisticar data and other informibn which would be o assistance to the Pdtties.
6.04 The Planning Corpittee will make coordinating studies of the plans of the Parties for the construction of generating and transmission facili-ties and will coordinate, ar'ange for, or conduct such transmission network studies of the systems of the Parties as may be required in determining the need for and the best location for additional generating units, the need and best location for additional transmission facilities.
6.05 In the event the Planning Committee finds tint there is need for additional generating or transmission facilities, the Committee shall deter-mine and recommend to each of the Parties a plan covering:
(a) The size of the generating unit to be installed or the. voltage and capacity of each new high voltage trans-mission facility.
(b) Th'e location of such facilities.
(c) Thetimewhensuchfacil!tiesshouldbeplaced in operction. ,
(d) The facilities, andParty or Parties which should install such (c) The purchase and sales between Parties under Serv- ~ ~
ices Schedule "A" to enable cach of the Parties to maintain its Accredited Capability equal to or greater than its An ,
nual System Demand and to meet its Reserta Capacity Obligation.
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6.06 In making such recommendations, the Planning Committee shall give due consideration to the size and anticipated rate of growth of each Party's load, the size of each Party's largest generating unit, the excess Reserve Ca-pacity of each Party, and the equitable staggering of future investments by the Parties for generating and trans'missi6h facilities in order to obtain maxi-
< mum economy and benefits from interconnected systems operation.
6.07 In the event that, from time to time, the studies indicate that additional generation or transmission facilities may be delayed by the pur-chase or sale of Equalization Firm Power by the Parties hereto, the Planning
' Committee shall recommend to each of the-Parties hereto,- the amount ar.d type of power and energy each Party hereto shall sell or purchase and. the period of such sale or purchase. If such recommendatio'ns are approved by each of the Parties involved in the purchase and sale, the' agreements necessary to imple-ment the recommendations shall be entered into by the said Parties. -- '
6.08 Jn th,e event the Planning Committee does not agree on the recon-mendations to be submitted pursuant to Paragraphs 6.05, 6.06 and 6.07, it shall submit alternate recommendations to each Party for its decision. Such recom-mendations shall include a list of the advantages and disadvantages of such alternatives. .
6.09 The Planning Committee shall also perform such other duties as may be requested of it by the Operating Committee and will make available to the Operating Committee all statistical data and other information it has col-lected.
ARTICLE VII. OPERATING COMMITTEE 7.01 The Operating Committe'c shall determine and recommend to each of the Parties such practices, rules and procedures as may be required to coordin-ate the operations'of the Parties, and shall coordinate such operations so_as to effect overall economy of operations consistent with reliability of service and shall also recommend methods, st'andards, and procedures for the determina-tion of costs for all transactions.
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7.02 At Icast one month in advance of the regularly scheduled semi ---
annual' meeting of the Committee, the representative of each Party shall supply to each other member of the Committee, a monthly load and capability forecast for such Party's system in such form as th,e Committee may designate covering the ensuing period of 18 months or for such other period as the Committee may specify.'
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7.03 The Operating Committee shall review the Spinning Reserve Obli-gation of the Parties periodically, and shall obtain and process periodically operating data of thn Parties and of oth,e,r interconnected , systems and such other information which_would be of assistance to the Parties or is uee.ae- '
necessary by the members of the Committee. .
7.04 The Operating Committee shall make studies of matters pertinent to the interconnected operation of the systems of the Parties and arrange for
. conducting such transmission network studies as may be necess'ary in the per-formanco of its duties hereunder.
7.05 The Operating Committee shall endeavor to coordinate the main-tenance schedules of the Parties so as to maintain at all times an adequate amount of operable Reserve Capacity on the combined systems of the Parties.
Any Party requiring Scheduled Ougage Energy shall follow the schedules and
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procedures prescribed by the Operating Committee for obtaining such energy.
7.06 The Operating Committee shall make available to the Planning Com-mittee all statistical data and other information collected and perform such duties as may be required by the Planning Committee. '
7.07 The Operating Committee shall determine and recommend the pro-cedures to be followed by the Parties in restoring the Spinning Reserves of the pool in the event of a large generator failure or other comparable contin-
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gency. Such proced" es shall be reviewed periodically by the Operating Ccq,.
mittee.
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ARTICLE'VIII. HAIRTENANCE 0F ADEQUATE CAPABILITY ~ ~~
8.01 Each Party expects and is expected to maintain utility responsi-bility for its own load and, as a part of such responsibility, shall maintain during each month Accredited Capability in an amount equal to or greater than
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its maximum System Demand for such month and shall also maintain at all times Reserve Capacity in an amount equal to or greater than such Party's Reserve Capacity Obligation, as hereinafter defined.
8.02 The Parties shall maintain, as a minimum a required Reserve Capa-city equal to the not capability of-the largest generating unit operated by any of the Parties of this Agreement. The responsibilty for maintaining this Re-serve Capability shall be shared on an equitable basis as provided in paragraph 8.03.
The required Reserve Capability of the Parties may be changed by unani-mous agreement of the Parties. * ~~
8.03 The Reserve Capacity Obligations of each Party, for any month, shall be determined by the following formula:
RCO = D,x RR, Where:
S RCO = Reserve Capacity Obligation of a Party D
= Annual System Demand of the Party S
= Sum of Annual System Demand of all Parties
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to this Agreement RR = Required Reserve Capability of the Parties 8.04 The Planning Committee shall determine'the Accredited Capability for each Party.in accordance with such rules as it shall defermine and recom-mend or the following basis: In respect to generating facilities, the Accredited Capability shall include the net power outp,ut in kilowatts which can be obtained from such facilities under average conditions of operation and with the equip-ment in a good state of repair, subject- to limitations, if any, upon the dmount of power output which can be delivered to the interconnected systems of the Parties.
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, 8.05 In the event the Planning Committeo determines (pursuant to Pars ---
, graph S.10) that the load and capability forecast of a Party indicates that during any month such Party will not have adequate Accredited Capability to meet its Reserve Capacity. Obligation, such Party shall make arrangements to obtain additional Accredited Capability equal to or greater than the amount and for tl period recommended by the Planning Committee so that during such month-it will have sufficient capacity to meet its Reserve capacity Obligation. In the event a Party's actual maximum System Demand during the current month is greater than its previously estimated maximum System Demand for such month as
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- a result of abnormal pormanent load growt15 and as a resuit thereof such Party .
is unable to meet its Reserve Capacity Obligation, such Party shall inanediately make arrangements for additional, Accredited C'apability and in'an amount as determined by the Planning Committee so that it will then have sufficient ca-
- pacity to meet its Reserve Capacity Obligations.
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8.06 The Reserve Capacity of all Parties which is in exce'ss of their :
Reserve Capacity Obligation, shall be made available to the Parties of the l .
Agreement. Those parties who do not have sufficient Reserve Capacity to meet their Reserve Capacity Obligation may purchase additional Accredited Capability from other Parties of this Agreement.in accordance with Service Schedule A.
All. Parties with excess Reserve Capacity shall be permitted to share in sales on a pro-rata basis.
ARTICLE IX. INSTALLATION OF ADDITIONAL FACILITIES
, 9.01 It is the intent hereof to provide for an cquitable staggering of future investments in generating capacity and other facilities in order to obtain maximum economy and benefits from interconnected system operation. It is understood that the thermal generating units installed by any Party hereafter should be the largest, most_oconomic'al size practicable, taking into co'nsidera-tion the size of the installing _ Party's system, the loads of the Parties, the anticipated growth of such loads, the transmission facilities required to trans-mit- the output -thereof to such loads, or to supply such load when the unit is not in service, and the ability of the e,ystems of 1:.. Parties and their -
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[interconnectionswithotherinterconnectedsystemstowithstandtheinstantane, ous loss of such unit without causing unstable operation. It is also under-stood that, in general , the amount of additional thermal generating capacity to
'be installed by any Party shall be in proportion to the load growth of such Party and chat the installation of specific generating units shall be rotated
.between the Parties so as to accomplish this overall intent.. Whenever the recommendation of the Planning Committee is that a Party conttruct and install >
.any additional generating or transmission facilities such Party shall not be deemed committed to such construction or installation until it has elected to accept such recommendation and either has executed such, separate independent l
agreements as may be necessary to provide for the manner in which the capabil-ity, use, annual cost and benefits of such additional generating unit wi11 be shared or has executed a separat5 agreement covering construction, operation, and maintenance of any additional interconnection or transmission lines so .
recommended, and the obligations of those who will benefit from the same with
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reference ther,eto.
9.02 , When it becomes necessary to add generating and or transmission facilities all Parties of this Agreement will study the benefits that may re-sult to the Parties by jointly financing the insta11ation of the optimum capacity.
9.03 Pursuard to all oth'er provisions of this Agreement, the Parties hereto shall have the following rights in lieu of wheeling charges:
t (a). Upon notice as required, the Parties hereto shall have the right to lease or sublease that part or parts of any remaining capabilities of any transmission system; and (b) Nothing in this Agreement shall be construed as L prohibiting the Parties of this Agreement from having the 4
right to build transmission facilities for the benefit of the Parties he'reto.
-ARTICLE X. - itAINTENANCE OF ADEQUATE SPINNING RESERVE i 10.01 The total Spinning Reserve of the Partics' at any time shall be equal!to or greater than the- targest net generated output on'any generating unit
-in operation'at such time on the intsrconnected systems. As soon as practicabic l
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ufter the occurrence of an emergency, the total Spinning Reserve of the Partits shall be rest 6 red following procedures therefor determined and recommended by the Operating Committee.
10.02 The Spinning Reserve oblig_ation of a Party at any time shall be equal to a percentage of the net output on the largest generating unit in the system based on the ratio of the Party's largest unit net capability to the sum of the Parties largest unit net capability and the ratio of the Party's Annual System Demand to the sum of the Parties non-coincidental Annual System Demand, equal weight given to each ratio.
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Initially the percentages shall be 18, for 'the City of Traverse City,16, for Grand llaven Board of Light and Power, 32, for Wolverine Electric Cooperative and 34 for Northern _ Michigan Electric Cooperative.
10.03 To assure that there will be an adequate amount of Spipping .
Reserve .on the systems of the Parties at all times, the Operating Committee shall designate the load dispatcher of one of the Parties as the Spinning Re- -
serve coordinator. Whenever a Party is unable to meet its Spinning Reserve Ob-ligation, such Party shall immedintely advise the Spinning Reserve coordinator and immediately arrange for some other Party having excess Spinning Reserve to supply its deficiency under Service Schedule "C".
ARTICLE XI. SERVICES TO BE RENDERED 11.01 The various specific services to be rendered in furtherance of the purposes of this Agreement are covered by Service Schedules "A" through "E" inclusive 7cftheAgreementasfollows:
"A" Equalization Firn Power Interchange Service "B"
- Emergency and Scheduled Outage Interchange Service "C" Spinning' Reserve Interchange Service
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"D"
- Economy Energy In~terchange Service ~
"E" Wheeling Services and Losses O e e
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ARTICLE XII. SERVICE OBLIGATIONS --.
12.01 Lowell Light 6 Power, Hart Light 6 Power, Zeeland Light 6 P
- will be considered as Associates to Wolverine Electric Cooperati Part'y to this Agreement. a All interchanges of power and energy between said
, Associates shall be considered as transactions Wolverine. es andbetween It is agreed that settlement for all transactions hereunder shal be between Wolverine and said Associates. Charges for 'said power and energy to be recommended by Operating Committee.
Approval for said recommendation to be by Wolverine and said Associates.
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12.02 I It is_ recognized that the. systems of the Parties hereto are n or may herealter from time to time be interconnected with other and syst that the interconnection agreements, mutualiassistance agr eements and pool agree-
.ments may presently exist or may be agreed to in the future and ments are necessary and may be beneficial to all Parties in an int system. erconnected It is understood that the Parties to this Agreement intend to as each other to the maximum extent of their capabilities, butgnized it is reco that deliveries under such interconnection agreements
, mutual assistance agree-ments or pool agreements with others may limit the capacities e to availabl Parties to this Agreement under the terms hereof .
12.03 Subject to the limitatiops set forth in Paragraph 12 10 . , any Party, upon request by any other Party, shall supply to rsuch othe Party Emer-gency Energy up to the full amount of its Available Accredited y pro-Capab vided that such request conforms. with the provisions of Service e "B".
Sch 12.04 Subject to the limitations set forth in paragraph 1210 . , Any Party upon request by any other Party, shall supply toersuch oth Party sched-uled Outage Energy up to the full amounts of its Availabicapability Accredited not required to maintain its Spinning Reserve Obligation; provided ,that the delivery thereof shall conform with the provisions ofcService e u e "B,Sand hdl provided further that a Party must use its Available Accredited e-Ca
. fore requesting Scheduled Outage Enorgy.
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12.05 Any Party, if requested to do so by any other Party, shall en _ _
deavor to procure through its interconnections with other electric suppliers
-* not signatory hereto, D ergency Energy or Scheduled Outage Energy in addition to that which can be supplied by the Parties which may be availabic under agree-mentscoveringsuchinterconnectionsfroma[sourdeor,sourceswhichwillresult in the lowest cost to the receiving Party and shall arrange for the delivery of
- such Emergency Energy or Schedule'd Outage Energy to such' receiving Party, pro-vided, that the delivery thereof can be made, in the sole judgment of the Party procuring such servico, without endangering its facilities or interfering with its obligations to its -Consumers, other Parrties or other electric suppliers.
12.06 Any Party whose transmission faci 1~ities are required to wheel Emergency Energy from the supplying Party to the receiving Party shall trans-mit such energy up to such amounts as will not, in the sole judgment of the
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wheeling Party, endanger its facilities or interfere with its obligations' to its consumers, other Parties or other electric suppliers.
12.0i Subject to the limitati.ons set forth in Paragraph 12.10, any
. Party upon request by any'other Party shall , supply such other Party Spinning Reserve up to the full amount of its Avaltlable Accredited ' Capability not re-quired to maintain its Spinning Reserve Obligation, provided that the delivery thereof shall conform with the provisions of Service Schedule "C", and provided further, a party shall not be obligated to supply Spinning Reserve if the requesting Party is not making full use of its Available Accredited Capability.
l 12.08 Subject to the limitations set forth in Paragraph 12.10, any Party, when called upon to do so by any other Party, shall supply Economy l I
Energy to such other Party, provided such call conforms with the provisions of Service Schedule "D" and provided further, that no Party shall be obligated to
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supply Economy Energy to any other Pa'rty unless the difference between t'he Decre-mental Cost of the receiving Party and the Incremental Cost of the Supplying Party excee'ds one (1) mill per kilowatt hour. ,
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12.09 Subject to the limitations set forth in Paragraph 12.10, cacit Party hereto agrees that it will permit wheeling of power and energy over its transmission facilities for deliveries of power and energy as scheduled between the Parties hereto for specific transactions under Service Schedules "A" through "E", incitisive of this Agreement. Nothing herein shall be con-
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strued as obligating any of the Parties hereto to wheel power and energy for
, others'not Parties of this Agreement. _
12.10 The obligations set forth in Paragraphs 12.03, 12.04, 12.07, 12.08 and 12.09 are each subject to the limitations that the Party on which the request is made as therein stated'shall not be obligated to use Available -
Accredited Capability if it is at the time being used to supply the require-ments of its cbnsumers, including obligations now existing or hereafter-created to other Parties or to other electric suppliers and shall not be obligated to
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deliver power and energy over its transmission facilities, if in the' sole judg-ment of said Party, such delivery.will endanger its facilities or interfere with its obligations, now existing or hereafter created, to its consumers or to other electric suppliers.
ARTICLE XIII. SERVICE CONDITIONS -
13.01 The systems of the Parties shall be operated interconnected con-tinuously under normal system conditions, and the Parties shall cooperate in k'aeping the frequency of the interconnected systems of the Parties at 60 cycles as closely as is practicable, in keeping the interchange of power and energy between-the systems of the Parties as closely as is practicable to the scheduled amounts and in maintaining mutually satisfactory voltage levels. Each Party shall be responsible for the reactive volt-ampere ' requirements of its system but reactive volt-ampercs may be~ interchanged between systems from time to time, subject to agreement between the-Parties involved, when benefit to one system
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may be gained thereby without causing hardship to another system.
13.02 The systems of the Parties shall normally be so maintained and operated as to minimi:c, in accordance with good practice, the l'ikelihood of a
' disturbance originating, in tha cystem of one Party t rom causing impairment to
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the service of the system of hny other Party or of any other system with which the : systems of the Parties are intercounccted. -
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13.03 'It is_ recognized that unintentional interchange of power._i!Lnd energy be' tween interconnected systems will occur because of the impossibility of co'n tinuously controlling generation exactly equal to the load. It also is recognized that 'due to the manner in which the systems of the Parties are interconnected with each other and filth o'ther systems, a portion of the power
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and energy scheduled for delivery between any t'o
, w of such interconnected sys-
. tems may not flow directly from the supplier thereof_to the receiver thereof over the intended route through the transmission systems of the Parties, but may result in inadv.ertent flows through.othar systems. Therefore, because of
, these conditions: _ .. - .
) *
(a) _All intentional power and energy deliveries,be-tween the system of one Party and the system of another
. Party shall be scheduled in advance.
_ (b)' It shall be the responsibility of each Party to maintain the net power and energy flowing into and out of-its. system during each hour so that deliveries are, as near as practicable, equal to the net scheduled amount. The dif-ference between the net scheduled deliveries and the actual
, net' deliveries shall be balanced out in kind in accordance with principles and practices established by the Operating
, Committee.
(c) When there is a scheduled power and energy deliv-ery by one Party to some other Party and a portion thereof actually flows through other systems which are not a part of the most Direct Route, the portion of the power and energy flowing through such other systems will be considered as hav-ing been delivered by the scheduled supplier thereof by the Most Direct Route to the extent that the amount scheduled i
over.the Most Direct Route plus the normal loads on the facili-ties constituting said Most Direct Route shall not exceed the capacity of such facilities.
(d) If any portion of the power and energy scheduled for delivery between any two of such interconnected systems flows through the system of another Party, such Party is entitled to i
be compensated for the net incremental losses in its system, if any, occasioned by suc!) inadvertent flow, by being furnished without cost an amount of power and energy estimated by such -
methods as are practicabic to,be equal to such net incremental losses.
(c) It is not the intent to grant any Party the right l
' generally tb use the system of 'any other Party as an intermediary
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in power and energy flows . nor shall consent by a Party to any such inadvertent' flow through its system ..__
in a particular case create any rights in a Party to the continuance of such flows, and where and to- the ex-l, tent that such inadvertent flow is objectionable to a Party experiencing such flow, the Parties shall cooper-ate to prevent _ such flow from occurring norn. ally and to minimize inadvertent flows of this cha'racter.
ARTICLE XIV. METERING ~ ~
14.01 All metering equipment required for recording the deliveries of power and energy _between thq systems. of each Party.and the systems of the other Parties with which is is interconnected shall be determined by the Op-erating Committee and shall be maintained by the Parties owning'such metering equipment, in accordance with good'practicee 14.02 ~
Should any such metering equipment at any time fail to register,
,or should the registration thereof be so erratic as to be meaning 1'ess, the
. power and energy delivered shall be dotermined from the best information avail-able.
ARTICLE XV. RECORD.S_
15.01 In addition to meter records, the Parties shall keep such log sheets and other records (determined by the Operating Committee) as may be
- needed to afford a clear history of the'various movements of power and energy between the systems of the Parties involved both in transactions hereunder and in transaStions between Parties hereto under other agreements between such Parties, and to effect such differentiation as may be needed in connection with settlements in respect to such, transactions. The originals of all such meter records and other records shall be open to inspection by representatives of the-Parties concerned and by the Operating Committee. -
15.02 Each Party shall furnish to the Operating Committee appropriate data from meter registrations and'from ot'her sources on such tim'e bases as are determined by the Operating Committee when such data is needed for settic-ments, special tests, operating records, or for othe purposes consistent with m
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the objectives hereof. As promptly as practicabic after the end of each month, each Party shall render to the other Parties concerned statements setting fo,rth appropriate data from meter registrations and other sources in such detail and 5
with such segregation as maf'be'needed for operating records and for settle-ments hereunder.. _ ,
ARTICLE XVI. BILLINGS AND PAYMENTS 16.01 For billing purposes, the amount of energy delivered pursuant to this Agreement by a supplying Party to a receiving Party, or delivered to the receiving Party through an intervening wheeling Party during any period, shall be the amount sci.cduled for delivery at a point or points.where the sys-tem of the receiving Party connects with the system of the supplying Party or .
with the system of the wheeling Party.
16.02 . Billing for any transaction involving generation or transmis- ,
sion capacity pursuant to this Agreement, including any wheeling charges per-taining to such transactions, shall be based upon the amount of such capacity committed in advance for delivery at a point or point where the systems of the receiving Party connects with either;the system of the supplying Party or with the system of the wheeling Party.
16.03 All bills shall be for the " Net Balance in Money", and shall include a. statement setting forth in such detail as may be necessary the amounts of power transactions during the billing period. The term " Net Balance in Money" as used herein shall mean the net compensation due one party to another properly debiting and crediting charges for all transactions under this Agree-ment during the billing period.
16.0% All bills for services supplied pursuant to this Agreement shall be rendered monthly by the supplying Party to the purchasing Party, _not latcr than fifteen days after the end of the period to which such bills are applicabic.
linicss otherwise agreed upon by the Operating Committee, such periods shall bc
. from 12:01 a.m. of the first day of one month to 12:01 a.m. of the first day e g e
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of.the succeeding month. Bills shall,bo due and paynble within fifteen days from the date such bills are rendered and payment shall be made when due and . . -
without deduction. Interest on any unpaid amount from the date due until the
-date which payment is nade shall accrue at the rate of one-half of one per cent per month or fraction thereof. -
16.05 All bills pertaining to Economy Energy transactions involving a wheeling party or parties shall be rendered monthly in a manner to be deter-mined by the Operating Committee.
16.06 In the event a party desires to dispute all or any part of the charges submitted by some other party, if shall neverthe'le'ss pay the full amount of the charges when due and give notification in writing within 'six months from ;
the date of the statement, stating the grounds on which the charges are dis-puted, and the amount in dispute. In the event the Parties involved cannot re-solve the dispute within 30 day notification in writing the matter shaEl be referred to the Operating Committee for review and recommendations.
ARTICLE XVII. UNCONTROLLABLE FORCE 17.01 A Party hereto shall not be considered to be in default in re-spect of any obligation hereunder if prevented from fulfilling such. obligation by reason of uncontrollable forces! The term " uncontrollable forces" shall be deemed for the purposes hereof to mean storm, flood, lightning, earthquake, 51re explosion, failure of facilities not due to lack of proper care of main-tenance, civil disturbance, labor dipturbance, sabotage, war, national emergency, restraint.by court or public authority, or other causes treyond the control of the Party affected, which such Party could not reasonably have been expected to avoid by exercise of due diligence and foresight and by provision of reserves in accordance with the requirements of this Agreement. Any Party unable to ful-
. fill any obligation by reason of uncontrollabig forces will exercise due dili-
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gence to remove disability with reasonabic dispatch.
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_ ARTICLE XVIII. RAIVERS .
18.01.Any waiver at any time by any Party of its rights with respec to a default under this Agreement, or with respect to any other matter s ng ari i in connection with this Agreement, shall not be deemed a waiver w to any subcequent default or matter.'
Any}delaysho.rtofthestatutoryperiod of limitation in asserting or enforcing any right shall not be deemed a wa of such right, except as provided in Paragraph 16.06 of this Agreement.
, ARTICLE XIX. NOTICES 19.01 by Any formal notice,* demand,or request req'uired or. authorized this Agreement shall Be deemed properly gi'ven if mailed ,
postage prepaid, to the executive office for the Party concerned.
19.02 Any notice or request of a routine characted in connection with
- delivery of power and energy, or in connection with operation of facilities shall be given in such manner as the Operating Committee from time to tim shall arrange.
ARTICLE XX.
SUCCESSORSANDASSIGNfi 20.01 ~
This Agreement shall be binding on and inure to the benefit of
'tne successors and assi gns of the respective Parties.
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.. o IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be signed in their respective corporate names by their duly authorized executive-officers and their corporate seals to be hereunto affixed and attested by their Secretaries. *
. WOLVERINE FLECTRIC COOPERATIVE, INC.
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By: Howard Pung leo LaFolnte Secretary President NORTHERN MICHIGAN ELECTRIC COOPERATIVF, By: . C. Victor Lyon William Korthase __
Secretary President GRAND HAVEN BOARD OF LIGHT 6 POWER-By: William Swier, Jr. William M. Creason Cicrk Mayor CITY OF TRAVERSE CITY By: F. i. M c Call Roger Kephart Clerk Mayor ,
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SERV-- ICE SCHEDULE A i
EQUALIZATION FIRM POWER INTERCHANGE SERVICE Section 1.
Service to be Provided* $ .
1.01 This Schedule provides for the sale of Equalization Firm Power between Parties of this Agreement. Equalization Firm Power shall mean power and energy which is sold on the basis that it is continuously available.
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Section 2. Conditions of Service 2.01 This schedule shall be availabic for the sale of Equalization Firm T-ter on a 6 month basis or longer.
2.02 Equalization Firm Power shall be supplied through transiassion facilities which have adequate capacity for transmitting such power and energy, and when wheeling over an intervening Party's system is required, arrangements shall be made for such wheeling for the same period of time as the purchase ar-rangement.
Section 3. Scheduling of Deliveries 3.01 It shall be the responsibility of the purchasing Party to initi-ate scheduled deliveries of power and ei.ergy hereunder, and the scheduled rate of delivery shall nqt exceed the anount heing purchased under this schedule.
Due consideration'shall be given to scheduling of delivorles hereunder, both with relation to r, ate of change of delivery and continuity of delivery so as
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not to cause undue hardship on the supplying Party's system.
Section 4. Schedule of Rates 4.01 ThereceivingPartybhallpaytotheSupplyingPartyforEquali-zation Firm Power furnished during any month uader this Schedule an amount
,_ - determined from the following schedule of rates:
I, - 1A -
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Service Schedule A - contd.
Demand Chargo - Por a minimum of 1000 kilowatts or additional
" multiples of 500 kilowatts committed by the supplier at the
, rate of $1.25 per kilowatt per month. - ---
Energy Charge - For all energy supplied from the supplying
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Party's system a charge per kilowatt hour of whichever is the greater:
- 1. 6 mills, or , _
- 11. The Average Pfoduction Cost for the month of the supplying Party's system for both the energy delivered to the purchasing Party and the energy supplied by the sell-ing Farty to any intervening Party or Par-ties as compensation for losses.
4.02 In the event that service,cannot be supp_11.ed on the effective date of an Agreement to sell Equalization Firm Powe,r under this Service Schedulo due to causes specified in Article XVII, the purchasing Party shall be entitled, until such time as the supplying Party has made its full investment in the gen-erating equipment from which the service hereunder will be supplied to a reduc-tion in the demand charge in the ratio that the balance due upon the purchase price of such equipment bears to the total cost thereof. Except as herein pro-vided, the full demand charge shall remain due and payable irrespective of the existence of causes specified in Article XVII.
4.03 The prices set forth above shall be reviewed by each of the Parties with a view to possible change thereof whenever any Party so requests in writing.
4.04 IntheeventEqualijationFirmPowerhereunderissuppliedthrough the system of an intervening Partf or Parties, the provisions of Service Sched-ule E shall also. apply.
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i SERVICE SCllEDULE B I
EMERGENCY AND SCHEDULED OUTAGE ENERGY INTERCHANGE SERVICE l l
Section 1. ServicetobeProvided .,_ .
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1.01 This Schedule provi es for the supply of energy by any one Party !
to any other Party during Emergency Outages or Scheduled Outages of generating or transmission facilities or both.
Section 2. Scheduling of Deliveries .. - -
t 2.01 Deliveries of Emergency Energy shall be scheduled as soon as pos- ;
sible after the occurence of an Emergency Outage in accordance wi.th principles and practices determined and recommended by the Operating Committee.
Schedule 3. Schedule of Rates 3.01 The receiving Party shall pay to the supplying Party for Emergency Energy furnished during any month under this Schedule from the supplier's gener-ating facilities, 1 cent per kilowatt hour, provided however, that the supplier of such Emergency Energy may, at its option, require the purchaser thereof.to return such energy at such times and undeY such conditions that the supplying Party will
,not experience a loss due to.the transaction, or under conditions mutually agree-able to both Parties, in lieu of having the purchaser, thereof pay the amounts specified herein.. ;
3.t2
'Ihe receiving Party shall pay to the , supplying Party for scheduled outageenergyfurnishedduringanymonthunderthis{Schedulefromthesupplier's .
generating facilities an amount'of whichever is tho' greatest:
- a. 6.S mills per kilowatt hour for both the energy delivered to the purchasing Party and the energy supplied by the s _,
system or systems lp11ing Partyfortolosses, as compensation any intervening or b.
- 110 percent of the Incremental Cost of producing i such energy, or <
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-Service Schedule A - contd.
Demand Charge - Por a minimum of 1000 kilowatts or additional multiples of 500 kilowatts committed by the supplier at the rate of $1.25 per kilowatt per-month. ~--
- Energy Charge - For all endrgy supplied from the supplying Party's system a charge per kilowatt hour of whichever is the greater:
- 1. 6 mills, or _
- 11. The Average Production Cost for the month
- of the supplying Party's system for both the energy delivered to the purchasing Party and the energy supplied by the sell-ing Party to any intervening Party or Par-ties as compensation for losses.
4.02 In the event that service cannot be supp_11.ed on the effective date of an Agreement to sell Equalization Firm Powe,r under this Service Schedule due
. to causes specified in Article XVII, the purchasing Party shall be entitled, until such time as the supplying Party has made its full investment in the gen-erating equipment from which the service hereunder will be supplied to a reduc-tion in the demand charge in the ratio that the balance due upon the purchase price of such equipment bears to the total cost thereof. Except as herein pro-vided, t.he full demand charge shall remain due and payable irrespective of the existence of causes specified in Article XVII.
4.03 The prices set forth above shall be reviewed by each of the Parties with a view to possible change thereof whenever any Party so requests in writing.
4.04 In the event Equali,zation Firm Power hereunder is supplied through the system of an interve'ning Party or Parties, the provisions of Service Sched-
- j ule E shall also. apply. - 4 e
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. Service Schedule B - contd;
- c. 110 percent of the Average Cost to the Purchas-ing Party had it produced such energy with the ----
'~ generating unit which is out of service, which average cost shall include but not be limited to the following: '
- 1. Fuel cost saved
- 11. Operation costs saved 111. Maintenance, cost of 0.2 mill per kilowatt hour _
provided, however, that the supplier of such Scheduled Outage Energy may, at
'its option, require the purchaser thereof to return such energy at such times
- and under such conditions that the supplying Party will not- experience loss due to the transaction, or under conditions mu,tually agreeable to*both Parties, in lieu of having the purchaser thereof pay the amount specified herein.
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3.03 In the event Emergency Energy or Schedu1ed Outage Energy must be
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supplied through the system of an intervening, Party or Parties, the prov'irions of Service Schedule F shall apply.
3.04 For any Emergency Energy or Scheduled Outage Energy which the sup-plying Party is called upon to procure from electric suppliers not signatory hereto for delivery to the receiving Party, the receiving Party shall pay to the- supplying Party 110 percent of the cost of procuring such energy, but not less than the rates specified herein, in addi. tion to wheeling and loss compensa-
. tion as set forth in Service Schedule.E.
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SERVICE SCilEDULE C SPINNING RESERVE INTERCHANGE SERVICE Section 1. Service to be Provided _.
1.0. A Party may. arrange for some other Party to supply part or all of its Spinning Reserve Obligation. _
Section 2. Schedule of Rates 2.01 Except as-otherwise agreed to- by the Parties cbncerned, a Party sup-plying a portion or all of-some other Party's ' Spinning Reserve Obligation during any month shall be paid by the purchasing Par'ty an amount of whichever is greater of the following:
- a. 110 percent of the Incremental Cost of sup-plying such spinning reserve, or b.
The Incremental Cost of supplying such Spinning Reserve plus one-half of the overall savings of such trar. action, where overall savings shall be equal to the difference between the Incremental Cost of the selling Party and the Decremental Cost of the purchasi6g Party, where Incremental and Decremental Costs, for the purpose of this Schedule only, shall be determined as follows:
- i. Incremental Cost of the supplying Party shall be based on the costs incurred in
, starting and operating any generating unit or units which must be starte,d as a result of supplying such spinning reserve.
- 11. Decremental Cost of the purchasing Party shall be based on the costs avoided by not starting and operating a generating unit or units.
2.02 In the event there are repetitive transactions between certain Par-ties involving similar Incremental and Decremental Costs, flat rates may be estab-lished for such transactions by the representatives of the Parties concerned.
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-- . - . . - . .. . . .. u SERVICE SC11EDULE D ECONOMY ENERGY INTERCilANGE SERVICE Section 1. Service to be Provided - -
1.01 This schedule provides for the supplying of Economy Energy by ,
any Party to any other Party when it is economical and practical to do so under the conditions set forth hereinafter and in Paragraph 12.08 of the Agreement.
Section 2. Conditions of Service 2.01 It is the intent hereof that, i'nsofar as is pra ticable, c Ecohomy Energy from available sources having the lowest Incremental Costs shall be used to displace generation having t.he highest Incrementa1 Costs and so on"until such transactions are no longer ecoqomical; provided that:
- .(a) Economy Energy 'shall not be scheduled in amounts which will overload the transmission facilities of some other Party or endanger the operation of the interconnected systems of the Parties.
(b) The receiving Party shall be entitled to purchase Economy Energy only against its operable generat-ing facilities.
(c) Economy Energy transactions between Parties which are directly interconnected shall take precedence over transactions between Parties which require
. the wheeling serv, ices of an intervening Party, providing the net savings are equal or greater.
Section 3. Scheduling of Deliveries' ~
3.01 Negotiations for Econo'my Energy transactions will normally be ini-tiated by the Party which desires to purchase said Economy Energy. Prior to the ,
\
scheduling of deliveries, the Parties concerned, will agree on imur by hour _
amounts of energy to be delivered.
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. . Service Schedule D - contdc Section 4. Schedule of Rates 4.01 The overall savings of an Economy Energy . transaction shall be equal to the difference between the Incremental Cost of the supplying Party and i
, . the Decremental Cost of the receiving Party. Losses to be paid for the use of such shall be taken into account in ldeterming the overs'11 savings of the trans-action. In the event that a Party is participating in more than one Economy Energy transaction, the Incremental Cost or Decremental Cost of such Party shall be based upon the total of all Economy Energy transactions of the Party.
4.02 The receiving Party shall pay the supplying Party for the Econcmy
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Energy supplied during each month an amos'nt equal to the I'ncremental Cost of the energy so supplied, 'plus one-half of the 'overall savings of such trans-actions.
4.03 In the event there-are repetitive transactions involving the same Parties, flat rates may be established by mutual agreement of the representatives of the Parties concerned, provided that such flat rates are based on the above
. method of determining savings.
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._ . l SERVICE SCilEDULE'E WHEELING SERVICES AND LOSSES Section 1. Service to be Provided ,
1.01- This Schedule provides for the use of the transmission system of-
. any of the Parties for wheeling power and energy as scheduled between Parties hereto, for specific transactions under Service Schedules "A", "B" and "C" of this Agreement, from the system of one Party to the system of any other Party, and wheeling charges shall only be made for-wheeling through a system not a Party to the purchase and sale transaction.
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1.02 In wheeling transactions where transmission capacity must be re-served for a specified period of time, the wheeling charges as hereinafter provided in this sche'dule are based wholly on transmission capacity thus i~e-served for the agreed period of purchase irrespective of whether power and energy are actually scheduled or delivered.
Section 2. Schedule of Rates .
2.01 .All charges for wheeling. energy pursuant to this Service Schedule shall be based on the amount of energf scheduled for delivery at a point or points where the system of the receiving Party connects with the system of the wheeling Party. Thereshallbenowhhelingchargefor.unintentionalinterchange or for inadverten,t flows.
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2.02 For wheeling Emergency power and energy durin'g the first six hours of an emergency pursuant to Service Schedule ,B, no charges will be made by a Party for the-use of its facilitics,,other than loss compensation, as provided in Section 3, of this Schedule.
2.03 For wheeling scheduled outage energy, pursuant to Service Schedule B, the purchasing Party shall: pay the whccling Party a total of 1 mill per kilo-watt hour. '
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. Service Schedule E - contd.
2.04 For wheeling Equalization Firm Power pursuant to Service Schedule A, the purc hasin,g Party shall pay to the wheeling Party monthly, a capacity charge of 354 per kilowatt per month of transmission capacity reserved for 'such wheeling.
2.05 In consideration of the b?nefits availabic to the Parties here-
'under, the Parties agree that whenever wheeling transactions are recogni:cd as being mutually advantageous to the Parties involved, the wheeling fee for such transactions may be established by mutual agreement of the Parties con-cerned.
Section 3. Compensation for Losses 3.01 Whenever a Party schedules the delivery of power and chergy over the system of an intervening Party to this Agreement, the amount of power and encrgy to be furnished to the intervening Party as compensation for-losses shall be determined in accordance with formula established by the Operating Committee.
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U. S. DEPART)iENT OF AGRICULTURE
, RURAL ELECTRIFICATIOR ADf,tlHISTRATION REA DORROWER DESICHATION Mi chi <'.'n 157 O Am.pn
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THE WITHIN contract for_ Electri.c Service dtted Decenber'PO, 1967, with connuaers Po::cr compeny (Alba)
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SUBU.lTTED BY THE ADOVE DESIGNATED BORROWER PURSUANT TO THE i TERMS OF THE LOAN CONTRACT,15 HEREBY APPROYED SOLELY FOR THE
, PURPOSES OF SUCH CONTRACT.
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Coli'i'RACT FO!! EI?'.C'dlIC GERVIC1: NAa 15 8 353'
, n,i ntt. I'c al M EW""
ACRI'.3i2:llT, made cud entered into thir: 20th
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day of December ,1567, between C0::.3t'.;:R3 Kke711 CO:iSiI, a corporation attherised to transc<.b bucincun in nchican., and havinc its principal offico thercin at Jac': con, liichir'.n, herein tcmod the Ccepeny, cud the I;CGZ.OU IIIC: CONI ELECi?.IC CCOP.:RATIVU, Ii:C. , c corporation cuthor-
. iced to tr=mact busincas l'n Ule:tican, cud havire its principal cffico thercin et Doyac City, !!ichicen, horcin temed the Custc:ccr.
1.rITI?.'GG5ZI:
Zlat, in considordion of the ectual egce'ocats herbn to be kept and perforr:cd by the pertica horoto, it in ccreed c3 follws:
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Subject to the terr.s cad conditionc horcof, the Custcc:er n; rcra to purchanc cnd necept frm the.Cmpa".J, cad the Cc:pany cgcas to sy;1y caJ cell to the Cuctccer, c1ccuric'encrcy c: nicciliary cr st adby to the
, . , Ctic!ecr.T's cicctric cencratirc pleaba located in the Stato of I*ichican,
[, sfaic'1 cuc eccl by the Custccer to etrgh cicctric cacrcy to itc c1cotric tre.n liccica c; tat:n, but not in crocca of 1,.,CO3 kilovolt-cr;;2ros, bcinc the cajacity reser.:d by the cc:frany for the custcscr's ucc. Zic Ccr.nc vill, at the urittaa rc._uent of the Custe.ur n2dc et least thirty (30) y dcyc in cAc.nce, per. alt en incrcacc in cuch ra::crved ccpacity provided the Carpany has po;cr avedichic. I
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- 2. Cl%ItACO CF CVICE: k a
The cuiryly of bicctric cnct to the Cucto2cr c'.'.cn be citarrr.tir;;ls to bc 1\eniched by the Cccq:cyrycarrent cecond, et cy;ro:chaatc37133,000 vo1%. .
3 POIliT CF ELICY:
The point of colivery for c31 electric cn:rcy to be supplica hereunder chc11 be tt a polo cuned aa.1 inat 11cd by the Cuatcner cajecent
. to its Alba CuMtation and loccted in the !!crthv;;a 2 /4 of Doction 23, -
Tot::= hip 30 Ucrth, Ecnce 6 t! cal:, cho.rtuala Testn: hip,1 n 5 County, --
Michican,1:hich cald pelo in located c_rgrcxl:T.boly 1,500 f:O Couth of the Ucrth line of cald Section 50 cud cgproxi.r;tcly ECO fxt b, :t of the Ucst Morth and Gcuth ono-cichth line of caid Occticn 93.
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The Curr cny chall furnich, inctd1 and r.sintain culteblo and i
' nde:r. tate noter.: cn.1 :r.:horirc c rtintcut for the ucacure:.icat of noy.b tr.1 '
1 demnds cad kilwati.-hcnra dellycred. Said noter and noterInc c.iulp-4 y r. cat chall be locate.1 in tho Custa:rer'n cal.d Alba Stktatica. !!cterinc 3
chall bc at 69,000 volta cnd 2 per cent Ccchteted ihr.1 the ncter readinca g The h'ie l' t.'. vt * *.Li' dNt I' II 6 ? I"
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thus. cbtnined ft.T binAnc ptrpmen. % 0 Coren:r/ che.n perio:11cany in-s
- pcet nna test its note:c end knc.) tin ai vit.hin eccept.:1 nt endr ed cf cec. tree /. On Ct:stencr rJr'.E h ru cece.n tercna the rJdtt to : 41chc.te in tho Eic in.gcchion Cu;:tu: c:ad te bf n; of ur.c!t r.?ters by it:: pr:. .tr rcyrn:c:Oc*;,iv00.
rcason:bicOr ch H cAn9 have the r1.?tt to r:24 c:r/ of :.::t'. :r:bc'.9 t.t en ~ - ~
tiscs.
cad if the Cn=t: 1.: rSaid ::etera de3.1. be tented annac1V by the Cc rp.r:/,
Ceciros ncea frequent tc::ts, it c:w.n b:re on2-hc.lf of the c:Qcase thereof.
- 5. E.'.IIttGTI' TO E PCECGlfrD: - '
(a) ?/ the Cc.Tanny,: ,
2r1 cadition to its cald 1.=ters cn3 notoring cgihav.t, the Cc:02.v dwal ATn1.dt.cnd :.r. int:'in r11 elcatric lin ; cal ct:v:r c _'.11p-nant for t'.to acliveryof cter;:y to'the point of delivarf descritc1 in S: tion 3 h :rcor. T.q Cc=3:7,/, its ns a':icad c:.pleij:.:;, . : 11 have fu0.1 rl;-;;t onl nut'twity of in;.rc:a c rl caro 3 ct cil ti .c en c.O ccross t:lo pr.uicca of t2c Cn=te.ar for the pttri:oco cf con:tracting, egerating, nair.tainira, rcpiccir3, relt:catir.0, ropairing, notin3 cud rczovir- its caid cicct:F: litto: cad cgti.7;cnt. Baid rlfit of ircrc:
.cna carcas, t'2o pro ticca hwcVer, shall not unrec on: Gly interfere with the u o cf cf the Caste.:cr.
(b) g_the C:ste::cr: *
' Tao Cu: tenor :0an Atritish cuitable locatica in tho.Custc. r'c :,: id M.hn Ondstatica fx t':uit:v.d; c ct to the 0 Cc:: r/'
notor19; th rcto or c:r/ ccui tant e.tri t:c;crin; nac.pcta U: ag:nce61ng or intarfe.i withcT.iyrnt.
caid n:t:ction cf j Etc Cuntance chan c2.co atral:f.t andy::intcin nu fcellitic; boycal the point of delivery Cescrit d in Cactic,a 3 horcof. 210 Cc ptay dull ha.vc I no obli::ation to in:):ct the Cuat=:gr'a caid fceniti::: nor haic c:r/
rc gencibility with rar;cet to the instralttion, rep:.ir, Ininbeannec, replacc:.nnt, relocabien, rcrovc1 or oy:rction of caid facilitics.
- 6. .RA.E: .
' Tlic Custo cr ccreca to p:r/ for cuch cicetric c:iercy delivered to it hereunder in ccccedt. ace with the foncving rcto, to vit:
Cav. city Charr.c: _
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?1.00 per ncnth per 1xa for the first 2::00 hva i
of binir.; de.:and, ,
j $1.C0 por month por hva for all over 2200 lwa _.
of bining de:nnd. -
Encrtry Cher. c: .
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I l .70per
.f4 perlads latt for fcr en tM cver first 6,000,000 :ih ucci per tenth, ~
6,000,00013th ucc1 pcr conth.
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i Thh 16une is nnas ent>icci in .c .nt.,fie vus... n..aan....un n.- n...a n ..n..nl..n..,. ...llonal rc.:cr.
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Fuel Cnat kl. lit it . cot flu.rr.m:
Ilhen the veichic 1 avere e coat of en fi;cl in atorecc at the Cc= party':i in',crecral:eLed electric ccncratin3 stations, at the end of cach of the threc nontha 1:r.cdiately proccdins the conth covered by the Cu:Leacr's bill, is noro or less ~~
than 33.0 cent per ninien ut i, there chan be a correspond-inc increano or decrcuac. of .0012 cent per hile12tt-hour in the charco for an hileiratt-hour.: included in cuch bin, for cach full 0.1 cent } cr ulllion, Dtu incroaco above or decrocco bole:r 33.0 cents per ninion 11tu.
Minin n C'g;1r3:
The capacity charco .{ncluded in the rato but in no cro less than $5,0'0 per norith.
Dele.ved Paw.ent Ch r g: ._. _.
Trio per cent (20) of tho total nonthly bill if not paid within tirenty (20) dcys frca dato rendered.
Ta< Cinnco:
Dilla chall'bc incremcd within the linits of politi .1 SubdiViGion3 Uhich IC77 0pc010.1 tel!c3, licCnce fCc3 or rentclS y eccin2t the Coq,nny's 1roperty, or its operc. tion, or the pro-
" ducticaacS/orsaleofcicetriccncr;/,tooffctauchcrocial charcc: and thereby prevent other cu:Ler.cr frca bains coi-pelled to chare such local increases. Dins chan nlao be increc cd to offcet any r.w cr incrc=cd specific tecc cr exci::e irrpoacd by cay ccvcrnacntal c.uthority upon the Cc -
pany'3 concration or calc of electric cncrcy.
. i Determination of th:irain Den.'nd:
i The taxirari de..i:ull dr rate of use of electric enorc;y for cach conth chan be the (rcatcat nycrn e lead in kilovolt-
_anperca dttring any fiftcen-ainuto pcried of such nonth ca racistered by suitable in:truncaba installed by the Ccapary to n2'sc cuch dator..tinati(n.
Deter:aination of Dillin- De r 1_:
Oc bining dc:.tand .for cach tenth chall be the naxi m demand for auch nonth but not loco than 600 of the highest binin; domand for the 1:revicas cit.ven contha.
- 7. ImD nAIX:02 ra 1132 07 r,7NICC: ~
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The Cuntener chall no crronf,c its circuit:: and operations cs i g to avoid a current unbalr.n:o beb:cen the thrce ph21c0 of uoro than fi'-
teen por cent (15',',) bat:tcon the hit;h and lo t pha:ca. Oc Custe:r.cr end ,
l ito custc=cra ch0.n so uco the service as not to disturb cr interferc )
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-. . with the Compnny'n cervice to its othar custonera. no type of cicctrically operated device uhich cou'Id ceu .c obJeettoonble operatinn condition: ca the Ce:.p:tny' c cyn t.r::.: chall be attached by the CunLo.wr uithout concer.t of the Con,mny.
6.- PARM,f.EL Ol'vn.TICG:
- Permission in herchy t,1 vein by the Conpany to the Cuctcncr to operate the Cucteucr's electric cenernLinc plants in totallel uith the Co: pany'c ' cyste:n. The Cuclea.cr eglces tg.) incLall and properly naintain i
suitable approved npplir.ucos and dbviccc cnd to provide cufficient tre.ined
- nerconnel to protect its equir::c::t end cervice and the equi".:r.cnt ar.d scr-vice of 'the Coupany fron injury or interruptions uhich r.icht be caused by a flo.t of current frca the Cc:cytny's lines to the Custc=cr's connecticns or from a flou cf current frc:a the Custcur's plants to the Cez.pany'c lines, rad to asuu:ro eny locc, linbility or dr. age caused by a lack of such protectica.
'The electric,y.ccouring inctrer. cats frat uhich infornation in taken for billing rurgoccc ulll be equipped with ratchotc or attech:..cnts to provent a credit to the Custener for any etnTont uhich its plante na/,
Cencrate and cond bach into the Ccr.pany's lines.
9 Co:raCTro:is uITa cums:
-- It in acreed that th' clectric enarcy,to be supplied by the Co:r.pany to the Cucto;cr horcuS.'.cr :: hall be u;cd colcly to meet a part
(' of the requircz. cut of the Crctmer in the orcration of its clactrical cyctora locatol in the Stato cf Michic:w. It ic further c;rced that without the written concent of th..' Cc=;;.ny, the Custo...cr chall take r.o interconnection uith cny parcon, fir..:, corporation, coverne. cat Ocency or other entity uhich nicht result $n cibhor party harcto bec= ting on-Ecccd, directly or indirectly, in the tr:.ncmiccion or cale at wholocalo of electric encrcy in interatate or forcicn concorce. If the Custo cr nahoc cuch an interconnection vithout cuch uritten ccncent, the Company may, at its option, terainnto this agreement forthuith by civing uritten notice of its intention co to do.
- 10. LIMILIT?: ,
f Except as to the capaciti cnd rainir.u:n charecc peyabic by the
~
Customer, proceribed in caid rate,, ncitbar party chall be liable to the other for d=a ;cc for any c.ct, ornicciou or ciretc.ctance occasioned by or in concequence of r.ny act of God, labor dicturbanco, cet of the public
. cnc ny, var, incurrection, riot, fire, ctom or ficod, explorion, brca.5.cco or accident to nachinery or equirrcent, or by any other cau::c or cauroc __
beyond cuch party's control, incituing any curtailment, order, re;ul?.tica or restriction 1:.T.cced by covern.cntal, vilitary or lawfully,establich-d civilian authoritic:;, or by th2 nakin; of neccccary repairs upon the prop-erty or equipc.cnt of cither party horcto.
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7 a e f.-. I!ctillt'ninnlig; the- ).r.nl::iten1 of Cn fc.nnntn : I:er;;rt ph cr
% nny othev prwir.lo.1 of thla cc.r.c03.'.1L to th? c > ate:xy, tin Cm:tO..or chnu at an Llo::: c:aen: nu 11:Q111L:/ far, c':d ::ha.11 idc. 110y cad cuc th9 Coapan:r h '.mle/:u fro l nr,y un ? an d . r ::c.:,19.:300, clnhr:, dc.uinda, 0;fitn, ...
ree:n cric 2, cc:t: an4 c:T:ncei for in hry to or dee.th of any rcracn or perso.u wh:,;:acavar, or for a:1y lo.:c, de: traction of er da,r;c to r.r.y prcp-crty of third per:::c. :, fir. .3, c^rpv atien :, cr other entitic1, c.' 1cirJJ out of cr rcoultir 3 fA:.1, cith:r directly cr indiro::.ly, the Centc::r'c
. facilitic3, c r.ricir.: cut of cr rc ultiru fro 1, cith2r directly cr 1r,-
dircally, the cicetric cncyc;y cold hercander arter it has been delivered by the Cocpany to the Caste.:r.
- n. T.TU,1:~': ,
The Cc g e.y ch .E ic.dtv 4.0 the Cucto t:r, within a r n,0:r.I;10 tino af tcr tha f1 Pat of ca.fi n: nth, I.rc.c:1' bi.ui.r/.; for cle':tric encru/
furnich d durir'; thryrce:21::; n nth. "Jutl.10. cocnta chan be paid by the Castener uithin t :.mty (23) d2l/a c.f tc? da?c readerod.
- 12. .'.i"%.t.:
, 911c et;cccant uin c :Ler.d for en initial tert.1 of tuo (2) years frca the first de;y of Ja".u.wr, 'l.'.53, a .2 frc..: year to year thercaf t6 until tor.dn2bc1 l'y)intual et1crattu:1.;(M ...:M ccaa.:nt h i' in1Licaer by ci.thar n:2ica party of ita C:11reCivinG the other to torr.in.'.tc
!.hc c:. 2 : b tl : ca, a.^.ticq of :: aid initic1 tcr1 or e;, th .: c:cpiratio.1
- :C c.'.c/ y.n rl r 1.orica th:ra.'.fL2: .
13 S'.iOC.~:UCG N'a 1.'UTO *1:
911c n rcT.;ent chan ir.'.re to the bcnorit of cad be hinding upon the cucccanora cr.1 er,ci;.la c^ 'tc rc:rpactive partics hereto. 9 11 i ccrecc.cnt chan not be transferrca by the Castc:cr cr other:rico niicneted with nt the Co.T :!y'c 17ritten concent.
l! I. -G7.OTC:TM_. R. JTI:01E7.:
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. i 1 -2113 contract is cubject to valid Ic.:n3 orders 3 rules and i regalaticna of duly constituted tuthorities having juri0 diction.
l D ITI?'Z3 IT:,3'.'7"'. thin e:;redicat h:3 bean oncented on b. half of cach of caid rartica by the.ir duly authorized officera an of the day
! cn1 year first c'w/c .ritten.
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!!ot.uit!nt:.n'.ing t1:c Frmi::Lon.1 of l'.o for:noina y.:.re::rsph er .
nny ot.h i' pw/inica of t, hic c..rc-? *at, t.o th? c'dt.rury, tho C.mter.er chall at a13. tin a raat'::: n11 lithility n r, c'r). ch'.11 inic. 11fy cid suc the Cor.ipany ha.mle.:.: h oa eny tu ? a31 C . c,"; ..:, lo.r:ca, clel.r:, dc.anda, cultos---
recoveric2, cMt1 and c.:; .naci fer ? injury to r.r deat.h of any rcracn or parao.u uh:,:ac.:ver, or for an;/ le.:0, Cea ,ntet,lo:1 of cr d:mt;c to r."y prcp-crty of third pern:ca, fir.01, c'rpt.: '.tiens, cr oth:r entitica, cricin:;
out of c7 rc:altir:3 f,u.1, cit?.r.r directly cr inalro::.ly, the Cent:n:r'c facilitic7, or e.vicir; cut of cr re: titin 3 frvt, cith:r (11rectly or ir.-
dircat.ly, the electric cacriey cold h'creando.c cf ter it has been delivered by the Ct.cy.ny to the Cust:.c:r.
- 11. u. .v.. w-..;.
The Cepr.y ch-;t3. re.;d r to the Cuctxt:r, within a rensc:r.ble ti::e ad.<:r tha firal, of cat.1 n:ath i.rc;.cr billt.n,; for~ cio:Lric enorc;y 3
'- furnich:d d'.:rir; thyprac:Cin; tcnLL. -Unh c.:ccent.a chall be paid by the Cactcncr ulthin t 4nty (2')) daya c.f ter dato readored.
- 12. 7"C--t:
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, M213 et;ccc cat v133. c :t. cal for en initi:0. ter.a of tuo (2) years frca th9 first d:ry of Jr.ury,10.53, cr.2 h* . year to yc2r thercart6r vntil torni:nici by intu-.1 ccaa:nt er by cLth;r party civin ; the other ri 30 eat tu:1'. .; ( . ) ..'.:r, r h t ' wittc.a n:W. lea of it) C:7 ire to ter.r.in'.tc
.the c:. 2 : t 11. c:per. tic 1 of naid initic.1 ten or er; th . c:T iratio.1
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13 .S'iOCD-UC'.t.3..N.11
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Thic c;rc=cnt eb 0.1 ir.i.'.re to the bbnofit of cnd be bindin;
! upon the cucccaaora nel c.701,.n c'i ihc rcipativa partica hereto. 9 11 :
i cCrcc.c.cnt chall not be tr:a:.~.crrd by tha Castc-.cr cr other rico c15cntted vithnt tha Cc;gany's trrition condent.
-lb. 00'.CTD3:TM NEIG'.r":
I --This contract is sihject b valid Ic.:n3 0 ders, rale: cnd I restlaticna of duly consbiluted cr.t.pritics havins ,juricdiction.
I D LTE3 tm:WS. thic e ;ccc cat h:2 been c:ecnted en b: half of ca:h of ccid petic; by th .ir duly authorit d officers na of the day cn1 year first c*)cw ..ritten.
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Adc Partitd Puccisse /4just$2nt: $ .10 per Kva
-- A.ld 14ultiple 3:tcrir.g ' Adjustcent: Konc _
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- . apply !cleace 136 KV $ .20 I.cr Eva I!ct Cal.t'.a ' j C;mrge ('*ontnly)
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CONSUMERS POWER COMPANY AND THE DETROIT EDISON COMPANY . .
ELECTRIC TRAN5 MISSION LINE5 AND
' ItWRAL ELEC. CO-OP TRANSMISSION LINES AND CITICS HMING WUNtCIPAL.Ly OWNED FACit.lTIES o ,
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