ML20043B122
| ML20043B122 | |
| Person / Time | |
|---|---|
| Site: | River Bend  |
| Issue date: | 03/25/1974 |
| From: | Kauper T JUSTICE, DEPT. OF |
| To: | Shapar H US ATOMIC ENERGY COMMISSION (AEC) |
| Shared Package | |
| ML20042C775 | List: |
| References | |
| FOIA-89-559 A, NUDOCS 9005240215 | |
| Download: ML20043B122 (75) | |
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. Asa twn AntasserCtwuns amnavn o.misse htpdmtni of huolict y
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JI!aolgingtorg pg. 2 30 March 25, 1974 n:
L Howard K. Shapar Esquire
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. AssistantGeneralCounsel U.S. Atomic Energy Commission-
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Washington, D.C.
20545 p
H Re:
River Bend Station Units 1 and 2
- Gulf Staties Utilities Comoany g
AEC Docket Nos. 50-458A and'50-459A
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Department of Justice File 60-415-58_
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Dear Mr. Shapar You have requested our advice pursuant to the provisions of Section 105 of the Atomic Energy Act of 1954,. as amended, in. regard to the above-cited application, j
a Aeolicant i
The applicant is a large electrical utility principally-engasc.d in. the business of generating electrical energy cr.d distributing and selling such energy at recoil in Southecst-Texas and Soi,tth Central Louisient, an approximatolv 2S'000-c Theapplicantsells.alectricenergyatretailto292,05c.
square milo-area with en estimated population of 221 commu-h nities in this territory.
T.t sells for resale ciectric
-energy to eten municipal. systems Applicant is seeking a-six rural electric co ativos, and one other utility.
t license to build and operate two goucrating units in Host to-be known as River Bend "
Felicianh Parish, Louisiana,h of those units will have a Station Units 1 and 2.
Eac generctlur capacity of aporoxiantely.940 megcuatto.
' River i
Band Station Unit 1 is scheduled to be in service in 'lebruary 1980; Unit 2 in September 1981.
3 Structure of the Elcetric Power Sup gv :@rket in loaisionn u
1 Appliennt is one of the five mojor urivatcls cune4 companics su,mlying nouer in bulk ond at: retail 'in Louisinun:-
i the other four are: Loulaiana Power and Light er..r.nny (i.:%..L):
Central Louicienn Elcetric Comoany (CLECO); so.:t;'vesi.crn Elcetric Poker Cow.pany (3WEPCO), uhich operates in Arhannus and Texas as uoll as in a c:nall aren in t.he r.c.rthourt cort.: r rr..,
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W-of Louisiana; and New Oricans Public Service, Inc. (NOPSI),
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an affiliato of LP6L which serves metropolitan Mcw Oricans.
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Appiteant's 1970 system peak was 3,039 m., with a littic W..
~ more than one-half of its business in Louisiana.
LP6L's 1970
.E peak load was 1872 m.
CLECO's 1970 system peak uns 575 t.4.
si SWEPCO's 1970 system peak was 1383 mw,he remainder in Tex two-fifths of which f
.i represented loads in Louisiana,k was 1164 mu, with t h-and Arkansas.
l'OPSI's 1970 pea
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.There are a number of municipal electric utilities in f
Louisiana.- Some of these generate all or a major part of f
their power requirements; others bulk and distributo it at retail. purchase electric pouer.in J
The generating municipals' 1970. loads totaled approximatel generating capacity was 900 mw.y 500 mw.; their combined 1970 There are 13 cooperative utilitics operating rural p
distribution systems in Louisiana.
Anothar coconrativo is t
based principally in Texas but conducts some operations in Louisiana.
Ihcir combined 1970 peak load was approxitaately 900 m.
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Tuelve of the 13 Louisiana cooperativos have organized 1
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a gent: ration and transmission cooperative, Cajun Electric Power Cooperative (formerly Louisiona Electric Coonerativo),
to handle their bulk-power suoply functions;-Cajun'hns
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recently put its generating facilities -into operation.
However,lk power supply by aurchase from Aoplicant.and the the cooperativos presently obtain almost all of their bu ocher private utilitics.
Tao rc: nining coonorativo,is one of Southuest Louisiana Electric-Membership C-L cer.tive (SLEMCO),
f the= largest rural electric coop
'. es in the United Sectes m
and comprisos roughly ono-third
...no rotal cooseracive-load in Lcuiciana.
It has no generating. facilities, sut obtains c
part of its poner eupply from the privately-owned utilitics in Louisiana and onre frota Southwontern Pouer Administrati:n under an arrangem' ant in uhich power generated at.federni hydroelectric facilities in the Southwest to wheeled over transmission fccilicios furnished by the privato utilitics.
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Virtually all the hip,h voltare and entra-high voltage transmission lines in the Stato of Louisinua,are owned and l
operated by Annlicant and the other privately-oun:d utilitics l
discussed above.
Anglicant and these other nr.tvately-ouned l
utilitics also domihate the retail clectric powr market in Louisiana, with over fivo-ninths of thne busir.c..a.
All the cooperative systems top, ether and all of the nun'cipal systems r
l tonother have less than one-tucifth of such business, respectively.
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Comoetition in Louisiana There has been vigorous comoetition among electric utilities in' Louisiana.
Until 1970, Louisiana law prohibited utilities from taking over customers already being served by another utility, LSA R3 45:123, but the law did not apply to
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new customers.
See L_ouisiona Power and Linht Co. v.
Chsroentier 165 So. zo 614 (La. Ct. App.1v64).
In 1970 LSA M AfiTd3 uns amended to allow. (except in certain ccses) h a utility a preference in serving new customers within 300 feet of its existing lines.
Since large new loads (particularly industrial loads) would in many instances, not be located
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within 300 feet of an ex,isting distribution linel'or s'crvice -
comoeticion-continues-to exist.
Further competition exists eq suburban areas which are annexed by expanding municipal-
-ities.
The existing supplier within the city, whether =unic-s ipal system or franchised utility thereupon has the oopor-tunitytocompeto-fornowloadsw[ththeprevious-supplier o
in the area.
L Comoetitive conduct of the Anolican't This is different from most of the other cases in wh'ich the Department of Justice has ' rendered antitrust advico in that prior to receiving the Connission's request for advice the Department had been conducting an antitrust investigation r
o,f the Ao licant's conduct.
That investigation was concerned T
with bas'i ally the same antitrust allegations against the' E,
Company as those set forth in the decision of the United j
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States Court of Appeals for the District of Columbia Circuit
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in City of Lafayette v. Soeurities & Exchanno Co mission, L
454 F.2d 941 (G.A. D.C. T972).. In osscnco a nu:noer or municipal systems in Louisiana had allegod that over a r
L number of years nnd through a variety of methods Aoplicant,
-i together with the other major privately-ouned util'itics in Louisiana, atter:nted to frustrato the development of a newer pool nmong tha ntnici als, and others.
The allegations'of concerted anticempati ivo cetion related exclusively to activities in-Louisiana.
It is unnecesssry to detail hero the allegations or.
L our conclusions with respect thoroto.
Wi. thin the pcst year L
or so Applicant hus evidenced a constructivo attitudo in its reintIons with the r.mc11cr syst. cms in Louisinne.
In the u
courso of our entitrur.t review of the instant licenso ennli-cation, Applic:nt hna discur. sed with the Depnrtnent its futuro E
policios in this rc3crd.
Ubile not concedina that any of its L
prior conduct may havo been anticompetitivo, Applicant has u
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indicated in the attached letter to the Dcocrtment the h.
policios which it will follow with respect to such aspects of its operations in Louisiana as access. to nucicar units, interconnection-and reserva-charin wheeling, and exchangos of bulk power.
Similar policies w 1 be followed by Aonlienne
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1 in connection with its operations in Texas although th'c' e,. it r
should be noted,- its activities-have not raised tha ssmo degree of antitrust concern.
The Aoplicant has agreed that
= the solicy conmitments set forth in' the attachment to its Marci 20,1974 Ictecr to the Department-may be imposed as conditions to the permit requested for the instant River
- Bend units.
Applicant will shortly. file an application for.
a construction permit for two nuclear units knotm as Blue
. Hills Units 1 and.2 which it plans to build in Texas.
Licatiso conditions generally similar to those involved here L-will be acceptable to Applicant-in connection with the Blue L
Hills Units permits'.-
l Those developments enable the Department to inform tho l
Commission that it would not appear nocessary that an anti-trust hearing be held on the inceaut-application and should enable the Department, when it receives the Blue 11111s.
b application to advise the Commission that no natitrust hearing will be necessary concerning that application.
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' Conclusion P
If the policy conniements contained in the attachment to ApplicantT!!arEF 20,' 197E litter waro to bo.imsosed by l
the Cosnission as conditions to the ' permit : applied' for in tho' instant docket, as we hereby recommend an antitrust hearing on this application would appear un,necessary.
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Sincerely yours, f,
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T110:MS E. KAUD2R..
Assistant Attorney / General Antitrust Division I
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,k GUEF GTATES UTILITIES C'OMPANY iS
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S3AUMONT. TEMA8 777C4 anaa coo vis ese.eesi March 20, 1974
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i l-I Mr. Joseph J. Saunders, Chief, Public Counsel hnd Legislative Section United States Department of Justice Washington, D. C. 20530 i,
P.e t Gulf States Utilities Company, River Bend Nuclear Power Plant, Units 1 and 2; l
Application for License to Construct Nuclear Utilization Facilities; AEC Dockets Nos. 50-458 and 50-459
Dear Mr. Saunders:
We appreciate:the opportunity-to discuss various matters inv.olved in the review by your section of the Department of Justice relating to the pending license.applicat, ion of this L
. Company (Applicant) before the Atomic Energy Commission for' l
the construction of nuclear utilization facilities, as rei-erenced above.
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We understand that your review of this application has l-raised certain cuestions under the antitrust laws relating to the bulk power supply policies of the Applicant.
While it is the po:itien of Applicant that.its activities, and in l
particular its bulk power supply policies, should not concern al.y such= questions, the Applicant submits this letter setting forth'certain statements regarding such policies.
In order to obviate the possibility of a hearing on possi-L ble antitrust issues in the above-referenced proceeding, the Applicant sets fnrth in the appendix to this letter policios L...
- which it will mairtain de-ing the period of this license, cub-ject to the a:'dcrstandings stated herein.
It is understeed that this statement of pelicy ratinfics the Department's anti-trust questions and will o'ntble the Department to render a nc hearinc, antitru,t advice letter.
In the event the Atomic Energy Cormi Ji.pn in any event nhould inrtit'ite a hearine on l.
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antitrust issues or attempt to impose different, inconsistent
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or additional conditions, Applicant does not intend by this 21; letter or the statement of policies-attached to waive, and instead hereby reserves all of its rights under law to appear
-in such. proceeding'and contest the imposition of different,
- inconsistent or additional conditions.
h9-During our discussions with you about participation.in the subject. nuclear units, we advised you that we:have not 4
con,structed and have not planned to construct any jointly-owned electric generating plants on our system, and-we have
- not and.have not planned to sell unit power from any present or future electric generating units.
While Applicant appre-ciates that financial and business conditions in the future may require it to change such policies and for such reason reserves'the right to do so, Applicant understands that the
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proposed license conditions relating to participation app 1y e
only to nuclear units in Louisiana.
Applicant intends-to file later this year an applicatien for a construction permit for certain nuclear units to be ic-cated in Texas which are to be known as Blue Hills Units 11:s.
1 and 2.
A concerning pplicant will enter into similar policy commitments such specific units; provided-that as to other nu-9 clear. generating units which Applicant may construct, own and 9:
operate in Texas, the power from which is intended for.use in 4
Applicant's general system operationi Applicant.will merely confirm'to you by letter.its intention, under conditions then existing'and in accordance: with applicable law, to allow par-ticipation in such other units on conditions similar to these afforded under Policy-Commitment 8.
We have now filed with the Fe'deral Power Commission'c: pies.
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of the power interconnection agreements entered into by Appli-cent with Cajun Electric Power Cooperative, Inc. add'with the.
Cities of Laf ayette and Plaquemine, Louisiana.
Such aproem2nts contain terms and provisions for bulk supply coordination Ind.
transmission-service.
Such agreements with Cajun and'the Cities were offered and negotiated by App 3icant in pursuit of the pelicy commitments 1 attached, and it 'is Applicant's understanding that such-agreements (as sub$cet to regulatory action and change 5c actions of the parties) comply with such commitments.
Nothing in this letter shall be construed to be a wa!eer by the Applicant of. its rights to appear and e:: press its re ti-tion on behalf of or in opponition to any specific propcial.-
relating to bulk power supply before any 3ecirlativo, adr!.i-
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strative, iudiciel, or other Icdy.
The Applicant would not cb$cet to an inclunion Lf th' I
letter in, and the ntatomonta and pclicios exprcctics tort '..
boitig made conditions to the licenue applied for before 1:.
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Mr. Josoph J. Sounders. 3/20/74-U. S. Atomic Energy Commission, as referenced above,-specif-ically related to the River Bend Nuclear Power Station Plant Units for which the sub$ect application it pending.
'The commitments made are subject to the following under-
-standings:
.(1)
Applicant does not istend by these commitments to become a common-carrier.
(2)
Applicant reserves all rights and protection afforded
-it by law with-respect to retail distribution of electricity?
in those areas in which it holds franchis'es to conduct its business.-
(3)
That any license conditions imposed by the Atomic Energy Commission upon Applicant based in whole or in part upon these commitments shall be subject to continuing juris-l diction; and that Applicant shall have the right to seek relief from or modification of such conditions by appropriate legal recourse through the Atomic Energy Commission, its successor agencies, or through any other administrative, legislative, L
or-$,udicial authority having jurisdiction.
l (4)
That none of these commitments shall require Appli-cant to anter into any binding arrangements with another party until the. financial respon'sibility of such party,i.s evident er reasonably assured nor prior to resolution of any substan-3 questions 1as to the lawful authority of-such party to enga, in the transaction.
L" (5)
All of the understandings and commitments of the Applicant are contained in the commitments herein made and this cover letter.
L (6)
None of the commitments herein made shall be con-strued as a waiver by Applicant of-its rights to contest whether or not a future factual situation is inconsistent with the commitments herein made or to contest by apprcpriate legal proceedings the validity of any regulation, order, er requirement impesed upon Applicant by any governmental er L
l regulatory authority, including but not. limited to the At:.ic Energy'Commi:sion and the redoral Power-Commissien, or their successor agencies.
L (7)
I:nforcement of any of the commitments shall (nly be L
through appropriate.proceedinge before the Atomic Enerr.y r! m-n mission.
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Very truly yourn, I.
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.o! man R.
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h coldent, Gulf Fiaten Utillti.:n c:-
Attachmenta
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r/+ t POLICY-COMMITHENTS OF GULT STATES UTILITIES COMPANY
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TO BE APPENDED AS CONDITIONS TO RIVER BEND HUCLEAR POWER PLANT, Ul{ITS 1 AND 2 AEC LICEllSE AEC DOCKETS N05. 50-458 A!!D 50-459 March 20, 1974 Definitions 1.
" Bulk Power" means the electric power, and any atten-dant energy, supplied or made available at-transmission or sub-transmission voltage by an entity from its generating facili-ties.
-2.
" Entity" means person, a private or public corporation, governmental agency, an association, a joint stock association, business trust, municipality, or rural electric cooperative own-ing operating, or proposing to own or operate equipment or f a-
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.cilIties for the generation, transmission, or distribution of electricity.primarily for sale or resale to the public.
Pro-vided, that, except for municipalities, governmental agencies, or rural electric cooperatives, " entity" is further restricted J
to those which are or will be public utilities under the laws of the State in which the entity. transacts or will transact business or under.the Federal Pouer Act, and are or will be providing electric service under a contract or rate schedule on file with and subject to the regulation of a State regula-tory ecmmission or'the Federal Power Commission.
3.
" Cost" means all operating and maintenance-expenses and ownership and capital costs properly allocable'to the particular transaction.
" Cost" to be shared by participants under condition 8 shall-include,all costs of acquisition,
. construction, ownership, capital, operation, and maintenance reasonably allocable to-the sub$cet unit.
Costs shall include no value for loss of revenues from cale of power at wholeua?.o or retail by one party to a customer which another party might otherwire serve, except as otherwise authorized by any regula-tory authority having jurisdiction.
Costs shall include a reasonable return on Applicant'n investment.
L Poliev 1,mmitments 1.
Applicant chall interconnect with and coordinate re-servec ry means of the aalo and purchase of cmcrgenev sn?./or scheduled maintenance bulk pewer with any entity (ictd in er within reasonable proximity to Applicant'n cervice area in Louisiar.a engaging in or proponint *o encano in cicetrie bulk I
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t power supply on terms that will provide for Applicant's costa
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'in connection therewith and allow the other entity (ies) full
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. access to the benefits and obligations of reserve coordina-tion.-
'2.-
Such emergency service and/or scheduled maintenance servico to be provided by each entity shall be furnished to-
-the fullest' extent available from the supplying entity and desired by the-entity in need.
Applicant and each entity (ies) shall provide to the other such emergency service and/or scheduled maintenance service if and when available from its own generation and from generation of others to the extent'it can do so without impairing service to its customerp including other. electric system.s to whom-it has firm commitments.
party (ies)pplicant.and the other entity (iss) which is (are)to a reserve sharing arrang 3.
A to time jointly establish the minimum reserves to be installed margin prbvided as necessary to maintain in total a reserve and/or sufficient-to provide adequate reliability of power supply to.the interconnected systems of the parties, consis-tent with good utility industry-practice in the region.
If Applicant plans its reserve margin on a pooled basis with other regional companies, the reserves $ointly established hereunder 3 hall be on the same basis.
Unless otherwise agreed upon or established by such regional practice, minimum reserves shall be-calculated as a percentage of estimated peak. load re-
sponsibility.
No party to the arrangement shall be required to maintain greater reserves than the percentage of its estimated peak load responsibility which results from the aforesaid calcule-tion; provided, that if the reserve requirements of Applicant are increased over the amount Applicant would be required te maintain without such interconnection, then the other party (ies) shall be requirad to carry or provido for as its (thbir) re-servos the full-amount-in kilowatts of such increase.
4.
The entities which are parties to such a reserve sharing agreement shall provjde such amounts of ecody reserve capacity ac-may be adequate to avoid the impecition of un-reasoncbic demando en the othern in meeting the nortal cen-tinconcios of cporating its system.
Ilowever, in no circut-
.stancon shall the ready reserve requirement exceed the in-stalled roserve requirement.
5.
Interconnectiono will not be limited to low volt.t:gc when higher voltagon are avail.ihle from /sppliennt' I n n t d '_ "!
facilitien in the arca where.' I n t<.r conneet k n.i.: :. mired, u m i
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- the proposed arrangement is found to be technically and economically feasible.
Control and telemetering facilities shall of the,be.provided as required for safe and prudent operatien interconnected systems.
6.
Interconnection and coordination agreements shall net embody any unlawful or unreasonably restrictive provicions per-taining to intersystem coordination.
Good industry-practice as developed in the area from time to' time (if not unlawfully or unreasonably restrictive) will satisfy this provision.
7.
Applicant will sell (when available) bulk power at its costs to or purchase (when needed) bulk power from any other entity (ies) in or within* reasonable proximity to Appli-cant's service area in Louisiana engaging in or proposing to engage in generation of electric power at such entity (ies) cost when such transactions would serve to reduce the overall costs of new bulk power supply, each for itself and for the other party (ies) to the transactions and would serve to coor-dinate the planning of new generation, transmission, and re-lated facilities by both the Applicant and the other entity.
This-provision shall not be construed to require Applicant to purchase or sell bulk power if it finds such purchase or sale infeasible or its costs in connection with such purchase or sale would exceed its benefits therefrom.
1 8.
Applicant and any successor in title shall offer an opportunity to participate in River Bend Nuclear Units Nos.
I and 2 for the term of the instant license, or any extensien or renewal thereof, or such shorter term as Applicant and the participant (s) may mutually agree upon, to any entity (ies) in or within reasonable proximity to Applicant's service area in i
the State of Louisiana which has in writing requested partici-pation therein prier to March 1, 1974, and which'no later than March 31, 1975 has entered into an executory contract with re-specttosuchparticipationdertosodoing,toafairandrea-having taken all necessary ac for it to lawfully do so pr sonable extent and on reasonable terms and conditions and en a basis that will fully compensate Applicant for its cocts in-curred and to be incurrod and that will not adverncly affcet the financing and constructing of such nuclear units.
Appli-cant shall similarly ef fer an opportunity to participate in any additional nuclear generating unit (s) the power from whi:;-
is intended for 9so in Applicant's general eyntem operati n:,
I which the Applicant may construct, own, and eperate in Loui.si-ana during the term of the instant license, or any extensi:n or renewal thereef.
Participatien shall b. c i th r bv cun. -
ch3 p of or purch.dc Of unir ;,artleiratien ;x, er ': m t% :. -
spective nuclear unit.
Participation in an. ferm chall to
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on an equitable basis whereby the participants, in propor-i tion to.their interests, share fully in all costs and risks of_the respective nuclear unit.
In connection with such participation, Applicant will offer. transmission service as may be required for delivery of such power to such partici-pant (s) on a basis that will fully compensate Applicant for i
its costs.
j 9.
Applicant shall facilitste the exchange of bulk j
power by transmission over its transmission facilities be-tween two or more entities engaging in bulk power supply lhi i
its service area in Louisiana with which it is interconnected';
i and between any such entity (ies) and any entity (ies) engaging 1
in bulk power supply outside Applicant's service area in Loui-siana between whose facilities Applicant's transmission lines 4
and other transmission lines would form a continuous electrical path; provided that (1) Permission to utilize such other trans-L-
mission lines-has been obtained by the entities involved, (2)
L Applicant has appropriate agreements for transmission service with the entities interconnected with Applicant at both the receiving and delivery points on Applicant's system, and (3)
).
i the arrangements reasonably can be accommodated from a func-i l
tional and technical standpoint.
Such transmission shall be on terms that fully compensate Applicant for its cost..Any entity (ies) requesting such transmission arrangements shall give reasonable advance notice of its (their) schedule and requirements.
(The foregoing appiies to any entity (ies) en-
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L gaging in bulk power supply to wh.ch Applicant may be inter-4 i-connected in the future as well as those to which it is now interconnectad).
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10.
Applicant shall include in its planning and con-struction program sufficient transmission capacity as re-i
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quired for the transactions referred to in paragraph 9; pro
- l vided, that any entity (ics) in its service area in Louisiana l'
gi've Applicant sufficient advance notice as may be necessary to accommodate its (their) requirements from a functional
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and technical standpoint and that such entity (ies) fully compensates Applicant for its cost.
Applicant shall not be i
i required to c6nstruct.trancmission facilities which will be l_
of no demonstrable present or future benefit to Applicant.
11.
Applicant will cell power (when availabic) for re-sale to any entity (ien) in.its service area in Louir.iana now engaging in or proposing in good faith to engage in retail distribution of elcetric power, whenever power to meet the L,
needs_of such entity (ios) is not availabic from alternate l'
acurces at competitive ecctc.
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The. foregoing conditions shall be in all respects implemented on reasonable terms ~and conditions in a manner consistent with the provisions of the Federal Power Act and other applicable federal and state laws and regulatory orders, and shall be subject to force majeure,. applicable curtailment
. pro' grams, and engineering and technical feasibility for-Appli-cant's system.
None of the foregoing conditions shall require Applicant to sell power, perform any. service, or engage in any.
course of action on a basis which would be unlawfully preferen-1 tial or discriminatory.under any applicable law or that would.
impair Applicant's ability to render adequate and reliable service to its own customers.
All rates, charges or practices in connection therewith are to be subject to the approval of
- regulatory agencies having jurisdiction over them.
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DRAFT DATED JUNE 16, 1984 l
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POWER DELIVERY AGREEMENT 1-
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POVER DELIVERY. AGREEMENT FOR TRANSHISSION SERVICE.
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This AGREEMENT is made this day of 2/
19
. by and between Gulf States Utilities Company, hereinafter called
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" Company" and hereinafter called " Customer".
ARTICLE I - TER.1 AND PURPOSE OF AGREEMENT, QUALIFYING CUSTOMER Section-1.1'- Term The term of this Agreement shall be for a period of l
years commencing
, 19
, and ending
,19 This Agreement shall be renewed for successive additional terms x
of years unless terminated by either party. Either party may terminate this Agreement, effective at the end of the initial term hereof or effective at any time thereafter, either during or at the and of any renewal term, by 3,1ving the other party three (3) years-written notice of termination.
In the event Power Delivery Service is not taken by the Customer withinthreeyearsfromthe-dateofthisdgreementstatedabove,then this Agreement shall automatically be terminated and,become null and void.
Section 1.2 - Purpose The purp'ose of this Agreement is to establish the terms, conditions, cnd consideration pursuant to which the Company will provide Power
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l Delivery Service to a Qualified Customer (as defined in Section 1.3 i
below).
Power Delivery Service is the transmission of power and energy over the Company's transmission system from a Power Supplier (Supplier) l i
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or Entity which is directly connected to the Company's system to the j
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Point of De' livery which is directly connected to the Company's system
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i e.W (as defined in Article III, below) to fulfill the load requirements of j
the Customer's integrated system.
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Customer shall have the responsibility at its expense for making all
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the arrangements for the purchase of power and energy and' the delivery l
.of it to the Company's system, including when necessary the arrangements a
for transmission through systems between GSU and the Supplier. The power and energy must be delivered by an Entity (as defined in the appropriate Service Schedule) to an interconnection point (s) of such
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Entity with the Company.
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The Supplier or the Entity through which the power and energy is a
L delivered to i.he Company must be an Entity connected directly to the J
Comp,pny's system and have an ac.tive Poweir Interconnection Agreement with a
l the Company.
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The contract path from the source of generation to the Customer's i
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load must have adequate thermal capacity under generally accepted i
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t industry standards to accommodate transmission of such generation and
.. s all other simultaneous transactions.
Section 1.3 - (ualifying Customer Power Delivery Service by the Company is available only to
'E-qualifying custcmers (Customer) which shall be defined to mean an incorporated municipality or a rural electric cooperative within or joining Company's service area and which owns and cperates its own 2
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jg electrital distribution system'for retail sales of electricity within 1
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J its system. - By its executien of this /.greement, the Customer warrants
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o that it is a qualified customer.
If the Customers owns or operates l
generating facilities, then the Customer hereby acknowledges th,at this Agreement does not provide for or cover interconnected operations, emergency jexcept as specifically provided for in,any attached service schedule) or replacement power supply from the Company or transmission servicesfordeliveryofpowErbytheCompanygeneratedbytheCustomer
, facilities.
Power Delivery Service pursuant to this Agreement shall be subject to the terms and conditions of this Agreement and of the Power Deli,very Service Schedule and Power Delivery Rate Schedule'PDS as in effect from time to time during the term of this Agreement.
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--ARTICLt !!
CUSTO.MER IhTORMATION, SUPPLIER AND LOSSES 3 : 6.. L
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Section 2.1 Customer Information
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_7 Customer agrees to promptly furnish Company with all information
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regarding the taking, use, and delivery of Power Delivery Service nI provided by Company hereunder as mey be reasonably requesi.ed by Company from time to time for Company to use in determining compliance with the l
terms of this Agreement, and appli' cable service and rate schedule (s),
. applicable-laws and regulatory rules and orders, or for it.to use in l
connection with planning or implementing curtailment programs as provided in Article VII'and to confirm compliance by Customer with such programs.
l Section 2.2 - Supplier 4
A Supplier must be an Entity as defined in Service Schedule PDS
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attached herste.- Information about the Eupplier shall be furnished to j
Comp'any by Customer as required in the Service Schedules and Rate Schedules. Customer may change its Supplier or Suppliers by giving 1 +
'E written notice to GSU at least one year in advance of such change.and 1
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not later than October 1 of the calendar year preceding the year in which such change of Supplier or Suppliers is to be made. The "new
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Supplier must meet all the qualifications contained in this Agreement and the Service and Rate Schedules.
The Company shall not be obligated to receive or deliver any power and energy under this Agreement from or to an Entity (as defined in this Agreement and Service Schedule PDS) unless, (1) the supplying Entity has an active power Interconnection Agreement with the Company and such 4
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- Entity 'is not-in default thereunder, (ii) the Customer has an active i
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.c fi1%'is not in default thereunder, and (iii).all-facilities are in place and V:::
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operational-including metering, telemetry, communication channels and transformation devices, y
1 Section 1.3 - Losses U.
,,4 Customer shall be responsible for electrical losses on the Company's "f
system and shall arrange for Supplier to' deliver to the Company',s system
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J' those losses associated with the Customer's load requirements.
Such losses shall be. furnished as specified in the applicable Service or Rate Schedule.
ARTICLE !!! - POINT OF DELIVERY AND LOCATION l
Section 3.1 - Point of Delivery 1
The el'octric energy to be furnished shall be
- phase, Alternating Current, at a nominal voltage of'
' volts, and a nominal frequency of sixty (60) hertz, and shall be delivered to a j
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mutually agreed Point of Delivery described as follows in Section 3.2
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below.
Section 3.2 - Location The Point of Delivery shall be located on the Company's electric system
'at the following location:
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to serve'the' customer's integrated system.<
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.. } ere shall be only one Point of Delivery served from Company's j
system for the requirements of the Customer. At Company's sole option, i
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'1J-Company may agree to provide an additional Point of Delivery at a j
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o mutually agreeable location on the Company's integrated system to serve
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the load of. the Customer's integrated electric system. If one or more additional Points of Delivery are estab1'ished by agreement, then all X
l r-references in this Agreement and all service and rate schedules to the F
Customer's Point of Delivery shall include.each and all such Points. If i
a Customer takes delivery at more than one Point of Delivery then Customer Q
agrees that the electric systems served from those points will not be e
operated in parallel.
ic Company sha).1 not be required to provide additional transmission, subs,tation or distribution facilities (except metering for billing purposes) in order to implement this Agreement or provide service k,-
hereunder except as-provided in Service Schedule PDS unless mutually a,, -
agreed upon by the parties. The Customer shall be responsible at its expense for furnishing all facilities necessary for its receipt and distribution of deliveries hereunder.
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' ARTICLE IV, SERVICE AND RATE SCHEDULES, POWER SUPPLY DETICIESCIES Section t. 1 - Service and Rate' Schedules Customer agrees to take and pay monthly for all Power Delivery Service and other service furnished hereunder on the terms and l-B conditions set forth in Service and Rate schedule (s) attached hereto and L
made a part horcot and in applicable superseding service and rate i
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schedulis.
If provisien is made in any rate schedulo for a minimum jg
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charge, Customer agrees that it shall be obligated in all events to pay such minimum charge even though Customer may for any I'esson in the y
period involved actually take no service or less service than that upon which the minimum charge is based. Bills for services and for other l
l amounts due under this Agreement are to be rendered monthly to the
. Customer by.the Company and shall be due on the 20th day of the succeedingmonthoronthe1bthdayafterreceiptofbill,whicheveris l
.later.
(The terms month and monthly as used herein are intended to
'l designate the period between any two consecutive readings of the
- i 4
Company's meters at'approximately thirty day intervals.) Payment shall l
be made at such office of the Company to which payment is due as the Company shall designate. There shall be added to any overdue amount interest on the~ overdue amount at the annual rate of five percent plus the prime rate for commercial' loans in effect at the Jrving Trust Company, One Wall Street, New York 10005, on the due date of the i
payment or, if such rate is unlawful, at the highest interes,t rate i
l allowable by law.
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Anything in the Agreement to the contrary notwithstanding, it is
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agreed that the rates of Company'to be charged for service and the terms and conditions,for service under this Agreement shall be as provided in the Company service and rate schedule (s) attached hereto or in any
-effective superseding service and rate schedule (s) of Company for such 1
type of service which are approved or accepted for filing by any regulatory agencies having jurisdiction thoroof.
In all events it is the intention of Company and Customer that at all times this Agreement 7
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y is in effect'(as it may be amended otherwise or extended from time to
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time), Company shall have and specifically reserves the right to change any of the terms and conditions of service and rates it charges for servicos-to Customer and place such changed terms, conditions, and rates in effect subject to such regulatory action, if any, as is required by 1*aw, but in all events without the concurrence or joinder of the Customer. All changes in rates, terms, and conditions by the Company shall apply to service contracted prior to the effective date of the change as well as service contracted hereunder after such effective date, except and to the' extent otherwise mutually agreed in any specific contract between tiie parties for service pursuant to the service schedule. For purposes of this provision, in no event shall the' Customer (regardless of its governmental character) be considered or j
4 deemed a governmental or regulatory agency having jurisdiction over any
-i rate,s of or change,of rates by Company for any service provided under i
this Agreement.
4 Without in any way limiting any of the rights reserved to the-Company in the preceding paragraph and to confirm the existence of such rights pursuant to the current r,egulations of the Federal Energy Regulatory' Commission, the parties agree that nothing contained herein shall be constr,ued as affecting in any way the.right-of the Company in furnishing service under any rate schedule (Service Schedule) to unilaterally make appli' cation to the Federal Energy Regulatory Commission (or the successor to such regulatory authority) for a change in rates and terms and conditions of service under Section 203 of the Federal Power Act and pursuant to the Commission's Rules and Reg,:lat.f ons i
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promulg'ated thereunder. In addition,-the parties agree that any such-
' changes to any Service Schedule may, but are not required to, take the form of a conversion of-the Servicie Schedule to a tarriff generally applicable to the type of service involved, i
It is distinctly-understood and agreed by and between the parties j
that this Agreement in no way obligates the Company to supply any service to the Customer except as may be specifically agreed to and provided under Service Schedules in effect hereunder.
l Section 4.4 - Power Supply Deficiencies It is fully agreed that Company under no circumstances is a
1 responsible or obligated for making up or supplying any deficiency from the Customer's Supplier and has no obligation to contact either the Supplier or Customer when such deficiency in supply exists. The.
Customer shall require that its Supplier assume full,and primary g
responsibility to provide or obtain all emergency and replacement power that may become necessary to meet the Customer's load requirements.
v If Supplier-(for Customer) requests Company to supply a deficiency, 4..
and if Company has' Emergency Energy available, Company will provide
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Emergency Service under the applicable Emergency Schedule attached and made a part of,this Agreement.
l If Company is unable to supply or obtain the emergency service requested under the terms and conditions of such Emergency Schedule, the t-Company shall not be liable or obligated to the Supplier er Customer, j
in the event that the Supplier or the Company is unable to supply the 9
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remove the deficiency.
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ARTICLE V - f!ETERING, TELEMETERING, COMMUNICATIONS AND CUSTOMER CONTROL AREA
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' Section 5.1 - Hetering All the Power Delivery Service' delivered to the customer shall be i
measured at the Point of Delivery designated in Article III.
All wires.
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meters and' devices necessary to measure *and bill the Power De' livery * -
l Service at the voltage and-amount specified in Articles II and III are
. i to be furnished and installed by the Company and shall remain the property of Company.
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In case of question as.to the accuracy of the Company's measuring
- I
. instruments, either party shall have-the right at any time, and from i
time to time upon giving forty-eight (48)' hours notice to tho' other part,y, to have such instruments tested, and, if necessary, recalibrated with both partie's represented at the tert. When Yequested by the Customer the expense of the test and/or recalibration shall be borne by the Customer if the Company's meters' are found to be accurate within two i l (2) per cent; otherwise, the cost of the test shall be paid by the i
1) i company. No allowance in the charge for Power Delivery Service shall be i
- made to the Customer unless the error of the meter or meters exceeds (2)
If if, shall be shown by'the test that any of the measuring percent.
instruments are inaccurate, proper allowance as shown by the test to be necessary shall be made to the party entitled thereto, but not for a
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longer period than thirty (30) days prior to the time when written complaint of inaccuracy is made.
In no event will corrections be mado 10 se p
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'deficiencythanthe'Customershallimmediatelyreduce[tsenergytaketo r-
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- ARTICI.E V - f!ETERING TE!J. METERING, COMMUNICATIONS AND CUSTOMER CONTROL AREA r
Section 5.1 - Hetering All the Power. Delivery Service' delivered to the Customer shall be measured at the Point of Delivery designated in Article III. All wires, i
meters and devices necessary to measure'and bill-the Power Delivery * -
Service at the voltage and amount specified in Articles II and III are
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to be furnished and installed by the Company and shall remain the property of Company.
In case of question as to the accuracy of the Company's measuring j
instruments, either party shall have the right at any time, and from l
time to time upon giving forty-eight (48) hours notice to the other
,l part,y, to have such instruments tested, and, if necessary, recalibrated j
with both parties represented at the test. When requested by the i
Customer.the expense of the test and/or recalibration shall be borne by the Customer if the Company's meters' are found to be accurate within two i
(2) per cent; otherwise, the cost of tht test shall be paid by the l
Company. No allowance in the charge for Power Delivery Service shall be
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i made to the Customer unless the error of the meter or meters exceeds (2):
percent.
If it shall be shown by' the test that any of the ecasuring instruments are inaccurate, proper allowance as shovr. by the test to be necessary shall be made to the party entitled thereto, but not for a longer period than thirty (30) days prior to the time when written complaint of inaccuracy is made.
In no event will corrections be made 10 a
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' for a piriod beyond thirty (30) days, or the date of the last preceding i
test, whichever is shorter. No allowance will be made on any bill on
- g account of claim for inaccuracy of measurement unhess Customer shall in writing request such allowance within thirty (30) days from date of bill.
If the meters installed by Company fail to register at any time during any month, the power delivered during such month shall be estimated upon the basis of the best available data considering the actual power delivered to Customer under substantially similar
. conditions.
Section 5.2
- Telametering and Communteations 1
I Customer shall be responsible for and previda or cause the Supplier to provide telematerirs and communications between the Supplier and Customer's Point of Delivery, and the Supplier shall supply generation a
t to continuously match the Cus,tomer's load requirements, plur associated l
losses experienced in the Company's System as provide'd in the applicable service and rate schedule.
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Customer shall reimburse the Company for the Company's costs of acquiring and installing the telemetering and communication facilities installed by the Company to supply the Company's Power Supply Department with information on the Power Delivery at the Customer Point of i
Delivery.
1 Customer shall reimburse the' Company monthly for any recurring cost i
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associated with providing Power Delivery Service hereunder, such as Icosed communication circuits, etc. whether or not service is actually i
i provided during the month.
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me Effective from the initiation of any Power Delivery Service under y
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this Agreement and continuously for the period such service is to b's M.p, provided, the Customer shall cause itself to be. included in the
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- Supplier's control area and removed from the Company's control area, and I
the Company will have no responsibility for the Customer's power supply N'.
except as provided under this Agreement.
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1 Customer's agreement with the supplier shall specify that the rt i
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Supplier is responsible for scheduling and delivering continuously the
..(i Customer's power supply to match the Custosier's load requirements.
P Prior to initiation of service, the Customer shall furnish the 5,.
Company a popy of the sveply contrict between the Crstomer and the A,-
i.E Custcmer's Supplier. The Company-shall have the right (but. not the r,
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obligation) to periodicelly audit the Supplier's Power Supply
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Dispatching Records and the customer's contract with its Supplier shall E.'
so provide.
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Section 5.4 Taxes and other Governmental Charges
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In addition to the rates provided in this Agreement and the Service Schedules effective hereunder and rate schedules applicable thereto, Customer shall,psy or shall reimburse the Company for the applicable proportionate part of any new tax, or increase in existing taxes due to
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audit changes imposed by tax collector, or governmental imposition or charge (including those which may be lawfully imposed by the Customer upon the Company, but excepting state, parish, city, and special district ad valorem taxes and any taxes on not income) Icvied or 1
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assessed against the Company's electric business after the effective d
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date of this Agreement and which affect the service under this 1
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Agreement, except as the power and energy may be exempt under law from j
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-the effects of any such tax or taxes.
In no event shall the customer be 7.V l'
.'l entitled to any payment or reimbursemen,t hereunder from the Company for a.,
nc any new tax, levy, assessment, imposition, or other charge by the t
Customer or. p'yment in lieu of tax to the Customer, or any increase in i
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a any such existing charge imposed by the Customer upon its electric L.
business.
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,2 Section 6.1 Defsu3t
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If the Customer shai) default in the performance of at,y of itr y
9' obligations under this Agreement, including but not limited to payment L.
el suas due undwr thi:: Agreem.ent, er shall 'itolats any of the provisions.
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hereof or of any applicab*e service or rate schedule (s), the Cwpany may l
y suspend. service upon fif teen (15) days advance written notice specifying 7
i' the default and declaring its intent. ion to suspend service, provided said default or violation is not remedied within such fifteen (15) day period. such suspension is not to interfere with the enforcement by tho '
Company of any rights under this Agreement or of any other legal right or remedy. No, delay by the Company in enforcing any of its rights h
hereunder' shall be deemed a waiver of such rights, nor shall a waiver by l
the Company of one of the Customer's defaults be deemed a waiver of any other or subsequent default.
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In the event said default or violation is not remedied within thirty t?. '?
(30) days after initial notice of default end intention to suspene f
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service has been given by Company, then this entire Agreement shall, at i
the election of the Company, and without regard to whether Company did in fact theretofore exercise its right t6 suspend service, be wholly at an end, and Company shall be entitisd to terminate all service and disconnect and. remove its facilities, subject to such regulatory action
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as may be required by law. Upon such termination becoming of factive the parties shall thereupon be severally released from all further obligation hereunder'except for rights of action then already accrued.
No dispute with reference to the amount due for Power Delivery
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Service shall excuse the Customer from paying, at the time t'han payment i
is called for by this Agrasm6nt, tho'smount, stated by Company to be due, p
9 but the Custoeer shall be entitled to recover any amour.t whAch it may have' paid in excess of the amount actually found to be due.
1 ARTICLE V!1 UNCONTROLLABLE y0RCE AND INTERRUPTIONS OF SERVICE
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Section 7.1 - Uncontrollable yerce and Interruptions of Service The. Company shall supply continuous service and avoid interruptions or curtailment of service which it may be under obligation to supply hereunder, but it shall not be considered to have committed a breach of
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this Agreement or any Service Schedule or to have f ailed in any of its obligations hereunder or under any Service Schedule by reason of any interruption or curtailment caused or occasior:ed (i) by installation, maintenance, repair, test, inspection, or replacement of equipment in accordanco with accepted utility practice; (ii) by function of i
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1 preserve the integrity of its system or interconnected systems, or by
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nanual load shedding in an emergency when, in its judgment, such action will tend to prevent or alleviate a threat to the integrity of its power j
supply or transmission system (iii) by the negligence of the Company, its employees or contractors, which does not constitute gross negligence r
l' of or a villful default b'y ist or (iv) by an uncontrollable force, as defined below or effected pu'rsuant to tha teres' of any Service Schedule.
, Reasonable diligence shall, however, be exercised to restore service as promptly as possible after the occurrence of any such interruption or I
curtailment.
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The-Company sht.11 have the right t.o interrupt or curteli service as i
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expressly provided in this Agreement or the applicable Service schsdule.
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Interruptioss and curta11ments made fer tt.e purpose of installing,
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maiottiniagi repsiring, twsting, ' nspecting, or replicing equipment 1
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shall be made insofar as practicable at such time and in such manner as I
shall occasion least inconvenience to the Customer and on all such occasions reasonable advance notic's shall be given to the customer if l
the nature of the situation permits unissa otherwise provided in the Service Schedule.
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yurther, the Company's obligation.to supply service hereunder or under any Service Schedule is als,o at all times subject to and it shall
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not be liable, whether by contract or otherwise, for any damage or loss.
l direct or consequential, by reason of (i) curtailment by the Company of any service or refusal by it to supply additional capacity or service l
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due to its implementations of its curtallment programs (which programs fl;,,
may provide for priorities as between various classes and categories of,
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c customers and various uses or types of service, may be implemented system-vide, tagionally, or locally in the discretion of the Company, 1-and may be amended or supplemented by the Company from time to time) whenever the company in its discretion, which shall not be exercised Er unreasonably, deems such implementation to be necessary because 1.t.is axperiencing or is about to experience a shortage of capacity
^
(generating or transmission) or energy resulting from any cause, subject to any order of any regblatory authority having jurisdiction; (ii) curtailment of any service made by it in compliance with orders or
, requests cf any goveiramental agancy curtailing, conserving.
teallocatinp;> or diverting evailable pcVer resourcss, facilities, or fuel (ir cluding but not limited to orders sought or supported by the Cogany); or (i!1) acceptt.nce by the Company (either with contract or s:(
without) of new custoetra ar.d additiorial loads of customars beirg served or new interconnections or nev.or additional servic.e to interconnected parties or new or additional power delivery service even though doing so may affect the Customar by increasing the amount, frequency, or duration of curtailment of service to the Customer pursuant to such programs unless the Company acts in bed f aith in accepting the new or additional load, interconnection, or service. Upon written request, the Company will provide to the Customer a copy of such programs as supplemented.
modified, and in ef f ect from time to time. Each party shall be fully responsible for installing on its side of the Point of Delivery all i
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equipmeht necessary to enable it to effect such curtailment as may be
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provided for or requested under such programs.
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.y In the event the Company does curtail any such service to the Customer pursuant to such program, the Customer agrees that upon request it shall immediately take all action necessary to achieve the requested
- curtailment. In the event the Customer does not upon request immediately obtain the requested amount of curtailment, then such failure shall constitute a default by the Customer hereunder and, in addition to such other recourse as may be available to the Company based upon such default, the Company shall have the right to totally interrupt I
ard suspend service to the Customer without further notice during the I i i
period such curtailment is in effect.
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m ther the Custoect has theretofore achieved requested curtailment j-er not, nothing herein shell.' limit the ConNc,y's riJp tc require l
furttier curtr>ils%nt by or to interrupt sereice
>,o the Cassemer nor limit tha Custoute's responsibilities with regard thereto.
2 If it is practicable to do so under then existing conditions, the Company shall attempt to give the receiving party advance notice of any interruption or curtailment, which notice may be by telephone, telegraph, or other means, as appropriatq; provided, however, that the Company shall have the right to interrupt or curtail service even without notice (either by automatic equipment or otherwise) when there is not reasonable time under the circumstances to give notice. As used in this Section, the terms " curtail ent" and " curtail" shall for all purposes include voltage reductions or abnormalities, reversal of 17 hb 4i, g
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j, supply; suspensions of service, and any other forsas of modification,
. r reduction, or interruption, in whole or in part of service.
e The term " uncontrollable forces" shall include, but is not limited to, acts of God, acts of the public enemy, failure of facilities.
explosion, breakdown, flood, accident, earthquake, storm, hurricane, wind, lightning, fire, epideaic, war, riot, civil disturbance, labor, disturbance, strike, sabotage, or restraint by court or pub'lic author;ty
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having jurisdiction, fuel curtailment, rationing, or shortage, material
_i shortage, delay in del'ihery, national emergency, delay or.f ailure of
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performance by a third party, governmental delay, action or inaction (including but not limited to action sought er supported by the party),
or other acts er conditions, whether of the same or different character than thosa above referred to, and esclusi.ve #n all svents of these acts o
s,nd conditions described in the preceding patagraphs which operate independently, beyond the reasonable control of the party affected, p
5 I
. Neith6r party chall be responsible to the other for delay in or p
failure of performance of its obligations hereunder or under any Servics f,
Schedule (except that obligations to pay monies which are then due under the provisions of this Agreement shall not be excused) when such delay or failure is caused by uncontrollable force. The party subject to uncontrollable
- force shall use all reasonable diligence to remove or cure the inability, provided that neither party shall be required to I
settle or resolve labor disturbances or strikes or accept or agree to governmental or regulatory orders or conditions without objectien or contest on any basis not acceptable to such party in its sole 16 1.5 s -
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discretion. Notice of uncontrollable force shall be given by the party affected as soon as resonably possible.
e Customer' agrees not to injure nor tamper with and to take all reasonable steps to prevent employees of Customer, or other persons from injuring or tampering with Company's prcper'ty, including but not limited to meters, and all other electrical equipment. Customer agrees to install and' asintain in a thoroughly safe and. efficient manner, and in accordance with good electrical practice and all applicable lawful
' regulations, all of its !!.ncs, transformers, viring, apparatus, machinery and appliances connected to the Company's line.
If at any time any part cf Customst's lines, transformers wiring, appdratus, machinery or appliances t,ht11 Le in a conditien which ints:fu as with Company's p mpar service ts Customer, or to its other customers, Company shall have the right, in addition to any other right of discontinuance
~
hewmdee, to discontinue service to Customer until 1,'uch interf ering parts steil be put back in proper ept.ratir,g condition, or shtd1 have 1
been replaced or discennectad. Except in case of emergency, Company shall give Castomer reasonable written notice of its intention to discontinum service to Customer on account of any such claimed interference, and, when practical, suitable time for the repair or replacement of,such interfering part.
Neither party to this Agreement assumes the duty of inspecting the other party's lines, transformers, wiring, apparatus, machines, or appliances, or any part thereof.
ARTICLE VIII
- LIABILITY Section 8.1 - Liability 19 j
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Customer assumes all responsibility for the electric power and U
energy delivered hereunder after it leaves Company's lines, as well as for the wires, transformers, apparatus and appurtenances used in connection therewith at and beyond the Point of Delivery defined in htticle!!!,andherebyagreestoprotectandsaveCompanyharmlessand indemnified fros* injury or damagt to persons or property occasioned by such power and energy or by such wires, transformers, apparatus and appurtenances at and beyond said point of delivery, except where said injury or damage shall be shown to have been occasioned by the sole negligence of Company. 'It is further understood and agreed that Company shall not be responsible for injury or damage to Customer's employees in tampering with or attempting to repair ana/or maintain any of tho t
Company's linas, t'Aring, apparatus or aquipment on Comyany't, side of tha l
l point of delivery $ or such meters, applianc-:s and appurtenances as Comp,any may install on Customer's' premises at and beyond the point of
'.delivary and Customer will protect, save harmless and indemnify Company l'
against all liability, lots, cost, damage and upense including attorney's f ees by rearton of such injury or damage to such emp,loyees or other person or persons; and, likewise, Customer shall not be lieble for injury or damage to Company's employees where such ' dan:tge or injury in
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occasioned by acts of Company's amployees in tampering with or attempting to repair and/or maintain any of Customer's lines, transformers, viring, apparatus or equipment on Customer's premises, and Company wil1 protect, save harmless and indemnify Customer against all liability, loss, cost, damage and expense including attorney's fees by reason of such injury or damage to such employees.
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interveningEntitytoagreeto'assumefullresponsibiiityandindemnify the Company with respect to occurrences and facilities prior to the point (s) of recei,pt by the Company in the same manner as the customer assumes' such responsibility and indemnifies the Company with respect to occurzences.and facilities beyond the Point of Delivery in che preceding paragraph.
ARTICLE IX TRANCHISES, RIGHTS OF WAYS, PERMITS, ETC.
Section 9.1 - Franchises. Rights-of Vays, Permits. Etc.
It is underaccod and apsed th6t the covensnts of the Company harsir watained an eeniitioned upon its securing and tateining the nscessary franchises, right of ways, and permits, at costr in its judgment rearonabir, anA without expropriatica, to enable it to provide service ur. dor this Ageeoment, and the C9stomer 43rtoe to futn'ish a rig,ht-of-way
. over land which is owned or controlled by the Customer, free of cost, and to aid in every way in securing other necessary right-of ways, and furnish Company's employees access to premises free of tolls or other
~
charges when employees are on Company business. If requested by Company, the Customer shall furnish witn' eut cost to Company, a suitable I
place for the p, roper installation of Company's meters and other electrical equipment necessary to deliver and measure the service furnished under this Agreement.
ARTICLE X BEGULATORY APPROVAL Svetion 10.1 - Regulatory Approval 21 as. f,m.,:n
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- !his Agreement shall not be binding upon the parties herete until W
approved or accepted for filing by all state and federal regulatory i
t authorities having jurisdiction hereof.
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ARTICLE XI SUCCESSORS AND' AS$1GNS l
Section 11.1 - Success 9rs and Assigns l
4 This Agreement shall bind and inure to the benefit of the parties hereto, theif successors e ? assignst but the Customer shall not assign any of his rights under this Agreement without obtaining the prior written consent of the Company.
ARTICLE XII OTHER AGREEHENTS Secti6n 12.1 Prict Agresainnts
~
This Agreement, uppn its date of taking effect, shall supersede al'1 i
previous agreements betueen the Company and the Customer relative to the serv,1ces covered by'this Agrtement, interconnection arrangements, or the purchase and sais of V'holesale Electric 3ervice. Such other agreaments shall be terminated as of the commencament of this Power Delivery
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Service Agreement.
ARTICLE XIII - EXECUTION Section 13.1 Execution No agreement or representation made by a representative of the Company or Cust'emer, unless reduced to criting or incorporated herein, shall be binding upon either party.
l ARTICLE XI\\' - NOTICE I
Section 14.1 Sotice l
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Any' written notice, demand, ci req;est required er authtrized under
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this Agreement or any applicable service or rate sche'dule shall be i
deemed properly given if deposited in the U.S. Mail,' postage prepaids by
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i registered or certif'ied mail, addressed to the party to which it is given at the address indicated by the sig-stures of each party hereto.
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ARTIC1.E XV APPROVA!.S
!:id-l IN TESTIMONY VMERECT, the undersigned parties have duly executed r-this Agreement on this day of d
1984.
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GUIJ STATES UTILITIES CO.'!PANY l-1~
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SERVICE SCHEDULE PDS Q3 j..
P0h'ER DELIVERY SERVICE
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0.1 This Service Schedule PDS is a$ reed to on 19
, to become effective under, and as. a part of, the Power Delivery Agreement (Agreement) betweep (Customer) and Gulf States Utilities Corspany (Company). The term of this Service
' Schedule,shall be the some as the Agreen,ent betweeh thn parties with any 4.-
extensions thereto in accordance with the Agreement.
SECTION 1,- PURPOSE AND DEFINITIONS, 1.1 The purpsse of this Settice Schedule PDS is for the Compar.y to c(
provide Power Delivery Service to move power and associated energy from i
tho' Customer's Power Supplief's (Supplier) interconne,ction point (s) on the Company's system or if there is an intervening Entity (as defined in Section 5) through which the power and energy is delivered to the l'
Company then from such Entity's inte'rconnection point (s) on the Company's system to the Customer's Point of Delivert directly connected to Company's system and to establish the terms, conditions, and standar'ds applicable thereto. To assure that Power Delivery capacity on
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Company's syst m shall be reasonably available to Customer Power Delivery Scrvice shall not exceed the Capacity st.ited on Exhibit A to the Agreement. All deliveries of Power Delivery Service shall be under the terms, conditions, and standards provided in the Agreement and this Service Schedule PDS. This Service Schedule and slweific deliveries of
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Power Supply Service hereunder shall not constitute a dedication of any facilities to common carrier status by Company.
c SECTION 2 - OBLIGA710NS 2.1 loginning on the commencement date for P'wer Delivery Service o
under this Service Schedule Customer at its exppnse shall have its Supplier er the delivering Entity deliver to the Company and the Company shall, receive at ths Supplier's or Entity's interconnection point (s)
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with tne Company, for dilivery by the Company to the Customer Point of j
Delivery, pever and associated energy necessary to fulfill the load 1
requirerents of the Custceer's integrated system.-
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, 1. 2 Customer agrees to furnish to Company prior to October 1st of
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each year, a six (6) calendar year (or for the remaining term of this Service Schedule'if less than six years) maximum load estimate by years for its Point of Delivery for the remaining term of the Agreement.
Customer shall be fully responsible for preparing such estimates and shall use due diligence in the preparation thereof and in updating such estimates. Customer shall, promptly advise Company of any changes and updating of such estimates.
2.3 Customcr shall keep company fully inforn.ed, as f ar in advance as practically possible, of their anticipated requirements for such Power Delivery Service hereunder and shall in all events give the Company twelve months written notice of such requirements for ist. Point of Delivery for each calendar year not later than October 1 Sf the preceding-year.
Such notice shall :nclude details, of the lo:.ation of P
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SCH. PDS page 3 Company's interconnection with tho' Entity which will be the Supplier or f
will make delivery of the power to the Company, the f acilities required, and insofar as known, proposed quantities of power and energy, and proposed delivery schedules, and shall provide such other information requested by Company to enable it to determine its ability to provide the requestid Power Delivery, Service from such entity in accordance with the terms, conditions and standards of this Service Schedule. Company iray waive the Cetobet i deadline o: the 12 Inonths '. ice.
2.4 Normally Company will be able to determine from previous load studies whether Power Delivery fervice capacity is available, but in the event lo90 flow or other engineerir.g studies are reasonably required for Company to determine the availability of f acilities for transmission from such other entity within'the. standards provided herein, Company shall within fif teen (15) days after receipt of notice from Customer give written notice to Customer of such need for studies and the estimated cost thereof.
If Customer elects to proceed, they shall within fifteen (15) days of Company's notice so advise company in writing and agree to pay such costs, in which case a copy of the study will be made available to Customer for their further planning,-including all-information*nocessary to determine the correctness of the results.
If Customer does not elect to so proceed, then neither they nor Company shall have any further obligation hereunder with regard to such requested service.
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2.5 If Company determines that the requested Power Delivery Service i
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If the requested Power Delivery Service is determined not to j
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reasons why such service will not be available.
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2.6 Ccapany shall not na obligated to supply Power Delivery Service for any power and energy to the Customer hnless and until both Company and Customer have reducec'. the terms of such Power Delivery Service in p
L accordance with this Schedule to ( written agreement executed by duly
[J authorized officers or agents of Customer and Company.
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2.7 Power Delivery Service under this Agreement shall be contracted 1
for a term of not less than two years.
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$ECTION 3
$UPPLY OF POWER DELIVERY SERVICE 3.1 The Company will furnish Power Delivery Service in accordance l
with this Service Schedule to the extent it has transmission capacity L.
available to provide such service (which qualification is not intended l-to limit the express obligation of Company to provide transmission l
facilities in accordance with the provision of Section 3.2 below) under L
sound engineering and good uti*1ty practice and subjer.t to the following stand 6tds:
a.
Such service will neither impair the ability of Company to render adequate service to its customers nor impair or reduce the reliability of electric' service by Company to its own 1
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customers during the term of the scheduled service below
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Such service will not endanger, impair, c. create unsafe 4
i conditions on the system or any of the facilities of Company or
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its customers or parties with which it is interconnected, j
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Such service shall not violate or be f.nconsistent with and
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shall not cause Company to violate, directly or indirectly, or j
become a party to violation of any applicable statute, order,
-l ordinance, governmental or agency rule, regulation, or other j
applicable federal, state or local law; and without limiting the scope of the foregoing, the receipt of.the Power Delivery l
Service by Customer, must in all events be lawful, duly authorized, and approved or accepted for fil'ing by all 1
C regulatory agencies, if any, which*then have jurisdiction over such delivery, and the Power Delivery Service shall not cause
~.2 Company to be discriminatory or preferential in any service, i-rate or charge to any customers of Company within the me.
4.n g of any applicable law.
d.
In the event the Customer Supplier's source of generation is unable for any reason to supply power and energy to Company, Company shall have no responsibility to deliver Power Delivery Service from any other source except pursuant to prearranged and contracted sales.
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The determination of the availability of existing transmission
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capacity of the Company shall be made on the basis of existing I
load, future contracted or projected new load beyond normal
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load growth, previously scheduled load (both hereunder and 3
Y otherwise), and normal load growth of the Company, all as IO estimated by the Company on'thf basis of its customary 1-I-
l engineering planning practice.
l 3.2 During the ters of the Power Delivery Service to be provided by Company pursuant to this Service Schedule, and subject to the terms ara t-conditions of the Agreement and this Service Schedule, Company agrees that it will provide and maintain internal transmission capacity sufficient to deliver Customer power and associated energy necessary to meet the Normal Lead Growth of the customer. " Normal Load Growth" is defined as the average rate of growth in percent for the most recent five year period for the appliceble Customer's Point of Delivery.
Individual 1ciads added during the most recent five year period exceeding two times such Normal Load Growth average rate will-be excluded in the determination of Normal Load Growth.
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In order fo,r the Company to provide this service under Section 3.2 the following conditions must be met:
'Such loads and Normal Load Growth, and Company's obligation to a.
provide such capacity sholi include initially or at any time C-during the term cf this service only amounts up to the full requirements load of the Cotomer at its Point of Celivery.
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Company shall have the option of providing any additional
's transmission capacity for Kormal Lead Growth either to the Customer's Point of Delivery or providing it to an additional Customer Point of Delivtry mutually agreed upon by the Company and the Customer, and Customer shall be obligated at its expense to install guch additional facilities at. the existing Point of Delivery or at the new Customer Point of Delivery as may be necessary for it to receiv's the transmission, including but not limited to additional or new substation facilities with such transformation and switching equipment as may be necessary.
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The facilities furnished shall in all events.be those deemed 4
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netvsrary by Compaay*to provide such service-in accordance with Coupany's then current construction and operating standards.
3.3 During the tore of the Power Delivery Service to be provided by Company pursuant to this Service Schedule, Company shall have no obligation to provide or maintain transmission capacity other than as Provirled in Section 3.2, and shall have no obligation under this Service Labecule to provide or maintain transmission capacity at its
.: tcreonnections with other systems suf ficient to provide Power Delivery
.>ervice to the Customer.
In the event Customer requires transmission tapacity for the Power Delivery Service provided for in this Service Schedule which the Company is not obligated to furnish under Section 3.2 above, Customer may in vriting request the Company to furnish such
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facilities (excluding facilities at the Coopony's interconnections with 5
other systems) in time reasonably sufficient for the Company to include such' facilities in its planning and construction program and sufficient for such facilities to be completed in' time to accommodate the proposed transmission service.' The Company will furnish such facilities, including additional Points of Deliverys only by mutual agreement of the part'ies and subject to the following conditions:
Such loads, shall include initially et at any time during the a.
term of this service only those loads of the Customer as defined under Section 2 of this Service Schedule and served from the Point of Delivery as defined under Article !!! of the Agreement.
- b.
If any neO or additional facilities are required for such Power Delivery Service, Customer shall pay to the Company a facilities charge which wil,1 fully compensate the Company for the costs of such facilities beyond the cost the Company would otherwise incur for its own use.
c.
The facilities furnished shall in the events be those deemed
,necessary by the Company to provide such service in accordance with the Company's then current construction and cperating standards.
d.
If the parties fail to reach mutual agree ent for the Ccepany to furnish addit;-tal points of delivery er it. creases in l
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capacity for whatever reasons, then the customer shall have the 3.'s option of providing the necessary distribution and transmission facilities to interconnect with the Company's existing transmission system at mutually agreeable points, subject to appropriate approvals and certifications by any regulatory authorities having jurisdiction. The company shall have the right to contest such interconnection in any such regulatory proceedings and otherwise.
3.4 Upon reasonable advance written notice to Company, Customer may abandon any Point of Delivery or may reduce the amount of capacity previously specified under this Service Schedule for any Point of Dalivery. Such abandonment or reduction in capacity shall become 1
effective on the date speciffed by Customer in the no,tice, but not sooner than twelve months after the date such notice is received by Companyl provided, that in calculating Power Delivery Service Billing Demand such point shall be included'as though such abandonment or C::
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reduction in capacity had not taken place until the twenty fifth month
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f following the month in which notics of the* reduction in capacity or abandonment is given.
Advance notice of abandonment or reduction may be waived by Compa*ny if mutually agreeable.
3.5 Power Delivery service hereunder shall be made available normally on a 24 hour2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> i er day basis and 'shall be entitled to priority-over all transmission service for surplus pcVer and energy and secondary energy regardless, of priority in contract date or schtouling and to M
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. . 4 priority over all economy transactions with other parties, and to
- .,6 priority over replacement energy transactions (other than for unscheduled forced outage) with other parties if other sources are available further, except as otherwise agreed in any contract between Customer and Company for a specific transaction under this schedule.
Power Delivery 8ervice hereundewr shall have priority over interruption for transactions of Company with other parties for emergency service and replacement energy service in'volving unschedaled forced outages unless emergency service or such replacesor,t energy is not available from other
- sources, 3.6 Anything to the contrary in the Agreement, this Service Schedule PDS or the Rate Schedule PDS to the contrary notwithstanding, 4
t it is agreed that Company is not oblig'eted to interrupt its firm customers in order to maintain a scheduled Power Delivery Service.
Company may curtail or interrupt, in whole or in part, any Power Delivery Service provided hereunder upon ten (10) ainutes notice (given by telephone or any other manner to the Customer) if systes conditions are such that the transmission adversely affects, beyond accepted standards, the loading on facilities or if Company determines that any of the standards in Section 3.1 a, b, or e are not being met, and may in all events interrupt any transmission service instantaneously and without notice if Company dee'es it necessary to protect system stability. Without in any way limiting the general applicability of the terms and proiisions of the Agreement for service under this Service Schedule, it :s expressly noted that the obligaticns of Company to 4-
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. $O, provide Power Delivery,$ervice hereunder are subject to the provisions of Article VII of the Agreement and Section 3.5 above. All contracts by Custoa.or for its purchase of power and energy from a Supplier involving transmission service by Company hereunder shall be subject to all of the conditions of this Service Schedule PDS and shall explicitly recognize such rights of the Company to, curtail and interrupt transmission service.
SECTION 4 BASIS OF SETTI.EMENT 4.1.
For the Power Delivery Service provided by Company hereunder, Customer shall pay to Company each month an amount computed on the basis of Rate Schedule PD8 attached.
4.2 Company shall render bills each month for special Power Delivery Service provided during the preceding month.' Such bills shall be prepared on the basis of metering information obtained in accordance With Artisle V of the Agreement and Section 2 of this Service Schedule.
4.3 In the event it should at any time be determined by Company, eitherbyaudit,seteringtesting,orotherwise,thatactua$ Power Delivery Service exceeded the amount previously billed, then Company shall be entitl'ed to bill and Customer shall be obligated to pay an amount equal to tho' rate for Power Delivery Service applied to the corrected amount of actual service transmitted in excess of the amount previously billed.
In no event shall this imply an cbligation on the part of Company to provide Power Delivery Service bcycud that actually contracted foi under this Service Schedule.
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4.4 If the Customer nw or hereaf ter has a physical interconnection with the Supplier or delivering Entity, then the Power Delivery Service 4 arse shall be calculated on the actual peak power transmitted over the Company's systen to the Customer for the twelve months ending with the current month.
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SECTION 5 P0INTS OF DELIVERY 5.1 To assure the applicability of all the standards and conditions for transmission service hereunder, including but not limited to the
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prevention of discriminatory or preferential service, rates, or charges I
j by company and prevention of impairment of Company's ability to serve its customers, it is agreed that for purposes of this Service Scheduie, Points of Delivery shall be limited go those described under Article III s
and any Points of Delivery added by mutual agreement.
SEC:r!0N 6 D d!NITION OF ENTITY 6.1 To assure the applicability of all of the standards and conditions for Power Delivsry Service hereunder, including but not limited to the prevention of discriminatory or preferential service, rates, or charges by Company and prevention of impeirment of Corepany's ability to serv,e its customers, it is agreed that for purposes of this Service Schedule. "i.ntity" shall mean any municipality, rural electric i
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cooperative, public or private corporation, governmental agency such as j
TVA and Southwest Power Administration, or lawful association of any of i
l the foregoing (a) which lawfully exists and owns ar.d operates or 1
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proposes to own and operate electric generating facilities with i
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SCH. PDs Page 13 facilities for transmission and/or distribution of electric energy; (b) which, with the exception of municipalities,' governmental agencies and rural electric cooperatives, is or will upon commencement of operations be a public utility'for in the case of an association each member thereof, excepting municipalities,' governmental agencias and rural electric cooperatives, is a public utility) under the laws of Texas or Louisiana or the Federal Power Act and provides or upon commencement of
' operations will provide electric servics under contracts or rate schedules on file with and subject to regulation of the Louisiana Public Service Commission, the Public Utilities Commission of Texas or the Tederal Energy Regulatory Commission; and (c) with which Company then has a physical interconnection and has entered into a power -
interconnection and interchan.ge agreement which provides for transmission service and which agreement is approved 'or accepted for filing by the Federal Energy Regulatory Commission without conditions unaccep, table to Company.
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!.7 EXECUTED as of the date first hereinabov6 mentioned.
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Aeolication This Rate Schedule shall apply to provisioE by Company of Power Delivery Service to Customer under and pursuant to the Power Supply e
Agreement between such parties and Service schedule PDS thereto.
2; Power Supoly Service Billina Demand Power supply Service Billing haand shall be the arithmetical sum of the non-concurrent saximum 6C unute kw demands f'or Power Delivery Service delivered from the Company systes at each of.the Customer Points of Delivery during the Billing.Honth of the 12 months period j
ending with the Current tilling Month when such arithmetical sum was highest; provided that each Point of Delivery shall be included in the determination of the sonthly arithmetical sus of maximum 60-
- minute kw demands at not less than the greater of (1) 50*. of the kw capacity specified for such Point of Delivery under Exhibit "A" to' e '.
Service Schelule PDS or that which is deemed to continue in effect for twenty-four months under Section 3.4 of Service Schedule PDS with respect to Points of Delivery which have been abandoned or reduced in capacity) or (ii) 50*. of the maximum 60 minute kw demand 4
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Transmission Service Rate The rate for transmission service'which shall be paid by Customer to Company is as follows:
230 KV 345 KV and 500 KV. $ 0.740 per W per month,
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69 KV and 138 KV..... $ 1.060 per W per month C
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$ 1.280 per W per month 3 ',.,
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$ 1.570 per W per_ month The applicable rate shall be based upon the lower of the voltages at
..A the point of delivery or the point of receipt on the company's
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4.
Losses Whenever Cu'stomer schedules the delivery of power and energy over the system of the Company under the provisions.of Service Schedule PDS, it shall be the Customer's obligation at its expense to cause its Supplier to make deliveries of power and energy to the interconnection points on the Company's system at which the power and energy is received by the Cc:npany continuously in c.u.est. of the l
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3-SERVICE SCHEDUI.E GES EHERGENCY SERVICE 0.1 This Schedule GES is agreed to on
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- be effective under, and as a part of, that Power Delivery Agreement (Agreement) between Gulf States btilities Company (hereinafter referred
- to as Company) and (hereinafter referred to as Customer), dated 19
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ters of this Service Schedule shall run concurrently with the Agreement, providad'that either party can tersiinate'this schedule by written notice.
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given to the other party not less than four (4) years in advance'of the 1
termination date.
i SECTION 1 - EMERGENCY SERVICE
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1.1 The intent of this Schedule is to provide for emergency j
assistance from Company to the Customer under the terms and conditions set forth herein and in the Agreement.
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1.2 Emergency Service for the pu'rpose of this Schedule shall mean:
U (a) Energy supplied by Company (Seller) to Customer (Buyer) during any period or periods t. hen emergency conditions beyond the control of Customer's Supplier exists temporarily on the system
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of Customer's Supplier so that generation and transmission facilities of Customer's Supplier's system, includir.g purchases
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.(not including such Emergency Service), are inadequate to carry 2-Customer's system load responsibility.
1.3. When Customer desires Emergency Service, as defined in f
paragraph 1.2 above, which Company is in a position to, furnish, and
' Customer or Customer's Supplier requests Emergency Service from Company g
and an agreement is reached as to the amount of Emergency Service which can be delivered by Company and the probable duration of such delivery; then Company shall furnish the requested Emergency Service from any available source (including purchases from a system or systems not a Party to Agreement for resale to Customer, if requested by the Customer t
or Supplier) to the extent that, in the judgment of Company, the
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generation or purchase and the delivery of such Emergency Service will.
not' impair or jeopardize sers' ice in tho' Company's system or its
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commitments to others.
i SECTION 2 CONDITIONS FOR SERV.1CE 2.1.It is agreed that Company has'no responsibility or obligation i
to make-up or replace any deficiency of Customer'_s Supplier, but Company will attempt to provide Emergency Service to the maximum extent i
practicable as set forth in this Schedule.
2.2 At the time of any request for Emergency Service Customer shall give Company information concerning the nature and extent of the conditions causing the emergency.
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3.1 Emergency Seivice supplied hereunder shall be billed-and paid
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(. a) 17.5 mills' per kilowatthour; or (b) Company's-cost of fuel for generating such energy, including start-up costs, if any, plus 5 mills per kilowatthour; or (c) 110% of Company's costs to purchase such energy from another supplier,.and provided the 10% amount shall not exceed 2 mills per kilowatthour.
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l April 27, 1984 i
RBG-17,678 File No. G9.5 l
s Hr. WillirJa Regan, Jr., Chief Site Analysis Branch G.
Office of Nuclear Reactor Regulation l-U. S. Nuclear Regulatory Commission-Washington, D.- C.
20555
Dear Mr. Regan:
River Band Station Units 1 & 2 operating License Antitrust Review i,
Docket Nos. 50-458A/50-459A i
4 -
We take this oppertunity to respond to assertions made by the City of-Lafayette in its letter to you of February 3, 1984, and l
to summarise the facts'which show that no "significant changes" i
under Section 105c(2) of the Atomic F,nergy Act or violations of permit conditions have occurred.
At the outset, we note'that the
- NRC wa'sLinformed b'y letter dated January 6, 1984~from Applicants' counsel in the. licensing proceeding that the Board of Directors i
of Gulf States Utilities Company voted on January 5, 1984 not to h
build Unit 2 of the River Bend: Station.
Load Proiections L
In Section-I.A. of its February letter, Lafayette asserts L
that a significant change has occurred with respect to the load and capacity projections of Gulf' States.
The changes in the projected-load of Gulf States do not l:
constitute a "significant change" under NRC criteria since such changes and resultant changes in reserves are clearly changes l
which are not reasonably attributable to the licensee.
(South l
Carolina Electric and Gas Co. (Virgil C. Summer Nuclear Station, I'
i Unit 1), CLI-80-28, 11 NRC 817 (1980) ).
These changes have L
resulted from the economic recessf.on and price elasticity experienced in our region and throughout the United States.
They t'
are'. entirely beyond the control of the utilities.
Moreover, the changes elleged by Lafayette in the projected load of Gulf States do not satisfy the third criterion for a "significant change" under t,he Summer decision, which requires O of WU
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2-p that antitrust implications exist which would be likely to warrant a Commission remedy.
Lafayette's allegations do not show l
any pr'edatory practice or anticompetitive conduct.
The existence of reserve capacity has no antitrust implications as such and would not, in and of itself, warrant any Commission remedy.
H Further, Lafayette has not shown that the opsration of River Ben $
Unit 1 will improve Gulf States' competitive position.
L Even with the change in projected load,.no material change has occurred in the relative reserve position of Gulf States.
L L
within the Group A portion of the Southwest Power Pool as L
evidenced by Exhibit 1 hereto.
Also, no change has occurred in LGulf States'.need for the River Bend power since it is needed as base load-power to provide a better fuel mix for an otherwise i
gas-fuel intensive (90.7%) ' utility.
The present reserve posi' tion and proposed addition of River Band generation does not change Gulf States' incentive to retain its customers.
It would be' contrary to the interest of Gulf States' customers and the public interest for Gulf States not to' compete'for and attempt to retain its customers.
Gulf States has already invested in plant in reliance upon the projected needs of the customers that Lafayette now proposes to serve.
'Although not reflected in Lafayette's letter Lafayette has unilaterally changed its reserve position by its purchase of a share of the RcJemacher coal unit.
Lafayette's attempt to exploit this change in its own position by its allegations against Gulf Scaces is without legal merit inasmuch as any such change cannot be-reasonably attributable to Gulf States.
~
Southern Companies / Middle South Companies In Sections I.B. and II.D. of its February letter Lafayette
' asserts that a significant change has also resulted from new coordination activities and power supply arrangements of Gulf States involving the southern Companies and Middle South.
We have provided documents to you which include all significant information regarding the Southern Companies and Middle South arrangements.
The amended contracts were negotiated
'?
to settle the points raised by the FERC staff and the Louisiana
~
Public Service Commission which had intervened in the FERC proceeding.
The-amendments resulted-in a reduced overall cost to Gulf Statec.
.Since the date of our last submission,.the FERC has issued-its final order (Exhibit 2 hereto) on these contracts and has considered Lafayette's complaints.
An agreement dated December 13, 1982 (previously supplied) is referrt to in the FERC order and is being reviewed in an active FE*M uocket.
It not conct.tute a coordination agreement and merely provides i
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.s That. agreement refers to a proposed coordination agreement.
Gulf 4
States-has found certain features. of the proposed agreement unacceptable and active negotiations are not even being conducted.. We believe no such agreement will be executed.
As for the agreements which have been executed and any that are hereafter executed, Lafayette has and will have its forum at
- FERC.
Gulf States did-discuss purchasing power from Lafayette, but Lafayette did not offer any long-term arrangement.
During these discussions,' Lafayette was informed that Gulf States would purchase power from them under the applicable service schedule in the Lafayette-Gulf States Interconnection Agreement if they were competitive with other-power suppliers.
Since this. meeting (Fall 1982), Lafayette has sold 231,013 HWHR of short-term power to Gulf States at a cost-of $5.8 million.
In the same time period, Gulf States.has sold 62,225 MWER to Lafayette at a cost of $1.9 million.
Transmission Service and Permit Conditions In Sections II and III of its February letter, Lafayette asserts;that Gulf States has refused to provide transmission
(
service on reasonable terms and conditions and that this constitutes a significant change.
As a corollary, Lafayette has
.i alleged that this activity constitutes a violation of conditions j
C.
in the construction permit which in turn constitutes a
.significant change.
Even if you assume that a'll of the allegations made by Lafayette were true (which we deny), they do not constitute a significant change-or a violation of our permit
,1
' conditions for the reasons summarized herein and confirmed by-the documents.that have bean supplied.
Lafayette's request must be rejected since Lafayette fails to satisfy the overriding-requirement of showing any meaningful nexus between the operation of River Bend and the alleged anticompetitive activity regarding transmission.
(Florida Power
& Light Co. (St. Lucie Plant, Unit No. 2), ALAB-665, 15 NRC 22.
(1982)).
Whatever conflicts have occurred between Lafayette an'd Gulf States in the ordinary course of competition for electric supply in the State of Louisiana, they have obviously not had any relationship to the non-operating River Bend unit.
Lafayette has provided no explanation of how bringing the River Bend unit on line will maintain Gulf States' alleged transmission monopoly.
Accordingly, the allegations do not satisfy the "(m)ost critical
. of the requirements--an explanation of how the activities under the license would create or maintain an anticompetitive situation."
(St. Lucie, supra, ALAB-665, 15 NRC at 29.)
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without-River Band the documents and information already supplied to you show a substantial increase in the competition for power supply in Louisiana and a resultant substantial increase in the e
amount of transmission service supplied by Gulf States.
These are c anges con emp a el t d by the condition imposed by the NRC'in h
t m'
Gulf States' construction permit.
The construction permit in c'ondition 2 requires that Gulf
. States enter into interconnection and coordination agreements.
Gulf: States has done this as evidenced byl the numerous interconnection agreements which have been reported in the materials already supplied to you.
These have included new interconnection agreements with-investor owned utilitiesi L.
cooperatives, municipalities, and public entities such as
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Louisiana Energy and Power Authority and the Sam Rayburn group.
In addition, the permit in condition 10 requires that Gulf l
States " facilitate the exchange of bulk power by transmission over its transmission facilities.between two or more entities engaging.in bulk power supply in its service area in Louisiana with which-it is interconnected."
The definitions in the permit.
define " bulk power" to include electric power supplied by an entity from its generating facilities.
This permit condition was negotiated'in detail with the NRC staff, the Justice Department, c, -
the' City of' Lafayette, the City of Plaquemine, and Cajun Electric Power Cooperative, Inc.
The permit further provided that all such conditions would be implemented on' reasonable terms and 4
L.
c.onditions in a manner consistent with the provisions of the Federal Power Act, and that none of the conditions would require Gulf States to perform any service on a basis which would be unlawfully preferential-or discriminatory.
All rates, charges l-L and practices were required to be. subject to the approval of-I
. regulatory agencies having jurisdiction over them.
At the time the permit.was issued, the interconnection agreement with Lafayette, including a specific transmission service schedule for bulk power exchange, was executed after submission to and review by both the NRC staff and the Justice Department.
The transmission service schedule _so negotiated was filed -with and approved by the Federal Power Commission (now FERC), and Gulf States has provided transmission service pursuant to such permit conditions and such service schedule to Lafayette L
for exchanges of bulk power as reflected in the information already provided to you.
Lafayette has not in fact complained about a refusal to-supply such transmission service except for a brief reference in Section II.B.1 of its letter to a proposed sale by it to municipalities in Mississippi.
In that instance, as the documents reflect, Gulf States encountered delays in negotiating.an interconnection with Mississippi Power & Light Co., an intervening system, but even so did provide service on an L
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5-b interim basis and has offered transmission service for bu1P
.eer exchanges to Lafayette since thu M?sL agreement was consumrao::d.
Inasmuch as Gulf States has complied with the permit conditions for facilitating the exchange of bulk power by transmission over its transmission facilities, there have been no "significant
{
. changes"Lin these activities, a.
The complaints asserted by Lafayette in its petition relating t6 Plaquemine, Abbevillq, St. Martinville, and New Roads are all based upon a new interpretation by Lafayette of our long-standing transmission service schedule that provides for bulk power exchanges.
Lafayette now asserts that such schedule should also cover transmission services for full service requirement transactions as well.
The only real issue is which service h'/
schedule should-be used.- This at most is a contract dispute
~
within FERC jurisdiction and is not a ?significant change" under Section 105 (c) (2) or a matter within the NRC's jurisdiction.
The Commission has previously held that rates, charges or' practices related to service contracts should be decided by FERC.
p (Toledn Edison Company, (Davis Besse Nuclear Power Station, Units 1, 2 6 3), ALAB-560,10 NRC 265,' 282 (1979)).
If Gulf States did not require that the provisions of its service sche.dules be met, it could be accused of providing preferential t
or discriminatory service.
As'the' documents supplied to you substantiate, Gulf States has gone well beyond the requirement of the construction permit and has offered and is providing transmission service for
' purposes-other than bulk power exchange.'
Service schedules for t
transmission service to accommodate full service requirement
^
transactions have been entered into and transactions consummated for years under agreements with CEPCO and lhun Rayburn.
- Further, the company entered into interconnection and transmission arrangements with LEPA which provide such transmission service.
Gulf States is presently providing-this type of transmission service to LEDA to accommodate the sale of Lafayette's power to Plaquemine and New Roads.
Any members of LEPA are eligible for
~
such serivce, including St. Martinville-and Abbeville.
i LEPA was formed by municipalities in Louisiana to provide f.or a central coordination.of its members' power.
Lafayette was a charter member.
Gulf States entered into the arrangements with LEPA with the understanding that all of its members, including Lafayette, would support the operation of LEPA and that statewide transactions could be coordinated through LEPA.
Gulf States was at that time and is still concerned that, without further experience, if a wide range of transmission services was offered to individual cities, the random, uncoordinated transactions could expose the Gulf States' system to operational and control problems.
In anticioation that LEPA would have the ability to m~nwm maamccmamemrzc r w m = mm a
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coordinate, transactions and thereby minimize the operational and i
technical difficulties, Gulf States agreed to provide it various types-of' transmission services, including that for full service
' transactions.
(See LEPA Interconnection Agreement).
For reasons of its own, Lafayette now does not wish to coordinate its transactions through-LEPA.
t Gulf States did conduct negotiations with Abbeville and q
entered.into a ten-year contract (copy previously supplied) for power supply to Abbeville which may be cancelled in four years.
l The contract was filed with FERC and Abbeville was expressly requested by letter to submit to FERC for consideration any anticompetitive charges it had with respect to the transa'etion c,
L'
'and to confirm whether or not it had repudiated the contract.
L Even though it chose to write certain letters which have been L'
submitted to you, it declined to make complaint to FERC and l
instead filed a motion to intervene and requested that FERC H
accept the contract as filed.
Instead of pursuing its complaints in the appropriate FERC proceeding, Lafayette filed a motion to intervene but did not request a hearing on any issue.
FERC l
accepted the interventions of both cities and accepted the contract as filed.
After signing the new power supply agreement with GSU, Abbeville voted to become a member of LEPA.
As a H,,
member of LEPA, Abbeville is eligible for transmission service under the LEPA agreement, but no such service has been. requested.
L Gulf States has also been negotiating to keep St,'Hartinville j
as a customer.- At-St. Martinville's request, Gulf States L-submitted proposals (i) to extend the present wholesale contract for one year at a new FERC approved rate and -(ii) to enter into a ten-year contract which may be cancelled in four years, both of l,
which proposals are subject to approval of terms by the FERC.
L
' Alternatively.and contrary to Lafayette's assertion, Gulf States
.l L
publicly offered to provide transmission service under the LEPA l
agreement-for a sale of Lafayette-power to St. Martinville.
St.
L Martinville also solicited a proposal from LEPA and has indicated l
an intent to accept LEPA's proposal, with wheeling by Gulf States, commencing in 1985.
L L
An interconnection agreement has been entered into with New l
Roads and transmission service is being provided by Gulf States.
L'-
Arguments over billing under the' applicable schedules is L
certainly not a significant change nor a matter requiring review L
by the NRC or within its jurisdiction.
l l
From the information supplied to you, it is clear that no significant changes cegnizable under NRC criteria have, occurred and no viointion of construction permit conditions has been shown.
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i If you consider it necessary or useful, we will meet with you
- and representatives of' Lafayette at your convenience.
o sincerely, e-
- -M
. J. Cahill, r.
Senior Vice President
- River Bend Nuclear Group.
8 /BHH WY/kt Attachments l
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M YEAR
% RES (1)
% RES (2)
% RES (3)
YEAR
% RES (1) %RES(2)
'1 RES (3)
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1984 31.6 32.5 21.1 M
1975 22.9 s
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1976 20.4 27.7-43.1 1985 39.2 45.3 27.8 g
ij 1977 IS.2 19.0 31.4 1986 38.1 48.2 46.5' e
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d 1978 17.5 17.2 20.0 1987' 34.3 42.7 y
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1979 16.6 17.7 22.4 1988 30.6 38.6 41.4 r;
1980 18.9 17.6 2'1.8 1989-27.4 33.1 37.3 i
2 hj 1981 16.3 16.5 14.2 1990 27.3 32.8 35.1 D
t,j 1982 19.9 17.0 18.7 1991 25.7 28.6 33.1
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J ci 1983 19.4 19.1 12.1 1992 22.1 22.1 19.5
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1984 17.9 16.8 15.5 1993 22.7 22.3 17.7 A
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(1) Estimate contained in SWPP report dated (1) Estimate contained in SWPP report da'ted
)
4-1-75 under FPC Order 383-3.
4-1-84~under DOE Order EP-411.
y:
N (2) Group A members of SWPP were:
~
(2) Group A members of SWPP are:
Arkans'as Electric Coop.
N Central Louisiana 21ectric Company Cajun Electric Power Coop.-
Gulf States Utilities Co.
Central Louisiana Electric Company ~
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Middle South Gulf States Utilities Company City of Lafayette p(
(3) Last estimate filed with NRC dated 2-75.
Middle South-Estimate was made based upon projected inservice-date for River Bend 1 of 9-1-80.
(3) Latest GSU estimate as of 4-1-84 b'ased s
il upon River Bend 1 projected inservice L!
date of 12-1-85.
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- setore Commiseloneres maymond J. o*Connor, Chatrena Onctet peo. Ra82-579-908 ]
i ri coorgiana Sheldon,J. Devid steghes, t
i A. c. somes and Ottver C. alcenard IIf.
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- prior to the complettee of the tetorconnection between steC and i
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csw. The rates ender thl9 contract are the same se ender Schedete l2 Southern Company services, sac.
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Encket see. Eas2-519-#00 E.
staff filed commente supporting the offer of settleneet.
The City.of Lafayette, Leelstaan (Lafayettal oppeees it. J/
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h caota apperwtas Csurtestro SETTLesetset.
to its commente. Lafayette comptstas that the settlement 9
elgafficantly modiftee and esponde the ortgtently filed agreemente 3
ite6eed March 23, 1904) yet it conteses no *sepporttag date, leformattom er joettfleetten*
'3 for those changes.. to addittee, Lafayette bellowes that the four-y agreements are poteettally prefereettal, disertelmotory and f
This case began olth the fittag of two agreements toween Swif anticompetitive to too respecto. First, teney create a preference States Utilittee Company scsel and seethern Compear Services, for Soethere compenlee se a seller of power and teed to create '
W tae., Atobama Power Compeay, calf power Company med setestostppt barriers to sales by lower ooet esppiters In the area. sect me Power Company togrCitcollecttwely the Southern Companteel and one Lafayette. Second, they provide for traeesteelen gerelce to cgest
}
more =ent between Cse and neC. The first too contracts are a at favorable rates which may not be evettehle to ottiere. Leferette l
forther clates that it to e.ttts.d to se.e,1.a.tton or the q
valt rower s.t.e A,r.eeems which proved.e for th. nat. of a ecomenic coneesteences of the $88tv tete _ _
- tiese end the tevee Q
st.ect fled amount of capacity and energy free Southern Compentes s
to CSU and an laterchaage Agreement which estabitehes rates and ender ehteen other etttttles etti be provided eccess to it.
Fla81I, Lafayette feette the dettlement for fat flag to laclode a N
terne for interchange services between CSS and Soethern COmpselee.The F
j third contract - a Traammisalon reci t ttlee Wee Agreeeemt - calle separate but related agreee. eat lavetelag the porttee to the feer d
for the construction by fePC of SeetV factittles to estabitch as agreemente at Resee here. yhte rotated agreeneet, esecoted on laterconnectlan between 8erc and cssa.
secember 13,19e2. Se, accordlag te Lafayette,' a comedlootten 3
commitment ehleh esteeld be flied to thte doctet and serettelsed s
Southars Campaelee end CSO negottated a settlement agreement along with ttels settlement.
which was filed as a formet of fer of settlement on Docentier 4, kt iset. 1/ The settlement madt flee att three agreemente by redectng Alternattwely, Lafayette states that Ste latereste ces be -
M t8se reEra on common egetty esed to compete the rates. The unit satisfied if four coseditione are attached to any Cemaleelee Power salat Agreggeat was meendest to FedeCe the matt power CapecitF approval of thle settlement. These condittens would regelte i
to be sold but allow for tecreases to those ea?es in the evoet temat il Lorayette he prowlded access to the See tv tetorceanecties ft that Ctes's a,otded costs of ot t and gas-fired energy are greater f acilittee on terms that are reseenable esed ese-Atocrietantarys j
than the avere.te compoette cost of perchases free SoutInero
- 2) Lafayette be lawlted to partletpete in the developneet of tene j
Compantes. The laterchange Agreeeemt was modt tied and see factedes coordinetton comaltseemts 33 Lafayette be provided transetenton y
schedule t weitch proeldes for long-tere capecsty and energy estee by southere Coupeales to c5e as well as a restaten to the rates s
to be appite t to sales under scenedete E.
seethern Compentes and csu esecutet a foerth contract - an laterte imag Tere power sales trootnote 1 coattamed free'preetoes page.,)
Agreement - whican prowldes for sales o f power darlseg the ported J / opposee St.
The eststence or Bach of a genetae tsae= of q
matertet fact le retement to a deteretmettee of whether e a
p contested offer of settlement eey lie certleted to the ai Commteston onder awle se2thittitill of the Co==leston's i
owlee of proctice and procedere. te C.r.o.
taeathstatteit.
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The jv.tge cert e fled thte set tlement to the Comatostos se me ~
1stace we agree with the judge tinat there to ao gemelme imme,-
l e=c.>atesta.t of fer of settlement based on his glading that of asterial fact, thle settlement tg ptaperty hetnee ee.
j t.a f >yet te's comments raised no genetae lesses of estertal T
rect.
soo-ever, thle settlement to conteste e becawee La fayette
_2f Laf ayette, which owas e evaletpet electric eystaa. to ant only a costomer et Cses, het also a campetitor of cste and the eth.c s
ettlttias la the region. Lafayette in soltt"3 escess capacit y s
tronenate I centtaued on mest pa.2e.
to some systeme in thle regloe.
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functae eso. r=82-U9-See beste for 5
The mere poteettet for preference le est a eef fleteetIf, to the fetwee, f.af ayette i
cerence on saethera rampantes* erstee en just and ressanatste disappreetag a pweer sales contract.
- e. rial. Se ee9y to certale tesored esotesere.
egeme la tane eneytag etitity*g rate case esenere f a t,efeyette hoe set owes alleged tInst St er any etener ett8 tty hee prapasty ma It only eBalee tenet secte to pass the costo of gee perchased power en to its rete-heee doeted attese services at the same rete.
[t If had venee cses esame a rate f 8Sieg reflecting its St e8 gent roguest each eere8ce. gesnoop4 g.afayette's espdctat tees payers. _}/
es thte caste mader as6ese contracte, may saterested party eey f atervene eene to pees, it may (Ste se appropriate eempta6at.
e
@4 med chal taa se those costo. - 4/ so addittee, Lafayette sAses est metter aos et maa, there se me herie and, therefore, me sneed for a thae eso ha. se.e.eed ete.*, poechaser.. se oesy er,eee j
remedy.
a
.e there any be atener suppliero capable et meet tag csoe's needs.
that ese forther disageoe with f.aforette thet t48e eettlement 1
meet he evaleeted together epith the pocaster 13, See2 moreeneet.
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Fawth*'.a ff==g*ang tev elces tec.. *neder accept f ag ret gr$$$eg That agreeeeet bee heen (Sled etth the comelmetoe and tofaget te tales agre aeats, creneBe==p tacerveatloas and Cae talee a#F ehjectlene to St $st any eseceedlang levateleg tenet J
ssant Pawar esas.or af seat tee, and enemylag er.pregte for eejection and mereeeesit. J/ seerseeer. while the settlemoet agressenes are p
warla3. 2e nec ut.itz t15e23.
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3 4/ sf she c%ese sea pas =#ee ews throwgh the feet estjenteemt clowee.
7 they aay ateo he challanged les a cuymptatet proceedtag.
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'Atteebeemt Attechsent Docket No. E1t03 51g.e0e d
page t'ef 2 Rage 2 of.
g Ceerste poser Compeer nS 9
Southere Compeer Serelces. lat.
- 12. Suppleasat me. I to Bote Schedule Aseement as. I to 6388:
sectet Iso. 1982 579 000 4
tate Sciedele Destgaattens ___
Flac 80s. 812 Baterdenge Centract -
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- 13. Supplement me. I to Bete Scheeste manoel(CatttttC) 8888' S
Bescriptlen_
Sete Etfactlee FEaC Be. 812 9
5 cestgaatten~
- 34. Supplement me. 3 to asta Schedule Service Schedste t 4 1 04 if FEAC Re. 812
- Long Teen poser jj Southern Company Serettes. Var.
- 15. Supplanest as. 4 to Rete Schedule Interte tong Team 3 3.e4 a
F FEAC as. 882 poser Centract d
Amenteemt No. I to 6144 J
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Sepplement no. 5 to mate Schedule Interchenge Centract
- 36. Supplemenet me. I to Rete Schedule Amendment A 2 to -
6384-riac no. 59 FERC Its. 813 t.>tt pouer Sales
- 3 2.
Sepplement me. 6 to Rate Schedule teenset p tbit C) 6184 t
Self power Caspear A
ttRC no. 51 d
Depersedes Supplement no. 4)
Serelce Schedule C 6.l.84 1F. Supplement me. I to Rete Schedste Amee erst so. I to 6884 i
3.
Sepple. cat me. F to este Schedule teng Tere power FERC No. 76 Batercheage Centract f(aC me. 59 5
laterte tong Tere 1184
- 18. Supplement as. 2 to Sete Schedole steasel s.t.gs h
4.
5.ppseeemt me. s to sate Schedste staC No. 59
"er Centreet FEaC me. 76.
Asead'est see. 2 to 8 1 84 1g. Supplement me. 3 te Esta Schedele Service Schedule E 4188' 5.
Sepple= eat no. 3 to sate Schedete mit remer Sales Flac me.,76..
Long Teen power ffaC me. 60 Agreemret
- 29. Sepplement as. 4 to Bete Schedste lateets teng Teve 3 1.e4
._o..e_r_Cen.tr.a.c.t pw i
FEaC Re. 76.
- 3 6.;r stotes utttttles Coupeay g
Amene= eat me. I te 6184 214 Supplement Be.1 to Rete Scheeste Amesheet me. I to -
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Seppleseat me. F to este schedule setercheese Centract FEaC no. 77.
gett reser Sales f
stac no. 135 agreement
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Alabams power Company _
fitssesstppt poner Caripeep SpeaO' eat N8. I t#
O*I-II 3 terchange teatract
- 22. Sopplement me. 3 te mate schedule Amee eeet as. I to 4184 l
3 7.
Sepelencat no. ] to Sale ScheduIt d
itec no. 158 TEaC A 135.
Treesetssten Factiftfes
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Serplencat no. 2 to sate Schedule ptaneet(EnhibitC) 4184 Agreement 0
FENC Re. 158
- 23. Sepplement me. I to sete schedule Amendmeet me. I to 6184
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Sepptenent me. 3 to Rate Schedole Seresca khedule E 6 1 84 TERC pe.135..
Intercheoge Centreet j
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F(RC No. 151
- 28. Sepplement me. 2 to Rate Schedule stoneel g.g.gg
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- 10. Sepple. cat no,' 4 to mate Schedule Interte Long Tere 1.I.84 Flac so. 135.
power Contract 6184.
frac me. 158
- 25. Supplement No. 3 to mate Schedule Seretce Schedule E-t
' haenement me. I to 4 1 84 TERC no. 135 tong Tere power I
- 11. Serple. cat me. I to mate Senedele
- It 'ever Sales flaC no. 159
- 24. Sepplement me. 4 to tate Schedule laterte Lea, Teen 1 1.e4 -
Agreeoest FlaC No. 136.
power Centract li
- 27. Seppi,eeest me. I to mate Schedule Amendment me. 2 to 4184 k
3' FlaC. No-137.
gnit power Sales 3;
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APPENDIX F e
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- DRAFT DATED JUNE'16, 1984
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POWER DELIVERY AGREEMENT
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BEWEEN
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PO*iER DELIVERY AGREEMENT 1
E TABLE OF CONTENTS i
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ARTICLE I TERH AND PURPDSE
+;
Of AGREEMENT, QUAL,ITYING CUSTOMER------------- ---------
1
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Section 1.1.--Term------- ---- - ---- --------------------------- 1
'Q,e" D3f Section 1.2 - Purpose--------- --------- ----------------------- 1 Y,)
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Section 1.3 - Qualifying Customer-----------------------------,--
2
~T ARTICLE II - CUSTOMER INFORMATION SUPPLIER, LOSSES--- --------------- 4 8
nf.[_
Section.2.1 - Customer Information--- ---------- --------------- 4 l
jY Section 2.2 - Supplier-------------------------------------------
4 i
Section 2.3 - Losses-------------------------------------------.- -5 ARTICLE III - POINT OF DELIVERY AND LOCATION--------- --------------- 5 Section 3.1 - Point of Delivery----------------------------------
5 Section 3.2 - Location-------- ---------------------------------- 5 v.
ARTICLE IV - SERVICE AND RATE SCHEDULES, POWER SUPPLY DEFICIENCIES--- ------ --------------
e----------
6 1
p
. Sec tion 4.1. - Service and Rat e S.chedulas-------------------------
6 Section 4s2 - Power Supply Deficiencies--------------------------
9 i
ARTICLE V - METERING AND CUSTOMER CONTROL AREA-----------------------
10 Section-5.1 - Metering -------- a--------------------------------
10 Section 5.2 - Telemetering and Communications------ ------------- 11 Section 5.3 - Customer Control Area------------------- -------- - 12 Section 5.4 - Taxes and Other Governmental' Charges---------------
12 ARTICLE VI - DEFAULT-------------------------------------------------
13 Section 6.1 - Defealt-- ---------------------------------.-----.-
13 ARTICLE VII - UNCONTROLLABLE FORCE AND INTERRUPTIONS OF SERVICE--------------
-- --------.---- 1:
Section 7.1 Uncontrollable Force, and Interruptions of Service-------- -------------- - le I
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... ARTI CLE VI II - LI AB ILITY---- -----
l--- - ---- -- - --- - - - -
- -- - - - - 19 A
Section 8.1 - Liability-- --------- - --- ----- - -- --- -------- 19
- ARTICLE IX - FRANCHISES, RIGHTS-OF-WAYS, PERMITS, E,TC. -------------- 21.
Section 9.1 - Franchises, Rights of-Ways, Permits, i
Ete,-- ------------- ---- -.---------.--- -- ----- 21 i
ARTICLE X. REGULATORY APPROVAL--------- ---------------------------- 21 i
l Section'10.1 - Regulatory, Approval ------------------------------ 21 ARTICLE XI - SUCCESSORS AND ASSIGNS------------------
22 Section 11.1 - Successors and. Assigns---------------------------- 22 ARTICLE XII - PRIOR, 4GREEMENTS - ---------------------------- -------- 2 2 l
Section 12.1 - Prior Agreements------ ------- ------ --------- -- 22 ARTI C LE X I I I - EXE CUTI ON - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 3 l
Section 13.1 -
Execution-----------------------------------------
23 ARTI C LE X IV - NOTI CE - - - - - - - -,- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 2 Section 14.1 - Notice-----------------------------------
22
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L ARTICLE XV - APPROVALS-------------- -------------------------------- 24 i
SERVICE AND RATE SCHEDULES l
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