ML20064G401
| ML20064G401 | |
| Person / Time | |
|---|---|
| Site: | Waterford  |
| Issue date: | 12/05/1978 |
| From: | Aswell D LOUISIANA POWER & LIGHT CO. |
| To: | Toalston A Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 7812110155 | |
| Download: ML20064G401 (136) | |
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l 0UISIANA f,42 ccancNee sraesr POWE A & L1G HT/ p o Box 60C8
- NEW CALEANS. LOUISIANA 70174 (504) 366-2345
' MYs EsYt0 December 5,1978 d
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Vce h -bec Ncten LPL 10195 Q-3-A29 Mr. Argil Toalston, Chief Power Supply Analysis Section Antitrust & Ind enity Group Nuclear Reactor Regulation U. S. Nuclear Regulatory Cocraission
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Washington, D. C.
20535
SUBJECT:
Waterford 3 Responses to Request for Additional Antitrust Infomation
Dear Mr. Toalston:
We have reviewed your letter of October 31, 1978 requesting additional information for the Waterford 3 Operating License Antitrust Review.
Attached are our responses to those requests.
If you have any further questions regarding this submittal, please advise.
l Yours very truly, D. L. Aswell DIA:RWP:kat Attachment
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cc:
E. Blake M. Stevenson
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RESPONSES TO REQUESTS MR ADDITIONAL INFORMATION MR THE WATERFORD 3 OPERATIONAL LICENSE ANTITRUST
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REVIEW N
DOCKET NO. 50-382 i
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1.
Has the City of Plaquemine requested any services from LP&L other than under its Emergency Assistance Agreement (FERC 44)? If so, please describe the services requested, LP&L's response, and the reasons for such a response. Has the City of Plaquemine taken any position with respect to the reserve requirement provision (article XI) of the Emer-gency Assistance Agreement? If so, please describe Plaquemine's position and LP&L's position.
ANSWER The City of Plaquemine has not requested any service from LP&L other than under its Emergency Assistance Agreement (FERC #44).
However, in August, 1978 LP&L and Plaquemine came to an agreement on LP&L's willingness and possible purchase of power from the City of Plaquemine during the summers of 1978,1979 and 1980.
When the Emergency Assistance Agreement dated April 13, 1971, was filed with the FPC, the City of Plaquemine's attorney took issue with Article XI of the Emergency Assistance Agreement, but after a preliminary hearing before FPC staff members with Plaquemine's attorney and a representative of LP&L, an understanding of the Article was reached and the complaint was withdrawn and FPC accepted it for filing.
About May 10, 1976, the City of Plaquemine discontinued the utilization of the Emergency Assistance Agreement with LP&L by physically disconnect-ing the interconnection facilities. The City then switched over to Gulf States Utilities Company which had, as of that date, completed facilities for a tie with the City. No service has been rendered through LP&L's facilities since that time even though the Emergency Assistance Agreement is still in effect and LP&L's facilities are still in place.
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2.
Has Cajun Electric Power Cooperative, Inc. requested any services from LP&L other than under its Wholesale Service Schedule REA-8A? If so, please describe the services requested, LP&L's response, and the reason for such a response. Has Cajun contested any of the provisions or require-ments of REA-8A? If so, please describe Cajun's position and LP&L's position.
ANSWER Cajun has requested addition ' services from LP&L other than LP&L wholesale service Schedule REA-8A. Cajun is presently purchasing wholesale power under Rate Schedule REA-8A for its member cooperatives at 56 delivery points from LP&L. Cajun has in operation a 230 MW gas fired generating station that provides service to Cajun's member distribution cooperativeg.
on the Gulf States system.
It has under construction two 540 MW coal fitfd units scheduled for operation in 1979 and 1980. These units are required to supply power to Cajun's members when existing purchase power agreements terminate in May 1980 with Central Louisiana Electric Company and LP&L.
Cajun has served notice to LP&L of its intention to cancel the existing
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Agreements with LP&L covering service under Schedule REA-8A.
Cajun is now constructing a control center with communications and telemetering facili-ties to its delivery points from LP&L. To replace the cancelled Agreements for service under Schedule REA-8A, Cajun requested an interconnection agree-ment, and LP&L and Cajun executed an Electric System Interconnection Agree-ment on May 25, 1976, making available five service schedules to Cajun.
These are Emergency Assistance, Supplemsntal Power, Surplus Power, Economy Energy, and Transmission Service.
This Interconnection Agreement was approved by the U. S. Department of Agriculture, Rural Electrification Administration, on August 17, 1977. The Agreement was filed with the Federal Energy Regulatory Commission on October 19, 1978. This Agreement is a result of aum-length negotiations started in 1969 between LP&L and Louisiana Electric Cooperative, Inc., predecessor of Cajun.
Cajun has not contested any of the provisions or requirements of Schedule REA-8A.
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3.
Has the City of Minden or the Town of Vidalia requested any services from LP&L other than under Electric Services Agreements (FERC 52 and FERC 53)? If so, please describe the electric services requested, LP&L's response, and the reasons for such response. Has the City or Town contested any provisions of the Service Agreements? If so, please describe the positions of the City or Town and LP&L, respectively.
ANSWER The City of Minden has requested service from LP&L other than under FERC #52, in protracted negotiations extending from April,1971 to March, 1975. During that period, Minden requested an interconnection agreement, and LP&L and Minden entered into such an agreement. However before it was baplanented, Minden requested other power supply arrange-ments, which request was P21 filled by consunmation of FERC #52. Also, in January,1977 the City of Minden requested LP&L and others to submit a proposal for an agreement to operate the City's system. LP&L complied with that request, but the electorate of the City rejected the proposal in an election held on May 13, 1978.
The Town of Vidalia has not requested any services from LP&L other than under Electric Service Agreement FERC #53.
Neither the City of Minden nor the Town of Vidalia has contested any provisions of the Service Agreements.
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3 4.
In the information you have furnished, you have listed the Towns of Rayville, Jonesboro, Homer and Lake Providence as new wholesale custocers of LP&L. What were the power supply sources for these towns just prior to when LP&L began to furnish wholesale service?
Was there any organized opposition to LP&L furnishing such wholesale service? If so, please describe. Are there presently any other suppliers of wholesale service to these towns? If so, please indicate the approximate proportions of the various suppliers.
ANSWER The sole source of power utilized by the Towns of Rayville, Jonesboro, Homer, and Lake Providence prior to the tbne LP&L began to furnish wholesale service was from self-generation by each town.
There was no organized opposition to LP&L furnishing wholesale service to any of these towns.
Wholesale service is available to these towns from other suppliers, such as their neighboring municipalities of Ruston, Lafayette, and others, as has been demonstrated by the fact that the Town of Jonesboro is buying wholesale service from the City of Lafayette, and this service is being transmitted over a portion of LP&L's transmission system pur-suant to the interconnection agreement with the Town of Jonesboro. LP&L does not know the proportions of power supplied by others.
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5.
Has LP&L declined to furnish wholesale service to any Entity that requested such service? If so, please describe the circumstances and LP&L's position.
ANSWER LP&L has not declined to furnish wholesale service to any Entity that requested it.
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6.
Has LP&L declined to furnish a different kind of service than it is now furnishing to any Entity that requested such service?
If so, please describe the service requested and the reasons for refusing.
ANSWER LP&L has not declined to furnish a different kind of service than it is now furnishing to any Entity that requested such service, f
7.
You have indicated that LP&L is presently operating the electric systems of the towns of Homer and Lake Providence and the City of Thibodaux with an option of ultimate acquisition. Was there any organized opposition to LP&L operating the systems or to the option of ultimate acquisitions? If so, please describe. Please describe the acquisition option. Who, other than LP&L, will have a say re-garding the acquisitions?
ANSWER LP&L is operating the systems of the Towns of Homer, Lake Providence, and the City of Thibodaux with an option of ultimate acquisition on t
the basis of a formal proposal made to each of these mur.icipalities wherein an election was held and the citizens voted to enter into the operating agreement with an option to acquire. The only opposition was by those who voted against the proposed operating agreements.
The vote in Homer was approximately 2-to-1 in favor of the proposition, the vote in Lake Providence was 4-to-1, and the vote in Thibodaux was 5-to-1 in favor of entering into the operating agreement with an ultimate option to acquire.
The acquisition option is dependant upon the performance by LP&L of the commitments specified in the Operating Agreement, and the option to the Company to take title to the facilities at the end of the Operating Agreement arises when and if all obligations under the Operating Agreement have been fulfilled.
Nobody other than LP&L will "have a say" regarding the acquisition (other than SEC approval when LP&L fulfills its obligations under the Operating Agreement).
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l-8.
You have indicated that LP&L is presently operating the electric system of the City of Monroe under an Emergency Interim Agreement.
Please describe the nature of the emergency and the reason why Monroe was not able to operate its own system. Why did Monroe choose LP&L to operate its system? If in writing, please furnish a copy of the interim agreement.
If not in writing, please describe.
Was there any organized opposition to the interim agreement? If so, please discuss. What is the duration of the interim agreement? Will Monroe resume operation of its system after termination of the interim agreement? If not, what alternatives are being considered?
ANSWER LP&L is presently operating the electric system of the City of Monroe under an Emergency Interim Agreement.
This agreenent came about as 1
a result of the City's deteriorated position in the operation of its system while the Company was awaiting approval of the SEC for an operating agreement which had been presented to the City and voted
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on in an election held for that purpose and approved by the citizens of the City by a ratio of approximately 7-to-1 to enter into the Operating Agreement. After the overwhelming election in favor of the Operating Agreement, essentially all of Monroe's distribution personnel walked off the job and left the City without personnel to operate its s ys tem.
The City also had a very unstable and undependable fuel supply, and since the citizens had voted overwhelmingly to enter into the Opera-ting Agreement and ultimate ownership agreement with LP&L, the City insisted that LP&L consnence operating the system inanediately and assume the responsibility of the operations as though the final Operating Agreement was in effect. Since there was pending SEC approval for the Operating Agreement, the interim arrangement was entered into, and will continue in effect until such time as approval has been granted by the SEC for the final effectuation of the Operating Agreement.
(Copy of the Emergency Interim Agreement is included as Attachment I.)
There was no opposition to the Emergency Interim Agreement.
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be superseded by the Operating Agreement, and Monroe thus will not resume operation of its system after termination of the interim agree-ment.
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9.
The following questions pertain to the Middle South Utilities (MSU)
System Agreement (FERC #48), and in particular, to paragraph 30.03, of Service Schedule MSS-3, on allocation of energy.
(a) In determining a Company's load, are the transmission losses within its control area considered to make up part of that load?
ANSWER Yes, they are.
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(b) If a Participation Unit is in Company A's control area, is Company A compensated for the extra transmission losses occurring within its control area as caused by power deliveries to the other companies?
If so, how is it compensated and how is the proper amount of compen-sation determined?
(Please illustrate the procedure by assuming a single Participation Unit supplying the power requirements of all the MSU operating subsidiaries.)
ANSWER A company receives compensation when it shows losses.
This question cannot be specifically answered at this time because no circumstance such as described in the question has yet occurred. If such circum-stance does occur in the future, a procedure will be developed, i
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10.
The following questions pertain to LP&L's interconnection agreement with the City of Ruston (EIRC 54) and similar interconnection agree-ments with the Town of Rayville, Town of Jonesboro, and City of Monroe.
(a) The October 1,1975 transmittal letter to FPC frou W. C. Montgomery refers to an Exhibit 1 attachment which shows the courponents of the four mills per kwh markup for energy furnished under Schedules A, B and C.
If available, would you please furnish us with a copy of this Exhibit 1 for our records?
ANSWER Attached (Attachment II) is a copy of the letter dated October 1, 1975, to the Federal Power Commission, Attention Mr. Kenneth F.
Plumb, Secretary frc:a W. C. Montgomery, Re: " Louisiana Power &
Light Company Interconnection Agreement with City of Ruston, Loutri-ana," with the attached Exhibits No.1 and No. 2.
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(b) Our review of Exhibit 1, in FERC's Public Doctanent Room, indicates that the four-mill adder per kwh is associated with fixed charges on production and transmission facilities. At the same time, Schedules B and C have demand charges which are presumably also based on fixed charges on production facilities. Please clarify for us this apparent double charge. Did the FPC Staff or Intervenor in FPC Docker ER 76-162 contest in any way the four-mills per kwh adder, particularly for Schedules B and C7 If so, please discuss the nature of the objections and the resolution of such.
ANSWER Also attached (Attachment III) is a letter to the Federal Power Comunission, Mr. K. F. Plumb, Secretary, from Mr. W. C. Montgomery dated March 29, 1976, Re: " Louisiana Power & Light Company, Inter-connection Ager.ement with City of Ruston, Louisiana, (Docket No. ER 76-162)," along with Exhibits 6, 7, 8, 9, 10 and 11.
The four-mill adder, explained completely in the letter of March 29, will clarify f
that there cannot be and there are not any double charges. The FPC requested additional data to verify the various charges, which was provided in the letter dated March 29, 1976. The four-mill kwh adder was not separately contested. After interventions and hearings, FPC issued an order entitled, " Order Granting Permission to Withdrast' dated Septanber 28, 1976, granting permission for the Intervenor to withdraw from this proceeding and terminate Docket ER 76-162. The Commission stated, "All questions of staff with respect to this filing now have been resolved satisfactorily, and there remains tra issue in dispute".
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(c) Some of the doc.imentation associated with Docket ER 76-162 alludes to FPC Staff concerns with respect to the interconnection agreenent.
In particular, pages 4 and 5 of the conference transcript is referred to.
Please describe the nature of the EPC Staff problems, the names of the FPC Staff involved, and the resolution of these problems.
ANSWER Also attached s' Attachment IV) are Pages 4, 5 and 9 of the pre-hearing conference in Docket ER 76-162 held at Washington, D. C. May 18, 1976, and a copy of the order in Docket No. ER 76-162 entitled, " Order Granting Permission to Withdraw" (Issued September 28, 1976). Apparently, this question concerns the answer of Staff Counsel, M3. Nygaard, "Therefore, as far as we are concerned, the only remaining issues deal with the rationale for the pricing of denand charges in, I believe, Schedules B and C, and, again, possibly the raticnale behind the four-mill adder appearing in some of these schedules."
Turning to Page 9 of the same transcript, Ms. Nygaard, states, "Your Honor, we feel we have sufficient data, and we're really not conten-plating a Data Request. since the responses to the various Deficiency Letters satisfied the questions in those Letters."
"A separate question, again, is whether once you have those answers the rationale implicit in those numbers is acceptable, and that's if you feel that's necessary, or otherwise get together on it."
The attached (Attachment V) order issued September 28, 1976, states, "On September 2,1976, the Presiding Administrative Law Judge issued an order granting Commission Staff's motion to terminate the proceeding inasmuch as 'all questions of Staff with respect to the filing now have been resolved satisfactorily, and there renains no issue in dispute."
The Presiding Judge's order took note of the July 12 Notice of Withdrawal of EPSA. Consistent therewith and in light of the above, Docket No.
ER 76-162 is hereby terninated."
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(d) Please furnish the total kwh sales to each City or town and the range of monthly energy charges (denand charges excluded or separated) in mills per kwh under each Service Schedule A, B, C and D, respectively, for the period of time from when the agreements were put into effect until the most recent time that the information is available. Please furnish the same information for purchases (if any) from the cities or towns.
ANSWER Billings to Municipals under Schedules A, B, C and D (The exclusion of billing months, schedules and municipal name indicates that there were none for that period)
Billing Billing Under Billing Under Municipal Month Schedule A Schedule D 1977 KWH Mills per KRH KRH Mills per KWH city of Monroe July 1,916,000 34.963205 August 2,180,000 31.767885 S eptember 1,428,000 29.10666 October 592,000 36.11098 November 9,153,000 16.488258 December 22,908,000 18.7050083 1978 January 24,146,000 23.05877 February 25,015,000 29.2355074 March 22,430,000 23.8669005 April 23,746,000 18.0217603 May 536,365 18.0217603 i
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Billing Billing Under Billing Under Municipal Month Schedule A Schedule D 1976 KWH Mills per KWH KWH Mills per KWH Town of Rayville October 190,400 20.362973 1977 January 5,600 21.61071 April 36,400 25.4522 May 2,800 33.167857 June 221,200 30.67455 July 30,800 32.14188 August 23,600 45.178 September 365,200 28.4612 October 224,000 35.437143 November 2,262,400 17.526454 December 2,301,600 18.821446 1978 January 2,150,400 22.809184 February 2,312,800 29.525277 March 2,032,800 24.138223 April 1,881,600 18.5224065 July 19,600 59.36 S eptember 338,800 41.4332645 October 8,400 54.604762 1976 City of Ruston July 20,000 15.8385 August 52,000 14.09 September 107,000 14.9315 1977 May 139,000 30.713957 June 130,000 38.91846 July 149,000 46.50 October 12,000 64.61 November 143,000 45.76 December 45,000 31.17 1978 September 19,000 42.00..
Billings to LP&L by Municipals Billing Municipals Month Billing to LP&L 1.92Z M
Mills per M City of Monroe April 12,000 28.50 1977 Town of Rayville October 18,000 28.2961 1977 City of Ruston January 3,453,000 35.193797 1978 January 3,892,000 46.189543 February 1,945,000 46.355656 March 1,309,000 46.94916 April 13,000 44.10 May 2,304,000 44.499305 June 9,567,000 44.10 July 6,286,000 43.971969
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(e) Is the Lafayette to Jonesboro transmission service under Schedule F or F-I? How long has LP&L been providing such transmission service to Jonesboro? Is Jonesboro internal or external to LP&L's control area? Have the participants experienced any difficulty in maintaining the reactive power flow requirements of the transmission schedule? If so, please describe in what way and the method of resolution of the problem. Have the Participants experienced any difficulties in control-ling the scheduled interchange such that (1) the supply was deficient by more than the 1.5% allowed for inadvertant interchange or (2) the supply was in excess of the schedule and thereby ignored for billing purposes? If so, describe each instance aad the approximate kwh involved.
ANSWER The Lafayette to Jonesboro transmission service is under 3chedule F.
LP&L has been providing such service to Jonesboro since June 19, 1978.
Jonesboro is internal to LP&L's control ares.
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LP&L knows of no difficulty in maintaining the reactive power flow requirements of the schedule.
The Town of Jonesboro has had difficulties in controlling the scheduled interchange due to the difference in metering locations and the minimum setting of 1-MW of their controller. These deficiencies are being corrected and no difficulties are expected following this correction.
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(f) Has the following statement, found in the transmission schedules, ever been contested by any Entity or in any forum?
"It is recognized that the input and withdrawal of power and energy is under the control of the participating Entities,....."
If so, please discuss and furnish any documentation.
ANSWER No.
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(g) Has LP&L declined to supply transmission services requested by any Entity under Schedules F or F-I or otherwise? If so, please describe the reasons given in each instance.
ANSWER I
LP&L has not declined to supply transmission services requested by any Entity ader Schedule F or Schedule F-I.
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(h) Have there been any requests by the cities or towns to purchase power under Schedules A, B, C or D in which LP&L declined to furnish the service? If so, please describe the reasons given in each case.
ANSWER There have been no requests by any city or town to purchase power under Schedules A, B, C, or D in which LP&L declined to furnish the service.
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i (1) Have there been any other requests by any Entity for an interconnection agreement similar to FERC 547 If so, what was LP&L's position with re-spect to entering into such an agreement and the reasons for its post-tion in each case.
ANSWER There have been no other requests by any Entities for an interconnection agreement sLuilar to EERC #54, other than those now in operation and, in one instance, where the facilities are under construction for implemen-tation of the agreement.
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(j) Have there been any requests by any Entity for transmission services of less than five months duration? If so, please describe. LP&L's response in each case. If LP&L's respanse was negative in any instance, please describe the reasons given.
ANSWER There has been co,s request, by the City of Ruston, for transmission service of less than five months' duration. LP&L's response to Ruston has been that Ruston has an interconnection agreement with LP&L which includes a specific service schedule for interruptible transmission service, and that LP&L was prepared to furnish whatever service was desired by Ruston under that agreement on file with the FERC.
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(k) Please describe any actions that LP&L must take with respect to its interchange schedule setters when providing transmission services under Schedules F or F-1.
Are transmission Schedules F or F-I ever applicable to Entities within LP&L's control area, (1) if the power exchanging entities are all within the control area or (2) if only the power receiving (or supplying) entities are within the control area? If the power receiving and power supplying entities are all external to LP&L's control area, how does LP&L adjust its interchange schedule setters to receive the 3% transmission losses, and how does LP&L determine that the power supplying entities are indeed furnish-ing 3% more energy than the receiving entities are taking? Are transmission Schedules F and F-I applicable to Entities that are interconnected with both LP&L and another entity to which LP&L is interconnected? If so, how does LP&L detecnine the portion of the interchange which is passing through its transmission systen and the portion that is passing through other transmission systens?
ANSWER d
The interchange schedule setters would be adjusted to receive 103%
of the schedule from the supplying entity and to deliver 100% of the schedule to the receiving entity.
Yes, in either case.
If the power-receiving and power-supplying entities are external to LP&L's control area, LP&L's interchange schedule setter would be adjusted to receive 3% of the schedule of the supplying entity.
The interchange is on a scheduled basis and does not require instantaneous reconciliation of the power flows. The actual interchange is recorded by meters and compared to the scheduled interchange at the end of the month to deteenine if the interchange control of each of the parties was correct. Because scheduling can only be done in one-MR increments, the accumulated errors of round-off are scheduled at tines mutually agreeable to all system operators. LP&L determines that the supplying entity is supplying the power during the periodic energy surveys in s
the same manner all such transactions are checked.
Yes, they are.
In the evolutionary development of the application of this schedule, the physical path and the contractual path have been the same.
If future situations arise where this is not the case, then acconnodations l
to the physics of the situation will have to be made.
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11.
The information already furnished to us by LP&L in response to Regulatory Guide 9.3 states on page B-4 that "In addition to the interconnection agreements with the municipal operating entities, a similar agreement has been signed with Cajun Electric Power Cooperative, Inc."
Which agreenent is it similar to? In what ways is it different? When will the agreement be filed with FERC?
Is Cajun contesting any of the provisions of the agreement? If so, please discuss them, including LP&L's and Cajun's respective positions.
ANSWER The Electric System Intaconnection Agreement between Cajun Electric Power Cooperative, Inc. and LP&L is similar to the Electric System Interconnection Agreement with the City of Ruston (FERC #54), with the Town of Homer (FERC #57), with the Town of Rayville (FERC #58),
with the Town of Lake Providence (FERC #56), with the Town of Jonesboro (FERC #59) and with the City of Monroe (FERC #60).
This Agreement (Attachment VI) was filed with the Federal Energy Regulatory Comission on October 19, 1978, with a transmittal letter by Mr. W. C. Montgomery, LP&L's Director of Rates and Research.
Mr. Montgomery's letter outlines the minor differences between the Cajun Agreement and the Agreenents with the other municipalities.
Cajun has not contested any of the provisions of the Agreement, and in fact, wrote a letter to LP&L which was transmitted with our filing to the Federal Energy Regulatory Conunission requesting that the Agreement be given prompt approval since Cajun is now progressing with the installation of equipac.nt necessary to implement this Agree-ment. A copy of Mr. Montgomery's filing letter of October 19, 1978, and attachments (including the Electric Systen Interconnection Agree-ment between Cajun and LP&L) are included in Attachment VI.
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AttacInent I
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Attschm:nt I ooooeoooooooooeoeoo EMERGENCY INTERIM AGREEMENT by and between CITY OF MONROE' and LOUISIANA POWER & LIGHT COMPANY This Emergency Interim Agreement by and between I
CITY OF MONROE, a municipal corporation of the State of Louisiana, sometimes hereinafter referred to as " City",
herein acting through (a) the Commission Council of the City, heroin represented by W. L. Howard the Mayor of the City, [ pursuant to and hereunto duly author-ized by Ordinance No.
8/A of the Coinmission Council of the City duly adopted on March 31
, 1978,
a cortified true copy of which is annexed hereto, said Com-mission Council being the governing authority and body of the City, and (b) the City of Monroe Utilities Commission, sometimes hereinafter referred to as " Utilities Commission",
a part of the city government of the City, herein represented by Toe E. Marks. Tr.
, the Chairman of the Utilitics Commission, pursuant to and hereunto duly author-
[
ized by a resolution of the Utilitics Commission duly adopted March 31
,1928, a certified true copy on of which is annexed hereto, and LOUISIANA POWER & LIGHT COMPANY, a Louisiana corporation, sometimes hereinaft mferred to as " Company", herein acting through and repres G. D. McLendon, its Senior Vice President, hereunto duly
.thorized by resolutions of the Board of Directors of the Company duly adopted on November 21, 1977, a certified true copy of which resolutions is annexed hereto, WITNESSETH THAT:
WHEREAS, under date of April 2G,1977, the Company submitted to the City a proposition and offer (" Offer") providing for the operation and possi-bic ultimate ownership by the Company of the electric system of the City
(" Electric System"), which Offer included among other documents, as Appendix 1
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j 1 thereto a form of proposed Operating Agreement between the City and the 9
Company (" Operating Agreement") and as Appcndix 2 thereto a proposed form of authorizing and franchisc ordinance; and WilERCAS, the special election contemplated by the Offer was called and held on July 9,1977, and resulted in a vote by the electorate of the City which was overwhelmingly in favor of the acceptance of the Offer; and W11EREAS, certain lawsuits have been filed (the " Outstanding Litigation", horcinafter defined) which have prevented the consummation of the transaction contemplated by the Offer, and although all of such suits then outstanding were dismissed by judgment signed on Feb:uary 23,1978, an appeal from such judgment oi dismissal has been filed and is pending; and
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WHEREAS, the delay in consummating the transaction provided for by the Offer has caused an emergency situation to arise, requiring the execution and implementation of this Emergency Interim Agreement, providing for the tem-porary handling of such situation:
NOW, THEREFORE, the City and the Company, each for and in consideratior of the premises and of the agreements of the other hereinafter set forth, do hereby mutually agree, covenant and stipulate as follows:
Section 1. Unless the context obviously requires otherwise, terms used hereir. which are not defined herein but which are defined in the Operating Agreement shall have the same respective meanings as set forth in the Operating Agreement, and the following words, terms and/or phrases shall have the mean-1 ings hereinafter set forth:
(a) " Interim Period" shall mean the period of time during which this Emergency Interim Agreement is to be and remain in effect in accordance with its terms.
(b) " Outstanding Litigation" shall mean the three pending law suits,
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presently consolidated, in which W. E. Perry is the plaintiff and the City, the Utilitics Commission and the Board of Supervisors of Elections of Ouachita Parish, Louisiana, are defendants, bearing the Nos. 111,145,111,146 and 111,147 on the Docket of the Fourth District Court, Parish of Ouachita, State of louisiana, presently on appeal to the Second Circuit Court of Appeals, State of Louisiana.
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f Section 2.
Subject to such changes therein and deviations therefrom as are provided for hereinaf ter as being necessary because of the temporary or interim nature of this agreement, the aforesaid Operating Agreement, upon the execution hercof by the City and the Company, shall go into effect and be effcc-tivo as if the same had bcon fully executed and delivered by the City and the Company, and shall be fully implemented by the City and the Company.
Section 3.
During the Interim Period, no refunding of the Bonds shall f
be effected and Section 15 of the Operating Agreement shall not be in effect.
Section 4. Without in any manner derogating from or limiting the generality of the foregoing er of any other provision hereof, it is specifically provided herein and agreed, although not by way of limitation, that during the Interim Period Section 13 of the Operating Agreement shall be in effect and fully effective, and the Company shall have all rights, powers, and obligations there-in set forth.
Section 5.
Without in any manner derogating from or limiting the generality of the foregoing or of any other provision hereof, it is specifically provided herein and agreed, although not by way of limitation, that the Company shall have the right and power to effer employment to and retain as employees of the Company such of the present employees of the Electric System as the Company sees fit, who shall be employed under all of the Company's normal conditions of employment, including salan or wages, policies, practices and benefits, and who, if then still so employed, shall revert back to employment by the City if and when this Emergency Interim Agreement is terminated or nullified without the Operating Agreement then or theretofore becoming effective.
Section 6.
The inventory provided for by Section 2 (c) of the Operating Agreement shall not be made during the Interim Period, but shall be made as of the Commencement Date hereafter fixed in the Operating Agreement as executed.
Section 7.
The first reading of the motors of the customers of the Distribution System by the Company shall be effected as soon as reasonably practicab!c after the commencement of the Interim Period, and the final meter reading determination for the City (whien will also be the beginning meter reading determination for the Company) shall be calculated by pro rating the customer's usage to the commencement of the Interim Period.
Section 8.
In the event that this Emerqcncy Interim Agreement is terminated or nullified without the Operating Agreement having theretofore become or then becoming cticctive, the City shall thercupon be obligated to pay to the Company, and shall pay to the Company promptly and in any event no later than 120 days af ter such termination or nullification of this Emergency
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Interim Agreement, the depreciated book cost of all additions, improvements cnd replacements made by the Company to the Electric System, including all extensions of the Distribution System (and including any Capital Improvements made under the provisions of Section 6 of the Operating Agreement), located within the corporate limits of the City as such corporate limits exist at the beginning of the Interim Period, and all replacements offceted by way of main-tenance, less any salvagc reall:cd from retired property, and upon such pay-ment being made by the City to the Company, all of said additions, improvements, replaccmonts and extensions within the corporate limits of the City as such :or-porato limits exist at the beginning of the Interim Period shall become the property of and belong to the City, and the Company shall have no further ownership rights with respect thereto.
Section
- 9. The City recognicos that in order for the Company to provido electric service hereunder, it will be necessary for the Company to offcet modifications and/or additions to the Company's facilitics in the immediate vicin-ity of the City at an initial cost Ostimated at approximately $400,000, and that it may thereafter be necessary for the Company to make other capital additions to
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iandle the load growth of the City. In the event that this Emergency Interim Agreement is terminated or nullified without the Operating Agreement having be-como offective or baing in effect, the City shall reimburse the Company its cost and expanses in connection with the facilities referred to above in this Section 9 as follows: (a) if the Company, in its sole discretion, determines that such facili-ties can justifiably be removed or dismantled, the payment by the City to the -
Company of the "up and down" costs, or (b) if, in the judgment of the Company, such removing or dismantling is not justifiable, the payment by the City to the
,j Company of the Company's fixed charges on such facilities from the time that i:
this Emergency Interim Agreement is so terminated or nullified until the Company I i has need for such facilities for its own purposes: provided, however, that no single project of the nature aforesaid costing mere than $250,000 after the initial modifications and/or additions in the approximate amount of $400,000 aforesaid shall be commenccd or undertaken by the Company without the prior consent of
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the City, but if such consent is withheld and adversely affects the ability of the Company to. provide adequate electric service to the customers of the Distribution System, the Company's obligation to provide such adequate service shall be modified accordingly.
Section 10. Certain of the Company's rato schedules require the '
installation of demand meters and the City is presently serving without demand meters many customers who will be serv,cd on such rate schedules. In view of
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the interim or temporary nature of this Emergency Interim Agreement, the Company will not be obligated to install during the Interim Period demand meters for the l
billing of such customers, but will during tr's interim Period estimato demands for billing purposes with respect to all such customers for which demand metcrs are not installed.
Section 11. This Emergency Interim Acrecment shall becomo effective and shall bc in effect immediately upon the cxccution hereof by both the City and the Company, and shall remain in offect until, and shall be terminated if and when, l
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cither (a) the Operating Agreement shall have becomo effective and be in effect, or (b) a final, non-appealab!c judgment of a court of competent jurisdiction has dctormined that the propo.;cd Operating Agreement is or would be illegal, or that the above-mentioned election of July 9,1977, was illegal or is invalid, or (c) this Emergency Interim Agreement has been terminated or nullified or superseded or replaced by mutual con::ent of the parties or by a final, non-appealab!c judg-ment of a court of competent jurisdiction.
Section 12. This Emergency Interim Agreement shall be binding upon and shall inure to the benefit of the City, the Commission Council of the City, the Utilitics Commission, the Company, and the respective successors and assigns of each of them.
IN WITNESS WHEREOF, the City and the Company have signed and executed this Emergency Interim Agreement in several multiple original counter-parts on the 31st day of March
,197 8, at Monroe Iouisiana, both in the presence of the two undersigned competent witnesses.
r WITNESSES:
CITY OF MONROE
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By: Commission Council of the City of Monroc XWWU
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By /
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.f Monroe Utilities Commission By:
fwd
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^, Chairman LOUISIANA POWER & LIGHT COMPANY
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By N
Au bra Senior Vice President 4
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Attachment II e
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Attrchm nt II Recs vED CCi 6 75 my
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0 RATE r>T.PT-0 l_QUISIATJA P O W E R & Li G H T / sea metanoNea StaEa7 e NEW CRLEANS. LQuaSIANA 70174 r.a u
scurs UTUTIES SVSTEM C
October 1, 1975 12.
Federal Power Ccx: mission If Washington, D. C. 20426 y
Attention: Mr. Kenneth F. Plurb, Secretary i.
e.
J.
Re: Icuisiana Pcwer & Light Cem Interconnection Agreement with City of Ruston, Icuisiana Gentlemen:
Enclosed herewith for filing with the Ccmrission pursuant to Part 35 of the
Ccnmission's Regulations are six ccpies of an " Electric System Interconnection Agreertant" between the City of Rusten (City), Icuisiana and Icuisiana Power &
Light Ccrepany (LP&L), dated Septarber 15, 1975.
h is Agreerent supersedes LP&L Pate Schedule FPC No. 30 which was filed Septerber 19, 1968 and became effective October 24, 1968.
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%e Ccmnissien is raMully requested to accept for filing this Agreement with the City of Ruston to beccne effective at the earliest date in accordance with the Ccnmission's rules.
his Agreenent makes available seven service schedules as follcws:
Service Schedule "A" Dnergency Assistance Service Schedule "B" Reserve Capacity 4
Service Schedule "C" Supplemental Pcwer Servi Schedule "D" Surplus Power s
Service Schedule "E" Economy Power Service Schedule "F" Tran - sion Service Service Schedule "F-I" T:an d ssion Service
%e City is presently taking enly Emergency Assistance Electric Service under FPC Rate Schedule No. 30 with a maximt:a capacity of 14,500 kilowatts at 34,500 volts three phase. This superseding agreement will provide a camcity of 45,000 kva at 115,000 volts, three phase, and in addition to EmEL7. ency Assistance Electric Service, will provide Peserve Cacacity, Supplenental Power, Surplus Pcwer, 'M Pcw_r, arxi Firm and/or Interruptible Trans-mission Service.
To provide 45,000 kilowatts at 115,000 volts, LP&L changed the voltage en the line frcm the Vienna substation to Rusten frcm 34,500 volts to 115,000 volts and dead ended the line just beycnd the City's substation. We City tapped LPEL's line adjacert to City's substation - diagr e shcwim intercennecticn t.ttached to Agreercent.
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Federal Power Ccmnission Page 2
'Ihis Agresent is the result of arm-length ragotiations started in August 1972 between IP&L and the (1) Icuisiana famicipal Association Utilities Group, (IMAUG), representing the generating municipalities in Icuisiara (including the City of Ruston, (2) the Atcmic Energy Ccmnission, and (3) the Department of Justice. These negotiations resulted in this Agrement, accepted by I1GIIG, which was a part of the requirements for obtaining a c::nstruction pe= nit for the Ccrapany's Waterford No. 3 nuclear generating unit and represents tra inter-pretation of our ccr:mitments to the Atcznic Energy Ccmnission arri to tre Depart-ment of Justice as to providing electric pcwer for tra gerarating municipalities
' in Iouisiana.
It is expected that this negotiated Agreenent with Service Schedules"A"through "F-I"are being signed by other generating mL.ticipalities who may require addi-tional electric pow r assitance.
SEhVICE SCHEDULE "A", 'h:ergency Service," Part 1. (a), is changed frcm 8.5 mills to 12.5 mills for eacn keh of etergency pcwer and erargy delivered by either party to the other. The increase in the rate will cause the price for emergency service to be nearer in line with the present day costs. Tra increase is races-sary due to rapidly escalating labor, material, operaticn and rainterance costs end also to ec=pensate the sucplying parties for the difficulty teing incurred in obtaining and maintaining adequate fuel supplies. Emergency service will most likely be required by the buyer at the tire the seller is experiencing his peak system load and, therefore, the seller should be adequately ccq:ensated for the additional load placed on his generation and transmission facilities.
The proposed Service Schedule is a reciprocal type of arrangment between the parties ard the rate of 12.5 mills per kwn' was arrived at through negotiations betwen the W es.
It is considerad fair and equitable, particularly when crrupared with the present rate of 17.5 mills per kwh cParged by the major utilities in the goegraphic area for si nilar service and, it nore adequately ocrupensates the supplying party for the cost of supplying such service.
Part 1. (b) of Service Schedule "A", (the incremental cost per kah of fossil fuel plus four mills per kwh) times 1.06, beccrres applicable when such in-cremental cost is greater than the rate in 1. (a). The adder of four mills per kah is considered fair and equitable. The emergency is nest likely to occur at a, time when the system is heavily Irw%1, 'which places a greater burden en the interconnected system that results in increased energy losses and increased ccst. The w eaents of the four mills per ksh are shown in Exhibit 1, attached Screto.
p...
'Ibe cultiplier of 1.06 Part 1. (b), is to partially ccrrpensate seller for losses suffered in delivering emergency pcwer and energy either by the City or IE&L.
The losses associated with step-up transfonnation at the generating stations
- f. sand losses on the t w.sion are in the order of four per cent (Exhibit tb.
...,,d,: Page 8, Paragraph 4). Since erergency sales and sale of additional pcwer would be incremental losses, the actual losses would dquble to atcut eight per cent. Icsses v2ry as the square cf the cur e.t (I"t), thereferc, i-. crc-mental losses asscciated with ten per cent increase in load would be twice r.
Federal Power Comission Page 3 the existing loss rate (Exhibit !b. 4).
Larger incremental loads will cause incrmental losses greater than double the average losses. The multiplier of 1.06 falls between average and incremental lanses and, therefore, is fair and equitable to both the seller and purchaser.
Part 2. of Service Schedule "A" provides for the purchase of emergency service frcm other systms at the cost of purchased energy, plus fifteen per cent.
'Ihe fifteen per cent adder, arrived at through negotiations between the parties, will partially ccupensate the seller for losses associated with transmission of power and the cost of purchasing and load dispatching associated with purchasing emergency power.
SEWICE SOEDULE "B", " Reserve Capacity," is a new schedule to provide "re-serve capacity" to either party desiring to purchase reserve capacity frca the other when the supplying party has such capacity ab3ve its own require-ments and when the purchasing party has "sustaired run" generating capacity available to carry its lead responsibility and spinning reserve for which this reserve is required.
The reserve capacity rate of $18 per kilewatt per calendar year ($1.50 per month) was considered fair and equitable. Exhibit No. 2, attached hereto, shows that the present rate being charged by LP&L to its sister ccrpanies under the System Agreenent, FPC Bate Schedule No. 48, is $2.9150 per kilowatt per month.
'1he rate for energy is identical to that in Service Schedule"A."
SEWICE SOEDULE "C",. " Supplemental Power" is a new schedule to provide sup-plemental power to either party desiring to purchase supplemental power and energy frcm the other when the supplying party has such power and energy available, which contracts for such power and erargy in accordance with thr.
terms of this Agrement.
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'1his supplemental power is supplied on a firm basis and the demand charge of $1.75 per kilowatt month is based cn the Sl.50 per kilowatt charge in Service Schedule "B" plus a charge for reserves.
The rate of (a) 6 mills per kwh for energy is 3.7 mills per kwh above the 2.3 mill fuel cost. Refer to explanation of Service Schedule A Part 1. (b) herein and Exhibit No. 1 for the cost support of four mills per kwh.
F The rate of (b) (Incremental cost per kwh of fossil fuel plus fcur mills per kwh) times 1.06 is idential to that in Service Schedule A.
SEWICE SOEDUIE "D", " Surplus Power," is a new schedule to provide surplus power to either party desiring to purchase surplus power and energy frcm the other upon request by the purchasing party, when the supplying party, in its 0
sole judgment, has determined that it has such power and erargy available.
Sc rate of $1.25 per kilcwatt for surplus pcwer is icwcred frcm the charge for reserve capacity and supplemental power in that it nny be scmewhat less valuable and the cost to provide may be less.
Federal Pcwer Ccrmission Page 4
'1he energy rate is icwered to the incremntal cost pr kah of fossil fuel plus tm mills per kah tunes 1.06 for the sa:m reason.
SERVICE SCHEDULE "E",
"Eccrarf Erargy" is a nea schedule to provide eccccmy energy to either party desiring to purchase ecc:rmy energy frcra the other upon request by the purchasing party, when the supplying party, in its sole judgment, has detemined it has such eccracy erargy available.
The rate is si:rply a " sharing of savings" calcalated at the time of agree-ment between the parties.
SERVICE SGEIXIIE "F", " Transmission Service" is a ndi schedule for the transmissica of gewer and energy by LPLL over its trhrsnission facilities to and frcra entities in the State of Icuisiana with which it has Electric System Interconnection Agreements including Service Schedules "A" and "B."
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A "Transission Service Cost Analysis," dated May 1974, is enclosed here-with as Exhibit Ib. 3.
SERVICE SGEDULE "F-I", "Trarsnission Service" is a raw schedule similar to Service Schedule'f"except that trars:u.ssion service is interruptible ard contracted for a minirmm pericd of five r:enths.
Negotiations began en this Agreemnt in 1972 and, therefore, rates are based en the 1972 and 1973 periods. ?.e fuel adjust ent clause is based en 0.23 cents per kah as delivered to the custmer. Calculatiens of the fuel adjust-nent follow the FPC requirements of Secticn 35.14. The wording of the fuel adjustment clause may require revisicn to meet the requirecents of FPC by January 1, 1976. S.e fuel adjust:nent base of 0.230 per kah is in the City's present contract, E"PC Pate Schedule No. 30, ard in all otbar centracts with the municip,1ities. This Agreemnt was negotiated with the 0.230 fuel base in all its rate schedules.
Exhibit No. 5, attached herete, shows the Billing for Emergency Assistance for the twelve r:enth pericd ending September 16, 1975. Future sales and revenues for ermrgency assistance are too unpredicatahle to be estirated with a:rf accuracy. The City has not requested electric service under the Service Schedules "B" thrcugh "F-I," ard, therefore, no estirated billing data can te provided.
Enclosed is Icuisiana Pcwer & Light C=pany's check in the a:: cunt of $500.00 payable to the Treasurer of the United States in accordance with Part 36.2 of the Ccmnission's Pegulations.
A copy of this transmittal letter with the attachments is cencurrently nailed to the City of Ruston, Emicie.a.
' Federal Power Camtission Paga 5 If furth=2 information is required, please advise us or cur attorney, Mr. Richard M. Merriman, Paid & Priest,1701 K Street, N.
W.,
Washington, D. C. 20006.
Sincerely,
. OIZ' W. C. Montgcme Director of Rates & Pesearch NCM:CHP cc: Honorable John W. Perritt, Mayor City Hall City of Rusten, I.cuisiana 71270 Icuisiana Public Service Ccmission Che American Place, Suite 1630 Baton Pouge, Iouisiara 70825 Mr. Richard M. Parriran O
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Exhibit Noo 1 Imisiana Power & Light Cc:pany COST CCMPCNEh'rS 4 MILL ADDER A.
Average
- Gross Production Plant
$292,011,866 (1)
B.
Average
- Gross Transmission Plant
$139,440,510 (1)
C.
Average
- Plant Capability - W 3,525,000 (1)
D.
System Peak - W 2,692,000 (1)
E.
Fixed Rate on Production 17.36% (2)
F.
Fixed Rate on Transussion 15.35% (2)
G.
Input to LP&L System - I@h 13,897,535,000 (1)
H.
Average Hours Use (G t D) 5,163 I.
Annual Production Investment per W (A t C)
$82.84 J.
Annual Transmission Investment per W (B t D)
$51.80 Facilities Charges for Capacity hI X E) ; H) 2.79 Mills K.
FeilitiesChargesforTransmission[JXFf;H L.
1.54 Mills M.
Total Fae'414 ties Charge (K + L) 4.33 Milln
,Use 4 Mills 4
i
- Average of beginning and erd of year 1974.
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l (1) 1974 FPC-1 l
(2) Includes return, taxes, depreciation, property insurance, and O & M.
Excludes general overheads, custaner aca:unts, and sales expense.
4
ututul; w, z Intra-System Billing Attachm:nt 5 Shret 7 of 8 Augu;t 1975 PARTICIPATION UNIT
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A.
Louisiana Power & Light Company Waterford No. 1 - Oil Firing B.
Investment Total Per kw Depreciable 70,076,000 180.61 Non Depreciable 2,826,080 7.28 Total 72,902,080 187.89 C.
Demonstrated Capability - 388,000 kw D.
In Service Date - 6/20/75 E.
Cost of Capital
.56 x.08373 =.0469
.10 x.07920 =.00792
.34 x.116
=.03944 Average
.09426 F.
Sumary of Annual Charges 1.
Cost of Money
.09426 (180.61 x.9859 + 7.28) 17.4705
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2.
Depreciation
.0282 x 180.61 5.0876 3.
Income Taxes
.9647 x.04736 x (180.61 x.9859 + 7.28) 8.46813
.2505 4.
Insurance
.0563 5.
Property Tax
.2470 6.
Franchise Tax
~"2.5000 7.
Operation & Maintenance 1.0000 A
8.
General Administration A 4.98021 3
Annual Cost per kw I2.91502 Monthly Cost per kw e
e 9-4-75 nr
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Attachment III
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Attechm:nt III
'M rI l PJ l_QUISIANA Jr d$
P O W E R & Li G H T / saa ostanoNos stass7 e NsW ombsANS LoutSIANA 7c174 Eu?$sYsE March 29, 1976 Federal Power Catmission Washington, D. C. 20426 Attention: Mr. Kenneth F. Plumb, Secretary Re:
Iouisiana Power & Light Campany Interconnection Agreement with City of Ruston, Iouisiana (Docket No. ER 76-162)
Genelemen:
We are hereby providing the information requested by your letters of October 29, 1975 and December 4, 1975 in subject Docket.
Your letter of December 4,1975 raises the question of " incremental fuel cost," and Iouisiana Power & Light CaTpany (LP&L) does in fact calculate its incremental fuel cost on an hour by hour basis. The reference to "this price would probably be based on oil" referred to the fact that we anticipate the need to generate kilowatt hours on oil almost continuously by the time Ruston or Hcmer would start taking poaer under the proposed interconnection agreerent. Thus our "incre-mental fuel cost" even on an hour by hour basis muld probably care nostly frcm oil. Sare generation on lower cost gas may be available during early morning hours starting after midnight.
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Your October 29, 1975 letter requested that w provide data verifying the appropriativeness of the various charges for energy associated with amrgency Assistance, Reserve Capacity, Supplemental Power, and Surplus Power.
Pricing for emergency' service, as ordered by the F. P. C. in Order Fo.
520, Docket No. FM75-3, issued Novenber 29, 1974 provides for the pricing of emergency service en three separate basis, depending upon the characteristics of the buyers needs. When the emergency service has the characteristics of firm service the pricing should he based upon fully allocated costs. hhen the service to be rendered is run-firm in nature, the generating and transmission system shall each be entitled to recover their respective incrarental costs plus sane addi-tional reasonable carpensaticn. The third characteristic is generally regarded as econairy transaction rather than energency. This is where the pricing is based on a share-the-savings approach.
Federal Power Comtission March 29, 1976 Attention: Mr. Kenneth F. Plumb, Secretary Page 2
'Ihe service provided by this Interconnection Agreement can take on the characteristics of either firm or non-firm service. Therefore, the pricing should be based upon sme ccebination of the tw characteristics that assures that all costs associated with providing such service are recovered thus eluninating the possibility of subsidization by other custmers.
This contract provides that each party agrees to keep not less than six-teen (16) per cent of their annual projected peak demand as adequate re-serves. Furthermore, to insure ready availability, each will hold capa-city of not less than six (6) per cent of its annual projected peak de-mand as "Peady Paserves." A deficiency in the lack of dependable generat--
ing capacity to meet load requirements plus reserves shall not be deemed an emergency.
Emergency Assistance is limited to an emergency or breakdown affecting the system of the purchaser or upon suitable arrangements in writing by either party to shut down generating units for scheduled mainterance.
This means that the emergency service or breakdown will usually be pro-vided in the peak load periods of the supplier. Exhibit No. 5 shcreed that during the billing periods ending July 17,~1975, August 19, 1975, and September 16, 1975 the City of Ruston was taking evergency service.
This is during the peak load months of July, August, and Septerber on the LP&L systen. Exhibit No. 6 shows the billing of all nine Emergency Assistance custcrrers, which tends to peak in the su:mer months. There-fore, the full on-peak costs should be considered for providing such service.
The actual pricing of emergency service'is not a precise art due to the need to utilize "so-called" incremental costs. These generally ray be said to be the estimated savings in expense if you had not made the trans-action. This requires judgment and is negotiated between tw capable ard responsible parties which should provide the best result for both pd.es.
s A look at three different pricing methods should support the proposed level. These three methods are (1) costs incurred by generation and transmission, (2) costs to purchase, and (3) increrental costs.
It should also be pointed out that although emergency service can be sup-plied, at the proposed prices, by either party there is an e.streme dis-parity in their respective sizes. The total capability of the intercon-nection of 45,000 kva, even if it could be supplied by Ruston is only 1.13% o LP&L's 1975 capability. Ruston controls the amount and direc-d tion of power flow through the interconnection and can take up to 45,000 kilowatts at any tima frcm the LP&L system. Ruston has about 45,000 kilo-watts available for LP&L, including starting up several small diesel engines.
Over the life of the contract the 45,000 kw available to LP&L will decrease toward zero. Ruston will probably presently carry their total load on one 43,000 kw generating unit and in case of an energency LP&L would pick up Ruston's total load. Ruston could provide cnly a minimum of assistance in the event of a problem on LP&L's system.
Federal Power Cm mission March 29, 1976 Attention: Mr. Kenneth F. Plu:rb, Secretary Page 3 (1) Costs to Ccrroany of on-peak emercency.
The LP&L peak load period extends for eleven hours each day during the sunmer months. 'Ihis is where the load is within 90% of the maxinum load. The maxinum load can come at any time during this period.
Therefore, the est of one kw on-peak and eleven kwh per day should be the: pricing criterion for an on-peak ser-gency. Under the system agreement one kw on the system peak would result in a ccst to LP&L cf:
S2.91502 (Ddubit No. 2) 1 kw X 2.91502 -(Naterford #1)
=
3.80556 11 kwh X 31 X *11.16 mills /kwh
=
$6.72058
$0.01971 per kwh
$6.72058 t 341 kwh
=
- Average fuel cost LP&L delivery to exchange (Ddubit No. 7).
An analysis of the nine nunicipalities served Emergency Assis-tance Service for the year 1975 (Ddubit No. 8) shows that the revenue per kw of contract demand was only S0.10 per kw nonth and the revenue for demLM after deducting fuel cost wu only S0.35 per kw month as ccrupared to LP&L's actual cost shown above of $2.92 per kw.
(2) Costs if purchased frcm outside sources. ('Dchibit tb. 9)
During the three months period, July - Septerber, 1975, LP&L purchased under Emergency or Peplacement Energy at the fol-lcwing prices:
s Mwh S
July,
54,923
$780,753.24 August 44,239 646,840.62 Septaber 41,237 535,611.26 140,399 S1,963,205.12 S.01398 per kwh S1,963,205.12 t 140,399
=
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Federal Powr Ccrmtission March 29, 1976 Attention: Mr. Kenneth F. Pltrrb, Secretary Page 4 (3) Incremental costs.
(Exhibit No.10)
Incremental costs depend upon the necessity for emergency service within the configuation of the daily load shape of the supplier. The Ccropany operates on econcmic dispatch such that the fuel cost would be frcm the rext lowest cost source available to supply the smrgercy energy. We Ccrnpany has increnental fuel costs ranging frcm 2.68 mills /kah to 30.10 mills /kwh.
It is inpossible to forecast which unit might supply emergency energy at scrne unkncun tire. During last suntner peak load periods the minint:m hourly load was about 1,775 nw.
This takes up most of the lower priced fuel supply for firm custcrmrs.
Under the very minimum load con-ditions it could be possible to supply energency energy frcm units with fuel costs in the 7 mill /kah range.
The pricing for this is constructed as follcus:
Mills per Kwh Estimated increnental fuel cost average 7.00 Incremental O & M (Exhibit No.11) 0.45 Incremental overheads (Exhibit No.11) 0.50
'1btal 7.95 Ioss factor X 1.06 (Letter 10-1-75) 8.43 Cost ccrrponents 4 mill adder (Exhibit No.1) 4.33 Total Mills Kwh Minimum 12.76 Thus the ntinhti:m cost to supoly additional loads is about 12.5 mills /kwh.
The pricing schedules for the emergency service covers most of the con-ditions that can occur due to the clock hour time of the energency. We again m uld point out that these prices wre established by negotiaticn between two responsible parties and such prices apply regardless of which is the supplier. We do not purport to know the costing methods of the City of Ruston.
In su mary for emergency service during off-peak hours the price minimum should be 12.5 mills /kwh, plus the standard fuel adjustment which is based on average fuel costs rather than incremental costs. We average fuel price noves up proportionally as the higher priced units are run to supply load.
Federal Poxer Ccmnission March 29, 1976 Attention: Mr. Kenneth F. Plumb, Secretary Paga 5
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At times for mre on-peak service the incremental fuel cost plus adder as provided in Section 1(b) will ::cve to the higher range of fuel costs, i.
e., 15 through 30 mills per kwh. This puts the pricing in line with the on-peak cost burden placed on the Ccepany, as developed above of
$0.01971 per kwh. This also provides for the price to move smoothly upwards in the event that higher cost units are the erergency supply.
The following chart will illustrate this principle.
Incremental +
Fuel 12.5 + FA 4.0 X 1.06 Average Incremental (1)
(2)
Mills /Kwh Mills /Kwh Mills /Kwh 2.3 20 12.5 25.44 4
20 14.2 25.44 8
20 18.2 25.44 12 20 22.2 25.44 I
16 20 26.2 25.44 20 20 30.2 25.44 20 24 30.2 29.68 If the Ccrnpany has to purchase emergency energy dua to unavailability internally to supply such energy the purchase price would generally be in excess of 17.5 mills plus 15% which is the minimum cha ge for mer-gency throughout the Southwest Power Pcol.
While emergency sales are made on the basis that " supplier is obligated to make deliveries only to the extent it can do so without jeopardizing service to its own customers," sales on the reserve capacity and supple-mental power rate schedules required that the supplier hold certain capa-city available for the purchasing party.
In the case of LP&L, this capacity would be supplied from our nest recent generation. As shown in Dchibit No. 2 which accompanied our October 1, i
1975 filing, Waterford Unit Fo.1 cost S187.89 per kw.
Dchibit No. 1 g -
which justified the four mill adder shows that our average installed cost for production plant to be S82.84 per kw.
Thus LP&L needs to recover an additional S105.05 per kw.
We are attempt-ing to do this through the demand charge of these rates. The $1.50 per l
kw charge in the reserve capacity rate is justified by S105.05 times 18.62%
l fixed charges (Exhibit No. 2) equals an annual revenue requirement of $19.56.
mis S19.56 t 12 months gives a demand charge of $1.63 compared to the Sl.50 in service schedule "B," Peserve Capacity.
l For supplemental power the capacity must be furnished with reserves.
Using a 16% reserve figure our cost of capacity becmes S187.89 x 1.16 =
i S217.95 per kw. This is $135.11 per kw more than the four mill adder.
h is S135.11 X 18.62% equals $25.16 per kw year.
$25.16 t 12 ncnths gives a rate of S2.10 per kw compared to the actual charge of $1.75 in service schedule "C", Supplcmental Power.
Federal Power Cmmission March 29, 1976 Attention: Mr. Kenneth F. Plumb, Secretary Page 6 Since surplus power is available only when the supplying party has it available it was priced smewhat less than reserve and supplmental power.
'Ihe two mill adder to energy only recovers a little more than the transmission caponent on Exhibit No.1 while the S82.84 per ka average production cost, times our current fixed costs of 18.62%
gives an annual revenue requirenent of $15.42 or $1.29 per ka month which capares with the Sl.25 charge in the service schedule "D" Surplus Pcwer.
In all of these justifications we have given the municipality the benefit because their load factor is less than LP&L's load factor (58.9% - Exhibit Nc.1) and, therefore, we will not recover adequate revenue through the adders to the fuel cost.
We are also enclosing a Fuel Adjustment Rider, Exhibit No.12, as filed with FPC December 30, 1975, for attachment to Service Schedule "A" - Bnergency Assistance, "B" - Peserve Capacity, and "C" - Supple-trental Power to supersede adjustment "second," which will bring +Jese rates into conformity with Section 35.14 of the Regulations as a: rended by Order No. 517.
If you require additional information, please contact me or our attorney, Mr. Richard M. Merriman, 1701 K Street, N. W., Wash.tngton, D. C. 20006.
Respectfully sulritted, Iouisiana Power & Light Carpany a/
emy) w f.
C. Montgmery Director of Rates Research IC1:CHP cc: Mr. R. M. Merriman
EXHIBIT NO. 6 Page 1 Iouisiana Power & Light Cmpany Rate Schedule EAS-2 Code #52 Year 1975 City of Ruston, Icuisiana Kw Demand Kwh 1975 Measured Consumption Net Charges Jan.
Feb.
Mar.
p, May June l
4.000
$38.68 1
July 1,450.0 76,'000
$734.92 Aug.
1,150.0 183,000 1,767.78 Sep.
1,150.0 89,000 848.17 Oct.
Nov.
Dec.
Total 352,000
$3,389.55
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DOIIBIT NO 6 Page 2 Iouisiana Pcrer & Light Cmpany Rate Schedule EAS-2 Code #52 Year 1975 City of Thibodaux, Iouisiana Kw Demand Kwh 1975 Measu ed Consumption Net Charges Jan.
1,344.0 414,400
$4,446.51 Feb.
1,344.0 117,600 1,265.38 Mar.
1,232.0 56,000 546.56 Apr.
3,808.0 1,310,400 13,012.27 May 5,264.0 1,719,200 17,088.85
/
June 4,032.0 1,450,400 14,837.59 July 4,256.0 1,702,400 16,462.21 Aug.
4,480.0 1,047,200 10,115.95 Sep.
2,688.0 260,800 2,561.66 Oct.
4,704.0 78,400 755.78 Nov.
- gee, Total 8,164,800
$81,092.76 l-
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J EXHIBIT NO. 6 Page 3 Iouisiana Power G Light Capany Rate Schedule EAS-2 Code #52 Year 1975 City of Plaquemine, Iouisiana Kw Demand Kwh 1975 Measured Consuiption Net Charces Jan.
Feb.
Mar.
Apr.
3,584.0 148,400
$1,473.61 May June July Aug.
8,512.0 341,600 3,299.86 Sep.
2,240.0 2,800 26.68 Oct.
6,384.0 5,600 53.98 Nov.
Dec.
Total 498,400
$4,854.13 A.
I l
l I
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f
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EXHIBIT NO. 6 Page 4 Iouisiana Power & Light Carpany Rate Schedule EAS-2 Code #52 Year 1975 City of Haner, Iouisiana Kw Demand Kwh 1975 Measured Consumption Net Charges Jan.
Feb.
Mar.
Apr.
May June July Aug.
Sep.
- oct, Nov.
932.5 93,800
$883.60
- nec, Total 93,800-
$983.60 t
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E0iIBIT to. 6 Page 5
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Icuisiana Power & Light Company Rate Schedule EAS-2 Code #52 Year 1975 City of Houma, Ionisiana Kw Demand Kwh 1975 Measured Constrction Net Charges Jan.
1,562.5 33,600
$327.77 Feb.
5,393.0 56,000 602.56 Mar.
Apr.
4 7
say June July Aug.
Sep.
Oct.
5,997.5 67,200 647.81 Nov.
4,284.0 11,200 105.50 Dec.
1_
Tbtal 168,0b0
$1,683.64
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EXHIBIT 10. 6 Page 6 Iouisiana Power & Light Ccepany Rate Schedule F16-2 Code #52 Year 1975 Town of Lake Providence, Louisiana Kw Demand Kwh 1975 Measured Consumption Net Charges Jan.
1,288.0 50,400
$540.79 Feb.
Mar.
Apr.
my June 1,512.0 114,800 1,174.40 July 1,680.0 100,800 974.74 1
Aug.
1,904.0 551,600 5,328.46 Sep.
1,848.0 722,400 6,884.47
- oct, Nov.
Dec.
'Ibtal 1,540,000
$14,902.86 l-(
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EXHIBIT NO. 6 Pagm 7 Iouisiana Power & Light Ccopany Rate Schedule EAS-2 Code #52 Year 1975 City of Monroe, Iouisiana b Demand Kwh 1975 Measured Consumption Net Charges Jan.
Feb.
t Mar.
Apr.
May 10,000.0 43,000
$427.42 June July 56,000 540.96 Aug.
Sep.
Oct.
w, Dec.
Total 99,000
$968.38
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Page 8 Iouisiana Power & Light Caq:eny Rate Schedule EAS-2 Code #52 Year 1975 Town of Rayville,'Iouisiana Kw Demand Wh 1975 Measured Consumption Net Charges Jan.
Feb.
Mar.
Apr.
616.0 5,600
$55.61 May 1,680.0 2,800 27.83 June Jtdy Aug.
i Sep.
3,080.0 775,600
$7,391.47 Oct.
523,700 5,048.47 Nov.
- pec, Total 1,307,700 S12,523.38 e
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E;m m er tks.
1, ea9e x I
jers-Systca Billing Pcg2 2 of 3 uly 1975 EXCllANCE EUCRGY Mills Per KWH '
- garje, MWH_
Source 98 -
247 22.54 5,567.38 SWEPCO "ES" Sterlington #7 011 1,082 19.31 20,893.42 Sterlington #6 011 15,296 19.19 293,530.24 Ninemile Pt. #4 011 (2) 30,546 18.78 573,653.88 Little Gypsy #2 011 7,654 18.51 141,675.54 Ninemile Pt. #3 011 (6) 25,604 17.96 459,847.84 Waccrford #1 011 75,519 17.90 1,351,790.10 OC&E "ES" 9,316 17.50 163,030.00 CLECO "ES" 6,326 17.50 110,705.00 26 17.50 455.00 s
EDE "ES" 3,440 17.17 59,064.80 Sterlington #5 UG 4,796 16.50 79,134.00 Buras 322 15.38 4,952.36 Rex Brown #2 SFI Cas Sterlington #5 CSC #2 1,216 15.28 18,580.48 578 15.08 8,716.24 Rex Brown #3 SFI Gas Burns Peaking 4,217 14.62 61,652.54 458 14.07 6,444.06 Secrlington #5 CSC #1 Rex Brown #4 SFI Gas 2,904 14.03 40,743.12 Sterlington #6 UG 17,153 13.83 237,225.99 148 -
13.28 1,965.44 CLECO "RE" Sterlington #6 CSC #2 22,172 12.81 284,023.32 321 12.26 3,935.46 Sterlington #7 CSC #2 11.916149 15,753.15 1,322 TVA Economy OG&E "RE" 29,185 11.90457721 347,435.09 Sterlington #6 CSC #1 9,893 11.80 116,737.40 11.80 108,300.40 Sterlington #6 C-P-LIG 9,178 Sterlington #7 CSC #1 1,231 11.29 13,897.99 Sterlington #7 C-P-LIG 18,620 11.29 210,219.80 348 10.4516129 3,637.16 EDE "RE" Ster 11ngton #6 TG 8,344 10.18 84,941.92 Ster 11ngton #7 TG 2,041 9.74 19,879.34 UE (Firm Energy Return) 2,005 6.9448183 13,924.36 i
Ninemile Pt. #1 UG 15,447 6.19 95,616.93 Ninemile Pt. #2 UG 9,004 5.49 49,431.96 Ninemile Pt. #3 UG 3,655 4.96 18,128.80 Ninemile Pt. #4 UG 1,152 4.92 5,667.84 9,492 4.20188463 39,884.29 Ninemile Pt. #1 Texaco 26 3.66 95.16 l
TVA - RD Sterlington #6 PA 4,996, 3.51 17,535.96
~
Sterlington #7 PA 1,127 3.36 3,786.72 Nitiemile Pt. #2 Texaco 4,874.
3.25 15,840.50 Ninemile Pt. #3 Texaco 12,134 2.94 35,673.96 Ninemile Pt. #4 Texaco 78,276 2.92 228,565.92 227_
2.88 653.76 Little Gypsy #2
'h(.7Z5f3
$5,375,527.02 f
July 452,016 6,795,078.44 Aug.
579,683 437,440
'10.17 4,450,829.58' Sep.
1,469,139 11.32
$16,621,435.04
- 0.15 11.16 e
EXHIBIT NO. 7, Page 2 y
i
/Intrn-System Billing Pagn 1 of 2 j' August.1975 EXCllANGE ENERGY Hills-Source MWH Per KW11 Charge 4
Moses #2 011 1,520 28.45 43,244.00 Moses #1 011 540 28.41 15,341.40 Lake Catherine #3 Oil 28 23.92 669.76 Lake Catherine #4 011 1,383 21.43 29,637.69 i
Ritchie #1 011 3,052 20.96 63,969.92 McClellan 011 4,963 19.90 98,763.70 Ritchie #2 011 8,287 19.38 160,602.06 Andrus 011 (Part.)
31,099 18.45 573,776.55 69 18.45 1,273.05 Waterford #1 011 (Part.)
U.E. (Firm Energy Return) 1,100
~
16.'4054871 18,046.04 Rex Brown #2 SFI Gas 6
15.56 93.36 i
TVA - RD 994 15.4643967 15,371.61 j
Rex Brown #3 SFI cas 28 15.25 427.00 Rex Brown #4 SFI Gas
.249 14.19 3,533.31 OG6E - RE 637 11.85375902 7,550.84 TVA - Economy 13 11.743383 152.66 Lynch #3 990 8.62 8,533.80 Couch #2 (Ark-La) 256 8.02 2,053.12 Ritchie #1 136 7.44 1,011.84 Lake Catherine #4 289 7.01 2,025.89 55,639 1,046,077.60 Sterlington #6 011 12,403 20.01 248,184.03 Ninemile Pt. #4 011 (2) 25,871 20.01 517,678.71 Little Gypsy #2 011 4,708 19.75 92,983.00 Waterford #1 011 145,120 18.60 2,699,232.00 17,404 18.51 322,148.04 Ninemile Pt. #3 011 (6)
CLECO - ES 5,872 17.53745632 102,979.94 OC&E - ES 11,240 17.50 196,700.00 Buras 2,379 17.17 40,847.43
/
PSO - RE 914 16.75 15,309.50
\\
Sterlington #5 UC 3,848 16.50 63,492.00 Rex Brown #2 SFI Cas 500 15.56 7,780.00 Rex Brown #3 SFI Gas 577 15.25 8,799.25 Sterlington #5 CSC #2 891 15.28 13,614.48 Buras Peaking 2,393 14.62 34,985.66 Rex Brown #4 SFI Gas 3,352 14.19 47,564.88 CLECO - RE
-3,221 13.9019525 44,778.19 Sterlington #6 UG 19,307-13.83 267,015.81 Sterlington #6 CSC #2 30,631 12.81 392,383.11 EDE - RE 356 12.39147287 4,411.36 OG&E - RE 17,923 11.85375902 212,454.92 Sterlington #6 CSC #1 13,136 11.80 155,004.80 Sterlington #6 C-P - LIG 10,992 11.80 129,705.60 TVA, Economy 1,708 11.743383 20,057.70 Sterlington #7 CSC #1 225 11.29 2,540.25
. Sterlington #7 C-P - LIG 21,019 11.29 237,304.51 e
ee-_
n
_em
LN Jre-SystenBilling Pagn 2 of 2 Gust 1975 EXCl!ANCE ENERGY Mills HkH Per KkH Charge Source Sterlington #6 TG 11,507 10.18 117,141.26
/
Sterlington #7 TG 1,088 9.74 10,597.12 U.E. (Firm Energy Return) 11,272 7.2706575 81,954.85 Ninemile Pt. #1 UG 17,569
- 5. 9.9 105,238.31 Ninemile Pt. #2 UG 10,726 5.30 56,847.80 Ninemile Pt. #3 UG 4,928 4.79 23,605.12 Ninemile Pt. #4 UG 1,396 4.76 6,644.96 TVA - RD 21,104 4.20188463 88,676.57 Sterlington #6 PA 6,000 3.51 21,060.00 Sterlington #7 PA 383 3.36 1,286.88 Ninemile Pt. #2 Texaco 4,868 3.25 15,821.00 Ninemile Pt. #3 Texaco 18,444 2.94 54,225.36 Ninemile Pt. #4 Texaco 113,225 2.92 330,617.00 Little Gypsy #2
_1,183 2.88 3,407.04 579,683
//.1 % " -
6,795,078.44 Michoud #1011 (5) 85 21.10 1,793.50 Michoud #3 011 (5) 93 20.03 1,862.79 178 3,656.29 Total Exchange 635,500 7,844,812.33 Weighted Average Cost = $ 7,844,812.33 = 12.34431523 Mills per KkH.
635,500,000 e
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- AL M $nt 2 Intra-Syntem Billing Page 1 of 2 September 1975 EXCl! MICE ENERGY Mills NWH Per KWil Charge Source Moses #2 011 30 28.59 857.~70 Lake Catherine #4 011 83 21.65 1,796.95 Ritchic #2 011 986 19.55 19,276.30 Andrus 011 (Part.)
31,212 18.77 585,849.24 Waterford #2 011 (Part.)
771 18.68 14,402.28 OG&E "ES" 326 17.50 5,705.00 UE - Firm Energy Return 4,736 16.3226867 77,304.24 TVA-RD 13,976 15.4643967 216,130.41 Rex Brown #4 SFI Cas 1,617 14.30 23,123.10 OGLE "RE" 3,543 12.2768095 43,496.74 681 11.5832183 7,888.17 SWEPCO "RE" EDE "RE" 162 8.544663 1,384.24 Lynch #3 6,799 8.62 58,607.38 Couch #2 (Ark-La) 1,440 8.02 11,548.80 Ritchie #1 2,160 7.44 16,070.40 Lake Catherine #4 21,056
.7.01 147,602.56 Ritchie #2 10,071 6.88 69,288.48 ANO #1 251 6.79 1,704.29 99,900
$1,302,036.28 Andrus 011 (Part.)
640 18.77 12,012.80 Waterford #2 011 (Part.)
52 18.68 971.36 OG&E "ES" 5
17.50 87.50 UE-Firm Energy Return 219 12.55570S6 2,749.70 OG&E "RE" 482 12.2768095 5,917.42 SWEPCO "RE" 11 11.5832183 127.42 T,VA-RD' 330 9.6825226 3,195.23 EDE "RE" 1
8.544663 8.54 New Madrid
'251 6.30 1,581.30 1,991 26,651.27
~
Sterlington #6 011 3,977 Ji oa 20.15 80,136.55 Ninemile Pt. #4 011 (2) 7,645 it n 19.82 151,523.90 Little Gypsy #2 011 3,434 iyai19.57 67,203.38 i
Ninemile Pt. #5 011 1,713 0 tt 19.21 32,906.73 ~
l l
Andrus 011 (Part.)
12,027 18.77 225,746.79 f
Waterfo'rd #1 011 54,032 I4 4118.83 1,017,422.56-Waterford #2 011 3,736
- y.n 18.83 70,348.88' Ninemile Pt. #3 011 (6) 2,996 18.55 55,575.80 f
CLECO "ES" 2,211 17.54218 38,785.76 f
OC&E "ES" 2,818 17.50 49,315.00 i
Buras 3,511 17.17 60,283.87' i
PS0 "RE" 539 16.75 9,028.25 l
Sterlington #5 UC 4,958 16.50 81,807.00 '
Rex Brown #2 SFI cas 59 15.67 924.53 Rex Brown #3 SFI cas 48 15.36 737.28 I
6 i
4
Attachmc'nt 2 Intra-System Billing P:ge 2 of 2 September 1975
+
EXCl!ANGE ENERGY Hills HW11 Per KWil Charge Source Sterlington #5 CSC #2 357 15.28 5,454.96 '
Buras Peaking 3,223 14.62 47,120.26' Rex Brown #4 SFI Cas 4,042 14.30 57,800.60 318 14.07 4,474.26' Sterlington #5 Pil-LIG 1 t7 13.83 330,135.93' Sterlington #6 UG 23,871 Sterlington #6 CSC #2 29,193 s.,i 12.81 373,962.33
OC&E "RE" 26,852 12.2768095 329,656.89 Sterlington #6 CSC #1 11,949
,, qo 11.80 140,998.20' Sterlington #6 PH-LIG 19,453
.432 13:30 229,545.40
SWEPCO "RE" 4,397 11.5832183 50,931.4)
Sterlington #7 CSC #1 217 11.29 2,449.93 '
/.'
Sterlington #7 PR-LIG 8,175 11.29 92,295.75-Sterlington #6 TG 9,742 10.18 99,173.56,-
402 9.74 3,915.48 '
Ster 11ngton #7 TG 360 8.544663 3,076.08 EDE "RE" UE - Firm Energy Return 11,677 7.7976571 91,053.24 Ninemile Pt. #1 UG 2,339 6.80 15,905.20 '
Ninemile Pt. #2 UG 6,619 6.02 39,846.38' Ninemile Pt. #3 UG 610 5.44 3,318.40' Ninemile Pt. #4 UG 24,259
- v. u? 5.40 130,998.60-21,108 4.20188463 08,593.33 TVA-RD 202 4.17 842.34' Sterlington #5 PA Sterlington #6 PA 2,724 3.51 9,561.24' 127 3.36 426.72 '
Sterlington #7 PA Ninemile Pt. #2 Texaco 452 3.27 1,478.04 '
Ninemile Pt. #3 Texaco 1,740 2.96 5,150.40-Ninemile Pt. #4 Texaco 119,208 2.94 350,471.52-120 2.89 346.80 Little Gypsy #2 437,440 l 0, ('7
$4,450,829.58 894 20.28 18.130.32 Michoud #3 011 (5) 5 894 18,130.32 Total Exchange 540,225
$5,797,647.45 Weighted Average Cost = $5,797,647.45 - 10.73191254 Mills per KWH 540.225,000 i
10-3-75
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EXHIBIT NO. 8 Paga 1 1
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ImISIME POWER & LIGHT CCMPAhY Municipal anergency Service Rate Schedule EAS-2 (Code #52)
Analysis of Revenues Year 1975 Contract demand
- 103,550 kw
- Includes only 14,500 kw for Ruston ibtal rexi::un individual demands 37,140 kw Total coincident demand on LP&L's 4 - 1975 peaks 8,326.5 kw Energy use 12,267,350 kwh Revenue to LP&L
$120,720.29 Revenue less minimum incremental fuel cost
- 7 mills per kwh
$34,848.84 Average Annual Monthly Revenue per kw of contract demand 51.16 S0.10 Revenue per kw of coincident demand on LP&L's 4 - 1975 peaks
$14.50
$1.21 Revenue (less minimu:n incremental fuel cost) per kw of coincident demand on LP&L's 4 - 1975 peaks
$4.19
$0.35
- (
O
.# N s
-w 3
I I
4 IIXJISIMM POER & LIGff CQfANY MJNICIPAL DEICENCY SE!WICE RNIE SCHEI)UIE EAS-2 (Otxhr 52)
DDWE 04 IP&L 4 IIIGIEST SYSHM PEAKS YEAR 1975 IP&L
- 1btal Lake Syston m nicipal Plaquanine Minden Rayville Ikmer Providence flouna M:ruce 7hilxxlaux Ruston N
IN 447813 554607 491362 18933 113489 32540P 404125 26870 450524 August 27 75 6 EM 2,837 6,552 0
0 2,800 0
1,736 0
0 2,016 0
August 28 75 2 IM 2,852 6,836 0
0 2,800 0
1,596 0
0 2,240 200 l
Sep.
2 75 6 IM 2,883 13,048 0
0 3,024 0
1,750 5,884 0
2,240 159 Sep.
3 75 5 IM 2,82' 6,870 0
0 2,912 0
1,792 0
0 2,016 150 Average 4 Domnds 2,848 8,326.5 0
0 2,884 0
1,718.5 1,471 0
2,128 125 t
Contract Daund 103,550 10,000 4,500 4,300 2,000 2,000 10,000 50,000 6,750 14,500*
Kwh Yesr 12,267,350 498,400 43,650 1,307,700 93,800 1,540,000 168,000 99,000 8,164,800 352,000 Revenue S
$120,720.29
$4,854.13
$421.99 S12,523.38 S883.60
$14,902.86
$1,683.64
$968.38
$81,092.76
$3,389.55 il uq
- Ruston - Present contract denund of 14,500 kw leing increased to 45,000 kw.
b
?
jisiana Power & Light Company Intra-System Billing l
jwOricans, Louisiana July 1975 ARevised 8-20-75
- Revised 10-22-75 In Account with M.ddle South Services, Inc.
=
Billing Energy (MWil)
Credit Charge Deliveries Receipts (Deliveries)
(Receipts)
PURCHASES AND S ALES Associated Companies 452,016 224
$5,375,527.02 S 2,958.01 Exchange Energy 11,660.00*#
Waterford Cap. Equal.
761,066.75 42,877 43,441.00 Waterford Energy Transmission Equal. Charge 234,498.46 33,582 62,601.56 LGP Gas Energy 4,357 Miss. SFI Cas Energy 528,475 4,581
$6,382,752.23*#$ 109,000.57 Non-Associated Companies e
$ 172,136.36 $
Net Balance for Sales 1,516.01 79 237,422.50 Energy Supplied for Sales 13,567 365,399.09 OG'&E "ES" 30,694 OG&E "RE" 6,323 UE Firm Return 52,483 3,723.73 TVA RD "E" 356 455.00 EDE "RE" 26 5,567.38 EDE "ES" 247 2.332.40 SWEPCO "ES" 98 1,965.44 PSO "ES" 148 148,137.50 CLECO "RE" 8,465 15,753.15 CLECO "ES" 1,322 TVA Economy "B" 2,278 4
UE Firm Energy Return (276,775.71)
[
49,547 TVA STP SWEPCO Energy Adjustment 1,285.67 g
for May 1975 14,111_
UE Firm Sales 63,737 116,007
$ 173,652.37 $ 505,263.20 592,212 120,588
$6,556,404.60*d$ 614,263.77 TOTAL Middle South Services, Inc. payable to LP&L 5
8-20-75 nr i
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Attachment
,,of siana Power & Light Company Intra-System Billing w Oricans, Louisiana August 1975 CRevised 9-25-75
,n
- Corrected 10-1-75
- Revised 10-22-75 In Account with Middle South Services, Inc.
Billing Credit Charge Energy (MWH)
(Receipts)
PURCHASES AND SALES Deliveries _
Receipts _
(Deliveries)
Associated Companics_
$6,795,078.44 227,608.00 **0 579,683 Exchange Energy Andrus Cap. Equal 73,971.00 Andrus Energy Transmission Equal. Charge 0 Cap. Equal. Adj. f or July 1975 56,567.70 3,066 70,224.08 Waterford Energy 4,836 242,883.11 SF1 Cas Energy 34,776 LGP Cas Energy 617,525 4,836 $7,094,529.25# $ 371,803.08 **#
Non-Associated Comoanies
$ 282,991.01 $
105,361.87 Net Balance for Sales 5,277 44,778.19 Energy supplied for Sales 3,221 17,537.50 CLECO "RE" 1,050 216,615.59 PSO "RE" 18,274 OG&E "RE" 53,892-TVA RD "E" 12,225 -
209,317.50 UE Firm Energy Return 11,961 20,057.70 OG&E "ES" 1,708 5,427.46 TVA Economy "B" 438 133,056.68 EDE "RE" 7,587-CLECO "ES" 9,949_
UE Firm Sales 15,226 110,356 $ 388,352.88 $ 646,840.62 s
S7,482,882.13# S1,018,643.70
- 632,751 115,192 TOTAL
$6,464,238.43
- Middle South Services, Inc payable to LP&L July adjustment eliminated due to r,evision of July billinC.
O 9-5-75
- '"'8" uisiana Power & Light Company Intra-System Billing Ucv Oricans, Louisiana September 1975
- Revised 10-22-75 In Account with Middle South Sc'rvices, Inc.
Billing Credit Charge Energy (MWil)
, Deliveries)_
(Receipts)
PURCHASES AND SALES
(
Deliveries _
Receipts _
Associated Companies
$4,450,829.58 $
437,440 61,355.20 #
Exchange Energy 247,069.51 Andrus Cap. Equal.
13,163 88,008.00 #
Andrus Energy Transmission Equal. Charge Andrus Cap. Equal. Adj. for @
August 1975 302,169.60.#
Waterford #2 Cap. Equal.
51,108.48 2,736 61,812.13 Waterford #2 Energy 4,307 189,744.88 SFI Gas Energy 26,955 LGP Gas Energy 467,131 17,470
$4,993,852.541 S 458,244.84 #
i Non-Associated Companies 84,843.97 Net Balance for " ales 53,602.02 2,754 52,437.23 Energy Supplied for Sales 4,527 360,962.75 SWEPC0 "RE" 29,402 52,062.50 OC&E "RE" 2,975 OG&E "ES" 42,436 TVA-RD "E" 14,799 9,020.25 UE Firm Energy Return 539 5,160.98 PSO "RE" 604 55,959.55 EDE "RE" 3,190 CLECO "ES" 3,815_
UE Firm Sales 6,569 98,472
$ 138,445.99 $ 535,611.26 473,700 115,942
$5,132,298.53! $ 993,856.10 '
TOTAL
$4,138,442.43 '
Middic South Services, Inc. payable to LP&L August adjustment eliminated due to revision of August billing.
9 10-3-75 nr t
DuiIBIT !O. 10 Iouisiana Power & Light Ccr,pany August 1975 Incrarental.Puel Net Capability Fuel Costs Unit Kilowatts Mills /Kwh Sterlington #5 43,750 16.35, 15.13, 13.92, 11.98, 8.71, 4.02 Sterlington #6 247,775 19.86, 13.68, 12.66, I
11.65, 10.03, 7.29, 3.36 Sterlington #7 231,850 20.53, 13.09, 12.11, 11.14, 9.59, 6.98, 3.21 Ninemile #1 69,000 23.07, 5.84, 3.51
/
Ninemile #2 112,500 22.22, 20.38, 5.15, 3.10 Ninemile w 169,837 20.02, 18.36, 4.64, 2.79 Ninsnile #4 783,000 19.86, 18.21, 4.61, 2.77 Ninemile #5 783,000 19.24, 2.68 Little Gypsy #1 247,775 19.27, 2.68 Little Gypsy #2 420,750 19.60, 2.73 Little Gypsy #3 582,250 19.47, 2.70 Waterford #1 388,000 18.45 Waterford #2 388,000 18.45 Buras 19,000 17.02, 14.47
EXHIBIT ?O. 11 Iouisiana Power & Light Ccnpany Develognent of Production Mders Federal Power Cccmtssion Form #1-1974 FPC*1 Pages 417 Mmmt S
500
$182,970 502 590,984 505 588,643 506 708,800 510 159,87f' 511 45,515'"
512 2',847,270 513 2,832,480 514 106,458
(
$8,062.,898 t 17,877,854,000 = $.000450 Allocation of G. A. O. - FPC #1 - Page 420 GAO -
1974 Totals
- Ovhd.
Generation (Iass Fuel)
$24,820,912
$9,000,671 Transmission 1,815,802 658,455 Distrihition 9,314,233 3,377,569
$35,950,947
$13,036,695
$9,000,671 e 17,877,854,000 = S.000503 1
/
).
(
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{
1 i
DGIIDIT 10.12 4
Fuel Mjust:nent Rider The fuel adjustrant clause contained in the rate schedule to which this rider is a part reads, "Plus or nunus.001 cent per bh used during the nonth for each.001 cent by which the average fuel cost per bh as de-livered to Ccnpany's custcmers during the second preceding calendar nonth is nere or less than.230 cent."
As used in the fuel adjustment clause the statement "--the average fuel cost per h h as delivered to Company's customers during the second pre-ceding calendar acnth
" is defined as FnVSm where Fm = Cost to C p y in the second preceding nonth of fossil and nuclear fuel used during the nonth, which shall include:
(a) fossil ard nuclear fuel consumed in the utility's own plants, and the utility's share of fossil and nuclear fuel consumed in jointly cwned or leased plants.
(b) the actual identifiable fossil and nuclear fuel costs associated with energy purchased for reasons other than identified in (c) below.
(c) the net energy cost of energy purchases exclusive of capacity or demand charges (irrespective of the designation assigned to such transactions) when such energy is purchased on an economic dispatch basis.
Included therein ma be such costs as the charges for ecorxry energy purchases ard the charges as a result of scheduled outage, all such kirds of energy being purchased by the buyer to substitute for its own higher cost energy; ard less (d) the cost of fossil and nuclear fuel recovered through intersystem sales including the fuel costs related to l
econcmy energy sales and other energy sold on an economic l
dispatch basis.
l Sm = Net bh input into Ccnpany's system for the supply of energy in its operating area for the second preceding conth. Said input shall be determined as the sum of (1) generation, (2) purchases, (3) interchange-in, less (4) intersystem sales referred to in (d) above, less (5) total system losses associated with wholesa h sales for resale delivery level.
The adjustnent factor computed above shall be further modified to allow the recovery of gross receipts and other similar revenue based tax charges occasioned by the fuel adjustment revenues.
l t
i i
l i
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l i
t Attachment IV J
P I
i-w.
s s uj.....,..
Attcchment IV g, f. _.
- 3..,,........ ;.,
j Volume No. 1 R. '.: l'I.T.
m /. s. -
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g..,
OFFICIAL STENCGRAPHERS' REPORT
'#"m, D. c. c.m BEFORE THE FEDERAL POWER COMMISSION t
i
{.
SUBJECT In the Matter of:
l,, '
LOUISIAUA POWIm AND LIGh? COMPANY l ^e -
,.I DOCKET NO. ER76-162
,! it 1 -;
PREuMEAnING CCITFERENCE
.1.
e.
?
Held at Wa3b.ington, D. C.
i,d h
'sf.
Tuesday, May 18, 1976 t,'.
i' t
.. ?
,(
i l(
i PAGES To 1
19 I
-N gtcEIVED Cohunbia Reporting Company W I " '
g.
O F FICI A L. 4tecofCRS RA,Ig g{(>[,
u 300 SKvRNTit STWRrT, S.T.
n'Asit!N GTON. D. O. 20024 TELEPHONE 737 8333
4 I
t 1
which, you might say, flesh out the interconnecticn.
i 2
PRESIDI:iG JUcGE:
very well.
3 Is there a difference betwecn what I assume would be 4
Supplement No. I to Rate Schedule FPC 54 Emergency Assistance, 5
which is now Service Schedule A, and the previous Emergency
[
6 Service Tariff?
I l
7 MR. CARTER:
I would say, Your Honor, that fundamentally l
h the Emergency Schedule is about the sar.c, except for it being i
a a larger interconnection.
It's an increased supply available.
10 PRESIDING JUDGE:
Was the increased supply mada available
{ at the request of Ruston?
gg 12 MR. CARTER:
Yes, sir.
9 g
13 PRESIDIMG JUDGE:
Very well.
ja Ms.
Nygaard, do you have any idec yet what the problems 15 are?
t 16 MS. NYGAARD:
Well, Your Honor, the Staff has no problems 37, with the calculations made by the Company, and the Fuel Adjust-I k
ment Clause we believe complies with Section 35.14 of the Cem-10 i
mission's Rules and Regulations, cs modified by R-517.
There-gg fore, as far as we are concerned, the only remaining issues 20 l
21 deal with the rationale for the pricing of demand charges in, I believe, Schedules 3 and C, and, again, possibly the rationale 22 23 behind the four mill adder appearing in some of these Schedules.
PRESIDING JUDGE:
Is it Schedules B and C or C'and D?
24 MS UYGAARD:
3 and C.
23 i
i
~
l
..n t
t l
5 f.
I PRESIDING JUDGE:
And the adder?
2' MS. NYGAARD:
And the four mill adder.
3 Therefore, we would hope for a rather expeditious proceed-h 4
ing.
5 PRESIDING JUDGE:
Mr. Goldberg, what problems does Ruston
(
6 have?
t 7
MR. GOLDBERG:
Your Honor, the material that was submittad i
e in response to Deficiency Letters by the Louisiana Power & Light
,i 9
Company is still under study, and, therefore, I would not be in
!l a position to give you any definitive response as to whether the to 11 information supplied by Louisiana Power & Light has satisfied 12 the inquiries made by the Commission.
- Q 13 There was an additional inquiry made by the Commission 14 which related to the charge to be made for supplemental power,
'i is and I think the incremental fuel costs with respect to Service i
16 Sch'odule C.
I understand Staff counsel to indicate that while
'5 they have no problems with the calculations, thera may still be 37 problems about whether the charges satisfy the rate-making i
la l
standards of the Act, if I und stood what Staff counsel meant.
- g PRESIDING JUDGE
Were these charges subject to negotiation 20 between Ruston and the Company, Mr. Goldberg, or were these 21 h
unilateral charges?
22 MR. GOLDBERG:
I think I probably have to tell you this, in 23 f
response to that question:
The matter of an interconnection a
l 25 agreement for these additional services arose as part of a
R t.
J 9
I PRESIDING JUDGE:
49 Well then we're in a different kind of 2
proceeding, obviously.
S Ms. Nygaard, your questions with respect to the demand (9
4 charge rationale in Schedules B and C and the four mill adder, 5
are they susceptible for at least greater determination if an f
G~
opportunity is made available for exchanging Data Requests, I
l 7
filing of data,' or conferences with the Company?
8 MS. NYGAARD:
Your Honor, we feel va have sufficient data, D'
and we're really not contemplating a Data Request, since the 10 responses to the various Deficiency Letters satisfied the 11 questions in those Latters.
I I
i 12 A caparata question, again, is whether once yo~u have those h
13 answers the rationale i=plicit in these utnbers is acceptable, i
14 and that's where we are now.
13 '
Certainly we would be very happy to have a satitlement dis-16 cussion with the parties to see if the rationale can be explaine<
i further, if you feel that's necessary, or' otherwiso get together 17
^
10 on it.
I i
39 PRESIDING JUDGE:
I, understand your problem. S6 now it's i
between Louisiana Pcwer & Light and Ruston and EPSA, and it 20 i
seems to me that this is mora in the nature of a di'spute over 21 h
the terms of a contract, which ought to be at least attempted to 22 l
23 make a determination by the parties themselves.
h 24 MR. GOLDBERG:
I can say this in the.t connection," 'four OS Honor:
We thought we could possibly be ready today' to talk
'~
0 9
Attachment V s
Attcchment V nncEIV EQ grp 30 76 UNITED STATES OF AMERICA PATE DELT.
FEDERAL PCWER CCa!ISSION s
1 i
ELECTRIC RATES:
\\.,. / j B fore Commissioners:
Richard L. Dunham, Chairman';
e Don S. Smith, John H. Holloman III, and James G. Watt.
Louisiana Power and Light
')
Docket No. ER76-162 Company
)
, ~. -
9 0
ORDER GRANTING PERMISSION TO WITHDRAW (Issued September 28, 1976)
"On,' July 12,,1976, the Electric Power System Assoqiation (EPSA) l_/ filed a " Notice of Withdrawal of Participation from Proceecling. "
For the reasons hereafter stated the Commission shall grant permission to withdraw.
This proceeding involves an executed Interconnection Agreement between Louisiana Power and Light Company (LP&L) and the City of Ruston, Louisiana.
By order issued April 30, 1976,
\\
the Commisston suspend.ed the rate schedule for one day, granted a petition to intervene of EPSA 1/, and gntered upon a hearing concerning the justness and reasonableness af'the Inter-connection Agreement.
l Public notice of EPSA's filing of Notice of Withdrawal was issued on July 19, 1976, with comments Eue on or before July 30, 1976.
No responses were received.
l 1/
EPSA is a non-profit corporation organized by Ruston and other Louisiana municipals.
Dr-94 l
j 0
O
\\
se
. Docket No. ER76-162 In its Notice rf Withdrawal EPSA states that as a result
~
of conferences held between representatives of EPSA and LP&L, the interpretation and application of questions respec ti=g certain provisions af the Interconnection Agreement have been resolved to EPSA's satisfaction.
Appended to its Notice of Withdrawal are illustrative calculations submitted to EPSA by Good cause having been LP&L which satisfy EPSA's concerns.
shown therefor, pernission to withdraw shall be granted.
On September 2,1976, the Presiding Administrative Law Judge issued an order granting Commission Staff's motio to the filing now have been resolved satisfactorily, The Presiding Judge's with respect and there remains no issue in dispute."
order took note of the July 12 Notice of Withdrawal of EPSA.
Consistent therewith and in light of the above, Docket No.
ER76-162 is hereby terminated.
The Ccmmission finds:
Good cause exists to grant EPSA permission to withdraw from this proceeding and to terminate Docket No. ER76-162.
The Commission orders:
EPSA is hereby granted permission to withdraw fram (A) this, proceeding.
(.
Docket No. ER76-162 is hereby terminated.
\\
l (B)
The Secretary shall cuase the prompt publication of (C) this order in the Faderal Register.
By. the Commission.
(SEAL)
Lois D, Cashell, Acting Secretary.
S 4
m e
o Attachment VI
/
8 e
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9
Attcchm:nt VI e
r4 Wb P O W E R & L I G H T! P 0 BOX 6008 + NEW CALEANS. LOUIS 1ANA 70174 i LCUISIANA 4 2 ccuncNcE Srmr
. (504) 366-2345
'%ifsI,sY$
u October 19, 1978 Federal Energy Regulatory Commission Washington, D.
C.
20426 Attention:
Mr. Kenneth F.
Plumb, Secretary Re:
Louisiana Power & Light Company Interconnection Agreement with Cajun Electric Cooperative, Inc.
Gentlemen:
Enclosed herewith for filing with the Commission pursuant to Part 35 of the Commission's Regulations are six copies of an
" Electric System Interconnection Agreement" between Cajun Electric Power Cooperative, Inc. (Cajun), Louisiana and Louisiana Power & Light Company (LP&L) dated May 25, 1976.
The Agreement was approved by the Rural Electrification Administration on August 17, 1977.
Also enclosed are the following:
1.
Letter from James R.
Smith (Cajun) to W. C.
Montgomery (LP&L) dated September 8, 1978.
2.
Notice of filing.
3.
LP&L check for filing fee.
t 4.
Letters cancelling the Cajun Agreements from M.
L.
Burgin (Cajun) to'J. M. Wyatt (LP&L) dated September 23, 1976 and September 9, 1977.
Among other things, this Agreement contemplates the construc-I tion by Cajun of generating stations and transmission service by LP&L to deliver power for Cajun.
Pursuant to Section 35.3 (b) of the Commission's Regulations, the Commission is respectfully requested to permit this Agree-l ment to be tendered for filing more than ninety days before it is to become effective and to accept for filing this Agree-ment with Cajun to become effective on May 29, 1980 or the date upon which the interconnection is first made available, e
Federal Energy Regulatory Commission Page 2 October 19, 1978 j
whichever is earlier.
Substantial amounts of money must be spent for construction of electric facilities and microwave metering and control to provide for the operation of this Agreement.
(See enclosed letter from James R. Smith to W.
C. Montgomery dated September 8, 1973.)
When it becomes effective, this Agreement will supersede LP&L Rate Schedules FERC Nos. 34, 35, 37, and 42.
FERC No. 34, Dixie Electric Membership Corporation FERC No. 35, Pointe Coupee Electric Membership Corporation FERC No. 37, Washington-St. Tammany Electric Cooperative, Inc.
f.
FERC No. 42, Louisiana Electric Cooperative, Inc. - now Cajun The letters from Cajun dated September 23, 1976 and September 9, 1977 informing LP&L that Cajun intends to terminate.the agree-ments are enclosed.
This Agreement makes available five service schedules as follows:
Service Schedule "EA-1" Emergency Assistance I
Service Schedule "SUP-1" Supplemental Power Service Schedule "SUR-1" Surplus Power Service Schedule "EE-1" Economy Energy Service Schedule "TS-1" Transmission Service 1
This Agreement is the result of arm-length negotations started in 1969 between LP&L and Louisiana Electric Cooperative Inc.
(predecessor of Cajun).
Negotiations continued for several years, and in 1972 negotiations were carried on with (1) Louis-iana Municipal Association Utilities Group, (LMAUG), represent-ing the generating municipalities in Touisiana, (2) Cajun, (3) the Atomic Energy Commission (now Nuclear Regulatory Commission),
and (4) the Department of Justice.
These negotiations resulted in agreements accepted by LMAUG and subsequently by Cajun which were a part of the requirements for obtaining a con-struction permit for the Company's Waterford No. 3 nuclear generating unit and represents the interpretation of our com-mitments to the Nuclear Regulatory Commission and to the De-l partment of Justice as to providing electric power for the generating municipalities and cooperatives in Louisiana.
t
Federal Energy Regulatory Commission Page 3 October 19, 1978 I
Electric System Interconnection Agreements with Service Schedules A - Emergency Assistance, B - Reserve Capacity, C - Supplemental Power, D - Surplus Power, E - Economy Energy, and F and F Transmission Service were accepted for filing in FERC Docket No. ER76-162, with the City of Ruston, Louisiana and made effective May 4, 1976, Rate Schedule FERC No. 54; in Docket No ER76-867, with the Town of Homer, Louisiana and made effective August 1, 1976, Rate Schedule FERC No. 57; in Docket No. ER76-868, with the Town of Rayville, Louisiana and made effective September 19, 1976, Rate Schedule FERC No. 58; in Docket No. ER76-870, with the Town of Lake Providence, Louisiadk and made effective August 16, 1976, Rate Schedule FENC No. 56; in Docket No.
ER77-405 with the Town of Jonesboro, Louisiana and made effective May 10, 1978, Rate Schedule FERC No. 59; and in Docket No. ER77-404 with the City of Monroe, Louisiana and
/
made effective May 24, 1977, Rate Schedule FERC No. 60.
The five service schedules in the LP&L-Cajun Agreement listed above are similar to the service schedules accepted'for filing j
in the Electric System Interconnection Agreements with the six municipalities set forth in the above dockets.
i SERVICE SCHEDULE "EA-1,"
" Emergency Assistance," provides for a rate which shall be the greater of (a) 17.5 mills per kwh or (b) the incremental cost per kwh plus five mills per kwh.
Since incremental cost plus five mills will be more-than 17.5 mills, (a) will probably never. apply.
The plus five mills per kwh rate was agreed to my the parties to replace plus four mills times 1.06 for losses which is in the Interconnec-tion Agreements with the municipalities because there will be many interconnection LP&L-Cajun points and it will he impos-(-
sible to account for power losses.
SERVICE SCHEDULE "SUP-1,"
" Supplemental Power," provides sup-plemental power to either party desiring to purchase supple-mental power and energy from the other when the supplying party has such power and energy available which contracts for such power and energy in accordance with the terms of this Agree-ment.
The rate is the same as in Service Schedule "C" on file for supplemental power in the Interconnection Agreements with the municipalities except that in Service Schedule EA-1 the plus five mills per kwh was agreed to by the parties to replace plus four mills times 1.06 for losses because there will be many interconnection points and it will be impossible to account for losses.
+->,+e'-w-w r
a--
-w>u--
N~-
- - - - - + - -
e------------w---*
r
Federal Energy Regulatory Commission Page 4 October 19, 1978 SERVICE SCHELULE "SUR-1,"
" Surplus Power" provides surplus power to either party desiring to purchase surplus power and energy from the other upon request by the purchasing party, when the supplying party, in its sole judgment, has determined that it has such power and energy available.
The rate is the same as tne Rate Schedule "D" on file for surplus power in the Interconnection Agreements with the municipalities except that the plus three mills per kwh was agreed to by the parties to replace the two mills times 1.06 for losses, be-cause there will be many interconnection points and it will '
be impossible to account for losses.
SERVICE SCHEDULE "EE-1," " Economy Energy" provides economy energy to either party desiring to purchase economy energy from the other upon request by the purchasing party, when the supplying party, in its sole judgment, has determined it has such economy energy available.
The rate is simply a " sharing of savings" calculated at the time of agreement between the parties and is the same as the Rate Schedule "E" on file for economy energy in the Interconnection Agreements with th. municipalities.
SERVICE SCHEDULE "TS-1,"
" Transmission Service" provides for the transmission of power and energy by LP&L over'its trans-mission and distribution facilities to and from Cajun to other entities and to Cajun's isolated distribution systems.
The rate is the same as the Rate Schedule "F" on file for transmis-sion service at transmission voltage (115 kv or higher).
The adjustment "second" has been added for transmission service at distribution voltage since Cajun will continue receiving trans-taission service at certain distribution voltage delivery points until such time that all delivery points are integrated into Cajun's transmission system.
'The rkva price is provided in case the rkva loads become excessive and have to be corrected.
s The cost study for transmission and distribution service was submitted as a part of the filing for Rate Schedule FERC No.
54, City of Ruston, Docket No. ER76-162.
It is respectfully requested that the Commission waive the requirements of its regulctions for submitting estimated l
sales and revenues beg cse future sales and revenues arc too unpredictable to be est. Raced with any accuracy, and it is l
requested that tt<
nc ssion also waive any other require-ments of its Ret,4,.:.3
.n order that the Agreement may be 4
accepted for fila.ng aim made effective as requested herein.
1 9
e
Federal Energy Rcgulatory Commission Pago 5 October 19, 15/8 Enclosed is Louisiana Power & Light Company's check in the amount of $100.00 payable to the Treasurer of the United States in accordance with Part 36.2 of the Com-mission's Regulations.
A copy of this transmittal letter with the attachments is concurrently mailed to Cajun.
If further information is required, please advise us or our attorney, Richard M. Merriman or James K. Mitchell, Reid & Priest, 1701 K Street, N. W.,
Washington, D. C.
20006.
Sincerely, W. C. Montgom y
Director of Rates & Res rch a
WCM:CHP cc:
Mr. James R.
Smith Cajun Electric Power Cooperative, Inc.
P. O. Box 578 New Roads, Louisiana 70760 Louisiana Public Service Commission One American Place, Suite 1630 Baton Rouge, Louisiana 70825 g
Mr. Richard M. Merriman/Mr. James K. Mitchell I
- q..+ g.; 37)
, E AW
./
pu is CA JUN ELECTRIC POWER COOPERATIVE INC.
P. O. B O X 5 7 8
- N EW AC AC S. LA. 70760
- NEW AC AOS (504) 638-8326 B ATO N A Q U G E (504) 383-2603
-
- sw John Randall President September 8, 1978
- u. E. Fletcher. Vice President J. s. a oceins. secreury. Treasurer Mort L. Burgin. General Manager Mr. W. C. Montgomery Director of Rates & Research Louisiana Power and Light Company 142 Delaronde Street New Orleans, Louisiana 70174
- Filing with FERC Electric System Interconnection Agreement between Cajun Electric Power Cooperative, Inc.
and Louisiana Power and Light Company
Dear Mr. Montgomery:
The said Interconnection Agreement dated May 25, 1976, signed by both parties, approved by the " United States Department of Agriculture Rural Electrification Administration" on August 17, 1977, shall become effective May 29, 1980 through May 28, 2015.
Cajun Electric has in operation a 230 MW gas fired generation station that provides service to Cajun'a member distribution cooperatives on the Gulf States System.
It has under construe. tion two 540 MW coal fired units scheduled for operation in 1979 and 1980.
These units are required to supply power to Cajun's members when existing power purchase agreements terminate in May,1980 with Central Louisiana Electric Company and Louisiana Power and Light Conpany.
The estimated cost of this generating facility is.$600,000,000.
In view of the fact that both Cajun and LP&L must spend substantial amounts of money for construction of electric facilities and microwave metering and con-trol to provide for the operation of this Agreement, we believe and request that LP&L proceed to make an early filing of this contract with the FERC.
In order to provide electric service to Cajun's seven member distribution cooperatives served by Louisiana Power and Light, it is necessary that Cajun have in service by May 1980, a Control Center with Communications and Telemetering Facilities to its delivery points from Louisiana Power and Light. Cajun has spent approximately S1,000,000 and has committed to spend an additional $7,000,000 on the above described facilities.
We will appreciate you filing the Interconnection Agreement with FERC and requesting an early approval.
If you require additional information, please advise.
Sinc Yely,
- me3D, RECEIVED
, eneral Manager SE 11'78 RATE DElT.
9
UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Louisiana Power & Light Company
)
Docket No. ER NOTICE OF PROPOSED ELECTRIC SYSTEM INTERCONNECTION AGREEMENT
(
1978)
Take notice that on 1978 the Louisiana Power & Light Company (LP&L) tendered for filing an Electric System Interconnection Agreement dated May 25, 1976 with Cajun Electric Power Cooperative, Inc. (Cajun) which provides in addition to Emergency Assistance Service, schedules for Sup-plemental Power, Surplus Power, Economy Energy, and Transmis-sion Service.
Among other things, the LP&L-Cajun Agreement contemplates the construction by Cajun of generating stations and transmis-sion service by LP&L to deliver power for Cajun.
LP&L requests that the proposed agreement be accepted for filing to become effective May 29, 1980, or the date upon wnich the interconnection is first made available, whichever is earlier.
Substantial amounts of money must be spent for construction of electric facilities and microwave metering and control to provide for the operation of this Agreement.
LP&L stated that a copy of thic filing was mailed to Cajun.
Any person desiring to be hea'rd or to protest said filing should file a petition to intervene or protest with the Federal Energy Regulatory Commission, 825 North Captol Street, N.
E.
Washington, D.
C.
20426, in accordance with Sections 1.8 and i
l l.10 of the Commission's Rules of Practice and Procedure (18CFR 1.8, 1.10).
All such petitions or protests should be filed on or before Protests will be considered by the Commission in determining the appropriate l
action to be taken, but will not serve to make protestants parties to the proceeding.
Any person wishing to becomo a party must file a petition to intervene.
Copies of this filing are on file with the Commission and are available for public inspection.
Kenneth F.
Plumb Secretary i
$7'
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C
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CAJUN ELECTRIC POWER COOPERATIVE,II'JC.
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3 P.O. BOX 570
- NCW ROADS (504) 630 6326 BATON ROUGE (SO4) 303 2603 September 23,197G John Rondolf. Choutman Alfred A. Rob.ason. Pret.dene
- 1. Scott McVeo, V4e Pres.dene J. S. Robbss. Sec. freon.
Mori L Svegs. General Monoge, Louisiana Power and Light Company P. O. Box 0008 New Oricans, Louisiana 70174
. ATTENTION: Mr. J. M. Wyatt, President Gentlemen:
Pursuant to the provisions of Article XIV, Section 14.02 of that certain document entitled " ELECTRIC SERVICE AGREEMENT Between Louisiana Power &
Light Company And Louisiana Electric Cooperative. Inc.'*, bearing date of May 29, 1970, and affecting electric service to, Bossier Rural Electric Membership Corpora-tion, Claiborne Electric Cooperative, Inc., Concordia Elcetric Cooperative, Inc.,
Northeast Louisiana Power Cooperative, Inc., South Louisiana Electric Cooperative Association, and Valley Electric Membership Corporation, this is to inform you that Cajun Electric Power Cooperative, Inc., intends to terminate that Agreement effec-tive with the expiration of its term on May 29,1980.
We would appreciate receiving acknowledgment of receipt of the notice on the copy enclosed.
Very truly yours, Ab M. L. Burgin(
General Manager M L B:ce Date Rcccived:
Y-2 7-78 LOUISIANA POWElt AND LIGilT COMPANY 2
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By:
n C)
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&y mpl/' q I
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{ Py, ','
_"P : /
CAJUN ELECTRIC POWER COOPERATIVE,INC.
g
- - 3 s, ~Au P.O. D O X S 7 0
- N EW R O A D S. LA. 70 7 60 + NEW ROADS (504) 638-6326 BATON ROUDC (SO4) 383-2 603 September 9,1977 John Rondelt. Cheermon Allred A. Rob.nson. Preudent T. Scott McVeo. Yke Prevdent J. S. Robb.ni. 5ec. freos.
Mori L Svegin. oeneral Monoger Louisiana Power and Light Company 142 Delaronde Street New Orleans, Loulslana 70174 ATTENTION: Mr. J. M. Wyatt, President o
Gentlemen:
Pursuant to the provisions of Article XIV of those certain documents entitled
" Electric Service Agreements between Louisiar.a Power and Light Company and Washington-St. Tammany Electric Cooperative, Inc."; " Louisiana Power and Light Company and Dixie Electric Membership CoIporation"; and " Louisiana Power and Light Company and Pointe Coupec Elcetric Membership Corporation" all dated September 14, 1968, and all assigned to Louisiana Electric Cooperative, Inc.,
presently known as Cajun Electric Power Cooperative, Inc., this is to inform you t!mt Cajun Electric Power Cooperative, Inc., intends to terminate these agreements
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on May 29,1980. Please consider this the notice of termination contemplated by said Article XIV.
We would appreciate receiving acknowledgement of receipt of this notice on the copy enclosed.
Very truly yours, MA 4 L M. L. Burgin General Manager M L B:cc Dato Received:
8- /1 " ) 7 LOUISIANA POWER AND LIGIIT COMPANY By:
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U. 5. DEPARTMEt4T OF AGRICULTURE RURAL ELECTRIFICATION admit 41STRAT10t1 REA BORROWER DESIGNATION Louisiana 30 Bavon 1'
THE WITHirt Elec tric System interconnection Acreament between Ca h:n Electric Pouer Cconerntiva. Inc,
,nd Louisiana Power and Licht Comeany dated 5/29/76.
SUBMITTED BY THE ABOVE DESIGNATED BORROWER PURSUAtlT TO THE TERMS OF THE LOAr4 CONTRACT,15 itEREBY APPROVED SOLELY FOR THE PURPOSES OF SUCH CONTRACT,
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FOR THE AOMsNisT 4 ATOR DATED sl/
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RESOLUTION RESOLVED that the Board of Directors of Cajun Elcetric Power Cooperative, Inc. does hereby approve and accept the terms, conditions and provisions of that certain " Electric System Interconnection Agreement between Cajun Electric Power Cooperative, Inc. and Louisiana Power & Light Company" submitted this date to the Board of Directors, dated as of May 25,197G, between the cooperative and Louisiana Power
& Light Company, does hereby authorize the President, A. A.
Robinson, to execute and deliver multiple originals thereof to Louisiana Power & Light Company; the offectiveness of the
" Electric System Interconnection Agreement between Cajun Electric Power Cooperative, Inc. and Louisiana Power &
Light Company" to be conditioned upon approval by the Admin-istrator of the Rural Electrictrifcation Administration.
CERTIFICATE I hereby certify that the above is a true and correct copy of excerpts from the minutes of Cajun Electric Power Cooperative, Inc., Board of Directors Meeting of May 25,1976.
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bins, Secretary k
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. ' ELECTRTC SYSTEM TNTERCONNECTION AGREEMENT
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BETWilliN CAIUN liLliCTRIC POWiiR COOPriRATIVli, INC.
AND LOUISIANA FOWER & LIGHT COMPANY 9
THIS AGREEMENT (hereinafter referred to as " Agreement") made this fd day of b u
, /87/,, by and between CAJUN ELECTRIC POWER
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COOPERATIVE, INC., (hereinafter referred to as " Cajun") and LOUISIANA POWER
& LIGHT COMPANY (hereinafter referred to as " Company").
. WITNESSETH THAT WHEREAS, the Company and Cajun each own and operate an electric system, and V(HEREAS, the public interest requires that each party shall make all provisions necessary to reasonably assure the continuous availability of electric service in sufficient amounts to supply all of its normal requirements, and WHEREAS, this Agreement contemplates the construction by Cajun of generating stations, and
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WHEREAS, this Agreement contemplates that the Company will provide transmission service to deliver power for Cajun, and WHEREAS, benefits will accrue to both the Company and Cajun by the interconnection of the two systems,'
NOW, TIIEREFORE, in consideration of these premises and the benefits accruing to cach party hereto, the Company and Cajun agree as follows:
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l ARTICLE I
'The Company and Cajun agree to electrically interconnect facilities whereby sources of electrical power and e'nergy can be made available to each other subject to the terms and conditions of this Agreement.
'Ihe connection of facilities may take the form of interconnection points or delivery points. An interconnection point is any connecdon of facilities where power may flow either to the Company or to Cajun. A delivery point is any connection where power can only flow to Cajun for its member cooperatives or to other entities (as
" entities" is defined in Schedule "TS-1").
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.it is contemplated under this Agreement that Cajun may deliver or receive power over the facilities of other utilities 'which are connected to the Company.
This condition shall be operative only if Cajun has in effect a transmission contract
.with those connected utilities, and the Company determines that Cajun's connection with said utility (ies) meets the criteria of the " Availability" paragraph of Schedule "TS-1. "
The Company and Cajun agree that the location and specifications of inter-annection points and delivery points under this Agreement shall be specified and l
set forth in Appendix A, " Points of Interconnection" and Appendix B, " Delivery Points, "
l attached hereto and properly executed by both parties. Capacity and associated energy will be available to Cajun from the Company and to the Company from Cajun in L
accordance with the conditions herein contained an'd the certain applicable Service Schedules designated as Service Schedule "EA-1, " Service S.nedule "SUP-1, " Service S'chedule "SUR-1, " Service Schedule "$E-1, " and Service Schedule "TS-1" attached hereto, when properly executed by both parties.
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When service is being taken by either party under any one or a combination of the above Service Schedules at any one or more points, it is agreed by both parties that the maximum capacity of the interconnection points as specified in Appendix A shall not be exceeded. In order to protect the integrity of the Company's, transmission system and the Company's and Cajun's tie facilities, connecting ties may be opened when such excess occurs.
ARTICLE II The Company and Cajun mutually agree that the implementation of this Agreement shall at all times comply with the then existing (or amended)
Operating Manuals of the North American Power Systems Interconnection Committee (NAPSIC) and the Southwest Power Pool (SWPP), including but not limited to the Operating Guides, Minimum Criteria for Operating Reliability and Control Performance Criteria of NAPSIC and the Operating Recommendations of the SWPP.
ARTICLE III To the extent its then existing transmission facilities are capable of accommodating the contemplated power flows, the facilitics that are necessary for Company to construct (as distinguished from facilities that Cajun may.have to construct) to effect each initial interconnection specified in Appendix A shall 9
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be provided by, owned, operated and maintained by the Company from its power source to the point of interconnection. Cajun will pay to the Company the cost of all facilities required to be added by Company in order to meet Cajun's request for any increase in the capacity of an interconnection, unless some other mutually agreed upon proportioning of such costs is reached by the parties, or unless a regulatory body of competent jurisdiction otherwise determines.. These added facilities shall also be owned, operated and maintained by Company.
Cajun recognizes that the Company operates as part of the Middle South Utilities System and that its operating companies' generation and transmission facilities are operated as one system to achieve economic dispatching. All accounting for generation and transmission costs are kept on a Middle South Utilities System basis and the incremental generation and transmission costs of the Company for the purposes of this Agreement are the incremental generation and transmission costs of the Middle South Utilities System.
Cajun shall own, operate and maintain, at its sole expense (or otherwise have the use of), the facilities on its side of the points of interconnection specified in Appendix A.
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Cajun shall be responsible, either directly or through its members'or other entities, for owning, operating and maintaining the facilities on its side of the points of delivery specified in Appendix B.
In order to protect the integrity of its system operations, the Company reserves the right to approve all proposed protective equipment and relaying to be owned or 'used by Cajun to effect each interconnection and delivery point.
Company reserves the right to operate and maintain any protective and control 1.~
equipment of Cajun (including its member cooperatives), oeother entities whenever such equipment may affect the integrity of Company's system, for Cajun's account.
ARTICLE IV Service schedules as indicated above will set forth the type of service to be supplied, the terms and conditions of such supply and the charges to be paid' therefor, allin accordance with the conditions outlined in such service schedule when signed and accepted by authorized officials of the parties hereto. Each service schedule so authorized shall become a part of this Agreement for the term hereof or for such shorter term as may be provided in the service schedule.
Service Schedules hereunder are as follows:
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SERVICE SCHEDULE "EA-1" -- This schedule sets forth the conditions
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under which emergency power and energy, as described threin, may be supplied to either Cajun or the Company.
SERVICE SCHEDULE "SUP-1"-- This schedule sets forth the terms and conditions under which supplemental power and energy, as described therein, may be supplied to either Cajun or the Company.
SERVICE SCHEDULE "SUR-1"-- This schedule sets forth the terms and conditions under which surplus power and energy, as described therein, may be supplied to either Cajun or the Company.
SERVICE SCHEDULE "EE-1"-- This schedule sets forth the terms and conditions under which economy energy, as described therein, may be supplied
' to either Cajun or the Company.
SERVICE SCHEDULE "TS-1" -- This schedule sets forth the terms and conditions under which transmission service may be available for the transmission
-s of nower and energy over the transmission facilities of the Compmy.
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ARTICLE V i
Each party shall take all reasonable measures and exercise due diligence 1
j to insure the continuity of service through its respective portion of its facilities.
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Each party shall, insofar as practicable, protect, operate and maintain its i
system and facilitics in such a' manner as to avoid or minimize the likelihood of disturbances originating in its system causing impairment of service in the system of the other.
4 Each party shall arrange to operate as separate control areas according to the guides and recommendations spelled out in Article II and shall plan to constantly provide sufficient capacity to carry the load in its control area at 60 hertz with provision for adequate reserve and regulating margin.
Each party agrees to operate its system (control area) in accordance with the NAPSIC Operating Manual supplement titled'" Control Performance Criteria. "
Operadon in accordance with this supplement shall be known as Control Area Responsibility.
Each party shall endeavor to operate at all times in such a manner as not to impose its regulating burden on.he interconnected systems.
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Each party shall balance continuously its generatica against its load, with allowance for losses as provided for in Schedule "TS-1" so that the net loading on its tie lines agrees with the scheduled net interconnection, plus or minus its l.
frequency bias obligation..
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ARTICLE VI Since the systems of the Company and Cajun will be operated in parallel, Cajun hereby recognizes that, under such parallel operations, the electric systems of each party are so connected that any electric power and energy (both real and reactive) that flows through the interconnection is under control of Cajun with respect to rate of flow. Cajun accordingly agrees that it will install load control devices capable of controlling its generation at all times.
The control devices shall be of sufficient accuracy to assure proper operation under this Agreement.
s It is the intent that each party shall provide for the supply of its reactive requirements, including appropriate reserve, and its share of the reactive requirements and control on interconnecting transmission circuits.
Each party shall coordinate the utilization of voltage control equipment to maintain transrrission voltages and reactive flows at optimum levels for system stability, e
ARTICLE VII The Company and Cajun agree that it is the intent and requirement of this
. Agreement that each party provide its own system load requirements and e
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adequate reserves by the installation of generating capacity, by purchase of reserves, and/or purchase of supplemental power, sufficient at all times to carry its own load.
Neither party assumes any responsibility for the supply of any electric power and/or energy to the other party, except as specifically provided for in an applicable service schedule properly executed and attached hereto.
Each party agrees that if either party is unable to meet its control area responsibility and is unable to purchase power from others directly or indirectly,'
it is obligated to initiate load relief measures untilits control area load responsibility is satisfied.
In order to provide rapid load relief in the event of an emergency covering an extended area, each party agrees to install and keep active underfrequency relays capable of shedding load in increments as specified in the SWPP manual.
Restoration of service after load relief measures have been initiated by said underfrequency relays shall be in a'ccordance with procedures outlined in the manuals referred to in Article II.
It is further agreed that adequate r'eserves as required herein shall be the percentage (or other measure) as may be in effect by operating groups of which the Company is a part, or that percentage (or other measure) prescribed by SWPP of NAPSIC, whichever is greater.
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To insure ready availability, the Company and Cajun agree that each will hold capacity of not less than six (6) per cent of its annual projected peak demand as " Ready Reserves, " or as hereafter prescribed by the SWPP of NAPSIC. When either party is furnishing power to the other party, said other party shall maintain Ready Reserves of not less than six (6) per cent or as hereafter prescribed by the SWPP of NAPSIC in order to maintain the interchange schedule.
. ARTICLE VIII All measurement of electrical power and energy delivered by one party to the other under the appropriate service schedule shall be made by suitable kilowatt, kilovar, and kilowatt-hour meters. Periodic testing of metering equipment as agreed upon from time to time shall be made jointly by representa-tives of the Company and Cajun.
In the event of malfunction of the meter or $1eters, the amcunt of power and energy delivered during the period of such malfunction shall be estimated 1
by and agreed upon by both parties hereto from the best available data.
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e ARTICLE IX As outlined in Article II, the systems of both parties are to be operated in accordance with the Operating Manuals of NAPSIC and the Southwest Power Pool of NAPSIC, copies of which are available at the Southwest Power Pool office at 210 Mart Building, Little Rock, Arkansas, 72205.
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In order to administer this Agreement, the Company and Cajun will each appoint one representative and one aiternate to serve in the absence of the
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representative, to act for it in matters pertaining to the detailed operating arrangements of this Agreement.
Any deviations allowed one party from the obligations referred to above will be at the sole discretion of the other party and such deviations may continue for only so long as the other party, in its sole judgment, feels that such deviations do not impair the other party's ability to meet its obligations with other interconnected systems.
.s ARTICLE X The Company and Cajun agree that should either the Company or Cajun fail or refuse to perform any act or obligation created by this Agreement or e
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any service schedule attached hereto and made a part hereof, then specific performance may be demanded of the defaulting party, and if such demand is not satisfied, the aggrieved party may demand relief in court, reserving its rights to damages, if any be suffered by reason of such default.
However, failure to perform a' the result of an Act of God, war, civil disturbance, order of a s
" governmental regulatory body, or like occurrence beyond the control of the parties hereto, shall not constitute a default.
ARTICLE XI Each party assumes all responsibility on its side of the points of intercon-nection and points of delivery for the power and energy delivered, as well as the electrical installations and appurtenances used in connection therewith, and shall save the other party harmless from and against all claims for injury or damage to persons or property on its side of the points of interconnection and points of' delivery.
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ARTICLE XII Any waiver by either party of its rights with respect to a default under this
' Agreement, or with respect to any other matter arising out of or in connection with this Agreement, shall not be deemed a waiver with respect to any other matter arising in connection with this Agreement, nor shall it be deemed a waiver with respect to any subsequent default or matter under this Agreement.
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13 ARTlCLE XIll Any notice, demand or request provided for in this Agreement or given in connection with this Agreement shall be deemed to be properly given when sent by registered mail, postage prepaid, to Louisiana Power & Light Company, 142 Delaronde Street, New Orleans, Louisiana 70174, for the Company or to Cajun Electric Pow'er Cooperative, Inc., P. O. Box 578, New Roads, Louisiana, 70760, for Cajun.
ARTICLE XIV i
This Agreement shall bind the Company and Cajun from May 29, 1980, or the date upon which the interconnection is first made available, whichever is earlier, through May 28, 2015, and thereafter for 5-year periods unless terminated by written notice given by one party to the other not more than forty-eight (48) months nor less than thirty-six (36) months prior to the expiration of the original term or any extension thereof. At any time, the parties may extead the original term or renewal period of this Agreement.
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ARTICLE XV This Agreement is subject to the approval of regulatory bodies having jurisdiction, and either the Company or Cajun may request lawful change in e
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14 servicc schedules or contract in accordance with such jurisdiction.
- However, nothing contained herein shall b'e construed as affecting in any way the right of the party furnishing service under this rate schedule to unilaterally make application to the Federal Power Commission for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Commission's Rules and Regulations promulgated thereunder.
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ARTICLE XVI Neither party to this Agreement shall assign or otherwise dispose of its i
rights or interest in this Agreement in whole or in part,.other than the Company i
to a successor organization, or Cajun, in the event of default, to the Administrator of the Rural Electrification Administration of the United States of America, without the written consent of the other party.
ARTICLE XVII
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'Iliis Agreement, including any amendments and/or supplements, shall not be binding upon the parties hereto until. approved by the Administrator of the Rural Electrification Administration of the United States of America.
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15 IN WITNESS WHEREOF, the parties hereto have caused their corporate names to be subscribed hereto; signed by their duly authorized officers, and their corporate seals have been attached.and attested by the Secretary of Cajun and the Secretary of the Company as of the day, month, and year first above written.
ATTEST:
CAJUN ELECTRIC POWER COOPERATIVE, INC.
4 By MpjM e 0,0s,1gd
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pcretary
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/ Alfred A. Robinson ATTEST:
LOUISIANA POWER & LIGHT COMPANY
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By
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s Secretary G. D. McLendon s
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SEI1VICE SCilEDULE "EA-1" EMERGENCY ASSISTANCE This Service Schedule is made and entered into this,,f[ day of Mg
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/g'/ 6, as a supplement to the Electric System Interconnection Agreement entered into on h,u, f.[ //"//s by and between Cajun Electric
.f Power Cooperative, Inc. and Louisiana Power & Light Company.
AVAILABILITY Service under this Schedule is available where interconnecting facilities of adequate capacity and suitable phase and voltage are proximate to the points of interconnection or have been mutually arranged, and service is to be de-livered by one party to the other according to the provisions of a mutual agreement. Service under this schedule is available for a maximum period of seventy-two (72) consecutive hours for each particular emergency.
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APPLICATION
- Ihis Schedule is applicable to mutual emergency assistance electric service to and from an electric system which supplies its own power and energy require-l ments.
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-Service is to be delivered by each party to the other at the points of interconnection specified in Appendix A and measured by suitable kilowatt, kilovar, and kilowatt-hour meters. Service is deliverable hereunder only when the supplier has been given notice as detailed herein as to the require-ments, and supplier can provide the requested amount of capacity. Supplier is obligated to make deliveries only to the extent it can, in its sole judgment, do so witlyout jeopardizing service to its own customers.
Service supplied hereunder is for emergency assistance only, in case of an emergency or breakdown affecting the system responsibilities of the purchaser. Deficiencies in power supply occasioned by lack of dependable generating capacity to meet load requirements, including adequate reserec3, shall not be considered an emergency condition under this Agreement.
TYPE OF SERVICE Alternating current, 60 hertz, three phase and at a standard transmission
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voltage of 115,000 volts or higher as available.
NET MONTHLY BILL Rate: 1.
'Ihe Seller will furnish the sch - Juled emergency power and energy from its system, and the rate shall be the greater of the following:
.(a) 17.5 mills for each kwh of emergency power and energy scheduled by either party t6 the other during the month, or 9
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(b) the incremental cost per kwh including start-up and other incremental operation and maintenance costs, if any, of fossil fuel plus 5 mills per kwh -- to be agreed upon at the time of request.
2.
If, however, conditions on the Seller's system arcsuch that Seller determines it is unable to supply the emergency service requested from its own system, then if requested by the Buyer, Seller will attempt to purcha.se such emergency service from other systems interconnected with Seller and deliver same to Buyer. In the event such a purchase is made as requested by Buyer, such emergency service shall be billed by Seller and paid.
for by Buyer at the Seller's cost for such purchased energy in-cluding start-up costs, if any, plus 10%3 Adjustments:
l First - Plus the applicable proportionate part of any directly allocable,
tax, impost or assessment imposed or Icvied by any governmental authority after the effective date of this Schedule, which is assessed or levied against the Company or Cajun or directly affects the Company's or Cajun's cost of I
operation and which the Company or Cajun is legally obligated to pay on the,
basis of meters, customers, or rates of, or revenue from electric power
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and energy or service sold, or on the volume of energy generated, transmitted, I
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mm purchased for salc, or sold, or on any other basis where direct allocation is possible.
Second - If energy is supplied from a nuclear plant, revision may be made in this Schedule to compensate for investment and cost of fuel in nuclear generation as compared to fossil generation, as approved by the appropriate regulatory body.
CONFIRMATION OF EMERGENCY REQUIREMENTS Immediately after an emergency has occurred on either party s system, and the affected party does not have resources to supply its control area responsibility, the affected party may notify the other party of the amount of capacity it requires along with details of the trouble it is experiencing and its best estimate of the time required to get its system back to normal. The-party receiving such a request shall then agree to what amount of capacity, if any, it can supply to the affected party for that particular emergency and the anticipated cost of such energy. When emergency energy is being taken,-
each morning the dispatchers of the parties will agree on the amount to be billed for energy taken the previous day. The details of each transaction outlining the capacity agreed to, the trouble experienced, and the time in-volved will be confirmed in writing by the affected party within forty-cight (48) hours after cach such cmergency.
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EA-5 PAYMENT The Net Monthly Bill is due and payabic each month upon presentation' by each party to the other.
CONTRACT PERIOD
'Ihe ' term of this Schedule shall be from May 29, 1980 through May 28, 2015, and thercafter for 5-year periods unless terminated by written notice given by'one party to the other not more than forty-eight (48) nor less than l
thirty-six (36) months prior to the expiration of the original term or any extension thereof.
REGULATORY APPROVAL This Service Schedule is subject to the approval of regulatory bodies having jurisdiction, and either the Company or Cajun may request lawful-How-change in this Service Schedule in accordance with such jurisdiction.
ever, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this rate schedule to unilaterally make application to the Federal Power Commicsion for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Commission's Rules and Regulations promulgated thereunder.
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IN WITNESS WilEREOF the parties hereto have caused their corporate names to be cubscribcd hereto, signed by. their duly authorized officers, and their corporate scals have been attached and attested by the Secretary of Cajun and I
the Secretary of the Company as of the day, month and year first above writ-l ten.
l ATTEST:
CAJUN ELECTRIC POWER COOPERATIVE, INC y%
By 5 t//,
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Alfred A. Robinson s
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ATTEST:
LOUISIANA POWER & LIGHT COMPANY rh GM By jf. }&f'/
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Secretary G. D. McLen' don 1
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SUP-1 SERVICE SCilEDULE "SUP-1" SUPPLEMENTAL POWER This Service Schedulc ~is made and entered into this J[ day of f)f@
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, as a supplement to the Electric System Interconnection Agrecmon't, cntered into on hAv 4[ /17 (,
, by and ber.veen Cajun Electric
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i Power Coot erative, Inc. and Louisiana Power & Light Company.
AVAILABILITY Service under this Schedule is availabic where interconnecting facilities of adequate capacity and suitabic phase and voltage are proximate to the points of Interconnection or have been mutually arranged, and service is to be delivered by one party to the other according to the provisions of a mutual Agreement. Supplemental power is only available for a period of not less e
than twelve (12) consecutive months.
i APPLICATION
'Ihis Service Schedule is applicable to either party desiring to purchase Supplemental Power and Energy fron he other when the supplying party has such Power and Energy available, which contracts for such Power and Energy shall be in accordance with the terms hercin sct forth and the terms of the Interconnection Agreement to which this Service Schedule "SUP-1," when,
properly executed by both partics, shall be attached and made a part thercof.
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.SUP-2 Supplemental power, as contemplated by this Schedule, may be utilized by cither party to fulfill its powe'r supply requirements. Supplemental power, including associated reserves, is power from the supplicr's resources which is in excess of its projected peak demand plus required reserves necessary to meet the purchasing party's peak demand.
SUPPLEMENTAL POWER SCHEDULING 1:
Supplemental Power requirements will be the capacity agreed to by "
rmrcsentatives of both parties, and set forth on the basis of the maximum annual.
Such annual amounts of capacity required for each of the years specified.
Supplemental Power requirements shall be reduced to writing, accepted by both parties, and attached hereto and made a part of this Service Schedule "SUP-3. "
Associated energy shall be available with Supplemental Power capacity purchases in accordance with mutually agreed to schedules sub'mitted twenty-four At the time of (24) hours ir, advance or as mutually agreed to by the parties.
- heduling such energy, an estimate of the incremental cost shall be furnished by the i
l If the cost changes appreciably from the estimate, the purchasing supplying party.
party will be notified and allowed to amend the amount of energy scheduled if-such 1
amendment does not adversely affect the supplying party.
I SUPPLEMENTAL POWER RESERVES It is hereby agreed by both parties that Supplemental Power and Energy purchaad by either party from the other under this Service Schedule "SUP-1" shall be delivered to the purchasing party on a firm basis, backed up with the minimum reserve requirements of the supplying party.
SUP-3 TYPE OF SERVICE Alternating current, 60 hertz, three phase and at one standard trans-mission voltage of 115,000 volts or higher as available at the interconnection points as specified in Appendix A.
NET MONTilLY BILL
' Rate: Supplemental Power
$1.75 per kilewatt per month for the maximum by demand contracted for during any 60-minute interval.
Energy: 'Ihc rate for energy shall be the incremental cost per kwh of fossil fuel plus 5 mills per bvh.
Adjustments:
First - Plus the applicable proportionate part of any directly allocable tax, impost or assessment imposed or levied by any governmental authority after the effective date of this Schedule, which is assessed br levied against the Company or Cajun or directly affects the Company's or Cajun's cost of s
operation and which the Company or Cajun is legally obligated to pay on the basis of it.cters, customers, or rates of, or revenue from electric power and energy or service sold, or on the volume of energy generatec, transmitted, purchased for sr.lc, or sold or on any other basis where direct allocation is possible.
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.Second - If energy is supplied from a nuclear plant, revision may be made in this Schedule to compgnsate for investment and cost of fuci in nuclear j
generation as compared to fossil generation, as approved by the appropriate
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regulatory body.
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- PAYMENT, j
'Ihc Net Monthly Billis due and payable each month upon presentation by cach party to the other t
t "0NTRACT PERIOD
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The term of this Schedule shall be from May 29,1980 through May 28, 2015, and thercafter for S-year periods unicss terminated by written notice given by i
i one party to the other not more than forty-eight (48) nor less than thirty-six (36) months prior to the expiration of the original term or extension thereof.
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REGULATORY APPROVAL l
This Service Schedule is subject to the approval of regulatory bodies having jurisdiction, and either the Company or Cajun may request lawful change in this i
Service Schedule in accordance with such jurisdiction. However, nothing con-tained herein shall be construed as affecting in any way the right of the party furnishing service under this rate schedule to unilaterally make application to the Federal Powcr Commission for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section t
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SU.l.)-5 205.of the Federal Power Act and pursuant to the Commission's Rules and Regulations promulgated therc.under.
IN WITNESS WHEREOF the parties hereto have caused their corporate names to be subscribed hereto, signed by their duly authorized officers, and their corporate seals have been attached and attested by the Secretary of Cajun and the Secretary of the Company as of the day, month and year first above written.
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e ATTEST-CAJUN ELECTRIC POWER COOPERATIVE, INC.
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By
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Secretary
/ ~ Alfred A. Robinson ATTEST:
LOUISIANA POWER & LIGHT COMPANY
$$d By ha N M Yr s
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Secretary G. D. McLendon 9
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SUR-1 SERVICE SCIIEDULE "SUR-1" SURPLUS POWER This Service Schedule is made and entered into this 4[ day of )7) 117/,
, as a supplement to the Electric System Interconnection Agreement entered into on })1.w,1[ /4'/f, by and between Cajun Electric Power
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Cooperative, Inc. and Louisiana Power & Light Company.
AVAILABILITY Service under this Schedule is availabic where interconnecting facilities of adequate capacity and suitable phase and voltage are proximate to the point of interconnection or have been mutually arranged, and service is to be delivered by onc party to the other according to the provisions of a mutual Agreement.
APP 5.ICATION This Service Schedule is applicable to either party desiring to purchase i
Surplus Power and Energy from the other upon request by the Purchasing Party, and when the Supplying Pa):ty, in its sole judgment, has determined that it has such power and energy available and can' supply such quantities as agreed upon, and the Purchasing Party contracts for such Surplus Power and Energy in accordance with the terms hercin set forth in this Schedulo "SUR-1" and the terms of the Interconnection Agrccment to which this Service Schedule "SUR-1,"
i
SUR-2,
when properly executed by both parties, shall be attached to and made a part.
Surplus Power for th purpose of this application shall me.
that capacity available over and above the Supplying Party's total system requirements, including reserves, and in no sense implies the installation of capacity for the account of the Purchasing Party.
SORPLUS POWER SCHEDULING When either party desires to purchase and schedule deliveries of Surplus Power and Energy frcm the other, the Purchasing Party must notify the Supplying Party, in writing, stating the amount of capacity require'd, the inter-val of time during which such capacity will be required and an estimate of the energy requirements to accompany the capacity sale. The Supplying Party shall, in its sole judgment, then determine whether all or any part of such Surplus Power and Energy can be supplied and, if so, shall determine and notify the Purchasing Party of the amount and schedule of such Surplus Power and the amount and price of accompanying energy which can be supplied or deemed to have been supplied by the Supplying Party.
Neither party shall be obligated to purchase or to supply Surplus Power and Energy, unless and until both parties have agreed to do so, in accordance with this Service Schedule "SUR-1," in a written agreement executed by an authorized officer of each party.
e
SU R-3" l
TYPE OF SERVICE Alternating current, 60 hertz, three phase and at onc standard trans-mission voltage of 115,000 volts or higher as available at the interconnection points specified in Appendix A.
ADJUSTMENT FOR NON-AVAILABILITY In the event of an interruption or a curtailment of service for a period of more than thirty (30) consecutive minutes in any scheduled hour, the capacity irge for the current billing month for service under this Schedule SUR-1 shall be reduced to reflect such interruption. The amount of the reduction for a totalinterruption shall be on the basis of a ratio, the numerator of which shall be the duration of such totalinterruption and the denominator of which shall"a the actual number of scheduled hours of delivery during the billing moath in which the interruption or curtailment occurred.
When only a portion of capacity is interrupted, appro'priate proration shall
>e mado giving due weight to the capacity actually delivered.
NET MONTHLY BILLING Rate: Surplus Capacity
$1.25 per kw per month for the maximum kw demand contracted for during any 60-minute period.
Energy:
"Ihc cncrgy charge por month shall be.the incremental cost per kwh of fossil fuel plus three mills per kwh.
t
SUR-4 Adjustments:
First - Plus the applicable proportionate part of any directly allocable tax, impost or assessment imposed or levied by any governmental authority after the effective date of this Schedule, which is assessed or levied against the Company or Cajun or directly affects the Company's or Cajun's cost of operation and which the Company or Cajun is legally obligated to pay on the basis of meters, customers, or rates of, or revenue from electric power and energy or service solh, or on the volume of energy generated, transmitted, purchased for sale, or sold, or on any other basis where direct allocation is ossible.
Second - If energy is supplied from a nuclear plant, revision may be made in this Schedule to compensate for investment and cost of fuel in nuclear generation as compared to fossil generation, as approved by the appropriate regulatory body.
I
?AYMENT s
Tie Net Monthly Bill is due and payable each month upon presentation by cach party to the other.
CONTRACT PERIOD He term of this Schedule shall be from May 29,1980 through May 28, 2015, and thercafter for 5-year periods, unless terminated by written notico given f
by one party to the other not more than forty-cight (48) nor less than thirty-six
SUR-5.
(36) months prior to the expiration of the original term or any extension thereof.
REGULATORY APPROVAL This Service Schedule is subject to the approval of regulatory bodies having jurisdiction, and either the Company or Cajun may request lawful change in this Service Schedule in accordance with sur jurisdicti,on. However, nothing
. contained hercin shall be construed as affecting in any way the right of the party
~
furnishing service under this rate schedule to unilaterally make application to ohe Federal Power Commission for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Commission's Rules and Regulations promul' ated thereunder.
g IN WITNESS WHEREOF, the parties hereto have caused their corporate names to be subscribed hereto, signed by their duly authorized officers, and their corporate scals have been attached and attested by the Secretary of Cajun and the Secretary of the Company as of the day, month and year first above written.
ATTEST:
CAJUN ELECTRIC POWER COOPERATIVE, INC.
-k By
/NrJ [
h411iA
/
Secretary
~
/ ' Alfred A. Robinson ATTEST:
LOUISIANA POWER & LIGIlT COMPANY h, )]{' f ] _,
fl?
By Secretary
. G. D. McLendon ~
SERVICE SCilEDULE "EE-1"
' EE,1 ECONOMY ENERGY His Service Schedule is made and entered into this ff day of )%
/ 9 ')6
/
, as a supplement to the Electric System Interconnection Agreement entered into on w A[ J476
, by and between Cajun Electric Power
, f Cooperative, Inc. and Louisiana Power & Light Company.
AVAILABILITY Service under this Schedule is available where interconnecting facilities of adequate capacity and suitable phase and voltage are proximate to the point of rconnection or have been mutually arranged, and service is to be delivered by one party to the other according to the provisions of a mutual Agreement.
Either party is entitled to receive economy energy hereunder only to the extent that such party has alternative dependable capacity, including adequate i
, reserves, concurrently available that would otherwise be used.
i Eccnomy energy is immedictely iecallable by the supplying party or cancellable at any time by the purchaser.
1
- n. PLICATION This Service Schedule is applicable to either party desiring to purchase Economy Energy from the other upon request by the Purchasing Party, and when the Supplying Party, in its sole judgment, has determined it has such Econom Energy available and desires to make such Economy Energy availabic to the Purchasing Party under the terms and conditions herein set forth in this Service Schedule "EE-1" and the terms of the Interconnection Agreement to which this Service Schedule "EE-1, " when properly executed by both parties, shall be anached and made a part thereof.
=
m, EE-2 TYPE OF SERVICE Alternating current, 60 hertz, three phase and at one standard transmission voltage of 115,000 volts or higher as available.
ECONOMY ENERCY SCHEDULING When either party desires to purchase Economy Energy, it will notify the l Supplying Party, indicating the amount and time interval of such desired pur-chases of Economy Energy.
If the Supplying Party, in its sole judgment, determines it has such Economy Energy available and wishes to sell such Economy Energy to the Purchasing Party in accordance with this Service Schedule "EE-1," it shall promptly notify the Purchasing Party.
Nothing herein shall be construed as obligating either party to reserve Economy Energy for the other. Each party shall have the right, at all times, to i
dispose of or make such other use of its Economy Energy as it may se' f*t.
ECONOMY ENERGY RATE
'Ihe rate for Economy Energy scheduled under this Service Schedule "EE-1" l
shall be on a " sharing of savings" basis calculated at the time of agreement j
between the parties for any specific amount of Economy Energy.
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EE'-3 Rate per kwh = A+B, when 2
A = calculated incremental fossil fuel cost of energy involved, plus applicable adjustments, if supplied from resources of the Purchasing Party.
B = calculated incremental fossil fuel cost of energy involved, plus applicable adjustments, if supplied from resources of the Supplying Party.
Incremental fossil fuel cost for calculations of "A" and "B" above shall be costs as calculated at the time the mutual agreement between the parties for the Economy Energy transaction became effective.
Adjustments:
First - Plus the applicable proportionate part of any directly allocable tax, I
impost or assessment imposed or levied by any governmental authority after the effective date of this Schedule, which is assessed or levied against the Company or Cajun-or directly affects the Company's or Cajun's cost of operation and which the Company or Cajun is legally obligated to pay on the basis of meters, customers, or rates of, or revenue from electric power and energy or service sold, or on the volume of cm:gy generated, transmitted, purchased for sale, or sold, or on any other basis wherc direct allocation is possible.
El!-4 PAYMENT i
4 The Net Monthly Bill is duc and payable cach month upon presentation by each party to the other.
i i
CONTRACT PERIOD The term of this Schedule shall be from May 29, 1980 through May 28, 2015, and thereafter for 5-year periods, unicss terminated by written notice given by one party to the other not more than forty-eight (48) nor less than' thirty-six (36) 4 months prior to the expiration of the original term or any extension thereof.
REGULATORY APPROUL 1
i This Service Schedule is subject to the approval of regulatory bodies having jurisdiction, and either the Company or Cajun may rcquest lawful change in this Service Schedule in accordance with such jurisdiction. However, nothing contained herein shall be' construed as affecting in any way the right of the party l
- furnishing service under this rate schedule to unilaterally make application to the Federal Power Commission for a change in rates, charges, classification, s
or service, or any rule, regulation, or contrac't'reIhtinh thereto, under Section 205 of the Federal Power Act and pursuant to the Commission's Rules and Regulations l
promulgated thereunder.
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~
EE-5 IN WITNESS WilEREOF the parties hereto have caused their corporate names to be subscribed hereto, signed by their duly authorized officers, and their corporate seals have been attached and attested by the Secretary of Caju and the Secretary of the Company as of the day, month and year first above written.
7' CAJUN ELECTRIC POWER COOPERATIVE, INC.
ATTEST:
M, By
///,2gdd, N a m d
/
Secretary
- Alfred A. Robinson LOUISIANA POWER & LIGHT COMPANY ATTEST:
- 8. }H' f ) J
..h-)$/kr[
By
~
G. D. McLendon Secretary 9
0 9
9 9
9een 0
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TS-1 SERVICE SCllEDULE "TS-1" TRANSMISSION SERVICE This Service Schedule is made and entered into this g day of Jy/w
/
/ 9 7 b as a supplement to the Electric System Interconnection Agreement s
entered into onw gA f47/,, by and between Cajun Electric Power ~ j i Cooperative, Inc., and Louisiana Powcr & Light Company. APPLICATION Transmission service under this Schedule is applicabM to the transmission of power and energy by the Company over its facilitics from the point or points of interconnection, as outlined in Appendix "A" attached hereto, to the delivery points listed in Appendix "B" attached hereto, or as subsequently amended, provided that Service Schedules "EA-1" and "SUP-1" and. this Transmission Service Schedule "TS-1" are in effect. Power and energy available from Cajun's resources over riad abov Cajun's requirements (including reserycs) may, after execution of a transmission service schedule and suitable contractual arrange-ments executed by an officer of each party, be transmitted under this Service Schedule "TS-1" to other entities which are interconnected with the Company within the State of Louisiana. As used hercin, "cntity" shall mean any munici-pality, rural electric cooperative, public or private corporation, governmental agency such as TVA and Southwest Power Administration, or lawful association of any of the foregoing (a) which lawfully exists and owns and operates or pro-poses in good faith to own or operate facilitics for generation of electric power B 9
TS-2 and energy; (b) which, with exception of municipalitics, rural electric coopera-tives and governmental agencies, is or w'.11 upon commencement of operations be a public utility (or in the case of an association cach member thereof, excepting municipalitics, rural electric cooperatives and governmental agencies, is a public. utility) under the law of Louisiana and the Federal Power Act and provides or upon commencement of operations will provide electric service under contracts or rate schedules on file with and subject to regulation of the Louisiana Public Service Commission and the FPC. .YPE OF SERVICE A. Transmission Service shall be three phase, 60 hertz, alternating current at a transmission voltage of 115,000 volts or higher, as may be available adjacent to the point of delivery for a minimum contract demand of 10,000 lav or at a lower contract demand as . may be agreed to by'the Company in accordance witi good engineer-ing principles. B. Transmission service may also be three phase, 60 hertz, alternating current at a primary distribution voltage of 13,800, 24,000 or 34,500 volts as may be available at a point of delivery adjacent to an existing Company distribution substation or at a point distant from a Company distribution substation as may be agreed to by the Company. e 4
. = -.-. - -. I .. TS-3 l AVAILABILITY A. Company will furnish scheduled transmission service for existing Cajun l loads (including historic load growth) in accordance with this Service ~ i Schedule and Agreement to the extent it has existing transmission capacity available to provide such service under sound engineering practice and subject to the following standards: 1 6 Such service shall not require the Company to construct or install any new facilities; b) Such service will neither impair the ability of the Company to render adequate service to its customers nor impair or reduce the reliability of electric service by Company to its own customers during the term of the scheduled service: 7 i.. " c) Such service will not endanger, impair,' or create (, ( unsafe conditions on the system or any of the facilities ' '. of the Company or its customors or parties with which it is interconnected. The Company shall have the right to approve designs of equipment owned, operated, or controlled by Cajun at points of interconnection and points of delivery. 1
TS. d) Such service, and the purchase and sale associated therewith, sha11 not violate or be inconsistent with and shall not cause the Company to violate, directly or in-directly, or become a party to violation of any applicabic statute, order, ordinance, governmental or agency rule, , regulation, or other applicable federal, state or local law, and without limiting the scope of the foregoing, the sale, purchase and delivery of the power and energy by and between the Company and Cajun must in all events be lawful, duly authorized, and approved or accepted for filing by all regulatory agencies, if any, which then have jurisdiction over such sale, purchase or delivery, and the transmission service shall not cause Company to be discriminatory or preferential in any service, rate cr charge to any customers of the Company within the mean-ing of any applicable law. e) In the event Cajun is unable for any reason to supply power or energy for transmission, the Company shall have no responsibility to deliver power or energy except as provided for in the appropriate executed schedules attached to the agreement. O e e
. _ = _. -.. _ _ _... TS-5 f) %c determination of the availability of existing capacity of the Company during the proposed scheduled period shall be made on the basis of the existing load of Cajun, futurc projecte.d new loads of Cajun (furnished by Cajun), other previously scheduled transmission commitments, and the load and normal load growth of the Company, all as esti-mated by the Company on the basis of sound engineering i practice, which upon request will be made available to l Cajun. B. In addition to the conditions outlined in Section "A" above, Company will, if economically justifiable and all of the following conditions and the other standards described in this Schedule are met, include in its planning and will construct sufficient capacity to accommodate proposed transmission service under this Schedille: a) Cajun gives Company sufficient advance written notice of the functional and technical requirements to allow the 4 Company to design thc' necessary facilitics and include them in its construction program. b) Cajun compensates Company for a portion of the cost of ~ such facilitics beyond tlic cost Colnpany would otherwisc c. n
TS-6, b) con't - incur for its own use if the facilitics are to be installed with less than 20 years remainfng in the term of the initial agreement. Such portion shall be computed by multiplying the full cost over and above what Company would incur for its own use by a fraction whose numerator shall be 20 minus the number of years remaining and whose denominator shall be 20. The Conipany shall reimburse Cajun a portion of this contribution each year after the then existing term would have expired so that if the contract is still in effect at the end of 20 years, the full contribution shall have been refunded. As an alternative to such payments, the term of the agreement may be altered by mutual consent to insure that twenty years remain in the agreement. Such mutual consent shall not be withheld arbitrarily or ~ unreasonably. c) In the event Cajun requests transmission service under this Section B at a specific location at which the Company cannot economically justify the installation under this Section B, the Company will propose an alternato location (s) where such requested transmission service is available to meet Cajun's needs. If Cajun accepts a location proposed above and all of the conditions of this Section B are met by Cajun, Company will furnish scheduled transmission service to such alternate location in accordance with and pursuant to the conditions of this Section B. 9
l T.S-7 C. Transmission service to other entitics as defined herein shall also be available in acco'rdance with Sections A and B above, but shall bc limited to a single point of delivery for cach entity. 3 D. Transmission service delivery points shall be connected together through Cajun's or its members' systems or the systems of other entities only upon determination by the Company that such 1 connection will not adversePy affect the Company's transmission system and the conditions of Sections A and B above are fulfilled. TRANSMISSION SERVICE SCHEDULING Transmission service requirements shall be determined on a calendar year basis and set forth in writing as Appendix "B" on the basis of the contract demand required. Company will provide the transmission capacity therein scheduled for the use of Cajun solely for the transmission of wholesale power and energy to its member cooperatives and to other entities, as contemplated by " Application" herein above. Capacity, specified by the Cor,npany as being available, is available only when the transmission and generation system is in its normal operating mode. Emergency conditions or required maintenance can cause the system capability to be modified as conditions of the moment dictate. Should the maximum demand on a delivery point jeopardize the Company's facil.itics or scrvice to Company's customers by exceeding the Contract D2 mand specified in Appendix "B" or other * *
~ l TS-8 similar Appendices covering delivery to other entitics, Company rcscrves the right to open the switches controlling the delivery point without notification in order to protect the integrity of the Company's system. TRANSMISSION SERVICE SPECIFICATIONS All. power and energy to be transmitted by the Company must be received and will be delivered at the Company's nominal voltagc. Cajun and Company shall supply their individual reactive loads under all / normal conditions. Recognizing that it is imprcetical to trcnsmit reactive power from the Cajun interconnection points to the delivery points, it shall be the responsibility of Cajun to supply its required reactive power at each delivery point. It is recognized that the input and withdrawal of power and en:rgy is under the control of Cajun. It shall be the responsibility of Cajun to supply the amount of power and energy, plus losses, which Cajun's member cooperatives and other entitics are taking from the Company's transmission system at all times. Cajun 'shall supply at all times 103 per cent of all power and energy being taken by Cajun's member cooperatives and other entitics to compensate for losses. 4 .e e
i TS-9 It shall be the renponsibility of Cajun to install the necessary control cquipment to accomplish the foregoing. If Cajun's area control error accumulation e exceeds 2% of its control arca load, in any hourly period of operation, and Cajun is unable or unwilling to correct its performance, then it is understood and agreed 2 that the Company has the right to open the interconnections and/or delivery points as listed in this Agreement. MEASUREMENT l The measurement of all power and energy transmitted from Cajun to Cajun's member cooperatives and other entities shall be by suitable kilowatt, kilovar and I watt-hour meters capable of measuring demands on a 60-minute interval. Cajun shall own and bear the installation, operating and maintenance costs o,f i' a telemetering system (including instrument transformers) to be installed, operated, and maintained by Company in transmitting and totalizing the demands of the member cooperatives' delivery points and delivery points to any other entitics to the Cajun Operating Center'and to Company's Control Center. If instrument transformers are already installed as of the date this Agreement becomes effective at existing delivery nts to be telemetered and their utilization for telemetering is compatible with Company's existing metering, said transformers may be utilized in lien of Cajun installing additional transformers. De cost of any replacement of said transformers for any reason shall be borne by Cajun. If two transmission delivery points are connected together through Cajun's or ~ another entity's system as provided in the paragraph of this Schedulc entitled "bailability,'" the power and energy for the two delivery points shall be the arithmetic sum of the two metered quantitics. The meters at the interconnection points listed in Appendix "A" and at Cajun's 4 +we-t-i y e-- ir y y .,--,.,-.-m_w ,,ww- -n-...,a-..,,- y,__ c
I TS-10 member cooperative delivery points listed in Appendix "B" and at delivery points to any other entitics, shall be owned, operated, and maintained by the Company and these meter readings shall be used in accounting for the power and energy transmitted by the Company. NET MONT1ILY DILL All billing for service hereunder shall be billed to and paid for by Cajun. Ra'te: All transmission service under this Service Schedule "TS-1" chall be as follows:
- 1) $7.80 per kw per year, payable at the rate of S0.65 per month, for all kw of Billing Damand, and adjusted as new kw Billing Damands are established during the current calendar year.
- 2) $1.80 per RKVA per year, payable at the rate of $0.15 per month, for alllagging RKVA of Billing Damand, and adjusted as new RKVA Billing Damands are established during the current calendar year.
Adjustments: First - Plus the applicabic proportionate part of any directly allocabic tax, impost or assessment imposed or levied by any governmental authority after the effective date of this Schedule, wh'ch is assessed or levied against t e 0 e
TS-11, the Company or'entitics or directly affects the Company's or entitics' cost of opcration and which the Company or entitics arc legally obligated to pay on the basis of meters, customers, or rates of, or revenue from clectric power and energy or service sold, or on the volume of energy generated, l transmitted, purchased for salc, or sold, or on any other basis wherc direct allocation is possible. Second - When service is delivered at a nominal voltage of less than 115,000 mits and Company owns and maintains the distribution facilities, 54. 20 per > 4 per year, payabic at the rate of $0.35 por month, for all kw of Contract Demand at cach such delivery point shall be added to the above rate. This adjustment shall apply on an individual delivery point basis and the previous months' bill-ings under this adjustment during the current calendar year shall be adjusted as new maximum demands are established at each such delivery point. CONTRACT DEMAND l The Contract Demand shall be the maximum kw capacity contracted for at each delivery point listed in Appendix "B" and other similar Appendices covering delivery to other entities, but shall never be less than the maximum kw and Rkva demands delivered to cach delivery point during the clock-hour period of maxi-i mum use at cach delivery point during the term of the currently effective I Appendix "B" of this Agreement. 5 .y ..__m, _.m. ~ _ - - -. -..- .-w
TS-12 ( BILLING DEMAND The Billing Demand shall be the sum of the Contract Demands for cach delivery point as determined al;ove. PAYMENT Tic Net Monthly Bill is duc and payable each month upon presentation. CONTRACT PERIOD The term of this Schedule shall be from May 29, 1980 through May 28, 2015,, and thereafter for 5-ycar periods, unicss terminated by written notice given by one party to the other not more than forty-eight (48) nor less than thirty-six (36) months prior to the cxpiration of the original term or any extension thereof. REGULATORY APPROVAL T1is Service Schedule is subject to the approval of regulatory bodies having jurisdiction, and either the Company or Cajun may request lawful change in the Service Schedule in accordance with such jurisdiction. However, nothing contabicd herein shall be construed as affecting in any way. the right of the party furnishing service under this rate schedule to t$nilaterally make application to the Fedcral Power Commis&n for a change in rates, charges, classification, or service, or any rulc, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Commission's Rules and l Regulations promulgated thereunder.
TS-13 .IN iVITNESS WilEREOF the partics icroto have caused their corporate names to bc subscribed hereto., signed by their duly authorized officers, and their corporate scals have been attarned and attested by the Secretary of Cajun and the Secretary of the Company as of the day, month and year first aboye written. ATTEST-CAJUN ELECTRIC POWER COOPERATIVE, INC. 0& By //fAs/)l, $ s&M$ / / Secretary / ' Alffed A. Robinson ATTEST: LOUISIANA POWER & LIGHT COMPANY h, k ' fu hl / hldd! By U. U. McLendon Secretary D l G 5 .}}