ML20099A484

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Response by City of Austin,Tx,To Doj'S First Interrogatories & Requests for Production of Documents.Affidavit of Rc Hancock,Certificate of Svc & Supporting Documentation Encl
ML20099A484
Person / Time
Site: South Texas  STP Nuclear Operating Company icon.png
Issue date: 01/12/1979
From: Balough R
AUSTIN, TX
To:
References
NUDOCS 7902220144
Download: ML20099A484 (106)


Text

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION N g 0

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                                                                             %$*h BEFORE THE ATOMIC SAFETY AND LICENSING BOARD         g V

IN THE MATTER OF S S HOUSTON LIGHTING & POWER S Docket Nos. 50-498A CO., ET AL S 50-499A S-(SOUTH TEXAS PROJECT, S - UNITS 1 & 2) S RESPONSE OF THE CITY OF AUSTIN TO THE , DEPARTMENT OF JUSTICE'S FIRST SET OF INTERROGATORIES AND REQUESTS FOR PRODUCTION

                   .Now comes the City of Austin and files this Response to the First Set of Interrogatories and Requests for Production of Documents from Department of Justice.as follows:

F.1. (a) None, that any records indicate or current personnel are aware. (b) None, that any records indicate or current

                    -      personnel are aware.

(c) None, that any' recor.ds indicate or current personnel are aware. (d) None, that any records indicate or current personnel are aware. (e) No such documents that any records indicate or current personnel are aware.

2. The City of Austin has never, to the best of its l
                  . knowledge, refused to engage in interstate transmission or reception of electrical power.
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                       -3.             (c)    None of which the City of Austin is aware, although there would be certain financial agreements as to percentage of ownership, and such govern-mental agency approval as would be necessary
by regulation.

(b) None of which the City of Austin is aware. r

                     .                 (c)    The City of Austin understands that there may be technical ways to operate the South Texas Project in such a manner but the City of Austin 4                                              has not conducted any such detailed studies nor has the expertise to do so.

(d) The City of Austin does not have the technical expertise to make such a calculation. .- 4. The City of Austin has not made such a calculation.

5. (a) The staff of the City of Austin communicated with the Lower Colorado River Authority and San Antonio after May 4, 1976 in an attempt i

to restore-the Texas Interconnected System to a more reliable mode of operation. (b) The City of Austin is not aware of any documen-j tation of the above discussions nor the participants of such discussions other than the general

knowledge that such took place and that various levels of staff participated from' time to time l in connection with Docket No. 14 before the Public Utility Commission of Texas.

(c) None of which the City of Austin is aware. l . l { - c_ J

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6. (a) There were no such communications indicated in City of Austin documents nor any of which City of Austin staff is aware.
7. (a-d) The City of Austin is a member of the Electric Reliability Council of Texas and the Texas
  • Interconnected System which historically have been engaged in intrastate commerce exclusively.

In describing its interconnections the City of Austin must, by reference, communicate the nature of the interconnections. These communi-cations are by their very nature frequent and no records are kept of such descriptions. However, R. L. Hancock explained the system to the.Public Utilities Commission of Texas during the Docket 14 proceedings. A copy of that testimony is attached as Appendix A. i 1

8. (a) The City of Austin has neither the staff or l

expertise to study properly said document, . l although if the dollar amount is in 1975 dollars, l then certainly it needs to be adjusted for inflation. (b) No overloads were experienced in the City of Austin system. (c) Not applicable. (d) None.

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9. (a) Since Austin is not now regulated by the Public Utility Commission of Texas, any regulation under FERC would have additional costs involved.

However, since FERC rules do not cover municipal \ owned utilities, any costs would probably be insignificant. (b) Not applicable. (c) Not applicable. - (d) Not applicable.

10. The City of Austin does not make such a contention.

l - 11. (a) None . (b) None (c) Not applicable.

12. For the formation of ERCOT, see Appendix A, j which was provided in response to No. 7 (a) above.

Also, the ERCOT Agreement is attached as Appendix

  • B. As to ERCOT relative power and authority as compared to other regional systems, Austin has no knowledge of the internal operations of other systems.

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Y 13 . The purpose for the Texas Interconnected S'y stem is outlined in the TIS Agreement which-is attached as Appendix C. Also attached is testimony of H. L. Peterson'given before the Texas Utility Commission which in part deals with the formation of TIS. It is attached as Appendix D. The city of Austin has no documents relating to requests for membership. in TIS. I 14. (a)- None that any records indicate or current personnel are aware. .

                               '(b)   None that any records. indicate or current personnel .

are aware. _ (c) None that any records indicate or current personnel are aware. l (d) None that any records indicate or current personnel

;                                     are aware.             .

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15. (a) The City of Austin is not aware of any participation in inspections.

(b) The City of Austin is not. aware of any participation i in inspections.

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(c) None.

(d) None. .
16. (a) May 4, 1976 to May 2, 1977.

1 l ,b-c) ( The testimony of H. L. Peterson provided in response to No. 13 above describes in detail .

                        ,             these events, Appendix D.
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                               '17.         (a)     M6y 4, 1976 to May 2, 1977.

(b-c) The testimony of H. L. Peterson provided in response to Nos. 13 and 16 above detail the financial consequences. Appendix D.

18. (a) (1) ERCOT Agreement, Appendix B.

(2) TIS Agreement, Appendix C. (3) Texas Power & Light Agreem,ent of October 28, 1977, Appendix E. (4) Texas Power & Light Agreement of March 20, 1978, Appendix F. (5) Houston Light & Power Agreement, Appendix G. (b) See 18 (a) above.

19. (a) Immediately prior to its disconnection, TU employees notified Austin of the disconnection.

(b-d) There were probably numerous communications between City of Aus' tin employees and HL&P and TU employees but there are no records of which-Austin is aware as to whom the participants were or when or where these conversations took place.

20. (a) No.

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21. (a) No.

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22. (a) Attached is an agreement with the University of Texas at Austin which allows for la decrease i

, . in pricing for more electricity used by U.T. t which may have the effect of decreasing generation. Appendix H. 1 (b) Th'ere may have been minor adjustments to Austin's service area when it was certified by the Texas Public Utility Commission. j .(c) The City of Austin electric department has o'n' numerous occasions responded to requests by companies,.not all of whom identify themselves, as to electric rates and service, but the electric department has not actively sought companies to relocate. As part of the operation of City government, there may be City officials not j connected with the electric utility that may have sought companies for relocation.

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l - (d) Same as 22(c) above. . i . RESPECTFULLY SUBMITTED - r I I CHARD . BALOUGH/ ilSSISTANT CITY A '1 EY CITY OF AUSTIN P. O. BOX 1088 AUSTIN, TEXAS 78767 (512) 477-6511 EXT. 2273 l E.

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(. AFFIDAVIT R..L. Hancock, being' duly sworn, says that he is , the Director.of the Electric Utility for the City of Austin, Texas, that the facts stated in the foregoing Answers to Interrogatories submitted on behalf of the City of Austin ar'e, to the best of his information and belief, true and correct. 1 (A?'h[8//g,t.epe / R. L. HANCOCK SUBSCRIBED AND SWORN before me this the /o? I day of January, 1979. , 9 ns e La./

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Notary Public in and for Travis County, Texas 9 6 4

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                                     , , _ . , . - - . - . . _ _       m  _ . . ,                                                               . _ . -
        ' y,                                           UNITED STATES OF AMERI ..

BEFORE THE NUCLEAR REGULATORY COMMISSION l ATOMIC SAFETY AND LICENSING BOARD l In the Matter of: g HOUSTON LIGHTIGG & POWER COMPANY , t The City of San Antonio, g The City of Austin, and g Docket Nos. 50-498A L Central Power and Light Company g 50-499A S (South Texas Project, g j Unit Nos.1 & 2) . i CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Response of the City of Austin to the Department of Justice's First Set of Interrogatories and Requests for Production has been served on each_of the following. persons by deposit in the United States mail this 12th day of January, 1979. Alan S. Rosenthal, Esq. J. Irion Worsham, Esq. l Atomic Safety and Licensing Merlyn,D. Sampels,.Esq.

Appeal Panel Spencer C. Relyea, Esq.

i~ U.S. Nuclear Regulatory Worsham, Forsythe, & Sampels Commission 2001 Bryan Tower, Suite 2400 -( Washington, D.C. 20555 Dallas, Texas 75201 James R. Yore, Esq. J. A. Bouknight, Jr., Esq. Atomic Safety and Licensing Robert Lowenstein, Esq.

!                      Board Panel                                       .

Lowenstein, Newman, Reis & U.S. Nuclear Regulatory Axelrad Commission 1025 Connecticut Avenue, N.W. l Washington, D.C. 20555 Washington, D.C. 20036 i

                 ' Chase R. Stephens, Secretary                                   Charles G. Thrash, Jr., Esq.
Docketing and Service Branch E. W..Barnett, Esq. -

U.S. Nuclear Regulatory J. Gregory Copeland, Esq. Commission Melbert D. Schwartz, Esq. Washington, D.C. 20555 Baker & Botts 3000 One Shell Plaza Mr. Jerome D. Saltzman Houston,, Texas 77002 , , Chief, Antitrust and Indemnity i Group R. Gordon G'ooch, Esq. U.S. Nuclear Regulatory John P. Mathis, Esq. Commission Baker & Botts Nuclear Reactor Regulation 1701 Pennsylvania Avenue, N.W. Washington, D.C. 20555 Washington, D.C. 20006 Mr. Perry G. Brittain Douglas F. John, Esq. President ' Akin, Gump, Haver & Feld Texas' Utilities Generating Co. 1100 Madison Office Building 2001 Bryan Tower 1155 15th Street, N.W. L Dallas, Texas 75201 Washington, D.C. 20005 . N -

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                                                                                                                                                                                                                       ;.                   p             l Roy P. Lessy, Jr.                                                                                                                                    Joseph B. Knotts, Jr., Esq.

Michael B. Blume Debevoise &.Liberman U.S. Nuclear Regulatory 700 Shoreham Building Commission 806 15th Street, N.W. Washington, D.C. 20555 Washington, D.C. 20005 Roff Hardy Wheatley and Miller Chairman and' Chief Executive Watergate Office Building Officer Suite 1112 Central Power and Light Co. 2600 Virginia Avenue, N.W.

,                   P. O. Box 2121                                                                                                                                     Washington, D.C. 20037
Corpus Christi, Texas 7840.3 -

' Jay M. Galt, Esq. J. K. Spruce, General Manager Looney, Nichols, Johnson City Public Service Board and Hayes > ! P. O. Box 1771 219 Couch Drive San Antonio, Texas 78296 Oklahoma City, Oklahoma 73102 G.W. Oprea, Jr. John E. Mathews, Jr., Esq. Executive Vice President Mathews, Osborne, Ehrlich, Houston Lighting & Power Company

  • McNatt, Gobelman and Cobb P. O. Box 1700 1500 American Heritage Life Bldg.
   .              Houston, Texas                                                     77001                                                                             Jacksonville, Florida                       32202 i                 Joseph Gallo, Esq.                                                                                                                                   Robert A. Jablon, Esq.

Richard D. Cudahy, Esq. David A. Giacalone, Esq. 4 Robert H. Loeffler, Esq. Spiegel & McDiarmid

 !                Isham, Lincoln & Beale                                                                                                                               2600 Virginia Avenue, N.W.

s 1050 17th Street, N.W. .

                                                                                                                                                             -Washington, D.C. 20037 Suite 701                                                        -                                                                                                 ~

Washington, D.C. 20036 .Ms. Evelyn H. Smith Route 6, Box 298 Michael I. Miller, Esq. Gaffney, South Carolina 29340

         - c      Isham, Lincoln & Beale                                                                                                                                                                                                                 .

One First National Pl&za

                                                                                                                                                     .                Mr. Ronald Clark l                  Chicago, Illinois                                                        60603                                                                      Energy Section                                                                     '

U.S. Department of Justice Joseph J. Saunders, Esq., Chief P. O. Box 14141 Public Counsel and Legislative Washington, D.C. 20044  ! , Section ~ John D. Whitler,.Esq. Antitrust Division ! U.S. Department of Justice  !

Washington, D.C. 20530

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v ( ( i l John W. Davidson, Esq. Sawtelle, Goode, Davidson

                     & Troilo 1100 San Antonio Savings Bldg.

San Antonio, Texas 78205 Mr. Knoland J. Plucknett Executive Director ' Committee on Power for the Southwest, Inc. 5541 East Skelly Drive Tulsa, Oklahoma 74135 Jon C. Wood, Esq. -

!                W. Roger Wilson, Esq.

Matthews, Nowlin, MacFarlane & Barrett 1500 Alamo National Building . San Antonio, Texas 78205 l rA WA & C C. BRLOUGH - AS TANT CITY ATTORNEY ' CI OF AUSTIN

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l ,4(penDIA is ( (' , TESTIMONY OF R. L. HANCOCK .- + DIRECTOR ELECTRIC UTILITY CITY OF AUSTIN Q. For the record, would you please state your name, position and qualifications? A. My name is R. L. Hancock, and I am the Director of the Electric Utility Department of the City of Austin. I have served in that capacity since 1971. Prior to that, I was the Assistant Director of the Electric Utility Department I from 1967 to 1971 with various assignments in the Electric Transmission & Distribution and Generating area starting in 1949. I received a B. S. in Electrical Engineering in ! 1950 from the University of Texas and I am a registered l l professiEnal engineer in the State of Texas. I am a member

  • of the Technical Advisory Committee of the Electric Reliability Council of Texas (ERCOT) , have served on the Texas Interconnected System (TIS) Administrative Committee
                  , since 1971 and was Chairman of the TIS Administrative Com-i mittee from May, 1975, to May, 1976.

l Q. Mr. Hancock, what is the purpose 'of your testimony in this proceeding. A. The purpose of my testimony is to outline briefly the history of utility interconnection in Texas, to deceribe, the interconnection, to outline in general how an inter-connected electric utility system functions and to discuss 0

r ., ( ( - how ERCOT and TIS have performed. My testimony will be restricted to that period of time prior to the separation of several utilities comprising ERCOT. (May 4, 1976). I believe such historical information is important to illustrate the close cooperation and mutual relianc.e of member systems in the planning, construction and operation of facilities to provide the public the most economical and reliable service possible. It is necessary to elaborate the details and complexity of operating an interconnected system

                                     .to some extent in order that this record will reflect the impact of any disruption to the system.                                                      .

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                ,    Q.               What is the Electric Reliability Council of Texas, or

{, ERCOT, as it is- commonly called? , A. The Electric Reliability Council of Texas (ERCOT) was l organized in mid-1970. It is associated with the National

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l ! Electric Reliability Counci'l (NERC) formed in 1968 "to augment the reliability and adequacy of bulk power supply in the electric utility systems of North America". NERC consists of nine regional reliability councils. , Q. Could you describe briefly the history of ERCOT? , A. ERCOT represents a broadening of TIS, which uns ! originally composed of nine larger electric generating f and transmitting systems that chose to interconnect for their mutual benefit. The history then of ERCOT can be I tr' aced directly to the development of the Texas Interconnected. l

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System. TIS was an outgrowth of a . serious need for additional generating capacity in the Gulf Coast area that developed in conjunction with the war effort in 1942. This led to the interconnection of. five major generating utilities in the South Texas area that became further interconnected with electric generating facilities in the north part of the State of Texas through the facilities of the Lowe_ Colorado River Authority. During the years of the war effort, and subsequent to that period, the various advantages of the interconnection led to the continued development of the Texas Interconnected System and the subsequent development of the Electric Reliability Council of Texas. Q. Would you tell us the purpose of ERCDT and outline how it achieves that purpose? I A. The purpose of ERCOT is to promote the reliable operation of power systems by

1) exchanging information concerning the planning and .

j . operation of generating, transmission and distribu-tion facilities;

2) exchanging information pertinent to materials, -

supplies, equipment and manpower available to others in the restoration of electric service disrupted by e

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w; e e, (' ( d hurricanes,' cyclones, tornados, floods, riots,

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enemy attack and disorders;

3) maintaining direct communication ' channels for the purpose of rendering total aid to victims in the event of enemy attack, thereby providing maximum
                                                         -     civil defense for all members of the co.uncil;
4) providing a means of exchanging information and system data and for making necessary regional-l studies designed to increase the reliability of t
such power systems dnder all normal and abnormal circumstances;
5) creating a vehicle for the~~ reporting where appropriate .
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for information to regulatory agencies. Q. Who may be a member of ERCOT? 4 I A. Membership in ERCOT is available to any entity, corporate or otherwise, including agencies of the federal government or federally-owned or financed systems and state, municipal ,

                                             .or.other government-owned or financed entities, which owns, controls and operates an electric power system in Texas, all or part 'of which consists of facilities for the genera '

tion, transmission or distribution of electric energy in l purely intrastate commerce and serving the public. ERCOT m 4 9

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I', These is now comprised of 87 el'ectric utilities. tric l utilities include municipally-owned systems, e ec d cooperatives, state agencies, and investor-owne utilities. rage Mr. Hancock, what is the general geographical cove Q. of ERCOT? i service ERCOT embraces those utilities that supply electr c A. r i g geo-to over two-thirds of the State of Texas ,ang n ille and from

                       . graphically from Wichita Falls to Brownsv            f the Houst'on to the Big Bend area encompassing many o Fort i

major cities, such as Houston, Dallas, San Anton l o, Worth, Nustin, Corpus 'Christi, Waco , Wichita Fal s ,

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d rural Abilene, San Angelo' and numerous other cities an areas. Exhibit RLH - 1 shows localities within the service ar'ea of ERCOT members. How are these systems interconnected? Q. t The bulk power _ generation and transmission sys em A., facilities .

                         - interconnecting the ERCOT members are those        f Austin , -

owned by Central Power & Light Company, City o llas Power & City Public Service Board of San Antonio, Da Lower Light Company, Houston Lighting & Power Company, 0

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Colorado River Authority, Texas Electric Service Company, _ Texas . Power & Light C mpany, West Tcxas Utilities' Company, and the Texas Municipal Power Pool represented by Brazos Electric Power Cooperative, Inc. and composed' of the cities of Denton, Garland, Bryan and Greenville. The major trans-mission network within ERCOT is shown on Exhibit RLH - 2. Q. Have you prepared an exhibit indicating the relative sizes

of the utilities owning these transmission facilities?

i A. Yes, my Exhibit RLH - 3 reflects this information which was ,obtained frow lim la' c est annual reports, where available, , or by communication with the applic,able utility. , Q. How are the affairs o5'ERC'OT administered? - A. The affairs of the Council are administered by ,an

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Executive Board of 12 representatives elected by.the council. The ERCOT council consist's of one representative from each

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member utility. The 12 member Executive Board is elected from the council members with at least six representatives from the investor-owned sector, at least.two representatives from the municipal sector and at least two representatives from the cooperative systems. Exhibit RLH - 4 indicates . i

  • the Board and officers October 1,1975, through September 30.

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j 'i ' (- 3 . . \ - t ' S g- ,- .e 7' . 1976, and Exhibit RLH - 5 indicates tihe current Board and officers ' from October 1,19.76, through ' September 30, 1977. Responsible-to the. Board is. an~ Executive; Director and a

                                                                                                                                                                         , 3 Technical Advisory Committee that addrerses many of tho 3

technical and report problem 4- handled through ERCOT. ? . > Problems relating to the operation, coristruction, planning and coordination of the major electric generating

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facilities and the transmissior.f ,' system interconnecting members of ERCOT are administered throug'h a special

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Administrative Committee with standing committees .for long range system planning and(for sys' tem' operations. i6 . The administrative Committed ,

                                                                                                          ' composed of I'oiie represen-tative from each of the ten utilities listed on Exhibit RLH -

3 and appointed by their respective. management. Exhibit

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RLH - 6 is a tabulation of the Administrative Committee

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                                                                                             '                                                       t members and the subcommittee menders..                                                             -

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                   ..m O.           Would you elaborate on the responsibilities of the as                                                 -

aa r Administrative Committee? , A. The responsibilities of the Administrative Committee are to .

1) determine an established general policy with regard to the coordination of plann,ing' and operation of the.
                                                 ' bulk power backbone of the systems; f
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L~ .. L 2) to review and evaluate criteria and procedures i L -

                                       - affecting'the reliability of bulk power supply t-

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                                      . facilities; l-
3) to direct the' activities of the planning sub-committee-and the operating subcommittee and such other subcommittees as may be appointed from ,

time to time. Q. What are the duties of the major subcommittees referred - to? - i A ~. - The duties of the Planning Subcommittee are to perform i and evaluate' studies, load flow and stability studi'es, review basic plans for development of the various systems; . make such recommendatihits as it deems appropriate to the Administrative Committee. .These studies include in-stalled generation reserves, abnormal system conditions, major' outage contingencies, s'tatistical studies, trans-I mission facilities, and future generating facilities. The duties of the operating Subcommittee are-to make such recommendations as it' deems appropriate to the I Administrative Committee covering the coordination of all phases of interconnected system operation. These studies

include relay settings, communication facilities, allocation 4

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of spinning roscrva requirements, system dispatching procedures, load frequency tieline control, load shedding procedures., and coordination of maintenance schedules. Q. Mr. Hancock, have certain planning standards been adopted to maintain continued reliability of service to the public? A. 'Yes, in order 'o t meet our responsibility to provi~d'e reliable service.to the public, criteria has been estab . lished for planning associated with the bulk power system. The planning criteria approved by the Administrative CommS.ttee provides

1) sufficient generating capacity will be provided as e -- nearly as practicable to insure a reserve of at least 15% of the forecasted maximum hour demand of the system -and -
2) projected system planning will include simulated testing to insure the system will not experience cascading breakup and collapse initiated by the occurrence of contingencies such as : -
a. Loss of all generating capacity in any generating station.
b. Loss of any two generating units.

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c. Outage of any-circuit or generating unit t

.. during scheduled maintenance or any other transmission line or generating unit.

d. Outage of any single or double circuit i transmission line, generating unit, i transformer or bus.
e. Simultaneous outage of overhead transmission lines, parallel tc each other; for a substantial-distance having.a spacing between circuits of less than the height of the structure.
f. Any fault cleared by normal operation of backup, relays.
 ;                                                  g.                     Loss of any large load or concentrated load 1

i , area. Q. What-do'you mean by " cascading breakup and collapse"?-

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i A. Cascading and collapse is an extremely severe system up-3 set that'can result ihi the total loss of electric system ~ to a large geographical area. An example is the North East " black-out" that occurred in the New York area in

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the 1960's resulting in a sustained " black-out" with all . of the attendant impact on the public well being. i A cascading collapise is generally triggered by an abnormal event such as the loss of a generator, transmission line m *

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or power plant that for one reason or the other creates changes that.cause the loss of other generators, plants and . lines and rapidly results in the total loss of electric service. Restoration is restrained by the

                         . magnitude of the events, the need for identification of the' initial cause, the communication problems and technical problems associated with " dead plant" stdrt up. In addition to an extremely adverse impact on the~

health and welfare of the public there is increased probability of damage to utility equipment that can

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! become expensive and require long lead time'to repair. l i e j - Q. How can proper planning help avoid such problems as you . l7 , have mentioned? , A. Proper planning takes abnormal events.into consideration '

and designs the system so that it has the capability of .

l accommodating certain. contingencies without collapse, _ disruption of. service, or diminished reliability. It

                       -     is important to acknowledge-that proper design requires the study and design of all individual utilities in the
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interconnected system operating in synchronism. Proper c I

                            . design _ requires.the study of contingency events in multiple.

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                            . systems. .It relies on the resp'onse of each utility's generation and transmission facilities to properly e
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accommodate the changes resulting from the contingenc~y .

l , hit.is essential that the planning of major facilities be I closely coordinated because of the' reliance of each utility within the' interconnection on the correct , functioning of the interconnected system. 1 Have 'certain essential operating standards been adopted. for the intercennected systems? _

 , .          A.          'Yes, operating standards are at least'as important'as planning criteria.                      For that reason, the systems have jointly developed.and complied with certain operating criteria which are shown on my Exhibit RLH - 7.

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  • The operation of electric utilities is very complex. The interconnection of utilities in' creases that complexity and -

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                         - incre.ases the interdependence of interconnected utilities.

1 Very close control and communications on a moment-by-I moment basis is necessary between member utilities for

routine operation as well as for adverse operating ,

conditions. Events in one area of the interconnection ! ,- immediately affect operations in other parts of the ' interconnection requiring certain actions in response - j to those events.. Q.. Please explain some of the reasons for such complexity i and interrelation. i t 12 - _ _ _ _ _ _ _ _ _ . - _ _ - . _

( ( - s i l 'A.. To' fully understand the' complexity and interrelation within an interconnected system it is"necessary to

                           ,   understand some of the general theory associated with
.                              interconnections and. synchronous operation.                                                                   Electrical utilities are not energy producing activities, but t

instead are energy converting activities, and simply convert energy in one form to energy in a more convenient and flexible' form for utilization by the ultimate consumer. Electrical energy cannot be conveniently stored for ,any , ! significant period of time, and this imposes an unusual constraint on an electrical system with respect to instant 1

l l changes. It requires a very delicate and responsive balance between fuel input to the utility boiler and the electrical energy requirements.of.the consumer.

b - A. Please explain what is meant.by synchronous interconnected

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operations. , A. It is impractical to consider serving all the consumers .

in the State of Texas from one turbine generating unit, .

and it is also impractical to consider serving each ~ l consumer with an individual turbine generating unit. As i a resu,lt, a utility installs a number of turbine gener'ating . 4 ' ' ' units and connects the outpu't of'th'e generator to the electrical transmission system thus interconnecting the generators and providing multiple supply paths to the i 13 -

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( z transmission'and distribution-system for the electrical energy required by the consumers ' connected to the system. The interconnection of generators with each

                                                                                                 ~

other- constitutes what is termed synchronous operation. The number of* alternations per second is said to be the frequency of the system. In the United States 60 cycles per second is the dominate operating frequency, and 4 it is necessary that generators operating in synchronism, not' only alternate in unison but als'o function at the , same frequency.

  • 3 e

Once the generators are operating together in synchronism, there is an electrical " locking" effect which tencs to keep the generators in synchronism. Since it is advantageous for a utility to interconnect their generators for synchronous operation, and since the physical location of those plants is dispersed throughout the utility's service territory, it has be~come necessary

                          .         to interconnect those generating facilities with high voltage transmission lines.            The concept of synchronous t

. operation of the generators has been extended beyond - l . 1

                                                                                              .                               1
                                                               -                                                              1
                                               .                    l l                            .,

the individual utility concept and extended to a number of. utilities interconnected through transmission interconnections to form larger interconnected systems operating in synchronism. Q. How dSee an electric utility s,ystem operating in - synchronism respond to changes in customer energy ! . requirements?

                                                                                                                                                               ~

l A. If the consumer changes his electrical energy require-i ments, more energy must be provided at the power , plant. This could be accommodated by manually admitting 4 more steam to the turbine to provide more mechanical i energy,'which in turn would provide more electrical i energy. Manual control is cumbersome and inefficient, ' h therefore certain automatic facilith.es have been i installed to provide this function. There is instal' led

                            ,~, _ ;-
                                  ~
                                                    - , ~
                                                      ~

g, - c -- - on the turbine a governor that controls a series of

                                      ~

j steam valves that admits sufficient steam from the boiler 't'o produce th'e required energy output of 'the ' generator. The signal that the governor sees is the - speed of rotation of the turbine rotor and consequently the generator rotor. I As the consumer requires more electrical energy there is l a brief and ' minute decline in the RPM of the turbine and 1 4 g 15 -

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                              ~ generation which is perceived by the governor.        The governor automatically opens the steam valves and admits
                                         ~

enough steam to restore - the turbine generator RPM to its desired speed. That speed is set to maintain 60 cycles . per second system electrical frequency. Automatic controls on the boiler then sense th'e change in steam conditions and , automatically adjust the fuel and air ratios for proper i combustion and proper energy input of the boiler.

                                                                                            ~

Conversely as the consumer reduces his electrical en'ergy requirements, there is an instantaneous acceleration in the RPM of the turbine and ' generating unit sensed by the governor which acts on the steam valves to reduce the admitt'ed steam to balance the mechanical input and tb.e electrical output so that 60 cycles per second frequency

                                                                 ~
            .                   is maintained.

j For units operating in synchronism, each unit responds i to the changes in accordance with the governor characteris-tics, and the incremental changes in energy requirements then are distributed over those units operating in . ! ' synchronism. . For a number of sound technical reasons, the unit response under g'overnor control ~ does not quite restore the system

                                                ~

back to normal frequency, and that final restoration has . to.be e: ecuted either by automatic control or manually. G e

n ( . C* 9 Q. Is the operation of the system affected by events other than changes in customer demand? A. Yes, in addition to the normal changes in the load generation relationship resulting from changes in the

 ,                          - customer's energy requirements, there are on occasions unusual and abnormal changes resulting from major losses
                                                                                                                                      ~

of load in the syst'em which tend to accelerate the RPM of those units in that area that are still in synchronism and results in unusua'l high frequency excursions. There also are occasions when the sy' stem be'omes c deficient in power plant input energy resulting from the abrupt loss of a generating unit. The' loss of generation in this case causes unusual and extreme frequency decrease excursions. Q. Does the size of the interconnected system complicate synchronous' operation? *

  • A. The larger the interconnected system the more complex and

, complicated the identification, communication and response I to the problems become. In the case of ERCOT, there are 1 - approximately 282 generating units that may operate in e synchronism. requiring special automatic control, communication and data acquisition arrangenents. ? - i 17 - l e r - m-- -mm- m -- -- , ,svme -~w,e------e-> e- --- m , m~ -

                                                                                                                       - ~ ~ - - - - - - + ~  >m e-, w--

c ( - Q.- Describe the automatic load control system which is necessary to the operation of the interconnected system. , A. The automatic load control for the bulk power system of the ERCOT members is composed of seven load control areas each with automated control that .- regulates the individual generators within that control area and the desired tieline response between the respective areas. In the case of differences between energy input to the b

     .             plants and energy requirements of the consumers, changes   ,

in frequency result as previously described. Although

 ~                                                                                  '

a significant portion of the response is under automatic - governor control there still is additional correction required that'must be done either automatically or manually. ~ With the large nuber of generating unit's involved in the ERCOT area, the major generating entities have been divided into automatic load control areas. , Exhibit RLH - S indicates those automatic load control l areas in which the generating facilities are automatically - i contr.olled to restore that portion'of the frequency . i J s ' *

  • e i ,

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                                 .       .                (          -

s - deviation not corrected under governor response. This automatic control equipment is able to take into consideration the scheduled power flows between utilities and automatically makes'that compensation

   ,                           necessary.                                                     '

Q. Mr. Hancock, earlier you mentioned frequency changes. g What is the significance of frequency deviations? A. Under normal operating circumstances, there are slight deviations in system frequency resu$ ting 'from load changes. Under abnormal circumstances there are rather severe frequency deviations res' u lting from loss of generation or loss of load.

                        ^

To place the magnitude . . ~

                                                                                ; ~; -

of frequency deviation in 7 . . perspective, turbine manufacturers indicate that j shstained turbine operation as frequencies of 58.5 cycles per second rather than 60 can result in serious damage. Other information from turbine manufacturers indicate that over the full life

                                                               .                                                                                                          .   . 4 4

of the turbine only 60 minutes . cumulative operation at 58.5 can be tolerated without serious unit damage. L . . i e

                                                                                           , 19 -
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                             .          .     ' (.                                  (

In addition to potential turbine damage, there also is some potential for improp'er pump and motor performance under varying frequencies that effect both the utility

              .                   operation and the consumer's utilization of electrical energy.

For sustained operation at reduced frequency levels, the . major utilities in the ERCOT system have installed under frequency relays that automatically "shed" a portion of

  • the consumer load in order to restore the balance between input ener~g y and customer energy requirements in the event of severe, frequency reductions. This is in accordance with 'the operating criteria reflected in Exhibit RLM .- 7.

There is a tendency within any system for frequency to deviate slightly on a cumulative basis from'60 cycles per.second. This causes cumulative time error on all - electric clocks. Periodic frequency corrections are required in order to correct for these cumulative deviations. The correction is usually accomplished by operating the' inte,r-

                               . connected system either slightly over or slightly below normal
            ,                    frequency until a correct time correction has been accomplishet when compared to standard times.                This is a complicat'ed and' time consuming effort, and 'the larger more massive the                  .

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                                      .                            -   20 -

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                                                                                ~                                                                                                  ,
interconnected system,.the more difficult it is to make 4

the appropriate correction. The automatic load control I areas must accelerate their systems sufficiently to increase the frequency, and it is necessary that all l attempt to increase at the same time. This correction ,

.' proceduge.is outlined in the Operating Procedure outlined i -
                                          'on Exhibit RLH - 7.

l i ' i . Q. What is meant by spinning reserve requirements and what - ) is the importance of those requirements? A. If each generator connected to the system was operating ! at full cap, ability and had no reserve capacity, it would' . l be unable to respond under governor. response or automatic j -- control to increases in inlectrical energy requirements by the consumer or respond to unusual deviations resulting f ( l from losses of generating capacity. As a result, reliability _. 1 would decline and quality of' service would decline. To j . j respond to these deviations certain spinning reserve must be carried in any interconnected system. This simply means l 'that 'Ndditional reserve capacity must be available in suf-

  • L ficient quantity to provide a satisfactory level of reli-i ability and quality of electric service'so that under the

) ,, j governor action and load control action previously described . I i 1 instant' responses could.be accommodated by the currently

                                                                                                                                                                                    \

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                                                                                                               \

l operating generators. The. required s' pinning reserve is I determined under.the operating criteria outlined in Exhibit RLH - 7. . Q. How is communication and control maintained among the seven control areas? A. To provide the necessary communication and control, certain security centers have been established to gather periodic data on various utility generation and ' load information, to provide communications between the various load control centers, to hel'p diagnose the system disturbances, and

  • to coordinate the required response to both normal changes and severe changes. This varies in scope from normal, routine, day-to-day operation to the restoration of service
  • in the event of severe cascading disruptions.

In the ERCOT system, the evolutionary development of the Texas Interconnected System and the subsequent development . of the ERCOT system led to the development of two regional security centers, as illustrated in Exhibit RLH - 8. One located in the south part of the ERCOT system, coordinating the activities of the Central Power & Light Company, Houston Lighting & Power Company, City Public .Ser.v. ice Board and 4 j e t

(. ([ Lower Colorado River Authority load control areas. This , security center is located in the Lower Colorado River 4 Authority Energy Control Center in Austin, Texas. The coordination of the area load control'in North Texas, comprised of Texas Electric Service Company, Dallas Power & i i Light Company, Texas Municipal Power Pool and Texas Power & i Light Company is , handled through the North Texas Security Center located in Texas Power & Light Energy Control Center in Dallas, Texas. These two control centers communicate very closely and provide the necessary coordination for i routine day-to-day operation within.the; .. area load control 1

                                                                                                   ~.                        a
,-                                     systems and under any and all adverse system circumstances.
                                                                                                                                          ; -          e                         .

_ . .{ Q. 11r. Hancock, how has the interconnected system been

- :. c successful in' achieving economical, reliable service 1

i m. 2 torthe public?' ' ":;ic . .

                                                                                                                        . jrs                         m :-                   n l

The cjeneral: philosophy has been that each utilily is I r I h.cA. 1 l,  ; as responsible for the planning and installation of the

                   ^             ~

necessary capacity:and facilities to meet the service , obligations within their service area.- The purpose o.f . the major transmission systems is to provide the inter-

                                  . connections.'between the utilities, to provide for synchronous operation, the tra                                                  f power under emergency conditions,

{ and the general improvement in reliability throughout the' interconnected area. Each utility involved has'been s

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C, q responsible for the physical' construction of the~ facilities within their system and has coordinated those plans a'nd actions with the remaining members. Recently, the close coordination and planning relation-ship has led to the planning and construction of . jointly owned generating and transmission facilities with the potential benefits flowing to the ponsumers in the respective service areas.

  • The ERCOT systems have enjoyed excellent reputations and performance when compared to other interconnected systems in the United States. The interconnected system has
                     .      been small enough to be very responsive and large enough to be resourceful.
                                                            'It has had a long history    .

of excellent service and has functioned on a mutual ' benefit and cooperative basis as opposed to encumbering legislation or contractual arrangements. Through cooperation, coordinated planning and operating by the participants, a highly reliable interconnected system has evolved that has provided reliable electric service ' at min'imum cost to the customers of the respective electric utilities that are privileged to provide that . service. N 4

( . Q.- Mr. Hancock, you have testified regarding the history, s 1 purpose and operations of the ERCOT system, as well as the complexities of operating an interconnected system. ~ How is this important to a proper disposition in this ,.

                               . proceeding?                                                                            "

A. 'I believe that this background information is vital in 4 order that a proper, assessment may be made.of any consequences of the disruption of the inf.erconnected system which might adversely affect planning of j facilities and reliability, of service. A utilityr , aba.lity to ineet future energy requirements requires decisions between five and ten years in advance. Many utilities have jointly owned facilities under . construction and many more are being planned. It is essential that the existing disruption be remedied

,                              in order to have the necessary assurances which_will allow the resumption of planning and reliable service.
                                                                       ~

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MAJOR TRANSMISSION NETWORK

  • WITHIN E.R.C.O.T. .
                                                                                                                                                                             ~.**.*
                                                                                                                                                                       -                                  l 4

8

  • 9
               =                                                                    .                                                                                                                     j

(- (- EXHIBIT RLM - 3 4. l MAJOR GENERATING. FACILITIES COMPRISING ' i i BULK POWER SUPPLY WITHIN ERCOT Energy Peak Demand, Customers System MWH MW Served HLP ' 43,427,292 8,219 . 759,085 TP&L 20,296,815 4,519 - 397,434 TESCO 17,053,989 3,392 447,097 CP&L 10,480,950 2,024 376,110 DPL 10,269,708 2,378 251,982' . CPSB 6;179,666 1,560 273,610'

 .              TMPP                3,864,627                     930              194,300 Est.'

WTU 3,766,727 - 675 136,824 LCRA 3,417,582 780 229,908'Est. COA - 2,823,736 711 124,121 O G a 9 e e

                                               ,8 0

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h - (~ EXHIBIT RLH - 4*. . . ' 4 1 oCT. '75 - 30 SEPT. '76 ERCOT BOARD

                 . R. W. Hardy, CPL, Chairman C. E. Duckworth, Garland, Vice Chairman                                                                    -

J. M. Ammons, Mid-West Elec. Coop J. P._ Dealy, CPSB, replaced by J. K. Spruce, dPSB R. E. Kennedy, WTU, replaced by Durwood Chalker, W'NU , Don D. Jordan, HLP D. F. Blackburn, Denton, replaced by Jim Wright, Denton , Charles F. Harring, LCRA , W. G. Marquardt, TESCO , Ross Segrest, Brazos Elec. Coop. J. F. Skelton, TPL . T. S. Turner, Jr., DPL - e e 1 e 9 0 v e 0 9 9 . 0

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                                                                                                                              /

( ,XHIBIT RLH - 5

                                                                                                                                                                                                                                           )

1 OCT. '76 - 30 SEPT. ' 77 ERCOT BOARD . W. G. Marquardt, Chairman, TESCO ' C. E. Duckworth, Vice Chairman, Garland J. F. Farrington, DPL , l J. M. Ammons, Mid-West Elec. Coop J. K. Spruce, CPSB , Durwood Chalker, WTU . . Don N. Jordan, HLP Jim Wright, Denton Charles F. Harring, LCRA . Ross Segrest, Brazos Elec.' Coop. . J. F. Skelton, TPL L. S. Turner, DPL

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          %                                                                   e
                                                                                                              '"3   1
       .                                        TEXAS INTERCONNECTED SYSTEH .
Com!TTEES ~

(May 1975 - May 1976)

            .                         Corporate                                                                               -

Chief Administrative Planning Operating Executive Committee Subcommittee Subcommittee Brazos Elec. Power _ R. A. Segrest William B. Townsend, Jr. Paul R. Cunningham Dan Swenke* Cooperative, Inc. (Icxas Municipal Power Pool) - 2404 La Salle Ave. P. O. Box 5295 . Wacon Texas 76705 7)7S2-250) W. G. Siegelin J. H. Habe* Central Feuer & Light Co. R. W. Hardy Don Daniel

  • P. O. Box 2121 C. E. Orsak** H. C. Barr***

Corpus Christi, Tex.-78403 , (512) 883-2631 City of Austin Dan H. Davidson R. L. Hancock. Emmett C. Rummel

  • P. O. Box 1038
                                                            -(Chairman)                   Eugene Preston**    G. C. Pokorny*)

(Vice-Chairs.an

                                                                                                                                      ~
                                          "                                                                  .Chris Ioannou**

Austin. Texas 78767 - (512) 477-6511 City Public Service Board Jack Spruce Jesse B. Poston Sam Mayo

  • R. J. Castello*

P. O. Box 1771 . Paul' Graf** Phil McEnery*** San Antonio, Texas 78295 . .

  2)227-3211 Dallas Power & Light Co.            L. S. Turner, Jr.      Max H. Tanner, Jr.           C. D, Montgomery
  • R. K. Pa'yne*

1505 Commerce Streat (Vice-Chairman) Lloyd O. Heizer** Harold Geist*** Dallas, Texas 75201 - . (214) 747-4011 Revised 3-9-76

Page 2 Corpc. ate . Chief Administrative Planning Goerating Executive Comittee Subcomittee_ Subcomittee_ . Houston Lighting & Power Co. Den 3. Jordan D.' E. Simons K. L. h'illiams* Charles F. Ham

  • P. O. Box 1700 .

F. J. Heyer** *

                                                                                                       ~

W. H. Rasco*** Houston, Texas 77001 * ~ (713) 228-9211 - Lower Colorado River Authority Charles F. Herring E. H. Soderberg Ralph G. Helyer* H. T. Sites

  • F 0. Box 220 (Chainnan) F. E. Frazier*** .

,s tin, Texhs 78767 Larry J. Krenek** (512) 474-5931 . T xts Electric Service Co. ' W. G..Marquardt L. F. Fikar Henry L. Hanning* J. M. Pennebaker* P. O. Box 970 H. K. Bassinger*** Ft. Worth, Texas 76101 , . (817)336-9411 Texas Power & Light Co. J. F. Skelton G. R. Coffman . Joseph Jurlina* H. J. Simiele* ' P. O. Box 6331 . Cecil Oradat** Johnny L. Ray *** Dallas, Texas 75222 u (214)748,-5411 . tMst Texas utilities ' R. E. Kenn2dy Randal G. Meador Donovin Smith

  • Randal G. 'Meador*

P 0. Box 841 (Vice-Chairann) (Chairman)

        .lene, Texas 79604                                                              '          .

Carl Yancy*** (915) 672-3251 . CHembers ** Alternates or Contacts *** Chief System Operators Revised 3-9-76

  ~.-                                                                                                                                      ,

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Apprev:d & Adeptcd { ' f, g 4-

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TIS Administrativa. Concittas 2-23-68 '" "

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                                     .                                                                                                                                        EXHIBIT RLH - 7 2

Page 1 e

                                                                       . TEXAS INTERCONNECTED SYSTEM                                            '

OPERATING CRITERIA

                                                                       ,,                                                                    I
                                                                       ~

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                                                                                                                                             ^*

A. - BASIC PRINCIPLES OF SYSTEM ~ LOAD AND CAPACITY r *

1. Each contIrol area will provide the real and react ve power required for its load so as not to' impose-its regulating burden on the Texas Int'erconnected System.' ~
2. Uni'c and.line maintenance outages will be,loordinated. - ,

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                                                                  ^                                                                    %

B. FACILITIES ' / '

                                             ,                                                                                4
                                                                                                                                         /.                            .

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1. Each control area will have in service adequa.ca and sufficient trans- ,
                                                                                                                                                                 .r              ,

mission tie-1!.nas with proper relaying. and other substa'clon equipment to receive or deliver power under ' normal and emagency conditions

   .                                  avoiding undue disturbance to the remainder of the" system.
2. Kilowatt telemetering and kilowatt-hour readings will be available to
                                    .cbntrol centers on all tie-lines affecting interconnected opeiration.

1 C. ' GENERATION ~ OPERATING PROCEDURES ~ i' '

1. Scheduled Power Channes ' swr o e <
                                                                                                                                                                                          ~

Scheduled power interchanges betbeen areas will be changed at a -

                                                                                                                                                                                                                  ^

uniform rate which will not adversely affect operation of any control . area. '

                                                                                      /'                                      D                               <

7

                                           '                                                                                                              /,
2. Tie-Line Bias Operation .<

g The automatic generation control equipment.will usa a bias setting , as close as possible to its centrol Erea response characteristic.

                                                                                                               >I
  • 3.. Time Error Correction Proce' dor,e, .(

7 I'One control area will be designated as the monitori.rg sy/ tem and r / responsible for initiat)ng time' error corrections '/td such. correction notification will be passed to' the other control' areas of TIS. w, 6 ama. ; *'4 . *

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EXHIBIT RLH - 7

   ....      .....                                                                                                                        Pago 2 Y.
                                                                                         .                                                                    I D. SPINNING RESERVE North Texas will maintain a minimum spinning reserve of not less than the . stun of the capability of the largest unit in operation in North i

Texas plus 100 Hw. The allocation cf this spinning reserve will be ag-

  • reed upon mptually.

South Texas will maintain a minimum spinning reserve of not less than the sum of the capability of the largest unit in operation in South Texas plus 100 Mw. The allocation of this spinning reserve will be agreed upon mutually.

!                             Each control area will maintain the assigned minimum spinning reserve
                            .within its own control area.

Spinning reserve will be distributed so that all allocated spinning. reserve will be utilitzed in normal governor action before reaching the j first step in load shedding. ' E. AUTOMATIC VOLTAGE REGULATORS -

                           . Generator automatic voltage regulators will be kept in service whenever                                                -

possible. Each control center will continuously monitor and control the

status of the regulators, i

T. LOAD SHEDDING - I l Automatic load shedding will be initiated as follows': Frecuency  % Load Relief . 59.3 5% 58.9 '10% 58.5 . 10% _. Load shedding will be widely dispersed in each control area and accom-plished by. using high speed underfrequency relays with no more than Jo l cycles fixed time delay except for existing relays in service which can-l not rea,sonably be modified. 1f the frequency drops below 58.4 cycles, each system must determine additional steps it will take to survive and 0

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                                                                         )                                                         /                          T it is desirable that each system will continue to drop load to attempt O

to stabilize, frequency. Underfrequency re?:9ys may b;e installed on the

                                . transmission' interconnections with the consent of the ' systems involved i

providing the relays are set at 58.0 cycles or belo.w and are not direc-tional and have at least 2.0 seconds tir.e delay. Load restoration will be under 'the d' irection of each cont' rol area ope" rating center. G. SECURITY CENTERS Two . centralized Interconnected System Security Centers will be main-

                                'tained. The LCRA Operating Center will serve this ' function for South Texas and the Texas Poyer & Light Operating Center vill serve this function for North Texas. These Centers' will maintain a continuous surveillance of' the status of operating conditions,cnd act as a central information collection land dissemination point dor the individual control areas.                                               ,

H. PROTECTIVE RELAYING Adjacent areas will review, coordinate, and exchange protective relaying information and settings which affect i'nterconnected operations. in -

                                .7       2 ;,

c :w , I. COSNUNICATIONS

                                                                                                                                 \
           .                     Adequate and reliable communications will be provided between the oper-ating centers of directly interconnected control areas and to the
                                                                   /                                   \

appropriate Se.:urity Center. 0These con:munications' will be operational without power supplied from? the power s'ystem'. f J'. - EMERGENCY OPERATING PROCEDURES Each operating entity will have emergency operating procedures for res-t toration- of service: in event of partial or .com;1'ete system shutdown. V 1

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ELECTS .. , RELI ABILITY COUNCIL t.. TEXAS CONTROL AREAS a INTRASYSTEM COMMUNICATION FACILITIES i

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                                                                                                           !I kONTROL AREA 6                          l                            AREA T                               bCONTROL                          1 A

l CONTROL l [ AREA 5 l g WTU jj TESCO I S* I l, DPSL ' l j Al E TEXAS

                                                                                                                .I                                        I l                                        l.         l MUNICIPAL        ;

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CONTROL AREA 4 ] 1 AE l a

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ag, TEXAS 1 OF i { [_ pCNTROL AREAL l S ECURITY CENTE AUSTiti --- - - - . l, l hONTROLAREA{ 3 1O ai i . I I I I 1 [ I L J HL&P l I l CPSB 1 l A l--- $- F F I E_ .; i 1 g- - - - - - - - - - - - - [ t L __ _. __ _J ~j ,j L __ _____._] iA, . 888 I IAI l I j i cpgg [a lAl ' sB8 p i 1 I + K 1 . CITY UT E0lN I OF TEXAS ELECTRIC j i ll BROWNS-ELECTRIC CO-OP  ! l VILLE -O g

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I-COMMUNICATION CHANNEL CODE *. A- LEASED FULL PERIOD TELEPHONE CIRCulT B - POWER LINE CARRIER C - PRIVATE CABLE PAlR WITH MAGNETO SIGNALING D - LOCAL TELEPHONE LINES l E - RADIO- TELEPHONE

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               .                                                        r

(~- '\ bypmmk .8 ELECTRIC RELIABILITY COUNCIL OF TEXAS AGREEMENT W # 4 l/ c'o PREAMBLE g f [N,

                                                                ~               '

4N j With the desire: . b (1) 'to serve better their respective customers; 4 N (2) to render more. reliable service;

                          '(3) to ensure the availability of ample electric power and energy .

now and in the future; and With the belief: (1) that availability of an adequate and reliable supply of electric power and energy is a necessity; i (2) that voluntary cooperation between those responsible for . supplying electric power and energy is the only satisfactory way to achieve the degr'ee and type of cooperation which __ would be meaningful; - (3) that' exchange of information between those supplying electric power and energy ~is of great benefit in the performance of their respective obligations;

                       -(4)    that cooperation can be achieved best through voluntary                            .

creation and operation of a reliability council;- - the undersign'ed have cr'ented the Electric Reliability Council of Texas, and hereby become members thereof. .

                                                                           ~

ARTICLE L Purpose. Section 1 The purpose of the Electric Reliability Council of Texas (hereinafter referred to as the Council) is to promote the reliable operation of power systems by: . (a) exchanging information concerning the planning and operation of generating, transmission and distribution facilities; (

                                              ~                                   _

([ ( , (b)- exchanging information pertinent to materials, supplies, equip-ment, and manpower available to others in the restoration of service dis'rupted by hurricanes, cyclones, tornadoes,~ floods, riots, enemy attack and disorders; (c) maintaining direct communication channels for the purpose of rendering total aid to victims in the event of enemy attack, thereby providing maximum civil defense for.all rnernbers of the Council;- - (d) providing a means of' exchanging information and system' data and for making necessary regional studies -designed to increase the reliability of such po'wer systems under all normal and l abnormal circumstances; and by (e) creating a vehicle for the reporting, where appropriate, of - information to regulatory agencies . ~. ' Section 2 The responsibility of the Council is to assist in the achieve-ment of the purposes set out in Section 1 above; however, it is understood that this responsibility -shall not conflict with the responsibility of the individual member systems and associations to carry out their own coordination of plannNg and operation within their respective areas.. ARTICLE II.

               ~

Qualifications for Membership Section 1. Any entity, corporate or otherwise, including agencies of the Federal government or federally-owned or financed systems and state, municipal or other government-owned or financed entities, which owns, controls and operates an electric power system in Texas, all or O e

                                                                                                  ~
                                                               . 2..

( . (.. part of which consists of facilities for the generation, transmission or ' distribution of electric energy in purely intrastate commerce-(that is, not directly or indirectly transmitting, buying or selling electric energy in interstate commerce) and serving the public (members served by rural electric cooperatives shall be considered "public" for the purpose of this provision) may be admitted to membership in the Council. Section 2 Any electric system which meets the above qualifications for membership and has executed this Agreement'sihall be a member of the Council so long as that member continues to meet these qualifit.ations and the obligations of membership. Section 3. Any other electric system which meets th'e above qualifi-cations for membership and makes written application for membership to the Chairman .of the Executive Board of the Council will be approved for ,

                 ' membership and upon signing a copy of this Agreement shall become a member with equal. standing to the parties originally signing this Agreement and remain a member so long as. it continues to meet the qualifications and
                 - obligations of membership.         .2           .

ARTICLE III. Memb'er Reoresentatives Each member shall appoint a representative, which representative shall be one of its employees, to act for it at meetings of the Council and shall give to the Chairman of the Executive Board in writing the name of the person thus appointed. e. e 9

( - C _ ARTICLE IV. - Meetings . The organizational meeting of the Council was held on the day of ,1970 at . I l Subsequent meetings of the Council shall convene at least annually on a date and at a place to be established by, the Executive Board. Additional'

                                                                                                                                           ~

meetings of the Council may be held provided that such meetings have

                                                            ~                                    '

been authorized by the Executive Board and provided that written notice of any such meeting shall be mailed to all members 6f the Council at least three (3) weeks prior to the scheduled date of the mehting. . ARTICLE V. l Organization. . Section 1 The affairs of the Council shall be administered by an . Executive Board of twelve (12) representatiYes elected by the Council. The Executive Board shall be selected so as to provide representation, , in so far as practicable, from each of the various types of systems com-prising the membership of the Councii, i. e. , investor-owned, fede'ral, state, municipal, cooperative and large and small systems. The

                '~ Executive Boar'd shall include at leasti three (3) representatives of non-investor-owned systems (federal, state, municipal or cooperative) and at least three (3) representatives of investor-owned systems.                                                          '

Section 2. The Executive Bo'ard shall be elected initially at the ' organizational meeting of the, Council and annually thereafter at the annual meeting of the Council, in each case for a term of one (1) year and by a ,

                                                                ~

majority of the votes (as established in Article VI) of members present and voting at Euch meetings. o l l , .

I .

( (

(- ( o . Section 3 The Executiv'e Board shall elect initially at the organizational meeting ,of the Council and annually thereafter from the Board's membership

 .                   a Chairman and a Vice-Chairman. In addition, the Executive Iioard shall
                                                                                                 ~

appoint a Secretary-Treasurer who need not be a member of the Council. The Executive Board may employ such staff and may appoint such committees or subcommittees and/or task forces from employees of the Council members as it deems appropriate to carry out the purposes of the Council. - Secticn 4. Prior to each anmfal meeting a Nominating Committee shall function. Such Nominating Committee shall be appointed by the Chairman of the Executive Board at least two (2) months in advince of the annual meeting.. It shall be the duty of the Nominating Committee to nominate qualified representatives of the members of the Council for election to the Executive Board. The report of the Nominating Committee shall be mailed to all members at least two (2) weeks prior to the annual meeting. The Nominating Committee .; . , shall consist of four (4) representatives.of the Council, I two (2) of whom shall represent noninvestor-owned systems and two (2) of . whom shall represent investor-owned systems. The Nominating Committee shall nominate a total of twelve (12) persons for election to the Executive Board at the next annual meeting of the Council. Additional nominations for election to this Board may be made at the annual meeting provided, however, that the Board elected at the annual meeting . shall satisfy Section 1 of this Article. Section 5. Meetings of the Executive Board shall be held at lea'st annually upon call of the Chairman. The Chairman may call additional meetings of the Executive Board as required. The Chairman shall preside i h g a w

A \ . C e at all meetirigs and shall be responsible for preparation of agendas for such meetings. In the absence of the Chairman the Vice-Chairman shall ser.ve in his place. The Secretary-Treasurer shall be responsible under direction of the Chairman for timely issuance of notices and agendas of . meetings, the keeping of accurate minutes of meetings, the distribution. of such minutes and other communications to all inembers of the Council, and the reporting, where appropriate, of information to regulatcry agencies. Section 6. Nine (9) members of the Executive Board shall constitute a quorum and 75% of the voting strength of the Councii shall constitute a quorum at meetings of the Council.

  • ARTICLE VI. J . . .

Voting Strength of Members l r Prior to each annual meeting of the Council, the Chairman of the E:cecutive Board shall have prepared 'and sent' to each member a written tabulation showing the voting strength of each member of the Council.

                                                                                                 ~
               .-           The' voting strength shall be determined by the following formula:                         .
                                                                        ~~         '

V = 1000 x' M/T , 9 M'= Average kwh handled by member through the l intrastate system which is the basis for its membership herein during three (3) preceding - calendar years (reported on FPC Form 1 as Disposition of Energy-Total or equivalent for l systems not reporting on Form 1). , - i l j T = The sum of M for all members' V = Voting strength of member (expressed in

                                ~

nearest whole number but not less than one vote per member). r

                  ,                                                  .6-
                                                 ~~                                              "
( .

c l Such voting strength shall prevail from the convening of each annual meeting until the convening of the next following annual meeting. Each member must report for each year, on a calendar year basis frorn the i; above described FPC Form 1, the energy account for its system. For each member the value of M in the formula shall be the average of the energy accounts for the three (3) calendar years immediately preceding the next annual meeting. Such energy reports shall be made to the~ Chairman of the Executive Board not less than three (3) months prior to the o next scheduled annual meeting. ARTICLE VII. Functions of the Executive Board i . Section 1. It shall be the duty of the Executive Board to initiate the

    .                   action required, in their opinion, to fulfill the purposes of the Council as stated in      rticle I within the limitations set out herein. The Executive Board or such committee or individual as may be appointed by the Executive Board shall (a) assemble and distribute to members information from each                                            ~

member with respect to the items mentioned in Article I. Section I hereinaboye; (b) assemble and distribute to members information pertaining . to reliability of service; (c) aid in obtaining information recinested by any member or group 'of members pertaining to matters related to availability and reliability of service; (d) recommend criteria for such elements of design as affect the reliability of any interconnected bulk power system, and recommend procedures for the effective establishment of up-to-date information which is vital in maintaining maximum reliability in the e

      , ,          -              w                 ,,      , - - - - - -       - - - - - - -      - - , - - - - -   --      -    -g -

( * ( ,{ . ( ( j important segment of the electric utility systems between the bulk power supply and the ultimate consumer; and (e) report, w'here appropriate, information to regulatory agencies conc.erned with reliability. . Section 2 Each member of the Council shall report to the Executive Board in such form and for such period of time as may be requested by the Board from time to time such available data for the system which the member represents which are reasonably necessary to prepare and file reports to regulatory agencies as provid'ed for in Section 1 (e) of this Article. Section 3. Each member of the Council shall inform the Executive

     ,                           Board of its plans for generation or transmission additions which signifi-
                                                                                           ~

cantly affect the reliability of operation of the bulk power supply system

                             ' and shall report any decisions as to alterations or changes proposed for                                                      -

i , their respective electric systems whether in generation, transmission, i

                               - distribution, intersystem communication or control or protective equip-                                                   .

1 -

                               . ment, which may significantly affect the reliability,of the interconnected bulk power systems.                                                               -

Section 4. Each member of the Council shall inform the Executive

                       ,        Board of operating procedures or changes in operating procedures which may significantly affect the reliability of operation of the members' s ystems . Upon receipt of such information the Executive Board shall, study, and evaluate (or shall direct such committee, subcommittee or task force l   ,                           .as it may appoint to sfudy and to evaluate) the ojieiating procedures or                        '

proposed changes in operating procedures. Section 5. .The Chairman of the Executive Board shall report to the l Council for its consideration any findings, conclusions and recommendations v we -o--*.,,. --_4 m --_. .-.~_m .., ,, - . _ - .-.,p _- ,iy, yy. . ,, -_ -.,.- . - -7

 .-                                     (                                 (

( (- of the Board with respect to such additions, alterations, operating procedures or proposed changes in operating procedures. ARTICLE VIII. Finances Section 1 The personal and travel expenses of each member of the Council. Executive Board, any committees, subcommittees or task forces that shall be formed, shall be borne by the system which such member repres ents. - Section 2 An administrative budget for the Council for each ensuing year, starting from the date of the organizational' meeting, shall be hdopted at the annual meeting. Such administrative budget (including cost of liability insurance) for the Council itself for each fiscal year (October 1 through the following September 30) shall be prepared by the Executive *

               . Board -and submitted to the Council at the annual meeting, and to be
         ,      effective must be approved by the affirmative vote of not less than two-thirds.of the voting strength of the Council (as such voting strength is defined in Article VI); provided a budget for administrative expenses which may be incurred by the Council between time of formation and September 1970, and the method of meeting same shall be agreed upon at the organi-zational meeting.                                       ,

Section 3. The administrative expenses of the Council shall be financed by funds received from annual dues levied against the members ' of the Council in proportion to each member's voting strength at the - beginning of the fiscal year for which the budget of such administrative ' expenses was adopted. The foregoing basis for apportionment of the ' 4 6 en *

                                                        ^

( ( .

                       . Council's administrative expenses will be reviewed annually by the Executive
                      - Board and may be modified by that Board to assure equitable distribution of
  • the Council's expenses among the member systems.

i Section 4. Each member, shall be notified of the ~ administrative budget and its proportionate share of the administrative expenses of the Council at least thirty (30) days before the beginning of the fiscal year.

                             - Section 5. Any member may withdraw fr'om the Council after the budget i                                                                                                              -

is approved, and will thereby be relieved of any obligation to pay any part

of such administrative expenses, provided notice of the desire to withdraw is given before beginning of the fiscal year, so that .such withdrawal can, be taken into account in determining the proportionate share of those .

members remaining as members. Section 6. The Secretary-Treasurer shall bill each member within thirty (30) days after adoption of the budget and each member shall pay such dues within sixty (60) cays after billing date. , Section 7. No member shall, without its consent, be responsible for the administrative expenses of the Council in any one year in excess of . Its proportion of the amount budgeted for administrative expenses for that year. . Section 8. Special projects may be separately budgeted and the cost . allocated upon any basis agreed upon by those participating in such special project. . ARTICLE IX. t ! Termination of Membership - - l l Section 1. Notwithstanding any other provision of this Agreement' or any amendment of this Agreement, any member may terminate its

                                    .          g e

9 10 - l _

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          ~

ebligations undar this Agrosmsnt, other than its obligations to pay its 4 proportionate share of the administrative expenses of the Council for the full fiscal year within which auch termination is effective, at any time upon thirty (30) days' notice,'whereupon it shall cease to be a member of the Council. Section 2 The Council may be dissolved by a vote of a majority of the voting strength.

  • ARTICLE X.

Amendment This Agreement may be amended at the annual meeting by a vote.of - t two-thirds of the voting strength of the members; provided no amendment . shall curtail the right of a member to withdraw from the Council as set out in Article VIII, Section 5, and Article IX hereof. . ARTICLE XI. . General - Section 1. It is agreed that this Council is a voluntary association and no member shall be subject to any type of' claim, whatsoever by reason

,                    of any action or failure to act of said member or any other member as there is no legal obligation on any member to do any act or refrain from doing any act hereunder. Each member shall do such things and perform i                     such acts as such member may deem desirable.

Section 2 Each member shall retain sole control of its own facilities and the use thereof, and nothing in this Agreement shall require a member to construct or dedicate facilities for tite benefit of ani other En.embe'r or allow its facilities to be used by any other member, or to construct or I l . i l l . .

           - . v g,                                           .y                                            ,

( ( prcivide any facilities for its own use, and nothing herein shall be deemed to impair the ability or right of any member to take such actions or to fail to act, as it deems necessary or desirable, with respect to the management, , extension, construction, maintenance and operation of'its own facilities, present and future. ARTICLE XII. . Term This Agreement shall continue until terminated by agreement of a

,                         majority of the voting strength of its members.

1 IN WITNESS -WHEREOF, the parties hereto have caused this Agreement to be duly e3cecuted as of the day of , A. D. 1970. , O

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TEXAS INTERCONNECTED SYSTEM 56 @'d COORDINATION AGREEMENT i ! - ai

                                                                                                                                                                                        }  '

ARTICLE I e 3 Purpose of Agreement , ,,

                                                    ' ' For more than 25 years the el'ectric power systems comp. rising the ,

North Texas Interconnected Systems have successfully operated intercon- ,

                                 , nected with and in synchronism with the electric power. systems comprising         ,
                  ~

the South Texas Interconnected Systems. The joint operation of these two groups has come to be known as the Texas Interconnected System.

                                                          . Committees responsible for coordinating operations and planning bulk poiwcr supply facilities have functioned on a regular basis for many                                                                           ,

_ years. Due to the growth of loads necessitating use of larger' generating '. pnits, and EHV and other high capacity transmission lines, it is rec'ognized l that the best approach to maintaining maxi num reliability of bulk pow.er

supply facilities for the Texas Interconnected S'ys't'em is through continuing -

and strengthening these coerdinating committees. It is further recognized - that reliability of bulk power supply can best be achieved by a manageable. [' number of electric systems operating within a major area of reasonable geographical boundaries. To insure the mt>st effective coorciination of planning and operation of bulk power supply facilitics to obtain maximum reliability the parties to this agreement agrec as follows: ,

                                                                                                                  ~
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                                                                                        , (                                               .

ARTICLE II . . Administrative Committee , 1

                                                   . Each party shall, after executien of this agreemen
                      '             designate by written notice to the other parties a perso
                 ,.          ,"                                                                              n to act as its                                        ,

representative as a member of a group to be known e a's th Ad rninistrative-Committee, hereinafter referred to as the " Committee" . Each person so appointed shall have the authority to act for hisycompan n ady~ matter

                                                                                                                                             'i
                                ,p'ertaining to the ' purposes o{ this agreement.                                  -
  • The members of the Committee shall decide emselves
                                                                                               ,                              among th the date and location for each meeting, which shall b e at least once annually.

Location of the meeting shall be rotated among  :: the '. parti - es and the member

                          .trepresenting.the party spo .::oring the meeting shall s
 ~

erve as Ch_irman c f . -

                                                                                                                                                                         ,c
                            ,the Committee for that meeting.                                     .

The responsibilities of the Administrative Committee sh a be: '

                                           ,    l..                                          ',                            ..
                                                        . Determine and establish general policy with                               regard to coordination'of planning and operation of the Texas n er-It connected Systems.                                                                                     ,

2 . I Review and cycluate criteria and procedures affectin g the .: reliability of bulk power supply facilities.

3. .

Appoint chai'rmen and mak'e assignments as referred t o under Articles III and IV to the Planning Subcommittee

                                                                                            .                                 e and th
                                 .                     Operating Subcommittec, and such other subcommitte                  es as                                '

4 6

                                                                                      ,                                                                                 ,                                                                               i
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                                                                                                                                                                                                                             ,                          l
           ..              ..                                                                                                                                                                                                                           \

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    ..            .                                                       the Committee may deem desirable to assist it in getting                                                                                           ,

information; studying and reviewing pians; and evaluating criteria and procedu'r es affecting th'e r'cliability of bulk pow'er supply facilitics. ,

                                   .                            4.        Provide information and data to each of the parties a$d to                                                      -
                          ~

other organizations as deemed necessary. ' . ' .- * ~

                                                                                                               .        :                                                                                             ...                           c ARTICLE III                                                                                  '

Pir.nning Subcommittee . Each member of the Administrative Committee .shall appoint a. - person to act as his representative as a member of the Planning Subcommittee. The dt ties of the Planning Subcommittee s1.all be to per%:m and evaluate , , ,

                                 . steady state load flow and stability studies; review basic plans for develop-                                                       .

ment of the systems; make such recommendations as it deems appropria.e to the Committee; and p" erform other planning duties as directed by the <

                                                                                        .;              .t. m              ..             .                                                  .                          .

Committec. They shall meet as often as is necessary' to perform these assignments. -

   .         .                                  .                      ...                          -                              u..                                 ..                ,_

Their studies shall include but not be limited to tise following .

                                                    .           1.       Installed generation res,crves      .

2 Abnormal system conditions .

'3. Major outage contingencies i
4. . Statistical studies
           -t                                                                                                                                                        .

Transmission s'acilities 5. 6 ' Future generation-installations.

                                                                                                                                                                                                               \          .

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The expense of.cach member of the Subcohmmittee shall be borne - by the party by whom he is regularly employed. Any other expense of the subcommittee shall be shared as agreed upon by the Committee. .

                                                ..       .                              ARTICLE IV                      .                                                          ,
                                                                                                                                                                                              ,(

Operating Subcommittee ,,

                                                                                                                                                                                              . l Each member of the Administrative Committee shall appoint a person to act as his repr,esentative as a member of the Operating Subcommittee.

The duties, of the Operating , Subcommittee shall be to make such recommenda.-'

  ~

tions as it deems appropriate to the Committee cov.ering the coordinati,on of all phases of interconnected system operation. , They shall meet as often as is necessary to perform these assignments. .

   ~~

Their studies shall include but not ba limited to the following:

1. Relay settings .
                                                                                                                                  ?,

2 Communication facilities

                                                                                                            ~
                                .                   3.       Allocation of spinning reserve generation                                                                            .             .
4. System dispa'ching procedures ,
5. Load frequency tic line control . ,
6. Load shedding procedures .
                                                    ~l .      Coordination of maintenance schedules
8. System and gr'oup protective measures.- -

Th*c expense of each member of the subcommittee sh'all be borne by

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the party by.whom he is regularly employed. Any other expense of the sub.. committee shall be shared as agreed upon by the Committee. l .

                         *                                              .                         -                       .                                     s               .

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                                                                                                                                                                                                                     .~                       l ARTICLE V
                                                                                                                                                                ~~
                                                                                                                                                                                ~

General Nothing herein shall be construed as making any party liable for . , the breach of this agreement by any other party. Nothing herein.shall be .

                    ~

construed as lirniting or interfering with in any way the power or.right of , each party to control the use and operation of-its own facilities. .

                                              -                                                     ARTICLE VI Termination Any party.to this agreement may' withdraw from and cease to be~

a party liereto at any time by giving written notice to the other parties.

                               ~
                                         -                                                         ARTICLE VII                                     .
                                                                ~

Rel:.tionship of the Parties ' ,- Nothing herein. contained shall'ever be construed to create an . association, joint venture, trust or partnership, or impose a trust.or partnership duty,. obligation or liability on or with regard to any of the parti ~es hereto.' No p' art'y shall have. the right or power to bind any other party without its. express prior written consent. .- l . l l g 5 9 * .

APPROVEDr - ,,

                                                                                                                       '(
                                                      \.

DATED-

                                                                                                                                                                                                 .-                   s CENTRAL POWER Ei LIGHT COMPANY                                                                                   .

M By: ' y

                                                                                                                                                        . June 5,1967 v0Gwu CIT        OF AUSTIN                                                                                             .

By:_ h h 3 , ,, n . - - __m . May 29,1967 4 CL ~[Mch

                                                                                                                                                                      ~

1 CITY-P BLIC' SERV'i'CE BOARD OF SAN ANTONIO . . By: _ h h. N I  %,e -

                                                                                                                                                        - May 31,1967                                     .

DALLAS POWER & LIGHT .

                                                                      -                     COMPANY                      '

By:_ ,., - / '

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F -

                                                                                                                                                       ,May 24,19 67                                     .

j HOUSTON LICHTING & POWER COMPANY - ' ' By:_ /  % ,. ' _- [May 24. k 967

               -         LOWE)            COLO                                                                                                             .
                                                .          Oc._.RIVER AUTHORITY      .-                 -                       ._;                               -

By: /

                                                           ~                                                                                                              -                                   .

_May 30,1967 TEXAS E EUTRIC SERVICE COMPANY ' B: Y

                                                                                  -M y
                                                                                                                                              '_ May 24. h967                                      '

TEXAS POWER & LIGHT COMPANY . By:_ 4 3 - May 24,1967 ' WEST TEXAS x ILITIES COMPANY By: M EMd-r .

                                                                .                                                 .          -             _Ma y 24 , 19_67 ' .

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{ (' ' Tha cgratment ef May,1967, octcbliching tha T2xas Intercennsetsd ) Systems (" TIS") is hereby amended so as to include as a member, from this date, the Texas Municipal Power Pool (co= posed of the cities of . Denton, Garland, Bryan and Gree'nville and Brazos Electric Power Cooperative, Inc. and represented in TIS by Brazos Electric Power Cooperative, Inc.). March 19, 1974 '

                                                                                                                                                ~

CENTRAL POWER AND LIGHT COMPANY CITY OF AUSTIN - o Bye ,w b _f By:  % fA . ' ' - 1 CITY PUBLIC SERVICE BOARD OF . SAN ANTON,IO DAliAS POWER & LI CGIPANY

     .               By-       \ 7 [,                            By: .                    pa       d -              -
                                                       /                                                /         ,

HOUSTON IC I' POWER COMPANY LOWER C 0- 0 RIVE THORI By: A -6" By:

                                                                                    /

v - TEXAS CTRIC SERVICE COFTAhT TEXAS PORER p & LJGHT CGIPAh"I By: r Byi . g WEST TEXAS ITIES COMPAhY TEXAS FUNI . PAL POWER POOL By: t A ./A Ym A n By: Mrd L4/LQW ' ( - x> g . 1 E G e . l

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S. TESTIMONY'OF H. L. PETERSON [ ~.b ASSISTANT DIRECTOR ELECTRIC UTILITY oggy h( CITY OF AUSTIN

Ag221973 D
                                             -                                   &               w-P**        SW Q.          For the record, please state,your name and posit 1 hv A.          My name is Howard L. Peterson.

I am employed by the City of Austin as Assistant Director of the Electric Department. My background and qualifications are attached to this testimony-. P Q. What is the purpose of your testimony in this. proceeding? A. The purpose of my testimony is to explain how the disruption of the ERCOT system on May 4, 1976, increased the daily operating costs for the Austin Electric System, how the w a disruption reduced the reliability of Austin's system, and ' how the disruption has affect ~ed planning and the current '. costs of committed projects. Additionally, my testimony will recommend Commission action for relief from the

                        ' disruption of the ERCOT system.

Q. Would you briefly describe the Austin Electric System

  • and its history.

A. The City of Austin Electric System was initially formed in 1895 with the, completion of the first power plant. The System has grown to a system demand of 711 megawatts and a system generating capacity of 1,000 megawatts. The l principal growth of the system has occurred since 1950.

                                                       -1_                  .

The. City of Austin system serves a 410 square mile area. This area covers about 50t'of,Travis County and includes , . all the incorporated area of Austin. The Electric System serves 124,000 customers. The system originally only served approximately the incorporated limits of the. City until 1939 when, through an agreement with LCRA', thtesystem

                      .          expanded into the 410 square mile area.         Austin now has          -

10 generating units located at 3 power plan'ts. The Seaholm . t Plant located in the 800 block of West First Street has five , generatingunitsof-I20megawattcapacity. The Holly Plant I located at Holly Street and Pedernaies ' Street 'has four gene - t rating units with a capacity of 555 megawatts. The Decker

                                                                        ~

Plant has one generating uisit of 325 megawatt capacity. A second u6it is near completion at this plant, having a capacity of 400 megawatts. The transmission sy, stem consists

                                                                                                     ~

of both 69KV lines and 138KV lines. The 69KV system forms l an inner transmis,sion grid. ' This grid connects the Seaholm Plant and Holly Plant in'to the 138KV system. The 138KV lines form an outer transmission loop around the City. . , Q. Are the present units able to burn fuels other than - natural gas? ' A. The present operating. units are designed for burning '

natural gas with limited emergency capability of burning -

either #2 or 45 fuel oil. Decker Unit No. 2 will have 5 l t . 9 x-L . _ ,

( capability of burning either gas or oil. This Decker - Unit was committed before the gas shortage developed and could not be substantially. changed other than adding fuel oil burning capability. , . s Q. Describe how the Austin System is interconnected with LCRA. . K. Austin made l'ts first interconnection with another - utility in 1938 by contractual agreement with the Lower -

                                                       , Colorado River Authority.                                             This agreement has been
  • modified several times, and with a hew agreement in t >

1966 provides additional interconnections and joint use of right-of-ways and facilities. The present interconnec-tions with the Lower Colorado River Authority include - three 69KV connections and three 138KV connections. Austin is participating With LCRA in joint planning, joint . generating facilities, joint trans' mission and substation

                                                                             ~                                                    ..        .                                                                          .

facilities. These joint projects are evidenced by the

  • Fayette Power Project and by the recent Transmission Agreement for joint transmission facilities. The City of Austin is bordered on three sides by cooperatives .

that are supplied by the Lower Colorado River Authority and on one side by Texas Power &, Light Company.

                                                               -                                                                                                                                                           9 m

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                -       .                       f;                                   (

Q. Is it necessary that Austin be interconnected with the same systems as LCRA? A. Because of the physical relation between Austin and LCRA e systems and the.present interconnections, Austin must of necessity be interconnected with the same utilities as LCRA.

                                                                          .           .                                               ~

Q. What is the history of Austin's participetion in' TIS. . . and ERCOT? - A. Austin was one of five, interconnected utilities in' South, Texas in the 1940's.and 1950's and Austin was one

      ,                           of the original members of.the Texas In~terconnected System (TIS) .       Austin became a member of the Electric Reliability Council of. Texas (ERCOT) in 1970 with 1.ts                                                  . .

formal establishment. Austin has actively participated-

            -                     in all planning and operational level meetingsfof both the ERCOT organization and-the TIS organization. -
  • Q. Des'cribe some of the more.recent planning and commitments ,

of the Austin system. A. Detailed planning of transmission and generation facilities began in the early~1950's with the rapid expansion of , Austin's system. Austin has used the planning and operating O . 4 m

  • p

( / ,

                                         ,                             (                                                    .             !

criteria of the TIS, ERCOT and the older. South Texas  ! l organization i,n developing the long range plan for its system. This ~ planning criteria has allowed Austin to - - i . build larger, more economical. generating units such - ] as the two 100 megawatt. 175 megawatt and 190 megawat't units at the Holly Plant and the 325 megawatt and 400 . megawatt units at the Decker Plant. These. larger units

                                                                                  .                         i.

1 were' built at a . lower cost and .have lower heat ~ rates ' than smaller units that would have had to-- be built- if the interconnection had not existed. i . . i .

Q. Describe Austin't future' generation plans.

A. Austin is committed to 50% joint ownership of two 600 megawatt units in the Fayette' Power Project and 16% of j l two 1250 megawatt. units at the South. Texas Project. Austin's commitment of these two projects and the. successful opera-j tion of the units of these two projects are predicated on the interconnection with ERCOT. The larger units in coal - fired facilities are much more economical per unit cost j than smaller units because of the amount of auxiliary ( equipment required tha't is independent of size. The same ' statement is also true of the nuclear units of the South -

Texas Project. .
                         +                                                        -

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! . = ., Q.. . Is there a' problem in.taking power from the.' south Texas Project if all four participants, CP&L, HL&P, San, Antonio i and Austin, are not interconnected? , L:

A. Yes, if such systbms are not h.fite'rconnected, additiional '
                                                                                                               ..         ,                     ~
             .                        equipment will be required at an- Idditional cost tb,             l' ll    /

connect' to the South . Texas Project / .One me'thod is a - ' - l I DC connection, which' requires co'nsiderable expenditures. . j . This cost' will ~have, to be borne, ultimately, 'by the rate '

                                                      .                                                            /              ,

payers of one or more of-the.sys,temsl. t - , - . + i, Q. Would you describb Austin's transmission ~ system which is~ shown on what has been marked as Exhibit HLP - 1. i A. Austin's transmission system has been developed to ta,ke f~ full advantage of the location 'and int'erconnection with *

                                                                                                                  ~

the ERCOT transmissio.n..rsystem.' The overla'y on the Texas

  • __ .. /
                                                                                                                                                             /

i map (RLH -1) shows Austin's~138KV loop-system and the con. ] nection.to the ERCOT 345KV system.' The planned expansion i <

                                     'of the 'transmisision/systdem is shown in. dashe'd lines and                                                                                       -

i . . . ! provides the. transmission facilities for connection to 4 . the Fayette Power Project and the Sobth Texas Project.' j - - l During the time of disruption the 345KV transmission I system ' north.to .the 'TU. systhm was

  • open and p'rovided no i ,

benefit. This removed from Aust'in the major source of the j ERCOT emergency backup proirided from the TU and Houston

                                                                                                          ~
                                                                                                                                          ~

systems. e f , M "Y .

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( . Q. What is the extent of Aus t.in's commitments to the 4 Fayette and South Texas Project? , A. Austin has committed 2'15 million dollars to the development of the Fayette Power Projsct,180 million dollars to the development of the South Texas Project and 20 m1,llion dollars for transmission systems to connect these projects into Austin's system. The disconnection of the ERCOT systemhasplheeddoubtonbeingabletooperatethese ' facilities at full capacity and has the effect of increasing the cost of these commitments. Q. Did dustin have advance notice of the disruption of ERCOT? A. Austin had no knowledge or indication from the other-t participants that this disconnection would occur when Austin ~ committed to these projects or before WTU's actions of y May 3, 1976, which triggered the disruption of ERCOT. i

                                                                                                                                       .           (

Q. Is the South Texas Project especially important to Austin and its ratepayers? A. The South Texas Project is more important to Austin than . to any of the other participants. While Austin has only 16%.of the project, this portion of the project will I contribute'50% of Austin's ener'gy requirements in the mid-1980's. This offers a very~ good opportunity of lowering electrical' rates to Austin's ratepayers in the mid-1980's. - 9

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                          ~.                                        .       .

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                    .'    O.             What was the impact of th6 recent disruption of ERCOT
?

on' Austin? ' 5 , A. The bifurcated configuration of sthe interconnection reduced the reliability of ' service that Austin provides e , its customers. I Austin was disco'nnected from' an intercon- -

                                                                           ~

, nection with. a system that tiotaled 33,000 megawatts of 3  ! gerierating- capability to an interconnection with a system s s that has only 8,500 megawatts of generating ca'pqbility.

                                      'The adverse effect of Aust'in's connection with this smaller
                                                                                                                                            ~

interconnection system was evidenced on November 22, 1976,

when a loss of.a. unit in CNntral Power & Light Company's r
  , ,                                 . system dropped the ireq>ency                             u            to 59.62-cycles. Another                                         ,

occasion was on January 10, 1977, when a loss of a unit .

    ^

in City Public Service Board of San Antonio's system dropped '

          .                             the frequ.ency to 59.59 cycles'. Any additional generation loss at either time would have' caused severe system disruption.

These frequency excursions'were much more

,                                      severe und'er the present interconnection than a similar
                                 ' loss of generation would have been under the pre-May 4, 1976, intierconnection.                                         <

t Q. What was the~effect on Austin's spinning reserve requirements? l l A. The disruption required Austin 'to carry additional spinning , G o

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                                          ' reserve in its generating schedule.                                                This additional spinning reserve increased maintenance cost and fuel expenses.            Austin's. spinning. reserve requirement increased from 75' megawatts to 100 megawatts due to dae disconnection on' May'4, 1976.                  This extra spinning reserve requirement caused Austin to ke'ep a 40 megawatt unit on a lin'e about 50% of the year.                    In order to keep this 40 megawatt unit
                                         - on the-line, a minimum load of 12 megawatts'has to be                                                                                  .
                                         - placed on this unit.. This means that this amount of energy.is generated at a heat rate of 12,650 . BTU per kilowatt hour on the 40, megawatt Seaholm unit.instead of' 10,188 that could generate this energy on the more efficient Decker unit.                             This increased cost of fuel cal-
         ,                                 culates to be' $255,260 per year.                                             The increased mainte-
                                                                                                     ; ~ :.        .

nance cost of this unit because of operating it at low load for prolonged periods of

                                                                              . . .y. ..- -        -
                                                                                                      -?;

ime is estimated to be

                                           $2d,000 per year. There is one other cost that happens
                                ~~

I mc- ~ because of operating the 40 megawatt unit. This is - degrada' tion of the heat rates on other units operating at ^

     ,                                     a lower load. T'his degradation is conservatively estima'ted at 30 BTU per kilowatt hour.                                     Based on the total number f

of kilowatt hours produced per year, this degradation of - heat rate calculates out to be $180,000 per year. . Adding i the three costs together'. calculates to be $455,260 per year as the cost for carrying the additional spinning reserve. 9- .

                      ,                  ,,. - _ . . _.. _,-.v.,..r....                              . . . . _ .        ,_-,_.,____.__.____.____._______L.__

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                                                                                                                                \

Q. , What is the. impact of the disruption on Au~stin's future

                           . planning and reliability?

A. Long range planning is impossible because of,the' uncertaihties which jeopardize any' commitments. Also, there are possible additional costs because of not being 'able to operate the'Fayette. Power Project and the South Texas Project at full capacity. The addition of larger generat'ing units to a small . system

         .                     (which has 8,500 megawatts) will cause additional system             .

reliability problems. The bifurcated', system ,will not . ' , sustain the loss of the.two units at the Fayette Power j Project. Loss of a plant is the. criteria that the TIS !_ used in planning interconnections. No credible studies could be run with the South Texas. Project because exis' ting lines were much too small and no information was available

                                                                                                                                                                               ~

on any additional planned transmission.

                                 '                    ~

Q.- What are. Austin's recommendations in t'his proceeding? A. a). Austin recommends that the Commission take whatever . action is necessary to require WTU to permanently ' severe its connection across the Oklahoma border. This would allow the complete and permanent I restoration of the ERCOT systems. 0 9

                                            .,_.,-.,y.,     ...,-...-.r,       p       . . - _         . , ~ _ _ , , _ _ - ,       _,e     , ,, _._,., _ - _ . ..y,                 - . - .

4 b) .- As an alternative, Austin recommends that the

                                        . Commission allow WTU to operate in interstate commerce as it desires. -But, to avoid the q
       +    .

adverse ~effect of such operations on the remaining systems the Commission should take whatever action is necessary to require WTU to sever connections from Central Power & Light Company, TESCO, and, Lower

                                   .          Colorado River Authority and the others.                         This would allow restoration of 95% of the-pre-May 4, 1976, ERCOT systems.        This would solve all the problems
associated with the South Texas Project, since Central Power & Light Company would be connected with the,three other participants. This would allow West Texas Utilities to remain. connected with
  • l its Northern Division -and' the Southwest Power Pool
                                                                             '~

which~it prefers. l c). As a second alternative, Austin requests the l Commission to take whatever action is necessary

              ~

to direct LCRA, San Antonio and Austin.to sever - ties with West Texas Utilities and Central' Power & Light Company and reconnect with Houston Lighting & , Power C5mpany and Texas Utilities. - 4 e y . 11 -

                                                           '                                                              \

9 #

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('. '(, d). Permanent relief should be granted as soon as possible in order that

                         ~
1) planning can be orderly and each system's
                                                 . expansion can be at minimum cost to the system's ratepayer;           .
2) present additional cost of operation can, be eliminated; s
3) the reliability of the interconnection l

ayaFama can be restored; and ,

4) no delay shall be experienced in implementing t

those financial and physical commitments which have been made. - b e 4 l - l' ' e O e 4 e f m '

( QUALIFICATIONS

          .                                 OF H. L. PETERSON Assistant. Director of Austin Electric Department since 1974.

Prior to that, Superintendent of Engineering Design from

 ,          1,971 to 1974.

Employed by the. City of Austin'in 1949. . Between 1943 Gna 1371, held various engineering and supervisory responsibilities. BS degree from the University of Texas in Electrical Engineering. Registered Professional Engineer. , 4 b b e S a e o a . e

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                                                        ;J.EXAS POWER & LIGH r COMInNV                                                       '

h 1511 Bryan Street - P.O. Box 6331. Dallas, Teus n,.. --.

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Austin Elcetg e Department [' g3M - P. O. Box .tuoo 3gb, M 3

                                                                              ~                          s.4 i                        Austin, TX                  78767                    -

j b c*Ap. j i

Dear Mr. Hancock:

g y d In accordance with our recent ssions , Texas Pev.-r 6 1.tr.h: f Company (TP&L) .is willing to supply you interruptibic, o f f-mi. - j ecenemy energy, .as available in an amount not to creced 153 4 megawatts per hour.- Such deliveries shall be made in a--- -- , with the provisions hereof. and delivered through cxisting pir.a of interconnection.  ; For; l energy" shall purposes of this Agreement be understood to represent "interruptible energy that i::off-pesiev:!. t eabwoey l e - for delivery to any generating electric utility member of TIS o=Ly

?                           during periods of time when lignite and minimum gas generett.ng cdpabilities are greater than the Texas Utilities Syste= lod and <

reserve requirements, and only after all suitable intra- r =:c= . sales have been accomplished. Furthermore, interruptible off-peak economy energy shall be supplied, as available, exclusively during TP&L's of f-peak hours au determined solely by TP&L. It is anticipated that pcah hours will. be from 10 AM through 10 PM of each Monday through Friday of' the months of June through September of each year. Deter =in..:icn of off-peak hours is, however, at the' sole discretion of T7.6*L bar.rd l upon then current operating conditions, fuel availabili:y. rc: crve requirements, and other relevant factors. i to in :gerup. i Interruptible, off-peak economy tion or curtailment, with or without notice, when, energy is subject 3.n the .e in-opinion of TP&L, such' action becomes necessary to maint.ain y, tegrity of the Texas Utilities System network. . 9

w.s. g _ ,' h $ $ n.. -f.h5Ecf' _2. ccric '- tpartment ( -

       #                        Furcher, botih parties realize that dellvertes of energy here-
                        'under may from time to time be suspended, curtailed, or interrupte if generating facilities and/or transmission lines used to deliver
 }

g such energy are required pursuant to prior commitments to Texas Interconnected System and/or Electric Reliability Council of Texas

 ?

Interruptible, off-peak economy energy as available will be offered in sequence to TIS members heretofore or ' hereinafter accep ing agreements substantially similar to this, with priority genera ly to be determined by date of TP&L's receipt of fully negotiated agreements. The amount of energy sold to any purchascr shall be dependent upon the quantity available, upon purchascr's ability an villing.c. ,s ta ralve said energy at that. crea, and upon quantiti of energy sold to purchacer: with higher priority. Any deliveries and offers to deliver energy made in accordance with cuch sequence are understood to be of a duration not to exceed 24 hours, such 24

     ,                 hour period to run from 7 AM to 7 AIL Deviations from sequence ma be made from time to time because of operating conditions; or to facilitate of energy.

the administration of these agreements or the dispatchi During those occasions when interruptible, off-peak ecobiomy energy is being delivered- to purchaser (s), and any reduction in 'th quantities of delivered energy or any interruptions of such energy are deemed necessary by TP&L, acting in its sole discretion, then such reductions or interruptions will be generally apportioned to purchasers in reverse of the sequence as described above. Billing for interruptible off-peak economy energy will be at net monthly rate of six (6) mills per Kuh*plus an adjustment 'per E t

                     .of energy taken for fuel . costs. calculated in .accordance with TP&L .

Schedule F.CF, ,or any subsequent fuel cost schedule as, in effect fg time to time. The net monthly rate of six (6) mills per Ruh shall increased by one-half (1/2) of the amount by which the adjustment fuel (10) costs mills calculated per Kuh. in accordance with Schedule FCF is less than Bills will be rendexed monthly and are due uh rendered. Bills become past due if not paid wi' thin fifteen (15) @ Interruptible off-peak economy service may be discontinued for non ment of a past due bill. - l TP&L may arrange for the aforesaid interruptible off-peak oc@ energy or portion thereof to be supplied from time to time by Dall Power & Light Company (DP&L) and/or Texas Electric Service Company (TESCo). Encrgy so supplica shall be deemed in compliance with th obligations of TP&L horcunder and you will be billed by and will p TP&L only. It will be the sole responsibility of TP&L to pay sums , due such other suppliers upon receipt from you. In such event tha l interruptible off-peak cconomy energy provided for hercin chould b supplied,. all or' in part by DP&L and/or TESCo, then the conditions and limitations concerning such deliveries as set forth herein sha also apply to cuch deliveries. 4

?K'

 ..                                 gH:ncock(

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3. usen Electric D:partment . . , . ,,

g 4page 3]u ' 1 nyg;.r.U . '. - l

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This Agreement shall not apply to interchange energy furnished to you under terms of any other existing or future agreements or to transactions covered by TIS Operating Guide. . Appropriate adjustments will be made to . eliminate such excluded transactions in computing sums dua hereunder. This Agreement shall become effective January 1,1978, and shall con-tinue in effect until December 31, 1979.

                                                                                                                                              ~
            .                    All' el'ectric energy delikered under this Agreement and any agreements supplemental hereto.shall be generated, transported and consumed wholly with-in the State of Texas, and each party agrees that it will not connect its facilities.or permit its Taci11 tics to be connected through other parties.-                                                              .

during the term of this Agreement to any other generating, transmission and/ or distributiun incilities having interstate connections. In the event either party violates or is about to violate this provision, such violating party . shall be immediately in default and scheduled delivery of power and energy hereunder shall be discontinued until such default shall have been cured to the satisfaction of the other party. , This Agrdement and the charges herein set forth are subject t$ approval of the Public Utility Commission of Texas and/or any other regulatory auth'or-ity having jurisdiction, and the rates and charges herein set forth are sub-ject to change or termination pursuant to the order of any such regulatory auphority. .. . Furthermore, this Agreement shall not become effective until the Public Utility Commission of Texas, or the appropriate regulatory body, has ruled that all. sums paid by the Purchaser for electric energy delivered hereunder

                  -including 3rd party transmission charges may. be fully . included in the calcu-lation of the Fuel Adjustment or Fuel Cost Factor of the Purchaser -

Very truly yours, q .e o

                                                                                                                                    \

Accepted and agreed to this

                      # .. day of M & M M                                    , 19 6 i

By AA h &/ l - l . . . \ .

c ., pl , d 5 e TEXAS POWER & LIGHT COMPANY ' 1511- Bryan Street P.O. Box 6331 Dallas, Texas 75222 R. M. CAMPBELL .

         " " ~             '

March 20, 1978 , Mr. R. L. Hancock Austin Electric Department . P. O. Box 1088 . . Austin, TX 78767

Dear Mr. Mancock:

In accordance with our recent discussions Texas Power & Light Company (TP&L)' is willing to supply and City of Austin from time' to time is willing to purchase Ready Economy Energy, .as available, in accordance with the provisions hereof and delivered to existing points of interconnection. < , , For purposes of this Agreement, Ready Economy Energy is under-stood to represent ~ firm electric energy that TP&L may make available to you on a 24 hour per day basis for periods set.forth below, as you request, subject to the terms and conditions as contained herein. Ready Economy Energy is available for periods as described , below: A. , Daily Ready Economy Energy Period (24 hours) will be arranged between System Operators of both parties at least 24 hours prior to initial delivery hour.' At that time, agreement will be made, for

              .each Daily Energy Period, as 'to the maximum hourly rate of delivery expressed in' megawatts (IE), 'a minimum hourly rate of delivery (W?)
          . equal to not less than 25% of maximum hourly. rate, and energy (m'H) scheduled for delivery which will result in not less than a minimum 80% load factor for the specific 24 hour period.                        ,

B. Weekly Ready Economy Energy Period (7 days) shall be airranged by System Operators at least 72 hours prior to initial delivery hour.- At that time, agreement will be made, for each Weekly Energy Period, as to a maximum hourly rate of delivery (FM), a minimum hourly rate (FM) equal to not less than 25% of the maximum rate, and energy - (bEH). scheduled for delivery that will. result in not less than a minimum of 65% load factor,over the 7 day peziod., . C. Monthly Ready Economy Energy Period (30 days) shall be arranged

              ,betucen System Operators at least 7 days prior to initial delivery hour. At that time, agreement will be made as to the maximum hourly rate of delivery (IG), a minimum hourly rate (1G1) equal to not less 6   .                             .
                                              -                                                            a         m   -  im-

(' . ,

                                                                                                           - i    .

P.- Mr. R. L. Hancock FIarch 20, 1978-

                                                                                                                            \
   #                                                                                                                        1 than .257. of the maximum rate, and energy (MWH) scheduled for delivery and/or load      delivered factor   for thethat 30, will dayresult period.in not less than a minimum of 607.                            I
                         ' In addition to the above, it is understood by both parties to

{ this Agreement that the following stipulations shall also apply to the sale and delivery of Ready Economy Energy ,as' provided for herein: y . ' For each Ready Economy Energy Period which you arrange to pur-chase, the maximum rate (MW) at which such energy is to be delivered j shall befor determined colely by your System requirements as requested

                                                                                             ~

by you each period ~ and as accepted by TP&L.' TP&L reserves the' right to refuse any req,uest, in whole or in part, to supply Ready Economy Energy if, in its sole judgment, such supply of energy is not available, if supply of such energy may adversely affect the quality j of service t.o the customers of the.TU System, or if supply of such 4 energy may adversely affect the TU System emergency transfer capabilitg . II .- Billing for Ready Economy Energy shall be in accordance with the - l eppropriate rate as contained in the Schedule of Pricing, attached i hereto as Exhibit A and made a part hereof. For each month during the term hereof after April,1978, TP&L will notify you on or about ' the 15th day of the preceding month of the applicable rate to be - inserted in Exhibit A for sales and i In no event will the billing for an purchases during each y Ready Economy Energy such period month. be

               ' less than an amount computed by applying such appropriate rate to the

' Minimum quantity of ' energy for each Ready Economy Energy . period as provided for herein and as calculated by applying the formula for Minimum Energy contained in Exhibit A. Bills so calculated shall be rendered monthly and are past. due if not paid within 15 days. Ready. Economy Energy service may be discontinued for n'o n-payment 'of past-l due bill.s. III . - - l During periods 'of delivery of Ready Economy Energy, TP&L will use its best efforts to supply such energy as set forth above, but does not guarantee service against irregularities, interruptions, or failure to, supply service because of shortages, or allocation or

                . curtailment of fuel, governmental action,.or other cause(s) re,ason-

, ably beyond the control of TP&L. Furthermore, Ready Economy Energy i is subject to interruption or curtailment by TP&L, with or without { notice when, in its sole opinion, such action becomes necessary to l l prevent comers of loss the or possible Texas loss.of Utilities service to regular firm power cus-System. , . s

                                                            -                                                        '                                                       ~

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                                                                                                   .      ACEEMEHT                        Appw pix G C                   1                    1:IIC /CIEE;;I!!T, mada and entered into this g day of Og     .                           {

gg I ,19ff, by and between the CITY Ci' ALISTIN. Travis 6 . g #y Texas, hereinaf ter referred to as " Austin", and liOUSTon LIGllTIm; a l j P0"Iit C0:72Y, a Texas corporation, hereinaf ter referred to,os " Houston". l W I T H E 5 5 E T II: llHQEA3, Austin owns and operates an electric utility systen including generation, transmission and distribution facilities, in the State cf Texas, and desires to sell electrte power to Houston, , iiHEREAS, Houston owns and operates an electric utility system

                                        .                            including generation, transmission and distribution facilities in the State of Tg.tas, and desires to pur' chase electric power frosi Austin, N05l, THEREFORE, in c'onsideration of the premises and mutual covenants and agreements hereinaf ter set forth, the parties hereto mutu-ally contract and agree as follows:

ARTICLE I. . ELECTRIC POWER l 1.1 Austin will.have SCIO megawatts (HW) generating ca9acity avail-able for sale to Houston from .lanuary 1,1980, thhugh and including Decc ber 31, 1981 and agrees to sell such capacity to Houston en the folle. sing terms, and subject.to the conditions set forth in ,}his. agree-

                                             .                       mant:                       .

(a) Capacity Charge - Houston shall pay Austin an Annual capacity Charge,of $8,000,000.00 (500,000 kw x $16) to be paid in installments of $666,667.00 per month (hereinafter "P.onthly Capa-city Charge") for each month during 1980 and 1981; .provided', however, if in any month Austin falls to make available 500 m of

                                                                          . capacity then the Hcnthly Capacity Charge for that month shall be adjusted to reficct the amount of capacity actually made availab10
            -                                                                to Houston. The $G66,667 per month Capacity Charge is based on the availability, in a 30-day month, of 500 W during each of 720 hours.

During any hour that any part or all of the 500 m is not availabio the flonthly Capacity Charga will be adjusted by subtracting $1.35 for car.h f*J not availabic during such hour. - s

                                 *(       .

( * (b) E::crgy Charge - llou2 ton is entit ed to purchata erdEgf up in the assic::: hourly .woemt cyable of being generated b- the Sf;0 ft! of c.yacity. For all such energy purcha:ed flou: ton ullt x:y, in .rMition to the Monthly capacity Charge, a Ikmthly Energy C: crge for energy actually dellwred to Housten. The l'.onthly Energy Cn: ge will' permit Au. tin to recover 1) the in:rceental fuel costs ine:. red by Austin 1,n ger,erating the energy delivered to Houston each ec:=th;

11) the operation and maint' enance expenses incurred by Austf.v. in .

generating the energy delivered to Houston each month, whic.': ex- , penses will be billed on the basis of an estimated levelized non=hly, charge and will be adjusted at the end of each year to reflec= the

                                                     ~

actus1 operation and maintenance expen:cs for the year; and tii! Ce costs related to transmission losses on the Austin system resut-fag frco such deliveries to Houston each month, which cost wili be . determined by load flow studies under procedures to be estahl!=hed by the parties hereto. The fuel furnished by Austin, in the av.ent that the City sells others economy energy, shall be billed at the, first incremental fuel cost for fuel burned after Austin's intar nal requirements are met. Austin will have complete' discretion cz to 1 the fuel mix that will be used to generst's energy delivered, to i Houston and it is anticipated th'at the fuel six will vary depa..d'ing' i on such facters as the tica of day the energy is transferred and ne ' nuder of units available at the time of transfer. 1.2 Houston shall, carry its spinning reserve assignments under se

                                   ~

Texas Interconnected Systems (TIS) operating agreements on its.own geme.

      .                                rators.

ARTICf.E II. FUEL SUPPLY . l 2.1 The delivery of energy to Houston is subject to fuel li*ta-tions that may be imposed upon Austin or its fuel suppliers by reJula.cory - action, statutory changes', or .the invocation of present provltionsr in Austin's coal, oil and gas contracts for boiler fut). 2.2 To help ensure that fuel will be availabic, Houstm sNgtj provido estimates of the energy it expects to purchase by mutilh fs. a l

  • I l
                                                                            ~2=
                                                                                                                                 ]
                                                           -                   I
       ,       .; , Mr. R. L. Hancock March 20, 1978 IV                -

curtailed, or interrupted if generation andDeliveries of e'ne et used to produce and/or deliver such energy a/or transmission facilities re required pursuant to prior commitments to Texas Interconnected System and/or Electri Reliability Council of. Texas members, including,.without limitati the general commitments to provide energy during emergencieson, . tion thereof to be supplied from time to time by D - Company (DP&L) and/or Texas Electric Service Company (TESCOght . Energy hereunder be the sole responsibi and you will be.. billed by and will . pay It will upon receipt from you.lity of TP&L to pay sums due such other suppliers vided for herein should be In the event that supplied all orReady 'in part Economy by DP Energy pro-TESCO, then the conditions and limitations concerning su&L and/or as set forth herein~shall also apply to such deliveries. ch deliveries

  '~
                                                                   ,yr            .                                                  -

to you under terms of any existing or future agreemen

                                                                                                           , to trans-to energy supplied under any other agreements. actions                                                                , nor              c will   be made hereunder.          .        to eliminate such excluded transactions in comp VII f

This Agreement shall become af fully negotiated Agreement from you.fective upon TP&L's' receipt of. thereafter until December 31, 1978. and shall continue in effect

                               ~          '
                                                      ,      ' VIII.                       -

cgreements supplemental hereto shall be generatedAll e transported and consumed wholly within the State of Texas, and eac,h party agrees that.it will not connect'its facilities, or permit its facilities b2 connected to any other generation through other parties, during the term of thisto Agree ent having interstate connec,tions. transmission and/or distribution facilities In the event either party violates or is about to violate this provision, such violating party shall be , immediately in default and scheduled delivery of power and ene hareunder cured to the satisfaction shall beofdiscontinued the other party. until such default sha

                                                                 '                  6

(0 - ( O . .

                                                                                                                                                                                                                                                                                          . .               l Mr. R. L. H ncock                                                                                                         .k                                                                                                                *-
  • March 20, 1978 I

IX - j ,

  /                                             Purchaser will' make all necessary arrangements. for us'e of
 /
          -                        hereunder and will pay any charges for such use. transmis                                                                                                                                                                                           p e this paragraph, DP&L and TESCO shall not be deeme. For purposes of                                                                                                                                                                                                   -
                                                                    .-                                                                                                                                                                  d third parties.
                                                                                                                                                          .. X approval of the Public Utility Co:mnission of Texas                                                                                                                                                                                                                   ..

res;ulatory authority having jurisdiction, and the rates and. charg herein set forth including any third party transmission charges are

                     ' regulatory  subject to authority..    . change or termination pursuant to the order of any such 1          .                                                                                                                                                                Yours,very truly,
                                                                                                                                                                                          .f e                                          + ; ".                       J Accepted and agreed to this                                                                                                                              -

_/.1 ' day of ///a , 1978 ~ '

                                                                / f                                                                             '

gg _g, . . 4 . l . t I j 8 6 1 .

                               ,        s      -
     . ., ,         .> o^                                  ,
                       ...-                                  (7                                 (3           .

it is..: greed that if cither party fails to perforts any of its obligst. Tons hereunJe:r, including the petept psy.:ent of conthly hills ur tielivery of electric'ponne, the injured party pJy suspend DJy.:Mit of bills or dQIivery of energy hereunder, and said party will not be 11a'.;1e in any cran::ce for loss ur d.rnage arising from such non-p.) pant or sus;rension, pi ovided, the injured party,shq11 specifically notify the other party of such fatiure in _ t writing at least ten (10) days prior to such suspension or non-pagant. '.

                                          !!o such suspension or non-payzant will interfere with the enforec: ant by either party of any other legal right or remedy. I:a delay by either party              .

in enforcing any of its rights hereunder, and no waiver of any .rfght to enforce any breach hereof, util be d'c emed a daiver of such rightsi nor will'any watver by either party of any delay by the other party be deemed a waiver of any other or subsequent default, all rights and options harein provided to the benefit of either party being continuing to the end that the failure to exercise any such right or option shall not be construed as waiving the right or option upon any subsequent delay or breach whether of like or different character. ARTICLE VII. .

                                                      .                 IrlTRASTATE OPERATIO:t   . -

7.1 All electric energy delivered under this agreemant shall be generated, transported and' consumed wholly within the State of Texas. Each party agrees thali it'will not connect its facilitics or pemit its

  • facilities to b'e connected through other parties during the term of this

_. _ agree ant to any other generation, transmission and/or distribution - facilitics having interstate connections, except in the event of an

                                                                                                                           ~

e:ergency under Sectio.1202 of the Federal Power Act er unless done ender _, order or approval of a Federal or State court or agency having furts-diction to order or approve such interconnection. In the event either '

  • party violates or is about to v'iolate this provision, the other party may discontinue sy*ia.hronous interconnectien with the defaulting party and l thereby suspend the provisfuns of Article I of this agrecment until such default shall have beca1 cured to the satisfaction of the non-defaulting i .

party. , I . e s e 4 8 .

                                                                                                                                           ~
                              ..  * ,,.*  ks            ..                               .                  (.      ,

1RTICt.E Vil!. V . RCC1:.isTORY APFR0' tat.

                                                                   'O.1 The ter.ns of this centract and the charges tiercin set forth are subjeet to the approval of any regulatory authority! !aving jurisdiction
                                                                          ~

over the parties hereto, and the rates and charges herein set forth are subject to change or termination pursuant to the order of such regulatory authority. . - - ARTICli IX. -

                                                                                                                                                                                             ..w TDtM                                                       -
                                                                                                                                                                                            .~:

This agreement shall become effective upon execution and shall continue. .'in effect untti December 31,1931. .

                                                                                                                                                                             . . m.....s..

ARTICLE 2. . SUCCESSORS #10 ASSIST;S - This contract will inure to and be binding upon the successors and assigns of the respective parties. f.;g .:.-Q:

                                                                                                                                                                            ?magfly lif WITNESS WHEREOF, the parties hereto have caused this, ..p,...6 contract to be executed by their' duly autherized officers the day and year'

_ ' first aboya written.

  • C IF AUSTIFI . .
                                                                                                             'By     A..                      . .
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HOUST3R LICHTI?."a* I R CCHptJ Y Ti' . gy _ _ ___t i Fresident * . ATTEST: I e- . . w ---- el%tte l bR

                                             ._r ,d' ,y, Y

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                                              .:   C.                - r.                        C           e~                        .
                                          ,              twelve month period. This estimate shall be matte available to Austin by
                                                        !!ovother 15,'1979, for the 12 r.onth period beginning January 1,1980, and
                      ,                                 by tievember 15, 1900 for the 12 month period beginning January 1,1981..

2.3 Daily scheduled requests for capacity and energy will be made at least twer.ty-four (24) hours in advance and will be ;cheduled for a minimuaperiodoften(10) hours. 2.4 Houston may arrange for delivery of natural gas fuel to Austin to be used by Austin in generating th,e. energy delivered by Austin to - , ' Houston under this contract. In the event Houston does make such natural . gas fuel available to Austin, by contract release or otherwise, Houston shall be responsible for arranging the delivery of such fuel to Austin, 7 and Houston will beara 'll cast for the d=11'ayaf v said"f'uek kt such times as natural gas fuel is made available to Austin, Houston will arrange for the delivery of said fuel to power plants designated by' l Austin. ~

                                                             .                             ARTICLE III.                                  -

TRANSMIS$10N LINE CAPA81LITY STUDIES AND 1AfEELING POWER

                                                                                                                                              ~

3.1 Houston shall sake all the stadigs. required to verify that - there is adequate transmission line capability githin TIS to' transport the

                                                                                                                          ~

i energy it expects to purchase fran Austin during the tera of this agreement. In the course of making such studies Houston wf11' determine

                  . ,                                  whether, and to what extent, transmission services are required from third party electric utilities .in order for Austin to deliver energy to Houston l                                                      under this agreement. For purposes of all deliveries of energy under this
              ,                                        agreement, Austin will have the right to rely on Houston transmission line ,

capability studies and any written or oral representation made by Houston l -

                                                      .concerning the studies and the capabilities of third party transmission'
                                                                                         ~                                           ~

lines. O 3.2 This agreement shall become null and ' void if a) Houston' , determines from the studies contemplated in Paragraph 3.1 that there is

                                                 ~

insufficient transmission line capability in the TIS facilities to accommo'date the energy transfers expected to occur under the terms of this i l i .

             ,                                                            e e

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                                                            .;..              s.     .

( , l agreement and/ur b) llouston is unabic to negotiate satisfactory arrange- , mentr, for the transmission services by third parties contceplated by Paragraph 3.1. . ARTICLE !Y. Cont 1t:UITY OF SEitVICE 4.1 Each party will exercise reasonable diligence and care to

                                                                          .          avoid interruptions of delivery of power and energy hereunder, but will not be liable for any damage or loss that may be occasioned by.any fail                                                                           -
                                                                                                                                                                                               ~G 3.Q or interruption caused by fires, floods                        ' s,. ce        Ing stor,ms           s; ~ ..orMther                        a#y, '

e.- , -  ;,.g.a=.5 of God, or by strikes, riots, tati _ _ in6){cag:. authority, litigation, breakdown 6 , 'o'tkhL 1 [ akke f,

     .                                                                               ::r.tr:1. f. : tin ::y tr.tarrupt ::-tie: tY cri.O                                      a 4N    ~           $oN m -f m- M make changes in equipment or to insta11'neft'equijinish , tiii                                                                                           .,
                                                                  .                  time as may be unavoidable.                                                                                               irtarrip 4~

ReasonableV:advance n: notice of *~ M*'- su{f

  • tion will be given if the nature of the situation greitstw -
                                                                                           .                                                          . .? W
                                                                                                                                                                                       ~V                              -     ??C
     -                                                                                                                                             d.i5     .n......2 .x., , - - ~ . .       N                  -

5$~?.-5.,.

                                                                                                                                                                                                                                  .a_
                                                                        '                                                 BILLIfiG AND        ~5$:.tf,'l-Q%E-&:

PADENTO cvrev=F-Q~.W tin: y~ ~ A 5.1 Beginning February 10, 1980,' and, continuing y.on the.% day.g ~ .

       .                                                                             of each calendar month thereafter Austin shal1Nder a statement for the s       -

energy delivered to Houston during the preceding month; provided however, . c . .: . ; ~ - - r?;,: .. Austin may defer said billing for a reaso,nabTe, peri.ac ;** ,' ry.t y,_f. _ < -

                                                                                                                                                                        +-e,                  .          c,                  ?1 in order to obtain the necessary information to coepute                                                       TVnth}y,h,.:; :g:.                  --

2- *

               ' ~ ~ '

Charge. Austin shall consider the amount due and payable withis fifteen

                                                                                     '(15) days from the date of the statement.

5.2 Each party shall have the right at reasonable hours to examine

             &                                                                       the books', records and charts of the other party to the extent necessary                                                                             .

to verify the accuracy of any statement, payment calculation or deter-t

                                  -                                                  mination made pursuant to the provisions of any article hereof.. If any l

! su-h examination shall reveal, or if either party shall discover, any - l error in its cwn or the other party's statements, payment calculation or determinations, then proper adjustment and correction thereof shall be t made as promptly as practicable thereafter. ! . ARTICLE VI. l

                                                                   .                                                        REMEDIES FOR GREACH 6.1 In addition to, and not excluding any remedy herein provislal.
                                                                                                                                                                                                                                           . O

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               .-- , . - - , . . - - . -. , , , , . - - -                                         .,,-n-    . n,     . , - - ,  ,,...,,.n             ,r.,.-,---n          .-       n..,,,,..-w            -..n-..a-              - - - - ~
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                                                                                            - m stear mersze SERVICE.
                                                                         ~

A g &Dl1-N STATE OF TEXAS q 1 . CC'J;Tr 07 TRAVIS D This agreement -- ,- 4 into the day,of c /y 19 (p between the University of Texas at Austia (hernia called the " University") and the . City of Austia (herein .es11ad the " City"). , i vmmm, , i ' RAT, IIEEEEAS, the thiiversity desires to provide fixa standby espacity for its sis tric at sratina slaat(s) aan to inarchase suenlaamatal electric powe'r and enerb

 ;                                             d                                                                                                                         .

W5EREAS the City has or eaa aske available standby capacity and esa furnish *

;                                              suppla=antal electric power and energy, i

icir TIERUGtt commencing open the date the University first takes ehetrie .

       ~

I service barounder or Sentenber 1. IMO whichever date is earlier sad continuing ' j for a period of ten (10) years frun such eemasaceasst the City agrees to furnish

     .                                         and the tkniversity agrees to take sat pay for standby and stgglemmatal electrie                                                                               ,

i service for a Contrast Cagnaity (as defined la Article III hereof) of g kilo.  ! volt.a= peres in kscordance with the teras', conditions, and agreements hereinafter 1 set forth. The thniversity may,inerosse the Centrast capacity tgen writtaa meties ,

                                                                                 ~

f, to the City not less thaa twelve (12) months prior to the effective date of the *

,                                              increase.in Centreet Capacity if the oest to the City of asking the thanges la or i                         . -     ..

additions to the City's equipsest aseessary to meet such increase saa be recoveres

                                             .within the time for which such Saaresse is roguested either under the City's standard l

schedules of amortisation or met salvage value or both, aan if the increase oma be , ande without material * . *= "..of the City's espability to meet the requirements . t

                                                                               ~                                                        '

of its other users of electrical sorties. - l m

                                                    , Subject to the terms and senditions herein stated the ' City will, until $rmia.

ation of this agreement (unless prevented by one or more of the causes set forth l l in Article X hereof) furnish standay and suy=1- $at_electriaservicetothe University. The point hereinafter called "Potat of Delivery" will be the lov

                                                                ..                                                                                                                                                         L 3
                                                                <                                        -     1-                                                                      8 14 49
                                                                                                                                                                                                  .        -)

( ~ - - , . - - - - , . . ,------,.n-,._n

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                                                                     .                                                                                                                                         *e    . * -.
                                                                   =

voltage termissla of City avoed transformer loested in the vicinity of 26th and Sea Electric power and energy furnished pursuant to this agreensat , Jacinto Streets. will be of the character commaealy InuEn as three (3) phase, sixty (60) cycle, four The voltage and  ; (4) wire, twelve thousand (12,000) volts alternating current. W willie subject to the variations which occur on the City's electrie . systen. , under aan s4jeet to the terms and eseditions of this aeroenent the University ' any take electria energy at'any rate of supply which, la its sais discreties, it any desire, yy to hua not greather thms the "Centreet Cagasity" as defined la [

'                                             Article III hereof.                                                                                                    .

The tar.1versity shall make payment to the City for the standby and supplemental . . electric setvice and the energy 4.aht to the use of such service in accordanes i with the tares, senditions/ and consideraties of Article III hereof. The gunatity l . 1 i of energy syyptied by the City to the thiversity and the rete of supply thereof  !

     ,                                                                                                                                                                                                                                          i shallbe amassmed at the ' Point of Delivery by meters fussished ama installed by 4                                                                                       '                                                                                                        .

the City for sush psryones as ,../'M in Article VIII hereof. All!!CIE II , I~ The thaiversity shall, at its swa expense, provide easements for the City's . I fas111 ties shink are assessary to perform the oh' ligations of this agreement. f

  • Specifically taeluded but ast limited therste are pole liase, duct lines, saa a suitehle s6 statism site dish will be 'eM (at City's m.p.ame) by s' l '

} r- seenrity femme. Assess to that portion of the substaties site inside

  • the soeurity l

! fesee will be sentrolled by the City. All easements shall provide for free accese [ at any time, by Electris Departenest personnel at the City to the City's facilities " .I installed en sash enesments. Open termiasties of this agreement the City will

  • 1
'                                                within 12 masths of said termination reseve (or at City's sytian abaades) its prayerty fram and veeste said easements.

4 '

  • ARE III .

} t FN enek billing period the thiversity shall, en or before the teeth day f _ , following the date of billing, aske paymast to the City for the electric service i furnished is aseerdanee with this agroceest. For each billing period the afore. I mestiesed payment shall be the se of the " Standby Capacity Charge" plus the e l .

                                                                                                                                            ....                                              s.a e h

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                    , , , ,, ,.                 .--.-----,----n..               , - - - - . ,e ,---e    -    ,__.,,,,n,~.--m-,,,---,,.-,,,..n                      ,.,.nn..,.,.,,m.            ,-.,n     -ne--            - ~ - . . - . , - -,,
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                                                                      ,.                  .       .                                                                                                  i
                                                    *mmerar chares" or she *Mistanas 3111". whiebevor is the greater and each as                                            ,

determined and defined in this article.

  • Co.T:'? TACT CAPACI2T As used herein " Contract Capacity" means the -4= rate of supply, expressed la kilovolt experes, at which the City is obligated by this agreemast to furnish electric service to the University.
                 .                         n .g           .....:

Es used herein the term am114ag Period" shall mean the elapsed time tetween two consecutive sets of meter readir.g: zada for tilling pur. poses. Each 31111ag Period shall be approximately cae month (10 days) and there shall be twelve (12) Billing Periods each calendar year. Meter readings for billing purposee will act be ande on a Saturday, Sunday, or a City Boliday. INDUf 3II1230 tipfAID: . In each Billing Period the greatest average 30 minute demand shall be

      -                                            determined by aseae 'of meters furnished and imetailed by W City f r eueh purpose. yor enek Billing Period the Energy Billing Demnad shall                                                       . .

be the greater of the grestest average 30 minute damned established La the earrant or imediately preceding eleven (11) Bilitag Periods. Energy Billing Damned shall be determined and expressed la kilovolt. emperse. yigtitcT c5 p c 3: . > The'aet sharge for emergy deliM to N University in each Billing period shall be as follows: .

                                                                        $0.05        per m for the first                     50 EWE. -

0.033' per EWE for the next $50,KWE , 0.036 per RWE for W sent 2400 XWE* 0.012 per EWE for the next $000 KWE* 0.006 .Per XNE for W next 1,2$0,000 KWE'

                                                                          .00275 per XWE for all additiceal 4
                                                                                                    .           .                                       8 D                                                                                                                   s I

l 3- 8 1k.69 e . .

( f c'=n.$. Y*.'.fs'k & ,Tl.S $ - .

                                                                                                                  *(
                             . .      e           *
                                                                                                                  ,N                                          . e.         .
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 .                                                                                                                                                                                   t';
  • Add 100 EWE for each KVA of Energy Billing Demand tras al g* 100 m
                                               .isc1ssive,' add 70 KWE for each KVA of Billing Dessad from lof.500 E. '

clusive and $O KWI for each KVA of Energy Billing Demand over 500 KVA. The minimus energy charge la any Billing Period shall be not less thaa

                                                $150 per EVA of Energy Miltag Demand.
  • yue$ Cost Adju'atment: The above energy sharges shall be increased or doeressed by .00byl/ledE fue ek whole one guarter of a esat by which e . . . . .',

the delivered east of fuel diaring h next precedias month,esseeds 18 . easte or is less than 16 c'este pr aillion EEU. . m mwr none m - Standby capacity is hereby defined as the muserical (not vecto$-) dit. - forence between h Contract Capacity and the Energy Billing Dennad eseh empressed is kilovolt.esperes (EFA). , ,

                                 .       FrANpIf CAPAC}TT CW:                                                       ,

Baek m11 tag period there shall be a charge of $1.00 for each KTA of

  • standby Capetty.

N:lIrDCJN BZZZ,3 yor the elastrie service furnished eaak 31111ag Period h paymmet by , the thaiversity to h City for such electria service shall be as amount

                                                                                          . e set less ha the ameust of a Standby Capneity charge based en the Castreet Capacity.                            .
                                                                                                . AFFICTA XY Standby Capacity as previously defined any be used by the University without notice to the City la event of an emergemey shortage of power in the University's electrie ayetes due to breakdown or an1fumaties of their electric equipment while                                                      ,
                     ,                   is operation or to other eauses beyond reaseashle sentrol of W University. If
                                        'by reason of such sa energency shortage of power the University should use stand.

1 - 1 by Capacity and thereby establish a densed greater them any Energy Billing temaad for ht Billing Period, them the City upon receipt of evidense satisfactory to the City that Wre was as esorgency use of power as defined above ha the emeese i deemed created by such emergency for a period of twenty.feur (2k) hours shall act be Lacluded La the Energy Billias Dessad. If h emergency persists for more than twenty-four (24) eensecutive hours ha for each 24 hours or fracties thereof e

                                                                                                      .          4.                                 a.14 49 O                                                                                                                                     .

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c. .

( . o 'o6 6 .- of the emergemey aNor m first 14 hours thereer ww shall h addet,ga m

  • Energy Charge (for each Billing period during the emergency) six and six-tenths cents ($0.066), for each 24 hour period after the first 24 hours for each KVA of the maximum XVA deanad recorded during the emerge cy which is in excess of the Energy 31111ag Draand which was applicable before the energency. )

AMICIZ V Service voltage at the point of Delivery will na="y be 12,000 volts. .. . Bewever, it is agreed that such voltage will be subject to the usual varisticas .

                                      *aozzal for an electrie utility system and to the tenusual variations resulting from faults, malfumation of equibeest or other causes beyond reasonable control by the City.                                                                                              .       ;
                                             ..-                                     AMICII VT   ,

Inassuah as the University will be operating its electric system and equip-neat la parallel with the City's electric systes it is expressly understood and agreed that the University will operate and asiatain their electric system sad equipsest in such a maanar as to malatain at all times a power factor of not less thaa ainety percent (90%) at the point of"Lelivery.

                                                   'o further implomaat the power factor requiressat the City agrees to utilise'                 .

traaeformers with tap shangers baving a 10% boost or back range and operable mader load and to allow the tanivoretty to control said tap chaagers provided the 90% power factor is maintained. During'the pehods think the University because of *

                                    ,, as emergener abortage of power usee standby capacity to take energy, the 90% power factor reguiremost shall not apply.
  • ARTICt2 VII Isaaanah as it is aseessary for the protesties to life, limb and property .

the City will imetall eertais protective devices. It is therefore espressly agreed that the City any interrupt sesvice under the agreement if the University should attesyt to take emergy at a rate greater than the Contract Capseity, or by operation of the City's protective devices, and that no liability shak1 accrue to the City by reason of such interruption. 8 14 69

                                                              *                                                     *c ~ ' = *
                                                           . .c .               ..+...-                  .
                         * *. . *,      ..       .                                                                                   *r. <o ; to AltTICLE VITT The quantity of electric ' energy and the rate of supply ther' eof shall no determined by meters furnishe'd and installed by the City for such purposes.                            -

I These meters will be installed at a location autually agreeable to the City and the University at a leenties adjesent to the point of Delivery.

  • 4 The rate of supply of electrie energy to the University shall be determined. .

by saite21e reeersing watt meter (s) and var meter (s). The reading (s) of said poters . shall be saaelusive as to the rate et supply of electric energy unless upon beias tested such untere shall be feums to register inaccurately see the error determined to be greater than four (4) peroest. The aneust of electrie emergr supplied to the University shall be determined by means of er.itable integrating hilevatt-heur meters furnished sad installed by I the City; such asters shall be reed each Billing period and ' the readings thereof

,                            e i                                      shall be deemed esselusive evidence of the tasatity of electria energy supplied I                                       to the University, unless upon being tested said meters shall be found to register' inassusstely and the error deternamed to be greater than two (2) perseet.'

j' Either party any, ges two (1) days metice to the other, Saspect and test' l such noters in the presease of a representative of the other party, ame ubenever i susk test shall shev any aster to be registering in errer beyens the limits spesi. fist as to ensk in this article, seek aster shall be adjusted to register withia j the limite of error ao specified, amt uhenever sa.id asters are se adjusted, the reediass thereof shall h earrested, sad payments ande assertingly. No such

                 '                      certeeties shall be ande, however, as to any bill readered by the City, unless I'
                                     .Toguested by either party before the espiraties of the Billing Period sent sue.                      ,'

eeeding the Billing period La which such res41 ass for tilling purposes were ande. k aft 1C13 ZK j The Ostversity shall install and natatata its electrieal equipment ta a thoroughly safe and efficient amaner at all times. The duly authertsed rep. } j resentative of the City for the purpose, of Laspecting viring and apparatus, I , removing er replacing City's property, reading meters, sad other purpetes taaldent to the perferunase of this agreement shall have free secess to such University premises as are necessary for these purpates. 0

                                                                                                 .s.,                      s.16 4, 9

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                                 .                                             The City does not asses the duty of inspect!sg h Universtty's viring, nachinen or apparatus, and shall not be respoentle therefor. , The University' will properly' protect the City's property on the University's premises, and per: sit e

!- no one to inspect or tsaper with the City's viring and apparatus except h City's representatives. ~ At and frist the Toint.ef%ivery, the thiversity .. asemes full . r.' - / ,

             -                                                     responsibility for all electricity ruraishud utJer this contasst ar. W Univer-                                                                          -               .

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                                                                                                                                           .           i)                                          i       (

i sity's premises, and for wires, apparatus sal a3weeannees used in hermeetion .

                                                          .                                                                                             ,     4               .                                 .
!                                                                  therewith; and the City shall have ao :.mpoa tbt11ty for irju.y .or,d 'nage to
                                                                                                                                                           ,e l*            !
                       .                                           porosasi er property resulting frem such uketricity escurring on University                                                                                         .

premises beyond the Point of Delivery.

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                                                                                                                                                                             .r'. .

The City will aske reasonable prodstons to insure satisfactory service, - i . . . but does not guarnates a continuous supply of electrical energy, and shall act be liable for damages occasioned by interruptions or failure u commenee delivery emused by an act of God or the publie enemy, inevi+mhim accidents, fire, emplosions, , strikes, riots, ar, delay in receiving shipments of required materials, of any Court or Judge greated la any adverse 1ssal i,.n_ 'M or 92 tion, or any order " j of any esamissim er tribuni havtag[jiarisdiction la the premises; or, .without +

limitatism by the preceding enume
Mian; any other set or thias reasonably beyond ,

its sentre13 er 1-.. ,. tans aseeseary for repairs er e haar,as la the City's . I f generating equipment and distributian system. No payment, however, shall be re. , i 1 e geized frun the taniversity for service'whiek the city hessia, agrees but fails to thraish. , Alt!!CEE XI , j The thiversity will not sell or othenvise dispee6f electric power sad ! - energy delivered herender exces.* to its own agencies located on<tbe mata campus l or ca University owned property sostismous to the main campus. / r M , This agreement supersedes all prior agreements between the City and the University for service mentioned hereia, and all representations, promises, or e other indusements,, writtes or verbal, ande with respeet to the attters herois

  • s centsiaed. It is subjwet to all laws and regulations and is not binding upon D . 9 6
                                                                                                    .                                                                                               8 1649
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                                                                                                                                              .                                                                                                 3 t'ha City unless ank atil signed by the City Manager. No modification of any
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provision of this' agreenest shall be binding unless reduced to writing and signed by the paraes hereto, and modification of any one or more provisions of the agree-mest by must:ual consent of h parties hereto shall not affect any of the rezair.ing i ' provisions, hereof not so modified. - AlffICIZ XIII , .

                                                                  .                       This agrument may be terminated at t.hsI optica of the , City if this agreement or any interest in it is assigned vitanut the written consent of the City by the University or hy operatica of law.

AIEIC!2 XIV . 1 This agreement shall contians until terminated as provided herein and shall, I

  • subject to the provisions of Article :CII hereof, shall bind and benefit the i

respective successors and assigns r? the City and the Ilhiversity. ARTICI2 IF . . All annetary ooligations of the 13niversity hereu:mier are expressly sub. ,

!                                                                          , Joct to the availshility of appropriations by the legislature of the State of Tamas, and the University agrees that it will not make use of servioes providad l                                                                           fer herein unises appropriations for such use have been ande. It is asseed that the City may refuse to render th senice if provisions for payamat is

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 !                                                                            amt ande, and any terminate service for non-payasst of prior bills.

j . 3311123EEBS 15EIEOF, the parties hereto have caused this agreement to be I ' signed in sextuplicate as of the day and year first above written. I ,

                                           #                                                                                                                                    TIE IEIVEltSIIT OF TEXA3                      I l

l .. AT AUBTIN  ; n n2 A James M. Colvin Vice President for i . es Affairs i AT EST: CITY CF AUSTIN,' TEXAS I eAustu _A " 4 City Clers i CitAgpasser I \

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