ML20125B588

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Requests That DOJ Be Asked to Reconsider Recommendations to Show Cause for Compliance W/License Conditions,In Light of New Info.Forwards Settlement Agreement Between Intervenors & Other Supporting Documentation
ML20125B588
Person / Time
Site: Grand Gulf  Entergy icon.png
Issue date: 12/10/1979
From: Conner T
CONNER, MOORE & CORBER
To: Harold Denton, Flexner D
JUSTICE, DEPT. OF, Office of Nuclear Reactor Regulation
References
NUDOCS 7912120361
Download: ML20125B588 (150)


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Mr. Harold Denton Director, Office of Nuclear Reactor Regulation  ;

U.S. Nuclear Regulatory Commission  !

l Washington, D. C. 20555 Donald L. Flexner .

Deputy Assistant Attorney General U.S. Department of Justice Washington, D. C. 20530 In the Matter of Mississippi Power & Light Company (Grand Gulf Nuclear Station, Unit Nos. 1 and 2)

Docket Nos. 50-416 and 50-417 Gentlemen:

We have reviewed the letter from the Antitrust Division of the Department of Justice (" Department") to the Nuclear Regulatory Commission ("NRC") dated November 21, 1979, in the captioned matter. The letter reflects the Department's lack of knowledge of certain recent developments which might change its recommendations. The purpose of this letter is to request that the NRC ask the Department to reconsider its recommenda-tions in light of the new information, as may be appropriate ,

considering the interrelationship between the agencies. l l

For the benefit of the NRC and the Department, we are enclosing a copy of the pertinent documents which reflect the changes. We have also provided the Department with a copy of our letter of June 19, 1979 to the NRC stating our position under the applicable law regarding access to the Grand Gull nuclear plant.

In its letter, the Department of Justice supports in part the request by the Municipal Energy Agency of Mississippi

("MEAM") in its petition dated May 29, 1979, for an order to show cause proceeding to determine whether Mississippi Power & -

Light Company ("MP&L") has complied with the license conditions  !

attached to the construction permits for the Grand Gulf Nuclear Station, Units 1 and 2. We wish to offer the following 90013199 N/A s

79121203 4 j

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3 r-Mr. Harold Denton Donald L. Flexner .

December 10, 1979 Page Two observations, in addition to our earlier comments by le.ty.er of June 19, 1979 to Mr. Denton, to suggest that the Departnent of Justice may wish to reconsider its advice and to assist the l NRC in determining whether the order to show cause should be issued.

The Department has stated that it supports MEAM's request.

for the commencement of'show cause proceedings to determine compliance with license conditions 2 (interconnection and coordination of reserves), 4 (participation in the Grand Gulf Nuclear Units) and 5 (wheeling of bulk power) . The Department's letter also refers to condition 6 (sale of power for resale by other entities) preliminarily, but does not include that contention within its recommendations for NRC proceedings.

In particular, with regard to condition 5, at the time it' rendered its advice, the Department was obviously unaware of a Settisment Agreement reached between MP&L, MEAM and the two MEAM municipalities involved in the request for a show cause proceeding, Greenwood and Clarksdale, in Federal Energy Regulatory Commission ("FERC") Docket Nos. ER 78-583 and ER 78-584. A copy of this Agreement and an Explanatory State-ment, which.I forwarded to'the NRC by letter dated October 19, 1979, are attached. Also enclosed are copies of the comments filed by the municipal Intervenors with FERC in support of the Agreement and the FERC letter order, dated December 4, 1979, approving the Agreement. The Settlement Agreement recites the fact that Service Schedules E were filed with FERC on August 28, 1978 by MP&L "to accommodate the desire of Clarksdale and Greenwood to have immediately available a means of receiving (bulk power] transmission service from MP&L." The Agreement further states that the parties were unable to reach an agree-  ;

ment on the appropriate terms and conditions prior to filing, and on September 27, 1978, FERC accepted the two Service Schedules E for filing, effective August 28, 1978, subject to a refund if Clarksdale and Greenwood should prevail in a subse-quent rate hearing.

Prior to such hearing, however, the parties reached an agreement on the terms for transmission service reflected in the Settlement Agreement. As stated in the agreed upon Service

- Schedules E, Greenwood and Clarksdale are guaranteed the follow-ing service:

l 50.10 It is the purpose of this Service 90013200 '

Schedule E to facilitate the sale, pur- 1 chase or the exchange of Bulk Power by transmission'over the transmission system of Mississippi Power & Light Company (MP&L) between or among the City of Clarksdale (City) and any other Entity (ies) with which r Y s'- -'---e ' * ~ - " '-

-- ' ~ ' "

-t Mr. Harold D nton Donald L. Flexner December 10, 1979 Page Three MP&L has an interconnection agreement; and between or among City and any other Entity (ies) engaging in Bulk Power supply with which MP&L is not interconnected but between whose facilities MP&L's transmission lines and other transmission lines would form a continuous electrical path, provided~

that permission to utilize sv t other transmission lines has been c.J.ained by City and the arrangements reasonably can be accommodated from a functional and technical standpoint.

Accordingly, the Settlement Agreement between the parties effectively satisfies MP&L's obligations under condition 5.

As regards condition 2, relating to interconnection and coordination of reserves, it is submitted that compliance by MP&L has been a matter of record. For many years, MP&L has had Interconnection Agreements with MEAM's members, including Clarksdale and Greenwood, which provide for the coordination of reserves and also for the sale of firm power and economy energy transactions. We have attached copies of Interconnection Agreements with Clarksdale and Greenwood, along with the relevant service schedules A, B, C and D. The only possible i point of controversy has been the so-called " single inter-  !

connection problem," which has now been resolved under the new l Settlement Agreement. A review of the Explanatory Statement i accompanying the agreement makes clear that the agreement re-solves the issue "known to th'e parties as the single inter- ,

connection problem," by which "MP&L agreed that when Clarksdale or Greenwood has power for transmission to its system delivered from outside MP&L's service territory to any electrically adequate and closed point of interconnection with MP&L's facilities, Clarksdale or Greenwood shall receive capacity credit under its interconnection agreement with MP&L for such power that is delivered to Clarksdale or Greenwood by MP&L in accordance with the terms and conditions of the settlement l Service Schedules."

MEAM's petition also raised allegations concerning a lack of an interconnection agreement between Gulf States Utilities Company and MP&L. It was suggested that the lack of an inter-connection agreement prevented MP&L from wheeling power to Clarksdale from the City of Lafayette, Louisiana. An inter-connection agreement is necessary to permit the transfer of ,

power for MEAM's account across the single interconnection between Gulf States and MP&L. However, nothing in condition 5 of the construction permit requires MP&L to negotiate with another utility in order to reach an interconnection agreement to benefit MEAM or its members. Condition 5 clearly limits 90013201

o Mr. Herold Dsnton

. Donald L. Flexner December 10, 1979 Page Four MP&L's transmission obligations to those utilities "to which licensees may be interconnected in the future as well as those that are now interconnected" . (emphasis added) .

Condition 5 does not, therefore, require MP&L to enter into any such interconnection agreement, but merely permits MEAM and its members to avail themselves of an interconnection if it exists or comes into existence later. Nonetheless, as shown by the letter dated October 16, 1979 from Norris Stampley, Vice President of MP&L, to Gulf States (copy attached), MP&L is ready to execute an agreement with Gulf States that would provide for such transmission services needed  :

by MEAM or its members.

Accordingly, the only matter remaining for consideration by the NRC is the contention relating to condition 4, i.e.,

access to the Grand Gulf Nuclear Units by other entities.

The facts relevant to MEAM's allegations are also a matter of record-and are not in dispute. Quite simply, neither Clarksdale, Greenwood nor any other member of MEAM has ever expressed a genuine interest in having access to the Grand Gulf facility.

Significantly, the Department of Justice had itself written a letter to.each utility in the Western Mississippi Area on July 17, 1972, asking whether any utility was interested in part ownership. By letter dated August 25, 1972, Clarksdale answered that it had no interest, and in August 1973, Greenwood '

showed some interest in ownership, but dropped the matter after being furnished cost data by MP&L.

The NRC had also given notice to all interested parties by publication in the Federal Register, 39 Fed. Reg. 32641 (September 10, 1974), that construction permits had been issued. As usual, these permits were available to the public for inspection, and they clearly stated MP&L's willingness to offer part ownership in the facility. Similarly, in receiving the Attorney General's advice under Section 105c of the Atomic Energy Act, the NRC again published MP&L's commitment "to offer an opportunity to participate in the Grand Gulf Nuclear Units."

See Notice of Receipt of Attorney General's Advice and Time for Filing Petitions to Intervene in Antitrust Matters, 38 Fed. Reg. 14877 (June 6, 1973). Finally, local newspapers throughout Mississippi carried several stories on MP&L's plans to build the Grand Gulf facility.

Notwithstanding these several occasions upon which other utilities were given notice of an opportunity to participate, no member of MEAM ever expressed any real interest, and the -

request for an order to show cause does not allege otherwise.

Boiled down, the petition simply cites a letter of July 19, 1977 from the Mayor of Clarksdale to the President of MP&L asserting, to quote the petition, that "so far as Clarksdale's 90013202

i Mr. Harold Danton Donald L. Flexner l December. 10, 1979 Page'Five  ;

records showed, no offer of participation in Grand Gulf Nuclear Unit had been made to Clarksdale." Certainly, MP&L was under no obligation either by virtue of license condition 4 or the Atomic Energy-Act to address individual offers to participate to each prospective part owner. Each utility had full notice of the option to participate on the occasions described above, and the initiative clearly lay with any interested parties to in-quire further. Obviously, until MP&L had been contacted with regard to an offer of participation, including some outline of the manner and degree of participation desired, MP&L could do nothing more to comply with the license condition which required it to " offer an opportunity to participate in the Grand Gulf Nuclear Units."

Thus, although Clarksdale and Greenwood had some three and one-half years to negot'iate for participation in the Grand Gulf facility, they failed to do so. Although the MEAM petition dis-cusses many irrelevancies, the earliest firm date it can cite is the July 19, 1977 inquiry from the Mayor of Clarksdale, at which time MP&L indicated that it was too late to negotiate for part ownership. The inquiry came almost four years after the Department of Justice letter, three and one-half years after issuance of the construction permits, and almost three years following publication in the Federal Register of notice that the permits had been issued. The Licensing Board in, Toledo Edison Company (Davis-Besse Nuclear Power Station, Units 1, 2 and 3),

LBP-77-1, 5 NRC 133, 259 (1977), by comparison, required that utilities seeking access to the Davis-Besse facility must make a commitment regarding participation within two years after the Board's decision became final, and within two years after a license application had been filed for future units. The Davis-Besse antitrust proceeding, which resulted in a number of construction permit conditions, involved, significantly, detailed findings as to a situation inconsistent with the antitrust laws.

If the NRC regards two years as ample time for an interested utility to evaluate an offer of participation and make a firm commitment, certainly MP&L cannot be criticized for waiting 3-1/2 years after issuance of its permits to'close out considera-tion of offers merely seekine part ownership in the facility.

Accordingly, it is respectfully suggested that the Attorney General may wish to reconsider its advice to the NRC in light of the new facts presented and the discussion above.

If the Department or the NRC would consider it helpful to have ,

90013203  ;

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4 Mr. Harold.D nton Donald L. Flexner December 10, 1979 Page Six a meeting with counsel on these matters, we would be happy l to attend.

Sincerely, 1

Tro Conner, J l

/dr Enclosures cc: Frederic Chanania,. Esq. (w/o enc.)

Donald A. Kaplan, Esq. (w/o enc.)

Janet R. Urban, Esq. (w/o enc.)

Robert McDiarmid, Esq. (w/o enc.)

i 90013204

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October 3, 1979 33C1 33 Mr. Kenneth F. Plu=b, Secretary Federal Energy ?,egulat ory Ccamiss.' en ' T. A- 9' 79 525 North Capitel Street, N.E.

'!ashington,

< D.C. 20426 mmt BMY MWuicc cmm

?.e: Docket Nos. E?.79-529, EF.79-582, en7:_om2

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Dear Mr. Plu b:

?ursuant to Section 1.13(e) of the Commission's l Rules cf Fractice and Frocedure, Mississippi ?cwer & Light l Co pany (M?LL) encloses for filing an original and fcurteen copies of the following docu=ents:

( 's ) An executed " Settlement Agree =en," dated l October 2, 1979 with Appendices A and 3 between MP&L and the zunicipal customers that will take service uncer the rate filings involved; (2) An " Explanatory Statement and References in Support of Propcsed Settlement Agree-ment";

(3) A draft " Order Accepting Settle ent

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. , an-4 (2) A draft letter order, suitable for signa-ture by a delegated official of the Oc :ission, accepting -he Set-lecent Agreement. .

Appendices A and 3 r the signed Sett'.ecent Agree-

=ent =~a = vised Service Sche ules E which the proposed i

Sett'ezent Agree =ent stipulates shall become effective as Of August 25, ',975 for bulk power transmission service to the City l

90013205 i

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j du f q, of Clarksdale, Mississippi and 3reenwcod Utilities Cet:ission, Greenwood, Mississippi. To_ expedite the review of this effer of settle =ent, ?.evised Service Schedules E.are being filec in unexecuted for=. Mcwever, six executed copies of Revised Ser-vice Schedules I will be sub=itted to the Cc :ission within the next few days.

A draft letter order, suitable for signature by a .

i delegated efficial of the Ce ission, is included as an alter-native to the draft of a for:a1 order accepting the Settle =ent Agree =ent since it is believed by the parties that an acceptance order cay be issued under Section 3 5 of the Cet:ission's j Regulations.

M?&L requests that an approvriate nu=ber of copies -

1 of this filing be trans=itted directly to Presiding Adcinistra- l tive Law Judge Michel Levant for certification to the Oc= ission  !

under Section 1.13(e) cf the Co==ission's Rules of Prac; ice and  !

Procedure as codified by FERC Order Nc. 32. Tc the extent con-sidered necessary, MP&L also requests that this transmittal  ;

letter be regarded as a otic- to Presiding Law Judge Levan

  • requesting certification of the filing and other references to the Cc :ission after the Cc :ission Staff anc any party have had an opportunity for co :ents.

Copies of this filing have been served on all parti-cipants in these proceedings. In accordance with Sections 1.15(e)(1)(vi) and 1.18(e)(2) of the Co==ission's Rules of Practice and ?recedure, at the prehearing conference held on October 2, 1979, Presiding Administrative Jucge Levant granted the request of all participants to shorten the ti=e for initial and reply cc=:ents. Accordingly, the due date for initial co==ents was established as October 15, 1979 and reply co==ents is October 22, 1979.

s Respectfully submitted, MISSISSI??I ?OWER & LIGHT COM?ANY s ,

3y N \ L bl. b Rooert S. Waters Its Attorney .

cc: Hencrable Michel Levant .

Mississippi Public Service Co==1ssion l 3

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FILIRAL INIRGY RIGt1.'. TORY CCM2CSSION Mississippi Power & Light Company ) Docke Nos.. __--IR78-583 anc =.u e-::=,

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Introduction on August 2 8', 1978, Mississippi Power & Light Company (.v3&L or Company) tendered for filing with the Federal Energy Regulatory Cc= mission (Commission) Service Schedules I, Sulk Power Transmission Service, dated August 25, 1978 cc the Interconnection Agreements between the City of Clarksdale, Mississippi (Clarksdale) , dated February 13, 1976, and M?&L (Rate Schedule FERC No. 243) and between Greenwood Utilities Cenmission, Greenwood, Mississippi (Greenwood) and M?&L, dated _ September 19, 1975 (Rate Schedule FIRC No. 239).

Che Service Schedules I were filed to accommodate the desire of Clarksdale and Greenwood to have immediately availabig a me.ans of receiving transmission service frcm MP&L. Ecwever, since the parties involved were unable to reach an agreement on the apprcpriate terms and conditions prior to the date of l tender, it was not known t.nat C_,ar,sc.a_,e and Greenwood woua..c . i accept all aspects of the wheeling rate schedules. I

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Municipal Enere.v. Ac.encv. of Mississippi (MIt.M) , a' joint agencv -

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dale and Greenwood belong, and Scuch Mississippi Electric Power Association (SMI?A) filed timely protests and recuested intervention in the proceedings. By Order dated Septenter 27, 1978 the Conmission accepted the two Service Schedules I for filing as of August 27, 1978 in the consolidated Docket Nos.

IR73-583 and IR75-584, suspended their effectiveness for one day, and nermitted them to become ef f ective en Auc.us 28, 1978, sub'j ect to refund. The Commission also directed that a public hearing be held and granted the requested inter-ventiens. SMI?A was granted intervention in recognition of ,

the fact that it and MP&L were in the process of negotiating an interccnnection arrangement which would involve a rate

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schedule for bulk power transmission service similar to the

- ones :lled . n these proceedings.

90013207

2-During the time between Octcher 27, 1972, when the first of several pre-hearing conferences tt..k place and August 27, 1979 when the evidentiary hearing was scheduled.

to ccamence, extensive discovery was pursued, several settle-ment conferences were held, and the active parties, including the Commissien Staff, submitted their testimonv eursuan: to x s . .% '.' s " x. ... _d . ' a_ s . _d -

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-meny as successful negotiations between MP&L and SMIPA resulted in the filing in Docket No. IR79-529 of an interconnection a s.- a. ,_...e_ n . c n a s -re

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service as well as other services. Chen, prior to the ccamence-ment of cross-examination in these consolidated proceedings, MP&L and the remaining intervenors were able to agree to a settlement (Settlement) en the terms contained below.

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Revised Rate Schedules I u. _2s ag_e c. unc.. s __..m.,_., _. c- e o u s _, 3, w _4 _..s. .w...e _e _e _ _4

.3_ _ o_s this Settlement, MP&L shall tender to the Comp.ission for filing six copies of Revised Service Schedules I for Clarksdale and Greenwood as centained in Appendices A and 3 to this Settle-ment. Such' Service Schedules shall be made effective as of August 28, 1972 and shall supersede in all respects the Service Schedules E as originally made effective in this proceeding on August 28, 1978. ,

._e.m.t_C_r _ 2. v It is further agreed that when Clarksdale or Green-wood has power for transmission to its system delivered from outside M?&L's service territory to any electrically adecuate and closed point of interconnection with MP&L's facilities, Clarksdale or Greenwood shall receive capacity credit under its interconnection agreement with MP&L for such power that is delivered to Clarksdale or Greenwood by M?&L in accordance with the terms and conditions of Revised Service Schedules E.

ARTICLE III aeservations 90013208

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seeking its acceptance and apprcval by the Ccmmission. If this Settlament, which is made pursuant to Section 1.12 (e) cf the Ccem.ission's Rules of Practice and Procedure, is not accepted and approved by the Commission without modificaticn, A_ then: (i) it shall not be binding en any party; (ii) all par-ties shall in that event be deemed to have reserved all their respective rights and remedies in these proceedings; (iii) this Settlement shall not be part of the record in these proceedings,

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generation, transmission er di.tributien cf electricity; previded that, except for zu.'.icipalities, joinc agencies as defined in Chapter 363, Laws of Mississi'ppi of 1978, or rural electric co-c=eratives, "Entitv." is restricted to those which are or will be

.eublic utilities under the laws of the State in which the entity

ansacts or will transact business or under the Federal Power 1

Act, and.are or will be providine. electric service under a con- )

tract or rate schedule en file with and subject to the regulation of a State Regulatory Cc= mission or the Federal Energy Regulatory l l

Commission. 1 v _ Oh- v_m_ _ Cu._s.e_s.Ce_ r_R oe S ,-_ _ . _cr.VTC7

_e .

50.20 Service provided shall be 3 phase, 60 Herte at ncminal 115,000 volts er such other voltage as may be available at presen:

or future agrebd to peints of electrical connection. When deli-veries are made at nominal 13. 8 kv , transmission costs shall be adjusted to reflect the 115 kv level as hereinafter previded.

Transmission ecs:s for serv.ce at other than 115 kv or 13.8 kv shall be adjusted as appropriate to reflect the 115 kv service level.

SECTICN III - CONDITIONS FOR SERVICE 50.30 M?LL will commit to furnish 361k Power Transmissicn Ser-vice specified by City in accordance with this Service Schedule E (3ulk Pcwer Transmissien Service) for the term requested by City ,

to the extent M?&L has, or could have as hereinafter provided, t

'~

transmission capacity available to provide such service in accor-dance with sound engineering and cperating practice and subject to

_ the follcwing standards: 90013211 ,

1

.3 \ b (a) MP&L shall not be obligated to furnish such ser-vice;except as may be c:herwise required when, in MP &L 's -judgment , reasonably exercised,  !

(1) such service will impair the ability of 1

1 MP&L to render adequate service to its customers or reduce the reliability of  !

l its electric service by MP&L to its own

. customers during the term of the scheduled service; or (2) such service will endanger or impair the ,

i operation of MP&L's system, or create un-safe conditions on the system or any of the facilities of MP&L er its customers, j c Intity (ies ) with which MP&L is inter-connected; or (3) such service will require MP&L to construct or install new facilities except as herein-  !

after provided in (b) and (c) below.

(b) To the extent that a condition described in (a) above exists and thereby prevents MP&L from committing to furnish reasonable Bulk Power Transmissien Service requested by City, MP&L, if requested in writing by City, shall promptly provide City with a written explanation describing ,

such condi ion (s) and the estimated costs and s~

means by which such condition (s) could be relieved and the requested service accc=modated. :f City 90013212

4 J m a J w 4.. --d 1

= I 1

l

' ~ ~

j l

l cffers to either construce and own necessary i

- facilities to allow fer such service or to pay the reasonable costs over and above those costs MP&L would otherwise incur for its own I use to relieve the designated condition pre-venting such service, MP&L shall, at its op-tion, accept one of the offers and ccmmit to furnish the requested service.

(c) If all of the following conditiens and the other provisions described in this Service Schedule E are met, MP&L agrees to include in its planning and construction program suffi-cient transmission Capacity to accommodate prospeccive Bulk Pcwer Transmission Service under this Service Schedule E provided that:

(1) City. c

..ives MP&L sufficient advance written notice of the details of the requested service as may be necessary for PS&L to plan and complete from a-functional and technical standpoint the facilities deemed necessary by MP&L to provide such service in accordance with MP&L's construction and cperating standards; and '

(2) City, ac MP&L's option, either conscructs s

and owns or fully compensates MP&L for the cost of such facilities beycnd the 90013213.

1 0

N fP O Ldu DffB n y n f

ces: MP&L would otherwise incur for its cwn use.

(d) In the event the supplying Entity is unable for any reason to supply pcwer to the trans-mission system, MP&L shall have no responsi-bility to deliver such power under this Ser-vice Schedule E. I 1

i (e) The determination of the availability of l existing bulk power cr ansmission Capacity of MP&L during the propcsed scheduled period shall be made on the basis of existing load', future contracted or pro-jected new icad beyond normal load growth, and ncrmal load growth of MP&L, all deter- l mined by MP&L.

(f) If the requested Bulk Power Transmission Service involves transmission over the faci-lities of a third utility system, City will make arrangements for use of those facilities directly with that third system, and MP&L shall'not be obligated to ccamence Bulk Power Transmission Service until such arrangements have been made. MP&L agrees to cooperate in facilitating these arrangements. -

(g) Long-Term Firm Bulk Pcwer Transmission Service under secuion 50.31 is available only by spe-cific agreement, executed by an authori:ed 90013214 l

i f-f re:resentative of MP&L and City, and shall be scheduled in accordance with MP&~'s standard  !

dispatching practices.

(h) Transactions shall be arranged through contract .

1 path. ~

(i) There shall be no obligation to supply service  !

l under this Service Schedule I whenever the con-i tract path is not available for use.  !

l 50.31 LONC--TERM FIRM BULK POWER TPA"SMISSICN SERVICE :, MP&L will commit to furnish Long-Term Firm Bulk Pcwer Transmission  !

Service in accordance with the conditions set forth in Section 50.30 above, and the follcwing provisions:

(a) Centract Period - Service shall be scheduled for l a period of twelve (12) months or such lenger period as may be agreed upon by the parties.

Such agreed upon period shall be the contract period for billing purposes.

(b) Each transmission arrangement shall be requested in writing at least thirty (30) days before that initial service is proposed to commence, if such notice is reasonably required by MP&L.

50.32 SEORT-TERM FIRM BULK POWER TPAN5 MISSION SERVICE : MP&L will commit to furnish Short-Term Firm Bulk Power Transmission Service in accordance with the conditions set forth in Section .

20.30 abcVe, anc :.ne :o A_, owing provisions :

~--

90013215 (a) Contract Period - Service shall be scheduled i 1

in increments of one (1) week with each trans- i missien arrangement considered as the Centract

4 +

-7_

d

- (b). Each transmission arrangement shall be requestec at least ferty-eight (48) hours hefore that ini-tial service is prcposed to commence, if such i

notice is reasonably required by MP&L. '

50.33 SON-FIRM SULK POWER TRANSMISSION SERVICE: MP&L will commit to furnish Non-Firm Bulk Power. Transmission Service in accordance with the conditions set forth in Section 50.30 and the following provisions:

(a) such service shall be provided on a when, 1

as, and if ava'ilable basis and therefore, l l

may be interrupted without liability to MP&L (however, MP&L will, when circumstances permit, give City advance notice of such interruptions).

(b) Each transaction or arrangement of a like character will be verbally scheduled on an hour-to-hour basis in accordance with MP&L's i i

standard dispatching practices.

SECTION IV - RATES AND BILLING 50.40 LONG-TERM FIRM BULK POWER TRANSMISSION SERVICE: The net monthly rate for Long-Term Firm Bulk Power Transmission Ser-vice shall be 50.75 per kilowatt of Contract Demand. For deli-veries at voltages not in excess of nominal 13.8 kv through YJ&L ewned transformers, the net rate shall be increased by 50.25-

  • i per kilewatt.

\_

50.41 SHORT-TERM FIRM BULK PCWER -TRANSMISSION SERVICE : The 1

l net rate for Short-Term Firm Bulk Pcwer Transmissien Service I L

shall be 50.173 per kilowatt of Centract Demand per week. For t .: . . _ . _ . . . _ . . -_ --

.. _ _ ~. _ _ _ _ _ _ _ . _ _ __.

5_

M2&L ewnef transformers, the net rate shall be increased by 50.058 per kilevate per week.

50.42 NON-FIRM 3ULK PCWER TPANSMISSION SERVICE: The net rate fer Non-Firm Sulk P0wer Transrission Service shall be 1.0 mill per kilowatt hour. For deliveries at voltages not in excess of nominal 13.2 kv through MP&L ewned transformers, the net rate shall be increased by 0.30 mill per kilowatt hour.

50.43 CONTRACT DEMAND: The Contract Damand shall be de-fined as the greater of the Capacity scheduled to be delivered under Sections 50.40 and 50.41 (including icsses as stated in Section 50.44) to City or to other Entities during the Contrac Period er the maximum sixty (60) minute demand in kilowatts so measured, excluding inadvertent power flows accounted for under any other service schedule, during the Contract Period. When the Centract Demand for the current billing month exceeds the Con :ac: Demand previously established and billed during the Centract Period, the currently established Centract Demand shall become the Contract Demand for the Contract Period. Pre-vious billings for the Contract Period shall be recalculated on the newly established Centract Demand and the dif ference (s) in the amount (s) billed shall be added to the current month's bills.

50.44 LCSSES CNDER THIS SCHEDULE: Deliveries of Capacity and Inergy by M?&L shall be 97% of such Capacity and Energy in-put into the MPEL Transmission System for deliveries to or for -

Citv.

Where metering equipment measures deliveries below L

115,000 velts, an additional 1% adjustment fer transformer lesses shall be r.ade. 90013217

d 20.,.: . - v - - _u. r e... r u..T

_oe _ _ : _e..e r r_ e. C e r.s _r.e.n. v.

, e..

_..am .. .._=...-e._-. . .

of Energy shall be recognized and accounted for in acccrdance with Service Schedule 3, Unintentional Energy of the Interconnection Agreement by and between City and Company.

50.46 MINIMUM SILL: The net minimum bill for services ren-dered under this Service Schedule E shall be 5100 per month per Sulk Power Transmission Service transaction, but not to exceed

$1,000 per month. .

50.47 BILLING AND PAYMENT: Billing for Service und.er this Service Schedule I shall be based on the Contract Demand or Net Energy as apprcpriate, multiplied by the appropriate ra e during each calendar month service is scheduled. Billing and payment shall be as previded for in Article 6.2 of the Interconnection Agreement b.v and between City and Ccmpanv..

SECTION V - METERING 50.50 Metering equipment shall be as provided in Section 2.4 l cf the Interconnecticn Agreement by and between City and Company. -

\

SECTION VI - EIGULATORY APPROVAL 50.60 The effectiveness of this Service Schedule I is cen-tingent upon any required regulatory approval or acceptance for filing. Ecwever, nothing contained herein shall be construed as af f ectinc. in any wav. the right of the part"2 furnishine. service under this rate schedule to unilaterally make application to the

' Federal Energy. Regulatory Cecmission~for change in rates under i -Section 205 cf the Federal Pcuer Act and pursuant to the Cecmission's Rules and Regulations premulgated thereunder. $QQj32j@

i

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act, anc are c: w _3 :. ce prov c_4ng e_3ectric se- v:.ce uncer a con-tract c: rate schedule en file with and subject to the regulation of a State Regulatory Cc= mission c: the ederal Energy Regula: Cry t C om. .:.. s s :. o n .

I S r_.e . . O S _ _ _ C ._e. . . . .C m. .r e.. C e. .:

.e r.. .y C_r.

' .> s e , 6 0 o0.20 S a _-~v 4 e y _- . .~. _d # =.d s .'.a _' _' be .2 , . _ .J. a .- *. . c. . . ...- '.n a _ '

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= " ' . - w.h.e

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c _. _.=,. . ." - =. a c,_ e a d.

. . . y c _' n'. s o ' e _' e c '._ _3 .a .' c . .n e '._4 ,. n . P. . e . . d e _' _# -

veries are made at ncminal 13. 5 kv , transmission costs shall be a d ." " s . ed '.o - e _' _' e c' '..k.a - k".

__o _' a. v e' a = '..e .- =. '. .. .='. . e _ o, . ~. . .# .d a. ' .

Transmission ecsts for service at other than 115 kv er 13.8 kv a e a,..s.e. a as a__.,_ .__<,ec o- .,.y s e _ .,._4.. e s u. a _1 _, w e _E.e . . ....h . ,

.. . ry. .

i e.. .e _1 i

e

_ : u ,., _4. oh. ___ ___ C o ,. mai . . .ao .,s,.e .e :. .u,._ a c:.

-  : 0 4.

50.30 .M.o&w will commit to furnish sulk Pewer Cransmission Se:- t

t v. *n acccrcance witn tn.is Serv. ce Se.necu.e vice st.ec _, ec bv. . t l j

p_&._,g. 2 . ow e_ _ _, ..s..._4s .e _4 w n .e. e v _4 - e ) .e. .w. ... .. . . . . . . _.e .es.ad-

. '.v. C .4 )' ' ,

'o "...a. e x . =. ..'. .v 5 Ua .'.as, c_ co"__d- ...*=va. a s h.a - a _' . . =. .. e - . _ o v ' d ed- ,

J transmission Capacity available to p cvide such service in accc:-

c anc c=.eratin dance soun w_,t. en=.Lnes: n cract cc anc su: ec:

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,.-. , 3 . r ... o_ _- . .e . _ - .- a # u m e ' b.a. . -. a. ' .4 a b .d. .'. d ' "; o.#

its electric Service bv .9&I, to its own

c. . _e e

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(b.) anC (C) a Cer CICVLCSC *n .

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  • a_ ne. s .. u.a s. a ,., ,

w.. C .:. ; w. .

. a a.b^V* EX# SS E. d .b.a.~.e';" . - a ~.~ eve.". S y .V.O. L T - - -# "- *.~.n

.. . . :. a 4 : n ,; og

e. - ;-- . . g .u. e a S ,w., g..u< S. g- c- ,. . 3 .,,..w t , . .e ** .

m.. .g . .e. .. 4 3 .e 4 +w.m, .c.- o . y: C e .". a'g*C a .e ~. a # baV , C.d. V, o .V.D . & a~ s a; ;

-a

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., c.: w.y , o .e. .u.-p

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- =

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i a .C t.ne rec.ueSteC Serv:.c e accer.noCated.  : C:.tv . -

90013222

' ~ ~

c _' _' =_ _ .c . ~. a _: ..' . e - -

c . s ..-". - . a . .' c .~. . . . =. . = = _ c _-2

.u. s .__-.,._;

_ e

_ _ . _a _ _ ._ _a ._ ._ _ n., __ - _ s. : .. ._ s . . .. c_. . ,

pay the reascnable costs ever and above those '

costs MP&L would c herwise incur fer its own use to relieve the desi:nated condition pre-venting such service, MP&L shall, at its ep-tien, accept one of the offers and-ccmmit to furnish the_ requested service.

(c) If all of the.following conditions and the c ...u. a__. .. . o . - e- z- n.. s c ,. s _. _ ;c e d _; .. ..u._; s S e _-.._;

<. e S-5ed"__'e ? a- a.

. - . . ..='., .v.. &T =c_

__ =_=_s . . '"w'"_

_..~__da. _ . .

its planning and ccnstruction program suffi-cient transmission capacity to accommodate prospective Sulk Power Transmission Service under this Service Schedule E provided that:

(1) City gives MP&L sufficient advance written notice of the details of the requested seriice as may be necessary for MP&L to plan and complete from a functional and technical standpoint the facilities deemed necessary bv MP&L to .

previce suen. service in accordance wit.s. .

MP&L's ccnstruction and operating standards; and (2) C .' .v. , a. .vt - au-'s c.nd c .. , e 4 ..'. = _- . - . . .. . u c . s and owns c full ecmpensates MP&L for the ecst of such facilities beycad the 90013223 - -

I s

.v.o. s*_..n,.__

- O s _. = **_ m. _. ._. _, _ %. _ase ..._._.

_ _n a__

1:s cwn use.

-.- ...e (d) a_ v a. n ' '.h e s _ ~, ~ _' v ._# .7 c, 7. . '_ _4 '_ v.

_ _4 _e u..a_b _' e f: any reason to sue.:.1v o.cwer to the trans-mission system, MP&L shall have no respcnsi-bility to deliver such pcwer under this ser-vice Schedule E.

(e) The determinaticn of the availability of exts:1n 7 cu_, k .pewer tr ansmis sic .. Cacacitv . .

of M.:&L durine - the proposed scheduled

-. s-period shall be made en the basis of existing load, future contracted or pro-jected new 1 cad beyond normal lead growth, and ncrmal icad growth of MP&L, all deter-mined by MP&L.

() __

w. _..__u..._e e :-,

. . . . __ -__g. : .we _ _ _ c. s.._4s s _' c a..

Service involves transmission over the faci-lities of a third utility system, City will make arrangements for use of those facilities directly with that third system, and M?&L shall not be obligated to commence Bulk Power Transmission Service until such arrangements have been made. M?&L agrees to cooperate in

_ee.. . _4 _, _4 ._ a _. _e ._.g ._.w. c =_ e a _. _.. a ,.g s..o ,e. .. .. s .

(g) Long-Term Tirm Sulk Power Transmission Service under Section 50.31 is available oniv bv. s e. e - .

cidic agreement, executec. cv an aut.,orizec ~ ..

90013224

3 a; * *

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.v.s

.m . t -..A.v_...,

3 . 24... s'.*. .* . .' **

. c. .'. a d ..9..4 . .J .a.. m a. a. . . A m - ..*. - a. ._J..'*-. V_ . *=_

- ' s s . .m..m. c a. .4 dispatching practices.

1 (h) Transactions shall be arranged through contract

. a . .,. .

(i) Chere shall be no obligatien ce supply service -

under this Service Schedule E whenever the cen- 3

act s.ath is not available fer use. '

i oo.1.i L O N. G m. ? .2.V. T. ' . .M e UT -.. D. OF;. ". .c W. .c.v.~. .c. .C-

  • CN c ?- .:V

. -- . ~ CT- .* .v.2. & *u

+

i A

will commit to furnish Long-Term Tirm Bulk Power Transmission i

Service in acccrdance with the conditiens set forth in Section >

l 50.30 above, and the fc11owing previsions:

(a) Centract Period - Service shall be scheduled for )

a period of twelve (12) months er such lenger period as mav. be ae. reed noon b.v the parties. .

Such agreed uoen o.eriod shall be the centrac:

l

. . . j ver oc :o~

b'..,'nc. =. u r .c e s e s . 1 (b) Each transmission arrangement shall be requested 1

in writing at ,least thirty (3 0) days befere j i

that initial service is p cposed to ec:=ience, if such notice is reasonably required by MP&L.

20.3'4

.c ..: O.S *. m_ _..** v. T_ -. T.V. mL~u ~s~

~ . .>oF_n *2 . '4' c.u.~_ S_- c ~ Ch' S?_w. ~~_ C?_ *. .v_t &. ,

will ec=mit to furnish Short-Term Tirm Bulk Power Transmission Service in acccrdance with the conditions set forth in Section ,

50.30 abeve o and the fo11cwine. previsiens: 90013225 Y- (a) Contract Period - Service shall he scheduled I in increments of one (1) week with each trans-mission arrangement considered as the Centract 1

. . - . _ . . . . - - 1

- _. . . _ . - . ~ . . . _ . . . . . .- --. . - - -

O

- D OC' 3 1 4'

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3 .

I

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i( b_ ) .

E_ _s = .%.-- . .s. =. s...4 s s .4. =.

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d 0 . .. 3 g. o e. . . _ r _ e. .v. S U L v.. s. ok _r.m. m.. e.t... .e.v. . .r _c _e _T ON. C'_ * ".~CT_ .-

. .. v.2.

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1 1

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. a rm 2,, - x _-- ., e _ . __ a , e.

s . . . . . _4. -e s _:.. .,.e_ c . _v - . e.. . ..

acec dance with the ccnditions see forth in Seccion 50.30 and l the folicwine. ::cvisions: .

(a) Such service shall be provided on a when, as, and if available basis and therefore,

.. a v. be _d n e_- . " . e. .d.4 .n' o" . _' _da b _d. _' _d .v, .

o

.v.P & L (hewever, MP&L will, when ciremmstances eermitr give Citv advance notice of such

.' .. . *_ _ _- " e, . _# . .. s ) .

(b) I:ach transacticn er arranc.ement of a like character will be verbally scheduled on an hour-cc-hen: basis in acccrdance with MP&L's standard dispatching practices.

S rCe.. r Oh-_ - V _ v. . . . e _ .63 3__s- _r _N G

,= 0 . 4 0 t,0n. C. _m_

_ _ eP.M_ _;_r m_u. .se . _- -n Pon-.s _ e. :..aw ev- c e 03.,- cr_e..y.Cr.

. _. e.he ,

1 l

net monthly rate for Lone-Ters Firm Bulk Power Transmissien Se:-

vice shall be 50.75 ee: kilevat: cf Centract Demand. For deli-veries at voltaces not in excess of ncminal 13.8 kV throuc.h

.9&L owned transformers, the net rate shall be ine eased "y 5 0.25 '

,e_ x__, ..a..

90013226

.; 0 . .e. _, S uC.R _ _m_ e_.s.v.  ;.  ;.u. .-.=. 1- < .3r e_ ,.

. e. .. .s_ess.v._ S.e. _ O g. .e r .y 2 C _.r -

. c. .' . =.

net rate for Short-Ters Fir = 3ulk Power Transmission Service

-shall be 50.173 per kilowatt of Centract Demand per week. Fc:

( -

E- d c m.. a- se .-

..-. .. -. ...= .: c .... . s , . .s. ..

.w,,-

. . . - -s.-<.--....e w..

S O . C = 8 ' =- ~ '.*

. . . ' .*.".*.* a ~. . - =- ~ w c = k . -- .

o 0 . .', 2 N

. .C ", 7. . S.u>. S.U~

. a F. D. ops _.:. *..<* - *: .c.v. - --c c ' ON .c ?.".V.. C -T .- "..h e .7 a. .-

rate for Non .?irm Sulk ?cwer Transmissien Service shall be 1.0 3, ,----..


r e . v. 2 a s.

. . . . . . n ---.

. r.. . . c c.--- - ey..:e.

.- s ---

excess of ncminal 13.8 kv through MP&L ewned transformers, the ne: rate shall be increased by 0.30 mill per kilowatt hour.

50.43 CONTS.ACT DEMAND: The Contract Demand shall be de-s i .n. . ;- e s u

..u. ;---.--

. . - ....- n. . .u.e cafs__.3, ..

. gn..%..an,e s -

s b. as,:ys e- s under Sections 50.40 and 50.41 (inclucing icsses as stated in j 1

Section 50.44) to City . c: to other Entities during the Centrac:

Period c: the maximum sixty (60) minute demand in kilowatts so 1 measured, exclucin e. inadve': tent ecwer flows accounted fez under .

. . 1 any other service schedu.ce, cur ng the Centract e eriod. When

.n e Cc...ac. . . . - s._a,..c

- . . . ec.- .s.e .. nt._.e..

w: 3,


_4,g .. ..-..w. .... es..- e.cs

.w.. .e Contract Der.and previously established and billed during the Centract Period, the currently established Centract Demand shall become the Contract Demand for the Centract Period. Pre-vious billings for the Centract Period shall be recalculated on the newly established Con :act Demand and the difference (s) in the amount (s) billed shall be added to the current menth's bills.

oo.44 - e.ere a- -- . r.,ns _ .rw m.=.

.- s scu.rou u r.

- . 3.,'v=--das o' C=ea c ' '.v and Energy by MP&L shall be 97% of such Capacity and Energy in-

.s . 4 ... o

. . s.. .vegu . a...e. d esd aa.

- -. .c.v s . a. ... ' c -

- e d - v =-- e s d

o c- #-

l City. Where metering equipment measures deliveries belcw 115,000 volts, an additional 1% adjusument for transfermer icsses j sha11 he =aee.

90013227

s

.v . s ..: > ... m r o. . . - . . :..,.s.. v. r. e. C r.

r,

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w.e. ..w. 3. -. y4 ee ge..e.

w e s. 3, g..4 .... e.. .. 4 o na '  ?.a.-

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r.-=_=-..=-...

'v a

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-e v.

v. : .. .

. -- . ..w.e . e. . 4..4.. . - . .

w43, e

o- s ,-1.,_4c

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.: . - o. e ., . e. e.- .. . 4 s Se v'c= Sc.'.ed"'a  ?. ' e <

.c.'..a-- c' 00 ce 7.-.. '.

. . c. --a -

Bulk Power Transr.ission Service transaction, but not to exceed 51,000 ter month. .

--n .- 3 0 r4 3s e .v..v.r.p.

oo.n1 r 2.4 , , 4 ,e.

. - - - . . .- Se vd ca- -".nda- .k. ' s - .

Service Schedule I shall be based on the Contract Demand er Net e...a.-

v. as =..- -: 'a.=, ...u' 4-ed-

.v ..k.a. a: .o 'a'.e . a-.e d"- '..-:

e a . .'. c a .' a. .n da.- .. ..'.. se vd-a

. ,. - # s s. ..a.d"'ed. -

u. .d ' ' 4 .. c.

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.c'..a-- ka-. as : -w v ' dad- ---#-- -d . , n-.d-'a

. -- *. 2 c' he

. . ..=--+....a..'ca.

Agreemenc b.v and between City and Conpany. . .

1 I

-c A -. -m

. 2 -0h. %. -

.v r_ .

v. . e 50.50 Metering equipment shall be as provided in Section 2.4 cf the Intercennection Agreement by and between City and Company.

SrC* Oh' V- -

P GL".a'...**s Rv. .::

.. . e.. Rovc.s 50.60 "he effectiveness of this Service Schedule E is cen- ,

I

-a_ e"-' a'.-.a v a, -~va '

l

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.. - = . . # - ed --

-- ac - e....=.,ce #~~-. 3

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.a.ce...-.n e. c ..'. = d ..a. d. '.a . - ---a - d .n s .'.a ' ' 'e ca..e.-. -"ed- as n a c , . : .,e.

e,

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f g-.y .

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er- -. . c -..e Ta_da-- a_' -?.7 e - .v .2,e c. " ' a .- .. v. Cc...._ds

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--- . .'..=..-e'...=.=-="...da_-

See:icn 205 cf the Federal Power Act and pursuant to the Ccmmissien's

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.. ---..,.,.,.e, f - -. . . . d .k.

. . ,=. " n c' -- .

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a 1

1 1

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- .'. a. . . . '. a..- -..- . . a. c . .# . . . r'. e. a e ..=. . . . c. a..v.

c . .'.. a. - S = . v ' e c '. . e ?----" ' = .*.=.-=.".~.d=.,

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n . .,. e ;- . . e n .: .,....._.._,.a c . . n:

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T

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90013229 1 l

1 i

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l

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.. 1 S

b CNITED STATES OF AMERICA BEFORE THE FEDE?AL ENERGY ?.EGULATORY COMMISSION Mississippi Power & Light Ccmpany ) Docket Nos. ER79-529,

) ER79-582, ER78-583

) and ER78-584 EXPLANATORY STA"ZFINT AND REFERENCES IN SUPPORT OF PROPOSED SETTLEMENT AGREEMENT In accordance with Section 1.18(e) of the Commission's Rules of Practice and Precedure, Mississippi Pcwer & Light Ccmpany (MP&L cr Ccmpany) submits this Explanatory Statement In Support Of Proposed Settlement Agreement which is being filed simultaneously in the above-identified censolidated pro-ceedings.

As discussed in the Introduction to the settlement Agreement, Service Schedules I were tendered for filing by ,

MP&L to provide the City of Clarksdale, Mississippi (Clarks- l dale) and the Greenwood Utilities Commission (Greenwood),

Greenwood, Mississippi (Municipal Intervenors) with a means of receiving two-way bulk powe- +-=*smissien service acrcss any part of MP&L's transmission facilities. Concurrently with the conduct of pre-hearing discovery and settlement nege-tiations in these proceedings, MP&L was also engaged in nego- j tiations with South Mississippi Electric Power Association l (SMI?A), an intervenor in these proceedings, to develop a comprehensive interconnection arrangement. As a result of the negotiations between SMIPA and MP&L, an agreement was ultimately reached which included a service schedule for bulk power transmission service to SMIPA (Service Schedule TS-2) .

The MP&L-SMEPA Interconnection Agreement and bulk power transmission service schedule were tendered for filing on July 23, 1979 in Docket No. ER79-529. Since the fundamencal concepts underlying Service Schedule TS-2 and the nature of ser-vice which the schedule was designed to facilitate are iden- ,

tical to the underlying concepts and service facilitated by Service Schedules I, MP&L decided to file revised Service Schedules I which would conf orm to Service Schedule TS-2 as nearly as possible. This was accomplished en August 3, 1979.

Although MP&L intended these filings to be noticed and docketed in these same proceedings, the revised Service Schedules E were noticed in a new docket, Docket No. IR79-562, by the Cc= mission. Although MP&L had already filed its case-in-chief 90013230

_, O 2- .

J in these p'roceedings-in suppert of the rate schedules as orig-inally filed.and the Commission Staff as well as the Mun,icipal

-Intervencrs had filed their direct cases, MP&L introduced the revised rate schedules directly into these proceedings in its rebuttal testimony.

As explained in the Company's rebuttal testimony, I the revisions resolved many of the differences between MP&L and the Municipal Intervenors even though MP&L had been unable to settle with them as SMEPA and MP&L had done. Basically, the revised Service Schedules E expanded the classes of ser-vice to include long-term firm, short-term firm and non-firm transmission service in lieu of long-term firm and what was called interruptible in the original filing. The rate for long-term firm transmission was reduced frem S.97 per Kw/menth '

to S.75 eer Kw/ month and new rates were established for the

~  !

alternative forms of service. Non-firm bulk power transmission service is characterized as being non-firm but there is no intention on the part of MP&L to arbitrarily interrupt service because of system peak load conditions. Circumstances which would lead to interruption of this specific service would be related to line loading conditions rather than system peak 1 cads. The frequency of interruption is expected to be low, but the service schedule would provide that opti.on for pur-poses of equipment and service protection should lines become overicaded. This would involve consideration of the thermal limits of transmission line capacity, voltage and stability conditions.

With the revised Service Schedules E as a new point of departure, MP&L and the Municipal Intervenors were able to reach a settlement in erinciele of all issues en the day the formal hearing was to begin." MP&L agreed to make additional i

modifications and rephrase various provisions of the rate schedules to improve clarity. These changes are reflected in the settlement Service Schedules E. In addition, with respect to the issue kncwn to the parties as the single interconnection problem, MP&L agreed that when Clarksdale or Greenwood has power for transmission to its system delivered from outsice MP&L's service territory to any electrically adequate and closed point of interconnection with MP&L's facilities, Clarksdale er Greenwood shall receive capacity credit under its interconnection agreement with MP&L for such power that is delivered to Clarksdale or Greenwood by MP&L in accordance with the ter=s'and conditions of the settlement Service Schedules. As a procedural matter, it was further cecided that MP&L should withdraw the revised Service Schedules E '

that-were noticed in Docket No. ER79-582 to clear the way for an unccmplicated review of the settlement in chese proceedings,

i. Therefere, MP&L c. ave its notice of withdrawal of the filinc.

cn September 4, 1979.

90013231

. . ~ . _ . _ _ . .. . _ .. _ _ . . .

l, D PP w r2PD99y1f" L

by Order dated. September 21, 1979, the Commission accepted the MPEL-SMEPA Interconnection Agreement and supper:ing rate schedules for filing and consolidated Docket No. ER79-529 with the Clarksdale and Greenwood proceedings.

The Crder also granted MP&L's notice of withdrawal of the filing in Decket No. ER79-592.

No transactions have ever occurred under the origi-nally filed Service Schedules I. Accordingly, the Settlement does not ~ contain a provision for refunds.

Any. changes which SMEPA desires to have hade to put Service ScheduleLTS-2 and Service Schedules E on an equal footing.will be submitted to the Commission by MP&L as part of a separate settlement agreement with SMEPA. However, since the Commission's consolidating order of September 21, 1979 stated that the proposed rates, terms and conditions of the preposed interconnection agreement between MP&L and SMEPA "may be unjust, unreasonable, unduly discriminatory, prefer-ential or otherwise unlawful", MP&L and SMEPA are unable to

  • predict whether the'Cc= mission Staff's support may be obtained for a settlement agreement' . In any event, MP&L will ensure that SMEPA has a full and complete opportunity to match all '

rates, terms and conditions cf Schedule TS-2 and Service Schedules E.

Based on discussions with the Staff, it is believed that they will support the Settlement Agreement in their comments. Accordingly, MP&L expects that the proposed Settle-ment Agreement.can be certified to the Commissicn as an uncontested and complete resolution of the Clarksdale and Greenwood phases of these censolidated proceedings.

Apart drom this explanatory statement and the comments which may ra received frem the Commission Staff and SMEPA during the ' comment period, support for the Settlement Agreement may be found at (1) Eearing Transcript Volume 6, pp. 68-70, Volumes 7 and 8 and (2) MP&L's September 4, 1979 Notice of Withdrawal of filing in Docket No. ER79-582.

Reseectfu11v. submitted, MISSISSIPPI POWER & LIGHT COM?A.NY

/

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tr m d S 6 6 Robert S. Waters Its Atterney 900l3232

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ELECT?lC RATES: Settlement Agreement Dn

~' U h D hD UNITED STATES OF AMERICA j u

FEDEP.AL INERGY REGULATORY COMMISSION 3efore Commissioners:

Mississippi-Power & Light Company ) Docket Nos. ER79-529,

) ER79-582, ER78-583

) and ER78-584 ORDER ACCEPTING SN WWT AGREEMENT (October , 1979)

On August 28, 1978, Mississippi Power & Light Com-pany (MP&L) tendered for filing unexecuted bulk power trans-mission service rate schedules - Service Schedules I, Bulk Transmission Service - as supplements to (1) its Interconnection Agreement with the City of Clarksdale (Clarksdale) , Mississippi, dated February 13, 1976, and (2) its Interconnection Agreement with Greenwood Utilities Cormission (Greenwood) , Greenwood, Mississippi, dated September 19, 1975. The service schedules for Clarksdale and Greenwood provided MP&L with a means of furnishing specified classes of trans dssion service over its transmission facilities at the reques of Clarksdale or Green-wood.

Notices of MP&L's filings were issued on September 6, 1978 in Docket Nos. ER78-583 and ER78-584 and timely petitions to intervene were subsequently received from (1) Clarksdale and Greenwood (Municipal Intervenors) , (2) the Municipal Energy Agency of Mississippi (MEAM), a joint agency in which Municipal Intervenors are members, and (3) South Mississippi Electric Power Association (SMIPA), an organization of cooperative asso-ciations which was then engaged in negotiations with MP&L to develop a comprehensive interconnection arrangement that was to include a rate schedule for bulk power transmissien service similar to that established in MP&L's Service Schedules E.

All interventions included protests that the proposed service schedules were not just and reasonable.

In an Order issued September 27, 1978, the Commission accepted the transmission rate schedules for filing, granted

(_ the requested interventions and MP&L's request for waiver of notice and permitted the Service Schedules E to'become effective, after suspension, on August 28, 19.78. The Order also consoli-dated Docket Nos. ER78-583'and IR78-584, directed MP&L tu file L 90013233

l a case-in-chief.within time limits established by the desig

  • ef '

Presiding Administrative Law Jufce, and provided for a hearing.

1 On October 3, 1979, pursuant to FERC Order No. 32 i issued June 13, 1979, MP&L filed an offer of settlement and i supporting documents with the Commission's Secretary and recuested the Secretary to forward a copy to the Fresiding Administrative ,

Law Jufge for certification to the Commission. On October , l 1979, fo11cwing an opportunity for comments frem participants in l the proceedings, the proposed Settlement Agreement and specified  !

supporting documents were certified to the Commission by the  :

Presiding Administrative Law Jufge. Since na =roposed Settle- l ment Agreement would resolve all issues in the proceedings  !

among MP&L, Clarksdale, Greenwood and MEAM and was signed or I supported in comments by all parties to the proceedings, including the Commission Staff, it was certified to the l Commission as a complete and uncentested offer of settlement.

According to the Settlement Agreement, the explanatory statement, and other acccmpanying documents, the settlement ser-vice schedules (Revised Service Schedules I) provide for expanded classes of service, mere flexible terms and conditions, and icwer rates in comparison with the original filings by MP&L in these dockets. Under the proposed service schedules, MP&L will provife transmission service between or among the Municipal Intervenors and any other public utility entity with which MP&L has an inter- I connection agreement; and between'or among the Municipal Intervencrs and any other public utility entity when a continuous electri-cal path has been established and the necessary arrangements can be made from a functional and technical standpoint. Firm transmission service is available in increments of twelve months or longer as may be agreed by the parties and increments i of one week. Interruptible or non-firm service is also avail- l able en an hourly basis. The rates for such services are set  :

at 50.75 per kilowatt of contract demand per month, S0.173 per kilewatt cf centract demand per week, and 1.0 mill per kilowatt hour, ressectively.

~ I The proposed Settlement Agreement and anci 132 4 90 .ary ocu-ments recognize that MP&L recently concluded lengthy negetiations with SMIPA for an Interconnection Agreement, which provided for a number of services, including bulk pcwer transmission rSTvice i (Rate Schedule TS-2), that was filed with the Ccemissic: o r, i July 23, 1979 in Docke: No. IR79-529. 3y Order dated

. September 21, 1979, the Commission accepted the MP&L-SMIPA *.nter-connection Agreement and supporting rate schedules for filing and' censelidated Docket No. IR79-529 with the Clarksdale and Green-wood proceedings. Enile there are sc=e differences between the

, MP&L-SMEPA bulk power transmission service rate schedule TS-2 and the settlement rate schedules, it'is understood.that the differences merely reflect the separate positions taken by SMEPA andithe Municical Intervenors. It is further understood that MP&L will offe'r a conforming rate schedule to SMIPA. Accordingly, the Commission finds that approval of the proposed Settlement

_3-The Commission further finds the Revised Service Schedules E are just and reascnable and that their' approval is in the oublic interest. The Commission is advised that since no transactions have yet taken place under the schedules,

~

no procedure for revenue refunding is required.

The Cc= mission's approval of this Settlement Agree-ment shall not constitute approval of or precedent regarding any principal or issue in these proceedings. .

The Commission orders:

CA) The Settlement Agreement filed by MP&L in this proceeding is approved.

(3) In accordance with Article I of the approved Settlement Agreement, Revised Service Schedules I (Appendices A and 3 to.the' Settlement Agreement) are accepted for filing and made effective as of August 28, 1978 in substitution for Service Schedules E as originally tendered. See Attachment A for rate schedule designations.

(C) The proceedings in these dockets are hereby ,

l terminated.

Sy the Commission.

(SEAL)

Kenneth F. Plumb, Secretary 90013235

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D oc,.<e t No s . . R./ 8 - s. - .ea an c :.R / s - s e ,,

Rate Schedule Designations i,

Mississippi Pcwer & Light Cer.pany ,

1 (1) Suceler.en: No. 6 te Rate Revised Service Schedule I Sch'edule FPC No. 239 Gre enwecd C ' ' ' ' e s Cccr.is sic Greenwood, Mississippi .

I l

(2) S uppler.e n: Sc. 6 te Rate Revised Service Schedule I Schedule FPC No. 243 Clarksdale, Mississippi

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ahcVe designations 90013236'  !

Decks: Mes. IR78 ~E3.anf IR75-554 Mississicci ?cwer & Licht Comsanv Attention: Mr. Frank 5.' York", Jr.

~~

Vice President and Secretary.

P.O. Box 1640

- Jackson, Mississippi - 39205 i

1

Dear Mr. York:

-On October 2, 1979, your company' submitted a pre-pesed settlement agreement concerning the rendering of bulk power transmission service to the City of Clarksdale, Mississippi and the C-reenwood Utilities Commission which was certified to the Commission by the Presiding Administra-tive Law Judge on , 1979 as a complete settlement of Docket Nos. ER78-583 and ER78-584 Staff

. filed comments in support of the settlement agreement en

, 1979.

Based en Staff's analysis, the settlement agreement is in the public interest and is accepted. The above rate filings submitted and supported by your company have been

~

accepted for filing to become effective en August 28, 1978.

The IR78-583 and ER78-584 settlement rates are designated as shown on the enclosure.

This acceptance for filing does not constitute approval of any service, rate, charge, classificatien, or any rule, regulation, contract, er practice affecting such rate er service provided for in the above designated rate schedule; ner shall such acceptance be deemed as reccgnition of any claimed contractual right or obligation affecting c relating to such service or rate; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission or its staff in any proceeding now pending or hereafter instituted by or against your company.

Docket Nos. IR78-583 and IR79-584 are terminated, l By direction of the Commission.

Secretary s nelosure 90013?37- -

4 0

.-. . , a n -

Encicsure Docket Nos. ER78-583 and ER73-584 Rate Schedule Designations Mississippi Power & Light Company

  • l (1) Supplement No. 6 to Rate Revised Service Schedule E Schedule FPC No. 239 Greenwood Utilities Ccmmission Greenwoode M i s s i s s i =. =. i (2) Supplement No. 6 to' Rate Revised Service Schedule E Schedule FPC No. 243 Clarksdale, Mississippi (3) Supplement No. 1 to each Settlement Aereanent

~

of.the above designations 90013238

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. a---~~3 OP1 roan 1000 FEoERAt. ENERGY REGULATORY CoMMISSloN WASHINGTON 10426 D"*D *D T

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ha Docket Mos. ER78-583 ER78-584

, ER79-529 DEC 4 3 73 Mississippi Power & Light Company Attention: Mr. Frank S. York, Jr. .

Vice President and .

Secretary C P.O. Box 1640 .

Jackson, Mississippi 39205 l Lear Mr. York: .

On Oc tober 3, 197 9, your company submitted pursuant to l

Section 1.18 (e) of the Commission's Rules of Practice and

() Procedure, an of fer of settlement concerning the rendering of bulk power transmission service to the City of Clarks-dale, and the Greenwood Utilities Commission, both located in Mississippi.  !

The settlement was also executed by the Municipal Energy Agency of Mississippi, and was certified to i the Commission by the Administrative Law Judge on October 24, p

1979, as a complete resolution of all issues pending in the ER78-583 and F.R78-584 portion of the proceeding consoli-dated with ER79-529. -

The Commission Staff filed comme' n ts in support of this offer of settlement on October 12, 1979, which indicated that the settlement revenue level produced an earned return that did y not exceed Staff's recommended 8.98% overall rate, including a 12.25% return for ccmmon equity on an equity ratio of 34.885.. Reply comments in support of the settlement were filed by the Cities on October 17, 1979, and by the Company on October 22, 1979. No other comments were filed.

The offer of settlement is in the public interest and is hereby accepted. The Commission acceptance of this settle-trent does not constitute approval of or procedent regarding any principal or issue in the concolidated proceeding.

Revised Service Schedule E attached to the settlement agree-ment designatedis accepted on thetoinclosure.

become ef fective on August 28, 1978, as -

It is noted that no refund provision is contained in the offer of settlement because no trancmission service has yet been rendered as of the date of the submittal of the setticmant.

90013239

. . . . we.. wwese e's s aasurg WA2HINSTON 20426 ."

j

~ .

Mi; All revenue amounts, if any, collected in excess of the At< settlement rate level must be refunded within 30 days of the date of this letter order, ,with -interest computed in accor-dance with Order No. 47 issued September 10, 1979. Within p,q 15 days after refunds have.been made, or within 15 days from Jcl the date of this letter order if no transmission service was pea rendered under the suspenced rates, ths : Company shall file with this Commission a compliance report, showing either (1) monthly billing determinants and revenues under prior, on present and settlement rates, the monthly revenue refund, Su and the monthly interest computed together with a summary o:'

Prc such information for the total refund period, or (2) that ..,

of transmission service has yet been rendered. . . In additior. the da3 Company shall furnish a copy of such report to each State in commission within whose jurisdiction the resale custor.ers P.ur distribute and sell electric energy at retail.

thei 24 thj This order is without prejudice to any findings or o ders which have been made or which will hereinafter be made by dat the Commission, and is without prejudice to any claims or i The contentions which may be made by the Commission, its staff, 1 of or any party or person affected by this order, in ar.y pro-ceeding now pending or hereinaf ter instituted by or against Mississippi Power &

sat Light Company.

not a1 Upon satisfactory completion of the above compliarce and

34. refund report requirements, the ER78-583 and the ER78-584 fil , . portions of the consolidated proceeding are terr.1nated.

on i >

By direction of the Ccmmission.

The har man any Secretary j Rav i man  !,

em 90013240 I

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Wass,u p ~ ' LOMygSSION

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Enclosure

/

Docket Nos. ER78-583 and ER78-584

.tt:nt

0. a< Bate Schedule'Designati m ekset tr & Mississippi Power & Light reany .

Octof (1) Supplement No. 6 to Rate Revised Service Schedule E tien Schedule FPC No. 239 Greesw:d, Utilities Cand.ssicn

ec q (Supersedes Supplement No. 5) Greenwood, Mississippi N1h j -

's Cnc ical, (2) Supplement No. 6 to Rate

1 pal Revised Service Schedule E Schedule FPC No. 243 Clarksdale, Mississippi

'o m i (Supersedes Supplement No. 5) 979,-  ;

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UNITED STATES OF AMERICA 1 3EFORE THE , l

, FEDERAL ENERGY REGULATORY COMMISSION i l

Mississippi Power & Light Company ) Docket Nos. ER78-583

) ER78-584

~

, INTERVENOR COMMENTS AND REPLY COMMENTS IN SUPPORT OF THE PROPOSED SETTLEMENT AGREEMENT On October 3, 1979,' Mississippi Power & Light Company ("MP&L") filed an executed 1/ Settlement Ag'reement between MP&L, the City of Clarksdale, Mississippi, Greenwood j Utilities Commission and the- Municipal Energy Agency of '

Mississippi. Because of a failure in the messenger service utilized by counsel for MP&L, intervenors were not advised of tne filing date, and did not receive their copy of the filing until October 10, 1979.

The Staff has filed Comments in Support of the Pro- l posed Settlement Agreement, dated October 12, 1979.  ;

Intervenors note that the Staff cost of service analysis )

attached- to its Comments in Support is not necessarily the approach which intervenors would use in analyzing the proper i cost of service for a transmission rate. As the Settlement Agreement itself provides at p. 3, paragraph 2, "Nothing in this Settlement ... shall constitute an admission by any party of the correctness or applicability of any ... principle or method of ratemaking or cost of service determination.

It is also agreed that the parties shall not be considered as necessarily agreeing with or conceding the applicability of any principle, or any method of ratemaking or cost-of-service determination ... or the application of any rule or interpretation of law, that may underlie, or be thought to underlie, this Settlement or Revised Service Schedules E." .

1/ The Staf f Comments state incorrectly thLt the Settlement Eas not been executed by the intervening municipal customers.

The Settlement has been so executed, the revised service schedules are in the process of separate execution by each '

City.

90013242  ;

l L

1 4hile intervenors believe that. it would be unfor-tunate if this Commission adopted a specific cost of service l approach when all parties have disclaimed an intention so to '

do, there are further characteristics of the Settlement in addition to those sta ted by the' S ta f f , that should encotrage  ;

rapid approval of this Settlement. In particular, since cer-tain ambiguities might otherwise create confusion:

1. The Company has agreed tha t for purposes of Section 50.46--MIMINUM BILL, the power service transaction to which the Minimum Bill of S100. i applies under Section 50.33, NON-FIRM BULK I POWER TRANSMISSION SERVICE, may be a single l transaction or arrangement stated in advance l

. for as much as a week, so long as the schedule is given its dispatcher in accordance with its standard dispatching practices.

l

f. The Company has agreed th a t , so long as a transmission rate for an amount of power being delivered pursuant to Sections 50.31 or 50.32 is being paid to MP&L, the Cities or MEAM may designate, from time to time, changes in the point of delivery as among Cities without the incurrence of additional costs, thus being able to transmit among each other.
3. The Company has agreed that it will not be necessary to give it an additional thirty days notice for the Laf ayette transaction.

For these reasons , and the reasons stated in the settlement Agreement filing and the Staff Comments in Support of the Preposed Settlement Agreement, intervenors Clarksdale, Greenwood, and MEAM request expedited approval of the Settlement by this Commission. .

Respectfully submitted,

/ /

Robert C. McDiarmid '

l Attorney for the City of l Clarksdale, Mississippi; l Greenwood Utilities Commission, Greenwood, Mississippi and the Municipal Energy Agency of October 17, 1979 Mississippi. -

Law Offices Of:

Spiegel & McDiarmid 2600 Virginia Avenue, NW 90013243 Washington, D. C. 20037

,~ ,

VERIFICATION DISTRICT OF COLUMBIA, SS:

Rcbert C. McDiarmid, ifter being first duly placed

. upon affirmation, deposes and says that he is an attorney for

,' ~ the City of Clarksdale, Mississippi, Greenwood Utilities Commission and the Municipal Energy Agency of Mississippi and

, that as such he has signed the foregoing "INTERVENOR COMMENTS AND REPLY COMMENTS IN SUPPORT OF THE PROPOSED SETTLEMENT AGREEMENT" for and on behalf of said parties; that he is authorized so to do;' that he has read said Comments and is f amiliar with the contents therein and that the matters and things therein set forth are true and correct to the best of t his knowledge, information and belief.

Robert C. McDiarmid Subscribed and affirmed to before me this 16th day of October, 19.79 l

} -

I h.a+'7 . . NP L c-i Notary Public l l '

Mr Ccuast.:n 6pi,~6 G. g un CERTIFICATE OF SERVICE I hereby certify that I have this day caused to be served the foregoing document upon each person designated on the official service list compiled by the Secretary in this proceeding in accordance with the requirements of Section -

1.17 of the Rules of Practice and Procedure. .

Dated at Washington, D.C., this 17th day of October, 1979.

/ N .

Robert C. McDiarmid

, 90013244 ;_

.. . 33:7 '

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INTERCCNICCTION AGEE EiT BY At"D EWEEN ^

GEEF400D UTILITIES CO.WIISSION AND MISSISSIPPI PCWER & LIGHT COMPANY 0.1 This Agreenent =ade this 19th day of September , 1973 by and between the GEEY400D UTILITIES COMMISSICN, GEEF400D, MISSISSIPPI (hereinafter called " Greenwood") and MISSISSIPPI PCWER & LIGHT COMPANY (hereinafter called "Cc=pany"),

WITESSETH: )

0.2 WEEAS, the Cc=pany and Greenwood each own and operate an electric i

system supplying electric service to the public; and  !

O.3 WEEAS, Cc=pany is interconnected directly and/or indirectly and coordinates its power and energy supplies with its corporate affiliates -

Arkansas Power & Light Co=pany, Arkansas-Missouri Power Cc=pany, Louisiana Power & Li6 ht Company, and New Orleans Public Service, Inc., the electrical facilities of said companies together with those of Cc=pany being herein-after referred to compositely as the " Middle South System"; and 0.4 WEEAS, the Middle South System is interconnected and operates in parallel with many other utilities within and without the states of Mississippi, Arkansas, Louisiana and Missouri; and l

05 WEEAS, the public interest requires that each party shal' make i all provisions necessary to reasonably assure the continuous availability l

of electricity in sufficient amount to supply all normal requirements of l

customers; and *

  • 22514G 90013245 -

-'+ .,

. i 0.6 WHEREAS, Greenwood and the Company desire to enter into a compre-

- hensive interconnection agreement for the establishment of an interconnection and securing of coordination between the Greenwood and C z pany systems, as aforesaid in paragraph 0.!+; and ,

0.7 NCW, TEEEEIDRE, in consideration of the above premises and of the mutual benefits from the covenants herein set forth, the parties hereto do hereby agree as follows:

I - TERM ,

1.1 This Agreement shall become effective on date of interconnection of the systems as provided in Article II hereof and shall continue until ter-4 nation by either party by written notice given not less than 5 years in advance of the designated date of ter=ination, provided that no such temination may be effective prior to May 31, 1986.

It is conte = plated that the syste=s of the parties will be inter-connected as provided in Article II' hereof on or about May 31, 1976 and ,

both parties shall exercise due diligence to co=plete the required facilities by said date.

ARTICIE II INTERCONNECTION 2.1 lbint of Interconnection The point of interconnection hereunder shall be at the ter-4"a7 a of Greenwood's 115,000 volt transmission line on Company's terminal structure at Company's Greenwood substation as shown on the sketch marked Exhibit A attached hereto and made a part hereof.

Facilities Furnished by Comtany 225147 -

2.2 Company shall provide, own and maintain one "AX" Tower, three .

"C" Towers and one terminal structure at Company's Greenwood Substation as shown on the sketch marked E.v.hibit A attached hereto and made a part hereof. Company shall own and maintain a p5 KV 011 Circuit B _

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three Air Break Disconnect Switches, together with other related appurtenant equipnent. Company will provide auxiliary DC and AC power supply for the operation of said oil circuit breaker.

Company will install, or cause to be installed, necessary tele-metering facilities between the Greenwood interconnection and Co=pany's dispatchers. Greenwood shall thereafter pay Cc=pany =enthly all expenses including fixed charges incidental to such telemetering.

2.3 Facilities Furnished by Greenwood Greenwood shal' provide, own, operate and maintain a voltage re5ulating transfomer of not less than 20,000 UA capacity in the Greenwood Utilities Co==ission Substation for the purpose of reducing the voltage delivered from the Cc=pany's 115 W transmission system. Greenwood shall also provide, own operate and maintain a 115 W tieWe between the Greenwood  ;

1 Utilities Co==ission Substation and the point of, interconnection at Company's Greenwood Substation as heretofore described.

Greenwood shn provide, own, operate and maintain n synchronizing [

l equip =ent and instrumentation required for synchronizing and parallel operation e, of electric systems of the parties. The equip =ent shn11 be selected so as to meet, as riearly as practicable, the Perfomance Criteria of the !! orth American Power Syste=s Interconnection Co-4ttee Operatin;; Manual.

Greenwood shall pzovide, own, operate and maintain all fuses, circuit breakers, isolation switches and other electrical apparatus necessary for adequate protection of Greenwood's electric system. Greenwood's electrical facilities so installed shall be compatible with Co=pany's protective equipent.

2.4 Meters and location All energy delivered by either party to the other hereunder shall be measured by meters located in the Greenwood Utilities Commission Substation.

. 22514S .

90013247 l

., .s

-- I The meter equipment shall be capable of measuring demand on a 60-=inute

- interval and connected to record kilowatts, reactive kilovolt amperes and i

kilowatt hours at the low voltage side of the transfor=er provided by l 1

l Greenwood. The meters and associated metering facilities sha2.1 be owned ' i by the Company and it shall be the Company's responsibility to maintain i

them in good operating condition. Greenwood sh=71 provide space in its -

secondary bus for Co=pany's metering equipment and access to its substation by Company for operation, maintenance and inspection of its metering equip: cent. )

2.5 Interconnection with Other Systems .

Nothin5 contained in this contract sha71 restrict or 1 %it either j party in making other interconnecti:ns or agree =ents therefor with other systems or in its own use of its own lines.

Greerraced takes note that its interconnection and parallel opera-tion with a third party having a power source while maintai=ing its inter-connection with the Co=pany will result in p0ver flows between the Company L r

and the third party through Greenwood's system and possibly affect the flow c, of power between Company and other parties through other paths.

III - SERVICE SCEDUIES 31 Service Schedules The power to be supplied by each party to the other he:eunder, the ter=s and conditions of such supply and '.he charges to be paid therefor shall be in accordance with arrangements fro = time to time agreed upon between the parties. Such arrangements shall be set up in the form of Service Schedules, each of which, when signed by authorized officials of .

the parties hereto, chall become a part of thip Agreement for the tem hereof or for such shorter tems as may be provided in the Service Schedule.

90013248 .

225).A9

1

- i The following Service Schedules are agreed to initially and are

. made a part hereof:

Service Schedule A - Reserve Capacity [

Service Schedule 3 - Unintentional Energy I

Service Schelule C - Firm Capacity l l

Service Schedule D - Econcmy Energy Service shall be supplied and taken in accordance with the fore- 'l going Service Schedules or such other effective superseding Schedules as may be agreed upon by the parties and authorized by duly constituted regulatory authority.

3.2 Service Schedules to Have Precedence

- In event that any provisions of this Agreement are in conflict with those of existing or subsequent service schedules, the provisions of the service schedule shall be controlling.

IV - OPERATIIM COMETEE 4.1 ATmointment of Oteratine Representatives .

Each party will appoint one representative to act for it in matters pertaining to interconnected operation hereunder and such additional repre-sentatives as it may choose to appoint to serve in his absence or with respect to various detailed operating arrangements hereunder. Each party will inform the other of such appointments as made or changed from time to ti=e. The operating representatives shall have no authority to r.odify any of the pro-visions of this Agreement or of any Service Schedule hereunder, except as to those designated herein or in the respective service schedules as within 1

the scope of their responsibility.

4.2 Terocrarr Interchence Arranrre :ents 90013249 -

In cases whens, from time to time, it may be to the advantage of the parties that power be interchanged or sold upon a basis not provided for 225163 - a l

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j in any Service Schedule then in effect and in circumstances such that l arrangements must be made promptly in order to realis,e such advantage, ')

l or in cases of emergency or tenporary and unusual operating conditions, temporary arrangements for individual transactions may be made by the j operating representatives within the 14-4ts of the authority delegated j to them; provided, houver, that such arrangements shall be confirmed in writing and that no co=mitnent involved in any arrangement so =ade at any time by the operating representatives shall extend for a 2cnger period than 30 days unless approved by autbrized officers of both parties.

V - CONDITIONS OF OPERATION ,

)

5.1 Parallel ooeration It is intended that the electrica.1 systems of the parties shall normally be operated in parallel; however, either party may fro = time to tims interrupt the parallel operation if, in its opinion, it is required for the satisfactory operation of its system.

52 Reserve Recuirements This interconnection agreement is predicated on the assu::.stion

(, that each party will continue to provide reliable capt. city equal to its load plus adequate reserves. Compa:y plans and pzovides its reserves on a pooled basis with other Middle South System Companies and must install or pay for capacity adequate to provide for its own load plus a pro rata part of the pooled reserves. Under this Agreement Greewood will provide dependable capacity to serve its own lead plus zeserves at least equal to the percentage of reserves maintained by the Middle South System; provided, 'however, that Greenwood shall not be required to provide more capacity than 125 percent of its maximum clock. hourly load in the twelve (12) months ended with the current month. In event Greenwood elects not to construct or elects to defer construction of additional capacity it shall purchase from the Company or 'a third party sufficient capacity on an annual

~~

90013250 .

basis to bring its capacity at the time of its annual peak load up to the percentage maintained by the Company .in conjunction with the other Middle South System co=panies. Fim power purchased shan be deducted from the load in detemining the reserve requirement.

In November of each year the Operating Cc==ittee shall discuss load projections and reserve requirements for future years so that the necessary facilities to meet the requirements of both parties can be planned and provided in a timely annar. ,

i 1

I 53 city Controls Power Etow l

The parties recognize that under the arrangements herein con-templated Greenwood vill have sole control and detemination of the amounts of .d.lowatts and reactive kilovolt a: peres flowing over the interconnection j 1

p at ag given time. Greenwood vill furnish tie line bias control equi' ment l vhich will monitor the power and reactive flow at the point of interconnection and vill auto =atically adjust the governors of one or more of its generators in order to maintain the power flow as near as possible to agreed upon schedule between the Co=pany and Greenwood. Greenwood will e.lso be f- responsible for controlling the reactive flow by adjustment of its inter-k.

connecting voltage regulator. The equipent furnished by Greemtood for this purpose vd71 consist of conventional tie line control equip =ent norma 7 77 used for this purpose with the manufacturer as selected by Greenwood.

Such equipment shall be selected, installed and maintained to meet, so far as is practicable, the Performance Criteria as set forth in the North Americcn Power Systems Interconnection Cor ittee Operating Manual. The equipment' selected shall also be co=patible with telemetering equipment .

used by Company. ,

90013251 g

5.1+ Disturbances Insofar as practicable, Company and City shall protect, operate, and maintain their respective systems so as to avoid or minimize the likeli-bood of disturbances which might cause impaiment of service in the system of the other party. The parties recognize their responsibility to their customers with respect to continuity of service and their responsibility to each other with respect to reliability of bulk power supply facilities. It is expressly understood that, for the purpose of maintaining system reliability and integrity, Co=pany may install underfrequency relays on the interconnection contemplated herein.

5.5 Reactive Current Neither party shall be required to supply reactive current to the other, except in accordance with arrangements between the respective' load dispatchers. Nomally a party receiving power shall simultaneously supply reactive current to the party supp1hng power to the extent necessary to make practicable the transfer of the amount of power scheduled. However, the arrangements may provide for a party supplying power to simultaneously r supply reactive current to the party receiving power if no impaiment of service is thereby occasioned in the supplying party's system.

5.6 Spinning Reserves Insofar as practicable each system vm provide such amounts of spinning reserve capacity that neither the Company nor Greenwood syste=s vil.1 impose disproportionate load swings upon the other or make dispropor-tionate demands upon the other for assistance in meeting the nomal contingeni:ies of power system operation. .

The loss of Greenwood's largest unit.when fully loaded and the load swings caused on the Company's system by this loss shall not be deemed 90013252 2251.53

as imposing a disproportionate load sving upon the Co=pany's system. In

- such a circumstance Greenwood will make ever / effort to start up and operate other of its ct.pacity te make up for the loss of its largest unit as soon

^

as possible. Greenwood shall not, except under emergency conditions, operate any generator at more than 9% of its capacity and the tetal spinning reserve maintained by it shall be not less than 10f., of the capacity of the largest Greenwood unit in service at the time.

VI - METER READING AND SETTLEMENTS .

6.1 Reading Meter readings for billing purposes shall be made ty ComparJ- on the last day of each month unless such day shall fall on Saturday, Sunday or a legal holiday. In such case the reading shall be made on the prov% ate working day. l 6.2 Settlement Bills for amounts due by e5.ther party to the other shall be paid i

at the office of the party to whom payment is due within ten days after the  !

h date received.

In case any portion of any bill be in bona fide dispute, the v t:ndisputed amount shc.H be payable when due, and the re=ainder, if any, l

i upon determination shall be paid promptly after such detemination.

6.3 Meter Testing Metering equipment shall be tested on request by either party and in event at intervals not exceeding one year, with representatives of both parties notified and privileged to be present. Any meter found to be inaccurate shall be restored to a condition of accuracy, and if inaccuracy is one per cent (1%) or more, a correction shall be made in the billing i

from the date the meter beca'r.e inaccurate, if dete minable.

If the date 90013253 225154 __. i

v.

the meter became inaccurate is not deteminable, and if Greemmod has suitable interconnection metering, the parties hereto agree to use the readings of Greenwood's meters; provided, such meters are within the accuracy limits prescribed above.

VII - MISCIL'ANEOUS PROVISIONS l

7.1 Uncontrollable Forces Neither party shall be dee=ed to be in default or liable for failure of performance of any obligations henunder if such failure or perfomance be due to uncontrollable forces, the tem " uncontrollable forces" for the purposes hereof =eaning causes beyond the control of the party affected which it could not reasonably have been expected to forestall by exercise of due and, in its judgnent, practicable foresight and which by exercise of due and, in its judgnent, practicable diligence it shn'7 be unable to overco=e, including among others such causes as stom, flood, lightnin5, fire, accident damaging facilities or necessary outage of l h l facilities upon which perfomance is dependent, failure of manufacturers ;I II to =nke schedule deliveries of equipnent, i= pact of war, =obilization, act A of the public enerJ, sabotage, civil disturbance, labor disturbance, strike, v

and restraint or order of public authority; provided that nothing herein shall be construed to relieve a party frc= responsibility for failure of perfomance if such failure be due to causes arising out of its own negligence or to removable or remediable causes which it fails to remove or remedy with reasonable dispatch. 90013254 7.2 Restonsibility for loss or Damage Cc=pany shall save Greenwood unhamed from any loss or damage to 4 the public arising out of the operation of the Co=peny's tram: mission lines or equipnent and the tre.nsmission of electric power on its system for delivery hereunder unless such loss or damage was caused by the sole

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negligence of Greenwood, its agents, servants, or employees; provided, however, that Greescod shall in all cases be responsible for any liability under the provisions of any applicable workmen's compensation law for damage or injury to its own employees and will not seek any reimbursement therefor from Company. Conversely, Greenwood shall save Company unharmed from any I

loss or damage to the public arising out of the operation of its lines or equipnent and the transmission of electric power on its system for delivery hereunder, or the presence of employees of Greenwood upon the Co=pany's

. substation premises as hereinbefore provided for, u .less such loss or damage was caused by the sole negligence of Company, its agents, servants, or employees; provided however, that Co=pany shall in n'1 cases be responsible for any liability under the provisions of any applicable worhmen's compensa-tion law for damage or injury to its own employees and v111 not seek any reimbursement therefor from Greewood. Company shc11 be liable for all loss or desage to its own property, unless such loss or damage is caused l

by the sole negligence of Greenwood, and in that event Greenwood shall -

bear such loss or ds= age. Conversely, Greenwood shall be liable for all r,

loss or damage to its own property, unless such loss or damage is caused by the sole negligence of Company, and in that event Company shall bear such loss or damage.

73 Waivers Any waiver by a party of its rights with respect to a default under this A5 reement, or with respect to any other matter arising in connection with this Agreement, shall not be deemed a waiver with respect to any subsequent default or matter. ,

90013255 225150

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7.4 Regulatorv Armroval This Agreement is contingent upon the securing of any requisite regulatory appmvals and is subject to present and future valid laws, rules, regulations and orders of duly constituted regulatory autheiities having jurisdiction. Either party may seek authorization through regulatory procedure for such changes in this Agreement as may be required to make any pro-vision thereof just and reasonable.

75 If at any time during the operation of this Agreement, any pro-vision of this Agreement results in a condition that is deemed to be unjust or unfair by either party, the parties agree to attempt to negotiate such l l

provision before seeking, unilaterally, the authori ntion through regulatory procedure as provided in paragraph 7.4.

7.6 Notices Any notice, demand or request given in connection with this Agreement shall be deemed properly given if sent by registered = ail to the Manager, Greem.'t.od Utilities, P O Box 866, Greenwood, Mississippi 38930 in case of notice to Greenwood, or to the President, Mississippi Power & Light co=pany, P O Box 1640, Jachson, Mississippi 39205 in case of notice to ce=pany. The s.

designation of the person to be notified or the address of such person may be changed from time to time by written notice.

7.7 Successors and Assiens This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the respective parties hereto, but it shall not be assignable by either party to a successor in the operation of its properties without the written consent of the other party except upon fore- ,

closure of a mortgage or deed of trust.

90013256

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III WIZESS WEEOF, the parties hereto have executed this Agreement through their duly r.uthorized officers as of the date first above written.

GFII:TdOOD UTILI!ES COCESSIO:t

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Chairman, Greenwood Utilities Commission

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SERVICE SCIEULE A RESERVE CAPACITY GREDMOOD UTILITIES COFMISSION AND MISSISSIPPI POWER & LIGHT COMPAITY Section I - Purpose 10.10 It is the purpose of this Schedule to provide a basis for utiliz-ing the capacity in the system of each party for supplying Reserve Capacity to the other.

Section II - Character of Service and Metering 10.20 Service shall be delivered at r~-4nal 115,000 volts. Company will meteronthesecondarysideofGreenwood'ssubstationtransfomer,ar[dthe energy billed shall be the kwh registered at such secondary voltage.

Section III - Reserve Capacity  ;

10 30 Emergency Assistance: It is the intent of the parties that under i i I

emergency conditions either party is entitled to call upon the other for

{j emergency assistance. The party called upon shall furnish such service desired by the party in need to the fullest extent available. Service shall be provided if and when available from the party's own generation and from the generation of others to the extent it can do so without i= pairing service to its own customers, including other electric systems to whom it has fim commitments. -

10.31 Scheduled W ntenance: Either party shall be entitled to call upon the o'ther to provide power and energy during periods of scheduled maintenance. Such service shall be supplied by either party as required 90013259 225100 ,

E by the other up to the rating of Greenwood's largest generating unit subject,

. however, to the limitations of the interconnections between parties. Such service shall be scheduled in advance to fit maintenance schedules of the parties. Tb parties agree to cooperate in arranging their respective maintenance schedules for their mutual convenience.

10 32 Reserve Requirements: The supplying of reserve capacity is conditional upon the maintenance of dependable capacity by the parties as set forth in Section 5 2 " Reserve Requirements" of the Interconnection Agreement between the parties. Should either party fail to provide capacity  ;

in accordance with the provisions of said section, it shall forfeit the right to call upon the other for reserve capacity under this Schedule.

Section IV - Monthlv Billing 10.40 The capacity and energy supplied hereunder shall be billed ahd j paid for at the greater of:

a. 12.5 mills per kwh, or

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b. 115% of the cost incurred by seller directly attributable i to the supplying of such service. Bills shall be submitted monthly and shall include reasonable ite=ization of cost factors p

( .* readily available to seller.

Section V - Recrulatory Attroval 10 50 The effectiveness of this Schedule is contingent upon any requisite I regulatory approval. This Schedule is subject to orders of regalatory authority of competent jurisdiction. Either party may seek authori::ation through reg.rlatory procedures for such change in this Schedule as may be required to make any provisions thereof just and reasonable.

90013260 225161

- - _ . . . ... . . . .~.-

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Section VI - Term 10.60 This Schedule shall become effective cencurrently with the interconnection Agreement dated September 19 , 1975 as a part thereof and shall continue in force concurrently with said Agreement provided that either party may teminate this Schedule by written notice given to the other party not less than five (5) years in advance of the designated date of temination.

EXECLE D as of September 19 , 1975 GREEIMOCD UIH,ITIES CC:G'ISSICH k' '#

By ATTEST:

Chaimar., Greenwood Utilities Cc.=ission

.A'W;<llhy&y.',.] , _

Secretary J l.

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MISSISSI??' 2GiER A I,IGIII CCGAITY

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AITEST: By 1

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Secretary r (j

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4 SERVICE SCI 2DULE 3 UNINTENTIONAL ENERGY .

GREENWOOD UTILITIES CO.WESSION AND MISSISSIPPI POWER & LIGHT CCIGANY

. Section I - Purcose 20.10 It is the purpose of this Schedule to provide a basis for the payment for energy unintentionally delivered by one party to the other under parallel operation which it was not practical for the receiving party te repay in kind.

Section II - Character of Service and Meterine 20.20 Service shall be delivered at nominal '.15,000 volts. Ce=pany l

vill meter on the secondary side of. Greenwood's substation transformer, and l l

l the energy billed shall be the kwh registered at such secondary voltage. j 1

Section III - Unintentional Ener.Tr Delive: r and Settlenent 20 30 Deliveries: It is recognized by both parties that there vill be r,

s unintentional interchange of energy between the syste:ns of the parties while said systems are interconnected even thou6h no purchases or sales 1

of energy are scheduled or intended to be made by either party. ? bis unintentional interchange of energy shall be accounted for by periods and shall be returned in kind; i.e., unintentional deliveries by one party i I

to the other during On Peak hours shall be returned by the receiving party during similar On Peak hours, and unintentional deliveries durins Off Pech hours shall be returned by the receiving party durin6 s%4lar Off Peak hours. '

Similar hours shall include like fuel supply conditions. As far as practicabic, l 90013262 225163 .

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- account balances of unintentional interchenge of energ shall be maintained as'near zero as possible on a daily basis. Energy balances, however, may be carried forward from one day to the next and, to the extent hereinafter provided, from one month to the next.

20 31 Scttlements: At the end of each calendar month, the account balance of unintentional energy received by Greenwood from Company in excess of 10,000 kilowatt-hours shall be classified as intentional and paid for by Greenwood at the rate provided for Reserve Capacity. At the end of each calendar month, any account balance of unintentional energy delivered by Greenwood to Cc=pany in excess of 10,000 V4'owatt-hours shall be classified as intentional deliveries by Greenwood to Company and shall be paid for by

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Company to Greenwood at five = ills ($0.C05) per kilowatt-hour. Jf the balance of unintentional energy owed by either party to the other is less than 10,000 k4lowatt-hours at the end of any =onth, such balance sh be carried into the following month as e.n obligation to repay in kind.

20.32 Definitions: l r Off Peat Hours: 9:01 FM to 7:00 AM CST five week days s-and all day on Saturdays, Sundays, New  ;

I Years, Independence Day, Labor Day, Thanksgiving and Christmas On Peak Hours: Other than Off Peak Hours.

Section IV - Remilatory Aperoval l 20.40 The effectiveness of this Schedule is contingent upon any requisite regulatory approval. This Schedule is subject to orders of regulatory authority .

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  • of competent jurisdiction. Either party may seek authorisation through regulatory procedures for such change in this Schedule as may be required i

to make any provision thereof just and reasonable. 90013263 225164

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  • Section V - Te rm 20.50 This Schedule sbal' become effective concurrently with the interconnection Agreement dated September 19 , 1975 as a part

' thereof and shall continue in force concurrently with said Agreement provided that either party =ay terminate this Schedule by written notice given to the other party not less than five (5) years in advance of the designated date of temination.

EXECUIED as of September 19 , 1975

- GREE. WCCD UIILITIES COE CSSIO:7 i ,

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Chairman, Greem* cod Util.ities Co-4ssion ATTEST:

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N Secretary J MISSISSIPPI WER GliT COMPA!i?

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President ATTEST:

90013264 CW-Ade?

Secretary

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s o SEMICE SCIEDULE C FIPJ4 CAPACITY GREEWOOD UTILITIES Com1ISSION AD MISSISSIPPI POWER & LIGHT COMPMIY Section I - Purcose 30.10 It is the purpose of this Schedule to provide a basis for the sale of fim capacity by Company to Greenwood on a supplemental basis in event such service is required by Greenwood to augnent its capacity to meet )

i the cape. city requirements set forth in Section 5.2 of the Interconnection Agreement between the parties or for other sales of fim power as the ,

parties may agree.

Section II - Character of Service and Metering 30.20 Serv'ce shall be delivered at nominal 115,000 volts. Cc=pany will meter on the secondary side of Greenwood's substatien tra.nsformer, and the energy billed shall be the hwh registered at such secondary voltage.

{ Section III - Contract Quantity and Billing j 30 30 The quantity of power Greenwood sha71 purchase (" Contract Di") in any month shall be detemined as "P" in the following equation whenever "P" is a positive quantity:

C P= L3 Where P= W to be purchased.

L= Greenwood's highest hourly system load experienced in the 12 months ending with current month erpressed in W ,

C= Greenwood's dependable generating capacity in Di

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R = Ma*mm Hourly load

  • on Middle Sou ,h System 5 ..

The value of R shall not exceed 1.25

  • Maxi 2num clock hourly load in 12 months ended with the current month.

" Capacity" shall mean the total capacity of all operable units owned or leased by Greenwooc} or the Middle South System, as the case may be.

The parties will promptly inform each other of changes .in load and capacity that may affect the Contract W hereunder.

NOTE: Firm purchases from a third party will be deducted from Icad and not considered an addition to' Capacity.

30.31 Energy: The Purchasing Party shall be entitled to take energy under this schedule up to the Contract Ed at any and an hours. .

1 30.32 Monthly B4714ng:

$2 75 per Ed of Contract 5, plus l Electric energy delivered in any month sha'1 be billed at 115% of the =enthly cost of power incremental to Company's own load requirements and int *astate co-4 t=ents, adjusted for transmission losses on the basis of the delivered efficiency of Company's transmission system for the prior calendar year.

." " Cost" as used herein, shan include but not be limited

s.
  • to fue1 costs and/or purchased power costs. In the case of emergency energy, such costs shall be anocated to the parties on a pro rata basis.

Rilling under this Schedule shall be for a period of no less than 12 months.

The Contract W to be billed in any month hereunder shall be the greater of (a) the Contract Ed so determined for the euxrent conth or (b) the highest Contract N so established during the preceding eleven months.

90013266 -

Section IV - Re:rulatory Arproval 30.104 The effectiveness of this Schedule is contingent upon any requisite regulatory approva1. This Schedule is subject to orders of regulatory authority of competent jurisdiction. Either party may seek autho*i.;atic1w 09nina _ . _

4 5 .

through regulatory ~ procedures for such chan5e in this Schedule as =ay be a required to make any provision thereof just and reasonable.

Section V - Term 30.50 This Schedule shall bece=e effective concurrently with the Inter-connection Agreement dated September 19 , 1975 as a part thereof and shall continue in force concurrently with. said Agree =ent provided that either party may teminate this Schedule by written notice given to the other party not less than five (5) years in advance of the designated date of temination.

s EECUIID AS of September 19 , 1975.

GEEIT4 COD U"'ILITIES COMMISSION

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ATTEST: By ' -

Chai m an, Greenwood Utilities Co mission A%?'Ai[G Secretary )

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MISSISSI??I PC'vr LIGHT CCMPANY

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ATTEST: By Presiden; v' [ / ~

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SERVICE SCHEDLE D ECONOMY EHERGY GREEliWOOD UTILITIES COMMISSION M i MISSISSIPPI POWER & LIGHT C0!GANY j 1

Section I - Purcose 40.10 It is the purpose of this Schedule to provide a basis for the sale and purchase of economy energy between the parties as they may mutually agree from time to tine.

Section II - Character of Service and Metering 40.20 Service shall be delivered at nominal 115,000 volts. Co=pany will meter on the low voltage side of Greenwood's substation transfomer, and the energy billed shall be the kwh registered at such voltage.

Section III - Economv Enerev l

40 30 Economy energy shall mean energy which the supplying party can p produce and deliver to the receiving party at an incremental cost which is k.

lower than the incremental cost the receiving party would otherwise incur by generating or obtairdn5 equivalent energy from other available sources.

Each party shall detemine when economy energy is available, and it may, 1 1 '

but sha2.1 not be obligated to offer energy to the other party. When economy energy is available each party will, upon request of the other, furnish information with respect to: I

a. The cost of energy it can make available, and
b. ,The value of economy enerEy it,can utilize. 90013268' l

l 22516D .

l.

4 40 31 A party is entitled to receive econo =y energy hereunder only to

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the extent that such party has alternative dependable capacity, including adequate reserves, and currently available that would otherwise be used.

40 32 Upon request of one party the other party may supply econo =y f energy to the requesting party up to the capacity of the power source or fuel available for such supply subject to the judg=ent of the supplying party that the supply of such energy will not impair or jeopardize service to its own customers, including other electric systems, to whom it has equal

^

commitments.

Section IV - Billing and Settlement 40.40 Economy energy shall be billed at a rate equal to one-half of the sum of

a. the costs incurr.ed by the supplying party for the economy energy delivered, and
b. the value of the energy to the receiving party.

The cost of economy energy shall mean the incremental e:Gence as  ;

detemined by the supplying party to be the expense incurred by it in supplying x

ecoco=y energy. The incre= ental expense shall also reflect costs, if any, l

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I of placing units in operation and the incremental increase in transmission expense attributable to the transaction. The cost to the supplying party shall be that stated by its load dispatcher prior to co=nencement of delivery l l

of economy energy and shall be subject to change on an hourly basis by the l dispatcher prior to any hour. Interchange settlements shall be computed on the basis of clock hour intervals. j The value of economy energy sha11 mean the incremental expense as determined by the receiving party at date incurred if the economy enerC7 90013269. ,l

. _ . . . _ . . oo. m o  !!:

  • _ were not to be received. The incremental expense so detemined shall reflect both the incremental expense of generating or obtaining energy from any other source, including the cost, if any, of placing units in operation and the incremental increase or decrease in system transmission expense attributable to the transaction.

From time to time the operating representatives of the parties r

shall review the methods and be.ses used by each part to detemine such costs and values.

Each party shall be the sole judge of the capacity and fuel available for Econo =y Energ supplied from its system and all conmitments to other system which may have priority of economy energ supplied hereunder.

40.41 Insofar as practicable economy energy transactions shall be scheduled between load dispatchers not less than one day in advance.

Section V - Regulatory Atproval 40.50 The effectiveness of this Schedule is contingent upon any requisite regulatory approval. This Schedule is subject to orders of regulatory m authority of competent jurisdiction. Either party may seek authorization

( ,- -

through regulatory procedures for such change in this Schedule as may be required to make any provision thereof just and reasonable.

Section VI - Ter=

40.60 This Schedule shall become effective concurrently with the inter-connection agreement dated September 19 , 1975 as a part thereof and shall continue in force concurrently with said Agreement provided that either party may teminate this Schedule by written 90013270 225171 ..

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notice given to the other party not less than five (5) years in advance of the designated date of te =ination.

4

  • EXECUIED as of September 19 , 1975, GEEI"JOOD UTILITIES CO)pIISSION

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l l ATEST: By i s rT' Chairmani Greenwood Utilities Cocr.ission r

s$ $/ i

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Secretary MISSISSIPPI TdER LIGHT COMPldIY

, !P /ll ATIEST: By *

/s LIV-W President

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Secretary /~ / a,/

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90013271 5

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INTERCOUECTION AGEETT BY AND ET.E'N

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. . CITY OF CLARKSDALE .

ARD .

MISSISSIPPI PCWZR & LIE.? COMPANY .

This Agreement made this /3 M dayofg,5,b/uo.,,

O.1 ,1976

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by and between the CITY CF CLARKSDALE, MISSISSIPPI (hereinafter called

_ " City") and MISSISSIPPI PCEER & LIG5T COMPANT (hereinafter called "Co=pany"), l WIINESSITH:

0.2 MezAS, the Cc=pany and City each own and operate an electric system supplying electric service to the public; and WEREAS, Cospany is interconnected directly and/or indi.iectly' 03 '

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, and coordinates its po' w er and encripr supp1ies with its corporate affiliates -

g Arkansas Power & Li5ht Company, Arkansas-Missouri Power Company, Iouisiana (h Tbwer & Light Company, and New Orleans Public Service, Inc., the electrical ,

'- - t facilities of said ce=panies together with those of Company being herein- le i

after referred to composite 2y as the " Middle South System"; and [

t 0.4. ,

WERHAS,. the Middle South System is interconnected and operates

  • in parallel with many other utilities within and without the states of Mississippi, Arkansas, Iouisiana and Missouri; and 05 WEEAS, the public interest requires that each party sha1' make

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aIJ. provisions necessary to reasonably assure the continuous availability '

i r l of electricity in sufficient c=ount to supply all nomal requifements of l Customers; and 90013272 ,

. 995001

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I 0.6 . WEEAS, City and'the Company desire to enter into a comprehensive interconnection agreement for the establishment of an interconnectipn and securing of coordination'between the City and Company systems, as aforesaid in paragraph'O.4; O.7. . NOW, TEEF0E, in consideration of the above premises and of the mutual benefits from the covenants herein set forth, the parties hereto do

'hereby agree as follows: ,

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1.1 Tbis Agreement shall become effective on the date of interconnection of the syste=s as provided in Article II hereof and shall continue tmtil termination by either party by written notice given not less than 5 years in advance of the designated date of termination, provided that no such, .

termination may be effective p'rior to December 1,1986. .

It is conte = plated that the systems of the parties will be inter-

. connected as provided in Article II hereof on or about December 1,1976 and both parties shall exercise due diligence to complete the required

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i facilities by said date. .

ARTICLE II INTERCONNECTION 2.1 Point of Interconnection The point of interconnection hereunder shall be at the terminals of City's 3 5,000 volt transmission line on Company's terminal structure at Company's Clarksdale substation as shown on the sketch marked Exhibit A attached hereto and made a part hereof. ,

90013273 E , ,

225022

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4 2.2 Facilities Furnished by Comeany Company shall provide, own and maintain two "C" towers and two "AX" to.wers, one of which shall serve as the teminal structure at the point of interconnection in Company's Clarksdale Substation as shown on the sketch marked Exhibit A attached hereto and made a part he:. eof.

Company shall own and =aintain a 115 KV Oil Circuit Breaker and three air break disconnect switches, together with other related apenant equipment.

Company will provide auxiliary DC and AC power supply for the operation of said oil circuit breaker.

Company will install, or cause to be installed, necessary tele-metering facilities between the Clarksdale interconnection and Compa=y's dispatchers. Clarksdale sha" thereafter pay Company =onthly all erpenses

-including fixed charges incidental to such telemetering and supervisory a

control. ,

23 Facilities Furnished by City -

City shall provide,. own, operate and maintain a voltage regulating transfomer of not less than 20,000 KVA capacity in the City's substation r for the purpose of reducing the voltage delivered from the Co=pany's 115 KV h .

transmission system. City shall also provide, own, operate and maintain a 115 KV tieline between City's Substation and the point of interconnection in Compa=y's Clarksdale substation as heretofore described.

. City shall provide, own, operate and maintain an synchronizing j equipment and instrumentation required for synchronizing and parallel operation of electric systems of the parties. The equipment sha~11 be selected so as to meet, as nearly as practicable, the Perfomance Criteria .

of the North American Power Systems Interconnection Comnittee Operating

"- 225023 90013274_  ;

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City shall provide, own, operate and maintain an fuses, circuit

- breakers, isolation switches and other electrical apparatus necessary for adequate protection of City's electric system. Cit;r's electrical facilities so installed shall be compatible with Company's protective equipment.

2.4 Meters and location .

All energy delivered by either party to the other hereunder shan l be measured by meters located in Company's Clarksdale Substation. The meter equipment shan be capable of measuring demand on a 60-minute interval and connected to record kilowatts, reactive kilovolt amperes and kilowatt bours.

The meters and asbociated metering facilities shan be owned by the Company and it sha15. be the Company's responsibility to maintain them in good operating condition.

Metering will be at H 5,000 volts. The metering equipment installed will ce=pensate for transfomer losses or in lieu thereof an anowance of 1%

win be made in the measured quantities us~ed for billig.

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. 25 Interconnection with Other Syste=s ,

  • Nothing contained in this contract shan restrict or 14-4t either party in making other interconnections or agreements therefor with-other

. syste=s or in its own use of its own lines. -

Clarksdale takes note that its interconnection and parallel opera -

tion with a third party having a power source while maintaining its inter-connection with the Co. pany will result in power flows between the Company and the third party through Clarksdale's system and possibly affect the i flow of power between Company and other part'ies through other paths.

III - SERVICE SCHEDULES 90013275 .

31 Service Schedules .

The power to be supplied by each party to the other hereunder, the tems and conditions of such supply and the charges to be paid therefor ,

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l SERVICE SCHEDULE RESERVE CAPACITY 1

- . CITY OF CLARFSDALE l j

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MISSISSIPPI IOWER & LIGHT COMPAITY .

.Section I - Purpose . .

10.10. . It is thi purpose of this Schedule to. provide a basis for utiliz- l 5.ng the capacity in the system of each party for supplying Reserve Capacity to the other.

' Section II - Character of Service and Meterin:;

10.20 Service shall be delivered and metered at nominal 115,000 volts.

The metering equip =ent installed will cc:pensate for transformer losses or in lieu thereof an allowance of 1% w'11 be made in the measured quanti $ies

.used for b4lling.

.Section III - Reserve Catacity .,

10 30 Emergency Assistance: $tisthe'intentofthepartiesthatunder ,

emergency conditions either party is. entitled to call upon the other for s emergency assistance. The parti called upon shn furnish such service desired by the party in ased to the fullest extent available. Service shall be provided if and,when available from the party's own generation and from the generation of others to the extent it can do so without impairing service to its own customer's, including other electric systems to whom it has fim connitments. - .

10 31 Scheduled Maintenance: Either party shall be entitl'ed to call ,

.upon the other to provide power and encrcy during periods of scheduled maintenance. Such scryice shall be supplied by either party as required

. '90013288 p p g a ., ,

by.the other up to the rating of City's largest generating unit subject, however, to the limitations of the interconnections between parties. Such service, shall be scheduled in advance to fit maintenance schedules of the

. parties. The partjes agree to cooperate in arranging their respective maintenance schedules for their mutual convenic~nce.

10.32 Reserve Requirements: The supplying of reserve capacity is conditional upon the maintenance of dependable capacity by the parties as set forth in Section 5 2 " Reserve Requirement.s" of the Interconnection

. Agreement between the parties. Should either party fail to provide capacity in accordance with the provisions of said sec' tion, it shall forfeit the right to call upon the other for reserve capacity under this Schedule.

Section IV - Monthly Billing

'. 10.40 The capacity and energy supplied hereunder shall be billed and paid for at the greater of:

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a. 12.5 mills per kwh, or ,

b.- 115% of the cost incurred by seller directly attribu' table ,

/~ to the supplying of such service. Bills shall be sub:nitted, s .)

monthly and shall include reasonable itemi stion of cost factors readily available to seller.

Section V - Rectilatory Antroval 10.50 The effectiveness of this Schedule is contingent upon any requisite regulatory approval. This Schedule is subject to oniers of regulatory authority of competent jurisdiction. Either party may neck authorisation ,

through regulatory procedures for such change in this Schedule as may be required to make any provisions thereof just and reasonabic.

D** 8' T- 90013289 os . A '2t ~'1'M " .~ .

. 225038

Section VI - Term -

10.60 .This Schedule shn17 become effective.cencurrently vith'the interconnection' Agree =entdatedM76,.... /3 ' ,1976 as a part .

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thereof and shM1 continue in force concurrently with said A reement 5

provided that either party may terminate this Schedule by written notice .

given 'to thr other party not less than five (5) year'sin advance of the designated ud te of temination. l EXECUIZD as of )d, w- Lt , 1976 0

CITY OF ' LA?J3 DALE ATTEST: 'By l LS 'I $ / -

'M Wor .

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I City Clerk ,

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.~t NSSISSI?$L$PGEM& y LIGHT CQGM1Y ,

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ATTEST: By J l

.Presidenz ~ ~

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Secretag ' ' i 90013290

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225039

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'SEEVICE SCEEDL1LD D UNINISHTICHAL DERGY -

CITY OF CLARKSDALE ..

- AND '

MISSISSIPPI PONER & LIGHT CO'GANY .

' Sectio'n'I - Puroose

. 20b0 It is the purpose,of this'Sc'redule to provide a basis for the pay = cut for energy urIntentionally delivered by one pazty to the other -

under pcrallel operation 'which it was not practical for the receiving party to repay in kind. -

Section II - Character of Se'r.* ice end Metering 20.20 Service shall be delivered and metered at nominal 115; COO volts. r

  • l The metering equipment installed v411 compensate for transformer losses or ,

in lieu thereof an allowance of 1gF vill be made in the measured quantities I i

used for billing.

  • Section III - Unintentional Enerrty Delivery and Settlement

(, 20 30 Deliveries: ' t is recognized by both parties that there vill be I

unintentional interchange 'of energy between the systems of the parties , ,

while said systems are interconnected even though no purchases or sales 9

of ener2y are scheduled or intended to be made by either party. This l l

unintentional interchange of energy shall be accounted for by periods and shall be returned in hind; i.e., unintentional deliveries by one pcrty to the other during On Peak hours shall be returned by thc receiving party .

during similar On Peak hours, and unintentional deliverics during Off Peak bours shall be returned by the receiving party during similar Off Peak hours.

'Similar houis sh"11 include like fuel supply conditions. As.far as practiccble, 9~ 0,0_1.,3 2 .9 1 '_ _ ._.

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account balances of unintentional interchange of enorgy shall be maintained as near' cero as possible on a daily basis. Energy balances, however, may be carried forward from one day to the next and, to the extent hereinafter provided, from one r.onth to the next. .

20.31 Settlements: At the end of each calendar month, the account balan'c e of unintentional energy received by City from Company in excess of 10,000 kilowatt-hours shad be classified as intentional and paid for At the end of each by City at the rate provided for Reserve Capacity.

calendar month, any account balance 6f unintentional energy delivered by

  • City to Company in excess of 10 3 000 kilowatt-hours 'shall be classified as intentional deliveries by City'to Company and sha71 be paid for by If the Company to City at five H'1s($0.005) per kiiowatt-hour..

' balance of unintentionc1 energy owed by either party 'to the other is less than 10,000-kilowatt-hours at the end of any month, such balance sha17 be carried into the following =cnth. as an ob2.igation to repay in kind.

1 20.32 Definitions: ,

9:01 FM to 7:00 AM CST five week days l

- Off Peak Hour.s:

- and all day on~ Saturdays, Sundays, New Years, Independence Day, Labor Day,

  • Thanksgiving and Christmas

.  : On Peak Hours: Other' than Off Peck Ecurs.

- Section IV - Rermlatorv' Anuroval 90013292 .

20.h0 The effectiveness of this Schedule is contingent upon any requisite reg'ulatory approval.

This Schedule is subject to orders of regulatory authority

'of competent jurisdiction. Either party may seek authorisation through regulatory procedures for such change in this Schedule as Jnay be required 1 j

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O Section V - Term 20 50 This Schedule shall became effective concurrently with the interconne.ction Agreement dated d/, o t. /.:5 __,1976 as a part c-thereof and shall continue in force concurrently with said A5reement s

provided that either party may terminate this Schedule by writte.n notice given to the other party not less than five (5) years .in advance of the designated date of termination.

EXECUTED as of dw c,- 13 , 1976.

d -

CITI 0F ' ISDALE ldTEST: By 24..[ 7 2W O Mayor l- ); (1U -

City Clerk

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Pre!!id'ent' '

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Secretary / <

90013293 22504.9 ..

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. SI:RVICE SCIEDULE C FIRM CAPACITY .

CITY OF CLARKSDALE -

MG MISSISSIPPI PCWER & LIGHT COMPMTY Section I - Purnose 30.10 It is the purpose of this Schedule to provide a basis for the scle of firm capacity 'by Company to City on a supplemental basis in event such service is required by City to aug=ent ,its capacity to meet the capacity requirenents set forth in Section 5 2 of the Interconnection Agreement between the parties or for other sales of firm power as the parties may agree. _

Section II - Character of Service .and Metering .

30.20 Service 'shan be delivered and metered at nominal 115,000 volts.

The metering equipnent instn' led will compensate for transformer losses or in lieu thereof an anovance of 1% vill be made in the measured quantities

,1 used for bd1'4ng.

'" Section III - Contract Quantity and Billing 30 30 The quantity of power City sha11 purchase (" Contract 97") in any month shall be determined as "P" in the following equation whenever "P" I

is a positive quantity:

0 P= Lg i

Where P= 'XW to be purchased. 90013294 l L= City's highest hourly system load experienced .in the 12 months ending with current month expressed in El C= city's dependable generating capability in mi

, cynea,n 1

1 R = Maximum 11oury Icad* on Middle South System 1

The value of R shall not exceed 1.25

  • Maximum clock hourly load in 12 months ended with the l l

current conth.

" Capacity" shall menn the tot'al capacity of a11' operable units owned or leased by Clarksdale or the Middic South System, as the case may be.

The parties vi11'promptly inform each other of changes in load and capacity that may affect the Contract Ei hereunder. .

NOTE: Firm purchases from a third party will be deducted from Icad and not '

considered an addition to Capacity.

, 1 30.31 Energy: The Parebhsing Party shall be entitled to take energy i

under this schedule up to the Contract E7 at any and an hours.

l 30 32 Monthly Billing:

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$2 75 par D7 of Contract E1, plus , , 'J

._ $ o Electric energy delivered in any =onth shall be billed at 115% of the monthly cost of power incremental to Co=pany's own load requirements and intrastate cocnitments, adjusted for i

transmission losses on the basis of the delivered efficiency 6 f

of Company's transmission system for the prior calendar year.

" Cost" as used herein, char, include but not be 14"4ted -

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to fuel costs and/or purchate.d power costs. In the case of emergenck energy, such costs shall be allocated to the parties

- on a pro rata' basis.- .

.m,14ng under this Schedule shall be for a period of no less than 12 months.

The Contract Ni to be b47'ed in any =onth herermder shall be the greater of (a) the Contract' Ef so detczmined for the current =onth or (b) the highest Contract M1 so established dvging the preceding eleven months. .

9-Section rv - necu1 a m u,rova 90013295- l 30.40 The effectiveness of this Schedule is contingent upon any requisito regulatory approval. This Schedule is subject to oniers of regulatory

. smt.bnv4 tv ne en motent inv.4 nrii cfA nn.. . Either_ nrtrty may scck authorication '.

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through regulatory procedures for such change' in this Schedule as may be required to make any provision thereof just and reasonable,.

Section V - Tom 1

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30.50

'This Schedule shall become effective concurrently with the Inter- 3

~ 42. n.. /3 ,1976 connection Agreement dated _ continue in f'rorce concurrentl as a part thereof and sha17 Agrecment provided that eithier party may terminate this Schedule by

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' written notice given to the other party not less than five (5) years in

- advance of the designated date.of temination. ,

1 as., /3 __, 1976.

D:ECUED AS of U .

CITY OF CLARESDALE ,

By ,l I A.<. 6 l- $4-ATTEST: .

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~ Mayor

c. l' ! *GVJ City C1crh q; .

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J IGIT COMPANY

( MISSISSIPP P3 &f1

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ATTEST: C, By b 43 "*A _

Pre $ident JW Secretary .

90013296 3 .

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SERVICE SCEDULE D d EC0!;0# EI;ERGY CITY OF CLAR13 DALE .* .

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MISSISSIPPI POER & LIGIIT CO GRIY

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,. Section I - Purnose 40.10 It is the purpose of this Schedule to provide a basis for the sale and purchase of economy energy between the pa,rties as they may mutually agree from time to time.

Section II - Character of Service and Metering 40.20 Service shall be delivered and metered at no=inal il5,000 volts.

The metering equipment installed w4'1 compensate for transformer losses or in lieu thereof an allowance of 1% win be,made in the measured quantities

  • used for bining. .

Section III - Economy Enercy

,. 40 30 Economy energy shall mean energy which the supplying party can O .

produce and deliver to the receiving party at an incremental cost which is

- lower than the incr'emental cost the receiving party would otherttise ireur by generating or obtaining equivalent energy from other available sources.

Each party shall deter =ine when economy energy is availablei, an'd it may',

but shall not be obligated to offer en5rgy to the other party. When

econo =y energy is availabic each party v417, upon request of the other, .

furnish information with respect to:

a. The cost of ercry it can make availabic, and
b. The value of economy energy it can utilice. 90013297-

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-40 31 A party.is entitled to receive economy energy hereunder only to '

the extent that such party has alternative dependable capacity, including adequate reserves, and currently available that would otherwise be used.

40,32 Upon request of one party the other party may supply economy' .

energy to,the requesting party up to the capacity of the power source or fnel available for such supply subj.ect to the judgment of the supplying party that.the supply of such energy will not impair or, jeopardize service to its own customers, including other electric systems, to whom it has equal .

. comnitments.

Section IV - Billine and Settlement Economy energy shn11 be billed at a rate equal to one-half of the 40.40 sum of . .

a. the costs incurred by the supplying party for the ,
  • ' economy energy delivered, and , '

. b. the value of the energy to the receiving party.  !

  • The cost of economy energy shall mean the. incremental expense as n
  1. determined by the supplying party to'be the expense incurred by it in supplying economy energy. The incremental expense shall also reflect costs, if any, of placing units in operation and the incremental increase in trammission The cost to the supplying party expense attributable to the transaction. . .

shall be that stated by its load dispatcher prior to commencement of delivery the of economy energy and shall be subject to change on an hour 2y basis 17 Interchange settlements shall be computed on dispatcher prior to any hour. .

the basis of clock hour intervals.

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- The value of economy energy shall mean the incremen detemined'by the receiving party at date' incurred if the economy energy 225047

4. ,

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' vere not to be received. The incremental expense so determined shall reflect l both the incremental expense of generating or obtaining energy from any other source, including the cost, if any, of placing units in operation c.nd the incremental increase or de' crease in system transmission expense attributable 1

to the transaction. 1 1

From time to t.'me the operating representatives of the parties shall review the methods cnd bases used by each party to determine such costs and.vclues. -

Each party shal2. be the sole judge of the capacity and fuel available for Economy Energy supplied from its system and all commitments to other system which may have priority of economy enery supplied hereunder.

40.41 Insofar as practicable economy energy transactions shall be scheduled between load dispatchers not less than one day in advance. ,

Section V - Reculaton- Moroval 40 50 The effectiveness of this Schedule is contingent upon any requisite regulatory approval. This Schedule is subject to orders of regulatory (

authority of competent jurisdiction. Either party may seek authorication r

s. through regulatory procedures for such change in this Schedule as may be required to make any provision therecf just and reasonable.

, Section VI - Term 40.60 This Sc'hedule shall become effective concurrently with the inter-connection agreement dated Mdm .a z <, /3 ,1976 r '

as a part thereof and shall continue in force concurrently with said Agreement provided that either party may teminate this Schedule by written 90013299 i NOR Oggggg[ '

I 225048 l

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notice given to the other party not less than five (5) years in advance of the designated date of termination. .

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EXECtTIED as of 8A~ l , 1976.

O CITY OF CLARI:SDALE Armsx: my~ '/Mayor,i tiod 1/ /8 6 -,

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City'Cltfrk

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A nEsr:

~ President v a*'*

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Secretary / j

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. 90013500 I

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2250dn

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