ML20137X334

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Forwards Update of Reg Guide 9.3 Info,Per 851218 Request
ML20137X334
Person / Time
Site: Vogtle  Southern Nuclear icon.png
Issue date: 02/27/1986
From: Bailey J
GEORGIA POWER CO.
To: Youngblood B
Office of Nuclear Reactor Regulation
References
RTR-REGGD-09.003, RTR-REGGD-9.003 GN-820, NUDOCS 8603060095
Download: ML20137X334 (1)


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Georgia Pw3rCor pony Prc,ect MGsgemeri' Ro:ts 2. Joa 29%

Waynesboro, Ceo<gia 3083C TW Thcre 404 72 5 8114

.04 634-5X 1 Soetterr. Cc ,pa' y 0,ervices, Iric. 4 Post Off,cq 8)x T25 surwam. ea ssm2 Te'epncr'e 205 87M011 Vogtle Proj.ect F.3brua ry 2, 1956 Director of hac? ear Reactor Regulatten File: X7BC35 Attention: 11T. 3. J. Young 51ood Iq: GN--020 PNR F:ojtet birecteraze #4 Division of MTP. Licensing A

b. S. liuclear Regulatory Comnisaion Wcshington, D.C. 20%55 NRC DOCKET NUMBERS 50-424 AND 50-425 CCN$TRUCTION PERMIT YJMBERS CFPR-108 AND CPPR-101 VOGTLE EI ECTRIC GENERATING PLANT - UNII5 .1 AND 2 SE*'. CONF 1FMiTORY ITEM 5: GRTNDWATER MONITORING EFGUIATORY GUIDE 9.3 INFOPMATION Daar'h. Den".on:

Enclosed is the updata of Reg slatorr Guide 9.3 inf orriatirn conce rning Plant Vogtle requeste<1 by Mr Jesse I . Fu:cises in hin Dece nber 13, 1965 letter to Mr. Donall 0. Foster, this iafermatiac was hard ielf vered te Mr. tiillia'a Lambe cf tne p1mning and t ro tram analysis staff on Febr tarf 24, 1996.

Shou 11 you have any questions, please ad:rf se.

~1ncerely.

b. (y J. A. Bailey Pro j ?ct Licensing Manger JAB!r m Fnc!csure xc: 't. E. Conway G. Bockhold, Jr. .

E. A. Thomas T. Johnson J . 2. Jof ner, Esqui re D. 9. Teper (w/ > enclouure)

E . W. Churchf 11, Esqui 2 W. C. narcsey

'! . A. M ille r ( 2', L. T. r;ucwa B. J >aes (w/o ecciosure) (

Vegt"e Project File 0379V 9603060C95 060227 }

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TROUTMAN, SANDERS,tocKEJtMAN & ASHMo.7E ATTo R NCYS AT LAW cANDLra es v e 60 s N o ATLANTA.tiCO*G4A 30W) ,

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  1. COC AT P. KCWARDS.JP.

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7ebruary 24, 1986

, H71TD DELIVEPID William Lambe

, Planning and Program Analysis Staff Office of Nc61 ear Reacter Regulation United States Regulatory Corztission 7920 Norfolk Avenue Roon P-420 Bethesda, Marylarl! 2GE14 Re: Vogtle . Electric Generating Plant Unit 1 -- Decket No, i

50-424A g i Regulatory Guide 9.3 Information l

Dear Mr. Lambe:

Eno10 sed is the update of Regulatory Guide 9.3 information j concerning Plant Vogtle requested by Mr. Jesse .L. Funches in his

' December IS,1986 letter to Mr. Dorald O. Foster. Please do

. not hesitate to call r.c if you have any questions.

Very truly yours, Ecbert P. IdWards, Jr.

P.PE, Jr. /fdC l Enclosures i ec: J. L. Funches, Director (

Planning and Program Sna'ysis Staff Cf fice of Nuclear Reactor Regulation (without enclosares)

D. O. Foster (without enclosures')

6/ James A. Bailey (with enclosurer) a l

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5 l NRC Docket Nos. 30-424A, and 425 Vogtle Electric Generating ?laat Units'I and 2 i Ownsts:

Georgie Power Company, Oglethorpe Power' Corporation (an i Electric Membership' Generation and Transmission Corpora-tion), Municipal Electric Authority of Georgia, and City of Dalton, Georgia ,

Georgia Power oC,j m Supplemental Information Fo r Antitrus t Review Int roduc tion -

On Decenber 18, 1985 the Nuclea: Regulatory Commission Staff requested that Georgia Power Company (hereinafter

" Georgia Power" or the " Company") update for tiRC Docket 50-424A its August 29, 1983 submission for itself and as agent for the other owners of the Vogtle Electric Generat- l iag Plant (hereinafter " Plant Vogtle") concerning Sect. ions B-1 and B-2 in Regulatory Guide 9.3. The other owners o.! -

Plant Vogtle are the City of Dalton, Georgia (* Dalton *), l the Municipal Electric Authority of Georgio ("MEAG"), and  !

Oglethcrpe Power Corporation ("Oglethorpe"). l B.l.L: Anticipated excess or shortage in g.enerat ing <

capacity resources not expected at the con- i struction permit stage. Reasons f or the excess or shortage along with data on how  :

the excess will be allocated, dis t ri bu ted ,

or otherwise utilized or how the shortage +

will te obtained. I There has been no major change in anticipated excess

) or shortage of generating capacity resources since the August 23, 1983 report, although both load forecasts End l l

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

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s generation expansion plans Aave been revised. The Com-pany's corrent forecasted territorial peak demand projec-tions through 2010 are shown on Exhibit 1. These projec tions yield an average annual growth rate of 3.1% for tAe period 1985 (est.) thrcugh 2000. The first column el

Exhibit 1 is Georgia Territorial demond which includes l'

i Georgia Power's load, that of the other owners of Plant f Vogt.'.e (Oclothorpe, MEAG, and Dalton), and Georgia Power's i

two full rcquirements customers (the cities of Acworth enf

' Hampton Georgia). The succeeding columns of Exhihlt 1 state the loads of these entitles reparately. The second i

! column of Exhibit 2 shows Georgia Power's territorial 1

reserves resulting f:om the load forecast shown on Exhibit f

1 and the current generation expansron plan. The other i

colunns of Exhibit 2 show forecasted resarves for Georgia j Fower's affi,lates in the Southern electric system and

, 1

} system teserves. Exhibits 3 and 4 show the current load '

i I fcrecasts independent.Iy adopted by MEAG and Oglethorpe, l 1

j fo r their loads, respectively. Oglethorpe's higher load i forecast, a reduction from the previously. assumed

allocation or powei f rom the Southeasterra Fower Administration (*SE?A"), and changes in the sell-back of capacity from Vogtle Unit I will likely cause Oglethorpe's purchased power requirement.s to be higher than that {'

4 i iridicated in the August 1983, submission. Oglethorpe I

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E 1

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v expects to meet these higher requitenents through increased purchases as necessary Crot Georgia Power and (

additional construction on the mid to late 1990s. l B.l.b: New power pools or coordinating groups or i changes in structure, activities, policies, practices, or membership of power pools or coordinating groups in which the license was, is, or will be a participant.  !

Neither Georgia Power, Dalton, NEAG, or Oglethorpe is i participating in any new power pools or coordinating groups. Tnere have been no changes in the pools or

]

coordinating groups with which the Company participates f

{

I other than annual adjustments to the Intercott.pany Interchange Contra:t which governs Georgia power Company'c j participation in the Southern Company pool and is -

regulated by the Federal Energy Regulatory Commission -

("FERC")' .

B.1.c: Changes in transmission with respect to (1) the nuclear plant, (2) interconnections, or (3) connections to wholesale customers. ,

B.1.c. (1) Chances in Transmission With Respect to plant Vogtle: t The conmercial operation dates of plant Vogtle Units 1 and 2 have been extended to June of 1987, and September of 1988, respectively. The owners of plant Vogtle partici- l pate in the Integrated Transmission System described in the Auguut, 1983 submission, to which plant Vogtle will be ,

interconnected. Exhibit 5 shows the presently planned  !

transmission configuration for Plant Vogtle, which is somewhat tradified f rom the August, 1983 submission. t Exhibit 6 shows Plant Vogtle's relationship to the Inte-grated Transmission System. '

B.l.c. (2) Changes With Respect to Interconnec- '

tions:

The interconnection to the Richard B. Russell Dam on .

the Savannah River has been completed. The in-service date for the Plant Vogtle/ South Carolina Electric & Gas

< Company interconnection is now May, 1986.

B.1.c. (3) Connection to wholesale Customers:

The Integrated Transmission System was described in the August, 1983 submission. Exhibit 6 shows the present and planned bulk power components (500 kv ar.3 230 kv) of the Georgia Integrated Transmission System.

1 B.I.d: Changes in the ownership or contractual allocation of the output of the nuclear facility. Reasons and basis for such changes should be included.

Pursuant to an agreement entered into on November 19, f

1963, the Municipal Electric Authority of Georgia (here-inafter "MEAG") purchased in 1984 an additional *5%

interest in Plan Vogtle from Georgia Power. This agree-ment was subsequently amended on April 9, 1985 to mako

1 certain rearrangements in sales by MEAG to Georgia Power of portions of MEAG's interest in plant Vogtle (the " buy-back"). The purchase of an additional 5% interest and adjustments to the buy-back related to portions of MEAG's Vogtle ownership enabled Georgia power and MEAG to adjust their ownership and retention of Plant Vogtle capacity and energy to meet their requirements more economically.

Exhibit 7 shows the revised MEAG buy-back schedule. The buy-back adjustments also helped better assure MEAG's ability to finance on a tax-exempt basis. Currently, the Company owns 45.7% of Plant Vogtle, Oglethorpe owns 30%,

MEAG owns 22.7%, and Dalton owns 1.6%. The delay in the commercial operation date of Vogtle Unit 1 will also change Oglethorpe's sell-back schedule as previously reported.

B.l.e: Changes in design, provisions, or conditions of rate schedules and reasons for such chan-ges. Rate increases or decreases are not necessary.

There have been no significant changes in the Company's full or partial requirements rate schedules other than rate increases. These schedules have been modified in the context of resolving rate increase applications by the Company in order to improve the rate's reflection of system operations. All changes have been agreed to by the affected parties and FERC Staff and havo been accepted by

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P the FERC. MEAG's additional 5% interest in Plant Vogtle is a bulk power supply project (" Project Four") separate" for financing purposes from MEAG's prior projects. MEAG entered into Project Four Power Sale Contracts dated November 16, 1983,'witn its participants kin terms-and

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conditions similar to the Project Powar Sales Contract's for. Projects Two and Three. These contracts and rates will be designed to recover 100% of Eroject Four costs.

Since the August 1983,, submission, Oglethorpe's wholesale rate has been amended to base-respons'ibility on each of Oglethorpe's Member System's contribution to.Oglethor'pe's base, intermediate and peaking category load requir m,ents, and on contribution to Oglethorpe's system peak demand.

The amendment was adopted to reflect accurately each Member's contribution to Oglethorpe's cost of providing ,

power. The rate was further amended, effective February 28, 1986, with a rider that applies to certain Member Systems' loallA that meet stated load level and load,'

factor requirements. This rider was adopted to reflect the beneficial impact.of high load factor loads on power supply cost.

B.l.f.: Listof"all[(1) new customers, (2) transfers from one rate schedule to another, including

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copies of schedules not previously fur-nished, (3) changes in licensee's service area, and (4) licensee's acquisitions or mergers, i l

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

k B.1.f. (1): New' wholesale customers.

~There have been no changes'from August 1983, with respect to Georgia Power except'for the addition of Gulf States Utilities as a Unit Power Sales off-system customer i of Georgia Power as stated in the August 1983 response.

i i Neither Oglethorpe nor Dalton has added any wholesale customers. MEAG added the city of Oxford, Georgia as a j Participant effective January 1, 1986.- Oxford had previously purchased its requirements-from the city of a

j Covington, Georgia, which is a MEAG Participant. The addition of Oxford as a Participant accordinglyLdid not i

2 change the load MEAG serves.

i B.l.f. (2): Rate schedule changes.

i Schedule "S" and Schedule "R" have both been filed by

) Georgia Power and have become effective with the FERC.

?

! Schedule "S" is a purchase end resale agreement designed 1

to facilitate transactions between the Jacksonville Elec-

! tric Authority and Florida Power and Light Company and utilities in the Carolinas. A copy of the relevant filing l

l is enclosed with this filing. Schedule "R" revises-the i

Unit Power. sales pricing formula in order to make pur-l chases more economical.

A copy of the relevant filing is also enclosed.

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B.l.f. ( 3 ),: Changes in service area.

There has-been no change'in service areas.

i B.l.f. (4): Acqui itions or mergers.

1 There havc'been no acquisitions or mergers.

B.l.g: List of those generating capacity additions committed for operation after the nuclear facility, including ownership rights or power output allocations.

The generation expansion plan attached as Exhibit 8 shows major future planned capacity additions for all mem-bers of the_ Southern electric system. Georgia power's operating company affiliate Gulf power Company purchased in 1983 a 25% undivided interest in Plant Scherer Unit 3 and a 12.5% undivided interest in common facilities unique to Units 3 and 4. There are no other' major generation sources committed for operat' ion following Vogtle Unit 1 or Unit 2 at this time. Since 1983 Oglethorpe has received preliminary permits for two potential pumped storage hydroelectric s'ites. Oglethorpe currently plans to file a pumped storage license application in 1988.

B.l.h: Summary of requests or indications of inter-est by other electric power wholesale or retail distributors, and licensee *s response, for any type of electric service or cooper-ative venture or study.

Georgia Power and Oglethorpe are discussing the sale and purchase of the Rocky Mountain Pumped Storage Hydroelectric Pla,nt shown on Exhibit 8. Georgia Power and Oglethorpe also individually have periodic discussions with utilities outside their service areas concerning bulk power supply, including joint ownership of electric ,

1 generating plants. Oglethorpe intends to sell power from  !

Plant Scherer Units 1 and 2 to Seminole Electric Cooperative in Florida. Although Georgia Power has agreed to facilitate such a transaction, the necessary agreements have not been reached as of this date. Florida Power and Light Company and the Jacksonville Electric Authority have both requested that Georgia Power facilitate transactions between them and utilities in North and South Carolina, as well as the Middle South Utilities system. These discussions are ongoing, have to date yielded Schedules "S" and "R", and other schedules may be forthcoming.

Florida Power and Light also has requested that Oglethorpe facilitate transactions between Florida Power and Light and utilities in North and South Carolina. To date, there have not been any such transactions. Oglethorpe has also entered into interconnection and interchange agreements with Alabama Electric Cooperative and South Mississippi Electric Power Associations, respectively.

i ..

B.2: Licensees whose construction permits include conditions. pertaining to antitrust aspects

. should list and discuss those actions ar i

policies which have been implemented .

accordance.with such conditions.

The joint ownership, integrated transmission, joint planning, and partial requirements power relationships among Plant Vogtle's owners described in-the previous ,

filing have continued. In 1984, Georgia Power, the T

licensee of Plant Vogtle.which is subject to antitrust license conditions, sold additional transmission ,

]

facilities to Oglethorpe and MEAG in furtherance of the Integrated Transmission System which is in place. In addition, in February, 1985, SEPA and Georgia Power entered into a revised contract for a term ending May 31, 1994, to make SEPA hydroelectric power available on a firm and usable basis to public bodies and cooperatives contracting with SEPA in Georgia Power's service area 4_

(including Dalton, MEAG's Participants, and Oglethorpe's i Members) and in the service areas of Georgia' Power's affiliates, known as western marketing area of SEPA's Georgia-Alabama system. Under this contract, Georgia Power is responsible for the transmission component of

-this arrangement until May 31, 1989. The owners of Plant

! Vogtle anticipate that some or all of the participants in the Integrated Transmission System in which they

) participate will be responsible for the transmission i

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.m, , . _ . . ...-..m., - ,_- .-,,;- -- -,. -. ~ ,_ . . -. ; - , . _ . , , . - ,

component of this arrangement after May 31, 1989. This i

revised contract enabled SEPA to implement its' marketing program in the western area of its Georgia-Alabama System i

in a fashion satisfactory to it and to its western area customers.

Respectfully submitted,

, 1 Robert P. Edwardh, Jr.

Counsel for Licensee Georgia Power Company TROUTMAN., SANDERS, LOCKERMAN

& ASHMORE 1400 Candler Building

Atlanta, Georgia 30043 (404) 658-8000 1

4 4

i

EXHIBIT 1

?

Georria Power Company Planning 1986 Coincident Peak Lemand Torecast (MV)

October, 1985 Territorial CPC MEAG Lalton Acworth Emmpton 1985 12424 2198 1161 129 5 3 2980 12878 2312 11S3 134 5 3 1987 13336 2439 1236 139 6 3 1988 13575 2506 1261 141 6 3 1989 13853 2573 1286 144 6 3 1990 14290 2674 ISIS 149 6 3 1991 14919 2816 1370 155 6 3 1992 15359 2938 1406 160 6 4 19S3 15753 3040 1437 164 6 4

. 1994 16250 3150 1477 169 6 4 1995 1670S 3271 ISIS 174 6 4 1996 17229 3394 1559 179 6 4 19S7 17780 3520 1606 185 6 4 1998 18376 3653 1650 191 6 4 1999 18969 3800 16S7 197 6 4 2000 19560 3943 1745 203 6 4 l 2001 20146 4192 1805 209 6 5 2002 20952 4387 1867 218 6 5 20C3 01596 4542 1915 225 6 5 2004 01998 4638 1942 22S 7 5 2005 22456 4745 1975 233 7 5 2006. 23125 4906 2026 240 7 5 2007 22556 5008 2055 245 7 5 2008 23S30 5096 2080 249 7 5 2005 24170 5151 2094 251 7 5 j 2010 24411 5207 2107 254 7 5 l

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.. EXHIBIT 3 OFFICIAL MEAG LOAD FORECAST COINCIDENT ENERGY YEAR DEMAND (MW) (MWH) 1986 1275.6 6012894 1987 1258.6 6018574 1988 1300.5 6237031 1989 1343.5 6460360 1990 1387.5 6688626 1991 1432.6 6921916~

1992 1478.8 7160335 1993 1526.2 7404005 1994 1574.7 7653060 1995 1624.4 7907647 1996 1675.3 8167021 1997 1727.5 8434049 1998 1781.0 8706205 1999 1835.8 8984572 2000- 1892.0 9269341 2001 1949.7 9560712 2002 2008.8 9858892 AVERAGE GROWTH RATE (1986-2002) 2.88% 3.14%

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EXHIEIT 4 OGLETHORPE POWER Cr)RPORATION 19S5 0FFICIAL FORECAST SU3 MARY OPC Contribution OPC Energy Year to Ga. Territorial Peak (MW) Requirements (MNH)

.1985 2,329 10,496,585 1986 2,446 10,998,895 1987 2,561 11,469,677 l

l 1988 2,646 11,S77,190 1989 2,719 12,223,287 1990 2,791 12,504,760 1991 2,867 12,764,191 1992 2,944 13,016,S79 1993 3,020 13,267,540 1994 3,097 13,568,320 1995 3,204 13,S31,017

-l 1996 3,423 14,0S9,743 1997 3,44S 14,400,349 1998 3,588 14,752,180 1999 3,737 15.112,677 2000 3,S58 15,455,240 2001 3,896 15,652,870 2002 4,007 15,S61,121 2003 4,094 16,040,9So 2004 4,235 16,276,157 (Load measured at Oglethorpe's metering point)

PSP l-2S-86

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EXIIIBIT 6 GEORGIA INTEGRATED TRANSMISSION SYSTEM p. ' 3- 7 j:::: L-::iry m/

( BULK TRANSMISSION EXPANSION PLAN ) .A a e ,

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EXIIIBIT 7 l

MUNICII8AI,Isl.IM7I'IIIG AUI'IIOlli'IY OF GI?OltGIA PLANT VOGTLE CAPACITY PRIOR AND AMENDED ARRANGEMENTS s00 -

LEGEND RETAINED CAPAC,TY UNDER AMENDED ARRANGEMENT

,, SALES UNDER

~ * , ' PRIOR ARRANGEMENT 00 -

SALES UNDER AMENDED AHHANGEMENT

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' DECLINING PORTION 300 -

17.7%

CAPACITY - -

LONG-TERM PORTION (MW) ,

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2004 2000 2010 20k2 2014 2016 2010 2020 19sa 1990 1992 1994 1996 1998 2000 2002 2004 j

YEAR

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EXHIBIT 8 (page 1 of 2)

GENE R All0N E XPANSION PL AN R6A3 MAJOR UNil ADDIll0NS THE UM)ERT AMING AND CONilNUAlION OF CONSTRUCIION OF LISIID UNIIS. AS WELL AS THEIR TIMING. ARE CONTINGENT tjPON RECEIPT OF ADEQUAlf RAlf RELIEF BV T HE. OPERAllNG COMPANIES. UNIT Rt IIRE MENI Dale S ARE CURRENI ESilMAIES SUSJECT TO CHANGE. UNIT ADDIll0NS BEYOND 1996 ARE EI ASE D ON A MINIMUM 20%

RESERVE GUIDELINE. OEfallED ECONOMIC AND RELIADELIIV S10 DIE S WIL L RE MADE A$ APPROPRIATE TO DEVERMINE UNil ADDill0NS ON A IIMEtY E1A515.

VEAR ALABAMA GEORGIA GUL. F MISS 1986 BARTLElis FERRV 1987 SCHERER 3 (75%) SCHERER 3 (25%)

V0GItE t 1988 1989 MILLER 3 SCitE RE R 4 VOGILE 2 1990 R8 RUSSELL (20%) Rit RUSSELL (75%) Rn RUSSELL (I%) PH RUSSELL (5%)

1991 MILLER 4 8992 THURLOW lNC. ~

VATES INC.

1993 1994 1995 1998 GOAi ROCK INC. CARvVll Cf(ISO) PEAKING (100)

P[AKING (100) = ~

1997 PEAKING (650) CARYVil C f ( 100 ) PEAKING (250) 1999 PEAKING (1000) CARVVil CI(100) PE AKING ( 150) 1999 ROCKY MIN 2000 PEAKING (400) PEAKING (1000) 2001 PEAKING (450) PEAKING (l200) PEAKING (100) 2002 PEAKING (350) PIAKING (1950) LSMllH CC (250) I NI E RME D (ISO) -

INTERMED (750) INTERMFD (350) 2003 INTERMED (750) INTERMEO l1500) 2004 PEAKING (ISO) INITRMED (1250) CRISI CI (100) INIE RMf D ( 250) ~

2005 COAL 9 PEAKING (250) CARYVit I (60%) CARvVIL 9 (40%)

COAL 2 2006 COAL 3 PEAklNG (500) 2007 COAL 4 PEAKING (250) 2008 PEARING (200) CRISI CI (50) CARYVIL 2 (40%)

C A R Y V i t. 7 (60%)

2009 COAL 5 (50%) INTERMED (650) LSM!iH CC (100) AL COAL 5 (50%)

Coll 6 ~

2090 CDAL 7 COAL 8 200l COAL 9 -

COAL 10 2002 COAL st 2013 PEAKING (50) PEAkif4G (250) CATSI CI (200) AL CO&l 64(50%) ~~-

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SERVICE SCHEDULE R i

UPS REPLACEMENT ENERGY SCHEDULE BETWEEN FLORIDA POWER.& LIGHT COMPANY ' l AND ALABAMA POWER COMPANY, GEORGIA POWER COMPANY, GULF POWER COMPANY, AND MISSISSIPPI POWER COMPANY, AND SOUTHERN COMPANY SERVICES, INC.

Section R0.1: This Service Schedule R is executed and entered into this 29th day of July , 1985 and is a part of and incorporates the applicable provisions of the Inter-

] change Contract dated October 18, 1979, between Florida l Power & Light Company ("FPL") and Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power l Company and Southern Company Services, Inc. ("SCS") col-lectively referenced herein as the " Southern Companies."

ARTICLE I PURPOSE Section RI.1: The purpose of this Service Schedule R is to provide the opportunity for nonfirm energy salec frem Southern Companies to FPL in addition to other Service Schedules presently in effect and to establish the terms and conditions of such energy sales. All such nonfirm energy sales to FPL under this Service Schedule R shall be con-sidered to be contemporaneous with energy sales to the

- Jacksonville Electric Authority ("JEA") and Gulf States Utilities Company ("GSU") under the provisions of similar service schedules with such third party utilities.

1

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

N .. .

1 n

Section R1.2: The type cf energy sale provided for here-under will be referred to hereinafter as "UPS Replacement ,

i Energy." UPS Replacement Energy will be made available by ,

Southern Companies to FPL from the icwest energy cost [

generating resources that can be made available after.  ;

priorities under Section R3.2 are satisfied, to permit FPL to substitute such energy for energy under the Amended and

Restated Unit Power Sales Agreement among the parties dated .

February 18, 1982 as amended ("UPS Contract") . ,

1 Section R1.3 : " Contract" shall mean the Interchange Con-P l

tract between FPL and Southern Companies dated October 18, ,

i 1979 as subsequently amended on February 19, 1981 and July -l l

23, 1981. ,

I ARTICLE II  ;

' TERM OF SERVICE SCHEDULE p Section R2.1: The term of this Service Schedule R .shall commence on the date first above written and shall continue ,

in effect until December 31, 1990 unless suspended pursuant ,

to the provisions of Section R2.2.

4 .

Section - R2.2 : On or before January 31, 1986 and each six  ;

(6) months thereafter (July 31, 1986, January 31, 1987, t

etc.) during the term of this Service Schedule R, FPL and i SCS as agent for Scuthern Companies shall perform the

x .

I following calculation to determine if UPS Replacement Energy i

sales shall be suspended during the next six (6) month ,

period (i.e., calculation made on er before January 31, 1986 ,

determines if UPS Replacement Energy sales are to .be ,

suspended for six month period February 1, 1986 througn July  ;

31, 1986):

i

- UPS Replacement Energy sale shall be suspended during next six (6) month period if:

5

[B] greater than or equal to [ A x 1.05 1 Where:

A= the average cost of sales (i.n dollars per megawatt hour) under all UPS centracts (in- .

cluding contracts with JEA and GSU) deter- t minsd en the follcwing basis for the preceding *.2 month, pericd Ganuary 1 through -

December 31 or July 1 througn June 30) :

Total UPS Energy Billing Total U?S Capacity. Billing '

in Dollars Under all UPS in Do;. ley;s Uncle; all UPS Contracts for 12 Menth Contfi;.::s fc: 12 Mcnth Period

  • Period Total UPS Energy Sales Ootal 'iPS C.Epacit;y 'En-in MWH Under all CPS titlemer. t Cnder all UPS -

! Contracts fcr 12 Month ContractM '_xpressed in MWH -

Period Determined by Converting MW Entitlements Using a 90% Capacity Factor ,

B= estimated cost of energy frcm oil and gas  :

fired generating units (in dollars per nega-watt hour) determined in accordance with the following formula for the preceding 12 month period:

B in S/MWE = OIL PRICE (12 months average) x 1.68 Vnere:

" OIL PRICE (12 months average)" shall be the  ;

sum of the low " Estimated U.S. Gulf Coast ,

Spot" prices per barrel for each Monday of l

- - - -- m,-,- - -- ,x, . , - , - , ., ,av. u - - , - --r-

  • l i the computation year quoted under the maximum 1.0% sulfur residual fuel oil (* Max 1.0% '

resid") for the waterborne spot market

(" Waterborne") in "Platt's Oilgram Price Report" an international daily oil / gas price -

and market letter published by McGraw-Hill, Inc., divided bv, the total number of price ,

quotations included in the sum (stated in dollars per barrel). When a Monday price  ;

quotation is not available, the next available succeeding day's quotation will be ,

used in computing the 12 months average price. In the event publication of Platt's Oilgram Price Report is discontinued or l substantially changed .such that it no longer ,

provides a reasonable estimated cost for computing "B" above, quotations from the l weekly publication " Oil Buyers Guide," U.S.

i Gulf Coast Product Prices for No. 6 Fuel 1.04, Deepwater, Louisiana will be i i

substituted therefor.  ;

Where: ,

1.63 bbl /MWH is a fixed factor to be used for

the duration of this Service Schedule R. The fixed factor was derived by dividing an average unit heat rate (10.50 million btu /MWH) by an average heat energy of fuel '

oil (6.25 million btu /bb1) .

In the event UPS Replacement Energy sales are suspended  :

during a six month period because of operation of the fore-i going calculation, FPL and SCS will perform the calculation i at the next designated date to determine if .such energy i

sales are to be reinstated for the then following six month 3

period during the fixed term of this Service Schedule R.

1 Since the calculation under this Section is complicated, the i

}

parties have agreed to a sample calculation under the fore-

! going provisions which is attached hereto as Exhibit I and i l

i incorporated herein by reference. This sample calculation I

-4_

. ,-. -. .,,. - - , - . - .. --. - . , . - - - - .- - ., -- .- .- r-, ,

v .. -

a will . govern in the event cf disputes as to the interpre+.ation of the calculation previd.ed for by this .

Secti n of this service schedule.

ARTICLE III SUFVLY OF UPS F2 PLACEMENT ENERQ Section R3.1: Southers Companies will furnish information with respect to generating capacity available on their elec-tric systems which might he made available .for UPS Replacs-ment Energy sales. Th-;.5 information will include (at the expected cost, as herei=after defined, of the UPS Replace-ment Energy that can be made available, and (b) the quantity  ;

and period of time such-energy is expected to be available. . .

Such information will be furnished by ec=munications between -

the Operating Representatives. Scuthern Companies, in the sole discretion of SCS, shall determine if capaqity is available en their systems for UPS Replacement Energy sales.

Section R3. 2 : For any energy sales hereunder, the cost cf UPS Replacement Energy shall be the incremental expense in~

curred in supplying energy hereunder as defined in Section R4.1. UPS Replacement Energy under this Service Schedule and schedules with GSU and CEA shall be supplied contam-peraneously from generating units in scencmic dispatch en the system cf Southern Companies after serving its own  !

, system requirements and the fcilowing transartiens which e

k shall h&ve priority: (1) any seasonal or capacity exchsnge e.greements nov existin.g or e.ntered into in the future, (2) auy firr. powet interchange e, ales to other utilities or third ,

psetiet noir ensting or entered into in the futurs, (3) any i

Unit Power Saluts agreemgnts 'for the ralf c.f capacity and enersy from a specii'ic unit or units (including any altar-

' nate energy furnished under prov::.sicus sinii.ar to that 4

specified in ths Unit Power Sales Agreemtet with FPL) .n o w existing or entered into in the fur. tire , (4) any 1cng Te'a r Power sales with other utilities or third par. ties which were executed prior to the date (irst above written, IS) any nsles of Supple;mntal Energy under the previsions of Unit  :

Power Sales agreements similar to the previsions of Unit  ;

Pewer Sales Agreemun with FPL now existing, (61 any nonfirm capact.ty sales for a term of one. year or longer er other -

utilities or third parties er.tered inte in the futurs but only to the extant of 300 MW per year for the years 1556 through 1929 and 400 .W per yeni Jor the year 1990,, and (7) s any short term cacacity sales under an interchange agre.sreant ,

between Alnbama Power Company and Alabama Electric Ccopera-tiva, Inc.

d Ss.-tion R3.3: Each UPS Replacement En6rgy transaction .shall  ;

be 6 greed upon by the Operating Repratentatives of the i

partics prior tc ccmmencement of delivery of sucn energy I *. is anticipate.d that, after Southern Companies have 1 ela h e.

s'cpelied the inferratica pursuant te S ection R.1.1,. the -

operatirag Representatives will establish a prelimina:y schedule for : energy deliveries hereunder for the nes.xn dr.y.

Approxifaatetly thirty (3Cl 2.inctes betcre the tra.nsaction is Kepresentative scheduled te comence, the Operating cf Scuthern Compasies shall quote the price in 5 /MG for UPS Replacement Energy for the next hour ar.d will provi'fe sizilar qcetes for each subseq' rant hour during the period of .

the transaction. At the time of each price quote for tha text hour, TPL's Operating Representative shall determirfs whether er not. te take tTP.5 Replacement 7.nergy during that ,

next hocr. "f after the time cf the price quote for the next hour and prie:r to the tins of the pr:. cts quote for the ,

subsequent hcur Seethern Oczpanies deterr.ine, in their scle l judgment, that a l '., or a portion of the then scheduled eff-system sales can no lo2ger he delivered, SCS sha11 give as much notice as possible cf the need fer yFL ts change its schedule cf UPS Replacement Energy to available CPS energy .

schsdules at the next scheduling time for the subseq'. ant how. ':'he delivery of UPS Replacament 2nergy during the .

next bour say be centinued at the eption of FPL. If TFL elects to continue receipt of UPS Beplacement Energy as scheduled, the price of such encrey shall be the greater Of ,

the quoted price for such UPS Reple. enent Energy or the weighted avsrage energy rate for FPL's pre rati. share of all units as determined by the followin'; for=ula:

J

n OPC.-X ER. +

  • UPC_ x ER_

WAER = ...

i ..! + UPC UPC 1 + UPC2 "+ .. "+ UPCn CPC2 + UPCA 4 + n Wherst WA3R = FPL's weignted average Energy Rate for FPL'.s pro rata share of all UpS units.

t n= Total curihar of trJS units to which FPL has capacity entitlement.

Unit power capacity entitisment of FPL UPC" 's from such unit deterninend in accordance with Article II of the ITJS Contract.

ERg = Cnit's respective Energy late which is.

the le.sser of (.1) the Ease Energy Rate of such unit as dettersu;.nted in accord.tnce with section 5.3 of the UPS Contra.ct, or (2) the Ncrmalized Energy Kate of scch unit as deter:nned in accordance with Section 6.6 of the UPS Ccntract.

Section 7.3.4: This Service Schedule is not intended and

.shall not he interpreted to change or modify the obliga- '

tions, rights and duties of the parties under the UPS con-tractt hewever, UPS Replacemett Energy scheduled herecnder i will be deemed to satisfy the prcirisions of Section 3.1 of the 'JPS Centract, with the understanding that such energy i

vill be allocated te enth dedicated unit under the CPS l centra.ct based on de ratio of the MW entitlema.nt to that unit to the tota.1 MW entitlement under the U2S Contract. In the event tne schedC a of energy (to include unit energy, ,

alternate energy and the allocation cf UPS EEplacement Energy! from any unit is in exces s of 130rs of the available energy frem that unit, the CPS Keplacement Energy a2.locatec to such : nit in excess of 100% shall be allecated to the j restining units on a pro rate basis. l a

6 ARTICLE IV BASIS OF SETTLDUT. f-Section R4.1: The Basis of settlement for G.PS Replacenant -

Energy hereunder shall be the hourly quoted rate agreed upon by the Operating Representatives of the parties prior to cesswacing of delivery of such energy for the next hour.

The increcental cost quoted by Southern Cortpanita for esch hour snall be based on thc incre.wncal ecst of fuel; incte-t mental maintenance cost; incremer.tal change in system trans-rission losses attribetable to v4.0 transaction; and other costs, directly attributable to the transaction.

I It shall-be a responsibiltty of the Cparating S<wrion E4.2:

Committee to establish arrangements for interchange of data with respect to UPS Replacemenb Energy trusattions adequate to enable independent computations of the monthly statements '

by fPL.

Section 34.3: Sett2ement for energy transact.cnr under Section R4.1 SLJL11 be nade scnthly in accorCAD::e w:.th monthly statements rendered by Scythorn Cof2panies t.o TPL.

~

The monthly statement shall show the energy trassactions and the respective basis for settlement pertaining thereto.

e 4

e i

9_

Such statement shall otherwise be subject to Section 7.2 of -

f the Contract.

[The next page is the signature page, i page 11.] ,

a P

1 i

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1 4

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4

IN WITNESS WHEREOF, the parties hereto have caused this Service Schedule R to be executed by their duly authorized officers effective as of the date first set forth above.

2 ATTEST: FLORIDA POWER & LIGHT CCMPANY  ;

y, , , , , , v  ! ' f,f_ ,

sy an h Secretary,

-3 JV': . Howard '

  • Group Vice President Date: M s Nb ATTEST: SOUTHERN COMPANY SERVICES, INC.

By M -

g r R. O. Usrf Vice President

(/

f Date: July 29, 1985 ATTEST: ALABAMA POWER COMPANY ,

L4/ By / d' a k -

k./

i R. E. Huf:fe.f 4 Vice President

! Date: Julv 29, 1985 ,

ATTEST: GEORGIA POWER COMPANY r1 W By A.h * -

r Pred D. W:111ams .

Vice President '

Date: July 29, 1985 ATTEST: GULF POWER COMPANY l M By [M . = -_ O.

frgggg L

E. B. Parsons , Jr.

Vice President 4 r Date: July 29, 1985 y

ATTEST: MISSISSIPPI POWER COMPANY

~

. By p 5.c Pe de + ,

Date: July 29, 1985 i

11 -

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

EXH2BR* 1

' Sample Calculation for Section R2.2 1

k ction R2.2 outlines the method for ==H ng the calculation to cetermine if UPS Replacement Energy sales should be suspended during the next six(6) month period. The following example is used to illustrate the calculation described in section R2.2 and is based on actual data for the 12 month. period from July,1984 through June, 1985. UPS Replacement Energy sales ,

are to be suspended during the next six (6) month period August 1, 1985 through February 28, 1986 if: i (3) is greater than or equal to ( A x 1.05 ) ,

Where A & E are defined as follows:

1 I A(5/MNE) = the average cost of sales under all UPS contracts de+= = nad on the following basis for the preceding '

12 month period:

l 5 333,779,814.80 5 285,147,160.00

= .

10,607,491 MNE 13,327,114 MWE  ;

= 31.47 5/MWE + 21.40 S/MWE j i'

A= 51787 $/MNE 4 .

1.05 x A = 55.51 5/MNE ,

1 The values used in calculating (A) are provided in Tables 1 and

2 and are defined as follows:  ;

! 5 333,779,814.80 = Total dollars billed for UPS energy to all ,

UPS companies for the preceding 12 month ,

l period (.7uly, 1984 thru June, 1985). Values  !

! obtained from monthly UPS energy invoices

' for each UPS customer including all adjustments.

I 10,607,491 MWE = Total UPS energy sold tc all UPS companies for the preceding 12 month period (July,1984 i

thru June, 1985). Values obtained from monthly UPS energy invoices for each UPS customers. ,

i S 285,147,160.00 = Total dollars billed fer UPS capacity to all UPS companies for the preceding 12 month j period (July,1984 thru June, 1985) . Values >

obtained from monthly UPS capacity invcices j for each UPS customer including all adjust =ents.

1 t I i

    • 1 "

. t 13,327,114 MWH = Equal to the summation, for all months of the preceding 12 month period, of the *:otal . CPS capacity entitlement under all UPS agreements for each month times the number of hours in the month times a 90% capacity factor.(Refer to Table 2) /

l And where:

B= 25.72 ($/bb1) x 1.68 (bbl /MWH)

B= 43.21 $/MWE

/

The values used in calculating (B) are provided in Table 3 and and are defined as follows:

f 25.72 (S/bb1) = The 12 month average oil price as specified in Section R2.2, Page 4 of this Service Schedule R.

(Rafer to Table 3) 1.68 (bbl /MWE) = A fixed factor used to convert the oil price in dellars per barrel to an energy price in S/MWE.

This factor is described on Page 4 of Service Schedule R.

1 4

l Since 43.21 S/MNE (B) is less than 55.51 $/MWE (A x 1.05), the UPS Replacement Energy sales would continue for the next six month period.

T 1 .~ i 4 /

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_ . _ - . . _ . _ . .- ,. _ _.___ _.. _ , _ _ . , __y. , . . _ ____,_._, . _ _ ,, ,,. _ . _ , , ,_. _ _ _ _ . . _ , _ _l

  • \

able 1 1 CPS Billing Data for Sample Calculation (1) (1) (1)

Energy Energy Capacity Month (MWE) (Dollars) (Dollars)

July, 84 660,8 W 20,798,707.65 13,861,057.00 August, 84 662,588 23,156,876.62 9,746,383.00 September, 84 599,794 20,841,283.15 13,964,428.00 october, 84 544,378 17,277,578.69 14,074,133.00 November, 84 537,964 16,985,334.48 13,655,187.00 I

December, 84 506,655 15,234,042.38 13,812,991.00 Januarr, 85 1,235,742 39,676,254.11 35,094,701.00 February, 85 1,048,092 32,024,966.86 32,422,850.00 March, 85 968,095 29,042,960.68 34,701,805.00 April, 85 1,184,436 37,708,667.68 35,128,638.00 May, 85 1,225,153 36,648,277.19 33,778,652.00 34,906,335.00

June, 85 1,433,726 44,384,865.31 Total 10,607,491 333,779,814.80 285,147,160.00 .

l 4

4 Note: (1) values are based on the total for all UPS contracts for the i period July 1, 1984 through June 30, 1985.

)

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.- Table 2 Capacity Entitlements for Sample Calculation (F)

Capacity (A) (B) (C) (D) (E) Entitlement Per:,od Hours FPL JEA GSU Total in MWE

- (MW) (MW) (MW) (MW)

Jul - Dec, 84 4416 660 304 - 964 3,831,321.6 Jan - May, 85 3624 1722 303 405 2430 7,925,688.0 Jun, 85 720 1718 302 403 2423 1,570,104.0 Total 13,327,113.6 Notes: (E) = (B) + (C) + (D)

(F) = (E) x (A) x (.90) -

\

2.

I i

l l

l 1

l l

i l

_ .- , _ ____ l

i l

TABLE 3 C h

  • ION OF "WELVE MONTE AVERAGE CIL PRICE l

t PUBLICATION PRICE PLATT'S PUBLICATION PRICE PLAT"'S l DA=E E PRICE DATE DATE PRICE 7/03 7/02 $26.85 1/08 1/07 526.00 1 7/10 7/09 S27.00 1/15 1/14 527.00 7/17 7/16 527.25 1/22 1/21 527.25 7/24 7/23 527.00 1/29 1/28 527.00 7/31 7/30 $26.25 2/05 2/04 S27.00 8/07 8/06 526.00 2/12 2/11 $27.15 1 8/14 8/13 526.75 2/20 2/19 527.25 8/21 8/20 526.75 2/26 2/25 527.25-8/28 8/27 526.75 3/05 3/04 526.50 9/05 9/04 527.00 3/12 3/11 $25.75 9/12 9/11 527.25 3/19 3/18 525.00 9/18 9/17 327.25 3/26 3/25 524.75 9/25 9/24 527.15 4/02 4/01 $24.75 10/02 10/01 527.10 4/09 4/08 ,

524.75 10/10 10/09 'S27.25 4/16 4/15 524.65 10/16 10/15 527.25 4/23 4/22 524.55 10/23 10/22 327.25 4/30 4/29 524.00 10/30 10/29 S27.00 5/07 5/06 523.35 11/06 11/05 526.40 5/14 5/13 S21.00 11/13 11/12 526.40 5/21 5/20 520.75 11/20 11/19 S27.00 5/29 5/28 520.25 11/27 11/26 $27.25 6/05 6/04 520.25 12/04 12/03 527.10 6/11 6/10 $20.75-12/11 12/10 S27.10 6/18 6/17 S22.50 12/18 12/17 527.00 6/25 6/24 522.50 12/27 12/26 526.25 TWELVE MON *E AVERAGE = S25.72 TWELVE MON *E PERIOD = JULY 1, 1984 - JUNE 30, 1985 I

JEL/sp 7/19/85 l

"Y:' 005 EC. _ '

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1t 'I r; 7. - .,

SERVICE SCHEDULE S . EE.'r '*I

,;' e.",~

. , (* ' !': .

DELIVERY OF POWER AND ENERGY FROM SOUTH CAROLINA ELECTRIC & GAS COMPANY BETWEEN ALABAMA POWER COMPANY, GEORGIA POWER COMPANY, GULF POWER COMPANY, MISSISSIPPI POWER COMPANY AND SOUTHERN COMPANY SERVICES, INC.

AND FLORIDA POWER & LIGHT COMPANY Section S0.1: This Service Schedule S is executed and entered into this 1st day of May, 1985 and is a part of and incorporates the applicable provisions of the Interchange Contract dated October 18, 1979, between Florida Power &

Light Company ("FPL") and Alabama Power Company, Georgia Power Company ("GPC"), Gulf Power Company, Mississippi Power Company and Southern Company Services, Inc. ("SCS")

collectively referenced herein as the (" Southern Companies").

ARTICLE I - DEFINITIONS AND PURPOSE Section S1.1: The purpose of this Service Schedule is to set forth the terms and conditions under which Southern Companies agree to purchase energy from South Carolina Electric & Gas Company ("SCE&G") at points of direct

J. ,,

interconnection between GPC and SCE&G, and contemporaneously deliver - equivalent amounts of power and energy -(net of incremental transmission losses) to FPL.

Section S1.2: " Contract" shall mean the Interchange Contract between FPL and the Southern Companies dated October 18, 1979 as subsequently amended on February 19, 1981 and July 23, 1981.

Section S1.3: "SCE&G Agreement" shall mean the Short Term Power Sales Agreement between South Carolina Electric & Gas Company and Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Company Services, Inc. dated May 1, 1985.

Section Sl.4: "UPS Contract" shall mean the Amended and Restated Unit Power Sales Agreement between FPL and Southern Companies and SCS dated February 18, 1982 as amended.

4 2-

4 ARTICLE II - TERM Section S2.1: The term of this-Service Schedule S shall-be concurrent with the SCE&G Agreement, such Agreement having been entered into by and between SCE&G and . Southern 4

Companies on date even herewith. It is agreed that power and energy deliveries under the SCE&G Agreement and contemporaneous deliveries under this . Service' Schedule S shall commence on the date of the first scheduled delivery of power and energy under this Service Schedule but no later than July 1, 1985 as mutually agreed by the parties, and that power and energy deliveries shall continue in effect for an operative term of 90 days when this Service Schedule S shall expire by its terms; provided, that such expiration is subject to reasonable extensions at the option of FPL to allow the . delivery of up to 540 GWH, and at least the minimum of 390 GWH of energy specified in the SCE&G Agreement, but in no event shall the term extend beyond November 30, 1985. In the event of termination or expiration of this Service Schedule S, FPL shall not be relieved of its obligations under Sections S4.1.1, S4.1.2 and S4.1.3 hereof to pay Southern Companies for energy purchased from SCE&G pursuant to the terms of the SCE&G Agreement or any other obligations incurred by FPL under this Service Schedule S.

a ARTICLE III - SERVICES TO BE RENDERED Section S3.1: - Description of Service: Southern Companies, on date even herewith, entered into the SCE&G Agreement which provides for the purchase and receipt of power and energy by Southern Companies for contemporaneous sale and delivery to FPL. FPL participated with SCS in making arrangements with SCE&G for the purchase of power and energy by Southern Companies and the terms and conditions of the SCE&G Agreement attendant to such purchase. FPL acknowledges and consents to all of the terms and conditions of the purchase arrangement between Southern Companies and SCE&G as set forth in the SCE&G Agreement, including but not limited to provisions related to amount of purchase, minimum energy scheduling in peak and off-peak hours, designation of generating units, restrictions on generating units, energy credits, carrying charges on coal inventory, liability for start-up costs, priorities of energy delivery, term, schedule of delivery, basis of billing and settlement and all other commitments stated therein. This Service Schedule S sets forth the terms, conditions and limitations attendant to the contemporaneous purchases and deliveries of power and energy and the terms of payment by FPL for services provided hereunder by Southern Companies.

4

-4 -

Section S3.2 - Schedules of Delivery: FPL, after consultation and agraement with SCE&G, shall have the right to schedule the power and energy to be purchased by Southern Companies from SCE&G for contemporaneous -delivery to FPL.

Such schedules shall be established by the operating representatives of FPL and Southern Companies and shall be subject to all requirements, limitations, restrictions and conditions on availability of power and energy set forth in the SCE&G Agreement including the maximum and minimum amounts of power and energy that can be scheduled pursuant to that Agreement. FPL's operating representative will give Southern Companies' operating representative as much advance notice as possible of power and energy delivery schedules and shall provide by 12:01 p.m. (prevailing Central Time) its best estimate of such schedule for the next 24-hour period ccmmencing at 9:00 p.m. (prevailing Central Time) or for longer periods where weekends and holidays are involved.

Section S3.3 - Priority of Service: It is understood by the parties hereto that the priorities of service established by Sections S3.3.1 and S3.3.2 of this Service Schedule S are in addition to and override any conflicting requiremen,ts, limitations and restrictions on power and energy delivery and availability set forth in the SCE&G Agreement. Section S3.3.1 establishes priority of service related- to the Southern Companies-Florida interface and Section S3.3.2

~

t establishes priority of service related to the Southern l Companies-SCE&G interface. The safety' and reliability limitations on purchases and deliveries under this Service Schedule S (as specified in Section S3.4 hereof) override the priorities established by Sections S3.3.1 and S3.3.2.

Except as provided in Sections S3.3.1 and S3.3.2, Southern Companies shall not be required to terminate or forego any-power and/or energy transactions it may schedule or may have scheduled with others to accommodate the contemporaneous delivery of power and energy to FPL under this Service Schedule S.

Section S3.3.1 -

Southern Companies-Florida Interface:

Insofar as the Southern Companies' capability to furnish power and energy under this Service Schedule S is limited and restrained by the power transfer capability of the transmission interconnections between Southern Companies and FPL (including indirect transmission paths through other l Florida utilities) , FPL's request to Southern Companies for {

I service under this Service Schedule S for deliveries up to 425 MW shall be given service priority equal to power and energy deliveries under the UPS Contract and Schedule E to  !

l the Contract; provided that the aggregate scheduled "aliveries to FPL from the Southern Companies during any hour does not exceed 2018 MW fthe current capability to be provided under the UPS Contract and Schedule E to the

~

Contract). If requested service under this Service Schedule S would cause the aggregate scheduled deliveries to FPL from Southern Companies across the Southern Companies-Florida interface to exceed 2018 MW and so long as the capability of such interface remains limited to 2900 MW, the amount of such power to FPL in excess of 2018 MW shall not have priority over any sales or deliveries of power and/or energy by Southern Companies then in existence or which may be scheduled in future periods; provided that, if any such other sale or delivery is made by Southern Companies which

~

will displace then existing scheduled deliveries to FPL, FPL shall be given at least 45 minutes prior notice. If the Southern Companies-Florida interface capability is increased above 2900 MW and FPL's aggregate scheduled deliveries exceeds 2018 MW, Southern Companies shall have the right to displace the amount scheduled under this Service Schedule S to the ext.ent of the excess over 2018 MW by giving FPL 45 minutes prior notice; provided that if Southern Companies have made a schedule commitment under Section 53.2 of this Service Schedule S for a longer period, such commitment shall be hcnored before displacement by other sales to Florida by Southern Ccmpanies up to a total capacity amount of 2018 MW plus the increase of interface capability above 2900 MW.

l

Section S3.3.2 -

Southern Companies-SCE&G Interface:

Insofar as the Southern Companies' capability to furnish power and energy under this Service Schedule S is limited by the power transfer capability of the transmission interconnections between Southern Companies and SCE&G (including indirect transmission paths through other utilities located in the northeast quadrant of the Southern Companies' electric systems), FPL's request to Southern companies for service during the operative 90-day term of this Service Schedule S shall be given service priority for deliveries up to 250 MW ; provided that Southern Companies shall have the right to displace the amount scheduled under this Service Schedule over 250 MW by giving FPL 45 minutes prior notice of its intent use to the Southern Companies-SCE&G interface for economy energy transactions or other power and energy transactions which Southern Companies consider in their interest. It is understood that the above-specified 250 MW priority shall expire at the end of the operative 90-day term of power and energy delivery hereunder and shall not apply in.the event of extensions to allow the delivery of the quantities of energy specified in the SCE&G Agreement.

Section S3.4 -

Safety and Reliability Limitations cn Purchases and Deliveries: Purchases of power and energy by the Southern Companies for the purpose of making power and 1

c .

1 \

l energy available under this Service Schedule S and the i

delivery thereto to FPL shall be subject to and.-limited by the availability of transmission: capability of the electric.-

systems ~of the Southern Companies (including the capability-of interconnection points with SCE&G and Florida) consistent l with the safe and reliable operation of the Southern Companies' electric systems. SCS, acting as agent for

] Southern Companies, shall have- the sole discretion to I

determine the necessity for curtailment or interruption of delivery of energy purchases from SCE&G for contemporaneous delivery to FPL due to safety and reliability considerations on Southern Companies' electric systems. Such sole j discretion shall be exercised by SCS on the basis of information available to it at the time considering normal

operating criteria and standards. In this connection, it is 4

understood that safety and reliability considerations may occasion interruptions or limitations of delivery under this Service Schedule S to accommodate emergency energy purchases or deliveries over the Southern Companies-SCE&G interface, i

. ~

l Section S3.5 - Curtailment and Resumotion of Service: If a safety or reliability condition requiring curtailment under i

this Service Schedule S occurs, Southern Companies shall notify FPL and SCE&G thirty (30) minutes in advance, if possible, otherwise as early as practicable, of the need to curtail, and shall cooperate with FPL and SCE&G in the i

i i

j i

rearrangement of purchase and delivery schedules. Southern Companies agree that it shall only curtail service to the extent and for the period of time necessary to alleviate the safety and reliability condition. If partial service can be provided, then Southern Companies shall provide such partial service and restore service to the previously scheduled

-levels as soon as practicable.

Section S3.6 -

Delivery of Energy to FPL to be Net of Incremental Transmission Losses: The Southern Companies will develop the energy deliveries schedule to FPL based on a projection of incremental losses which will be made on the day preceding the date for actual delivery. Projections for '

losses for longer periods of time will be made as required for weekends and holidays. The projections of losses will be based on the incremental transmission losses determined using the existing algorithms of the Southern Companies to determine the incremental losses due to transactions under this Service Schedule. The total incremental losses thus determined for each hour of the projected period will be converted to average incremental losses for a minimum of two time periods a day. These time periods are expected to consist of the hours beginning 7:00 a.m. a'nd ending 10:00 p.m. designated as the peak period and for the hours beginning 10:00 p.m. and ending 7:00 a.m. designated as the valley period (prevailing Central Time), or such other time

- 10 -

L

t s

periods t.s may be mutually agreed upon by th'e operating representatives. The Southern Companies will be responsible for monitoring the actual ~ incremental losses- and mcking appropriate corrective adjustments in accordance with I

!~ procedures agreed upon by the operating representatives, in order to assure that FPL receives all of the energy to which-it is entitled in the appropriate time frames. The percent

incremental transmission losses determined as described herein will be applied to the hourly schedules for receipts i

from SCE&G to determine the hourly schedules of deliveries to FPL. Any adjustments to the schedule during the day will be handled by the operating representatives.

1

.; Section 53.7 -

Communications between Parties: The 1

Operating Committee, created pursuant to Article IX of the l

contract, shall agree on procedures and time periods to effect the notifications contemplated by this Article III and to coordinate the orderly schedule of power and energy

by Southern Companies, FPL and SCE&G. ,

i ARTICLE IV - BASES FOR SETTLEMENT j Section 54.1: FPL shall pay Southern Companies for the power and energy and other services provided hereunder, an j amount equal to the amounts required to be paid as described ~

f in Section S4.1.1 by Southern Companies to SCE&G under the 1

1 i

!~

i

SCE&G Agreement plus the amounts specified in Sections S4.1.2 and S4.1.3.

Section S4.1.1 -

Payment for Cost of Power and Energy Purchdsed from SCE&G: FPL agrees to pay Southern Companies, for the power and energy provided hereunder, the total amount invoiced to Southern Companies by SCE&G under the SCE&G Agreement, subject to any bona fide disputes covered by Section S4.3. In this connection, FPL agrees to pay an amount equal to all charges and costs incurred by Southern Companies under the SCE&G Agreement including all power and energy charges, minimum energy charges, generating unit

, start-up charges, carrying charges for coal, damages, 1

penalties or charges for failure to take energy pursuant to the terms and conditions thereof and any late payment i

charges or interest on disputed invoices attributable to 3 late payment by FPL to Southern Companies; provided, however, that such late payment charges, damages or penalties did not arise due to Southern Companies breach of its obligations under this Service Schedule S.

Section S4.1.2 -

Payment for Delivery of Power and Energy Purchased from SCE&G: If, during any given hour, the sum of (i) the power TAW) scheduled by SCE&G to Southern Companies

pursuant to the SCE&G Agreement, (ii) the power (MW) scheduled by Southern Companies to FPL pursuant to Service

l t

5 Schedule'"E" of the Contract (" Schedule E") , and (iii) the

{ power (MW) scheduled by Southern Companies to FPL pursuant l'

I to the UPS Contract (including any power (MW) scheduled

)i pursuant to a contemplated " Replacement Energy Schedule" to  !

the Contract) exceeds 2018 MW, FPL shall pay Southern J

Companies at the rate of $3.00/MWH for each MW scheduled a

j during such hour in excess of 2018 MW; otherwise FPL_shall

?

pay Southern Companies at the rate of $1.50/MWH ' for . energy ,

I

] scheduled pursuant to the SCE&G Agreement not in excess of 2019 MW. Examples showing the application of this payment i

j provision are set forth on - Attachment 1 to this Service <

t Schedule, which attachment is incorporated herein by

~

i re f e ren.ce . The examples will govern the interpretation of

)1 this provision.

I

)

j Section S4.1.3 -

Minimum Payments for Priority Service and 4

Earlv Termination of the SCE&G Agreement: In consideration J

l of the service priority established in Section S3.3.2, FPL j agrees, during the operative 90-day term of this Service

Schedule S, to make a minimum payment under Section S4.1.2 of $450,000 to Southern Companies for delivery of energy purchased from SCE&G. In the event that the SCE&G Agreement i

expires by its terms during the operative 90-day term, or is L

{ terminated during such 90-day term with the mutual consent a~

of FPL, the minimum payment hereunder shall be (i) $5,000

  • i i

i per day multiplied by the number of days the SCE&G Agreement j

i  ;

l

}

l - l I

i i.

was in effect before early expiration or termination, minus (ii) the total amount paid by FPL to Southern Companies under Section S4.1.2, plus (iii) $75,000. If the result of (i) minus (ii) is equal to or less than zero then, for the purpose of this calculation only, the minimum payment for early expiration or termination shall be S75,000.

Section S4.2 -

Presentation and Pavnent of Bills for Services: Charges in the amounts determined in accordance with Sections S4.1.1, S4.1.2 and S4.1.3 for each monch shall be stated in an original invoice presented by Southern Companies to FPL at least two work days before payment is due. For information purposes, a copy of such-invoice may be transmitted by Southern Companies to FPL on or befcre the 10th day of the next month by means of telecopier or other similar communication device followed by delivery to FPL of the original of such telecopied invoice as specified above.

On or before the. fifteenth (15th) day of the next month, FPL shall make payment to Southern Companies in accordance with the invoice in immediately available funds through wire transfer of funds or other mutually agreeable method of payment with the understanding that such funds are to be in the possession of Southern Companies by 10:00 a.m.

(prevailing Central Time) on such fifteenth day. If the fifteenth day falls on a Saturday, Sunday or holiday, the due date will be established in advance by mutual agreement

. t of the Operating Committee. Payments of charges not made when due shall accrue interest at One Hundred Five Percent i

(105%) of the prime rate quoted on the date due by ,

Manufacturers Eanover Trust Company in New York, New York 3 computed from the due date to the date of payment (a day '

shall equal one-thirtieth of a month). In the event of the insolvency of any of the Southern Companies or proceedings J

against Southern Companies under the bankruptcy laws, FPL shall have the right to make the payments called for by 7 Section S4.1.1 directly to SCE&G.

t Section S4.3 - Discuted Invoice: In case any portion of an invoice submitted pursuant to Section S4.2 is in bona fide dispute, the undisputed amount shall be payable when due; and the remainder shall be paid promptly,. upon the determinaticn of the correct amount, in accordance with Sections 54.1.1, S4.1.2 and S4.1.3, including interest at lr One Hundred Five Percent (105%) of the prime rate quoted on t i

the date due by Manufacturers Hanover Trust Company in New York, New York, computed from the due date to the date of payment (a day shall equal one-thirtieth of a month) . Upon request by FPL, Southern Companies shall provide copies of

. supporting documentation and records necessary to verify invoices whether disputed or undisputed.

d

- - , . , - , , . - , , . , . - - ~ , . -

e Section S4.4 - Waiver and Assignment: FPL hereby waives all .

rights of recovery against the Southern Companies, their agents, servants or employees for any losses, expenses, costs or damages of any nature (including incidental and

  • i  ;

, consequential damages) arising out of the failure by SCE&G ,

s to deliver or schedule any of the power and energy under the $

SCE&G Agreement or for any other breach or omission by SCE&G i

which causes a breach of obligations under this Service Schedule. If requested by FPL at the time of any breach or failure by SCE&G, Southern Comanies shall assign to FPL, r

4 without recourse, any rights which Southern Companies have under the SCE&G Agreement with SCE&G so as to permit FPL to i

proceed directly against SCE&G for any such losses,

expenses, costs or damages experienced by FPL; provided, ,

J however, FPL shall save harmless and protect Southern 4

Ccepanies from and against any costs, losses or expenses, 1

including attorney's fees, associated with or arising out of any such assignment or proceeding.

  • ARTICLE.V MISCELLANEOUS PROVISIONS t

Section SS.1 -

Reculatory Approvals: FPL and Southern Ccepanies recognize that this Service Schedule S and the SCE&G Agreement are required to be filed with certain regulatory agencies including the Federal Energy Regulatory i

._ ,. . , - , , . _ . . - - . - y _ _ , . ,,...c.,, ,, .. _ -- .-_ .-

.l . 4+, L g

! i Commission. To such end, the Southern ' Companies agree . to .

s l

take steps promptly to file this Service Schedu'16 with the j Federal Energy Regulatory Cemnission ("FERC"). Southern (

Companies shall also request a waiver of the notice i

I requirements of the Federal Power Act and Section 35.3 of  !

i FERC's regulations to the extent necessary to allow this  :

F i

Service Schedule to become effective as early as June 1, 1985. FPL agrees to cooperate and assist Southern Ccepanies i

i in securing conclusion of any review by FERC of this Service

[ -[

t schedule S without significant change , hereto, in an [

expeditious manner.

J l t

l

+

i Section S5.2 -

FPL Responsible for Deliverv into Florida: '?

k

< It shall be the sole responsibility of FPL to arrange 4ts .

i 1

receipt of energy under this Service Schedule 5 at tne [

i- Scuthern Companies - Florida interface. >

In this connection, (

l TPL shall be respcnsible for any arrangements with other i e

l 4

Florida utilities necessary to allow transfers of energy {

4 4

contemplated under this Service Schedule 5,  !

1 l

l Section S5.3 -

Adoption by Reference of Prcvisions of the

! -i j Contract: Except as specifically ctated in this Service  !

4 Schedule S, the provisions of the Ccntract shall apply to

-! purchases and deliveries contemplated by this Service t

t Schedule S; provided, however, that in the event 'of any

, inconsistency between the provisions cf such Centract and [

I i (

17 - ,

i

' f

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

+ s

- '. ..s.

this Service , Schedule S, the provisiens of this Service Schedule S shall govern.

Section S5.4 - This Service Schedule.Not to be a Precedent .

for Future Transactions: By pxecuting this Service Schedule, the parties shall not be deemed to have agreed on any method of priping, energy priority _ or ratemakir.g i principic for the purpose,5 of .f ut.u re contractual i negotiations or with respect to any future regulatory or 1

court proceedings regarding future contractual r. elations c

hetween them, nor shall a,ny of the parties be pre'judiced t j with respect to any cosition t.h tt uny of then ma y desire to

't i

take in any such future contrace' negotiations or proceedings  !

invclving such future cont aetual relatiensnips.

i

(The next pcga is the signeture I i,

page, page 19.]

4 1

  • 4 4

I 2

l

  • l i 4

i i

1 t t

j e r

1 h

! +

. . . . . , . _ . . . . _ . . . . _ _ . , . . . _ , . . , _ , _ . , _ , , . . . . . . . _ , , , . . , , _ , _ , _ . . , , . _ . . . ..,_,,,,,-.......,-.._m ._ ,,___ .

. t In WITNESS WHEP.ECF, the parties her'eto have caused this .

Servico Schedule 5 to be executed by their duly tuthorized i officers isffectivo as of the date first set -! orth abcve.

A?f23n E'LORIDA PWER 4 LIGHT COM7A*1Y

!3 l/

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,1

% a Ey7) L. 415 ward MUICI SECRITARY droup Vica President Date: May 1, 1995 ATTEST: SOUT5iERN COMPANY SERVICIS, INC. L i

/

w_ sdU BY_ zh-1

% E. C..Usry

  • /. ice P:esident g'

Date: Ma y tu ;955 , ,

ATTESI: ALABAMA POWE.R COMPANY ,

4 6/ t. 7 M v By dfd-D E -z

[

R. E.~ Mutiman' VITE Presider.t l Cate: May 1, 1935 ATTEST: GEORGIA POWEP, COMPANY i

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) D Jrec 0. Mit1iais G t ,! - *

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Vice President  ;

Date: Mav 2, 1935 1

ATTEST
3 GULF POWER COMPANY
f. w >t b EJ <Au B y.

E, B.

[$. Jr.c.>

b.dParter.s, Q v

~/ ice Pre.3Lder.t .

Date; May 1, 19ET .

ATTEST:

' MIS 5ISE!P.PI POWER CD.MPAN? (

lt (  !

s & O ,0, % - e r._ ,i / .< c -

H. E. ~3 ell, - Jr, '- Vice Presiden Date; VW 1. 1985 '

, r 6

h i

t

.m , e. .ae ~ . , ,,-,-,-c. , - . , - - , , . . , , ,e,-+, e , s ,

m. . __ _ . _. . . . . _ _ ,

J Attachrent l' i

. .. )

! . f

. Examples of; Payment Provisions i

Eervice Schedule S Sectiert S4.1.2 Exa:cple 1 .

Example 2 Example 3 I,

Transacti n Tvee (XWh) (MWh) (MWhl CPS 1411 1618 1718 t

Sched le I 300 3C0 300

(

Socthorn Purchase 300 3OC 300 F t= SCE&G

__ __ .. l TOTAL 2018 227.8 231'8 t

i Schedule T3 FPL j --

(MWh) - -

frJh) - JWh)

UPS 1418 ISIS

[ 1718 Schedule E 300 100 '

300 Schedcle s 270 270 270

( .'te : 10% Lesses) 00*!A1. 1925 j 218~3 2288 t i e

Pay ent Cue Under 3 SectiOn 54.1.2 - (MWh) ( 5 / F.Wh ) (MWh) .(S/MWn) (Mwh) (S/Mwh)t l -

f 100 1 1.50 100 J 1.50 03 1.50 0! 3.00 200 3 3.00 300 3 3.00

. _________ . _ _ . t T~TAL $ 450.40 5 750.00 $ 900.00 '

.;- l

I' - o CERTIFICATE OF CONCURRENCE

  • i -

~-

' This is to certify that Alabama Power Company, Georgie

' Power Company, Gulf Power Company, and MisElssippi Power Ccitpany assent to and concur in the rate schedule described below, which Southern Company Services, Inc., hcs filed and

< hereby filing file this of the rate certificate of concurrence in lita 9f the schedule specified: ,

Service Schedule S dated May 1, 1985, to the Interchange Contract between Florida Power & Light Company and Alabaca Power Ccmpany,, Georgia PcWer Company, Gulf Power Company, Mississippi PoWar Company, and Southern Company Services, ,.

Inc., dated October 18, 1979.

SOUTMERN COMPANY SERVICES, I ;C .

i Oy_ & -

I<ccert O. Usry /e Vice President /

As the rcpresentative of ALABAMA POWER COMPANY GEORGIA POWER COMPANY

, GULF POWER CCMPA';Y MISSI5S:'PFI PC'</ER CCMPA:Pt i

I l

Dated: May 1, 1985 '

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Nashingten, D,C, 20426 /---

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Attention: Mr. K6nneth P. Plumb, I Secretary .

Re. ;

Filing od Service Schedule S tc InterchangG Ccntract between Florida Pawar t. Light 4

t Company and Southern Ccmpanies 4

Dear Sirs:

i 37 ccver cf thic letter, we are nereby 2

transmitting for filing en behalf of Soutnern Ocmpany Services, Inc. PSCS"), acting as agent for Alabama Power

, Co=pany, Cecrgia Power Compar.y , Gulf Power Company a- d Mississippi Power Company ("Scuthern Cocpanies"), Service Schedule S to an Interchange Contract between Florida Pcwer '

i

& Light Comp &ny ("FPL") and Southern Companies. Six copies of this letter of transmittsi, ServicG Schedula 3 and other supporting materials are enclosed.

3 On October 18, 1979, FPL and Scuthern Companies i

entered into an initial interchange contract, purausnt to j

j which the parties agreed ';o establish a direct intercon- 1 nection between the electrical facilities of TPL and Georgia Pcwer Ccmpany. The electrical interconnection was ecepleted  !

and the parties have subsequently unended the interchange  !

contract by amend.-onts dated February 19, 1981 and July 23, 1991. The interchange contract incorporates several servica sch*dules which provido for emorgency assistance, short tsr:

power supply, economy transactions and long  ;

sales. The parties new propose to add the enclosed term power 1 Service Schedule 3 to the interchango contract. l i

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

. SAL.CH & SINGH AM

a.

May 7, 1985 +

Page 2

  • f.

1 The enclosed Service Schedule S should be

avaluated in connection with a short term power sales -

l

. agreement executed by Southern Companies and South Carolina Electric & Gas Ccmpany ("SCE&G") which agreement is being filed on this same date by SCE&G. Service Schedule S sets forth the terms, conditions and rates under which Southern  ;

l Ccmpanies agreed to purchase energy from.SCE&G at points of i

j direct interconnection between Georgia Power Company and ,

SCE&G and contemporaneously deliver equivalent amounts of l

power FPL.

and Thus, energy (net of incremental transmission losses) to Southern Companies will purchase power and e

' energy frcm SCE&G under the short term power sales agreement and will contemporaneous 1y sell and deliver such power and energy 1

i under the enclosed Service Schedule- S. Tnis

transacticn delivery butisnoscheduled later thantoJuly commence 1, 1985. onItthe date of first ',

is anticipated j

that the purchase of power and energy from SCE&G and the contemporaneous sale and delivery to FPL could commence on a  :

a date as early as June 1, 1985. Accordingly, SCS requests 4

that the enclosed effective as early as Service June Schedule 1, 1985. S be allowed to become r f

1 f

The term of Service Schedule S shall be ninety l i days frer FPit provided, the date of firct delivery of power and energy to i i

that the service schedule is subject to j resscnabl.e extensions at the option of TPL to allow delivery  ;

' cf specified anounts of energy from SCEsG, but in no event shall the tsr= extend beyond November 30, 1985.  !

! The rates for services provided by '

Southern Ccmpanies to TPL are set forth in Sections S4.1.1, S4.1.2

- and 34.1.3 of the enclosed Service Schedule S. FPL agrees to pay Southern Ccepanies for the , power and energy purchased from SCE&G. Generally, FPL agraes to pay $1.50/MWH for del:very of energy from SCEGG so long as total energy schedules by FPL do noc exceed 2018 MW. If more than 2018  !

MW is schedaled during any hour, the energy in excess of i such amount shall be delivered at a rato of S3.00/MWH. The  :

1 service s:nadule also contains coetain minimum payments for '

i pricrity position to tho Southerr Companies-SCE&G. interface.

The rates are Companies and a pr: duct of negotiation between SJuthern FPL; i i

howevet, basic cost 'cupport for the l

transm:. scion delivery rates is cet forth in Exhibit A to tnte lettor. l c

1 i

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BALCH & BINGH AM May 7, 1985 Page 3 Due to the general inapplicability of the Commission's regulations for the filing of this Service Schedule to the Interchange Contract, SCS requests a waiver '.

of any additional filing requirements prescribed by either Section 35.13 or 25.12 of the Commission's regulations. In additien, SCS requests waiver of the notice requirements of Section 35.3 of the Commission's regulations to the extent necessary to allow this service schedule to become effective as early as June 1, 1985. In support of this request for waiver, it is noted that the transaction is to the benefit l

of FFL and its customers and will provide FPL with a lcw cost energy source during the term of Service Schedule S.

Accordingly, representatives of FPL are anxicus to have the contracts made effective as soon as possible. "

The following is a list of documents submitted with this diling:

(a) Service Schedule S to interchange centract between FPL and Scuthern Companies dated May 1, 1985.

(b) is fern of notice suitable for publication in the Federal Pegis te r as required by Section 35.8 of the Ccemissien* s Rule.s anzi Regulations.

(c) Certificate of concurrence issued on behalf of Alabama Power Co.peny, Georgia Power Company, Gulf Power Ccepany and Mississippi Power Company.

(d) of Flcrida PowerCertificate of Concurrence issued on behalf

& Light Company.

(e) Check of Scuthern Sc=pany Services, Inc. in the amount of S700 made payable to the Treasurer of the United States as required by Section 36.2fe) and (f) of the Cc mission's regulations. This sum reprer.ents 5500 for the filing by Southern Company Services, Inc. and S100 each for the concurrences of Southern Ccmpanies and FPL. ,

(f)

Exhibit A to this letter of transmittal which provides cost support for the transmission delivery rates incorporated in Service Schcdulo S, Authority for the f111ng of the enclosed Service Schedule S :: the interchange centract and certificate of

BALCH & SINGHAM May 7, 1985 Page 4 l

Concurrence of Southern Companies is evidenced by letter to the Federal Power Commission dated November 19, 19C3 as signed by Alabama Pcwer Compatty, Georgia Power Company, Gulf Power Company and Misr'ssippi Power Company, together with a letter dated December 27, 1963 from tne Secretary of the 1

Federal Power Commissi.a to each of these companies.

All recuisite agreement to Service Schedule S to the interchange contract and the filing thereof is evidenced i

by the parties' execution of the service schedule and the enclosed Certificates of Concurrence. No ne<< facilities are to be installed to effectuate the transaction provided for in Service Schedule S to the interchange contract.

Should additional information be required, it is requested that the undersigned or Mr. Robert G. Dawson, Southern Ccmpany Services, Inc., P. O. Box 2623, Birmingham, Alabama 35202, Telephone No. (205) 870-6644, t,e contacted.

Yours very truly, BALCH & Bil;GHAM

~

By Rodney O. Mundy v' l

ROM /mn Enclosures 1

cc: Mr. R. E. Huffman Alabama Pcwer C0mpany ,

P. O. Box 2641 l Birmingham, Alabama 35291 1

Mr. Fred D. Willines Georgia Power Ccmpany .

P. O. Scx 4545 i

1 Atlanta, Georgia 30302 l Mr. E. B. Parsons, Jr.'

i Gulf Power Company .

P. G. Dox 1151 Pensacola, ricrida 32520 l

, batch & BINGHAM V

, t i May 7, 1985 '

Page 5 Mr. H. H. Bell, Jr.

~ Mississippi Power Ccmpany P. O. Box 4079 Gulfport, Mississippi 39501 e

i Mr. R. O. Usry -

Southern Company Services, Inc.

3' P. O. Box 2625 .

Birmingham, Alabama 35202 l i

j Mr. J. L. Howard  !

I Mr. Charles Ballard Florida Power & Light Company

} ' 9250 W. Flagler Street '

Miami, Florida 33174 Ms. Pat Marcostsis South Carolina Electric & Gas i

320 Main Street i Columbia, South Carolina 29218
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Exhibit A CHARGE FOR DELIVERY OF ENERGY PURCHASED BY i

THE SOUTHERN COMPANIES FROM SOUTH CAROLINA ELECTRIC & GAS AND RESOLD TO

-FLORIDA POWER & LIGHT COMPANY JUNE-DECEMBER, 1985 1

S3.00/MWH for scheduled power exceeding 2,018 MW as explained in Section S4.1.2

$1.50/MWH for scheduled power not in excess of 2,018 MW as explained in Section S4.1.2 The abov'e stated charges resulted from negotiations between the Southern Companies and FPL.

The basis for the above-stated charges is as follows:

POWER FLOU ALLOCATION S/KW-YEAR S/MWH FACTORS i COMPANY W/O LOSSES S/MWH (UITH ADDER) PERCENTAGE S/MWH (1) (a) (2)(b) (3) (c) (4) (d) (5) (e)

<C 11.208214 1.279 J.(y' . 2 7 9 PC 13.2 .301 16.724855 1.909 2.909 GULF 10.540542 1.203 97.2 2.52?

MPC 2.203 4.8 .106 8.667737 0.989 1.989 4.2 .084 3.319 Rounded to $3.00/MWH S/KW-YEAR CURRENT UNIT POWER SALES PEAK PERIOD COMPANY W/O LOSSES LOAD RATIOS TRANSMISSION CAPACITY RATES (1) (a)

-- S/KW-YEAR (2) (a) (3)

APC 11.208214 32.52 GPC 16.724855 3.645 54.14 9.055 GULF 10.540542 6.31 MPC 8.667737, 0.665 7.03 0.609 13.974 = 1.595/MWH (b)

-Rate with credit for current UPS transmission charges =

S3.319/MWH-31.595/MWH = S1.724/MWH Rounded to S1.50/MWH (See - Page 2 for footnotes) y

~'

(a) Refer to Southern Company Services, Inc., 1985 Informa-tional Filings --

Unit Power Sales Agreements, Transmission JUNE-DECEMBER.

(b) Conversion using a 100% load factor.

(c) S1/MWH adder for difficult to quantify costs as described in Order No. 84.

(d) Ratios reflect the impact on each company's trans- ~

mission system resulting from the purchase of power

' from SCE&G and delivery to FP&L.

(e) Column 3 x Column 4.

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-2 -

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Southern Company Services, 1 Docket No.

Inc. )

NOTICE OF FILING OF SERVICE SCHEDULE S T.O AN INTERCHANGE CONTRACT BETWEEN FLORIDA POWER & LIGHT COMPANY AND SOUTHERN COMPANIES Take notice that Southern Company Services , Inc.

on behalf of Alabama Power Company, Georgia Power Company, Gulf Power Company and Mississippi Power Company (" Southern Companies"), tendered for filing Service Schedule S to an interchange contract between Florida Power & Light Company and Southern Companies.

Service Schedule S sets forth the terms, conditions and rates under which Southern Companiec agree to deliver power and energy purchased from South Carolina Electric & Gas Company for contemporaneous sale and delivery to Florida Power & Light Company. The term of Service Schedule S shall be ninety days from the date of first delivery of power and energy to FPL with first deliveries expected to occur as early as June 1,

.385, but no later than July 1, 1985. Service Schedule S is subject to reasonable extensions to allow delivery of specified amounts of power energy purchased by Southern Companies from South Carolina Electric & Gas Company, but in no event shall the term of the schedule extend beyond November 30, 1985.

Any person desiring to be heard or to protest such should filing file a petition to intervene or protest with the Federal Street, Energy Regulatory Commission, 825 North Capitol N.E., Washington, D.C. 20426, in accordance with Rules 211 and Procedure (18 214 of the Commission's C.F.R. SS 3 8 5. 2 L1, Rules of Practrice and petitions or 385.214). All such protests should be filed on or before Protests are considered by the Cornissica to determine the appropriate action to be taken but will not serve to make protestants parties to the proceeding. Any person wishing to become a party must file a petition to intervene. Copies of this application are on file with the Cornission and are available for public inspection.

i;ennetn F. Plumo, Secretary

CERTIFICATE OF CONCURRENCE This is to certify that Florida Power & Light Company assents to and concurs in the service schedule described below, which Southern Company Services,Inc. has filed, and hereby files this certificate of concurrence in lieu of the filing of the rate schedule specified:

Service Schedule S between Florida Power & Light Company and Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Company Services, Inc. dated May 1,1935, such service Schedule S being a new schedule to an Interchange Contract dated October IS,1979, as subsequently amended on February 19,1981 and July 23,1931, among the same parties.

FLORIDA POWER & LIGHT COMPANY By: 8-d*ES C/ L. Fidward Date Group Vice President i

Dated: May 6,1935 G

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"" -<- ve:::::=r - September 26' 1985

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I Federal Express Federal Energy Regulatory Commission 825 North Capitol Street, N.E.

Washington, D.C. 20426 Attention: Mr Kenneth F. Plumb, Secretary Re: Filing of Extended and Revised S'rvice e Schedule S to an Interchange Contract between Florida Power & Light Company and Soutnern Companies

Dear Sirs:

By cover of this letter, we are hereby transmitting for filing on behalf of Services, Inc. ("SCS"), Southern Company Company, Georgia Power Company, Gulf acting as agent for Alabama Power ,

Power Com and Mississippi Power Company (" Southern Companies") , pany Extended-and Revised Service Schedule S to an interchange contract Companies.Florida Power & Light Company ("FPL") and Southern between Six copies of this letter of transmittal, Extended and Revised Service Schedule S and other supporting t

materials are enclosed.

Extended and Revised Service Schedule S replaces Service Schedule S to the interchange contract between FPL and Southern Companies. Service Schedule S was filed with the Commission on May 7, 1985 and by letter order dated June 24, 1985 in Docket No. ER85-491-000 this Commission accepted Service Schedule S for filing and allowed it to become i

' effective on ' June 1, 1985. By letter dated - September 23, 1985, Southern Companies filed a letter agreement extending i

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BALCH & BINGH AM September 26, 1985 Page 2 i

the term of Service Schedule S. The enclosed Extended and Revised Service Schedule S will replace Service Schedule S and the letter agreement extending Service Schedule S.

Some background information may M appropriate.

Service Schedule S set forth the terms, conditions and rates under which Southern Companies agreed to purchase energy from South Carolina Electric & Gas Company ("SCE&G") at points of direct interconnection between Georgia Power Company and SCE&G and contemporaneously deliver equivalent amounts of power and energy (net of incremental transmission losses) to FPL. Service Schedule S was a companion agreement to a Short Term Power Sales Agreement executed by Southern Companies and SCE&G which was filed on the same date as Service Schedule S. Thus, under the provisions of the Short Term Power Sales Agreement with SCE&G and Service Schedule S with FPL, Southern Companies purchased power and energy from SCE&G and contemporaneously sold and delivered such power and energy to FPL. The original term of Service Schedule S has expired and the parties are now continuing the transactions contemplated thereunder pursuant to the letter agreement filed with the Commission on September 23, 1985.

herewith, The Extended and Revised Service Schedule S filed was made necessary because the Jacksonville Electric Authority ("JEA") desired to participate in the transaction with SCE&G. Consequently, SCE&G entered into an E : tended and Revised Ghort Term Power Sales Agreement with Southern Companies which will allow delivery of energy to both FPL and JEA. This extended and revised agreement is being filed on this same date by SCE&G. In order to accommodate purchases by Southern Companies from SCE&G for contemporaneous delivery to JEA, it was necessary for Southern Companies to enter into a new Service Schedule S with JEA and to revise the service schedule with FPL. It should be noted that Southern Companies is filing under cover of separate letter, on this date, the new Service Schedule S to the interchange contract between JEA and Southern Companies.

The rates for delivery of energy from SCE&G to FPL have not been changed and are identical to the rate t

incorporated in the original Service Schedule S. 3 1

1

[, BALCH & BINGH AM September 26, 1985 -

Page 3 Due to the general inapplicability of the Cornission's regulations for the filing of this' Extended and Revised Service Schedule S to the interchange contract, SCS requests a waiver of any additional filing requirements prescribed by either Section 35.13 or 35.12 of the Commission's regulations. In addition, SCS-requests waiver of the notice requirements of Section 35.3 of the Cormission's - regulation to the extent necessary to allow this -service schedule to become effective as early as September 28, 1985. In support of this request for waiver, it is noted that the transactions contemplated are to the benefit of FPL, JEA and their customers and will prcvide both of these parties with a low cost energy source.

Accordingly, representatives of FPL and JEA are anxious to have the contracts made effective as soon as possible.

The following is a list of documents submitted with this filing:

(a) Extended and Revised Service Schedule S to an interchange contract between FPL and Southern Companies.

(b) A form of notice suitable for publication in the Federal Register as required by Section 35.8 of the Commission's Rules and Regulations.

(c) Certificate of Concurrence issued on behalf of Alabama Power Company, Georgia Power Company, Gulf Power Company and Mississippi Power Company.

(d) Certificate of Concurrence issued on behalf of Florida Power & Light Company.

(e) Check of Southern Company Services , Inc. in the amount of S700.00 made payable to the Treasurer of the United States, as required by Section 36.2(e) and (f) of the Cormission's regulations. This suns represents S500.00 for the filing by Southern Company services, Inc. and $100.00 each for the concurrences of Southern Companies and FPL.

Authority for the filing of the enclosed Extended and Revised Service Schedule S to the interchange contract and Certificate of Concurrence of Southern Companies is y T- P---'--

BALCH & BINGH AM September 26, 1985 Page 4 evidenced by letter to the Federal Power Commission dated November 19, 1963 as signed by Alabama Power Company, Georgia Power Company, Gulf Power Company and Mississippi Power Company, together with a letter dated Decerber 27, 1963 from the Secretary of the Federal Power Commission to each of these companies. .

, Should additional information be required it is requested that the undersigned or Mr. Robert G. Dawson, Southern Company Services, Inc., P. C. Box 2625, Birmingham, Alabama 35202, Telephone No. (205) 870-6644, be contacted.

Yours very truly, BALCH & BINGHAM

, m f By I- /L . - /

Rodney Oj. Munciy /

Enclosures cc: Mr. R. E. Huffman Alabama Power Company P. O. Box 2641 Birmingham, Alabama 35291 Mr. Fred D. Williams Georgia Power Company P. O. Box 4545 Atlanta, Georgia 30302 Mr. E. B. Parsons, Jr.

Gulf Power Company P. O. Box 1151 Pensacola, Florida 32520 Mr. H. H. Bell, Jr.

Mississippi Power Company P. O. Box 4079 Gulfport, Mississippi 39501 1

BALCH & BINGH AM -

J September 26, 1985 Page 5 Mr. R. O. Usry Southern Company Services, Inc.

P. O. Box 2625 Birmingham, Alabama 35202 Mr. J. L. Howard -

Mr. Charles Ballard Florida Power & Light Company 9250 W. Flagler Street Miami, Florida 33174 Ms. Pat Marcotsis Smith South Carolina Electric & Gas 320 Main Street Columbia, South Carolina 29218 Mr. R. A. Basford Jacksonville Electric Authority 233 West Duval Street Jacksonville, Florida 32201 i

l l

ARTICLE I - DEFINITIONS AND PURPOSE Section S1.1: The purpose of this extended Service Schedule is to set forth the terms and conditions under which Southern Companies agree to purchase energy from South Carolina Electric & Gas Company ("SCE&G") at points of direct interconnection between GPC and SCE&G, 'and contemporaneously deliver equivalent amounts of power and energy (net of incremental transmission losses) to FPL.

Section S1.2: " Contract" shall mean the Interchange Contract between FPL and the Southern Companies dated October 18, 1979 as subsequently amended on . February 19, 1981 and July 23, 1981.

Section S1.3: " Revised SCE&G Agreement" shall mean the Short Term Power Sales Agreement between South Carolina Electric & Gas Company and Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Company Services, Inc. dated September 2M ,

1985.

Section 51.4:

"UPS Contract" shall mean the Amended and Restated Unit Power Sales Agreement between FPL and Southern Companies and SCS dated February 18, 1982, as amended. '

n-- -

EXTENDED AND REVISED SERVICE SCHEDULE S FOR DELIVERY OF POWER AND ENERGY FROM SOUTH CAROLINA ELECTRIC & GAS COMPANY BETWEEN ALABAMA POWER COMPANY, GEORGIA POWER COMPANY, GULF POWER COMPANY, MISSISSIPPI POWER COMPANY

, AND SOUTHERN COMPANY SERVICES, INC.

AND FLORIDA POWER & LIGHT COMPANY Section 50.1: This Extended and Revised Service Schedule S (hereinafter referred to as " Service Schedule S" or

" extended Service Schedule S") is executed and entered into this jd day of September, 1985 and is a part of and incorporates the applicable provisions of the Interchange Contract dated October 18, 1979, between Florida Power &

Light Company ("FPL") and Alabama Power Company, Georgia Power Company ("GPC"), Gulf Power Company, Mississippi Power Company and Southern Company Services, Inc. ("SCS")

collectively referenced herein as the (" Southern Companies").

a

Section S1.5: "JEA Service Schedule S shall mean the Service Schedule S between Jacksonville Electric Authority (dJEA") and Southern Companies executed and entered into on date even with this extended Service Schedule.

ARTICLE II - TERM Section 52.1: The term of this extended Service _ Schedule S shall be concurrent with the Revised SCE&G Agreement, such Agreement having been entered into by and between SCE&G and Southern Companies on date even herewith. It is agreed that power and energy deliveries under the Revised SCE&G Agreement and contemporaneous deliveries under this extended Service Schedule S and JEA Service Schedule S shall commence on the date of the first scheduled delivery of power and energy under this extended Service Schedule, and that power and energy delivery shall continue in effect until December 31, 1985 or until a total of 1000 GWH has been received by Southern Companies from SCE&G under the Short Term Power Sales Agreement between Southern Companies and SCE&G dated May 1, 1985 (and extensions thereof) and the Revised SCE&G Agreement, whichever occurs first. In the event of termination or expiration of this extended Service Schedule -

S, FPL shall not be relieved of its obligations under Sections S4.1.1, S4.1.2 and S4.1.3 hereo'f to pay Southern Companies for energy purchased from SCE&G pursuant to the

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  • terms of the Revised SCE&G Agreement or any other obligations incurred by FPL under this extended Service Schedule S.

ARTICLE III - SERVICES TO BE RENDERED Section S3.1: - Description of Service: Sot thern Companies, on date even herewith, entered into the Revised SCE&G Agreement and JEA Service Schedule S which provides for the purchase and receipt of power and energy by Southern Companies for contemporaneous sale and delivery to FPL and JEA. FPL and JEA participated with SCS in making arrangements with SCE&G for the purchase of power and energy by Southern Companies and the terms and conditions of the Revised SCE&G Agreement attendant to such purchase. FPL acknowledges and consents to all of the terms and conditions of the purchase arrangement between Southern Companies and SCE&G as set forth in the Revised SCE&G Agreement, including but not limited to provisions related to amount of purchase, minimum energy scheduling in peak and off-peak hours, designation of generating units, restrictions on generating units, energy credits, liability for start-up costs, priorities of energy delivery, term, schedule of delivery, basis of billing and settlement and - all other commitments stated therein.

This extended Service Schedule S sets forth the terms, conditions and limitations attendant to the

-~

contemporaneous-purchases and deliveries of power and energy and the terms of payment by FPL for services provided hereunder by Southern Companies. It is understood that Southern Ccmpanies entered into the Revised SCE&G Agreement a

for the benefit of FPL, JEA and SCE&G and that the total power and energy made available by SCE&G during any hour will be offered to FPL and JEA in equal amounts. Any dispute as to the amount of power and energy to be purchased by Southern Companies for contemporaneous delivery to JEA and FPL during any hour will be resolved by consultations between JEA, FPL and SCEEG.

Section S3.2 -

Schedules of Deliverv: FPL and JEA, after consultation and agreement with SCE&G, shall have the right to schedule the power and energy to be purchased by Southern Companies frcm SCE&G for contenporaneous delivery to FPL and JEA. Under the Revised SCI &G Agreement, the maximum delivery rate is 425 MW and it shall be the responsibility of FPL and JEA, in consultation with SCE&G, not only to arrange the schedule but also to designate the amounts of ,

the total purchased power and energy which is to be '

e contemporaneous 1y delivered to FPL and JEA, respectively.

Such ' schedules shall be established by the operating "

representatives of FPL, JEA, SCE&G and Southern Companies and shall be subject to all requirements, limitations, restrictions and conditions on availability of power and

energy set forth in the Revised SCE&G Agrecment including the maximum and minimum amounts of power.and energy that can and must be scheduled- pursuant to that Agreement. FPL's operating representative will 'give SCE&G's operating representative as much advance notice as possible of power-and energy delivery schedules so that SCE&G can provide to SCS by 12:01 p.m. (prevailing Central Time) its best estimate of FPL's schedule for the next 24-hour -period cc=mencing at 9:00 p.m.

(prevailing Central Time) or for longer periods where weekends and holidays are involved.

Any disputes.as to the amounts of power and energy scheduled by JEA and FPL will be resolved by SCE&G.

Section S3.3 - Prioritv of Service: It is. understood by the parties hereto that the priorities-of service established by Sections S3.3.1 and-53.3.2 of this extended Service Schedule

, S- are in addition to and override any conflictinc recuirements, limitations and restrictions on power and energy delivery and availability set forth in the Revised SCE&G Agreement. Section S3.3.1 establishes priority of service related to the Scuthern Companies-Florida interface and Section S3.3.2 establishes priority of service related to the Southern Companies-SCELG interface. The safety and reliability limitations on purchases and deliveries under

this extended Service Schedule S (as specified in Section S3.4 hereof) override the priorities established by Sections 6-

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.s.

S3.3.1 and S3.3.2. Except as provided in . Sections S3.3.1 and S3.3.2, Southern Companies shall not ba required to terminate or forego any power and/or energy transactions it may schedule or may have scheduled with others to accommodate the contemporaneous delivery of power and energy to FPL under this extended Service Schedule S.

Section S3.3.1 -

Southern Comoanies-Florida Interface:

Insofar as the Southern Companies' capability to furnish power and energy under this extended Service Schedule S is limited and restrained by the power transfer capability of the transmission interconnections between Southern Companies and FPL (including indirect transmission paths through other Florida utilities) , FPL's request to Southern Companies for service under this Service Schedule S for deliveries up to 425 MW shall be given service priority equal to power and energy deliveries under the UPS Contract and Schedule E to the Contract; provided that the aggregate scheduled deliveries to FPL from the Southern Companies during any hour does not exceed 2018 MW (the current capability to be provided under the UPS Contract and Schedule E to the Contract). If requested service under this Service Schedule S would cause the aggregate scheduled deliveries to FPL from Southern Companies across the Southern Companies-Florida interfade to exceed 2018 MW and so long as the capability of such interface remains limited to 2900 MW, the amount of

9

. s-such power to FPL ~in excess of 2018 _ MW shall - not - have priority over any sales or deliveries of power and/or energy by Southern Companies then in existence or which may be

scheduled in future periods; provided that, if any such-other sale or delivery 'is made by Southern Companies which j

3 will displace then existing scheduled deliveries to FPL, FPL shall be given at least 45 minutes prior notice. If'the Southern Companies-Florida interface capability is increased above 2900 MW and FPL's aggregate scheduled . deliveries exceeds 2018 MW, Southern Companies shall have the right to displace the amount scheduled under this Service Schedule S to the extent of the excess over 2018 MW by giving FPL 45 .

minutes prior notice; provided that if Southern Companies-have made a schedule commitment under Section S3.2 of this Service Schedule S for a longer period, such commitment i

shall be honored before displacement by other sales to Florida by Southern Companies up to a total capacity amount

of 2018 MW plus the increase of interface capability above 4

2900 MW.

i Section S3.3.2 -

Southern Comoanies-SCE&G Interface:

Insofar as the Southern Companies ' capability to furnish power and energy under this extended Service Schedule S and JEA Service Schedule S is -limited by the power transfer capability of the -transmission interconnections between Southern Companies and SCL&G (including indirect

{

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. - <, r .-.,,<3 - m ~~ c -- - c -

.s transmission paths through other utilities located in the northeast quadrant of the Southern Companies' electric 1

systems), FPL's and JEA's request to Southern Companies for service during the term of this extended Service Schedule S shall be given service priority for deliveries up to 250 MW (total priority for JEA and FPL to the transfer capability at the Southern Companies-SCE&G interface); provided that Southern Companies shall have -the right to displace the amount scheduled under this extended Service Schedules and JEA Service Schedule S over 250 MW by giving FPL and JEA 45 minutes prior notice of its intent to use the Southern Companies-SCE&G interface for economy energy transactions or other power and energy transactions which Southern Companies consider in their interest. If - Southern Companies give notice of their intent to restrict the Southern Companies-SCE&G interface to a total of 250 MW, FPL and JEA, after consultation with SCE&G, will reschedule their deliveries under this extended Service Schedule S and JEA Service Schedule S, respectively, so as to reduce total deliveries from SCE&G to 250 MW and will inform Southern Companies of the amount of the remaining purchase to be delivered to each.

Section S3.4 - Safety and Reliability Limitations on Purchases and Deliveries: Purchases of power and energy by the Southern Companies for the purpose of making power and i

. - . -. .- . ~ , . - . -. . .. . .

-N energy available under this extended Service Schedule S and the delivery thereto to FPL'shall be subject to and limited by the availability of transmission capability of the -

electric systems of the Southern Companies (including the -

i capability of interconnection points with SCE&G and Florida) consistent with the safe and reliable operation cf the Southern Companies electric systems. SCS, acting as agent for Southern Companies, shall have the sole discretion to determine the necessity for curtailment or interruption of i delivery of energy purchases from SCE&G ' for contemporcneous ,

delivery to FPL due to safety and reliability considerations t on Southern Companies' electric systems. Such sole discretion shall be exercised by SCS on the basis of information available to it at the time considering normal t .

operating criteria and standards. In this connection, it is s

understood that safety and reliability considerations may occasion interruptions or limitations of delivery under this '

Service Schedule S to accommodate emergency energy purchases ,

i or deliveries over the Southern Companies-SCE&G interface. '

1 l

! Section S3.5 - Curtailment and Resumotion of Service: If a 4

safety or reliability condition requiring curtailment under ~

this Service Schedule S occurs, Southern Companies shall L

notify FPL, JEA and SCE&G thirty (30) minutes in advance, if 4 possible, otherwise as early as practicable, of the need to ,

curtail, and shall cooperate with FPL, JEA and SCE&G in the  !

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i rearrangement of purchase end delivery ; scheduler. Southern t

Corpsnies agree that it shall cnly curtail service te the .

extent and for the pericd of -time necessary to alleviats the ,

safety and reliability conditien. -If partial . service can be

  • provided, then Scuthern Companies shall provide -such partial service and restore service to the previously. scheduled levels as soon as practicable. ,

I Section S3.6 3

Deliverv of Enerov to FPL te be Net of -

Incronental Transmissien Losses: The Ecuthern Companies  ;

will develop the energy deliveries schedule to FPL based on a projection of incrEnental losses which will be made on the day preceding the date for actual delivery. Projections for losses for longer periods of time will be rtade as required fer weekends and holidays. The projections of losses will be b.ased en the incre:nental transrtission Icsses deter:nined using thr e existing algorithms of the Southern Campanies to i deternine tne incremental icsses dce to transactir:ns under I this Service Schedule. The total incremental losses thus f determined for each hour of the projected period will be '

converted to average incremental losses for a niinimum of two i

ti:ae periods a day. These time periods are expected to consist of the hours beginning 7:00 a.m. and ending 10:00 '

p.m.

designated as the peak pericd and for the hcuru  !

beginning 10:00 p.n. and ending 7:00 a.n. designated as the ~

i 1

i valley period (prevailing Central Time), or such other time 1 I

1 l

1 I

. . - - . .- . - - .. -. . - - . L

= _ ,-

m P

3=

periods an. may be cutual,1y agreed upon by the operating 4 representatives. The Southern Concp&nies will be responsible'

  • l i

for menitoring the actual ir.cremental losses and making -t I appropriate corrective adjustr.ents in accordance with t

procedures agreed upon by the operating representatives, in I order to assitre that FPL receives all of the energy to Which j it is ent;itled in the appropri.are cime frames. The percent j incrementcl transnission lesses determined as described hereih will be soplied to the houfly scbedules for receipts j

frop SCELG tr detarpine tha hourly se.hedules of deliveries to FPL. Any Ad uctments to the schedule during the day will  ;

j be handled by the ope:ating representatives. During hours when FPL and JEA are 'rae th taking delivery under this i

4 extended Service Srhedule and JEA Service Schedule S, respectively, the increment of enargy beinc delivered to FPL ~

shall be evaluated as having been deli-vared prior tc the '

increment cd &nercy being delivered to JEA for purposes of detarm:,ning the increnental losses to hs Applied to the

respective ener7y transactions in such hour. .

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Section S3.7

  • Ccr,munications between

, - Partiest - The 'd Operating Comittee, created cursuant to Article IX of the  :

} Contract, shall agree oc procedures and ti:ne periods to 4

1 effect the notifications contemplated by - this Article III  !

4 end to coordinste the orderly schedale of pcVer and energy

. by Southern companics, FPL, JEA and 50tsG. Ii

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j. ,

. - . _ -. _ l

. *q Southern Companies breach of Lts ctligt.tions under tha.s iextended Service Sct.edule S.

Section S4.1.2 -

Pavnent for Deliverr of' Power and Enerm' Purchased from SCE&G: If, during any given heur, the sum of ,

(i) the power (MW) . scheduled by SCEsG to Southern companies for contemporaneous delivery to FPL pursuant to the Revised CCI&G Agreen.ent, tii) the power (MW) scheduled by Southern C:mpanies to FPL pursuant to Service Schedule '5" cf the Centract ("Schesuls E") , and (iii) the power (WJ ccheduled by Southern Companies to F70 pursuant to the UP5 Contract tincluding any power (K4) schedule :'. pursut.st, to Service schedule R-Replace.mont Energy Schedule to the Centract) i exceeds 2013 W , FPL shall pay Southern Conpanies at tre rate of $3.00/tmE fer each W schedulsd durir.g .such hour in excess of 2018 MW; otnervine FPL shall pay $ctithorn t

Cc=panies at the rate Of S1.50/MWH for energy scheduled for centemperaneouc dalivery to FPL pursuant to the_ Revised SCI &G Acteement not in excess of 2013 MW. Exacples showing i the 6. pligation of this payment protision are set ferth On ,

Attachrent 1 to this Service Sch&dule, which attachment is incorporated herein by reference, che exar.ples will govern ,

the interproration of this provicien,

,Section S4.1,3 - Minimum 7aymects for Priority Service:

In s consideration of the service priority established in Section e

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.s ARTICLE IV f BASES _FOR SETTLEMENT Section S4.1: FPL shall pay southern Companies for the power and energy and etner services provided hereunder. an '

amount equal to the amcunts required to be paid ac described in Section $4.1.1 by Sot:thern Companies to SCE&G under the Revised SCE&G Agreement plus the .amoynts specified in Sections S4.1.2 and S4.1.3.

Secticn S4 1.1 -

Payment for Cost of Power and Energy Purchased from SCE&G: FPL agrees to pay Southern Codpanies, for the power and energy provided hereunder, the total j amount se itemized on the invoice to Southern contpanies by .

1 SCE&G under the Revised SCE&G Agreement which is applicable to FPL, subject to any bona fide disputes covered by Section S4.3. In this connection, TFL agrees to pay an arnount equal to all charges and costs it. curred by Southern Companics attendant to purchases of power and energy under the Revised SCE&G Agree':ent for contemporaneous delivary to FPL zncluding power and energy charges, minimum energy charges, generating unit start-up charges, damages, penalties or  ;

char.ges for failure to take energy pursuant to the terms and n' .

i condttions eereof r.nd an/ iate payment charges or interest on disputed invcices attributable to lata payment by FPL to

, 2cthern C xrpanie s , prcvided, hewever, that such icte paynent enarges, damtges or penalties did not arise d,ue te 12 -

4

.s S2.3.2, FPL agrees, during the term of this extended Service Schedule S, to make a minimum payment undar Section S4.1.2 of $20.00 per MW multiplied by the maximum amount of megawatts prescheduled for contemporaneous delivery to FPL under . the Revised SCE&G Agreement for any hour of the day, or $5,000.00 per day for any day FPL preschedules energy under this extended Service Schedule 5, whichever is less.

For the purpose of this minimum payment, a day shall be considered as a 24 hour2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> period commencing at 9:00 a.m.

(prevailing Central Time) ."

Section S4.2 -

Prese_ntation and Pavment of Bills for Sertices: Charges in the amounts determined in accordance with Sections 54.1.1, S4.1.2 and S4.1.3 for eacn month shall be stated in an original invoice presented by Southern Cc=panies to FPL at least t90 work days before payment is due. For information purposes, a copy of such invoice may be transmitted by Southern Companies to FPL on or before the 10 th day of the next month by means of telecopier or other cimilar communication device followed by delivery to FPL of the criqinal of such telecopied invoice as specified above.

03 or before thu fif teenth (15th) day of the next month, FPL shall make payment to Southern Companies in accordance with i

the invoice in irrmodiately available funds through wire

. transfer of funds or other Dutually agreeable method of payment with the understanding that suct funds are to be in 1

the possession of Southern Companies by 10:00 a.m, (prevailing Central Time) on such fifteenth day. If the fifteenth day falls on a Saturday, Sunday or -holiday, the due date will be established in advance by mutual agreement of the Operating Committee. Payments of charges not made .

when due shall accrue interest at One Hundred Five Percent (105%) of the prime rate quoted on the date due by Manufacturers Hanover Trust Company in New York, New York computed from the due date to the date of payment (a day shall equal one-thirtieth of a month) . In the event of the insolvency of any of the Southern Companies or proceedings against Southern Companies under the bankruptcy laws, FpL shall have the right to make the payments called for by Section S4.1.1 directly to SCE&G.

Section 54.3 - Disputed Invoice: In case atty portion of an invoice submitted pursuant to Section E4.2 is in bona fide dispute, the undisputed amount shall be payable when due; and the remainder shall be paid promptly, upon the determination of the correct amount, in accordance with Sections S4.1.1, S4.1.2 and S4.1.3, including interest at one Hundred Five Percent (105%) of the prime rate quoted on the date due by Manufacturers Hanover Trust Company in New

^

York, New York, ccmputed fron the due date to the date of payment (a day shall oqual ona-thirtieth of a month).- Upon request by FPL, Southern Ccmpanics shall provide copies of

I -

,s suppotting documentation and records necessary to verify invoices whether d.teputed er undisputed.

section S4.4 - Waiver and Assignment; FPL hereby w,sives all rights of recovery against the Southern Companies, their agents, servants or employees for any losses, expenses.

costs or demages of any nature (including incidental and consequential damages) arising out of the failure by Sct&G i

to deliver or schedule any of the power and energy under the i Revised SCE&G Agreemar.t or for any other breach or omission by SC2&G which causes a breach of obligations under this Service Schedule. If requested by FPL at the time of any breach or failure by SCE&G, Southern Comanies . shall assign j to FPL, without recourse, any rights which Gouthern Companies have under the Revised SCE&G Agreement so as to permit FPL to proceed directly against SCE&G for any such losses, expenses, costs or damages experienced by FPL; '

provided, however, FPL shall save harmless And prot.ect Southern Companies from and against any costs, losses or ,

expenses, including attorney's fees, associa:cd with or arising out of any such assignment or proceeding.

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ARTICL2_V_

1 t- MISCELLANEdOS[PROVISIO93 Section 55.1 _Aezulatorv Aporovels;

_n -

.- FPL and Southern Cc=panies recognize that this Service schedule 5 and the Favised SCE&G Agreement aid required to ha filed with certain regulatory agencies- including the Federal Energy Re;rulat.ory Commission.

To such ene, the Scuthern Ccmpanien

  • egree to take stepc promptly to file this extended Service Schedule wit!. the Fedfral Cncrgy Fequlatory Cen: mission

("FIRC"). Southern Companies shall 21co request a waiver of the notice requirements of the Federal Power Act and Section

  • l 35,3 of FERO's regulations to the extent necesist.ry,. to allow -

this extended Service Schedule to become effective no later than Septerher 33. 1985. FPL agrees to ccop9 rate and assist Southern Companies in secur'.ng conclasion cf any reviaw* by

! FIRC cf this extended Service Schedule 3 witncut si;nificant change hereco, in an eupetlitious canner.

See gon 53. f._- FPL Reecons,1gf r Delivery ljto Fic ric".a :

A It shall be the sole respog;ibility of TPL to a rra. ige its receipt of energy under this Service Gehedule S at the .

Southern companies - Etorida interface. "In this cor.nection, FPL shall be responsible for any arrangements with other Florida utilities nacessary to allow transfers of ener7y conte:tplated unda this extended Service Schedule S.

1 i g r=,m , -,. - - -. ,2- e

^v Section S5.3 -

Adoption by Reference of Provisions ~of the contract: Except as specifically stated in this extended f Service Schedule S, the provisions of the Contract shall apply to purchases and deliveries contemplated by this extended Service Schedule Sr provided, however, that in the event of any inconsistency between the provisiens of isuch Contract and this extended Service Schedule S, the <

provisions of this extended Service Schedule S shall govern.

Secticn S5.4 - This Extended . Service Schedule Not to be a Precedent for Future Transactions: By executing this

\

i extended Service 3chedule, the parties shall not be deemed

)

to hevt:

Agreed on any method of pricing, energy priority or i

ratemaking principle for the purposes of future contractual nr.gotiations or with respect to any future regulatory or t court proceediny regarding future contractual relations

(

between thee, nor sh411 any of the partiec be prejudiced with ' respect to any position that any of then may desire to take in any such futurs enntract negotiations or proceeding:

involving such future contraetual rel;tionship:2.

{Tha next page is the signature  !

page, page 20.]

-79_ s

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.]

. g IN WITNESS WHEP.ECT, the parties hereto have caused this ex-tended Service Schedule S to be executed by their duly authorized officers effective as of the date first set forth above.

ATTEST:

FLORIDA POWER & LIGHT COMPANY

/ #' 's By

/ J p . Howard Group Vice President Date: -QS -$ 5 ATTEST: SOUTHERN COMPANY SERVICES, INC.

By ,

M/

y R. O. Usry /

Vice Date: Presidept 9/AU 95 l/

s ATTEST:

ALABAMA POWER COMPANY By #8 eb - - -

y f R. E. Huff:::ari I N Vice Presid 9 nt Date: '7/2dlC6 ATTEST:

GEORGIA POWER COMPANY

/ By' E -%

y*

' Fred D. Williams

\ Vice President Date: G /04/ /f 6 ATTIST:

GULF POWER COMPANY e-if By E.

B. Parsons, Jr.

%%Q v

\ /

1

} Date:Vice President 0l1d lf 6 1

ATTEST:

MISSISSIPPI POWER COMPANY-G ay

. jf,/ .c

! T. ( j'/ -

{ H. H. Bell, Jr. - Vice tresacent Date: 4 l 2 d l .(5

  • T o.. Attachment 1 Examples of Payment Provisions Service Schedule S Section S4.1.2 Example 1 Example 2 Example 3 Transaction Type (MWh) (MWh) (MWh)

UPS 1418 1618 1718 Schedule E 300 300 300 Southern Purchase From SCE&G For 200 200 200 Contemporaneous Delivery to FPL TOTAL 2018 2218 2318 Schedule To FPL (MWh) (MWh) (MWh)

UPS ,

1418 1618 1718 Schedule E 300 300 300 Schedule S 180 180 180 (Net 10% Losses)

TOTAL 1988 2188 2288 Payment Due Under Section S4.1.2 (MWh) (S MWh) (MWh) (S MWh) (MWh) (S MWh) 300 @ 1.50 100 @ 1.50 0@ 1.50 0@ 3.00 200 @ 3.00 300 @ 3.00 TOTAL S 450.00 S 750.00 $ 900.00

ng.

UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Southern Company Services, ) Docket No.

Inc. ) 4 NOTICE OF FILING OF EXTENDED AND REVISED  !

SERVICE SCHEDULE.S TO AN l INTERCHANGE CONTRACT BETWEEN FLORIDA POWER & LIGHT COMPAN.Y AND SOUTHERN COMPANIES Take notice that Southern Company Services, Inc.

on behalf of Alabama Power Company, Georgia Power Company, Gtif Power Company and Mississippi Power Company- (" Southern Co.?panies") tendered for filing Extended and Revised Service Schedule S to an interchange contract between Florida Power

& Light Company and Southern Companies.

the terms,Extended and conditions Revised Service Schedule S sets forth and rates under which _ Southern Compar. ies agree to deliver power and energy purchased from South Carolina Electric & Gas Company for contemporaneous sale 'and delivery to Florida Power & Light Company. The term of Extended and Revised Service Schedule S shall expire on December 31, 1985 or when a specified amount of power and energy has been received by Southern Companies from SCE&G and delivered to FPL, whichever occurs first.

Any per;.on desiring to be heard or to protest such filing should file a petition to intervene or protest with the Federal Street, Energy Regulatory Commission, 825 North Capitol N.E., Washington, D.C. 20426, in accordance with Rules 211 and Procedure (18 214 of the Commission's Rules of Practrice and C.F.R. SS 385.211, 385.214).

petitions or protests All such should be filed on ~or before Protests are considered by the Commission to determine the appropriate action to be taken but will not serve to make protestants parties to the - proceeding. Any person wishing to become a party must file a petition to intervene. Copies of this application are on file with the Commission and are available for public inspection.

Kenneth F. Plumb, Secretary

CERTIFICATE OF CONCURRENCE This is to certify that Alabama Power Company, Georgia Power Company, Gulf Power Company, and Mississippi Power Company assent to and concur in the rate schedule described below, which Southern Company Services, Inc., has filed and hereby file this certificate of concurrence in lieu of the filing of the rate schedule specified.

Extended Service Schedule S dated September oid , 1985 to the Interchange Contract between Florida Power & Light Company and Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, and Southern Company Services, Inc., dated October 18, 1979, as amended.

SOUTHERN COMPANY SERVICES, INC.

By d R. O. Usry Vice Presiden(/t As the representative of ALABAMA POWER COMPANY GEORGIA. POWER COMPANY GULF POWER COMPANY MISSISSIPPI POWER COMPANY Dated: 7/ v/f5

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