ML20205K391

Forwards Updated Reg Guide 9.3 Info for Antitrust Review of Facility,Per Jl Funches 861218 Request

ML20205K391
Person / Time
Site:	Vogtle
Issue date:	02/24/1986
From:	Rhex Edwards TROUTMANSANDERS (FORMERLY TROUTMAN, SANDERS, LOCKERMA
To:	Lambe W Office of Nuclear Reactor Regulation
References
RTR-REGGD-09.003, RTR-REGGD-9.003 A, NUDOCS 8602270352
Download: ML20205K391 (96)

Text

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TROUTMAN. SANDERS,LOCKERMAN & ASHMORE ATTORNEYS AT LAW CANDLER BulLDING ATLAP4TA. GEORGIA 30043

,a wantasinsect om numeta MBERT P. EDWARDS,JR. 368-8207 February 24, 1986 HAND DELIVERED William Lambe' Planning and Program Analysis Staff Office of Nuclear Reactor Regulation United States Regulatory Commission 7920 Norfolk Avenue Room P-420 Bethesda, Maryland 20814 Re: Vogtle Electric Generating Plant Unit 1 -- Docket No.

l 50-424A Regulatory Guide 9.3 Information

Dear Mr. Lambe:

x Enclosed is the update of Regulatory Guide 9.3 information concerning Plant Vogtle requested by Mr. Jesse L. ~

Funches in his December 18, 1986 letter to Mr. Donald O. Foster. Please do not henitate to call me if you have any questions.

Very truly yours, Robert P. Edwards, Jr.

RPE, Jr./jdC Enclosures

cc

J. L. Funches, Director l Planning and Program Analysis Staff Office of Nuclear Reactor Regulation (without enclosures)

D. O. Foster (without enclosures)

James A. Bailey (with enclosures) ff 9 8602270352 ADOCM O W g 24 PDR pg M

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NRC Docket Nos. 50-424A, and 425 Vogtle Electric Generating Plant Units 1 and 2 Cwners:

Georgia Power Company, Oglethorpe Power Corporation (an Electric Membership Generation and Transmission Corpora-tion), Municipal Electric Authority of Georgia, and City of Dalton, Georgia Georgia Power Company Supplemental Information For Antitrust Review Introduction On December 18, 1985 the Nuclear Regulatory Commission Staff requested that Georgia Power Company (hereinafter

" Georgia Power" or the " Company") update for NRC Docket 50-424A its August 29, 1983 submission for itself and as agent for the other owners of the Vogtle Electric Generat-ing Plant (hereinafter " Plant Vogtle") concerning Sections B-1 and B-2 in Regulatory Guide 9.3. The other owners of Plant Vogtle are the City of Dalton, Georgia (" Dalton"),

the Municipal Electric Authority of Georgia ("MEAG"), and Oglethorpe power Corporation ("Oglethorpe").

B.l.a: Anticipated excess or shortage in generating capacity resources not expected at the con-struction permit stage. ; Reasons for the excess or shortage along with data on how the excess will be allocated, distributed, or otherwise utilized or how the shortage will be obtained.

There has been no major change in anticipated excess or shortage of generating capacity resources since the August 29, 1983 report, although both load forecasts and

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generation expansion plans have been revised. The Com-  !

pany's current forecasted territorial peak demand projec- l tions through 2010 are shown on Exhibit 1. These projec-tions yield an average annual growth rate of 3.1% for the period 1985 (est.) through 2000. The first column of I I

Exhibit 1 is Georgia Territorial demand which includes j Georgia Power's load, that of the other owners of Plant Vogtle (Oglethorpe, MEAG, and Dalton), and Georgia Power's two full requirements customers (the cities of Acworth and Hampton, Georgia). The succeeding columns of Exhibit 1 state the loads of these entities separately. The second column of Exhibit 2 shows Georgia Power's territorial reserves resulting from the load forecast--shown on Exhibit 1 and the current generation expansion plan. The other columns of Exhibit 2 show forecasted reserves for Georgia Power's affiliates in the Southern electric system and system reserves. Exhibits 3 and 4 show the current load i

forecasts independently adopted by MEAG and Oglethorpe, for their loads, respectively. Oglethorpe's higher load forecast, a reduction from the previously assumed allocation of power from the Southeastern Power Administration ("SEPA"), and changes in the sell-back of capacity from Vogtle Unit 1 will likely cause Oglethorpe's purchased power requirements to be higher than that i I

indicated in the August 1983, submission. Oglethorpe l l

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o expects to meet these higher requirements through  :

1 increased purchases as necessary from Georgia Power and additional construction on the-mid to late 1990s. I B.l.b: New power pools or coordinating groups or [

changes in structure, activities, policies, j practices, or mem,ership of power pools or coordinating groups in which the license was, is, or will be a participant, j Neither Georgia Power, Dalton, MEAG, or Oglethorpe is participating in any new power pools or coordinating groups. There have.been no changes in the pools or coordinating groups with which the Company participates other than annual adjustments to the Intercompany Interchange Contract which governs Georgia Power Company's participation in the Southern Company pool and is regulated by the Federal Energy Regulatory-Commission

("FERC").

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

B.l.c. (1) Changes in Transmission With Respect to Plant Vogtle:

The commercial operation dates of Plant Vogtle Units 1 and 2 nave been extended to June of 1987, and Septr.mber of 1988, respectively. The owners of Plant Vogtle partici-pate in the Integrated Transmission System described in 1

i the August, 1983 submission, to which Plant Vogtle will be f interconnected. Exhibit 5 shows the presently planned i

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transmission configuration for Plant Vogtle, which is somewhat modified from'the August, 1983 submission.

Exhibit 6 shows Plant Vogtle's -relationship to the Inte-l grated Transmission System. )

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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 l 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 and 230 kv) of the Georgia Integrated Transmission System.

B.1.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, l

1983, the Municipal Electric Authority of Georgia (here-inafter "MEAG") purchased in 1984 an additional 5% l interest in Plan Vogtle from Georgia Power. This agree- ,

ment was subsequently amended on April 9, 1985 to make

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4 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 I will also change Oglethorpe's sell-back schedule as previously 4

reported.

B.I.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 have been accepted by l \

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the FERC. MEAG's additional 5% interest in Plant Vogtle is a bulk power supply project (" Project Four") separate i

for financing purposes from MEAG's prior projects. MEAG '

entered into Project Four Power Sale Contracts dated November 16, 1983, with its participants on terms and conditions similar to the Project Power Sales Contract's for Projects Two and Three. These contracts and rates will be designed to recover 100% of Project Four costs. ,

Since the August 1983, submission, Oglethorpe's wholesale rate has been amended to base responsibility on each of Oglethorpe's Member System's contribution to Oglethorpe's base, intermediate and peaking category load requirements, 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' loads 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.: List of all (1) new customers, (2) transfers

from one rate schedule to another, including copies of schedules not previously fur-nished, (3) changes in licensee's service area, and (4) licensee's acquisitions or mergers.

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

L B.l.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 of Georgia Power as stated in the August 1983 response.

Neither Oglethorpe nor Dalton has added any wholesale customers. MEAG added the city of Oxford, Georgia as a Participant effective January 1, 1986. Oxford had previously purchased its requirements from the city of Covington, Georgia, which is a MEAG Participant. The addition of Oxford as a Participant accordingly did not change the load MEAG serves.

B.I.f. (2): Rate schedule changes.

Schedule "S" and Schedule "R" have both been filed by Georgia Power and have become effective with the FERC.

Schedule "S" is a purchase and resale agreement designed 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 is enclosed with this filing. Schedule "R" revises the 1

Unit Power sales pricing formula in order to make pur-chases more economical. A copy of the relevant filing is i

also enclosed.

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

l There has been no change in service areas.

B.l.f. (4): Acquisitions or mergers.

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There have been no. acquisitions or mergers.

l 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 operation following Vogtle Unit 1 or Unit 2 at this time. Since 1983 Oglethorpe has received Preliminary Permits for two potential pumped storage hydroelectric sites. 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.

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'E Georgia Power and Oglethorpe are discussing the sale and Purchase of the Rocky Mountain Pumped Storage l Hydroelectric Plant shown on Exhibit 8. Georgia Power and Oglethorpe also individually have periodic discussions 1

I with utilities outside their service areas concerning bulk power supply, including joint ownership of electric. J 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 I

entered into interconnection and interchange agreements with Alabama Electric Cooperative and South Mississippi Electric Power Associations, respectively.

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B.2: Licensees whose construction permits include conditions pertaining to antitrust aspects should list and discuss those actions or policies which have been implemented in accordance with such conditions.

The joint ownership, integrated transmission, joint planning, and partial requirements power relationships L- among Plant Vogtle's owners described in the previous filing have continued. In 1984, Georgia Power, the licensee of Plant Vogtle which is subject to antitrust license conditions, sold additional transmission 1 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 i

and usable basis to public bodies and cooperatives contracting with SEPA in Georgia Power's service area j (including Dalton, MEAG's Participants, and Oglethorpe's Members) and in the service areas of Georgia Power's f

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 I

j the Integrated Transmission System in which they participate will be responsible for the transmission J

..'. l component of this arrangement after May 31, 1989. This revised contract enabled SEPA to implement its marketing program in the western area of its Georgia-Alabama System in a fashion satisfactory to it and to its western area .

customers.

Respectfully submitted,

/

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Robert P. Edwardt, Jr.

Counsel for Licensee 1 Georgia Power Company l

TROUTMAN, SANDERS, LOCKERMAN

& ASHMORE 1400 Candler Building Atlanta, Georgia 30043 (404) 658-8000 0

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./ . EXHIDIT 1 l:

Georgia Power Company Planning 1986 Coincident Peak Lemand Torecast (MW)

October, 1985

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7erritorial OPC MEAG Dalton Acworth Hampton 1985 12424 2198 1161 129 5 3 1986 12878 2312 1193 134 5 3 1987 13336 2439 1236 139 6 3 1988 13575 2506 1261 141 6 3

1989 13853 2573 1288 144 6 3 1990 34290 2674 1319 149 6 3 1991 14919 2816 1370 155 6 3

. 1992 15359 2938 1406 160 6 4 I

1993 15753 3040 1437 164 6 4

. 1994 16250 3156 1477 169 6 4 1995 16709 3271 1515 174 6 4 i 1996 1722S 3394 1559 179 6 4 1997 17780 3520 1606 185 6 4 1 1998 18376 3653 1650 191 6 4 1999 18969 3800 1697 197 6 4 2000 19560 3943 1745 203 6 4 2001 20146 4192 1805 209 6 5 2002 20952 4387 1867 218 6 5 2003 21596 4542 1915 225 6 5 2004 21998 4638 1942 229 7 5 2005 22456 4745 1975 233 7 5 2006. 23125 4906 2026 240 7 5 2007 23556 5008 2055 245 7 5 .

2008 23930 5096 2080 249 7 5 2009 24170 5151 2094 251 7 5 2010 24411 5207 2107 254 7 5

• i EXHIDIT 2

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EXHIBIT 3 l

OFFICIAL MEAG IDAD FOP.ECAST COINCIDENT ENERGY l YEAR DEMAND (MN) (MWH) l l

1986 1275.6 6012894 l l

1987 1258.6 6018574 1988 1300.5 6237031  !

1989 1343.5 6460360 l 1990 1387.5 6688626 I 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 4 2000 1892.0 9269341 2001 1949.7 9560712 2002 2008.8 9858892 AVERAGE GROWTH RATE i (1986-2002) 2.88% 3.14%

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• EXHIBIT 4

.0GLETHORPE POWER CORPORATION 1985 0FFICIAL FORECAST StBNARY OPC Contribution OPC Energy Year to Ga. Territorial Peak (MW) Requirements (MWH) 1985 2,329 10,496,585 1986 2,446 10,998,895 1987 2,561 11,469,677 1988 2,646 11,877,190 19S9 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 13,831,017 1996 3,423 14,089,743 1997 3,44S 14,400,349 1998 3,588 14,752,180 1999 3,737 15,112,677 2000 3,858 15,455,240 2001 3,896 15,652,870 2002 4,007 15,861,121 2003 4,094 16,040,986 2004 4,235 16,276,187 (Load measured at Oglethorpe's metering point)

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EXHIBIT 7 '[

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r MUNICIPAL EIECTRIC AUI'HORITY OF GEOHGIA PLANT VOGTLE CAPACITY PRIOR AND AMENDED ARRANGEMENTS

- i b see-E RETAINED CAPACITY UNDER AMENDED ARRANGEMENT

.. SALES UNDER

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ECLINtNG PORTlON 300 -

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i I i

SERVICE SCHEDULE R i UPS REPLACEMENT ENERGY SCHEDULE i

! BETWEEN

FLORIDA POWER f. LIGHT COMPANY AND ALARAMA POWER COMPANY, GEORGIA POWER COMPANY,

GULF POWER COMPANY, AND MISSISSIPPI POWER COMPANY, AND SOUTHERN COMPANY SERVICES, INC.

Section RO.1: This Se.-vice 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 Power & Light Company ("FPL*) and Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Company Services, Inc. ("SCS") col-lectively referenced herein as the " Southern Companies."

ARTICLE I ,

t PURPOSE Section R1.1: The purpose of this Service Schedule R is to provide the opportunity for nonfirm energy sales from

! 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-l sidered to be contemporaneous with energy sales to the i

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

4 l .. .

Section RI .2 : The type of energy sale provided for here-

! under will be referred to hereinafter as "UPS Replacement

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

Southern Companies to FPL from 'the lowest energy cost i generating resources that can be made available after i

l 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").

i Section RI.3: " Contract" shall mean the Interchange Con-tract between FPL and Southern Companies dated October 18,

1979 as subsequently amended on February 19, 1981 and July ,

23, 1981.

ARTICLE II TERM OF SERVICE SCHEDULE ,

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.

! Section R2.2: On or before January 31, 1986 and each six l

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

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

s following calculation to determine if UPS Replacerent Energy I

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

l period (i.e., calculation made on or before January 31, 1986 i determines if UPS Replacement Energy sales are to be suspended for six month period February 1, 1986 through July 1

31, 1986): '

i

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

( B ] greater than or equal to [ A x 1.05 )

Where:

I

! A= the average cost of sales (in dollars per

megawatt hour) under all UPS contracts (in- l l cluding contracts with JEA and GSU) deter-l mined on the following basis for the

preceding 12 month period (January 1 through j December 31 or July 1 through June 30)

l Total UPS Energy Billing Total UPS Capacity Billing in Dellars Under all UPS in Dollars Under all UPS I contracts for 12 Month Contracts for 12 Month

Period , Period j Total UPS Energy Sales Total UPS Capacity En-in MWE Under all UPS titlement Under all UPS Contracts for 12 Month Contracts Expressed in MWB l Period Determined by Converting i MW Entitlements Using a i 90% Capacity Factor B= estimated cost of energy from oil and gas fired generating units (in dollars per mega-

watt hour) determined in accordance with the

! following formula for the preceding 12 month

! period:

3 B in S/MWH = OIL PRICE (12 months average) x 1.68 i

Where:

1

! " 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 1  ;

i i i

the computation year quoted under the maximum 1.0% sulfur residual fuel oil (" Max 1.0%

resid") for the waterborne spot market oilgram Price

(" Waterborne") in "Platt's Report" an international daily oil / gas price and market letter published by McGraw-Rill, Inc., divided by, 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 substantially changed such that it no longer provides a reasonable estimated cost for computing "B" above, quotations from the weekly publication "011 Buyers Guide," U.S.

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

Where:

1.68 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 /MWE) 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-going calculation, FPL and SCS will perform the calculation at the next designated date to determine if such energy sales are to be reinstated for the then following six month period during the fixed term of this Service Schedule R.

Since the calculation under this Section is complicated, the parties have agreed to a sample calculation under the fore-going provisions which is attached hereto as Exhibit I and incorporated herein by reference. This sample calculation l

4

1 i will govern in the event of disputes as to the interpretation of the calculati t provided for by this 1

i Section of this service schedule.

ARTICLE III SUPPLY OF UPS REPLACDG'NT ENERGY ,

! Section R3.1: Southern Companies will furnish information ,

I '

with respect to generating capacity available on their elec-i

tric systems which might be made available for UPS Replace-l ment Energy sales. This information will include (a) the expected cost, as hereinafter defined, of the UPS Replace-ment Energy that can be made available, and (b) the quantity i and period of time such energy is expected to be available.

I Such information will be furnished by communications between l the operating Representatives. Southern Companies, in the

! sole discretion of SCS, shall determine if **capaqity is i

! available on their systems for UPS Replacement Energy sales.

i Section R3.2: For any energy sales hereunder, the cost of I

i UPS Replacement Energy shall be the incremental expense in-curred in supplying energy hereunder as defined in Section R4.1. UTS Replacement Energy under this Service Schedule l

! and schedules with GSU and JEA shall be supplied contem-l peraneously from generating units in er onomic dispatch on l

! the system of Southern Companies after serving its own i

! system requirements and the following transactions which l

1

(  !

L - - _ _ - - ._.. _ - _. - - - - _ . - . _ _ - . . - - . . .

)

• 1 . .. ..

i shall have priority (1) any seasonal or capacity exchange

't agreements now existing or entered into in the future, (2) any firm power interchange sales to other utilities or third l partias now existing or entered into in the future, (3) any i 1

l Unit Power Sales agreements for the sale of capacity and l energy from a specific unit or units (including any alter-energy furnished under provisions similar to that nate l specified in the Unit Power Sales Agreement with FPL) now l 1

! existing or entered into in the future, (4) any Long Term Power sales with other utilities or third parties which were j executed prior to the date first above written, (5) any

)

sales of supplemental Energy under the provisions of Unit Power Sales agreements similar to the provisions of Unit i

I Power Sales Agreement with FPL now existing, (6) any nonfira 1

! capacity sales for a term of one year or longer to other utilities or third parties entered into in the future but 1

l only to the extent of 300 MW per year for the years 1986 l

l through 1989 and 400 MW per year for the year 1990, and (7) any short term capacity sales under an interchange agreement l between Alabama Power Company and Alabama Electric Coopera-tive, Inc.

l l

i Section R3.3: Each UPS Replacement Energy transaction shall j be agreed upon by the operating Representatives of the parties prior to commencement of delivery of such energy.

I j It is anticipated that, after Southern Companies have 1 i

supplied the information pursuant to Section R3.1, the 4

Operating Representatives will establish a preliminary schedule for energy deliveries hereunder for che next day.

Approximately thirty (30) minutes before the transaction is scheduled to consnence, the Operating Representative of Southern Companies shall quote the price in $/NNE for UPS Replacement Energy for the next hour and will provide i

similar quotes for each subsequent hour during the period of the transaction. At the time of each price quote for the next hour, FPL's Operating Representative shall determine whether or not to take UPS Replacement Energy during that next hour. If after the time of the price quote for the next hour and prior to the time of the price quote for the subsequent hour Southern Companies determine, in their sole judgment, that all or a portion of the then scheduled off-system sales can no longer be delivered, SCS shall give as much notice as possible of the need for FPL to change its schedule of UPS Replacement Energy to available UPS energy schedules at the next scheduling time for the subsequent hour. The delivery of UPS Replacement Energy during the next hour may be continued at the option of FPL. If FPL elects to continue receipt of UPS Replacement Energy as scheduled, the price of such energy shall be the greater of the quoted price for such UPS Replacement Energy or the  !

-weighted average energy rate for FPL's pro rata share of all units as determined by the following formula:

l l

l

~7-

WAER = UPC.-x ER, + ... + UPC_ x ER_

UPCy + WC2 * **

• Cy + WC2"+ . . . "+ WC, n

Where:

WAER = FPL's weighted average Energy Rate for FPL's pro rata share of all UPS units.

n= Total number of UPS units to which FPL has capacity entitlement.

UPC,= Unit power capacity entitlement of FPL from such unit determined in accordance with Article II of the UPS Contract. .

ERn = Unit's respective Energy Rate which is the lesser of (1) the Base Energy Rate of such unit as determined in accordance a with Section 6.3 of the UPS Contract, or (2) the Normalized Energy Rate of such unit as determined in accordance with i Section 6.6 of the UPS Contract.

Section R3.4: This Service Schedule is not intended and shall not be interpreted to change or modify the obliga-tions, rights and duties of the parties under the UPS Con-tract, however, UPS Replacement Energy scheduled hereunder will be deemed to satisfy the provisions of Section 3.5 of the UPS Contract, with the understanding that such energy will be allocated to each dedicated unit under the UPS Contract based on the ratio of the MW entitlement to that unit to the total MW entitlement under"the UPS Contract. In the event the schedule of energy (to include unit energy, alternate energy and the allocation of UPS Replacement Energy) from any unit is in excess of 100% of the available l

energy from that unit, the UPS Replacement Energy allocated

to such unit in excess of 100% shall be allocated to the remaining units on a pro rata basis.

i

ARTICLE IV BASIS OF SETTLEMENT Section R4.1: The basis of settlement for UPS Replacement Energy hereunder shall be the hourly quoted rate agreed upon by the Operating Representatives of the parties prior to commencing of delivery of such energy for the next hour.

The incremental cost quoted by Southern Companies for each hour shall be based on the incremental cost of fuel; incre-mental maintenance cost; incremental change in system trans-mission losses attributable to the transaction; and other costs, directly attributable to the transaction.

Section R4.2: It shall-be a responsibility of the Operating Committee to establish arrangements for interchange of data with respect to UPS Replacement Energy transactions adequate to enable independent computations of the monthly statements by FPL.

Section R4.3: Settlement for energy transactions under Section R4.1 shall be made monthly in accordance with monthly statements rendered by Southern Companies to FPL.

The monthly statement shall show the energy transactions and l

l the respective basis for settlement pertaining thereto.

l 2

t

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Such statement shall otherwise be subject to Section 7.2 of the Contract.

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

. .' .~

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.

1 ATTEST: FLORIDA POWER & LIGHT COMPANY

'l/.

By JV'a. Toward '

a,, h Secretary- '

Group vice President Date: b*D M Nb  :

ATTEST: SOUTHERN COMPANY SERVICES, INC.  !

L By O

[ g 7 r

R. O. Usry Vice President g

f Date: July 29, 1985 ATTEST: ALABAMA POWER COMPANY J By ##_ , k- --

R. E. Buffniaff Vice President Date: July 29, 1985 ATTEST: GEORGIA POWER COMPANY By 64* *'" ** *

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.ay 7, 1985 ""***"***""**

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NAY 15 1985

==:<-

.m..... t. :=::~r*- MAY l 7 B E , or e....u

-=a -

J M BRA poser MAMET3 MAA8Wieau3 Federal Energy Regulatory Commission 825 North Capitol Street, N.E.

Washington, D.C. 20426 '

,h j .

- C.

Attention: Mr. Kenneth F. Plumb, Secretary Re: Filing of Service Schedule S to Interchange Contract between Florida Power & Light Company and Southern Comp nies

Dear Sirs:

By cover of this letter, we are hereby transmitting for filing on behalf of Southern Company Services, Inc. ("SCS"), acting as agent for Alabama Power Company, Georgia Power Company, Gulf Power Company and Mississippi Power Company (" Southern Companies"), Service Schedule S to an Interchange Contract between Florida Power

& Light Company ("FPL") and Southern Companies. Six copies ,

of this letter of transmittal, Service Schedule S and other l supporting materials are enclosed.

)

On October 18, 1979, FPL and Southern Companies entered into an initial interchange contract, pursuant to which the parties agreed to establish a direct intercon-nection between the electrical facilities of FPL and Georgia Power Ccapany. The electrical interconnection was completed and the parties have subsequently amended the interchange contract by amendments dated February 19, 1981 and July 23, 1981. The interchange contract incorporates several service schedules which provide for emergency assistance, short term power supply, economy transactions and long term power l sales. The parties now propose to add the enclosed Service Schedule S to the interchange contract.

l

g .-

CALCH & BINGHAM May 7, 1985 Page 2 The enclosed Service Schedule S should be evaluated in connection with a short term power sales agreement executed by Southern Companies and South Carolina Electric & Gas Company ("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 companies agreed to purchase energy from 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. Thus, Southern Companies will purchase power and energy from SCE&G under the short term power sales agreement and will contemporaneously sell and deliver such power and energy under the enclosed Service Schedule S. This transaction delivery butisnoscheduled later thantoJuly commence 1, 1985. onItthe date of first is anticipated that the purchase of power and energy from SCE&G and the contemporaneous sale and delivery to FPL could commence on a date as early as June 1, 1985. Accordingly, SCS requests that the enclosed effective as early as Service Schedule June 1, 1985. S be allowed to become The term of Service Schedule S shall be ninety days FPL; provided, from the date of first delivery of power and energy to that the service schedule is subject to reasonable extensions at the option of FPL to allow delivery of specified amounts of energy from SCE&G, but in no event shall the term extend beyond November 30, 1985.

The rates for services provided by Southern Companies to FPL are set forth in Sections S4.1.1, S4.1.2 and 54.1.3 of the enclosed Service Schedule S. FPL agrees to pay Southern Companies for the power and energy purchased from SCE&G. Generally, FPL agrees to pay $1.50/MWH for delivery of energy from SCE&G so long as total energy schedules by FPL do not exceed 2018 MW. If more than 20.8 MW is scheduled during any hour, the energy in excess of such atount shall be delivered at a rate of S3.00/MWH. The service schedule also contains certain minimum payments for pricrity The position to the Southern Companies-SCE&G interface.

rates are a product of negotiation between Southern Companies and FPL; however, basic cost support for the transmission this letter.

delivery rates is set forth in Exhibit A to l

. - -, - - - - - . +e- --,,-,--e-- - , - - - - - - , , - - , , - -

. u CALCH G OlNOMAM 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 35.12 of the Commission's regulations. In addition, 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 of FPL and its customers and will provide FPL with a low cost energy source during the term of Service Schedule S.

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

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

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

(b) A form of notice suitable for publication in the Federal Pegister as required by Section 35.8 of the Cenmissien'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) of Florida PowerCertificate of Concurrence issued on behalf

& Light Company.

(e) Check of Southern , Company Services, Inc. in the amount of $700 made payable to the Treasurer of the United States as required by Section 36.2 fe) and (f) of the Commission's regulations. This sum represents $500 for the filing by Southern Ccepany Services, Inc. and $100 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 Schedule S.

Authority for the filing of the enclosed Service Schedule S to the interchange contract and Certificate of  ;

i

CALCH G CINGHAM May 7, 1985 Page 4 Concurrence of Southern Companies is 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 December 27, 1963 from the Secretary of the Federal Power Commission to each of these companies.

All requisite agreement to Service Schedule S to the interchange contract and the filing thereof is evidenced by the parties' execution of the service schedule and the enclosed Certificates of Concurrence. No new 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 Company Services, Inc., P. O. Box 2625, Birmingham, Alabama 35202, Telephone No. (205) 870-6644, be contacted.

Yours very truly, BALCH & BINGHAM

1. ' ~

By Rodney O. Mundy V ROM /mn 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 l

l

CALCH G BINOH AM

. I r

May 7, 1985 Page 5 Mr. H. H. Bell, Jr.

Mississippi Power Company j P. O. Box 4079 Gulfport, Mississippi 39501 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 Marcostsis South Carolina Electric & Gas 320 Main Street Columbia, South Carolina 29218

, I l

Exhibit A CHARGE FOR DELIVERY OF ENERGY PURCHASED BY THE SOUTHERN COMPANIES FROM SOUTH CAROLINA ELECTRIC & GAS AND RESOLD TO FLORIDA POWER & LIGHT COMPANY JUNE-DECEMBER, 1985

$3.00/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 above 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-YE.'sR S/MWH FACTORS COMPANY W/O LOSSES S/MWH (UITH ADDER) PERCENTAGE S/MWH (1) (a) (2)(b) (3) (c) (4 ) (d) (5) (e) i <C 11.208214 1.279 ()' . 2 79 13.2 .301 PC 16.724855 1.909 2.909 97.2 GULF 10.540542 1.203 2.225 2.203 4.8 .106 MPC 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 COMPAMY W/O LOSSES LOAD RATIOS TRANSMISSION CAPACITY RATIS (1) (a) S/KW-YEAR (2) (a) (3)

APC 11.208214 32.52 l GPC 16.724855 3.645 54.14 9.055

! GULF 10.540542 6.31 0.665

{ MFC 8.667737, 7.03 0.609 i

I 13.974 = 1.595/MWH Ib) j Rate with credit fer current UPS transmission charges =

S3.319/ n:H-S1.595/MWH = SI.724/MWH i Founded to S1.50/MWH (See Page 2 for footnotes)

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

Unit Power Sales Agreements, Transmission JUNE-DECEMBER.

(b) Conversion using a 1004 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.

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

Inc. )

NOTICE OF FILING OF SERVICE SCHEDUL2 S TO 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 5 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 Companies agree to deliver power and energy purchased from South Carolina Electric & Gas Company for contemporanecus sale and delivery to Florida Power & Light Company. Thethe termdate of Service Schedule S shall be ninety days from of first delivery of power and energy to FPL with first deliveries expected to cccur as early as June 1, 1985, but no later than July 1, 1985. Service Schedule S is subject to reasonable extensions to allow delivery of specified a= cunts of power energy purchased by Southern Ccmpanies from South Carolina Electric & Gas Company, but in no event shall the tern of the schedule extend beyond November 30, 1985.

Any person 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 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 Commission to cetermine the appropriate action to be taken but will not serve to make protestants parties to the proceeding. Any person intervene.

wishing to become a party must file a petitien to Copies of this application are on file with the Cc= mission and are available for public inspection.

l l

i l lienne:n F. Plumo, Secretary

. .. r ,,. , ,, r,o

' ' ~ '

i en,y' 'I. r. .>' 2. ,

SERVICE SCHEDULE S

'-[C?t

. .: . .,~ , [l.!': .. " .

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 Centract 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 i

Section 51.1: 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 l

l

interconnection between GPC and SCEGG, and contemporaneously l 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 Cc=pany, 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.

e 2-

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

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 1

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. /

ARTICLE III - SERVICES TO BE RENDERED Section S3.1: - Description of Service: Southern Companies, on date even herewith, entered into the SCEEG 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 l energy and the terms of payment by FPL for services provided hereunder by Southern Companies.

a I

> l

- - " - - - - ~ ~ ~ ~ ' ~ ~ ~ ~ ~ ~

i Section S3.2 -

Schedules of Delivery: FPL, after consultation and agreement with SCE&G, shall have the right to schedule the power and energy to be purchased by Southern Companies from SCEsG 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 pessible 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 com encing at 9:00 p.m. (prevailing Central Time) or for lenger 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 everride any conflicting requirecents, limitatiens 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 Ccmpanies-Florida interface and Section S3.3.2 L

[

s establishes priority of service related to the Southern 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 schedula 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 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 frem 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 l

l

-s contract). I2 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 1

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 Ccmpanies 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 extent of the excess over 2018 MW by giving FPL 45 i

minutes prior notice; provided that if Southern Companies have made a schedule comitment under Section S3.2 of this Service Schedule S for a longer period, such commitment shall be honored before displacement by other sales to Florida by Southern Cc=panies up to a total capacity amount of 2018 MW plus the increase of interface capability above 2900 MW.

I f

-7_

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O 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 230 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 to use the Southern l

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 oi-the operative i

90-day term of power and energy delivery hereunder and shall not apply in the event of extensions to i

allow the delivery of the quantities of energy specified in the SCE&G Agreement.

4 a

l Section S3.4 -

Safety and Reliability Limitations .on i

Purchases and Deliveries: Purchases of power and energy by the Southern Companies for the purpose of making power and i

I l

I k

. energy available under this Service Schedule S and the delivary 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 determine the necessity for curtailment or interruption of delivery of energy purchases from SCE&G for contemporaneous I delivery to FPL due to safety and reliability considerations j on Southern Companies' electric systems. Such sole h 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

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

j 4

Service Schedule S to accommodate emergency energy purchases or deliveries over the Southern Companies-SCE&G interface.

l Section S3.5 - Curtailment and Resumption of Service: If a safety or reliability condition requiring curtailment under this Service Schedule S occurs, Southern Companies shall notify FP' 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 SCEsG in the 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 leve)- 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 i

consist of the hcurs beginning 7:00 a.m. and 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

( ~

periods as may be mutually agreed upon by the operating -

representatives. The Southern Companies will be responsible

- for monitoring the actual incremental losses and making appropriate corrective adjustments in accordance with 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 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.

Section S3.7 -

Communications between Parties: The Operating Committee, created pursuant to Article IX of the 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.

ARTICLE IV - BASES FOR SETTLEMENT Section S4.1: FPL shall pay Southern Companies for the power and energy and other services provided hereunder, an amount equal to the amounts required to be paid as described in Section S4.1.1 by Southern Companies to SCEEG under the l

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

O I

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

l Section S4.1.1 - Payment for Cost of Power and Energy Purchased from SCEEG: FPL agrees to pay Southern Companies, for the power and energy provided hereunder, the total amount invoiced to Southern Companies by SCEEG 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, penalties or charges for failure to take energy pursuant to the terms and conditions thereof and any late payment charges or interest on disputed invoices attributable to 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 Enercy Purchased from SCE&G: If, during any given hour, the sum of (i) the power (MW) scheduled by SCE&G to Southern Companies pursuant to the SCE&G Agreement, (ii) the power (MW) l scheduled by Southern Companies to FPL pursuant to Service

~

l

i

.i l

t Schedule "E" of the Contract (" Schedule E") , and (iii) the power (MW) scheduled by Southern Companies to FPL pursuant to the UPS Contract (including any power (MW) scheduled pursuant to a contemplated " Replacement Energy Schedule" to j l

the Contract) exceeds 2018 MW, FPL shall pay Southern l Companies at the rate of $3.00/MWH for each MW scheduled during such hour in excess of 2018 MW; otherwise FPL shall pay Southern companies at the rate of $1.50/MWH for energy l scheduled pursuant to the SCE&G Agreement not in excess of 2018 MW. Examples showing the application of this payment provision are set forth on Attachment 1 ko tihis Service  !

Schedule, which attachment is incorporated herein by reference. The examples will govern the interpretation of this provision.

Section S441.3 -

Minimum Payments for Priority Service and q Early Termination of the SCE&G Agreement: In consideration I of the service priority established in Section S3.3.2, FPL 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 i

purchased from SCE&G. In the event that the SCE&G Agreement expires by its terms during the operative 90-day term, or is terminated during suct 90-day term with the mutual consent of FPL, the minimum payment hereunder shall be (i) $5,000 per day multiplied by the number of days the SCEGG Agreement

(

(

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 $75,000.

Section S4.2 -

Presentation and Payment 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 month shall be stated in an original invoice presented by Southern Companies to FPL at least two work days before payment is due. For information purpo~ses, a copy of such invoice may be transmitted by Southern Companies to FPL on or before the 10th day of the next month by means of telecopier or other similar cermunication device followed by delivery to FPL of the original cf such telecopied invoice as specified above.

)

On or before the fifteenth (15th) day of the next month, FPL 1 shall make payment to Southern Companies in accordance with the invoice in irmediately 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 adtance by mutual agreement l

o-.

i

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

i

(

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 Yorkf 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 i

insolvency of any of the Southern Companies or proceedings l against Southern Companies under the bankruptcy laws, FPL i shall have the right to make the payments called for by Section S4.1.1 directly to SCE&G.

Section S4.3 - Disputed 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 l

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, 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.

. l t

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 1

\

consequential damages) arising out of the failure by SCE&G - l 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 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, without recourse, any rights which Southern Companies have under the SCE&G Agreement with SCEEG 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 protect Southern Ccmpanies frcm and against any costs, losses or expenses, including attorney's fees,' associated with or arising out of any such assignment or proceeding.

ARTICLE.V MISCELLANEOUS PROVISIONS Section S5.1 -

Reculatory Approvals: FPL and Southern  !

Ccmpanies recognize that this Service Schedule S and the I l

! SCE&G Agreement are required to be filed with certain regulatory agencies including the Federal Energy Regulatory l

. l t

Commission. To such end, the Southern companies agree to l take steps promptly to file this Service Schedule with the Federal Energy Regulatory Commission ("FERC"). Southern Companies shall also request a waiver of the notice requirements of the Federal Power Act and Section 35.3 of 1

FERC's regulations to the extent necessary to allow this Service Schedule to become effective as early as June 1, 1985. FPL agrees to cooperate and assist Southern Companies in securing conclusion of any review by FERC of this Service Schedule S without significant change hereto, in an expeditious manner.

Section SS.2 -

FPL Responsible for Delivery into Florida:

j It shall be the sole responsibility of FPL to arrange its receipt of energy under this Service Schedule S at the Southern Conpanies - Florida interface. In this connection, FPL shall be responsible for any arrangements with other Florida utilities necessary to allow transfers of energy contemplated under this Service Schedule S.

Section SS.3 - Adoction by Reference of Provisions of the Contract: Except as specifically stated in this Service Schedule S, the provisions of the Contract shall apply to i purchases and deliveries I

contemplated by this Service Schedule S; provided, however, that in the event of any inconcistency between the provisions of such contract and

O

t. h.

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

Section S5.4 - This Service Schedule Not to be a Precedent for Future Transactions: By executing this Service Schedule, the parties shall not be deemed to have agreed on any method of pricing, energy priority or ratemaking principle for the purposes of future contractual negotiations or with respect to any future regulatory or court proceedings regarding future contractual relations between them, nor shall any of the parties be prejudiced with respect to any position that any of them may desire to take in any such future contract negotiations or proceedings involving such future contractual relatienships.

. [The next page is the signature page, page 19.]

l 4

4 I

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18 -

1 ft IN WITNESS WHEREOF, the parties hereto have caused this 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 ,

/ 7 4 ,n f By

{g L. 4 Sward  !

ASSISI.cc sEORE*ARY Group Vice President Date: May 1, 1985 ATTEST: SOUTHERN COMPANY SERVICES, INC.

_dt By

% R. G. Usry Vice President g

Date: May 1, 1985 ATTEST: ALABAMA POWER COMPANY 6/' t 1MV By ff W  % --

R. E. Huffman' Vice President Date: May 1, 1985 ATTEST: GEORGIA POWER COMPANY

s. :d 4 B Ao .

/ red D. Williams v

Vice President Date: May 1, 1985 ATTEST: GULF POWER COMPANY r huu c)

C: '

By E.

Vice President Date:

fd$.k.

B. Parsons, Jr May 1.

F 1985 ATTEST:

e MISSISSIPPI POWER COMPANY l

//[, By ,[

' /- ]

H.'H. Bell, Jr. C Vice President Date: May 1. 1985 19 -

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

m

}

1

. Examples of Payment Provisions Service Schedule S Section S4.1.2 Example 1 Example 2 Example 3 I

Transaction Tvee _ (MWh) _ _ MWh)

( _ (MWh)

UPS 1418 1618 1718 Schedule E 300 300 300 Southern Purchase 300 300 300 From SCE&G TOTAL 2018 2218 2318 e

Schedule To FPL (MWh) (MWh) (MWh)

UPS 1418 1618 1718 Schedule E 300 300 300 Schedule S 270 270 270 (Net 10s Lesses)

TOTAL 1988 2188 2288 Paymen Due Under Section S4.1.2 (MWh) (S/MWh) (MWh) -( S /MWh) (MWh) (S/MWh) 300 3 1.50 100 9 1.50 09 1.50 00 3.00 200 0 3.00 300 0 3.00 l

TOTAL S 450.00 S 750.00 S 900.00 )

l l

CERTIFICATE OF CONCURRENCE

• This is to certify that Alabama Power Company, Georgia i Power Company, Gulf Power Company, and Mississippi Power l 4

Company assent to and concur in the rate schedule described below, which Southern company Services, Inc., has filed and j hereby file this certificate of concurrence in lieu of the filing of the rate schedule specified:

Service Schedule S dated May 1, 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.

SOUTHERN COMPANY SERVICES, INC.

By -

Robert O. Usry fe Vice President /

As the representative of ALABAMA POWER COMPANY GEORGIA POWER COMPANY GULF POWER COMPANY MISSISSIPPI POWER COMPAMY Dated: May 1, 1985 i

i

i 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 5 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 1,1985, such l service Schedule 5 being a new schedule to an interchange i

Contract dated October 18,1979, as subsequently amended on February 19,1981 and July 23,1981, among the same parties.

FLORIDA POWER & LIGHT COMPANY By: 5-b'S$

G/ L. Fioiard Date

Group Vice President l

l i

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l Dated: May 6,1985

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CALcH C2 DINOMAM 4

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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 Service Schedule 5 to an Interchange contract between Florida Power & Light Company and Southern Companies

Dear Sirs:

By cover of this letter, we are hereby transmitting for filing on behalf of Southern i Services, Inc. ("SCS"), acting as agent for AlabamaCompany Power Company, Georgia Power Company, Gulf Power Com and Mississippi Power Company (" Southern Companies") , pany Extended and Revised Service Schedule S to an interchange contract  !

i between Companies.

Florida' Power & Light Company ("FPL") and Southern Six copies of this letter of transmittal, Extended and Revised Service Schedule S and other supporting materials are enclosed.

Extended and Revised Service Schedule S replaces Service Schedule S to the interchange contract between FPL i

and Southern Companies. Service Schedule S was filed with the Commission on May 7, 1985 and by letter order dated June l 24, 1985 in Docket No. ER85-491-000 this Commission accepted Service Schedule S for filing and allowed it to become effective on June 1, i

1985. By letter dated September 23, 1 1985, Southern Companies filed a letter agreement extending l

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l

4 OALCH G CINCHAM 4

September 26, 1985 Page 2 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.

i Some background information may be 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 ("SCE6G") at points of direct interconnection between Georgia Power Company and SCEEG and contemporaneously deliver equivalent amounts of power and energy (net of incremental transmission i' 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 contemporaneous 1y 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, 1

1985.

The Extended and Revised Service Schedule S filed herewith, 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 Short Term Power Sales Agreement with l 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 l Southern Companies to enter into a new Service Schedule S I

with JEA and to revise the service schedule with FPL. It i 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 l Southern Companies.

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

! incorporated in the original Service Schedule S. ,

l l l

CALCH G CINOMAM

September 26, 1985 -

Page 3 Due to the general inapplicability of the Commission's regulations for the filing of this Extended and l

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 i

Commission's regulations. In addition, SCS requests waiver of the notice requirements of Section 35.3 of the Commission'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 provide both of these parties with a low cost energy source.

Accordingly, representatives of FPL and JEA are anxious to l

1 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 Co==ission's Rules and Regulations.

(c) Certificate of Concurrence issued on behalf i

of Alabama Power Company, Georgia Power Company, Culf 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 $700.00 made payable to the Treasurer of the United States, as required by Section 36.2(e) and (f) of the

Commission's regulations. This sums represents $500.00 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 l

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l l

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

R CALCH 0 CINGH AM '

September 26, 1985 Page 4 i

l evidenced by letter to the Federal Power Commission dated i November 19, 1963 as signed by Alabama Power Company,

{

Georgia Power Company, Gulf Power Company and Mississippi  ;

Power Company, together with a letter dated December 27, l 1963 from the Secretary of the Federal Power Commission to i each of these companies. -  ;

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

Yours very truly, J

j BALCH & BINGHAM t l

e

By --

O !{

t

- - ,/

Rodney Oj. Mundy /;'

Enclosures 00: Mr. R. E. Huffman Alabama Power Company P. O. Box 2641

Birmingham, Alabama 35291 Mr. Fred D. Williams Georgia Power Company i

P. O. Bcx 4545 Atlanta, Georgia 30302 Mr. E. B. Parsons, Jr.

Gulf Power Ccmpany )

P. O. Bcx 1151 '

Pensacola, Flcrida 32520 Mr. H. H. Bell, Jr.

Mississippi Power Company i P. O. Box 4079 i Gulfport, Mississippi 39501 '

l l

i

CALCH 0 OINGHAM 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 l

t i

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_._. _ ___--_ _-__- ~-. - _ _ . . _ - - _ _ _ - -

s,. ,

I EXTENDED AND REVISED i 1

SERVICE SCHEDULE S FOR  !

l 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 ju ' 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").

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i ARTICLE I - DEFINITIONS AND PURPOSE Section 51.1: The purpose of this extended Service Schedule is to set forth the terms and conditions I under which 1 i

Southern companies agree to purchase energy from South Carolina Electric & Gas Company ("SCE&G") at points of direct interconnection between GPC and SCEGG, 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 SI.3: " Revised SCE&G Agreement" shall mean the Short Cerm 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 JM ,

1985.

Secticn S1.4: "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. '

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I Section S1.5: "JEA Service Schedule S" shall mean the i Service Schedule S between Jacksonville Electric Authority

("JEA") 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 en 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 Shcrt 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 net be relieved of its obligations under Sections S4.1.1, S4.1.2 and S4.1.3 hereof to pay Southern i Companies for energy purchased from SCE&G pursuant to the

T 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: Southern Companies, on dats even herewith, entered into the Revised SCE&G Agreement and JEA Service Schedule S which provides for the purchas'e and receipt of power and energy by Southern Companies i'or 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&3 Agreement attendant to such purchase. FPL acknowledges and consents to all of the terms and conditions of the purchase arrangement between Southern Cortpanies 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, i

designation of ger.erating 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

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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 Companies entered into the Revised SCE&G Agreement 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 SCE&G.

Section S3.2 -

Schedules of Deliverv: FPL and JEA, after censultation and agreement with SCE&G, shall have the right to schedule the power and energy to be purchased by Southern Companies frem SCEEG for contemporaneous delivery to FPL and JEA. Under the Revised SCE&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 contemporaneously delivered to FPL and JEA, respectively.

Such schedules shall be by i

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

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energy set forth in the Revised SCE&G Agreement 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 ccmmencing 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 - Priority of Service: It is understood by the parties herete that the priorities of service established by Secticns S3.3.1 and S3.3.2 of this extended Service Schedule S are in addition to and override any conflicting recuirements, limitations and restrictions on power and energy delivery and availability set forth in the Revised SCE&G Agreement.

Section 53.3.1 establishes priority of service related to the Southern Companies-Florida interface and Section S3.3.2 establishes priority of service related te the Southern Companies-SCE&G interface. The rafety and reliability limitations on purchases and delivn:les under this extended Service Schedule S (as specified in Section S3.4 hereof) override the priorities established by Sections l

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l S3.3.1 and S3.3.2. Except as provided in Sections 53.3.l ~ ,

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 extended Service Schedule S.

Section 53.3.1 -

Southern Companies-Fisrida 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 Centract; 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 Centract). If requested service under this Service Schedule S would cause the aggregate scheduled deliveries to FPL from Southern Ccmpanies acrcss 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

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such power to FPL in excess of 2018 MW shall not have j

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 abcVe 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 5 l

to the extent of the excess over 2018 MW by giving FPL 45 minutes prior noticer provided that if Southern companies i

have made a schedule commitment under Section S3.2 of this Service Schedule 5 for a longer period, such commitment shall be henored befere displacement by other sales to Ficrida by Southern Ccmpanies up to a total capacity amount of 2018 MW plus the increase of interface capability above 2900 MW.

section S3.3.2 -

Southern Companies-SCE&G Interface:

Insofar as the Scuthern 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 j Southern Companies and SCE&G (including indirect I i i I

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1 transmission paths through other utilities located in the northeast quadrant of the Southern companies' electric 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 m (total priority for JEA and FPL to the transfer capability at the Southern Companies-SCE6G interface); provided that i

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 i 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 interent. If Southern Companies give notice of their intent to the restrict Southern Ccrpanies-SCI &G interface to a total of 250 MW, FPL and JEA, 1

after censultation 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 f rom SCE&G to 250 MW and will inform Southern Ccmpanies of the amount of the remaining purchase to be delivered to each.

Section 53.4 - Safety and Feliabilite Limitations on Purchases and Deliveries: Purchases of power and energy by the Southern Companies for the purpose of making power and i

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l 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 capability of interconnection points with SCE&G and Florida) consistent 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 i

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

Section S3.5 - Curtailment and Resumption of_ Service: If a safety or reliability condition requiring curtailment under this Service Schedule S occurs, Southern Companies shall notify FPL, JEA and SCE&G thirty (30) minutes in aivance, if possible, otherwise as early as practicable, of the need to curtail, and shall cooperate with FPL, JEA and SCE&G in the

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 53.6 -

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 en 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. and 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 f

periods as may be mutually agreed upon by the operating representatives. The Southern Companies will be responsible for monitoring the actual incremental losses and making appropriate corrective adjustments in accordance with 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 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. During hours when FP! and JEA are both taking delivery under this extended Service Schedule and JEA Servica Schedule. S, respectively, the increment of energy being delivered to FPL shall be evaluated as having been cielivered prior to the increment of energy being delivered to JEA for purposes of determining the . incremental losses to be applied to the respective energy transactions in such hour.

Section 53.7 -

Communications between Parties: The i

Operating Committee, created pursuant to Article IX of the Contract, shall agree on procedures and time periods to effect the notifications contemplated by this Article III 1

and to coordinate the orderly schedule of power and energy by Southern Companies, FPL, JEA and SCE&G. l l

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ARTICLE IV - BASES FOR SETTLEMENT Section S4.1: FPL shall pay Southern Companies lfor the

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power and energy and other services provided hereunder, an amount equal to the amounts required to be paid as described

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in#$ection S4.1.1 by Southern Companies to SCE&G under the Revised SCE&G Agreement plus the amounts specified in Sections S4.1.2 and 54.1.3.

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Section S4.1.1 -

Payment' for Cost of Power and Energy Purchased from SCE&G: FPL agrees to pay Southern Companies, for the ' power and energy provided hereunder, the total amount as itemized on the invoice to Southern Companies by SCE&G under the Revised SCEEG Agreement which is applicable

's to FPL, 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 attendant to purchases'of power and energy under the Revised SCE&G Agreement for contemporaneous delivery to FPL

(- t including power and energy charges, minimum energy charges, generating unit start-up charges, damages, penalties or charges for failure to take energy pursuant to the terms and conditions thereof and any late payment charges or interest on disputed invoices attributable to late payment by FPL to Southern Companies; provided, however, that such late i payment charges, damages or penalties did not arise due to  !

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Southern Companies breach of its obligations under this extended Service Schedule S.

Section S4.1.2 -

Payment for Delivery of Power and Enerciv Purchased from SCE&G: If, during any given hour, the sum of (i) the power (MW) scheduled by SCE&G to Southern Companies for contemporaneous delivery to FPL pursuant to the Revised SCE&G Agreement, (ii) the power (MW) scheduled by Southern Companies to FPL pursuant to Service Schedule "E" of the Contract (" Schedule E"), and (iii) the power (MW) scheduled by Southern Companies to FPL pursuant to the UPS Contract (including any power (MW) scheduled pursuant to Service Schedule R-Replacement Energy Schedule to the Contract) exceeds 2018 MW, FPL shall pay Southern Companies at the rate of $3.00/MWH for each MW scheduled during such hour in excess of 2018 MW; otherwise FPL' chall pay Southern Co=panies at the rate of $1.50/MWH for energy scheduled for conte =poraneous delivery to FPL pursuant to the Revised SCE&G Agreement not in excess of 2018 MW. Examples showing the application of this payment provision are set forth on Attachment 1 to this Service Schedule, which attachment is incorporated herein by reference. The examples will govern the interpretation of this provision.

Section S4.1.3 - Minimum Pavments for Priority Service: In consideration of the service priority established in Section l

S3.3.2, FFL agrees, during the term of this extended Service l Schedule S, to make a minimum payment under 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 S, 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 -

Presentation and Pavment 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 month shall be stated in an original invoice presented by Southern Co=panies 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 before the loth day of the next month by means of telecopier or other similar cor=unication 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 i:r nediately available funds through wire transfer of funds or other mutually agreeable method of payment with the understanding that such funds are to be in I

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l the possessinn 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 nrime rate quoted on date the 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 S4.3 - Disputed 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 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 (1051) of the prime rate quoted on the date due by Manufacturers Hanover Trust Company in New York, New York, computed fron the due date to the date of payment (a day shall ecual one-thirtieth of a month) . Upon request by FPL, Southern Companies shall provide copies of i

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

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  ;

consequential damages) arising out of the failure by SCEEG to deliver or schedule any of the power and energy under the Revised SCE&G Agreement or for any other breach or omission by SCE&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 to FPL, without recourse, any rights which Southern Companies have under the Revised SCE&G Agreement so as to perm:t FPL to proceed directly against SCE&G for any such icsses, expenses, costs or damages experienced by FPL; provided, however, FPL shall save harmless and protect Southern Companies from and against any costs, losses or expenses, including attorney's fees, associated with or arising out of any such assignment or proceeding.

ARTICLE V MISCELLANEOUS PROVISIONS

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Section 55.1 -

Reculatory Approvals:

FPL and Southern 1 Companies recognize that this Service Schedule S and the l i

Revised SCE&G Agreement are required to be filed with certain regulatory agencies including the Federal Energy Regulatory Commission. To such end, the Southern Companies agree to take steps promptly to file this extended Service Schedule with the Federal Energy Regulatory Commission

("FERC"). Southern Companies shall also request a waiver of the notice requirements of the Federal Power Act and Section 35.3 of FERC's regulations to the extent necessary to allow .

this extended Service Schedule to become effective no later than September 30. 1985.

FPL agrees to cooperate and assist Southern Companies in securing conclusion of any review by FERC of this extended Service Schedule S without significant change hereto, in an expeditious manner.

Section SS.2 -

FPL Responsible for Delivery into Florida:

It shall be the sole responsibility of FPL to arrange its receipt of energy under this Service Schedule S at the Southern Companies - Florida interface. In this connection, FPL shall be responsible for any arrangements with other Florida utilities necessary to allow transfers of energy contemplated under this extended Service Schedule S.

Section SS.3 - Adoption by Reference of Provisions of the contract: Except as specifically stated in this extended 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 provisions of such Contract and this extended Service Schedule S, the provisions of this extended Service Schedule S shall govern.

Section SS .4 - This Extended Service Schedule Not to be a Precedent for Future Transactions: By executing this extended Service Schedule, the parties shall not be deemed to have agreed on any method of pricing, energy priority or ratemaking principle for the purposes of future contractual negotiations or with respect to any future regulatory or court proceedings regarding future contractual relations between ther., nor shall any of the parties be prejudiced with respect to any position that any of them may desire to take in any such future contract negotiations or proceedings involving such future contractual relationships.

[The next page is the signature page, page 20.]

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.' .i IN WITNESS WHEREOF, 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

' e' By v <

/ J p . Howard Group Vice President Date: -QS-$T i

ATTEST: SOUTHERN COMPANY SERVICES, INC.  ;

By , /

y R. O. Usry y '

Vice Presidept Date: 9/M/f8 '

ALABAMA POWER COMPANY I By / d Yh - - - - -

R. E. Huffma[

9 Vice Date: Presid F/2 nt)(6 y

ATTIST: ,

GEORGIA POWER COMPANY

) By'N  %

y" ' Fred D. Williams

\ Vice President Date: G l3d )RS ATTEST:

GULF POWER COMPANY By eweb y A E. B. Parsons, Jr. v

\ N Vice President Date: 0 /.24 l26 ATTEST:

MISSISSIPPI POWER COMPANY By 'l.,dL[

{ f H. H. Bell, Jr. - Vice Preslaent i Date: 4/ av/r5a 1

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U-Attachment 1 Examples of Payment Provisionc  !

Service Schedule S l Section S4.1.2  !

Example 1 Example 2 Example 3 1

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 D S'h ) (S FUfh) (MWh) (S MWh) (MWh) (S MWh) 300 9 1.50 100 9 1.50 00 1.50 l

09 3.00 200 9 3.00 300 0 3.00 l

TOTAL S 450.00 S 750.00 $ 900.00 I

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

Inc. )

NOTICE OF FILING OF EXTENDED AND REVISED SERVICE SCHEDULE S TO 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, 4

Gulf Power Company and Mississippi Power Company (" Southern Companies") 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 Revised Service Schedule S sets forth conditions and rates under which Southern Companies 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 person desiring to be heard or to protest such filing should file a petition to intervene or protest with the Federal Energy Regulatory Commission, 825 North Capitol Street, U.E., Washington, D.C. 20426, in accordance with Rules 211 and Procedure (18 214 of the Commission's C.F.R.

Rules of Practrice and petitions or SS 385.211, 385.214). All such protests 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 l Commission and are available for public inspection.

i Kenneth F. Plumb, Secretary

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t CERTIFICATE OF CONCURRENCE l I l

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 J / , 1985 to the Interchange Contract between Florida Power & Light i Company and Alabama Power Company, Georgia Power Company,

' Gulf Power Company, Mississippi Power Company, and Southern l Company Services, Inc., dated October 18, 1979, as amended. l SOUTHERN COMPANY SERVICES, INC.

By R. O. Usry

[

g/

Vice President As the representative of ALABAMA POWER COMPANY GEORGIA POWER COMPANY GULF POWER COMPANY MISSISSIPPI POWER COMPAh7 Dated: 7[.Av((8 t

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