ML19326D323
| ML19326D323 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 01/20/1965 |
| From: | Mosley W, Reasoner H CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.), DETROIT EDISON CO. |
| To: | |
| Shared Package | |
| ML19326D322 | List: |
| References | |
| 65-234, NUDOCS 8006090754 | |
| Download: ML19326D323 (20) | |
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i CONSUMERS POWER--DETROIT ED150'l POWER POO!.
H. C. Reasoner i Senior nsmber IEEE l The Detroit Edison Company l j Detroit, Michigan l V. J. Mosicy
[ ]l][) g i Member IEEE i Consumers Poaer Co.npany Jackson, Michigan l
A paper recomnended by the IEEE Power System Engi-neeri ng Co.nni t te.e , System Operat io,s Subconmi ttee ,
for presentation at the IEEE Winter Power Meeting, New York, N. Y. , Janua ry 31-l~ebrua ry 5, 1955 h *MW 4
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CONSIMrRS POWER--DETRGIT COISON ROWER POOL
- 11. C. Reasoner *
~" Senio Member IEEE W. J. flosley**
M mber IEEE Consumers Pow.r Co.upany and The Detroit Edison Coipany supply electricity to most of the State of Michigan's 7,800,000 people and to heavy demands of industry, comnerce and agriculture. Installed capacity of the two com?anies totals 7,000,000 kw. Only 150,000 kw of this total is in hydro and the remainder is thermal powar. In addition, twa nuclear plants,whose capacities at this time are not included in the total, are involved. The Big Rock Point Nuclear Plant, rated 75,000 kw, is presently producing electric energy in a rescarch and development phase. The Enrico Fermi Atomic Powar Plant, with an ultimate capacity of 150,000 kw, has attained criticality. It also is in a rescarch and development phase'but has not started electric energy production.
The electric transmission facilities of the Consumers Power Company and of The 0stroit Edison Company have been interconnected since 1928. During most of the first two decades of its existence, the inter-connection was used only as a last-ditch support measure. In fact , it was a matter of considerable individual company pride to operate in such a manner as to be completely independent under all probable circumstances.
Exigencies of the post-war ci rcumstances caused many changes so that but
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little of this early independence remains today.
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It is understandable that some di f ficulties must be faced in
, ef fecting optima.a utilization of interconnections. Full accord in planning between two systems inevi tably restricts ranagement's individual freedom of operation. Furthermore, many engineering and operating deci-sions must ~ run the gamut of task force, subcommi ttee, main committee and adninistrative committee scrutiny and study before decisions can be reached. Tne advantages of f all utilization of interconnections, however, ..
far outweigh the disadvantages.
After the war, the very rapid load growths 4daich were experi-enced and the resulting low reserve margins necessitated mutual assistcnce.
Inte cbnnection facili tics were strengthened and ware f requently the means of preserving service continuity. Our first effective power pooling agree-ment become operable in 1949 It was simple in form and, in effect, made general provision for .nost of the features which are comnon in intercon-nection agreements today.
- Assistant Manager ," Sys tem Development , The
- 02troit Edi son Co npany , Detroit, Michigan
- 0irector of Power Paoling Activiti,cs, Consumars Poser Conyany, Jackson, Mi chigan 1
s s 11riefly, our Pfe) a<;ree nent provi ded for spli t -saving, on econouy po.cr interthange and for e.. urgency assir,ta xe based on out-of-pocket costs for fuel. No capacity charge was involved u11ess one _,
party's res rve margin dropped belos a predetermined I" vel. In such a case , a purc hase was re iui red. Tne l'f 6 aqreanr nt also recogni/ed the possibilities 01 staqqered construction and r.cda provisions for it.
l<a.ever. during the first few years a f ter the war, the load growth was so rapid that hath conpanies w re pushed to 1.eep u) with l
l capacity requi rewnts and there was no opportuni ty f or staggering con-I struction. Later on, three cases of staggered constract ion w2re studied l l in detail, and twa ware actually signed, only to be later canceled by l changed conJitions. A larga part of the difficulty in uffecting stag- !
gered construction, based on separate engineering studies, is that it tends to be an af ter-the-fact chore. Each comeny was prone to .nake i
l independ:nt d2cisicas as to unit size, its location, and its service '
date. and it was very dif ficult for the interconnection connittees to juggle these nearly-crystallized facts to obtain an o<crall improve-mant. Either the location was wrcng or the timing was wrong, and it is difficult to dafer a unit once it is wall u, der way. It v.as recog-nized by both the interconnection committees and by managements that fully coordinated planning on a one-system basis might afford north-while savings. Accordingly, task forces w2re appointed and extensiva studies were made to determina the advantages of e one-system planning approach.
St.udv Procedura %_
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The approach to evaluating the economic advantages of a one- %_d system planning progran was simple in concept. Each company developed i ts own optinum long-range bulk power expansion plan. Tnis plcn <cas then priced out , ano annual costs ware calculated including fixed charges, fuct and operating expenses. A o,c-system catimu, plan was then developed. It, too,'was priced out. Its costs were found to be significantly loo 2r than the sum of'thc'-independant approaches. Although this conceptual approach was ind2cd simple, the studies to be m2anir.gful had to be on a consistent basis. This required the d2velopment of da-toiled planning rules and agreement on tuny items. For example , it was necessary to, reach agrenment on the proper return from a planning stand-
- point, o, life and depreciation rates, on property taxes and their probable future escalation, on basic uni t costs for generation and t ransmission equipment , on the f unda nenta l di f ferences in fuel costs at the di f ferent sites, and on f uel, construction and operating cost ascalation rates.
Satisfactory agreement was reached on oli necessary ite.,s and nany expansion plans w:re evaluated. Annual scvings on a 20 year lev-clized basis for the one-syste.n planning approsch were found to be several million dollars per year. It only remained then to prepare an agreement which would provide for a one-system operating and planning rw-
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appro ach and whi ch u.n:Id provide for an equitable sharing of the savings thi ch resul t ed I ro.n this approach.
- m, lia s i c l~catures of New Int erconner t i on Agre.?-nen t In preparing this n?w electric pnuer pooling agree nant , it was recognized that it would be difficult, il not impossible, to foresce at the tin 2 of wr i t i n g the many s i t ua t i o,s wS i ch woul d a r i se ove r the yea rs .
Accordingly, the agreement pro;32r was dividad into two major sections.
The fi rs t section would cover cnly the ganaral princi,ples involved, while the second section would include supplenents covering the neu2rous details.
Thase supplew2nts would be revised as changing conditions warranted. The material covered by each section is as follows:
Section I General Obligations Sharing of Pool P.eserve Responsibility Sharing of Pool U,i t Energy and Economy Energy Thi rd Party Energy and/or Capaci ty Exchange Non-Utiii ty Party Capaci ty and/or Energy Exchangas Ownership and Operation of Interconnections Betteen Parties Ownership and Uperation of Pool Associated Tra nsmis si cn
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Convittees Billing
~#. Michigan Public Service Ccmission Dua Di1igence, Coatinuity of Service, Liabi1ity Waivers Successors of Parties D2 faults Effective Date and Tern Review and Amand nant Section II Pool 0;> crating Principles and Procedures Pool Planning Principles and Procedures Pri nciples Re lat i ng to Co.rrni tment for Specific Pool Units Non-Utility Party Capacity Authorization Fi rm Power Contracts Interconnections Operation Prior to First Pool Unit 9
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Sectiin I was written with the follosing objectivas in ni nd :
- 1. To fulty coardinate the electric operatio, and expansion'os the two systems in order -
to athiev.- loarst overall cost and optimun security of pos r supply.
- 2. To share the prospective poolitui b ne f i t s equally, insolar as practicable, betwNo t h.: two conpanies for at least 20 years in the futur'e.
The first of these objectives was obtain2d easily relative to the second. To :stablish coordination, i t was agreed that the Planning Conni ttee would reconnend size , type and location of a pool unit on a one-system approach. It was further agreed that the 03 erat i ng Co n,i ttee would dispatch the two syste.ns as one, exchanging ecolony energy wh en-ever there is a difference in incremental costs, delivering pool unit energy in proportion to capacity connitment at an energy rate including only fuel cost a,d trans nission losses to the dzlivery point, and upholding service reliability on a one-system basis.
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Achievement of the second objective -- development of proce-dures for sharing benefits -- requi red many studies to test the various co,tractual concepts.
The second section, as previously s'ated, t would cover the numerous and changing operating and planning details, and also include the supplements covering the sharing of pool uni t capacity, fi rin con- g tracts, interconnecticas, and similar matters. (g M ~ _
.u w-Capacity Sha ri ng The Consume rs-Dr:t roi t Ediscn pooling concept is based largely on the principle of each coagany planning for the same reserve percent-age , and , in order to remove any inequities that may occur, an after- -
the-fact adj ustaent (which i s in rea li ty a paynent for capacity) is made on the basis of actual leads at the end of each peak load season.
The ir.plementatio, of this concept and principle is achieved as folloes.
At the tirse it is necessary to make a commitm2nt for acci- 1 tional pool capacity (usually three to four years in advance), each corpany prepares i ts load forecasts and capabilities for the particular i year under consideration. The new pool unit capacity (wnose size, location, t yp e , e tc. ,have previously been decided) is added to the total capacity of the pool. Calculations are then made to datermine the mgawatts each co.apany will require of the pool uni t in order to equal'ize percentage reserves in that period.
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100 inst allinq part y is re.ponsible for th" cost of financing, manninq, i<ae.truiting a nl:ig ratin; the poal unit. ha purc hasing party
. pays atter the nuit is syachronized, its share of fixed i.harges, plus
,iihli t inna l m. cu t i n g t <r, t s , p l u , es t inu ted ave s ay;' iu i n tenanr.c costs, in pm s h e. i n g party receiv.s its share of all enor<;y output of I he p a el unit and ,uys Iuri vi:.L s ar.d t rans ni ss i on losses Ior this en.rqy.
The purchasing > arty, f ro.n the date of synchroni za t i on of thi s project , pays its share of these costs monthly and continues these payN ots u1til the advent of the n2xt poal uni t. Th process is repeat-ed similarly for the succeeding pool uni t , wi th i t normally traing the case that the preceding pool unit's capacity reverts totally to the oa1 ng party, and all capacity sharing is accoglished in sharing the latest pool unit. Tnis v.c cell "short-ter.n" participation. Tne agree-maat is , hoaaver, suf ficiently flexible to pernii t long-tcro participa-tion should speci fic conditions warrant.
It it quite evident that this procedure alone could vary well result in inequities, da3 prirerily to load forecast error so far in the future. Tnarefore, at the end of each peak load season an af ter-the-fact adj ustcent is mad 2 Tnis adj ustment aay result in a Principal Capacity Equalization Charge, cr, i f the cdj ustm:nt involves matters such as mi d year capaci ty requi rements , capaci ty darati ngs , di f fering mai ntenance pract i ces , etc. , a Secondary Capaci ty Equaliza t i on Charge may result. In aither event, kilonatts of capacity deficiency are con-puted (if such actually occurred) to ahich a rate in dollars per kilo-val L per year and a iultiplicr are ap; lied in d2terminction of the charge one party oilis the othar. Tne multiplier is steppeo so that a ia<imun charge rate results when one party's accredited capacity is loa enough to jeopardize pool security, and a lessor charge rate results i f respective deficiencies exert less effect to actual adequacy of pool reserve.
If for some reason one company wishes to install capacity having unusual characteristics of dasign for experimental or other purposes, this capacity may also be shared by mutual agreement. Hoa-ever, i f the non-building party do2s not wish to participate cnd dec ns that st.ch gen: ration would not b2 ccononic or fi rm, it may decline to participate. Th2 building comany may pro:ced unilaterally, but such
' . capacity wil1 not be considrred as fim pool capacity for reserva re-qui r' nent J 3ternir.a tions unti l it has proven itself as reliable or until equivalent capacity is acequately guaranteed by the building party.
If at any tim: it becomes apparent that one party's load forecasts are in arror to the extent that the pool reserva may fall beloa the ninimun planned, then the party responsiblc for the defi-ciency mst make every effort to procure short lead time capacity.
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Transmission Tne t ransui .sion f acili ties as regards all poaling arranpnents -
are sonr.id. red in three uttyories as folioss:
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.T_91n gi_ni_tig,,,qi,,9 ,qt,1,y,,a_s,sp,qi_p,t_e,Q 33_t_lLa I-gul unit.
This is the transmission required in order to deliver the pool unit's capacity and energy frou the site into the system and is, there-fore, consid2 red for sharing purposes the same as the pool unit caps:ity. In other words , the fixed chargas , operating a,d maintenance costs will be sSared for this transmission in the sa.nc ratio as the pool unit capaci ty is shared, and payr-ents con- ,
tinue for the same length of time as a pool unit.
- 2. _T_r_ansmi ss i on Gri_d L i ngs ._
Transmission lines built to serve a pool function, but not di rectly associated wi th a speci fi c pool uni t , will be treated sepa-rately and will be shared i.n -cost and for a period as mutually agreed upon, dependant
- 7g upon the particuler specific situation.
3 Interconnection _Transmi ssion Li nns.
The annual cost of trcnsmission lines inter-connecting the two co.tpanics is shared on a 50-50 basis. Each party cans the facilities in its service area and pay.ments are made to equalize annual cost. These lines are con-sidered as long-term lines and the 50-50 -.
basis remains throughout the life of the interconnection agree,n:nt.
Other Parties All . pooling arrangements with other parties outside the State of Michi gan must be handled as a joint venture with the two itichigan conpanies acting ~ as a unit.
All arrange.r.ents wi th utili t ies , municipa is , industrials having generation, etc., within the State of Michigan, will be negotiated indi-vidually by the company in whose area such other party is located.
l How2ver, any such capaci ty to be considered fi rm in .the Consuners-D?troit Edison pool must be approsed by the other pool member. _
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o Any n m-u: i!iiy c.,pacity thal is inctudad in pool capacity
.nu . I h. ipi n an t e.ul b y the spo n.or i rq ; mal me.u'e r. Su h guarantec com-mits the sponsori nq p.ir t y to imiediatelv take steps, even to the extent
~*N 01 exts.nardinary io ts, to rep t.ite ' tha t capacity if the loss results in a tendency to impair piol security.
En. riiy_
All energy interchanq.s between the parties (excep t that asso-c:ated with a specific nool unit) i s considered as econo.ny energy regardless of u, intentional , en2rgency or other ci rcu: stances , and all pa y.,ie n t s for such 2nergy are based o, spli t-the-savings. All generation in the pool will b2 dispatched strictly for pool-wide econony (af ter area security requirements are satisfied), and energy crossing tha interconnectica is considered as free flpaing with ,o attempt to restrict such floas et any anount less than dependable capabili ty of the inter-connecting linas.
0 >e ra t i on Und2 r N aa Arge_152nt.
Since the new agreement went into affcct in D2ce.nber D52, the installation of two pool u,its has bacn agreed upon. The first unit, Jam 2s H. Canpball No. 2, ra ted 335 rer.i, is located o, Lake Michigan naar Grand Rapids and is plann2d for service May 1., 1967. Tna secend, Trenton Channel Na. 9, is located just south of Detroit at the trouth of
,, the Detroit River, is rated 500 :na, a,d is planard for service in
- Janua r y 1933. Cecisions are expected shortly w'aich will locate the f third a,d fourth uqits in the Saginaw Bay and Lake Erie areas.
Plannina Procedures The study pro:ed. ire follooed to davalop the most economic ex-pansio, pattern is essentially as follons.
A nunbar of al ternate- expansion plans covering the next 20 -.
years are selected for evaluation. Tnare will be one series of plans wherein the only variable will b2 irli t size, another series with dif-ie r i ng s i t,e d 2ve l op nen t s a s the va r i a b l e , still other series with nuclear and peaking ca?aci ty as tha variables.
The capital costs for each plan in today's dolicrs are esti-mted and fixed charges are corputed and levelized with the aid of a co.nputer program. Co,structio7 costs are escalated as are property taxcs. Capital recovery ra tes are varied to reflect the expected li fe of the several types of equipment.
A cosanion computer program calculates the annual and lev-clizco fuel cost of each p ograrn. .tnning und vaintenance are estis ited and addad to the results of the comuter progra n to obtain year-by year 4-mg 8 4
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It is inter <isting and leveli7ed annual costs for each expansion plan.
to note that the LadL force is alread-/ sufficiently experienced to ini- ^
tial!y selett the two or three plans which wilI be in final contention ,
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as the opt ium n iha.im. thua l ly annua l costs for those two ar three plans will be sulliciently close that j udgment or intangibic factors ciay be daciding.
W'ien the studies have been co.upleted, reco.wnendations are pre-sented in - joint top .nanagexnt nec t i ng. These reconw2ndations include the need f or nea generat ing rapaci ty , w'1cn and where it should be in-A decision involving two stalled, and the economic unit size and type. In such a uni t s . 0:1e on each sys tem, has ow2rit w5cre it i s practica l .
case. Conpany A agrees to install the first such unit, and Coupany 8 agrees to install the othar. Supplemnts to the main agreenant are drawn which maka provision for the sharing of output and annual cost of each unit for an appropriate period.
The principal conpon2nts of such a supplenant are as folic.ss:-
The estimated cost and net capability of the unit.
Its esticated heat rate and fuel cost.
Tne expected peak load and capability of each party, An cllocation of the pool uni t capaci ty to r~ ' "
i n wh i c:i \_
cach party for the peak load season 3 ..
it will be a pool unit.
The capacity billing charge to the purchaser Wiich includes an estimate of (a) the fixcJ costs for the specific investi..ent for the unit and the annual cost of its transmission--
sunk costs are excluced; (b) the cost of addi-tional operating labor; and (c) estimated ,
long-term average maintenance costs.
These estimated costs are revised j ust prior to service to reflect the actual costs incurred.
Other items covered include expected average transmission costs for pool uni t energy to the i nterconnec tion .netcri n g poi nt , the rate to be applied to principal and secondary capacity equalization charges, the planned poal reserve percentaga, and the .niniman reserve percentage, and a detailed breaisdown of the expected plant and transmission constructio, costs.
is the The d. tciled engineering and design of a unit -
responsibility of the ' installing party. '
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. Op.ratinj Pror. lurr
.e D ice a pw,1 uni t is installed, it is dispatched, j us t as any ot her uni t , t o p rovi d.: the loerr,t overall cost of energy delivered to the di:.t ri bal i on syst em. Its capaci ty i s al loca ted hetuuen the two parties i. n accordance wi th the terms of the supplemental agreemnt , as is its h.$ur-by-hour output. The actual f ual costs and the running and est inuted av.'ra3N .nintenance costs are shared in the same proportion.
W'ien a poal uait is shut down rer repai rs , cach party loses its share of its capability; ho.vever, maintenance and d0y-to-day operating sched-ules are fully coordinated.
One-systeu dispatch to provide the loacst overali costbetween of delivered power is pre:.cntly being handled by f requent contact dispatch 2rs. Edison's en-line dispatch coanuter periodically calculates incrennntal cost data. Similar data for the Consumers' system has been prepa,ed in chart and tabular form. As the differential in The costOperating changes, the dispatchers adj ust the interchanga schedule setters.
Conni ttee is stedying the econor.ic feasibility of a pool dispatch center.
In this connection it should be borna in mind that fual costs and thermal efficiencies of the two systems are quite comparable; hence, incremental cost differentials are small. Tha benefits to be realized by automatic intercompany dispacch ray not be large.
Interconnectioi Canacity l-lichigan interconnection capacity enlargement and extension
' ' ')' ca, be achieved in several ways , ei thar wi th Ontario, or with Ohio-Indiana, or both. At the present time a new and 2xpanded interconnec-tion agreement betw:en The liydro-Electric Power Commission of Ontario and the Michiga, conpanies i's nearing completion, and this agrecm:nt will provida for a third circuit betw2cn Ontario and flichigan. Techni-cal a,d economic evaluaticns of interconnections with others are being continuously pursued. Also, interconnection capaci ty between the Ionsumers and Edison systems is presently being increased by installa-tion of a fourth circuit and by a major strengthening of one of the three existing ties. The successf ul conduct of these undertakings lias been e:: pedi ted by the Con'sumers-Det roi t Ediscn Pooling Agreement , and would have been much more di f ficult uncer the former agrecmant.
Conci sion In its two years of existence, tha new pooling agreement has resulted in joint ef fort on an enlarged scale in many areas, particu-larly those of system enginacring, planning and operation. Although more investigations are required to achieve joint d2cisions, each deci-sion is more secure and attendant delays have not handicapped the outcone. Throughout the first two years , addi tional studies have brought factual assurance thac the new agreement is beneficial to both corpanics and there is reassurcnce that anticipated substantial future' benefits will be achieved. _
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Ja1 20, 1955 l
' ATTACleEUT B W. .
CO'iSUPERS PCWER CCMPANY B
CONTRACT FCR ELECGIC SERVICE AGREEMENT, made and entered into as of the 27th day of June, 1966, between CONSUMERS PWER CCMPANY, a public utility corr. oration authorized to transact business in Michigan, and having its principa office therein at Jackson, Michigan, horcin termed the Ccepany, and the ALPENA POWER CCMPANY, a public utility corporation authorized to transact bEs'iiisTs73^$EGdI7eEilaving its principal office therein at Alpena, Michigan, herein terned the Custener.
WITNESSES:
That, in consideration of the reitual agreements herein to be kept and per-formed by the parties hereto, it is agreed as follow :
l'. ENERGY TO BE WRNIS*-*ED:
Subject to the teres and conditions hereof, the Customer agrees to purchase and accept frc the Company, and the Ccepany agrees to supply and sell to the Custc er, electric enerEy as auxiliary er standby to the Customer's electric generating plants, which are used by the Custerer to aupply electric energy to its distribution system within its. service area, but not in encess of 50,000 kilovolt-a: peres, being the capacity reserved by the Company fer the Customer's use. Tne Ccepany vill. at the written recuest of the Custo: er, =ade at least thirty (30) days in advance, permit an increase in such reserved capa-city provided the Cc pany has pcuer available.
- 2. CHARACTER LP SER7 ICE:
The supply of electric cnerEy to be furnished by the Company to the Customer shall be alternating current, three phase, 60 cycles per seccnd, at apprcximately 138,000 volts. -
3 POINT OF DELP/ERY:
The point of delivery for all electric energy to be supplied here-under shall be at the Custo=er's side of the Cc pany's 138 kv metering instal-lation Ic'cated in the Ccepany's and Custener's joint substation located adjacent to Four Mile Dr.: in Section 7, T31N, RSE, Alpena Tcunship, Alpena County, 4 Michigan.
- h. !ETERING:
The Company shall furnish,. install and maintain suitable and adecuate meters and cetering ecuipment for the reasurement of maximum demands rnd.
kilcwatt-hours delivered. Metering shall be at 133,C00 volts at the point of delivery described in Sectica 3 hereof and two per cent (2%) shall be deducted frce the neter readings thus cbtained for billing purpcses. Tne Custc=er shall previde a scitt.ble lecition for the Ccapany's metering ecuipmen and afford l
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adequate protcetica to avoid da=aga thereto or any tamptring or interfarence with such metering ecuipment. The Company shall have access to its said metering equipment by its proper representatives for the purpose of installing,
' replacing, removing, inspecting and maintaining such equipment. The Company shall pericdically inspect and test its meters and keep them within accepted standards of accuracy. The Custo=er shall have access to and the right to participate in the inspecticn and testing of such meters by its proper repre-sentativ.es. The Customer shall also have the right to read any of said meters at all reasonable times. Said ceters shall be tested annually by the Company, and if the Customer desires more frequent tests, it shall bear one-half of the expense thereof. .
5 _Er'JIR4ENT TO BE FUPSISHED:
(a) By the Comrany:
In addition to its said meters and metering equipment, the Company shall furnish and maintain all transmission lines and other ecuipment for the delivery of energy to the point of delivery described in Section 3 hereof. The Company, its agents and employees, shall have full right and authority of ingress and egress at all times on and across the premises of the Customer for the pur-pose of constructing, operating, maintaining, replacing, relocating, repairing, moving and removing its said transmission lines and equipment. Said right of ingress and egress, however, shall not unreasonably interfere with the use of the premises of the Customer.
(b) By the Customer:
The Customer shall furnish and maintain, at its expense, all facili-ties and eculpment required to control, regulate, transmit, distribute and
, utilize such energy beyond said point of delivery. The design, plans, speci-
. fications and installation of the Customer's 138 kv facilities and all ecuip-ment connected directly to said 138 kv facilities shall be subject to the inspection and approval of the Cc=pany. However, the Company shall have no legal obligation or responsibility with respect to the installation, repair, maintenance, replacement, relocation, rc= oval, operation or adequacy of any facilities and equipment located beycnd said point of delivery.
- 6. RATE: .
The Customer agrees to pay for such electric energy delivered to it hereunder in accordance with the following rate, to-wit:
Capacity Charge:
$1.80 per =0 nth per hva fcr the first 2200 kva of billing de and,
$1.60 per month per kva for all over 2200 kva of
- billing demand.
Energy Charge:
.7d per kwh for the first. 6,C00,000 kwh used per month,
.64 per kwh for all over 6,000,000 kwh used per month.
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Puol Cosu Adjustment Chagge:
. When the weighted average cost of all fuel in storage at the Company's interecnnected electric generating stations, at the end of each of the three months i==ediately preceding the month covered by the Castc=er's bill, is nore or less than 33 0 cents per million stu, there shall be a correspond-ing increase or decrease of .0012 cent per kilevatt-hour in the charge for all kilevatt-hours included in such bill, for each full 0.1 cent per million Btu increase above or decrease belev 33 0 cents per million Btu.
Minimum Charge:
The capacity charge included in the rate, but in no case less than $50,000 per =cnth.
Delayed Pav=ent Charge:
Two per cent (2%) of the total =onthly bill if not paid within twenty (20) days frca date rendered.
Tax Clause:
Bills shall be increased within the limits of political subdivisions which levy special taxes, license fees or rentals against the Ccapany's property, cr its operatien, or the pro-duction and/cr sale of electric. energy, to offset such special charges e.nd thereby prevent other customers frcm being cc=-
pelled to share such Iccal increases. Bills shall also be in-
,- creased to offset any nov cr increased specific tax or excise
- imposed by any governmental authority upon the Ccapany's generation or sale of electric energy.
Determination of Maximum Demand:
The maximum demand or rate of use of electric energy for each month shall be the greatest average lead in kilovcit-amperes during any fifteen-minute period of such nonth as registered by suitable instruments installed by the Company to make such determination.
Deternination of Billing Demand:
The billing demand for each conth shall be the maximum demand for such month but not less than 60% of the highest billing demand for the preceding eleven months, ner less than 18,000 kilovolt-ampercs. .
- 7. LCAD BAIAI!CE A iD USE OF SEEVICE:
The Caste:er she31 no arrange its circuits and opera't'icns as to avoid a current unbal;nce between tha three phases of more than fif teen per cent (15%)
between th,e high and Ice phases. The Custemer and its custemers shall so use
- tha ssrvico as nc to disturb or interfere with the Canpany's service to its other customers. No type of electrically operated device which could cause objectionable operating conditions on the Ccmpany's system shall be attached by the Customer without the consent cf the Co=pany.
- 8. PARALLEL OPERATION: -
- It is intended that the Customer vill operate its electric gener-ating plants in parallel with the Company's system. The Customer agrees to install and properly maintain' suitable approved appliances and devices and to provide sufficient trained personnel to protect its equipment and service and the equipment and service of the Company from injury or interruptions which might be caused by a flow of current frca the Company's lines to the Customer's connections er from a flow of current from the Customer's plants to the Company's lines, and to assume any loss, liability or damage caused by a lack of such protection.
The electric teasuring instruments from which infor:ation is taken for billing purposes vill be equipped with ratchets or attachments to prevent a credit to the Cus cmer for any current which its plants may generate and send back into the Cc=pany's lines.
i 9 COmlECTIO :S WITH OTHERS:
i It is agreed that the electric enercy to be supplied by the Company to the Custcmer hereunder shall be used solely to meet a part of the require-ments of the Custcmer in the operation af its electrical system located in the State of Michigan. It is further agreed that without the written consent of the Company, the Customer shall make no interccanection with any persen, fir =,
corporation, government agency or other entity which might result in either party hereto becc=ing engaged, directly or indirectly, in the transmission
- or sale at whclesale of electric energy in interstate or foreign ecmzerce.
.If the Custcmer nakes such an interconnection without such written consent, the Company ~ nay, at its option, terminate this agreement forthwith by giving written notice of its intention so to do. .
- 10. LIABILITY:
Except as to the capacity and minimum charges payable by the Customer, prescribed in said rate, neither party shall be liable to the other for danages for any act, omission er circumstance occasiened by or in consecuence oJ any act of God, labor disturbance, act of the public enemy, var, insurrection, 4
i riot, fire, storm er floed, explosion, breakage or accident to machiner" or eculpment, or by any other cause er causes beycnd such party's control, in-cluding any curtail =ent, crder, regulation er restriction imposed by govern-mental, military cr lawfally established civilian authorities, er by -the hereto. of necessary repairs upon the property or equipment of either party making
- Notwithstanding the provisions of the foregoing paragraph cr any other provision of-this agreement to the contrary the Customer shall at a,11 times assume all liabili,ty for, and shall indemnify and save the Company har.:-
4 less from any and all damages, losses, claims, demands, suits, reco/eries, costs and expenses for injury to or death of any person or persons whcm30ever, T
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or for any loss, .struction of or damage to any property of third persons, firms, corporations, or other entities, arising out of cr resulting frc:,
either directly or indir6ctly, the Customer's facilities, or arising cut of or resulting frem, either directly or indirectly, the electric energy sold hereunder after it has been delivered by the Cc pany to the Customer.
- 11. BIIIING:
The Company shall render to the Customer, within a reasonable time after the first'of each month, proper billing for electric energy furnished during the. preceding month. Such acccunts shall be paid by the Customer within twenty (20) days after date rendered.
- 12. RENEGOTIATION OF RATE:
Either party shall have the right to renegotiation of the rate to be charged by the Company, as described in Section 6 hereof, at the following times and under the follcwing conditions:
(a) Either party shall have the right to renegotiatien of said rate for any purpose on June 27, 1971, and at five-year intervals thereafter, hereinafter called the. " regular renegotiation dates".
The party desiring such renegotiation shall initiate the same by giving notice in writing to the other party at least ninety (90) days prior to a regular renegotiation date.
(b) Either party shall also have the right to renegotiation of said rate frc time to time in the event the Company's Commercial' and Industrial Primary Service P. ate D, a copy of which is attached hereto for reference purposes, is hereafcer modified by any future
, revision cr amendment thereof, supplement thereto or substitution therefor which may be filed with and approved by the Michigan Public Sarvice Cc: mission, or in the event a customer of the Custener, g'taranteeing minimum monthly billing detands of 7500 ku or =cre, elects to be served by the Customer at a rate ecuivalent to scme other Company rate applicable to such service. The party desiring such renegotiation shall initiate the same by giving notice in
, writing to the other party within thirty (30) days folJcuing the date that such =cdification of said Rate D becc:es effective, or' within thirty (30) days follcwing the date such customer of the Customer =1kes electic'n as aforesaid. The purpose of such renego-tiation shall be to adjust said rate as may be necessary to assure substantially the same rate of return to the Customer if it resells a substantial portien of the energy furnished hereunder at a rate ecuivalent to said fiate D after such =cdification, or such alternate .
rate as afcresaid, as it wculd have obtained if such energy were !
resold by the Customer at a rate ea.uivalent to said Rate D prior to !
such modification of said Rate D or election of such alternate rate. l In the event that the parties cannot agree upon a rate as a result f
of such renegotiations within ninety (93) days following the written notice specified abcVe in subparagraphs (a) and (b) of this Section 12, then the' matter of the rate to be charged shall be referred to the Michigan Public .
Service Cammissicn, er its successor, fer determination by arbitration and the '
decision of the Ccamissicn shall be binding upon the parties hereto. In the ,
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event that the Michigan Public Service Commission, or its successor, deter-mines that it is without power or jurisdiction to act as arbitrator hereunder or Lf for any other reason it refuses to act as such arbitrator, then the matter of the rate to be charged shall be referred to a beard of arbitrators to be selected by the parties as follcws: each party shall, within ten (10) days following the refusal of the Michigan Public Service Ccemission, or its successor., to act, select an arbitrator and the two arbitrators so selected shall, within ten (10) days following their selection, select a third arbi-trator to act with them. In the event either party fails to select an arbi-trator within said ten (10) days, or in the event that the two arbitrators so selected are unable to agree upon a third arbitrator within said ten (10) days, then in any such event such arbitrator or arbitrators shall be appointed by the senicr judge of the Circuit Court of Ingham County, Michigan. The decisicn of a majority of said arbitrators shall be binding upon the parties hereto.
A judgment of the Circuit Court of Ingham County, Michigan, or of any other court of competent jurisdictien, may be rendered upon an award of the arbi-trators made $n accordance herewith. The rate so determined by renegotiation or arbitration shall be applicable to electric energy' furnished hereunder frca the beginning of the five-year period under negotiation (or from the date that a modification of said Rate D, or election of such alternate rate as aforesaid, became effective if the renegotiation resulted from such nodification or election) until such time as either party shall obtain renegotiation of the rate as hereinbefore provided. In the event that neither party hereto notifies the other in the time specified above in subparagraphs (a) and (b) of this Section 32 of its derire to have renegotiation of the rate, the rate at that time in force shall continue in force until cuch time as either party shall obtain renegotiation of the rate as hereinbefore provided.
13 TERM:
Tnis agreement shall be in effect for an initial term commencing on June 27, 1966 and ending at the close of the day en June 30, 1950, and frca year to year thereafter until terminated by mutual consent or by either party giving the other at least thirty-six (36) months' written notice of its desire to terminate the same at the expiration of said initial term or at the expira-tion of any yearly period thereafter.
Ih. GOVFRIEEP"AL AUTHORITY: .
This agreement is subject to valid laws, orders, rules and regulations of duly constituted authorities having jurisdicticn.
15 SUCCESSORS A' D ASSI'G::S:
This agreement shall inure to the benefit of and be binding upcn the successors and assigns of the respective parties hereto. This agreement shall not be transferred by the Customer or otherwise alienated without the Ccmpany's written consent.
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- 16. CANCELIATION OF PREVICUS CCNTRACT:
This agreement supersedes and cancels, as of the effective date hereof, the agreement between the Cc=pany and the Castomer with relatien to the supply of electric energy dated July lo, 1959 IN k'ITIiESS hTEREOF, this agreement has been executed en behalf of each of said parties' by their duly authorized officers on this 18th day of November , 1966, but to be effective as of June 27, 1966.
CONSUMERS PCh'ER CC:@ANY e Arrtovso /,s to ro:ua By "W _
N ViceJ4esident CCl45Ukti$ POWF.3 COMPANY LEG At CAPAST#ENT g- /4[ <,4 4 g 3g /[d -
Secretary ALPpIA POWER C0!@ANY By eG(k *S. 0 0 ~
Ji Presi en M t w .fi k' Attest L I,hwk i s l
Sjcretary a
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Third Revised Sheet No.14.00 bl. P. S. C. No. "T - E' ~ -ie Cancelling Second Reviszd Sheet No.14.00 Cansumers Power Corni.
(To redse Acad:bility and Mcn:My Rate)
CO.WIERCLtL MD I.YDUSTRIAL I'IIDIAltY SEftVICE .
(CONTRACT RATE "D")
Availability:
Open to any customer desiring primary voltage service for Commercial or Industrial use where the billing is 501tc or more.
Nature of Service:
Unregulated alternatin; currett, 60 cycles. sing!c phase or three phase, 0.400 ncminal volts or more, except t where the lia voltarc execcds 14.-1C0 vo;u the Company m.ty raake one transformation to any standard supply voltage including these below 2.400 volts. The particular nature ci the supply voltage in each case shall be de-termined by the Cc=pany.
hlonthly Rate:
Capac ty Charge:
$2.53 per kic for the first 100 kw cf billing demand, 5150 per Itc for th3 r. ext 300 kw of hi!! n demand,
$1.45 per kic fo- the ncst 1.600 la of bdhn ; demand,
$1.30 per Lt:: for t% nnt 15.000 kw cf iri!!ine dcwmd.
5130 per kts fer all over f0,000 ktv of bilhn:: demand.
Energy Charge 1.050 per kwh for the first 50.000 Lwh, 40c per kwh for the next 150 kwh per itc cf bi!Iing demand,
.75.' per kwh for the nnt 1.0.0.000 M ,
.65e per kwh for the ncrt 154CO.C:n ktch,
.60t per kwh for the excess.
N Fuel Cost Adjustment .
When tha weighted avera;e cost of all fuel in stora:te at the Ccmpany's interconnected clectric generating sti-tions, at the end of each of the three months immediatele precedme the month covered be the esemer's hi!I.
is more or less than 33 0 cents per radiion 13tu, there sh51: Le a conesponding increase or cecrease of .C012 une per kilov att hour in the char:e for all kilowatt hours included m such bill, for each full 0.1 ccnt per rn:lton Ltu
. inetease abose er ecrease below no cents per mi!!!cn Bru.
Tax Adjustment
(.i) Bill. shall be increa>cd within the hmits of politfeal subivisiens which levy special taxes. liconw ins or rentals agaimt the Campanvi preferty, er its eperat:on, cr the prcduction and/or sale of e!cctric energy, to o:fset suc!i special char,rts and thereby prevent cther customers from bemg compelled to share such local mctrases.
(b) Ba!! Shall be increascd ta offut any r.ew cr increased specific tax er esci.se imposed by any governmenul authority vpon the Cornpiny's generattun or sale of elettrical energy.
Minimum Char;;e:
The capacity charge included in the rate.
Dela>cd Pannent Char;e
- A delayed payment charge of 2'*o of the total net bill shall be added to acy bill which is not paid on or before the due date shown thereon. .
(Continued on Shect No.14.01) t tuued: July II, 2000 Effective: For all bil!< scheduled to Le lat:ed
' ' ' ' ~ ~ ' ~ on and after July 11, 1966 lisued un&r authorit/ cf crder of the h!. lean Pell.c arwe, CanmhUon,
. dated June 23.104 in C se No. C.0143 Issued by: J.11. Campbell, President, Jackson, Micid;;2n -
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Fifth Revised Shict No.14 01 M. P. S. C. Nr. 7 - E!- ie Cancelling Fourth Revisxd Shett No.14.01 Consumers P4wer Comt ~
(To revise Billing Demand cnd include Adiustment for Potccr Factor) s 11 ATE "D" (Continued from Sheet No. I1.00)
Billing Demand:
- 1. The billing demand shall be the kilowetts (km) supplied daring the 15-minute period of maximum use in the billing month adiusted as specified below, but net leis than GO% of the highest billmg demand of the preceding 11 rnenths, nor less than 50 kw.
- 2. When a customer guarantees in writing a billing demand of 2.500 ktu cr more for a minimum term of twelve consecutive months, the billing demand each month duru:g the period of such gusrantee shall be the average of the four maximum weekly demands for such inor.th ithe peried ruter the first 21 days of each month being con-sidered to be the fourth weekh provided that na btume demand shall be less than 60% of the highest bdling de-
- rnand of the preceding 11 months. and in no case less than 2.500 Atc.
- 3. When a customer a:rees in writing to restrict las demt.nds c:,tablishcd during the months cf November and Feb-ruary to 50%, and iiurin;: the months of December and January to 00% of the highest billing demand c.f the -
preceding 11 months, the bilhng demands shall be determ.ned as follows:
(a) For the months of Netenber to February, ine!usive. the bilhn<t demand shall be deteTnined as provided un-der paragraph I or 2 eboce, schichever is applicable; except that there shall be no mimir.um inhing demand.
(b) For the months of March to October, inclusive, the billing demand shall in all respects be the same as pro-vided under paragraphs 1 and 2 above for regular nonseasor.a1 customers.
(c)If, during any of the taenths of November to Feb.uary, melusive. a customer fails to restrict his desnr.nds as provided herein, one-half the execss over and above the restricted demand shall be added to the bdling de-mand, as norm 2ily computed, to determine tho buhng demand for that particular month.
Adjastment for Off.I'c;.k llour Operation:
Demands created durir.g c!!. peak hcurs desiensted by the Company shall be adiusted as provided in t!.e Com.
pany's current "S hedub cf Off-Peak llours (Sheets No. 7.00 and 7.01) filed with the Michi;an Fublic Semce Commission.
Arliustment for Foteer Fccton This rate requires c determiswtibn cf the cecrage poner factor maintair.ed by the ctatomer during the bd!n period. Such cte-ace p:wcr factor teill be deternuned thrvuch meterina cf ice:ing Ldoter. hours cnd Lilac::-
hours during the islin veriod. The calculated ratia cf :crcin;' Liicycr. hours to k:'et.::tt ho m. will ti;cn be con.
verted to the cuerate pner factor 1x the in'iing period by tamg the appropriate co :cerstars fact:ir.
(a)If the crerage putccr f:ctor durin: the bi: ling period is .650 cr higher, the capacity charce uill be redu:ci in acordance wi:h the fs!!cwing tab!c:
Accrcee Poww Fcetar Capacity Charge ~
During'the Bi:h .g Mud Credit Allotted
.849 and lo:ccr None '
.850 .839 1%
. .500 .949 2%
.950 -1.000 0%
(This potccr factor credit sha!! net in any case be usci to reduce the presenbcd mininum chcrge or the capacity charge when bcsed t.pon 60% ci the highc:t h: ling demand of the preceding 11 months.)
(b)la these cases schere the averare potcer factor during the Lt!!ing period fa!!s bel;:w .500, the veck demand for billing still be increased by the reino that .500 bcars to the ctatomer's cverage poscer factor duranc the bs: ling period.
- Term t.nd Forca of Contract:
Minimum term cf oce year on wtitt.m contract.
(Continued on Sheet No.14.00)
Issued: July 11,1GG8 Effcctive: For all hiUs scheduled to be i.,ued cn and after July II,1956 Issutxl under authonty cf order' cf the Michigm IMI.c Service Commission, dated June 23,1%0 in Case No. U.0443 Issued by: J. II. Cam ltcl!, Presider.t, Jacisen, Michigan 9** *
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- M. F. S. C. No. 7 "* etric Original Sheet No.14.02
- Ccosumirs Power Co ny ,
- ~ ' (To recise hics cnd liegulatiov) t RATE "D" (Conticued from Sheet No.14.01)
. Rules and Regulations:
Scnice govemed by Company's Standard Rules and Regulations.
Where senice is supplied at a ncminal voltage of 14,400 cr less, the customer shall furnish, install and maintain all recessary trr.nsfor:ning, controhg and protective equ'pment.
_ Where the Campany e!-cts to measure the service at a nominal voltage above 14,400, 2 % will be deducted, for bihg purposes, from the demand and encrgy measuremcuts thus made.
Where the Company elects to measure the service at a nominal voltage of less than 2,400,3% will be added, for bibg Purposes, to the deraand and energy meast ements thus made.
Where service is supplied at a nominal voltage cf more than 14,400 volts and the customer provides s!! c>f the nec-essary tramforming, centrolling and protcetive equipment for all the service, there shall be deducted fram the ca-puity charge hcrein provid-J for, the sum cf 10: per kte si the nomir,al wpply co!! age U 4G/40 cc!:s or Icsz cnd 00t per ktc if the f.cminalapply rolt.:;c is chere 46,000 rolls (after the 2% deduction or the 3% sditica refctred to above) for the highest demand created dunng the month or for the bihg demand, whichever is greater.
Where senice is supplied at a nominal voltage c.f more than 14.400 volts and the customer provides all cf the nee-essary transforming, controhg and protective equipment for a part of the service, there shall 'ce dalu~ed from the capadty chari;c heren provided for, the sum of 10: per ksc if the ram:n:l supply toltcge is 46,000 va!:s cr less cnl 20/ per ise if the nominal scpply roltage is chute 4J,0C0 ro!:: (after 6.e 2% deduct:on or the 3% addation referred to above) for that part of the highest demand created duric; the month through such customcr. owned equipmant.
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!ssued under author:ty of crder on and after J'Iy 11,10CG of the ME!.i::an Public $cnice Ccmmini:n, dated June 03, IW3 in Cac No. U-2443 ,
Issued Ly: J. II. CamrLell, President Jack:cn, hitchigan 80 gg *
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